CUFocusWinter 2019 - CREDIT UNIONS CELEBRATE FIFTH CX AWARD ON ICU DAY MX Toolkit | The Importance of Culture in Credit Unions - Irish League ...

 
CUFocusWinter 2019 - CREDIT UNIONS CELEBRATE FIFTH CX AWARD ON ICU DAY MX Toolkit | The Importance of Culture in Credit Unions - Irish League ...
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     CUFocus
                                                          Winter 2019

         CREDIT UNIONS
     CELEBRATE FIFTH CX
      AWARD ON ICU DAY
         MX Toolkit | The Importance of Culture in Credit Unions
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                                                                                                 04                   Editorial
                                                                                                                      For the fifth consecutive year now, Irish credit unions have
                                                                                                                      won the national Customer Experience Ireland (CXi) Award.
                                                                                                                      Not only have credit unions achieved this unprecedented
                                                                                                                      five-in-a-row, but they are also the only (purely) financial
                                                                                                                      services organisation to make it into the top ten.

                                                                                                                      Irish credit unions are trusted by their members because
                                                                                                                      they have formed an emotional bond with them over time.
                                                                                                                      Credit unions make it easy for their members to do
                                                                                                                      business. They deliver on their promise. They fix things
                                                                                                                      when they go wrong. This is why Irish credit unions
                                                                                                                      continually collect the CX Award.

                                                                                                                      Credit unions should celebrate this achievement. It should
                                                                                                                      not however make us complacent, but encourage us to
                                                                                                                      continue to exceed our members’ expectations.
                                                                                                   06                 To that end, the ILCU, in conjunction with a number of
                                                                                                                      credit unions, developed the Member Experience (MX)
                                                                                                                      Toolkit. The toolkit aims to show credit unions how to
                                                                                                                      embed MX in everything they do. You can read full details
                                                                                                                      on pages 6 and 7. Suffice it to say here that MX is
                                                                                                                      everyone’s responsibility. From the Chair of the Board and
                                                                                                                      CEO, to the Directors and frontline staff. This is what will
                                                                                                                      keep credit unions unique and in the forefront of
                                                                                                                      members’ minds.

                                                                                                                      As we look forward to 2020, there remain many
                                                                                                                      challenges. Not least of which are the increased levies
                                                                                                                      being imposed on the movement which the ILCU is
                                                                                                                      vigorously campaigning against. Loans to asset ratios
                                                                                                                      remain low, and return on investments are at critical
                                                                                                                      levels. However, the bonds of trust between members and
                                                                                                                      their credit union have never been stronger. Credit unions
                                                                                                                      will remain as the cornerstone of communities throughout
                                                                                                                      the island of Ireland because of their commitment to their
                                                                                                                      local communities, their ethos and their outstanding
                                                                                                                      member experience.
                                          Main Cover Image:
                                          ICTU Secretary General,                CONTRIBUTIONS
                                          Patricia King, with the                 Contributions may be
                                          ESRI's Professor Pete Lunn                                                  There is much to look forward to as the credit union
                                                                                 submitted via email to
                                          and ILCU President Gerry
                                                                                 editor@creditunion.ie.               movement enters 2020, the 60th Anniversary year of the
                                          Thompson at the ICU Day
                                          Breakfast Briefing                                                           ILCU.

        Editorial Committee: Clive Davis and Paul Bailey. Volume 3 Issue 12 ©.
        ILCU ISSN 1649-377X. ILCU Board: Gerry Thompson, President. Eamonn Sharkey, Vice-President. Helene McManus, Treasurer. Ciaran Bishop, Charles Murphy, Margaret Heffernan,
        Blanche Ronayne, Martin Sisk, Joe Mulvey, Jim Toner, Vanessa Foran, Martin Busch. Supervisory Committee: Patricia Doherty, Michael Cogley, Terry Redmond Life Director: John Hume

        Design & Print: Outburst Design. Please Note: The deadline for the next issue of CU Focus is Tuesday 4 February 2020. 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

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                                                          04 Credit Unions are five times CX
       09                                                 Champions
                                                          Irish credit unions claim the top spot in the CXi League
                                                          Table for a global, record-breaking fifth consecutive
                                                          year

                                                          06    The MX Toolkit
                                                          A Member Experience (MX) Toolkit has been
                                                          developed for credit unions to further embed MX at
                                                          the core of everything they do

       17                                                 08    CRIF Levy Update
                                                          The Minister for Finance has announced a decrease in
                                                          the CRIF Levy - but this does not go far enough for
                                                          credit unions

                                                          09    ICU Day Breakfast Briefing
                                                          Financial education was the key focus of the Breakfast
                                                          Briefing on ICU Day 2019

                                                          10    Cyber-Security Awareness
      22                                                  2019 has seen an increase in ransomware attacks and
                                                          BECs. This guide will ensure you stay cyber-aware

                                                          12    Leadership in Culture
                                                          Exploring the importance of culture in credit unions,
                                                          including from the regulator's point of view

                                                          14    What's the Culture in your Credit Union?
                                                          The importance of ensuring a healthy culture in your
                                                          credit union

       30
                                                          22    30 Years of the ILCU Foundation
                                                          The highlights from the recent work of the ILCU's
                                                          International Development Foundation, celebrating its
                                                          30th Anniversary this year

                                                          30    Your Stories
                                                          A look at all the latest news, events and initiatives from
                                                          credit unions across the island
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           RECORD BREAKING CX
           AWARD FOR CREDIT
           UNIONS
           Credit unions have once again been awarded the best customer experience in Ireland,
           leaving the banks trailing in their wake. For a global, record-breaking, fifth consecutive year,
           credit unions have been named the overall winners of the Customer Experience (CXi)
           Awards. This is a world first for the CX Awards.

           Credit Unions Buck the CX Trend
           Of the 160 brands examined for the
           awards, only 15 brands managed to
           improve their CX score. This makes the
           achievement by credit unions all the more
           impressive. Credit unions are also only one
           out of a handful to remain in the top 10
           since last year.
              Overall, there was a noticeable drop in
           the CX scores amongst other companies.
           The report identified the fact that many
           companies struggled to gain traction with
           their CX initiatives over the past year, while
           others were just not focused enough on
           customers. The report also found that
           brands were failing to differentiate
           themselves from competitors through CX.
              Another key issue with brands appeared
           to be the lack of the ‘human touch’ - which
           was the focus of last year’s CX report. The
           report found that the “marrying of
           technology with the human touch …..is            congratulate Irish credit unions for their        ‘Six Emotional Drivers’. These are;
           still a balance that must be got right.          consistently high performance and for             n I Trust You - you build trust in
           Human beings thrive on making                    completing the ‘Drive for Five’. It really is a      everything you do with me
           connections with each other. Whilst digital      fantastic achievement to remain the Irish         n You Know Me – you treat me like an
           plays a key role in delivering an easy,          leader in CX over a five-year period - and a         individual and understand my needs
           stress-free experience, it is the human          world’s first. Many Irish companies,              n You Make it Easy – you make it easy for
           interactions that create the memorable           particularly those in the financial sector,          me to do business with you
           experiences we remember and share.”              could learn a lot from credit unions,             n You Get Me – you genuinely understand
              None of the above were issues for credit      especially their member or customer-                 what it’s like to be in my shoes
           unions however. Credit unions excel in           centric approach.”                                n You Deliver on your Promise – you
           their personal connection with their                                                                  manage, meet and exceed my
           members. They genuinely care about their         How the CX Survey Works                              expectations
           members and put their members at the             CX is the emotional connection a person           n You Fix Things – when things go wrong,
           heart of everything they do. Likewise, the       feels when engaging with a                           you fix them brilliantly
           credit union ethos and values ensure they        brand/organisation. The annual survey
           are differentiated from competitors (the         examines this emotional connection in             The CX company has identified these
           banks, moneylenders) – and this is why           detail by asking a representative cross-          bonds as the ones that create deeper
           they claim the top spot again this year.         section of Irish consumers to rate their          relationships between the customer and
              Commenting on the achievement by              experiences of 160 brands across 10               the company. This ultimately leads to an
           credit unions, Michael Killeen, Chairman         different sectors. The performance of the         outcome of advocacy and growth.
           of the CX Company, said: “We have to             different brands is measured against the            Over 42,000 experiences were evaluated

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        for the 2019 survey using these key           Commenting on credit unions claiming         union to other potential members.
        drivers. Other aspects of CX that were        the number one position for the fifth        Another factor to take into consideration
        examined included loyalty, value for          consecutive year, the report said: “Utter    is that happy employees lead to greater
        money and the importance of staff             member commitment is in their DNA and        staff longevity and therefore more
        happiness for CX. Interestingly, credit       remains their number one priority. This      knowledgeable CX experience delivery.
        unions also scored very highly for value      year saw them introduce an innovative,          Congratulating credit unions on the
        for money, as well as loyalty.                world class CX toolkit to aid every          remarkable achievement, ILCU Head of
                                                      employee to continue to deliver a            Communications, Paul Bailey, said:
        How the Banks Fared                           consistent and remarkable experience.        "Credit unions across the country have
        Credit unions were also the only financial    Simple products, improving processes         done themselves proud yet again with
        services organisation to make it into the     and smiling employees makes them hard        this record-breaking achievement. This
        top 10, and even the top 100. In              to beat!”                                    prestigious award is testimony to the
        contrast, the banks performed worse             You can read more about the CX             efforts, dedication and commitment of
        than in previous years, with AIB falling 51   toolkit for credit unions, named the         everyone involved in the credit union,
        places to number 130. Last year, AIB          Member Experience or MX Toolkit, on          from staff to volunteers, to putting people
        was the highest ranking bank in 79th          pages 6 & 7.                                 first. Credit unions in every community
        place.                                                                                     ensure they always put their members at
           This year, the highest ranked bank was     Benefits for Credit Unions                   the heart of everything they do. Credit
        EBS at 107, up eight places since last        The benefits of being the highest ranked     unions genuinely care, and when you
        year. Ulster Bank joined AIB at number        CX organisation in Ireland are numerous.     care about someone, that’s what they
        130, up four points since last year.          One of the most important benefits is that   remember. This is ultimately why credit
        Permanent TSB was at 140, down 45             organisations performing well in CX have     unions were for the fifth consecutive year
        places. KBC also fell 30 places to 149.       customers (members) that are seven           named as national CX Champions.”
           According to the CX report, the lowest     times more likely to purchase (borrow).
        scoring emotional driver for the financial    They are also eight times more likely to
        sector was ‘You Deliver on Your Promise’.     try another product or service. Members
        The report stated: “With the entire sector,   will be more likely to continue to do
        aside from the credit union, outside the      business with the credit union and also
        top 100, the financial sector as a whole      more likely to recommend the credit
        needs to get back to basic and start
        making realistic promises that they can
        actually deliver on.”
           Credit unions should be aware however
        there will be an increased focus on CX
        from the banks next year.

        The Top Ten CX League Table 2019:
           Credit unions were followed by Laya
        Healthcare in second place and
        Phonewatch in third place. It was
        interesting that the two highest places
        under credit unions were both insurance
        companies, despite the negative media
        coverage they have been getting. An Post
        fell from seventh place last year to tenth
        place this year.
           The full list of the top ten brands in
        Ireland is shown below.

        Ireland’s CX Top Ten
        n Credit Unions
        n Laya Healthcare
        n Phonewatch
        n Oxendales
        n Specsavers
        n Arnotts
        n Peter Mark
        n Boots
        n Lush
        n An Post

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       Delivering an Excellent
       Member Experience
       For many years, organisations were       Customer experience (CX), or Member         customer/member advocacy and
       evaluated against the level of           Experience (MX) in a credit union           business growth.
                                                context, is the sum of all interactions a
       customer service they provided.
                                                person has with an organisation. It         Irish credit unions have been
       This typically focused on the            describes how people feel about all of      recognised by their members for
       human interaction between staff          the interactions they have and is           providing a world class Customer
       and customers. However, in the           measured against their expectations –       Experience (CX). This has been
       omni-channel environment in which        i.e. what they expect from all areas of     reflected in Irish credit unions being
       every organisation operates, it is       your business.                              awarded first place in the annual CXi
                                                                                            Ireland Customer Experience Report for
       now generally accepted that this
                                                The Framework                               five consecutive years. Irish credit
       measure is too limited in scope.         So what are the key pillars of great        unions are the only organisation,
       Customer service is functional,          customer or member experience? The          worldwide, to achieve this accolade.
       mostly reactive and is now seen as       CX Framework, developed by The CX              While credit unions may excel, they
       one part of the puzzle.                  Academy, identifies six emotional           should certainly not rest on their
       Organisations have now shifted to        drivers that enable companies to build      laurels. The experience which people
                                                emotional bonds with customers. These       want and expect from credit unions is
       tracking the entire journey which a      bonds create deeper relationships           changing, and it is imperative that
       customer may undertake, looking at       between the customer and the                credit unions continue to change to
       every touchpoint and possible            company to deliver CX Excellence. This      meet the needs of their members.
       interaction.                             ultimately leads to an outcome of           People want a consistent, personal,
                                                                                            seamless experience, using a channel
                                                                                            of their choice and at a time of their
                                                                                            choosing. In addition to the changing
                                                                                            landscape, credit unions’ competitors
                                                                                            are realising the importance of CX, and
                                                                                            investing significantly in enhancing
                                                                                            their offering, whilst aligning their
                                                                                            business goals around it.

                                                                                            MX Working Group
                                                                                            In order to adopt and develop a more
                                                                                            formalised approach to the delivering of
                                                                                            excellent member experience, the ILCU
                                                                                            Communications Department brought
                                                                                            together a group of credit union
                                                                                            marketers with a keen interest in this
                                                                                            area. The group - Roisin Gilroy, St.
                                                                                            Canice’s Credit Union, Padraig Power,
                                                                                            HSSCU, Eva McCloskey, Letterkenny
                                                                                            Credit Union, Liam O’Doherty,
                                                                                            Gurranabraher Credit Union and Julie
                                                                                            Thornton, Life Credit Union – worked
                                                                                            together with members of the ILCU
                                                                                            Communications Department, along
                                                                                            with Michael Killeen and Siobhan
                                                                                            Mallen from The CX Company.
                                                                                               The group developed clear insights
                                                                                            into the MX challenges and
                                                                                            opportunities faced by credit unions
                                                                                            and identified the key areas which
                                                                                            credit unions can address to enhance
                                                                                            their MX activities.

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                                                                             The toolkit provides insights and techniques which credit
                                                                           unions can use to develop a deep understanding of their
                                                                           membership base, including the various data sources and
                                                                           research options which can be used to develop a deeper
                                                                           understanding of member needs and behaviour.

                                                                           3. Channel and Process Audit
                                                                           Great MX is intentional, purposeful and consistent. It is not just
                                                                           about the transaction, but also optimises every touchpoint and
                                                                           takes into account all member interactions, both online and
                                                                           offline.
                                                                             Credit unions are provided with a toolkit to help them to carry
                                                                           out both a channel (in-office, online, phone, post and email) and
                                                                           a process (membership application and loan application) audit.
                                                                           This will assist credit unions to identify a range of potential
                                                                           barriers to the delivery of an excellent member experience.

                                                                           4. Framework for Success
                                                                           Once the groundwork of research and analysis is done, it is time
                                                                           to take the issues and opportunities identified and turn this into a
                                                                           deliverable set of actions. Constructing a framework for success
                                                                           doesn’t just mean picking key insights and goals and compiling
                                                                           them into a realistic, robust plan. It also means ensuring that all
                                                                           credit union personnel, from Board level to frontline staff, are
                                                                           aware of the strategy and fully bought-into their role in helping to
                                                                           bring about success.
                                                                              While everyone within the credit union will have some role in
                                                                           delivering the overall MX strategy, it is also beneficial to appoint
                                                                           MX champions within the credit union to drive the overall
                                                                           approach. Many might default to picking a senior member of
                                                                           staff, but this does not have to be the case. The person most
                                                                           passionate and committed to helping to deliver an excellent
                                                                           member experience in your credit union may not be someone
                                                                           tasked with engaging with members every day.
                                                                              Embedding a process of ongoing
                                                                           measurement and refinement of the
      The group quickly established that credit unions would greatly       overall MX strategy is also identified as a
      benefit from the development of an MX toolkit which could help        key element of success.
      to:                                                                     The MX toolkit can help credit unions
      a) Highlight the critical importance of MX                           to develop a more standardised,
      b) Provide guidance on the key tenets of excellent MX                consistent approach to the delivery of
      c) Assist credit unions in developing an MX strategy aligned to      great member experience. Credit
          their own requirements                                           union personnel can access the
      d) Highlight methods to ensure that all stakeholders were
                                                                           new resource by visiting the
          committed to the strategy                                        affiliate area of
                                                                           creditunion.ie.
      The group met on five occasions during 2019 to share their
      experiences and to develop the toolkit. The toolkit, which was
      launched at the 2019 Marcomms Conference in Tullamore,
      covers four key areas:                                                  Meet MEG
      1. What is MX and why is it important?                                  In order to act as a guide when
      The first section of the toolkit outlines what we mean when we           interacting with credit union
      talk about MX and how it differs from member service. The               members, the MX Working Group
      toolkit then examines the six key pillars of MX and highlights the      introduced MEG. MEG, an acronym
      short, medium and long term impact of developing an effective           for Meet, Engage and Go the extra
      and considered MX strategy.                                             mile, can be viewed as the
                                                                              personification of a typical member. All
      2. Understanding Members                                                decisions and actions taken by credit
      ‘Start with the member’ might sound obvious, but some                   union personnel should be done with
      companies often approach CX and digital transformation from             MEG in mind, by constantly putting
      an inward-facing, cost-cutting or productivity perspective, which       themselves in MEG’s shoes.
      rarely results in a superior experience for their customers.

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DECREASE IN CIRF
   LEVY ANNOUNCED
   As CU Focus readers will      The ILCU has campaigned for the              per cent. The impact of the revised
                                 levy to be set to zero. It is the ILCU’s     rate will see a 44% reduction in the
   know, the Irish League of     position that affiliated credit unions       Resolution Fund levy for 2020
                                 would be better positioned to                compared to 2019”.
   Credit Unions has been        withstand the increases in the                  While this is not the 100%
   consistently lobbying the     Central Bank Industry Funding levy           decrease the ILCU had campaigned
                                 (CBIF Levy) should the CIRF levy be          for, it acknowledges that this does
   Minister for Finance, and     set to zero.                                 represent some reprieve for credit
                                    Following the consultation period         unions, who are currently paying
   his Department, in relation   on the CIRF levy (between June and           €7.5 million per annum for the CIRF
   to the Credit Institutions    August 2019), and persistent                 levy. It is limited progress.
                                 lobbying from ILCU representatives,             However, this is still well over and
   Resolution Fund levy (CIRF    the Minister for Finance has                 above what a volunteer-led, not-for-
                                 announced a 44% decrease in the CIRF         profit organisation should have to
   Levy).                        levy for 2020 compared with 2019.            pay. Coupled with the CBIF levy
                                    The Minister’s statement said that:       increase (which is due to increase
                                 “It has been decided that the target         from €1.5 million to €7.8 million by
                                 size of the Resolution Fund should be        the end of 2022), credit unions are
                                 set at €65 million and that this             having to contend with a wholly
                                 target should be met by 2025. It was         unacceptable tax on social capital.
                                 also agreed that the Resolution Fund            The combined effect of the
                                 should be reviewed in 2025 and that          increase in the CBIF levy, and this
                                 the annual levy should be                    reduction in the CIRF levy, will see
                                 approximately €5 million per annum           credit unions paying approximately
                                 from 2020 to 2025 to increase the            €3 million extra in levies per annum
                                 size of the Resolution Fund from €35         in the coming years. The situation is
                                 million to €65 million, broadly in line      made all the more unacceptable by
                                 with the increased average asset size        the current climate of critically low
                                 of credit unions. The adjusted levy          return on investments.
                                 rate would be dependent on the                  In contrast to a sharp increase on
                                                 movement of the asset        levies for credit unions, the
                                                    size of the sector        Government recently announced
                                                    over the five years       plans to support local community
                                                    and whether any           radio, reducing the levies placed on
                                                   costs of resolution        independent broadcasters. Unlike
                                                   have been incurred         many media organisations, credit
                                                  by the Resolution           unions are wholly not for profit.
                                                 Fund.                           The Charity Regulator is fully
                                                    The levy rate for         funded by Government, so that
                                                   2020 will be set out       society at large supports the
                                                      in a Statutory          regulatory cost of the enormous social
                                                        Instrument in         capital it oversees. Why then is the
                                                          October 2019        Government so willing to undervalue
                                                           and will be        the role of credit unions with these
                                                           based on the       levies?
                                                            assets as at         While some progress has been
                                                            end of June       achieved due to lobbying efforts, this
                                                            2019. Based       development yet again clearly
                                                            on sector         illustrates the incoherent approach by
                                                            assets of circa   Government to levies on the credit
                                                           €18.23             union movement. It is detrimental to
                                                          billion, as at      a movement which is of such
                                                         end June 2019,       economic importance to ordinary
                                                        the levy rate to      people, now more than ever in the
                                                       raise €5 million       uncertainty and upheaval of the
                                                     would be 0.0274%         Brexit era.

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        ICU DAY

         FINANCIAL EDUCATION A KEY FOCUS
        ON INTERNATIONAL CREDIT UNION DAY
         Financial education was the main focus of a
         breakfast seminar to mark International Credit
         Union Day (ICU Day®) on 17th October. Credit
         union representatives, politicians, social and
         volunteer organisations and Central Bank of
         Ireland (CBI) representatives were among the
         attendees. Keynote speakers were Head of the
         ESRI’s Behavioural Research Unit, Professor Pete
         Lunn, and ICTU General Secretary, Patricia King.
            Opening the event at the Dublin Dental
         University Hospital, Irish League of Credit
         Unions (ILCU) President Gerry Thompson said:
         “Credit unions are fundamentally different to
         other financial services providers. Credit unions
                                                             almost no difference whether those answering          simple, jargon-free explanations of complex,
         are not-for-profit, community based and
                                                             the questions had a university degree or not.         and even straightforward, financial products.
         volunteer led. Our movement is part of the social
                                                                                                                   Credit unions can become the leading providers
         fabric of the country, a model of community
                                                             Credit                                                of this information.
         banking open to all with deep roots and
                                                             When it comes to credit cards and loans, people
         widespread affinity.”
                                                             also appear to have very little understanding of      Solidarity and the Collective Good
            The theme for the 71st ICU Day® was ‘Local
                                                             the product. Experiments showed that people           Ms King, who focused on the future for credit
         Service. Global Reach.’ The theme was
                                                             will underestimate how long it will take them to      unions, including the challenge of regulation
         reflective of how each individual credit union
                                                             pay off a loan at a given interest rate. They will    and relevance amongst younger people, said:
         serves a local community. Collectively, the local
                                                             also underestimate how much it costs. As              “The credit union movement is characterised by
         connection has a global effect – there are now
                                                             people are so uncertain, they are very easily         a distinctive set of principles which have at their
         260 million credit union members in 117
                                                             influenced. For example, Professor Lunn spoke          core a strong commitment to attaining the
         countries worldwide.
                                                             about an experiment where people were asked           economic and social goals of the membership
            ICU Day® has been celebrated annually
                                                             to choose between two different loan products.        and the wider local communities.”
         since 1948, and is traditionally marked on the
                                                             They subtly emphasised one loan over the other            Ms King said that the credit union movement
         third Thursday in October. The awareness day
                                                             “much like a card trick” and the people opted         is challenged with harnessing its efforts to
         aims to bring attention to ethical and inclusive
                                                             for the loan that had been emphasised. Again,         develop ways to attract new and younger
         financial services.
                                                             the experiments have shown time and again             members. She said that at the core of that
                                                             that cost of credit is poorly understood and          strategy should be the ethos that the collective
         Behavioural Economics
                                                             people easily manipulated.                            good always outweighs limitless accumulation.
         As the keynote speaker on the morning,
                                                                                                                   Ms King said that it is a more difficult task than
         Professor Lunn presented some very thought-
                                                             Mortgages                                             it appears to try and convince younger people of
         provoking findings from behavioural economics
                                                             Professor Lunn also addressed the inertia or          the value of solidarity and the collective good.
         in relation to savings, credit and mortgage
                                                             unwillingness of consumers to switch mortgage         However those values must continue to be
         products.
                                                             products. Those who understand the hassle             upheld, no matter how hard the challenge is,
            Professor Lunn explained that numerous
                                                             involved in switching are much more likely to         she said.
         experiments he and his unit at ESRI have
                                                             actually do it. Those who don’t understand the            Ms King also warned that “extreme
         carried out have all revealed similar findings:
                                                             hassle involved become adverse to switching           regulation” would result in the undermining of
         “People simply do not intuitively understand the
                                                             because the fact they don’t understand causes         the credit union movement. She said it
         relationships that drive the simplest (financial)
                                                             them to lose confidence. Lack of knowledge             appeared that the CBI had fairly strong views on
         product you could describe.”
                                                             over mortgages is also huge among people –            long term lending for credit unions. She said it
                                                             including those who actually have a mortgage.         has been very difficult and challenging for credit
         Savings
                                                             An experiment carried out with mortgage               unions to get to a point where they are enabled
         He went on to share the details of an
                                                             holders revealed that 1 in 3 did not realise if you   to progress with long term lending. Ms King said
         experiment to determine people’s
                                                             take a mortgage for a shorter term, overall you       she found it difficult to take on board the
         understanding of a simple savings product.
                                                             end up handing over less money for the                opinions of the CBI on this topic, especially in
         They were asked to estimated how much money
                                                             mortgage.                                             the context of ‘the misdeeds’ in relation to the
         they would have in the medium and long term if
                                                                Professor Lunn concluded by saying that            regulatory regime in the past. Ms King said there
         they put away a lump sum of €1,000 at 5%
                                                             these revelations place greater responsibility on     is experience to suggest that in the aftermath of
         interest a year. People gave accurate enough
                                                             financial providers, and regulators, to ensure         a regulatory collapse, extreme regulatory
         estimations of how much they would have up to
                                                             that the public understand financial products –        measures can be introduced. These extreme
         five years. After 10 years, they were not so
                                                             even the most simple products. He also said           measures will only serve to undermine the very
         accurate on how much they would have
                                                             that there is an opportunity for financial services    essence of the model of the credit union, she
         accumulated. After 20 years, they were
                                                             providers to market themselves as being more          concluded.
         underestimating how much they would have.
                                                             ‘decision friendly’. That is, helping their               Ms King also said that, as the ILCU guides
             They were also asked to estimate how much
                                                             consumers to understand these products and            affiliated credit unions through a period of
         they would have by the time they got to 20 years
                                                             assist them in overcoming their lack of               significant transformation, it will be difficult, but
         - if they put away €1,000 ever year as a regular
                                                             knowledge.                                            essential to ensure that the principles of
         saving. They underestimated by 50%. “They
                                                                Credit unions could use this information to        solidarity, cooperation and the interests of
         had absolutely no idea of the right answer”
                                                             become the leading voice on financial education        members is not compromised in the mission to
         Professor Lunn explained, adding that it makes
                                                             in the country. People are clearly in need of         achieve higher efficiency levels.

                                                                                                                                         CU FOCUS WINTER 19 :: 9
CUFocusWinter 2019 - CREDIT UNIONS CELEBRATE FIFTH CX AWARD ON ICU DAY MX Toolkit | The Importance of Culture in Credit Unions - Irish League ...
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      CYBERSECURITY
      AWARENESS
      October was Cybersecurity                      www.nist.gov/topics/cybersecurity             cyber insurance in place.
      Awareness Month. This is an annual                The recently introduced EU                    Since the introduction of GDPR, a
                                                     Cybersecurity Act will bring a strong         financial institution’s financial exposure
      international campaign to raise                agency for cybersecurity and EU-wide          from the risk of a data breach or
      awareness of cybersecurity threats             rules on cybersecurity certification. On       cyberattack incident has increased
      and how to best handle them. 2019              27th June this year, the European             significantly. Credit unions are no
                                                     Cybersecurity Act came into force,            exception to this. Data breach claims are
      has seen an increase in
                                                     setting the new mandate of ENISA, the         also increasing, most of which are as a
      ransomware attacks and business                EU Agency for Cybersecurity, and              result of human error.
      email compromise (BEC). So it is               establishing the European cybersecurity          It is imperative, therefore, that credit
      timely to re-iterate the importance            certification framework.                       unions give priority to reviewing the
                                                        Depending on the size and type of          current level of data breach/cyber
      of having adequate processes and               organisation, the best way to assess your     insurance cover they hold. They should
      controls in place to mitigate cyber            information security position is against a    ensure that it is adequate to mitigate
      risk in your credit union.                     recognised standard that is both              against the potentially catastrophic costs
                                                     auditable and certifiable, such as             of this emerging and ever increasing risk.
         The regulators often remind us that as      ISO27001.
      a consequence of the potential adverse            Cybersecurity is no longer the sole job    ILCU Support
      financial, legal, customer and                  of IT security professionals. It’s a shared   For those credit unions who are
      reputational impacts arising,                  responsibility, which requires efforts at     subscribers to the Irish League of Credit
      cybersecurity and IT risk remain a key         all levels of organisations.                  Union's CUCC service, the following
      focus area - and should be a priority for                                                    resources are available to assist with
      all regulated entities                             WHO IS RESPONSIBLE FOR                    these cyber security responsibilities:
         Regulators expect financial institutions           CYBER SECURITY?
      to consider relevant good practices and                                                      n Cyber Risk Assessment (Risk
      internationally adopted frameworks for IT                                                      Subscribers only)
                                                                                                   n Cyber Risk Guidance document (Risk
                                                      BOARD
      Security Risk Management as may be              n Establish policy, risk appetite,
      appropriate.                                                                                   Subscribers only)
                                                                                                   n Five Cyber Questions for the Board
                                                        strategy
         One such example is the National             n Review procedures
      Institute of Standards and Technology           n Assess results                               (Compliance and Risk Subscribers)
      (NIST) in the United States. The NIST           n Monitor progress and                       n Cyber Fraud Typologies (Compliance
      has developed a Cybersecurity                                                                  and Risk Subscribers)
                                                                                                   n Cybersecurity for Credit Unions: A
                                                        implementation
      Framework that provides a suggested
      structure for the controls that institutions    MANAGER/CEO                                     practical overview of current best
      should have in place in order to manage         n Identify risks                                practice (Compliance and Risk
      and mitigate cyber risks.                       n Plan for attack                               Subscribers)
                                                      n Prepare personnel/systems                  Please note that the list above is not
                                                      n Improve staff training/awareness           exhaustive and other resources are
                       ER      ID
                                    EN                n Implement Board strategy                   available to CUCC subscribers
                   COV                TIF             n Record and report progress/issues
                                                      n Suggest changes
               R E                       Y                                                         Cyber Security Awareness 101
                                                                                                   Human error is involved in 95% of all
                                                       EVERYONE IS RESPONSIBLE!                    security breaches
                    FRAMEWORK                                                                        n Have a regular security awareness
                                             T
       RES

                                                         Board, CEO, Employees, Volunteers
                                            TEC

                                                                                                        training schedule in place for your
         PON

                                                                                                        staff (and other relevant
                                         PRO

                                                     Data Protection/Cyber Insurance                    stakeholders)
                                                                                                     n CU L&D provide a number of
             D

                                                     While cyber security is paramount, it is
                                                     also important to mitigate against the             relevant courses, for example their
                           DETECT                    financial consequences of a data breach             Data Protection and Cyber Security
                                                     incident occurring by having appropriate           for Credit Unions course

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      n Use complex passwords. A cyber survey by
        the UK's National Cyber Security Centre         A new report from AIG states that    deliver customised simulated
        (NCSC) conducted in April this year found       business email compromise (BEC)      phishing emails to staff over a
        that 123456 was the most widely-used            is now the main driver of cyber-     pre-defined period which display
        password on breached accounts                   insurance claims in the EMEA         “Teachable Moments” messages
      n Avoid connecting to public WiFi                 region. After BEC, ransomware        to individuals who fall for a mock
      n Filter email traffic                             was the second biggest offender in   phishing attack.
      n Implement two-factor authentication, e.g.       2018, followed by data breach by        For further details on the service
        note the Strong Customer Authentication         hackers and data breach by           www.topsec.com/phishing.php
        introduced in September for PSD2 for            employee negligence tied in third
        mobile/on-line transactions                     place.                                 If interested in finding out more
      n Install anti-virus software and keep it up to      In most cases, BEC can be         about the special offer available to
        date                                            traced to a phishing email           ILCU credit unions, please contact
      n Know your IT estate; keep an inventory of all   containing a link or attachment.     phishingawareness@creditunion.ie
        IT assets                                       Engaging with the email’s content
        n This should include details on end of life    may give an intruder access into
           support for operating systems                the user’s inbox allowing the
      n Keep all your IT assets up to date (patching)   intruder to send and receive
      n Scan your IT estate for vulnerabilities         emails from the victim’s email
      n Password protect and encrypt confidential        address.
        files in transit                                    The ICT dept. of ILCU has
      n Develop & maintain a backup policy              negotiated a significant discount
      n Restrict and control privileged access          on Topsec’s Phishing Training as a
      n Develop & maintain a Data Breach                Service for any interested credit
        Response plan                                   unions. This service allows you to
      Refer to www.creditunion.ie for helpful
      guidance documents & sample policies

                                                                                                            CU FOCUS WINTER 19 :: 11
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                      The language of leadership to
                            influence culture
                  ulture can be described as       create the shared identity of ‘us’

         C        learned beliefs. Practically,
                  within the credit union
         movement, this is when and where
                                                   within the context of credit unions.
                                                     Credit union culture can be
                                                   visualised as a set of interlocking
         volunteers and staff learn the norms      influencing factors ring-fenced by
         of governance and operations              the strong credit union ethos. It is
         through their experiences and             within this space that decisions are
         interactions. Forbes Magazine has         made that reflect a credit union’s
         described culture as ‘the way we get      cultural understanding and beliefs.
         stuff done around here.’ The credit         As the diagram demonstrates,
         union movement has its own distinct       there are a variety of factors that
         culture, which compares favourably        contribute to the cultural
         to other financial institutions. With     understanding of the credit union
         strong distinctions drawn from the        movement. Similarly, in other groups,
         focus on members, volunteering and        there are complex influences on
         the credit union ethos, these factors     what constitutes their culture.

                                                         conduct failings that have occurred within    whether action is taken to address risks on
            Regulators View of                           the industry in recent history.” Financial    a timely basis.” The Prudential Regulation
            Culture                                      Conduct Authority, Transforming Culture in    Authority’s approach to banking
            Looking outward, regulators have been        Financial Services.                           supervision.
            actively commenting on culture for some
            time. It is important to be aware of how     “We do not have any ‘right culture’ in
                                                                                                       “…some banks are more advanced in
            they view culture - and associated           mind when making our assessment;
            responsibilities of change and                                                             their transformation towards a consumer-
                                                         rather we focus on whether boards and
            performance.                                 management clearly understand the             focused organisational culture than others,
                                                         circumstances in which the firm’s viability   and all have a distance to travel.” Central
            “Culture in financial services is widely     would be under question, whether              Bank of Ireland (CBI), commentary on
            accepted as a key root cause of the major    accepted practices are challenged, and        culture in retail banks.

                                                         approach rather than embracing a              leadership and stepping up and actually
            What Regulators                              customer-focused perspective; assigning       saying this can be a positive thing for your
            say about Retail                             insufficient resources to the Examination;    firm as opposed to just a compliance thing
            Banks                                        or offering initial compensation proposals    which in a sense is constricting.” Jonathan
            As the retail banking sector continues to    that fell well short of our expectations.”    Davidson, Executive Director of
            access and amend its cultural and            Derville Rowland, Head of Financial           Supervision, Financial Conduct Authority.
                                                         Conduct, CBI.
            decision-making shortcomings, there are
                                                                                                       It is recognised that banks struggle to
            opportunities for credit unions to
                                                         These words provides evidence of cultural     change their culture as historically they
            consolidate ongoing success in member
                                                         shortcomings in the banking sector.           failed to tackle behavioural change.
            experience. The regulators recognise the
                                                         However, this realisation has led to          Training for this type of change is not a
            challenge.
                                                         change. Banks are becoming more               linear process and needs continuous
                                                         competitive in the space of customer          touch points to review, practice and
            “During the course of the Central Bank’s     experience, a realisation that when           reassert desired behaviour. People change
            Tracker Mortgage Examination, we             applied early in the change process allows    their behaviour gradually and on an
            detected a number of cultural indicators     for a greater return beyond immediate         individual basis, so credit union support
            that were standing in the way of fair        customer satisfaction.                        should recognise the requirement for
            consumer outcomes. For example, we                                                         continued investment in training to
            found banks adopting a narrowly legalistic   “The Senior Manager part is about             achieve results.

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           Why is Culture important?
           Culture is of course complex and is woven         communication and decision-making the             introduction of ethical requirements post
           into the formal and informal decisions that       culture and values of their organisations.        financial crisis. Culture audits and MCC
           we make. In one form or another, most                Culture and leadership are inextricably        Culture requirements are terms that will
           business strategic and operational                linked. Culture has so often had a positive       become familiar in the coming years.
           decisions can be traced to the culture of         impact at local level within the credit union
           the boardroom. Leadership and decision-           movement as strong values and ethos
           making are then at the hub of behaviour           provided for our members’ needs.
           and culture in any organisation. That is          Opportunities exist to use culture effectively
           why, with reflection and lessons learned           in achieving performance for your credit
           from the global financial crisis, culture is       union. There is a direct relationship
           emerging as a hot topic with regulators.          between the leadership function of
              Regulators are increasingly moving             management, Boards and committees to
           toward an approach that accounts for both         credit union and culture. Effective
           culpability, responsibility and accountability.   communication at an individual and
           The CBI has indicated that regulated              organisational level enables culture to be
           entities can expect more intensive scrutiny       positively influenced for the benefit of your
           of their norms and conduct in 2019.               common bond.
           Regulators are suggesting that Boards and            Recognising the increased dialogue from
           managers are increasingly expected                both regulatory jurisdictions, it is probable
           through their individual and collective           that greater cultural awareness will be
           leadership to demonstrate through                 promoted in a manner similar to the

                                                             Structured approaches have greater               of your leaders enables sustainable
             What next?                                      success when they identify skills and            change, providing a measureable return
                                                             competencies to support and sustain              through successful performance. Training
             Culture and strategy programmes, leading        required change. Well-designed training          engagement should also be tracked
             to change, in any organisation, can often       incorporates applied skill development to        employing the MCC Register on CU Learn.
             struggle as they require new behaviours         reinforce positive behavioural change.           This tool identifies individual mandatory
             that need Board and management support.         Investment in training and the development       annual training requirements.

             Recognising that culture includes the way       straightforward Cultural Audit questions to      2. Are there more one-way broadcasts
             people interact with each other, how they       pose;                                               from leadership or grassroots
             solve problems, and how they justify            1. What’s the communication style during            conversations?
             themselves are some initial and                 decision-making?                                 3. Could any of the above be improved?

           Effective organisational culture, especially        Culture and Risk                                   training and development needs.
           one including good leadership and                 n A MCC Register is available on CU Learn         Use these opportunities to engage for
           communication, has a significant effect on           to track individual attainment of skills        cultural success in 2020 and beyond.
           job satisfaction and organisational                 and mandatory training requirements
                                                             n The Communications Department has
           performance. The CBI recently strongly
                                                               recently published a Member
           asserted that ‘leadership is a critical driver
                                                               Experience Toolkit, available for
           of culture’. One of the most important
                                                               download at creditunion.ie
           attributes of effective Boards as leaders is      n CU L&D offers a range of training for
           the capacity to develop and communicate             Induction, the Board, Governance and
           an appropriate risk appetite.                       Leadership. The suite of leadership-
              The Irish League of Credit Unions (ILCU)         focused courses, with a renewed focus
           provides a number of resources to assist            on applied communication and culture,
           with the challenges identified. These                will be available in 2020.
           include;                                          n The CU CPD scheme provides support
           n The CUCC schedule of regional                     to your credit union officers. Consider
              workshops where themes include                   enrolling them to provide for their

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      THE IMPORTANCE OF

      CULTURE
      IN THE CREDIT UNION
      IT AIN’T WHAT YOU DO IT’S                      HOW WOULD YOU DESCRIBE                        policies and procedures to follow. They
                                                                                                   should live the values and lead by
      THE WAY THAT YOU DO IT                         THE CULTURE IN YOUR
                                                                                                   example.
      (AND THAT’S WHAT GETS                          CREDIT UNION?                                   Two areas the Board should review
      RESULTS!)                                      Culture within Operations                     when assessing its culture are:
                                                     Culture within the operations of a credit
                                                                                                   n The Chair
      Culture has been given much more
      prominence since the global financial           union will impact the majority of staff and
                                                     volunteers. All credit unions have a            Most Chairs will require an element of
      crisis and is now treated as a key
                                                     culture. whether they choose to or not,         training based on their previous
      regulatory priority. It is widely accepted
                                                     however they can influence what culture          experience. Good practice will
      that cultural failings in the banking sector
                                                     they would like to have.                        recognise skill gaps identified through
      were a significant contributory factor to
                                                       Operational Best Practices to consider        the credit unions annual Training
      the economic crisis. It was discovered
                                                     include:                                        Needs Analysis (TNA). They should
      that whilst rules may have been followed,
                                                     n Do members, staff and volunteers feel
                                                                                                     play a key role in ensuring the
      wrong decisions were made.
                                                                                                     diversity of the Board and encourage
                                                       safe to raise concerns within your            different views and opinions, including
      WHAT IS CULTURE AND                              credit union, within the normal line          those of different backgrounds,
      MORE IMPORTANTLY, WHAT                           management process, without                   experience, skillsets etc.
                                                       embarrassment or fear of retaliation?
      IS THE CULTURE IN YOUR
      CREDIT UNION?
                                                       Does your credit union support a            n Avoid Groupthink
                                                       culture where the most junior of staff        The objective is to create an
      By its very definition, culture is a              can highlight or question a process or
      collection of beliefs, behaviours,                                                             environment where directors feel
                                                       procedure where appropriate? Are              comfortable challenging popular
      standards, attitudes and values of the           people open to alternate views?
                                                     n Does your credit union embed a
      people within your credit union, which in                                                      opinion, especially where an area has
      turn set the tone of the culture within                                                        not been fully explored or debated.
                                                       culture of compliance and risk? For           ‘It’s what we’ve always done’ is an
      your credit union.                               example, is compliance talked about
          The culture is shaped by multiple                                                          easy response, but should be avoided
                                                       at every team meeting and given the           at all costs and be replaced with a
      elements, for example from the                   attention it deserves?
                                                     n What is the communication structure
      environment processes and strategies, to                                                       healthy challenging discussion!
      perceptions thoughts and feelings.                                                             Directors should also be aware that
                                                       within your credit union and to               both admiration and fear can often
          It is set from top down and bottom up.       members? For example, are all
      If there is a need to review or change the                                                     drive groupthink and challenge sound
                                                       communications open and                       decision-making processes.Promote
      culture within your credit union, it can         transparent?
                                                     n What is the culture when receiving or
      take a great deal of effort from multiple                                                      diversity in thinking, start by enrolling
      people (people first have to ‘unlearn’                                                          on the new and free eLearning course
                                                       responding to complaints? For                 Equality and Diversity Essentials.
      values behaviours etc.), and they have to        example, are they seen as an
      show a desire to change.                         informative experience to improve
          However, studies have shown people           processes or identify training needs?
                                                                                                   BANKING CULTURE
      are likely to follow culture within an                                                       Studies have shown that firms are
      organisation if there is significant peer                                                     increasingly willing to acknowledge that
                                                     Board
      pressure to do so - good or bad!                                                             people are motivated and take actions for
                                                     The culture within the Board is one of the
                                                                                                   reasons other than monetary rewards. It
                                                     most critical areas of culture within the
                                                                                                   is recommended that the Board of
                                                     credit union as it sets the tone from the
                                                                                                   directors and manager of the credit union
                                                     top and is echoed from the bottom up. (It
                                                                                                   continue a practice that fosters a culture
                                                     should also be noted that Tone from the
                                                                                                   which rewards appropriate behaviour,
                                                     Top is not necessarily the spoken word or
                                                                                                   and not allow misplaced incentives to
                                                     rules made, it can often be behavioural
                                                                                                   take root.
                                                     driven and perception).
                                                                                                      A recent example of this was
                                                       The Board sets out the values that
                                                                                                   evidenced in Irish retail banks with the
                                                     should be embedded, and devises

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         findings from the Tracker Mortgage             and the manager of the credit union          Evidence of a poor culture could include:
                                                                                                    n
         Examination, conducted by the Central         need to own and embed the required
                                                                                                      High turnover of staff
                                                                                                    n
         Bank of Ireland (CBI). It identified a         culture in their credit union - and drive
                                                                                                      Increase in internal fraud
                                                                                                    n
         culture of achieving sales targets ahead      the change if required. Just because
                                                                                                      Poor member experience
                                                                                                    n
         of good consumer outcomes. To date,           rules allow an activity to take place does
                                                                                                      Miss-selling of products
                                                                                                    n
         lenders have paid over €580 million in        not mean morally it is the right thing to
                                                                                                      Increase in number of complaints
                                                                                                    n
         redress and compensation to affected          happen. Processes and controls will not
         customers, with a cost to the banks of                                                       Reputational damage
                                                                                                    n
                                                       secure a good regulatory outcome,
         over €1 billion.                                                                             Higher loan book arrears
                                                                                                    n
                                                       unless the right cultural mindsets and
            The CBI also released a report in July                                                    Fines or sanctions from regulators
                                                                                                    n
                                                       behaviours are embedded throughout the
         2008 entitled Behaviour and Culture in        credit union.                                  Greater challenges in volunteer
         Irish Retail Banks in which it                  Complying with rules is not enough,          recruitment
         recommends the embedding of a                 the credit union should embrace the          n Low morale
         ‘consumer-focused organisational              spirit of the rule or regulation.
         culture’. The recommendation was that                                                      And of course, all the above has an
         banks are to put the customer at the          HEALTHY CULTURE                              impact on the bottom line of a credit
         centre of every decision they make, and       The Financial Conduct Authority’s            union.
         this should influence future strategies.       message on culture is: ‘We cannot
            Of course, credit unions have been         specify the culture a firm should have,      CHANGING CULTURE
         doing this for years and already have a
                                                       but what we can do is help firms to          For a credit union to change its culture it
         distinct advantage with the unique
                                                       identify what is a healthy culture, and      has to identify where it is at right now,
         relationship they hold with their
                                                       how to get there.’                           and where it wants to be.
         members. This was evidenced only
                                                                                                       An action plan can then be put in
         recently by the winning of the CXi Awards
                                                       The benefits of a credit union having a       place to bridge the gaps and training
         for an unprecedented fifth year in a row.
                                                       healthy culture include:                     programmes implemented to help
         Recent changes by retail banks to
         improve customer experiences reflects a        n Fair and ethical decision-making           emphasise and enforce the desired
         change in their priorities, now is the time     processes which are customer               behaviours, beliefs and attitude the credit
         for credit unions to look for continuous        centric                                    union would like to adopt. Support
         improvement.                                  n Improved reputation                        change through sustainable policies
                                                       n Enhanced professionalism and               developed in consultation with the Guide
         CULTURE V GOVERNANCE                            integrity                                  for Developing Policies available on CU
         The Financial Stability Board states:         n Effective controls                         Learn.
         ‘firm’s culture can defeat its formal         n Strong oversight                              A healthy culture within your credit
         governance.’                                  n Flexibility to adapt to challenging        union will ensure that you enhance
             Culture cannot be changed by simply         situations                                 relationships and maintain the trust of
         introducing rules. The Board of Directors     n Improved efficiency                         your members in the future.

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          HOME LOANS CUSO –
          INAUGURAL ANNUAL MEETING OF
          PARTICIPATING CREDIT UNIONS
          On Wednesday 16th October 2019, the Home Loans CUSO held
          the Inaugural Annual Meeting of Participating Credit Unions
          (PCUs) in the Midlands Park Hotel, Portlaoise.

          The PCUs were represented by
          directors, CEOs and senior
          management. The meeting was
          chaired by the Independent Chair of
          the Mortgage Product Forum (MPF),
          Billy Andrews. The agenda for the
          meeting generated interesting
          discussion. The below topics were the
          key focus points.

          1) Service Performance
             Paul Farrell, Mortgage Hub, gave an
             operational and financial
             performance update on credit union
             recruitment and home loan activity
             by the PCUs.

             Frank Doherty, Mortgage Hub,
             presented a summary of the
             Operations and Service Assurance
                                                           Green pins reflect 17 credit unions live on the
             Review Report completed by the
                                                                      service, with assets of €2.2 billion
             Risk & Advisory Consulting Services
             of the Accountancy Firm BDO.
                                                           OranGe pins reflect 12 credit unions signed up
                                                            for the service (but not yet live) with assets of
             Billy Andrews, Chair of the MPF, set                                                 €1.5 billion
             out and explained the key Business,
             Strategic and Financial Priorities for
             2020.
                                                      CP125 – Consultation on Potential Changes to the Lending
          2) Outsourced Service Provider
                                                      Framework for Credit Unions
             Mark Hyland, Link Asset Services
             (Link), outlined how the service is      The Credit Union News, Issue 11 - September 2019 published by the Central Bank of
             working to date and highlighted the      Ireland (CBI), explains how the proposed changes to the lending framework (CP125)
             core steps that they support within      are intended to support diversification in credit union loan portfolios. They would do
             the service.                             so by allowing those credit unions with sufficient financial strength, competence and
                                                      capability to undertake additional home mortgage and commercial lending while
          3) Mortgage Market & Trends                 effectively managing duration and concentration risk.
             Michael Dowling, Dowling Financial,      Among the proposals, the CBI proposed the removal of the existing lending maturity
             presented on the mortgage market         limits and the introduction of concentration limits, on a tiered basis, for house loans
             perspective and outlook for 2020.        and commercial loans expressed as a percentage of total assets.
                                                      The regulations are expected to commence following an appropriate transitional
          4) Regulatory Expectations                  period. Should your credit union take the decision to engage in mortgage lending and
             Bill Hobbs, Central Bank of Ireland,     avail of the proposed concentration limits
             updated the PCUs and spoke about         arising from CP125, please don’t hesitate Mortgage Hub Contact Details:
             key areas for credit unions to           to contact the Mortgage Hub for                Phone: 01 614 6973
             prioritise when considering              information on the Home Loans CUSO
                                                                                                     Mail: mortgagehub@creditunion.ie
             mortgage lending.                        Service.

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                                ommences!
                        Battle C
                 2020 SCHOOLS      QUIZ
             School children around the country are        Communications, Paul Bailey said:           About the All-Ireland Schools’ Quiz
             getting ready to do battle as the Credit      “We’re putting the war cry out for          The quiz is divided into two sections;
             Union Schools Quiz returns for 2020.          children and schools to do battle in this   Competition A for children up to 11
             Credit unions on the island of Ireland are    year’s quiz. It’s a fantastic opportunity   years and Competition B for children
             encouraging schools in their local            for schools to nurture a culture of         between 11 and 13 years. The winning
             communities to get fighting fit and claim     partnership among students, and we          teams at the national finals will receive
             victory in the 29th annual Quiz. As usual,    would really encourage all schools to get   €1,250 per school, with the runner up
             the Quiz will culminate in a fiercely         registered for the 2020 event. A core       teams in each category receiving €750
             fought national final at the RDS, Dublin in   focus of this event for children to gain    for their schools, adding up to a
             April 2020.                                   experience at teamwork to help equip        fantastic prize fund of €4,000. Local
                This year’s theme is ‘Let the Battle       them with the skills necessary for          and regional winners will also receive a
             Commence’. A photoshoot to officially          successful teamwork in the future.”         range of prizes.
             launch the Quiz took place with Dublin’s         Last year, the winning schools were      n Local quiz winners go through to the
             Viking Splash on Grand Canal Docks in         Quay National School, Ballina, Co Mayo          regional final, and the regional
             late October.                                 in the under 11 years category. St              winners and runners-up will compete
                Each year around 25,000                    Cronan’s Boys National School, Bray, Co         for the national titles in April 2020.
             schoolchildren take part in the Quiz.         Wicklow claimed victory in the 11-13        n Local winners will receive prizes from
             The Quiz begins with a knock-out stage        years category. The runner-up teams             their local organising credit union.
             at local level which takes place in late      were Dromclough National School,            n Regional winners will also receive
             January or early February. The winning        Listowel, Co Kerry in the under 11 years        prizes and their schools will receive
             teams then progress to the regional           category. St Joseph’s National School,          cheques or a cash prize.
             knockout stage in late February or early      Skibbereen Co Cork and St Colmcille’s       n The national winners and runners-up
             March.                                        National School, Mullingar, Co                  receive a silver salver, significant
                The winning teams from the regional        Westmeath were joint runners-up in the          personal prizes for each team, and
             stage will then make it through to the        older age category.                             their schools are each awarded a
             Grand Final in April 2020. Here they will        Registration for the 2020 Schools            substantial cheque.
             be pitted in a nerve-wracking battle of       Quiz is now open. Children interested in    n Every team competing receives a
             the wits against a number of other            taking part can also log on to                  special certificate marking their
             formidable teams of four. Today FM DJ,        www.creditunion.ie and                          achievement.
             Fergal D’Arcy, who was a huge hit at last     brush up on their
             year’s final, returns as Quizmaster this       knowledge via an
             year.                                         online,
                Speaking about the Quiz, Irish League      interactive
             of Credit Unions (ILCU) Head of               quiz.

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