The role of Scottish credit unions in tackling financial exclusion

The British government's desire to tackle financial exclusion is resulting in growing interest in credit unions (community-based financial services cooperatives). This article draws on research undertaken in Scotland to analyse the credit union support network. There are tensions in this: between those who see credit unions as small, area-based poverty-alleviating initiatives and those who feel unions can only survive if they serve larger areas. By making comparisons with other initiatives, an attempt is made to put the current support framework in context. The article concludes by raising a number of issues that should be addressed if more support is to be given to unions: in particular the need to be clear about objectives and to understand the role that credit unions might realistically play in tackling financial exclusion.