THE NEW CREDIT UNION YOUTH AMBASSADORS - MCC: Credit unions' qualification requirements Winners of All Ireland Credit Union Art Competition - The ...
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The magazine of the Irish League of Credit Unions – Spring 2017
THE NEW CREDIT UNION
YOUTH AMBASSADORS
Tech Trends Winners of All MCC: Credit
Driving the Ireland Credit Union unions'
Future of Art Competition qualification
Money Announced requirements
To claim your one hour CPD for CU Focus, you now need to complete the CU Focus Quiz on
www.culearn.ie. The Quiz is located in the CU CPD members' area.
Editorial
‘It’s got to get worse before it gets better’ is an expression that has
become trite because of overuse. This particular cliché should be
22 16
consigned to history. Our aim, and the aim generally, must always
06 30 be ‘the best we can be’ – no complacency. No easing of
standards. No accepting or provision of a weaker service to our
members.
Credit union membership continues to grow and members
remain loyal and trusting. They deserve the best we can offer, be
it continuation of current service or provision of additional service.
We are now in early spring and with the dark and dreary days
of winter behind us, it will give us much reason for optimism, a
positive feeling to mind and body. Spring is also the time when the
04 New Credit Union Youth Ambassadors Unveiled
Annual General Meeting of the Irish League of Credit Unions
06 Focus on TPM Credit Union
(ILCU) is held, an opportunity for delegates to discuss the issues
08 CCR Registration that affect credit unions and agree a format to address the many
09 Dragons Lend problems they face.
10 Personal Micro-Credit Scheme Update Getting the credit union message out to all members and non-
12 Athlone Credit Union’s 50th Anniversary members is best achieved through advertising – radio, television,
14 Why Brands Need Advertising & Marketing print media and all other areas where people congregate. The
16 The Future of Money National Advertising Campaign (NAC) has been doing excellent
18 50th Anniversary events at Clonakilty Credit Union work in this area for a number of years. The NAC has been
19 ECCU Update funded by credit unions for credit unions, but sadly some have
piggybacked on the generosity of others. This is not in the true
20 CUSOP Update
spirit of cooperation.
22 All Ireland Art Competition Winners
The ‘bread and butter’ – the main income is generated from
24 ILCU Responds to CP106 loan income – this was reduced during the downturn in the
25 How Dynamic is Your Board economy – it has improved somewhat recently and there is much
27 50th Anniversary of Ballinasole Credit Union room for more. There are other options; funding the provision of
28 CUCC Data Protection Event social housing and also the provision of mortgages.
30 ILCU Foundation; The Gambia Special Report Social Housing: Back in early 2015, a lobbying campaign was
33 Institute of Credit Co-Operative Administration put in place in the Republic of Ireland by the ILCU Board.
34 HR Update Lobbying, as we know, is ongoing and must be sustained, but it
36 Your Stories must be done in a unified way or else it will be futile.
The lucky winner of Mortgage Lending and Home Loans: Work on this is being
40 Legislative Update
our winter competition, developed currently and we believe this could be a substantial
42 The Domestic Economy a two night stay at benefit when agreed.
Newpark Hotel in ILCU Elections – the elections to the ILCU Board and Standing
Kilkenny, was Marie Orders Committee have now been decided and the successful
Cover image: Hynes from Athenry, candidates will serve their term. We wish them well and hope the
Olympic heroes
Co Galway. decisions they make will help the furtherance of the credit union
Gary and Paul
O'Donovan were movement. We also appreciate the efforts of the candidates who
announced as the
new Credit Union CONTRIBUTIONS were not elected.
Youth Letters to the Editor / The Youth and Marketing Conference took place in the Hodson
Ambassadors at contributions may be
the Youth and
Bay Hotel, Athlone on the 25th and 26th of February. This must-
submitted via email to attend event was highly informative about the requirements and
Marketing
Conference editor@creditunion.ie.
issues of the next generation.
Editorial Committee: Nick Cashin, William Breen & Gerry Thompson. Volume 3 Issue 12 ©.
ILCU ISSN 1649-377X. League Board: Brian McCrory, President; Charles Murphy, Vice President; John Mullen, Treasurer; Ciaran Bishop, Nick Cashin, Pat Fay, Margaret Heffernan, Seamus Kilgannon,
Blanche Ronayne, Eamonn Sharkey, Martin Sisk, Gerry Thompson, Jim Toner Supervisory Committee: Martin Dolan, Michael Doyle, Terry Redmond Life Director: John Hume
Design & Print: Outburst Design. Please Note: The deadline for the next issue of CU Focus is 8th May 2017. Please mark for the attention of the editor, CU Focus Communications Department. The views
expressed in this issue of the CU Focus are not necessarily the views of the Irish League of Credit Unions. Advertising: The placement of an advert does not imply endorsement of the product or service
advertised, either by the magazine or its publisher. The CU Focus will not knowingly carry false or misleading advertising. Articles The CU Focus would like to hear your news and views. Send in any
newsworthy stories or photos. The CU Focus tries to publish all appropriate information submitted, but may be precluded by space constraints.
Published By Irish League of Credit Unions 33 – 41 Lower Mount Street Dublin 2 Tel: 353 (0)1 614 6700 Fax: 353 (0)1 614 6701 Email: info@creditunion.ie Website: www.creditunion.ie
CU FOCUS SPRING 17 :: 03
Olympic Champions
Gary and Paul O’Donovan
unveiled as new
Credit Union Youth Ambassadors
Olympic silver medallists Gary and Paul O’Donovan have been unveiled as
the new Credit Union Youth Ambassadors for the Irish League of Credit
Unions (ILCU). The rowing champions were officially announced as
Ambassadors at the ILCU’s Youth and Marketing Conference in Athlone on
Saturday 25th February. Delegates from credit unions across the island of
Ireland were in attendance to see the sporting heroes officially revealed as
ambassadors by ILCU President Brian McCrory
Gary and Paul O'Donovan with ILCU CEO Ed Farrell and ILCU President Brian McCrory The Olympic heroes with ILCU President Brian McCrory and the ILCU's National Youth
Committee
Newstalk 106 FM presenter Chris Donoghue ethos of working together towards a from our own community and from
was on hand to interview the sports stars common goal which is so important to the communities around the country really
live on stage, while a video filmed for credit credit union movement. Their makes a difference to us when we’re
unions by the two brothers was also accomplishments in rowing at global level competing, and so we’re delighted to have
premiered at the event. and their achievements at the 2016 Rio this opportunity to work with a movement
The overall theme of the youth Olympics make them ideal role models for that gives so much back to the people in
conference was Digital Marketing and young people in our communities, and the local communities they serve.”
Social Media. There was a specific focus indeed ideal ambassadors for the many The ILCU offers a wide range of
on how credit unions can develop their youth programmes run by our credit marketing support to credit unions to set
use of platforms such as Facebook and unions. We very much look forward to up and run both established national
YouTube to communicate with Millennials working with them as we work to inspire youth initiatives as well as local youth
and Generation Z. Guest speakers the next generation.” schemes. National initiatives include the
included Zeminar co-founders Ian Also commenting on their new role, Clued-In Scheme (a personal finance
Fitzpatrick and Damien Clarke, Facebook Gary O’Donovan said “Our own credit resource for second level schools) and the
Advertising’s Lizzy Lillington-Lester and union in Skibbereen has always supported popular All Ireland Schools Quiz and All
Trendster co-founder Jack Cullen. A panel us every step of the way and so we didn’t Ireland Art Competition. Local schemes
discussion on ‘Reaching the Next hesitate when asked to be the new Credit run by credit unions include School
Generation’ was another highlight of the Union Youth Ambassadors. We’re very Savings Schemes as well as Bursaries and
two-day event. proud to be representing the movement, Student Loans. The ILCU also runs the
Speaking at the announcement of the especially for the younger generations.” Young People’s Network and the Young
Youth Ambassadors, ILCU President Brian Paul added “The support for us from all People Programme for the support and
McCrory said “Gary and Paul O’Donovan corners of Ireland has been overwhelming. development of younger credit union staff
embody the spirit of co-operation and the Knowing we have such incredible backing members and volunteers.
04 :: CU FOCUS SPRING 17
CU Focus meets the
O’Donovan Brothers
In between their official unveiling at the Youth and Marketing Conference, interviews with the press and
meeting and chatting with credit union delegates, CU Focus caught up with
Gary and Paul O’Donovan to ask them a few questions.
CU Focus: How old were you when you first get a training session in before I’m due into CU Focus: How would you like to see the sport of
started rowing and why was rowing your sport of work. I’ll get more training done then in the rowing evolve in Ireland for younger
choice? evening too. generations?
Paul: When we were about 7 or 8 we started Gary: I’m based in Cork at the moment and I’ve Paul: Our greatest achievement would probably
getting into the water. We had played a bit of just started a Law degree. My routine is similar be in getting people talking about rowing and
everything but as our dad had been a keen enough to Paul’s. Training morning and evening getting involved. We love our sport. If more
rower for much of his life, conversation always and college in between. We’re both really busy, people were to be exposed to it, more would be
tended to sway that way. It was only a matter of but we wouldn’t have it any other way. inclined to try it out. It was heartening to hear
time before we got into a boat. CU Focus: Are you training for competitive that the number of people joining clubs jumped
CU Focus: Was there ever a time over the years events at the moment? after the Olympics, hopefully there’s a medal or
when you felt you might quit rowing and why? Gary: We are moving into the competitive season two to come out of it.
Gary: There were many times when things now and every race is a building block for longer CU Focus: How good were you both at regularly
weren’t going so well that we’d stop and ask term targets like Tokyo 2020. We didn’t just turn saving in the credit union when you were
ourselves why we were doing it at all. But I up in Rio, a lot of hard work went into getting younger?
suppose if everyone stopped at the first few there. Every race we are in, whether it’s on a Gary: We spent years saving towards buying our
hurdles, nobody would get anything done! cold Saturday morning at the National Rowing own boats – we were both pretty good at saving!
CU Focus: Could you describe in three words Centre or at the World Championships in Paul: I remember collecting coins in plastic
how you felt when you crossed the finish line at Florida, we always aim to go as fast as we can bottles and when I couldn’t fit any more in I put
Rio? and win it. them into the credit union in Skibbereen! In
Gary: Knackered, hungry, proud! CU Focus: Are you interested in any other sports 2013 we finally had the money to do what we
CU Focus: Aside from the race itself, what is your outside of rowing, either participating or had been saving towards - buying our own boat.
fondest memory of Rio? spectating? CU Focus: We know that your mother saved with
Paul: It was definitely seeing our family, friends Paul: We’d watch the rugby and follow cycling. the Skibbereen Credit Union to fund her trip to
and all the Irish in Rio celebrating our success. Aside from that then we keep an eye on how the Rio to support you, what tips did your mother
We had been working so hard towards this goal rest of the Irish athletes are getting on. have for you both about saving towards a goal?
that it was always going to mean something to CU Focus: Are you planning on taking time off Gary: She really wanted to get to Rio so she was
us, but to see that it meant so much to everyone this year and what do you typically like to do putting a bit of money away for a good long
else was really special. when taking time off from training? while. I suppose saving in that way is much like
CU Focus: Would you say your Olympic medals Paul: With our studies and rowing we don’t have our training, it's all about the building blocks
are your proudest possession or would it be much time off. We take a day every now and and working towards an end goal.
another medal/trophy you won over the years for then to rest and recover, but we’re never far Paul: She has always told us that if we set out to
rowing? away from a boat. In fact, I don’t remember two do something, do it right. Every penny she saved
Gary: The medal is just a round thing. We have days in a row that didn’t involve us getting into went towards that trip.
been rowing for 15/16 years now and have the water. CU Focus: Finally, what message would you
picked up a few prizes along the way - but we Gary: We do a fair bit of travelling for events and have for young people in Ireland who want
just put them in a drawer. We can walk around training camps so when we are away we try to to become world-class athletes?
with the memories. see as much of that place as possible in the Gary: It’s important not to be afraid of
CU Focus: What is a typical day like for you time that we have, but otherwise our hard work. If you put your head
now? schedule dictates what we can or down anything is possible. You
Paul: At the moment I’m attending can’t do. have fun along the way of
UCD and I’m on work course, but the hard
placement, so I try to get up work reaps rewards.
as early as I can and
CU FOCUS SPRING 17 :: 05
Focus on …
TPM Credit Union
IN THE BEGINNING Minute Book records a victory
“On the 16th January 1967 an informal celebration and stated that “no matter
meeting took place in St Patrick’s Social what we achieve in future years the
Club in Poyntzpass to consider the elation and satisfaction of winning this
possibility of forming a credit union trophy in our first year will scarcely be
branch in the area.” surpassed.”
These are the opening words of the
“Minute Book” of what was to become THE GIFT OF TIME AND TALENT
Tandragee, Poyntzpass and Markethill The fact that TPM Credit Union has for
Credit Union or TPM Credit Union. over 50 years sustained and indeed
There were nine in attendance at this developed a most valuable contribution
seminal meeting: Patrick McSherry, to the community has been due in
Michael Waddell, Leslie Kellett, Terry essence to the generosity, determination
Murphy, Seamus Murphy, Gerry Davis, and initiative of a “small army of
Frank Watters, Jim McAfee and Rev volunteers.” The men and women of the Celebrating 40 years of TPM Credit Union in 2007
Sean Quinn. TPM community gave of their time and
After similar meetings in Tandragee talent to allow the credit union
and Markethill, TPM elected its members to “save with security and
founding office-bearers on 6th February borrow with dignity.” Today’s members
1967. Over the following month the should be extremely grateful to all who
nascent credit union drew on the have ensured that a vibrant and
experience of pioneers in the field; dynamic credit union has, for over half a
Edward Mackle (Newry), Jack O’Hare century, provided a valuable source of
(Armagh) and John Hume (Derry) to financial assistance at a fair rate, within
finalise preparations for the opening for a caring and supportive environment.
business in all three centres in early John McGrane, TPM Credit Union’s
April. There were 95 members and current Chairman notes that “It is
share capital of £1,867. Now 50 years clearly impossible to acknowledge in
later, TPM Credit Union has a detail the many beneficial contributions Winners of the Art Competition with Guest of Honour Rory Best
membership of over 2,600 and share of TPM workers over the years. We have
capital in excess of £5.5 million. been fortunate to have had
Presidents/Chairpersons of vision and
SOLID FOUNDATIONS leadership; Treasurers with sound
It is well accepted that if a structure is financial judgement and accounting
to last it must be built on solid skills; Secretaries of diligence and
foundations. The founders of TPM thoroughness; Committees which were
Credit Union understood this and vigilant, ethical and fair in their
ensured that the credit union ethos decision making; Paid staff who were
informed their every decision. TPM hard-working and reliable; Supervisors
Credit Union's first President, Jim of persistence and rigour. However few
McAfee, speaking at the AGM on 12th would disagree with the view that
February 1968 said; anything which TPM has managed to
“Credit union enables surplus to aid achieve has been due in no small The Poyntzpass Pumas Basketball Team
others. It shows the Christian reason for measure to the wisdom, leadership and
saving. It is not charity but credit - dynamism of two of our founding
credit that a man buys. Charity can hurt members. Jim McAfee and Syl
dignity - credit does not.” Campbell were men of outstanding
Clear evidence of a solid start in life ability, drive and generosity of spirit and
as a key financial entity in the were ‘credit union men’ to their core.”
community was confirmed when TPM On the sad occasion of Syl’s passing
Credit Union was awarded the 1968 All in 1986, the AGM minutes recorded the
Ireland Credit Union Cup at the Annual following: “Since the last AGM we have
Credit Union Convention in Cork. The suffered the loss of the credit union
CORK 1968. TPM Credit Union's Treasurer Syl Campbell
receives the All Ireland Credit Union Cup from Jack Lynch
under the watchful gaze of a youthful John Hume.
06 :: CU FOCUS SPRING 17
Front Row: Dawn McConnell (Manager), Anne Lappin, John McGrane (Chairman), Helena Gamble, Simon Clarke,
Gabrielle McParland; Second Row: Patrick Gallagher, Margaret Campbell, Irene Caulfield, Brian O’Hare
Third Row: John Campbell, Jackie Jenkinson, Lorraine McAllister, Eddie McAfee; Fourth Row: Frank Watters, Vincent
Braniff, Billy McClelland, Harry Gaffney. Absent: Joe Flannigan, Sheila McKeown, Ann O'Hare and Agnes McCoy.
man ‘par excellence’ ---- Although there principle. In the case of credit unions, TPM Credit Union has well equipped
might be some debate as to who started where staff are serving not customers but offices in each of its three centres. The
the credit union here, there is absolutely members who through their shareholding technology used is regularly reviewed to
no doubt who kept it going through the own the credit union, the quality of ensure that the credit union keeps up to
bad times. For many of our members Syl interaction has an added dimension. date with relevant developments and is
Campbell was the credit union. Syl set TPM Credit Union’s front-line staff appropriately positioned to move
the standards - his meticulous attention have, over the years done a first class forward.
to detail, his capacity for selfless hard job. Those currently in post, Gabrielle As ever, a credit union needs to be
work, and shrewd judgement - give all of McElroy, Ann O’Hare, and Agnes McCoy renewed and refreshed by recruitment of
us who attempt to follow in his footsteps provide service of high quality led by young volunteers. TPM Credit Union will
both a guide and a challenge. TPM is the Manager Dawn McConnell. Dawn has work to ensure that the ‘credit union
monument to Syl Campbell and all future been with TPM Credit Union since March torch’ is handed on to the next
doings of TPM will be keeping his 1980 and is vital to its success. Her generation, who will no doubt rise to the
memory green.” sound knowledge of every aspect of challenge. The outstanding qualities of
Jim McAfee, who delivered these credit union, her wise and considered the community’s young people has been
words, died in 2010. He was a man of decision-making, her total commitment witnessed through TPM Credit Union’s
wisdom, wit and total commitment to the to her tasks, her sense of humour and schools savings scheme, inter-schools
credit union. The ‘TPM Credit Union warm personality make her a most quiz, art competition and the
News’ of November 2011 paid tribute valuable and valued leader of TPM Credit sponsorship of sporting activities such as
thus: “It would not be an exaggeration to Union’s progress on a daily basis. the ‘Poyntzpass Pumas’ basketball.’
say that for forty years Jim McAfee was TPM Credit Union has a message for
the very heart of credit union. It is THE FUTURE the young people of its community on
certainly true that much of what TPM is Many observers are at present of the the occasion of its 50th Anniversary, and
today is directly attributable to his view that the world is entering a period this is well encapsulated in the words of
unwavering dedication ....those of us who of even greater uncertainty than usual. US President Barack Obama in his
have known him in his prime appreciate However it would seem clear that many farewell address. He urged young
his immense and lasting contribution to of the circumstances which led to the Democrats to get involved by suggesting
TPM Credit Union and indeed the many development and growth of ‘community they should “Show up; Dive in; Stay at
members “who knew him not” will for self-help’ in the Germany of Friedrich it!”
years to come, continue, to benefit from Raiffeisan in the 1860’s, and which the TPM Credit Union is confident that
his vision and commitment.” founders of the credit union movement young people within its common bond
on this island successfully introduced will understand this message in relation
STAFF EXCELLENCE here in the 1950’s, will continue to have to credit union and knows that it can
In business in general the importance of an important part to play in the continue to go from success to success
customer service is a well-accepted community. over the next 50 years.
CU FOCUS SPRING 17 :: 07
CREDIT UNIONS LEGALLY
OBLIGED TO REGISTER ON
CENTRAL CREDIT REGISTER
All credit unions in the Republic of Ireland are legally
obliged to both register on and supply information to the
new Central Credit Register (CCR). The CCR is a mandatory
database of credit intelligence and any credit union who has
not yet registered should immediately log on to
www.centralcreditregister.ie to sign up and commence the
on-boarding process. A number of credit unions have
already registered and are in the midst of preparing to
submit data to the CCR. Data submissions will begin in
June 2017.
Under the Credit Reporting Act 2013, credit unions are
legally required to supply information on all credit The Central Bank has also issued individual codes and
agreements of €500 or more to the CCR. They will also be registration numbers to credit unions to allow them to access
obligated to access it when considering loan applications for guidance manuals and documents which it has published on
€2,000 or more. Credit unions should ensure they are its website. If any credit union has not received this material,
registered as a matter of priority. or has misplaced it, they can request a new code and
registration number at www.centralcreditregister.ie/info-
Data Collection to Commence in June request/.
Data collection for credit unions will begin on 30th June 2017 Registering on the CCR now will ensure that the on-boarding
and will continue until December 2017. Credit unions are process can be completed in time for credit unions to begin
legally obliged to have submitted the required information by preparations for the commencement of the data collection
the deadline of 31st December 2017. phase.
08 :: CU FOCUS SPRING 17
Chapter 2 recently held a unique Chapter their pitch for a loan to the ‘Dragons’ – Keith Savage (Antrim Credit Union):
meeting that was completely different which were played by personnel from Bringing his experience from another
from all others. The meeting took place across Chapter 2 credit unions. It financial institution to bear on his credit
in the Old Courthouse in Antrim and was should be noted that the roles they union work, Keith represented a credit
designed to educate its members on the played are in no way an indication of union prepared to look at larger loans
current issues facing credit unions in the roles they play in their own credit based on the ability to repay and at a
Northern Ireland. The meeting, which unions or of their personal views, but an lower rate of interest to be more
was held in the style of the popular attempt by the writers of Dragons Lend competitive, and that is prepared to
television programme, Dragons’ Den, was to bring out attitudes and beliefs that lend for business purposes.
titled Dragons Lend. Most of the 17 might be found in credit unions. Tracey Quinn (Ardboe Credit Union):
credit unions in the Chapter were The ‘Dragons’ on the night were Tracey portrayed a credit union that
involved in the preparation and played by; looks after certain members, but
presentation of Dragons Lend, an Ann Quinn (Carnglen Credit Union): possibly doesn’t give equality of
example of co-operation among co- Ann portrayed a well-run credit union treatment to all members.
operatives. with all its policies in place prepared to The loan applicants facing the
The distinctive event was hosted by make larger loans, with a novel take on Dragons on the evening were:
Nick Garbutt, a respected PR security and preparedness to lower Pat McCallion (Ballymena Credit
practitioner and media commentator, as interest rates on these loans. Union), Paul McCaughan (Larne Credit
well as a fan of credit unions and a Liam O’Kane (Bannvale Credit Union), Adrian Clarke (Causeway Credit
good friend to Chapter 2. Aidan Union): Emphasising the “know your Union) and Gearóid O’Neill
McCormack and Billy Breen of Larne member” ideal; the need for good (Ballinascreen Credit Union). Each
Credit Union were the writers and communication and the ethos that made strong applications and stated
directors, while the whole evening was credit unions are for service. Liam their case well for amounts from
brought to life by the work of Niall Kerr portrayed a credit union that would be £15,000 to £100,000.
from Ballinascreen Credit Union. His prepared to look at a larger loan, but is Chapter 2 believes that when
work in sound, lighting and graphics restricted by the rule that a member education takes place in an atmosphere
made the evening’s performance very should be saving for thirteen weeks. of enjoyment, it becomes more effective
enjoyable and an excellent Jack Gorman (Derry Credit Union): and has lasting benefits for all credit
approximation to the television show. It Jack represented the ‘old school’ unions and their members. It is hoped
also meant that the DVD produced on approach; loans should be based on that the DVD that was made could be
the night was of an excellent standard savings and a member should be saving used as a starting point for discussion
and well received by the credit unions for thirteen weeks. It has worked well in on procedures that credit unions will
in the Chapter. the past and has served the members adopt to meet the new situation facing
During the night, a number of loan well over the years. Why change them with the changes in the rules due
applicants from credit unions made something that works well? to come in after AGMs.
CU FOCUS SPRING 17 :: 09
100 Credit Unions now offering
Personal Micro Credit Scheme
Credit Unions Across the Country Share their
Insights on the ‘It Makes Sense’ Loan
100 credit unions across Ireland are now offering can borrow between €100 and €2,000 and the
the Personal Micro-Credit scheme as increasing maximum loan period is two years. The initiative
numbers turn away from moneylenders and is about providing an alternative to
demand for the loan rises. The initiative, known moneylenders and promoting financial inclusion.
as the ‘It Makes Sense’ loan, was launched in More information can be found at
2016 by the Irish League of Credit Unions (ILCU) http://itmakessenseloan.ie/
in partnership with the Citizens Information Below are some insights from credit unions
Board, MABS and the Social Finance Foundation, across the country who are offering the It Makes
and is supported by the Government and Sense Loan to social welfare recipients in their
Department of Social Protection. Loan applicants local communities.
AUGHRIM STREET PARISH & DISTRICT
CREDIT UNION:
Q. Why did you decide to join the initiative?
A. We are based in a community which is
badly affected by moneylenders. With the
Personal Micro-Credit Scheme (PMC) we
could help members who have no
alternative but to resort to such companies
that charge extraordinarily high interest
rates to the financially excluded.
Q. How easy did you find the signing up
process?
A. Pretty straightforward. After our Board
approved entry to the initiative and the
dedicated loan policy, we started the
process to sign up with An Post. We
began offering loans around ‘back to
school’ and were also very busy with these
loans at Christmas. We see this as an
occasional loan for key events, such as
Christmas and Communion time.
Q. How satisfied are you with the loan
performance of your PMC loan book?
A. To date we have given out 128 PMC
loans, most of these loans are repaid via
the Household Budget. We would have
2% that we are concerned about. Aughrim Street Parish & District Credit Union Staff
L to R: Kelly Clancy, Lorraine Gahan, Suzanne Harney
Q. Have you had any problems with
borrowers cancelling deductions?
A. No. There was a case where a member Q. Going live can create a lot of demand for provided by the project team are very
found work and was no longer in receipt of the loan product, how did your credit union worthwhile. If we are unsure of eligibility
social welfare and we came to an cope? under a scheme, we request assistance
alternative payment method. A. The training and documentation from the helpdesk. We are not afraid to
10 :: CU FOCUS SPRING 17refuse loan applications - and at Christmas enhancement of facilitating a small savings
we set up an appointment book to manage element is beginning to filter through. The
demand. We would highly recommend need to turnaround the loan in 24 working
scheduling appointments. hours did not transpire for us – once we
are engaged with the borrower the timing
Q. What is the main benefit so far from on the loan was not an issue.
joining the initiative?
A. This is a social initiative and not a big Q. Are there any downsides to the initiative?
profit maker. However, we have WEXFORD CREDIT UNION: A. We frequently get calls from outside our
increased our membership by 2.5% from Q. You are a participating credit union since common bond and from time to time, it
PMC. We feel by serving these members, the pilot first launched. Why? can attract interest from a certain cohort
they will graduate to mainstream lending - A. This product works to grow our loan that believe they are ‘entitled’ to the loan.
the current PMC policy supports this book in a low risk manner. It sits Once staff became familiar with the
transition. comfortably with the ethos of our Board to process and who the policy is trying to
promote financial inclusion. help, it became easier to lend to the target
Q. Are there any disadvantages to the market that the policy supports – those
initiative? Q. Are you satisfied with the performance of who are financially excluded and who rely
A. Apart from managing the demand at the PMC loans written? on moneylenders as a source of credit.
peak times and getting familiar with using A. Yes. We have written almost 140 loans
the An Post Household Budget scheme valued at €175,000. The level of default is Q: What advice would you give a credit
(HB), not really. In very few cases, new well below our normal loan book. union coming on board?
members have expressed an entitlement A. This is a loan and criteria must be met -
to borrow - we always take the time to Q. How does PMC fit within your existing principally having the capacity to repay.
explain to the member when signing up lending practices? The credit union has the right to say no.
that the loan decision will be based on A. This loan fits within our normal practices Work with the project team to avail of
affordability and not just the fact that they – we see PMC as simply offering another training and best practice in particular in
are in receipt of social welfare. repayment method, but one that enables the early days of offering the loan. Talk to
us to lend to those that are financially peer credit unions about their experiences.
Q. What is the best borrower comment you vulnerable and excluded. It demonstrates Use this as another offering within your
have heard? our commitment to our community. product suite.
A. Most borrowers are extremely happy
with the service, especially at Christmas. Q. Were there any teething problems as part
Overall feedback is delight that the of launching PMC in your credit union?
member no longer has to use a high A. Initial teething problems in the pilot
interest moneylender and can re-establish ironed out quickly and we have blended
The essence of the ‘It Makes Sense’
their financial standing with the credit this offering into our normal lending set-up.
offering is:
union. Once lending staff became familiar with the
• Social welfare recipients
product and with the semi automation of
• Fast track membership (for non-
Q. What would you say to credit unions the An Post payment files, the “It Makes
members)
who are not yet part of the initiative? Sense” loan has become a mainstream
• No savings needed
A. We would encourage credit unions to part of what we do.
• Default history does not necessarily
sign up. It takes time to get familiar with
rule individuals out – an ICB check
how the HB system operates and you Q. How do you find the process with An Post
is not mandatory
need to invest in training staff on new and the Household Budget Scheme (HB)?
• Separate credit policy drafted with
policies and procedures. However, the A. I think the service that credit unions get
and acknowledged by the Registry of
positives far outweigh the negatives! from An Post is excellent. Although,
Credit Unions in the Central Bank
repayments through the HB are not
• Repayment via An Post’s Household
Q. What’s been the biggest impact of PMC guaranteed, our experience shows that
Budget Scheme (HB) or by standing
for your credit union? most members who sign up to repay their
order or direct debit
A. 75% of our members who have signed loan through the HB do not cancel. The An
• Small savings amounts facilitated
up for a PMC Loan are new to the credit Post HB team are responsive to queries
• Final credit decision rests with the
union. Some thought that they would not and the €0.25 fee per transaction is good
credit union
be able to borrow from us. We are able to value – as without continued access to the
• www.creditunion.ie/itmakessenseloans
reach out to a section of our community HB it is unlikely that we would have
who needed the credit union most. We remained in the initiative. This deduction
believe that by being able to offer method reduces our risk and is also very
members a PMC loan, we have reminded convenient for the borrower.
the community what the credit union is To sign up:
about. We did very little promotion for this Q. How do you think borrowers view the Contact support team on dedicated help line:
initiative and the majority of new initiative? 01 614 67 37
members heard about the service from a A. There is no doubt that there is a market Email: Lisa.magee@afanite.com or
friend. out there for the product. The recent Tracy.pelosi@afanite.com
CU FOCUS SPRING 17 :: 11ATHLONE CREDIT UNION
CELEBRATES 50th
ANNIVERSARY
50 years ago a pioneering group of Athlone
people prompted by the Chamber of
Commerce had the vision to join a
revolution that was sweeping Ireland at the
time. They founded a community based
member-owned co-operative; Athlone
Credit Union. Eight years earlier, Ireland’s
first credit union had been established at
Donore Avenue, Dublin, with a deposit of
£7 in the first week. 50 years later it is
possible to reflect on what that revolution
achieved in Athlone and where it might go
next.
The early days of Athlone Credit Union
In early 1966 Athlone Chamber of
Commerce was approached by a
representative from CIE and Gentex with a
view to establishing a credit union in
Athlone. After months of fact finding and
information gathering, a public meeting Athlone Credit Union Chairman Alan McNeice with Manager Catherine Egan and Anne Duffy, also of
was called by the Chamber of Commerce Athlone Credit Union, who honoured surviving members of the Jadotville Battle at the 50th
for 25th November in the Prince of Wales anniversary celebrations
Hotel. A letter was sent out to businesses, offices of the Workers Union of Ireland anniversary of the opening of the credit
clubs and organisations in the town over Foy’s shop in Church Street. The union in Athlone. The new premises was
inviting them, together with co-workers, opening hours were decided at 4-6pm on officially opened on 8th June 1997 by
family and friends to attend. The meeting Saturday and 11.30am-1.30pm on Norman Murphy, President of the Irish
was chaired by Andrew O’Connor, Sunday. Lodgements were accepted by League of Credit Unions, and Tom Price,
President of Athlone Chamber of designated committee members. Loan President of Athlone Credit Union. By
Commerce with Patrick Russell, Secretary applications could only be taken by a then, assets had grown from £8,341 in
of the Chamber and Michael O’Doherty, Credit Committee member during these 1969 to €6.7 million in 1996. The next ten
Field Officer of the Credit Union League of hours. years showed huge growth and by 2006
Ireland. The meeting was a great success. assets had reached €435 million.
This led to the inaugural meeting of Growth of the credit union Today, Athlone Credit Union continues
Athlone Credit Union which took place on In 1969, Eamon Ginnane was appointed to grow, assets at the end of the current
2nd December 1966. At the next meeting as the first employee, followed in 1970 by financial year reached €80 million, with an
on 9th December, the following names the appointment of Liam O’Dalagh as first active membership in excess of 17,000
were registered as the founder members manager. By 1970 the credit union was in and a staff of 18.
of Athlone Credit Union; a position to purchase its own premises in
Board of Directors – Patrick Russell, Friary Lane. The move to the new The mission of the Athlone pioneers
President, Patrick Ralph, Vice President, premises enabled the extension of The pioneering group who founded
Andrew Lyon, Treasurer, Capt. Leo opening hours and also allowed the credit Athlone Credit Union achieved
Keenan, Secretary, Jim Whooley, union to give St Francis Co-Op Housing extraordinary results for the town. For the
Education Officer, M Keating, Publicity Society free use of a room, and first time in the history of Athlone, ordinary
Officer and Joe Finn, Pat Morrissey, Brian encouraged credit union members to avail people had access to reasonable credit.
McGrath and J Quirke. of the society’s services. With reasonable credit came all sorts of
Credit Committee – Patrick Campbell, In 1996, the growth of the credit union freedoms. The most immediately
Seamus Bleakley, Cecil Wheatley, Kitty required larger premises and a property in important would have been freedom from
Higgins and Thomas Burke. the historic Northgate Street was moneylenders. Then the freedom to
Supervisory Committee – John purchased, close to the site of the former manage their own finances in ways not
Hardiman, Austin Kilbride and Jim Keane. Athlone Wollen Mills, now the Radisson previously possible. Next was the freedom
The credit union had free use of the Hotel. This purchase marked the 30th to use their own savings and credit to
12 :: CU FOCUS SPRING 17Athlone Credit Union Chairman Alan MacNeice, with Manager Catherine Egan, ILCU President Brian McCrory and represetatives of Athlone Credit Union
who were honoured at the 50th celebrations
a mobile phone app.
Some may ask how important is the
credit union in a world so different from
the 1960s? Today credit and financial
services are much more commonly
available than they were then. The credit
union is routinely ranked as the most
The Board of Athlone Credit Union. (Manager Catherine Egan absent from photo).
trusted of organisations. It is routinely
ranked highest for customer service to
improve their lives. through both borrowing and lending. members compared to other organisations
The founders of Athlone Credit Union Athlone Credit Union now has assets of that serve the public. That should be no
and the generations of volunteers and €80 million with reserves of €14 million. surprise because in good times and bad
staff that came after them grew the credit Generations of members have everything credit unions do is always in
union from small beginnings to where it is prospered with their credit union. In the best interest of members.
today. Within the first year the assets of addition to the savings and loans available The unfinished revolution of the 1966
the credit union grew to over £8,000. 50 50 years ago, members can now get a Athlone pioneers is to provide all financial
years later there are over 17,000 free financial check, get insurance, services needed by a member from cradle
members with savings and deposits of change currencies and use the bill pay to grave, provided from within the
€65 million, over €27 million of which is service from the two branches in North community to the community. Athlone
on loan to members. This is the Gate Street and Monksland. Members can Credit Union is as important as ever
fundamental co-operative principle in access their accounts and transfer money because it can be trusted and because it
action; members supporting each other electronically from a computer, or by using puts members’ interests first.
CU FOCUS SPRING 17 :: 13New Report Highlights
Importance of Advertising
& Marketing
A new report investigating the impact and
importance of advertising and marketing to
Irish companies contains a number of
revelations that will be of importance to
credit unions when considering their
marketing and advertising campaigns for
the year ahead.
The report, titled Marketing
Multiplied, was carried out by Core
Media, in conjunction with the
Association of Advertisers in Ireland, EFFICIENCY
and was written by Core Media’s CEO
Alan Cox together with well-known
economists Jim Power and Chris Johns. SHORT TERM LONG TERM
The report presents in one location a CAMPAIGNS CAMPAIGNS
survey of literature and research from all
over the world and presents a robust
case for the impact of marketing
communications on national economies campaigns (those that are evaluated overall credit union brand is
and brands, while giving guidance on over periods of longer than six months) recognisable on both a local and
how to improve the effectiveness of are around three times more efficient national level.
campaigns. than short-term campaigns. Short-term As new creative was added to the
It found that every €1 invested in initiatives are, in fact, more effective at campaign to help meet local marketing
advertising results in €5.44 net Return driving transient sales effects, but they needs, more and more credit unions
on Investment (ROI). In addition to the deliver weak long-term growth. have been using the bespoke material,
ROI figure, the findings also state that Businesses need to employ both such as posters, leaflets, Facebook ads
the size of a brand has a major impact techniques, but in the correct etc., and personalising for local needs -
on the efficiency and effectiveness of proportion. for which there is no design charge to
marketing communications; “large Furthermore, the report points out NAC participating credit unions. An
brands have inherent advantages over that emotionally-based campaigns emerging trend in credit unions is to
smaller brands; they have higher outperform rationally-based campaigns; employ a local marketing professional or
penetration, better distribution, stronger "they are significantly more profitable, engage the services of a third party. To
range and pricing strategies that help to they are better at generating awareness, help you save on further investment in
maintain and increase share.” they are stronger at creating new materials why not use the tools of
differentiation and they form more the NAC and save on costly design
Brand success durable memories in the minds of costs?
Another finding which will be of consumers." For credit unions to get more loan
importance to credit unions is that long- enquiries, people need to feel more
term marketing and advertising How the credit union’s NAC fits in confident to borrow from credit unions
campaigns are far more effective than The National Advertising Campaign and the NAC is tapping into this
short term or ad hoc campaigns. Short- (NAC), developed by the emergent recovery narrative. The
term marketing is on the rise and it is Communications Team of the Irish confident prospectors are targeted by
damaging the profitability of marketing. League of Credit Unions (ILCU), ensures adopting an approach that is attitudinal
This shift has been caused by recession- that the long-term advertising campaign and motivational. "I want" versus "I
driven urgency, in businesses, to build of We look at Things Differently for need", "Emotional" versus "Rational".
immediate sales and a belief among credit unions is effective, efficient and Through the lens of the “Your Loan,
senior management that this will be delivers an ROI. Not only does the Your Way” campaign, credit union loans
achieved through short-term tactics advertising outreach entice and inform are positioned differently to the rest of
(rather than long-term brand-building new and existing members about credit the market; Loans are not just available
strategies). However, long-term union loans, but also ensures that the through the credit union, they are here
14 :: CU FOCUS SPRING 17FURTHER INFORMATION:
For free personalisation of the NAC materials email: ilcucommunications@creditunion.ie
FOR MARKETING GUIDES AND TEMPLATES GO TO:
www.creditunion.ie/membersarea/communications/marketingtemplatesguidelinesforcreditunions
THE MARKETING MULTIPLIED REPORT IS AVAILABLE FOR PURCHASE AT:
www.coremedia.ie/marketing-multiplied
for people, not for profit. Credit unions
concentrate on the reality of borrowing - TIPS FOR CREDIT UNIONS:
loans are for real life events and
purchases; THE "I can stop pretending I • One of the most common questions
know DIY" LOAN. The seeds of asked when it comes to marketing is
borrowing motivation are being planted ‘How do you know if it’s working?’ The
by instilling confidence in the target answer is simpler than you think. Ask! At
audience to borrow from the credit union the counter, over the phone, via email,
by creating relatable bonds. whether it’s an enquiry for a loan, a new
The campaign was developed to assist member signing up – how did they hear
credit unions to deliver a national about you, have they seen the
campaign which is visually strong advertising? Two or three simple
enough to compete with the significant questions captured at that time, builds
and increased spend of financial into a powerful measurement tool as the
weeks and months progress.
institutions in terms of advertising,
• Track your data analytics from
marketing and point of sale material and
online/social media advertising, Google
that could be adapted easily for local
and website traffic. Do traffic and
activities.
enquiries spike when you're advertising
By investing in creativity and
locally? Where does your website traffic
delivering a long-term advertising
come from?
campaign that is consistently on
• On average it is recommended that you
message, the NAC is a clear example of
demonstrate how essential marketing is should spend 60% of your budget on
best practice in marketing and
to the long-term growth and profitability brand-building activity (long-term, broad
advertising in Ireland.
of businesses.” reach, emotional) and 40% on sales
In the digital age however, there are activation (short-term, tightly targeted).
Time for marketing in the boardroom numerous ways to track the performance • Avail of the free NAC personalisation
The ‘Marketing Multiplied’ report also of marketing campaigns with the service for your local print/ web materials
found that there is an absence of development of econometric models and and tap into the advantages of a long
marketers from the Boardroom in Irish data analytics. With the availability of term national advertising campaign.
companies. Ireland is not the only quantifiable evidence on the • The NAC loan enquiry tool drives loan
country where this is an issue. In fact effectiveness of marketing campaigns, enquiries to participating credit unions.
this is even a characteristic of the time for marketing representatives in It is vital that your nominated email
boardrooms in the US, where marketing the Boardroom is now. address is checked regularly and
practices would be considered advanced. responded to promptly. Don't forget, if
A 2016 study by Forbes magazine found The credit union marketing challenge the enquirer is not yet a member, invite
that just 2.6% of 65,000 company The challenge of growing the loan book them to join. Do not leave the query
directors had a managerial-level is one which is faced by all credit unanswered. The development of this
marketing background. unions. The NAC plays a key role in tool has significant potential for your
This problem could well be one of the raising awareness of credit unions and credit union to directly follow up on hot
contributing factors to the tendency to encouraging people to borrow from their leads that are actively looking for a loan
look at marketing budgets and local or workplace credit union. The NAC within your local community.
campaigns as an expense, instead of an is not meant to replace local activities • Assign Marketing to a staff member’s core
investment. This mind-set can be one of but rather to supplement local activities. role and responsibilities - it doesn't
the biggest obstacles to real marketing Acting alone, each credit union’s ‘voice’ always have to be the Manager! The
and advertising success. may be drowned out by large person responsible for the ultimate
The report states that “Marketing competitors. But together, the combined delivery of your marketing plan should
tends not to be taken as seriously by resources of credit unions can deliver a be empowered to do so, with the agreed
corporate Boards as it should be. The strong, forceful national message in an decision making process outlined in your
reason for this has been the absence of increasing marketing and competition marketing plan.
quantified, credible evidence to space.
CU FOCUS SPRING 17 :: 15THE FUTURE
OF MONEY
By Thomas Geoghegan
Ireland’s brands are
witnessing a hidden tipping
point in new payment
technologies, leaving them
less time to adapt.
The recent Irish launch of
Google’s Android Pay has
focused our attention on new
transaction technologies and
begged us to ask what the
future of payments and money
holds for us in Ireland. New ways to pay
THREE TECH TRENDS DRIVING THE data into ‘virtual currencies’ that will
We are living through, increasingly co-exist with euros or dollars.
FUTURE OF MONEY
perhaps, the biggest As a small, open country, three global Starbucks’ branded mobile wallet, which
disruption to money in history. trends are poised to reshape Ireland in a customers use to pay for their coffee,
The internet, smartphones, variety of ways. converts their loyalty into instant
MyStarbucks Rewards which they can
social media and big data New ways to pay and transact spend in-store. Lifestyle tracking is
have made it possible to In future, it will be normal to use our another evolving area for virtual
transform nearly any kind of smartphones to pay for most things. currencies. Nike let fans use their health
Mobile wallets like Apple Pay will replace app data as currency to bid on exclusive
data into currency, in turn
contactless cards. Peer-to-peer (P2P) Nike products. The idea of financial health
creating radically new ways payment apps like Venmo and Snapcash, tracking is picking up as 75% of US
that consumers and which allow people to send each other millennials say they track their finances
businesses can transact, money directly, will largely replace cash. carefully, and apps like Mint are already
Internet-connected devices will be helping users track their ‘financial fitness’.
create and exchange value.
frequently used to trigger purchases, such
as Amazon’s Dash button that lets people A future when banks exist but not how we
This rapidly changing space buy shopping items at the touch of a know them
will transform all our lives button. It has been predicted that mobile A recent PWC survey found 83% of Irish
wallet transactions in Europe will grow by financial services managers believe
prompting us to ask what is 62% by 2021, and P2P payments in the financial institutions are at serious risk. We
driving this disruption, how US are poised to exceed $86 billion by may be looking at something like a
ready are we for the changes 2018. ‘bonfire of the intermediaries’ as many
to come and what it will mean financial services and traditional banks are
The emergence of virtual currencies disrupted by financial tech start-ups who
for consumers and brands? alongside euros or dollars are more agile in meeting consumers’
Core Media conducted a Consumers are getting used to the idea of needs, and emerging technologies like
study to find out. ‘earning’ from brands by converting their ‘blockchain’.
16 :: CU FOCUS SPRING 17HOW WILL THIS AFFECT
BRANDS AND BANKS?
This generational shift will profoundly affect how
brands and banks relate to Generation-Z and the
products and services they offer to meet their
emerging needs.
To prepare for the future, we need to keep a few
important things in mind:
• Generation-Z’s different mindset will force
Generation-Z brands to focus on being as useful and
‘frictionless’ as possible – they will only adopt
IRELAND’S APPETITE FOR devices, they expect convenience in
new services if they see tangible benefits or they
DISRUPTION all their interactions and quickly
solve real pain-points – this means tailoring to
Adoption of new technologies is lose interest if this expectation is not
their different needs and wants.
largely driven by local factors. To met. They also have a more casual
understand Irish people’s readiness relationship with brands – to them a
• Moving first on new payment technologies will
to embrace these global trends, brand is something they use, not a
be a strong signal to Generation-Z to take notice
Core Media carried out a national logo.
and enable brands get an edge over their
survey among four generations of For brands in Ireland to
competition – banks and brands will be under
Irish people to find out - Generation- successfully adapt to money’s
pressure to keep pace with emerging
Z (born from 1995 onwards), future, banks and retailers need to
technologies that Generation-Z will expect as
Millennials (born 1985-94), keep in mind five key findings about
standard.
Generation-X (born 1962-84) and Generation-Z:
Baby Boomers (born pre-1961). • They are the most enthusiastic
• Banks and retailers will need to be where
As a nation, we found surprisingly about a cashless future – 24%
Generation-Z wants to pay - the gradual blurring
high levels of openness to these believe Ireland will be cashless in
of digital media channels and transaction
technologies. 60% of people in the next 15 years compared to
channels in people’s minds, for example through
Ireland believe we will become a 16% of Millennials
P2P payments like Snapcash, will prompt
cashless society, 63% would use • They are most prepared for a
brands to think how these technologies interact
new transaction technologies, and cashless future – 75% would
in the context of their existing business and act
77% would trust tech brands like consider using new payment
as tools to create better customer experiences.
Google or Apple to provide technologies compared to 66% of
transaction services. These high Millennials
• The design of shops, banks and payment points
figures emphasise how quickly • They are more trusting of a wider
will need to continually evolve as connected
these technologies could go repertoire of tech brands to
devices become more common, and online and
mainstream in the near future. provide alternative banking
offline worlds blur. Brands and banks will need
But when we delved more deeply services such as Apple, Google
to continually evolve the role of brick-and-
into the four generations, we found and Facebook, but also brands
mortar premises, perhaps having to choose
that while Millennials will be the first linked to their lifestyles like
between emphasising convenience or
to adopt mobile wallets, if we are to Snapchat
experience.
understand the future’s ‘new • They are significantly more
normal’, we need to look at their comfortable with sharing personal
• Brands will be expected to prove they take
successors, Generation-Z, who data with finance brands – 49%
customers’ privacy and security very seriously or
bring a very different money of Generation-Z compared to
risk losing trust overnight; while Generation-Z
mindset than their peers. 33% of Millennials
and Millennials are the most open generations to
sharing data, they are also highly protective of it,
WHO IS GENERATION-Z? For this reason, our research preferring to do it on their terms.
With the eldest turning 21 this year, unveiled a hidden tipping point.
Generation-Z will take on much 42% of Millennials say they have The future of money is complex and fast-changing,
greater significance as consumers used a new payment technology, but filled with opportunity for those who prepare
in the coming years. but Generation-Z’s greater correctly for it.
They are the first true digital enthusiasm and openness to doing
natives – they don’t remember a things very differently suggests Thomas Geoghegan is Strategic Planner at Core Media,
time without the internet, preparing for tomorrow’s new Ireland’s largest media communications group.
smartphones and social media. normal means preparing for
Used to moving fluidly across Generation-Z’s needs now.
CU FOCUS SPRING 17 :: 17You can also read
