For decades, commercial banks, credit unions, and now a growing wave of credit-lending companies have been offering a range of services aimed at helping individuals manage and grow their money. Yet today, many Barbadians find themselves navigating a financial system that seems to work against their best interests, often unknowingly so.
In the recently released 2024–2025 annual report of the Barbados Teachers’ Co-operative Credit Union Limited (BTCCUL), its president and former Minister of Education, Ronald Jones, delivered an ominous warning.
He laments that Barbadians are being lured into high-interest debt traps by credit-lending institutions, while, simultaneously, some are bypassing the very credit unions that could offer them better financial outcomes.
Jones’ concerns cut to the heart of a deeper, more systemic issue, one rooted in financial literacy, institutional trust, and historical biases. He highlights two troubling trends. First, the seductive appeal of credit lenders who use aggressive marketing to mask what could be described as unhealthy lending practices; second, the ongoing preference of many individuals to deposit their savings in commercial banks that offer “alarmingly low” or even non-existent interest rates.
Both of these behaviours reflect a broader mindset among ordinary Barbadians, and unless addressed through education and reform, they risk widening the gap between financial potential and financial reality for too many.
At the centre of this problem is trust—or the lack of it. Credit unions are cooperative financial institutions owned by their members. Their primary purpose is not to generate profits for shareholders, but to return value to the very people who use their services. Whether through better interest rates, dividends, or tailored financial support, credit unions exist to serve members’ needs.
Yet, as Jones correctly points out, many still prefer to place their faith in commercial banks. Why? The answer may partly lie in perception. Commercial banks, none of which are locally owned or controlled, with their longstanding presence, large buildings, and polished branding, project an image of stability and legitimacy. In contrast, some credit unions, unfortunately, despite being indigenous, democratically governed, and often more financially advantageous, are sometimes viewed as less sophisticated or less secure.
This is a perception that must change.
As Jones rightly states: “Trust is the foundation of any cooperative movement.” Credit unions must double down on efforts to build confidence among their members and the broader public. That means increasing transparency, modernising service offerings, and, most critically, investing in financial education.
People cannot be expected to make better financial decisions if they do not understand the full picture.
Too many Barbadians fall victim to lenders who promise fast cash with few strings attached, only to trap borrowers in cycles of debt with sky-high interest rates and hidden fees. These practices prey on financial vulnerability and ignorance. Without robust financial literacy, consumers are left to “borrow from Peter to pay Paul,” as Jones puts it, digging themselves deeper into financial instability.
Credit unions are uniquely positioned to break this cycle. By offering tailored loans and flexible savings plans, all driven by member needs rather than shareholder profits, credit unions can empower people to achieve financial milestones such as home ownership, starting a small business, or sending a child to school.
However, the responsibility does not lie solely with credit unions. The government, educational institutions, and civil society must also play their part. Financial literacy should be a core component of our education system, which is now undergoing reform. It should be introduced at an early age and reinforced throughout life.
Jones’ remarks should be taken as both a caution and a call to action. The financial well-being of Barbadians cannot be left to market forces alone. We need deliberate policies to ensure that people, no matter their income or background, have access to safe and fair financial services.
We must remember that credit unions are not charitable organisations. They are sound, regulated financial institutions that return value to their members. When one member succeeds, the entire credit union community benefits. And when credit unions thrive, so does the wider economy.
Rebuilding trust in credit unions is not just about boosting deposits or increasing membership; it is about restoring a sense of ownership and financial dignity to people.
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