BOLTON, U.K.–Hoot Credit Union is celebrating its 10th birthday by announcing a plan to take on banks. The credit union, which pitches itself as Bolton’s ethical bank, also said that people who save with Hoot are given the peace of mind of knowing that their money can be used as loans for struggling families as an alternative to taking out high-interest payday loans.
Now Hoot Credit Union is investing in a new technology platform that will make its service more like that of a modern bank, enabling members to make transactions online and on their phones.
The credit union said it also plans to forge more partnerships with major employers in the region to offer its services in the workplace.
“When people need a loan they think of going to their bank or building society, many don’t think that a credit union is for them,” said Manager Dave Batten. “There’s a perception that we only lend small amounts of money or that we’re only for people with credit problems, but that’s not true and we’re trying to change that mentality. Our loans and savings are open to all and our rates are competitive with the big banks.”
Over the next few years Hoot Credit Union said its objective is to attract borrowers and savers on a greater range of incomes to help sustain the credit union for the future.
It wants to make more loans of between £1,000 and £3,000 to people on middle incomes to help it continue supporting those on slightly lower incomes who see Hoot as a credible alternative to payday lenders.
Hoot has loaned out £5 million to members and taken £11 million in savings deposits in the last 10 years. Previously called Quids In, the union was established in 2005 and rebranded as Hoot in 2009.