Message to mark International Credit Union Day 2020 – Celebrated on October 15.
by Hally Haynes
The world-wide movement of 86 000 credit unions in 118 countries have made it their commitment in 2020 not to be overwhelmed and diverted by the novel coronavirus pandemic (COVID-19) but to fortify the global fraternity in its enormous strength and agility to adapt to the changing environment this year has presented.
Thus, brothers and sisters, it is not coincidental that on the 72nd anniversary of International Credit Union (ICU) Day celebrated this year on October 15, the World Council of Credit Unions has made “Inspiring Hope For A Global Community” the theme for this year’s celebrations.
The challenges confronting our global membership have dramatically altered our circumstances, but we have demonstrated our ability to respond promptly and with compassion.
Each year, the international fraternity of credit unions, which includes over one billion members, comes together to raise awareness of the significance of what it means to have a credit union as their financial partner.
For though 2020 has been a maddening, disruptive year of upheaval and illness, it has also been a year of growth, hope and purpose for credit unionists.
As your President, I can affirm that the leadership of the Barbados Co-operative & Credit Union League Ltd. (the League) fully appreciates that this year’s global health crisis has been trying for many communities and households.
Despite this, credit unions have stayed true to their co-operative principles and have stepped up in meaningful and tangible ways during this time of economic uncertainty. Hope is a global resource that everyone has a right to feel and experience.
This year’s ICU Day theme reflects how credit unions contribute to a brighter future by providing financial empowerment to members through financial services, education and support.
Here in Barbados, our movement has responded with compassion and focus on the peculiar needs of our membership, many of whom continue to be impacted by unprecedented job losses and disruptions to their daily lives.
Those responses included the provision of up to six months of loan payment ease and elimination of most fees during the toughest months of the year so far.
In addition, credit unions continue to work with individual members to tailor credit and financial counselling solutions to help guide them through this tumultuous period.
Our network of member-owned financial institutions has worked to instill trust and a spirit of cooperation.
This has also been reflected in the movement’s efforts to deploy a national level electronic payment platform.
We know these are difficult times, but your League is also preparing and positioning the movement for the expected growth and further expansion, even before the pandemic has passed.
The electronic payment platform, which will be the focus of our attention, will be a significant tool for promoting greater efficiencies in executing transactions and facilitating the settlement of balances between institutions.
At the same time, it will facilitate better customer service through shorter wait times for cheque clearing.
Importantly, it will give credit unions access to the automated clearing house (ACH) and the real-time gross settlement system (RTGS) currently used by commercial banks and some non-bank financial institutions.
And while access to the ACH is a most desirable step, we in the League are extremely confident that the credit union movement is large and robust enough to develop its own interconnectivity.
We are committed to ensuring that the 25, 000 credit union members who did not have access to electronic services during the COVID-19 lockdown can join the other 192, 615 members in the Big Three credit unions.
We know that confidence in the Credit Union movement remains high.
A close look at the 2019 Financial Stability Report authored by the Central Bank of Barbados (CBB), the Financial Services Commission (FSC) and the Barbados Deposit Insurance Corporation (BDIC), shows that more Barbadians are turning to credit unions to meet their financial services needs.
Our $2.65 billion sector’s total assets grew by 7.5 per cent in 2019.
Our regulator commented: “This increase reflects the continued steady growth of member savings, which rose by 8.2 per cent. Gross loans continued to be the largest asset on the balance sheet, accounting for an estimated 70 per cent of the assets.”
Despite all the challenges that were presented in 2020, our credit unions remained resilient, investing in training for its leadership and members, promoting and investing in new technology and most importantly, strengthening our collaboration to achieve desired efficiencies and goals.
The movement is also undertaking its own digital transformation as more member institutions introduce greater efficiencies in their operations and are making greater use of social media platforms to communicate and interact with members.
In addition, there is increased focus on financial literacy as members seek to exercise greater control and efficiency in their financial affairs.
We are proud to join our brothers and sisters around the world in celebrating International Credit Union Day on the third Thursday of October, as has been done since 1948.
We at the League also hail the spirit of the global credit union movement.
We recognise the day as one to reflect upon the credit union movement’s history, promote its achievements, celebrate the hard work of members and share member experiences that have brought us this far and will take us even further.
Hally Haynes
President of the Barbados Co-operative & Credit Union League Ltd.
