To understand the current user profile of Leeds City Credit Union and examine the reasons for usage

The aim of this thesis is to understand, using detailed modelling, the users and their reasons for use of Leeds City Credit Union (LCCU) with implied application for other UK credit unions. With the initial aims resulting from a Knowledge Transfer Programme (KTP) between LCCU and the University of Leeds, this study has been performed using a case-study (LCCU) with the intention that the findings can be adapted to suit the needs and understanding of other UK credit unions, thus answer the broader research questions around credit union usage. The original contribution to knowledge is therefore the modelling relating to the users and usage of LCCU so that a detailed understanding of the user profile can be tailored and applied to other UK credit unions as niche financial service providers. The main source of data for this thesis was the analysis of a user and non-user questionnaire and this was supported by the use of focus groups. This data was then analysed using a range of techniques: qualitative analysis through the focus groups; descriptive analysis; factor analysis; and regression. From this analysis it was discovered that users are motivated to join LCCU for three key reasons. There are those who: use providers offering the best rates of return; support the ethical stance that the credit union movement offers; and who are financially excluded and unable to access credit elsewhere. Each of these three segments displayed unique profiling characteristics. In addition responses between users and non-users were also compared to identify the significant characteristics of users. These findings were contrary to the expectation that credit unions are just for the poorest sectors of society. This provides not only a unique academic insight in this niche financial services provider but also practically, in the development of a marketing strategy as defined by the KTP programme.