This project is a ‘think / do’ paper on revolving credit as an opportunity for credit unions in Ireland and Great Britain. Revolving lines of credit are a core service of credit unions in other countries, notably Australia, Canada and the USA. This paper identifies the operational, regulatory, risk and other factors that are unique to revolving credit and suggests practical steps for dealing with them.
Our primary conclusion: revolving credit has the potential to largely replace the current practice of top-up lending, with far greater convenience to members and at lower administrative expense to the credit union.
The report is now available to download here.