The New Credit Union Development Model (NCUDM) transforms and modernizes CUs with professionally-managed and highly-skilled paid staff along with experienced volunteers leading. Meanwhile, a traditional Credit Union (CU) concept is based on a small, local standard and volunteer-run organization. Using phenomenological inquiry, the study aims to explore a portrait of a transformative and modern NCUDM and its distinction from the traditional CU concept. The phenomenological bases of this inquiry are researches undertaken in other countries which are proven to have been successful; thus, a study of this nature becomes necessary. The data are gathered using in-depth interviews, expert panel, focus group discussions and secondary data from the Cooperative Credit Union League of Bangladesh Limited from 2007 to 2014. This study identified practical actions that support the transformation of traditional CUs in Bangladesh to a new paradigm with the adaption of the NCUDM and its nine important attributes – ideology, organization, human resources, operating environment, marketing, member savings, member loan, financial discipline and financial structure. Based on the findings of this research study, achieving social goals, economic goal must be prioritized. Thus, the NCUDM serves as guide in ensuring a more affordable and accessible future success of the new paradigm in financial and social missions. Therefore, this research proves its significant contribution to knowledge and transformation of CUs in Bangladesh to a new paradigm.
Keywords: Credit Union development model, Traditional Credit Union Concept, Transformation, new credit union paradigm.
