BE CAREFUL WHAT YOU ASK FOR What Role Now for Credit Unions in Addressing Financial Exclusion in Australia?

This article asks whether credit unions have a role to play in addressing financial exclusion in Australia. It considers the extent to which the current regulatory regime in Australia might hamper the ability of credit unions to contribute to financial inclusion, but then also asks whether credit unions in Australia do, in fact, have the ability to make that contribution, even under a less onerous regulatory regime. The focus on growth and the desire on the part of credit unions to be treated like banks for regulatory purposes may compromise the ability of credit unions to contribute meaningfully to financial inclusion in Australia, with the exception of small, community-based credit unions. Those credit unions do have a role to play, but will need to be granted appropriate regulatory exemptions to enable them to both start up and continue to operate as mutual organisations, focused on providing services to their members rather than generating profits.