Credit union best practice: literature review

The aim of this research was to gain an understanding of what factors lead to the success of credit unions drawing on international evidence of best practice.

Main findings: enablers

• Credit unions in successful countries tended to have strong marketing and a broad array of services which attract diverse membership bases.
• Better service was supported by the implementation of technology and partnerships with other financial organisations.
• High usage credit unions were characterised by their sustainability beyond external funding, which was aided byprofessionalised business models, and supportive legislative frameworks.

Main findings: barriers

• Barriers to growth were centred around the difficulty becoming mainstream financial institutions.
• Barriers included reliance on external support, poor public knowledge and perceptions, and lack of services catered towards higher income earners.