Credit Unions : Ireland

1
Credit Unions Ireland

• 40 years of development
• Serving 60 of the population (over 2 mln)
• Locally based and directed
• 530 CUs, directed by local board
• Supported by Federation (ILCU)
• Savings led
• no donations or external credit, no member
  capitalisation
• Consumer and SME Lending

2
Typical Irish CU

• Geographical Base
• From 1,000 to 8,000 members
• Directed by 20 to 30 elected volunteers
• Board (10 -15 people) Credit Committee (3) etc.
• All members have savings
• 25 to 50 of members have loans
• Members pledge savings as security for loans
• 20 to 30 of savings are pledged against loans

3
Irish League of Credit Unions

• Services
• .Protection
• .Training
• .Insurance and Bonding
• .Liquidity and Investment Management
• .Marketing and Communication
• .Representation
• Special Status with State Regulator in 1997 Law

4
Reasons for Success

• Strong Community and Voluntary Tradition
• influences of culture, religion, emigration
• Strong savings, Careful lending
• Mix of CUs countrywide
• Urban and workplace were strong enough to
  maintain the ILCU, which gave the smaller rural
  CUs the services they needed.

5
CHALLENGES

• Be more competitive in traditional services
• Expand services
• to give full range of daily financial services
• Technology
• link all 535 CUs into network
• link up to state payment systems.
• Regenerate the volunteer leadership
• average age of volunteer is too high (50)
• after 40 years the old pioneers are tired