Credit unions threaten banks

CREDIT Unions will benefit from customer disillusionment with the main commercial banks, the chief executive of the Irish League of Credit Unions, Liam O’Dwyer claimed yesterday.

He said this disillusionment is likely to encourage more people to conduct a greater amount of their financial business with credit unions. Recent stinging criticism of the main banks by the Director of Consumer Affairs should provide people with “food for thought”, he added.

“Bank customers have a clear choice. They can either stick with banks that pay mere lip service to the concept of a fair deal for customers, or they can seek loans, and place their savings, with credit unions that are there specifically to cater for the needs of their co-owning members,” he said.

Mr O’Dwyer said credit unions were now about more than just savings and loans.

“Many have expanded their operations. With the notable exception of mortgages [only provided by a small number], most credit unions can now boast a range of financial products that compare more than favourably with banks,” he added.

He said the commercial banks, in their relentless pursuit of profit, would never be able to match the quality of the “personalised credit union service available weekdays, evenings, Saturdays and Sundays”.

The challenge, he said, was to inform members of the value what is on offer in comparison to the banks. He said bank branch closures in recent years had worsened Ireland’s record of citizens’ access to financial services with figures showing Ireland has only about half the EU average of branches per 1m inhabitants.