Credit union borrowers urged to diversify investment options

With most credit union members borrowing to purchase motor vehicles, Prime Minister Dr Andrew Holness is encouraging them to access loans for other forms of investment and personal development.

He made the call during Infiniti Cooperative Credit Union Limited’s official launch at AC Hotel by Marriott Kingston on Tuesday.

Infiniti is a merger of EduCom Cooperative Credit Union Limited and Gateway Cooperative Credit Union Limited.

Holness pointed out that over the last 10 years, the number of cars on Jamaica’s roads has “literally doubled”, noting that credit union members were among the persons acquiring vehicles.

This, he said, was indicative of the healthy state of Jamaica’s economy and growth being experienced by credit unions.

“But I wish that we would use [the loans] for other things, for other forms of consumer investments. Motor vehicles are good. The credit union is not set up to lend money to businesses, but there are many small sole traders. [So] borrow ... to invest in business,” Holness stated.

He further encouraged persons to use the funds they borrow to upskill themselves, particularly in areas that will be challenging for technology to replace.

“I know many people borrow for education. Continue to borrow for education and I would say borrow for upskilling because ... on the horizon is a major change in how work is done,” the prime minister said.

He pointed out that artificial intelligence (AI) will continue to change the world of work.

“So, my encouragement always when I speak to young people, especially young professionals, is to always seek to upskill. Get further away from skills that can be replaced by technology and get into areas where you have to direct technology or create technology or in areas where it is difficult for technology to replicate; not to fear technology, but to embrace it for upskilling. So, borrow for that, for your personal development,” Holness said.

ROLE OF CREDIT UNIONS

Meanwhile, the prime minister described Infiniti as a major credit union stakeholder.

“With a combined asset base of about $31billion ... you would be the second largest asset base in the credit union fraternity, and with over 176,000 members with a network of 13 branches, Infiniti is indeed a major player in Jamaica’s credit union landscape,” he said.

Holness noted that through competitive loans, innovative savings products and digital services such as mobile banking, Infiniti will continue to empower its members at every stage of their lives.

“As we look to the future, the role of credit unions, like Infiniti, has never been more important. The challenges of our time, economic inequality, digital transformation and climate change require bold, innovative and collaborative solutions, and Infiniti Cooperative Credit Union is uniquely positioned to deliver those,” he stated.

Holness said the credit union movement was “built on a simple but powerful idea that, by coming together, we can achieve more than we could ever alone”.

“Infiniti Cooperative Credit Union embodies the spirit of unity, service and possibilities. So, as you embark on this new journey, I urge you to stay true to your mission, to empower your members, serve your communities and create a future where financial inclusion is [not only a] goal, but a reality for all,” he said.

Infiniti Cooperative Credit Union will operate from its head office at 10 Oxford Terrace, St Andrew, with a network of 13 branches strategically located across Jamaica.