If you’ve ever looked into joining a credit union, you may have come across the term common bond. It’s a fundamental part of how credit unions work, but what does it actually mean?
A simple definition of a common bond
A common bond is the shared connection that links all members of a credit union. Unlike banks, which are open to anyone, credit unions are built around communities with something in common this could be where people live, where they work, or even a shared profession or organisation.
This structure helps create a sense of trust, belonging, and mutual support among members.
Why do credit unions have a common bond?
The common bond helps to keep credit unions community focused. As members share something in common, credit unions can:
- Better understand the needs of their members
- Offer more tailored financial support
- Maintain a not-for-profit, people-first approach
- Strengthen local communities through ethical lending and saving
Wave Community Bank’s common bond
Our common bond is mainly based on location. You can join us if you live or work in Brighton & Hove, East Sussex, Kent, Medway, or the London Borough of Bexley. This creates a strong regional community, connecting people across the South East who want access to fair and affordable financial services. In addition, we have members of Unite the Union in the South East region in our common bond and the staff of some specific employers such as University Hospitals Sussex NHS Trust.
Changes to common bond rules
There’s also an important development happening across the credit union sector. The Government is in the process of extending the common bond rules, by increasing the cap from 3 million to 10 million potential members. While this change is still being implemented, it represents a major opportunity for growth.
Once in place, it will allow credit unions to:
- Reach more people who could benefit from ethical financial services
- Expand their impact within communities
- Build even stronger, more resilient member networks
Why does a Common Bond Matter
The concept of a common bond might sound technical, but at its heart, it’s about community. It ensures that credit unions remain rooted in the people they serve supporting members not just financially, but socially too. As the sector evolves and grows, this shared connection will continue to be what makes credit unions unique.
How we support our common bond
Being part of a credit union means being part of a shared community. Everything we do here at Wave Community Bank is designed to support the people within our common bond. We offer fair financial services and support our community with a programme of finance education so we can help all our members become more financially resilient.
Join our community
Our common bond connects thousands of people who are choosing a better way to manage their money, one that benefits both their financial wellbeing and their local area.
If you live or work in Brighton & Hove, East Sussex, Kent, Medway or the London Borough of Bexley, you’re eligible to join Wave Community Bank and become part of a growing, supportive financial community – join Wave Community Bank.
