New funding helps credit unions put money back in members' pockets

The Credit Union Income Maximisation Digital Innovation Project has awarded £94,000 to 10 credit unions across 11 projects. The funding enables credit unions to embed income-maximisation tools directly into their digital systems, so that when a member applies for a loan or updates their details, they are automatically shown benefits and entitlements they may not be claiming.

For many of Scotland's lowest-income households, unclaimed benefits represent a significant source of lost income. By surfacing this information at the right moment, the tools can boost household income, ease financial pressure, and reduce the need for repeat or high-cost borrowing.

The funding comes at a critical time for affordable credit in Scotland. Research by Financial Inclusion for Scotland (FIFS), which is managed by SIS, has identified an estimated 175,000 people in Scotland each year who need a small loan under £1,000 but cannot access one from an affordable provider, an annual lending gap of up to £130 million. Equipping credit unions with better digital tools is part of a broader effort to strengthen the affordable lending sector's capacity to reach those most in need.

FIFS played a key role in bringing relevant stakeholders and partners together to develop the funding proposition. The group has also delivered a series of webinars for credit unions, fintech providers and sector stakeholders to share implementation insights and accelerate adoption of the technology.