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<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 two-year pilot of a new prize-linked savings scheme offered through credit
unions. This will support the credit union sector through increased membership, awareness
and deposits, as well as encouraging participants to build up savings to help them
cope with financial shocks.</p><p> </p>The Chancellor also announced a new £2 million
challenge fund to promote innovative solutions from the UK’s Fintech sector to address
challenges faced by social and community lenders, including credit unions. This follows
the success of last year’s Rent Recognition Challenge, where Government backing has
supported UK Fintechs to successfully develop and roll out digital solutions for incorporating
rental data into credit scores.
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