There are many reasons to love credit unions. Our ethical financial model process is a big one.
We call it the Money Positive Cycle.
In this blog, we’ll explain how the credit union financial model works—and why it means we’re always on your side.
What does it mean?
Other financial organisations can be greedy for profit. Unlike them, we focus on creating a sustainable, ethical financial model that benefits everyone.
When you save money with us, it goes into a pool that helps fund affordable loans for other members. So, when you save, you’re helping someone else out. And if you ever need a loan, you’ll be supported by the savings from other members. It’s like a community pot: your money is always active, helping others and still working for you. For example, if you deposit money, that could help someone get a loan to fix their car. Later, if you need a loan for home repairs, someone else’s savings might help you out.
Any surplus we make is reinvested back into The Money Co-op to improve our services or returned to members as dividends on savings—a bit like earning interest.
How the Money Positive Cycle works
- Members save with us: Member savings create a pool of funds—building the foundation of our financial model.
- Savings are kept safe: All savings are protected by the Financial Services Compensation Scheme (FSCS).
- We lend to members: We provide affordable and ethical loans to members who need them from the pool of funds.
- Borrowers pay fair interest rates: We’re not here to make a quick buck—we’re here to support our community. Fair interest rates help us keep the positive cycle going.
- Surplus benefits everyone: Any surplus gets reinvested into The Money Co-op to improve services and provides members who have savings with health dividends.
As members save, borrow and repay, the cycle keeps going—creating a secure and community-orientated system that supports everyone involved.
Borrowers also benefit by building savings while they repay, meaning that once the loan is repaid, they have some savings—helping to reduce future borrowing needs.
The benefits of our financial model
The Money Positive Cycle is about empowering our members—not taking advantage of people’s ups and downs. It’s about contributing to something bigger. Every time you save, you’re helping others access affordable loans and supportive services. Every loan repaid helps strengthen the pool of funds available to all members. It’s a system that keeps on giving as it grows.
It’s built to make the most of community finances—no matter where your financial health stands. Whether you’re saving for a goal or borrowing for life’s challenges, you’ll feel supported by a community that values ethics over profit.
Beyond the financial benefits, being part of The Money Co-op means access to resources, guidance and tools to build your financial confidence. We’re creating a fairer approach to money management—one where every member’s financial and mental wellbeing is prioritised.
Your future, your Money Co-op
The Money Positive Cycle is a standout feature of credit unions.
This approach ensures that you have access to ethical, supportive financial solutions while also contributing to the wellbeing of others.
It’s a cycle of empowerment, one that prioritises your financial wellbeing over profit and creates a stronger, more secure community.
Interested in becoming a member? Get in touch.
