Question 1

What is Discovery Credit Union?

Accepted Answer

Discovery Credit Union is a community-based, not-for-profit financial co-operative serving residents and workers in Dundee, Angus, and North East Fife, Scotland. Founded as a member-owned institution, Discovery Credit Union operates on co-operative principles, where all members share equal voting rights regardless of their savings balance.

The credit union provides accessible savings and affordable loan products to its local community. As of 2009, the institution had grown to serve over 2,200 adult members plus 1,430 junior members, establishing itself as a cornerstone of the Dundee Partnership's Financial Inclusion Action Plan.

Question 2

When was Discovery Credit Union founded?

Accepted Answer

Discovery Credit Union was formed in 2003 to provide a safe, secure alternative to mainstream banking for people in the Dundee area. The institution was established by local community members who volunteered their time to create a financial co-operative that would serve the needs of working families and individuals who might struggle to access traditional banking services.

The credit union's founding purpose was to promote financial wellbeing by encouraging regular savings habits and providing access to affordable credit for all members of the community.

Question 3

Where is Discovery Credit Union headquartered?

Accepted Answer

Discovery Credit Union is headquartered in Dundee, Scotland. The institution maintains its main office in the Wellgate Centre at the Central Library, Level 4, Wellgate Centre, Dundee, DD1 1DB.

From this central location, the credit union serves its membership throughout the city of Dundee and surrounding areas.

Question 4

Where does Discovery Credit Union operate?

Accepted Answer

Discovery Credit Union operates throughout Dundee, Angus, and North East Fife in Scotland. The credit union's common bond covers individuals who live or work (paid or unpaid) within postcodes DD1 through DD11.

Membership is also available to employees or tenants of local councils and housing associations, including Angus Council, Angus Housing Association, Fife Council, Kinross Council, and the Hillcrest Group. Family members living with existing members can also join the credit union.

Question 5

What services does Discovery Credit Union offer?

Accepted Answer

Discovery Credit Union offers a range of savings and lending products designed for community members:

Savings Products:
• Instant access savings accounts with competitive dividend rates
• Junior savings accounts for young members
• Multiple saving methods including standing orders, payroll deductions, and community collection points
• Savings protected up to £85,000 under the Financial Services Compensation Scheme (FSCS)
• Free life insurance on savings (conditions apply)

Loan Products:
• Personal loans with rates starting at 12.7% APR
• Low-interest loans significantly cheaper than doorstep lenders
• No loan set-up fees or early settlement penalties
• Weekly or monthly repayment options
• Free life insurance on loans (conditions apply)

Digital Services:
• Mobile banking app with 24/7 secure member login
• Online account opening for current accounts
• Fund transfers between accounts
• Direct loan applications through the mobile platform

The credit union also partners with the "Save by the Bell" project, which promotes saving and financial awareness in local schools.

Question 6

What makes Discovery Credit Union unique?

Accepted Answer

Discovery Credit Union stands out for its strong community focus and democratic governance structure. Unlike traditional banks, the credit union is owned and controlled entirely by its members, with each member having an equal vote regardless of their savings balance.

The institution operates on a "for people, not profit" philosophy—all trading surpluses are reinvested to develop new services and improve rates for members rather than being distributed to external shareholders. The credit union is directed by a volunteer Board of Directors elected from the membership at the Annual General Meeting.

Discovery Credit Union keeps money within the local economy and won't take unnecessary risks with members' funds. The institution employs approximately 5 staff members who work alongside dedicated volunteers to deliver personal, face-to-face service.

The credit union has received significant support for its role in financial inclusion, including participation in the Department of Work and Pensions' Growth Fund programme, which aimed to broaden access to affordable credit in the region.

Question 7

What type of financial institution is Discovery Credit Union?

Accepted Answer

Discovery Credit Union is a credit union, a specific type of financial co-operative recognized under UK law. Credit unions in the United Kingdom are regulated by both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).

Credit unions differ from banks in their mutual ownership structure—members are both customers and owners of the institution. In the UK, credit unions operate under the Credit Unions Act and must serve members who share a common bond, which in Discovery's case is living or working in specific postcodes within Dundee, Angus, and North East Fife.

As a credit union, Discovery is required to have directors approved as "fit and proper" by the FCA before they can make business decisions, ensuring robust governance and regulatory compliance.

Question 8

How does Discovery Credit Union support financial inclusion?

Accepted Answer

Discovery Credit Union plays a central role in Dundee's financial inclusion strategy by providing affordable credit alternatives to high-cost lenders. The credit union specifically targets individuals who might not qualify for traditional bank loans, offering fair lending rates that are dramatically cheaper than doorstep lenders and payday loan companies.

Through partnerships with local councils and housing associations, Discovery reaches vulnerable populations including tenants of social housing and employees of local authorities. The institution also supports financial education through its "Save by the Bell" project in local schools, helping young people develop healthy money management habits.

The credit union participated in the Department of Work and Pensions' Growth Fund programme, which provided capital to lend up to £200,000 annually to Dundee residents who need affordable credit. This initiative, supported by Dundee City Council with funding packages exceeding £245,000, demonstrates Discovery's commitment to tackling poverty and income inequality in the region.

Discovery Credit Union

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About Discovery Credit Union in the United Kingdom