The “landmark” Credit Union Expansion Project is being managed by the Association of British Credit Unions Ltd (ABCUL) and aims to attract up to a million more people into credit union membership.

The Government has already agreed to invest £35.6m in the sector.

The project will support credit unions to offer a much wider range of products to more members from a broad range of income groups.

Mark Lyonette, chief executive of ABCUL, said: “Consumers will soon be able to benefit from the latest online technology to sign up to credit union services such as current accounts, budgeting accounts and Cash ISAs. A centralised hub will automate the delivery of products so that members can also access credit union services through secure connections to other networks. It is hoped that this will include the Post Office network.

“Credit unions will retain their local status and community focus, but work together where they can benefit from pooling knowledge and resources. This will give members the best of both worlds.”

The sector will also research what people want from credit unions and work with employers and other community leaders to help more people access the services they need.

Lyonette added: “This is a landmark project for credit unions and a once-in-a-lifetime opportunity which will help to place the credit union movement in Britain on a similar footing to leading credit union movements around the world.”

Credit unions have welcomed the project and the benefits it will bring to their members.

Barry Duggan, manager of Voyager Alliance Credit Union, which serves the passenger transport industry in England, Scotland and Wales, said: “We are really pleased to have been selected as one of the first wave of credit unions to join the project. Our credit union has always tried to stay at the forefront of new developments and new technologies – for example we were one of the first to introduce the Credit Union Current Account – and this scheme will help us to grow further and offer more and better services to our members. It is an exciting time for the credit union movement and we are looking forward to the opportunities and challenges ahead.”