USING CREDIT UNION AS A VEHICLE FOR MOBILISING FUNDS; CHALLENGES AND PROSPECTS [MEMBERS PERSPECTIVE]: (A CASE STUDY OF KUMASI METHODIST DIOCESAN CO-OPERATIVE CREDIT UNION)

Abstract

This study focuses on using Credit Union as a tool for mobilizing funds; Challenges and prospects from members’ perspective. Random sampling technique was used in considering sixty (60) union members selected for the study purpose. The survey arrived at the conclusion that the Credit Union is massively drawing members to accumulate more wealth through savings. In Ghana, ninety-three percent (93%) of the union members are encouraged to make savings prior to the Union activities. For instance Kumasi Methodist Diocesan Co-operative Credit Union devises various means of helping members to attain financial freedom. Most of the members have been able to mobilize fund through the intensive financial education offered by the Union. The Union has helped and increased the standard of living of its members and also increased the working capital. A member collected a loan and able to build two bed room apartments; this is one of the success stories of the Credit Union. However, management of the Credit Union has impacted people’s lives attesting with a claim that the Credit Union has improved their life cycles and financial challenges from the respondents. Management of the Credit Union is advised to open up to all members on equity terms and enforce financial information in effort of maintaining the members’ loyalty. In furtherance to this, People like Credit Unions for other compelling reasons. This is because the procedure to open an account is simple and flexible and also low interest rate in order to enhance businesses. The researchers recommend that the Management and Board of Directors of the Credit Unions especially Kumasi Methodist Co-operative Credit Union should reconsider customers who have no shares to be given loans to expand their businesses as some customers complain bitterly. It is hereby recommended again that effective and appropriate measures must be employed by all stakeholders to ensure the maintenance of Credit Union in the country in the interest of the people.