The rise of the credit union

Credit unions are member-owned, non-profit financial cooperatives that provide a wide range of financial services, including everyday banking, and savings accounts, loans, credit cards, and investment products. According to the latest statistics from the Association of British Credit Unions Limited (Abcul), there were 246 credit unions in the UK. This number has been steadily increasing over the past few years, as more and more people are choosing to bank with credit unions instead of traditional banks.

The history of credit unions can be traced back to 1844 and the Rochdale Pioneer Society, a group of weavers in Rochdale, England, who established a cooperative society to provide food and other necessities to their members at fair prices. This concept of cooperation and mutual aid laid the foundation for the development of credit unions.

By 1852, Franz Hermann Schulze-Delitzsch, a German lawyer and economist, established the first working credit union model in Eilenburg, Germany. Schulze-Delitzsch designed the credit unions to provide financial assistance to small businesses and artisans who were unable to obtain loans from traditional banks.

The credit union movement spread rapidly throughout Europe in the late 19th century and early 20th century. By 1900, there were over 20,000 credit unions operating in Europe.

 

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