Body representing the majority of the member-owned entities here says people are turning to them in greater numbers, writes Margaret Canning
There are 79 credit unions in Northern Ireland affiliated with the Irish League of Credit Unions (ILCU).
Around 40 others in Northern Ireland are affiliated with the Ulster Federation of Credit Unions.
In a statement today on their performance in the year to September 2025, the ILCU said the collective loan book of all 79 had hit £740m – up £42m, or 6% on the previous year.
And it said £740m marked “remarkable” growth of 59% over the past decade.
Credit unions are not-for-profit member-owned institutions which provide people with a place to save in their own communities and borrow money at lower rates of interest.
However, services available at credit unions in Northern Ireland are not keeping up with Great Britain and the Republic, where branches are able to offer mortgages.
In the Republic, where there are 183 active credit unions, the overall loan book in September 2025 was €6.5bn (£5.7bn), up 10% on the September 2024 figure.
And there was a 28% surge in mortgage lending through credit unions in the Republic.
Credit unions enable people to borrow from a member-owned organisation within their own community
News Catch Up – Monday 15 December
But despite offering fewer services than their counterparts over the border, the latest report from the ILCU shows that credit union membership is growing in popularity in Northern Ireland.
It said there were 586,000 credit union members across its 79 affiliated entities, an increase of 15,000 over the year – equivalent to around 1,250 new members each month.
The ILCU has said its affiliated credit unions in NI added an average of 1,250 members each month in the year to September 2025
Martin Fisher, head of Northern Ireland at the ILCU, said: “These are a hugely positive set of results for credit unions and testament to the enduring trust and loyalty which members place in credit unions.
“They also reflect the vital role credit unions continue to play in supporting households and communities across Northern Ireland, offering fair, affordable, and member-focused financial services at a time when many families are facing ongoing financial pressures.”
According to the ILCU, the average loan from credit unions was £5,283, up 7% from £4,923 in the financial year-end 2024.
Over the past five years, the average loan value has grown by 33%, which the ILCU said highlighted “strong and sustained member demand for credit union loans”.
But it added that members were prudent in how they handled arrears, with the amount of arrears falling 6% year on year.
Member confidence also remained robust, the ILCU said, with a 4% increase in savings, which now total £1.68bn across ILCU-affiliated credit unions.
Overall assets rose to £1.98bn by the end of quarter four, September 2025, an annual increase of 4% (£76m).
Capital reserves increased to £282m, up 4.9% for the year to September 2025.
A spokesperson for the ILCU said there was no single reason for the growth in unions’ loan book.
“The growth in the loan book reflects a combination of demand-side and trust-based factors, rather than a single driver.
“People are continuing to turn to credit unions, particularly for small- to medium-sized personal loans, because they offer a transparent and affordable alternative at a time when household budgets remain under pressure.
“Members value fixed repayments, no hidden charges, and the reassurance of dealing with a local, member-owned financial institution.
“Alongside this, lending levels have increased, as members borrow slightly more to manage higher everyday and seasonal costs.”
The ILCU said unions’ provision of complimentary insurance cover to eligible members “remains a critical financial lifeline for families facing bereavement” and was another offering setting it apart from the rest of the financial services sector.
In the October 2024 to September 2025 period, ILCU-affiliated credit unions in Northern Ireland paid out £13.9m in life savings benefits – an insurance payout made to a member’s beneficiary upon their death.
In the past 12 months, the payout had supported 4,200 families during a time of bereavement.
And it said loan protection cover had cleared £3.4m of outstanding loans following death, relieving nearly 1,000 families of the burden of repaying a deceased member’s loan.
The ILCU said 2026 presented “a significant opportunity for the credit union sector” after the Economy Minister launched a public consultation on legislation to modernise and strengthen the credit union sector.
A spokesperson said: “That forthcoming legislative reform process in Northern Ireland, together with the recent Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) review of the mutuals landscape across the UK, creates real momentum for modernising the operating environment for credit unions.”
Mr Fisher added: “We are engaging closely with policymakers and regulators in Belfast and London to ensure that any changes enable credit unions to do even more for their members – whether that is expanding product offerings, embracing digital transformation, or strengthening long-term sustainability.
“With the right reforms, credit unions can play an even greater role in promoting financial wellbeing and driving inclusive economic growth across Northern Ireland.”
Earlier this year, Derry Credit Union, the largest credit union in Northern Ireland, became the first in the region to receive approval from the PRA and the FCA to offer mortgages.
But a spokesperson said enabling credit unions to offer home loans was not a simple process.
“Introducing mortgages is a challenging step, given the regulatory, underwriting, and servicing complexities involved.
“Looking ahead to 2026, we will explore legislative, regulatory, and partnership opportunities that can support credit unions wishing to expand into this area, while keeping member protection and long-term sustainability at the core.”
The credit unions represented by the ILCU represent 95% of the total assets of the Northern Ireland credit union sector.
The Ulster Federation of Credit Unions has been asked for details of its recent performance.