Before you set out on the road to setting up a credit union from scratch, it is worth investigating if credit unions in neighbouring areas would be willing to expand their common bond to your locality or place of employment. Many credit unions are expanding their common bonds to cover much larger populations, and your area may already be included in someone elses plans. ABCUL can advise you on initiatives happening where you are, and put you in touch with the right people.
Setting up a credit union is a process that may take between one and three years from the first idea to registration and authorisation as a credit union. There are a lot of stages that need to be completed when setting up a credit union. It is difficult to put the different stages in order, and many of these tasks will run concurrently and be returned to, but this is a simple list of what a study group will need to achieve to become a credit union.
- Decide on a common bond - where your credit union will operate.
- Get a group together with the necessary range of skills and experience to develop a successful community business
- Carry out a pledge drive - find out just what demand there is for a credit union in the area you wish to service- and use the information obtained to inform your business plan projections
- Join ABCUL as a Study Group member - for just £50 a year, you get a full manual and access to all of ABCUL's information services
- Discuss your plans with the regulators - The Financial Services Authority will need to approve your common bond and satisfy itself that your business plan and policies and procedures meet its standards.
- Obtain funding & sponsorship -and include the figures in your business plan
- Choose officers - Officers and employees of the credit union will need to obtain Approved Persons Status from the FSA, and will need training for their roles.
- Think about marketing & promotion and how you will meet your business plan targets - ,
