The Idea Towards Financial Empowerment

Anglo Credit Union

What is a Credit Union• A credit union is a cooperative, member-

owned, non-profit financial institution orga-nized to promote thrift.

• It is controlled through a board of directors elected by the membership. The board estab-lishes and revises policy, sets dividend and loan rates, and directs certain operations.

• The result is members are provided with a safe, convenient place to save and borrow at reasonable rates at an institution which exists to benefit them and not to make a profit.

What is a Credit Union• In some respects it is regarded as a profes-

sional sou sou.

• A sou sou is a cooperative savings system in which each person contributes the same fixed amount over a fixed period (e.g. a month), and the whole amount is taken by a different member each time.

Credit Union vs Bank

• Ownership– Banks are owned by a small group of sharehold-

ers. These shareholders reap the profit of the bank and seek their own interests.

– Credit Unions are owned by its members. Credit Unions focus on the interest and financial success of their members.

• Profit – A bank’s objective is to maximize profit.

– A Credit Union is non-profit. Credit Unions distrib-ute profit to its members annually. This yearly benefit to its members is called dividends.

Credit Union vs Bank

• Decision Making– The bank's shareholders dictate all bank affairs.

– Every Credit Union member is eligible to be elected on the Board of Directors to become an instrument of change and decision making.

• Community– A Credit Union is a community of people with a

common interest. The Credit Union is committed to the community that their members are a part of.

Credit Union vs Bank

• Operations– Banks intend to be your one stop shop for your fi-

nancial needs.

– Credit Unions compete on service and building a relationship with their members.

• Fees– Banks have a variety of service charges.

– Credit Unions have lower interest rates on loans, higher savings rates, low-cost and free services.

Benefits to the Diocese• The diocese will have an additional and viable

stream of income.

• Members will be empowered through ownership

• Access to loans and financing– Education, vehicle, business, house & land

• Creation of new jobs

• Source of funding for ministries, churches and schools

• Diocesan organizations in debt will have some-where to turn to.

What is needed?• Capital

– Like all businesses Capital is needed to seed the Credit Union

• Leadership– A committed board of directors and other Credit Union

committee members.

• Human Resource– Our diocese is filled with experienced workers in finan-

cial organizations.

• A member base– The conversation of a credit union has come up fre-

quently throughout the diocese.

Timing & Opportunity

• In a time of economic uncertainty, this is the ideal time to make smart local investments.

• Lessons were learned from the failure of CLICO (2009) and Hindu Credit Union (2008).

• Legislative reform for financial institutions is imminent.

• Investments are insured (Credit Union De-posit Insurance).

How far can this idea go

• Due to the Anglican Church structure and network, this Credit Union has access to a global community.

• This Credit Union can spread throughout the Province of the West Indies.

• More extensively, the Credit Union can spread throughout the Worldwide Commu-nion of Anglican Churches.

• It has the potential for global membership, economic diversity and currency trade.