Credit unions hold €18.7bn in member savings. They want greater role in investment accounts

The new investment accounts will be introduced on July 1 and credit unions says their 'trust' from communities should see them with a larger role

Credit Union Development Association chief executive Helen Carbery. The Credit Union Development Association (CUDA) says the sector needs to be "front and centre" when the new investment accounts are rolled out next year.

The Credit Union Development Association (CUDA) says the sector needs to be "front and centre" when the new investment accounts are rolled out next year.

Finance minister and Tánaiste Simon Harris confirmed in the Budget earlier this month that the new investment accounts will be introduced on July 1 and will be available through financial firms including banks, investment managers, fund managers, and certain trading platforms.  

Some of the investment options available through the new accounts will include shares, exchange-traded funds, and bonds. CUDA chief executive Helen Carbery said credit unions are well placed to advise members if investing is appropriate for them.

"Credit unions understand their members. They already help people make decisions about savings, borrowing, mortgages and their wider financial wellbeing. That makes them a natural partner in helping people understand whether an investment account is right for them and whether their next euro should be invested, retained as emergency savings, used to reduce debt or directed towards their pension," said Ms Carbery.

Ireland has 184 registered credit unions, with €18.7bn in member savings and €7.7bn in lending. Credit unions engaged with CUDA account for €12.4bn of the sector’s €22.5 billion in assets.

CUDA says credit unions could, "where appropriate", partner with regulated financial-services providers to offer the new investment accounts. 

"If the objective of the Irish Investment Account is to encourage more ordinary people to consider investing, then credit unions need to be front and centre in how it is delivered. Credit unions have something uniquely valuable to bring to this initiative."

Mr Harris said in the Budget that the investment accounts will sit alongside the national financial literacy strategy, to help people to develop the knowledge and confidence to make informed decisions about saving and investing. The Competition and Consumer Protection Commission has already launched an Investment Readiness Tool, which is a series of questions for citizens considering investing in the new scheme. The tool tries to give potential investors a picture of how suitable they are financially set to invest, and the potential pitfalls involved.  

"The Government has designed an investment account intended to make investing simpler and more accessible. The next challenge is getting it into the hands of people who may never previously have considered investing," said Ms Carbery.

Ms Carbery said credit unions are a financial network "built around trust. For many consumers, particularly those who have never invested before, moving money from savings into investments is a significant financial decision. They are going to need more than a new product. They need somewhere they trust to have that conversation."