Glasgow Taxi Trade Credit Union
The Glasgow Taxi Trade Credit Union set up in 1980 when 16 Taxi drivers met in a community hall and each deposited £1 to form the Taxi Trade Credit Union. Last year it celebrated its 25th anniversary.
Over that period almost £18,000,000 has been lent to Glasgow Taxi drivers and their families with a bad debt ratio of less than 1%. They occupy their own purpose built premises, employ four members of staff and have 14 volunteer Board of Directors. The Credit Union currently holds more than £1,300,000 of members savings.
This success of Glasgow Taxi Trade Credit Union has not been down to good fortune, it is as a result of the vision, determination and application of the volunteer Directors that set the strategic direction of the business and where applicable, of the staff that implement the strategy. The Glasgow Taxi Trade Credit Union has been fortunate over the years to have had a plethora of inspirational and dynamic thinkers as well as an army of volunteers that have selflessly set-up collection points and collected money all over the city of Glasgow and all to the benefit of the collective good.
The key issue now for the Credit Union is how best to advance the business. The premises from which the Credit Union operates from is under Compulsory Purchase Order and therefore they must find a new home. The move will represent more than just a change of address; it signals the Credit Unions ambition for the future and it is appropriate that the future of the business is decided by those that own it; the members.
As a result, an extensive survey of the 1,200 members was undertaken. This collective information gathering has had huge benefits to the Board of Directors who can now set a strategy that is genuinely in the best interests of the membership. Furthermore it is clear from member feedback that the demands of the modern today Taxi driver now extends beyond simple saving & borrowing accounts.
Over the next year, the Glasgow Taxi Trade Credit Union will be offering a comprehensive range of financial products including multiple saving & loan accounts, including revolving credit accounts and ISA’s. Further to this, a suite of insurance products including Health, Life, Car, Travel and Home plans will also be available. Additional in-house services are also planned including free bulk cash counting and a money advice facility. All of these additions will be supported through improved methods of communication such as the Internet the use of SMS based technologies.
All in all, the future is bright for the Glasgow Taxi Trade Credit Union and contrary to popular belief, you can teach an old dog new tricks.
A Credit Union is a financial cooperative, owned and controlled by its members and is run for the benefit of its members. Essentially Credit Unions provide an ethical and local alternative to mainstream providers of financial services. In order to become a member you must share a ‘common bond’ with the other members either through employment or by living in the same area.
Collectively the members pull their savings together and then use these collective funds to lend to each other. A nominal interest rate is applied to borrowings; traditionally no more than 1% per month (on the reducing balance) and the interest payments received are used to cover the costs of administering the Credit Union. The year end surplus of income is distributed back to the membership in the form of a dividend on their savings.
The administration or management of every Credit Union is the responsibility of a volunteer Board of Directors, although staff are often employed as the business grows and since July 2002, every Credit Union in Britain is regulated by the Financial Services Authority and part of the Financial Services Compensation Scheme and Financial Ombudsman Service.
For further info`, contact:
2 Lawmoor Avenue
(Next to the G.W.T.O.A. base)
Dixons Blazes Estate
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