Online hope for credit unions

Thursday, August 08, 2013

By Vincent Ryan
Business Reporter

A survey of credit union members has found that there is a strong appetite among them for extended electronic and online offerings so that they can compete against the traditional banks.

The survey found that credit unions remained popular, mainly due to their community ethos and it is because of this that there was a demand for extended services from them.

The CEO of the Irish League of Credit Unions, Kieron Brennan, said the results showed that the movement remained relevant and has a role to play in Ireland’s future.

“The results are heartening for all involved in our movement. Despite the challenges of the financial services sector in general, credit unions remain popular and trusted, with convenience and community ethos being key drivers of this view.

“This is in stark contrast to the public perception of banks. In addition, it is worth noting that over two thirds of respondents in the Republic of Ireland agreed that credit unions can play an important role in economic recovery,” he said.

The survey of 800 adults found that more than half of respondents said that they were active members of a credit union.

When asked why they joined a credit union, 26% said they did so because it was easier to get a loan, 25% said their parents set up an account for them, 17% said that they like the way you can save at the credit union, 15% said that credit union offers a safe way to manage finances.

The survey revealed that the credit union movement remains a major source of finance, particularly in the car loan and personal loan categories.

In both the personal loan and car-loan markets, credit unions remain the dominant player with a market penetration of 51% in personal loans and of 49% in car loans.

The survey also found that three times as many people were willing to recommend the credit union to friends than would recommend either of the pillar banks, Bank of Ireland and AIB.

Mr Brennan said that he was hopeful that the movement will continue to grow in the future.

“There are many changes ahead for credit unions and we hope that in the coming years this successful movement will continue to grow while we expand our range of products and services to our valued members across the country,” he said.