Can credit unions truly be the gold standard of ethical finance? Join our enlightening exchange with ethics-man Barry Clavin, as we scrutinize whether these institutions are walking the talk of their cooperative principles. We traverse the complex terrain of credit union ethics, addressing their genuine commitment to these values, and the potential benefits of adopting a unified ethical identity. Are there any lessons to be learnt from landmark policy of the Cooperative Bank. Barry sheds light on the strategic advantages such alignment could offer, setting credit unions apart in a financial industry often marred by scepticism.

Step into the world of credit unions, where Louise Shields, at Claddagh Credit Union, describes the emotional bonds woven with members and community-centric values. She paints a vivid contrast to traditional banking models.

We explore the manifestation of Hey Credit Unions ethical values through the experienced lens of John Smith, and how it reflects a dedication to a wide array of stakeholders.

Mick McAteer's insights on economic and social justice underscore the importance of authentically presenting ethical standards to attract a diverse member base.

Rob Harrison explains how the Ethical Consumer Association sees credit unions and emphasises the need to ensure the business is effective and efficient (to its customers or members) as well as considering an ethical dimension.

Talking Credit Unions with Chris Smith is a regular podcast dedicated to informing credit union practitioners, leaders and opinion formers on variety of industry topics. To contact Chris Smith, smithowls@gmail.com

Listen to a conversation with George Hofheimer, the advisor and author of "Banking on the Human Scale." As we navigate the challenges that credit unions face in the digital era, George illuminates the path ahead, offering strategic insight into blending technological investments with the human service that defines credit unions. The traditional face-to-face service is not lost, but rather enhanced as George makes a compelling case for a harmonious merge of the old and the new. This conversation is an essential precursor to the upcoming Manchester Swoboda Credit Union Conference, in November, that aims to unravel the challenge of credit unions and their digital appetite.

At the Swoboda Credit Union Conference, George Hofheimer shares his wisdom, this time focusing on simplifying operations in the digital era. George expounds on how credit unions can prioritise investments and redefine senior recruitment in the digital age. The digital transformation, laden with complexities, becomes less daunting as George guides us through. George gives us a taste on this digital landscape while retaining that unique human touch.

Talking Credit Unions with Chris Smith is a regular podcast dedicated to informing credit union practitioners, leaders and opinion formers on variety of industry topics. To contact Chris Smith, smithowls@gmail.com

Several responses to this question by credit union leaders:

*Rate tart is a term used in banking to describe someone who transfers balances repeatedly, chasing the best possible interest rates on savings.

David McAuley, CEO, Donore CU, Ireland " Are our members 'rate tarts'* and leave the credit union, if we pay insufficient dividend? Our members in the main are not big savers. So, while there will be one or two members disgruntled with no dividend and they do tend to be in the “older” category and not borrowing. For the last few years due to the prevailing low interest (or zero rate interest situation), there has been no clamour for dividends. Also, the CBI has “encouraged” CUs not to give dividends. This year some CUs have distributed but they have needed to justify that decision".

Karen Farrow, Chief Officer, Just CU, England "Historically, we have always paid a min 2% dividend and used to be very proud of this. We were also worried that if we didn't pay it that members would leave and take their shares with them. However about 3 years ago, we changed this and since then have paid nil/low or capped dividend - we have seen virtually no detriment to the share balance".

John Smith, Governance Officer, HEYCU, England "Are our members 'rate tarts'* and leave the credit union, if we pay insufficient dividend? In our experience here at HEY Credit Union, that doesn't appear to be the case at all. It would seem that very few of our members are saving with us because of the return, and more likely that other factors are the prime motivators, such as trust and safety (just want somewhere they trust to look after their money), ability to access funds without fuss, our customer care standards (they feel we look after them), habit, desire to support a local community enterprise, co-operative values, and perhaps lack of awareness of alternatives".

Christine Moore, CEO, Manchester CU, England "No, I don’t think many of our members are ‘rate tarts’, in fact I think the contrary is true. Some people who joined specifically for the Gold Saver a few years ago did take their money out when it closed (less than half). A focus group of savers we spoke to in 2018 overwhelmingly agreed they were not interested in the rate but glad their money was being used for good and to help other people (very heart-warming to hear!)".

Michael Byrne, CEO, Core Credit Union, Ireland Are our members 'rate tarts' and leave the credit union, if we pay insufficient dividend? The vast majority of members are not. Reality is most members have modest savings which wouldn’t attract much interest no matter where they are held. A small number (but do hold proportionally more of the savings) would be rate sensitive and will be looking for a return. I would estimate that less than 5%of savings would be at risk of moving for better rates.

Talking Credit Unions with Chris Smith is a regular podcast dedicated to informing credit union practitioners, leaders and opinion formers on variety of industry topics. To contact Chris Smith, smithowls@gmail.com