Membership of Northern Ireland’s 80 credit unions has increased by 30% over the past decade and now stands at 571,000, giving the region the highest member penetration rate of any significant credit union movement in the world, new figures show.
And the loan book in the north has soared by 8.3% in the last year alone to stand at £698 billion, according to the Irish League of Credit Unions (ILCU).
Its results for the year to September 30 show a comprehensive and sustained growth across the movement’s entire lending portfolio.
More than 86% of credit unions in the north - where the total loan book has increased by more than 50% over the last 10 years - reported positive loan growth over the past 12 months.
The average loan outstanding in Northern Ireland at the end of September stood at £4,923, which is up from £4,670 a year earlier.
And that strong growth in lending is set in the context of very low arrears (just 3.3%).
Total assets of credit unions now stand at £1.9 billion, up 1.7% from £1.87 billion a year ago. Indeed assets have increased by more than 58% over the last 10 years reflecting the continued growth of credit union activity.
The report says that savings have increased to £1.62 billion million for the year, an increase of 0.8% within the last 12 months.
Martin Fisher, head of Northern Ireland with the ILCU, said: “It has been another really strong year for credit unions across Northern Ireland. These year-end financial results highlight the continued impressive momentum with the 14th straight quarter of growth across our lending products.
“Behind these impressive figures are the stories of a multitude of ordinary people across Northern Ireland who have been supported by their local credit union to make ends meet and to plan for the future.”
Credit unions are seen as playing a critical role across Northern Ireland when it comes to providing access to affordable finance, issuing 50,000 loans annually for amounts under £1,000 (which have been vital in helping people navigate challenges arising from the cost-of-living crisis).
In October a Financial Inclusion Commission (FIC) report highlighted that Northern Ireland lags behind other parts of the UK in terms of access to financial services and general levels of economic hardship.
According to the report, 82% of adults in Northern Ireland are under some level of financial distress - 20% higher than in Wales (62%) and 13% higher than Scotland (69%).
Mr Fisher added: “Given the unique challenges and opportunities faced within Northern Ireland’s financial landscape, it is particularly disappointing that Northern Ireland is not represented in the development of the UK-wide financial inclusion strategy.
“Credit unions and other support organisations across Northern Ireland will continue to do what we can to support those who are financially excluded.
“However, this a missed opportunity to develop an inclusive approach that benefits all regions of the UK.”