Credit union loans through Facebook

Up to 20% of loan applications in some credit unions are now coming through Facebook, a body representing the sector has said.

The Solution Centre in Dublin, which is managed by the Credit Union Development Association, said business with younger customers had “increased 10-fold” since it began introducing digital loan services.

Credit unions involved in the Solution Centre include Tullamore in Offaly, St Anthony’s and Claddagh in Galway, Dundrum in Dublin, as well as St Canice’s in Kilkenny, which is the biggest community credit union in the country.

The association said Facebook was now accounting for up to 15% to 20% in loan enquiries per month for some credit unions, and that close to half of those applying within social media to take out a loan had never borrowed from a credit union before.

Credit unions participating in the digital loan marketing programme have seen loan growth of 15% to 20% in a relatively short space of time, it said.

The Facebook Loan process involves a 30-second enquiry online, followed by callbacks from lending officers to explain terms and conditions. More credit unions are getting onboard following a pilot phase, said the association.

Chief executive Kevin Johnson said: “The drive behind our move into the fintech space was bolstered by findings of a nationwide survey we commissioned recently, of 1,000 people throughout the country, 57% of which said that, if given the choice, they would prefer to apply for access to credit with a lending institution using an online channel such as Facebook, rather than attending the branch and meeting with a bank or credit union employee.”