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<p>The Department for Work and Pensions’ Credit Union Expansion Project delivered
an Automated Loans and Decision tool (ALD) which has been used by over 70 credit unions.
The ALD has allowed credit unions to achieve up to 40% administrative savings on delivering
loans and reduce provision for unpaid debt by over £1 million. There are also third
party suppliers who offer these services on a commercial basis.</p><p> </p><p>The
government remains committed to supporting credit unions, which provide vital services
to financially under-served communities and contribute to the diversity of the UK’s
financial services sector.</p><p> </p><p>At Autumn Budget 2018 the Chancellor announced
a new £2 million challenge fund to promote innovative technological solutions from
the UK’s Fintech sector to address challenges faced by social and community lenders,
including credit unions. This will help support the continued development and modernisation
of the credit union sector.</p>
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