CREDIT UNIONS across the country are to offer electronic payment services to their members as part of the biggest change to the movement in decades.
Delegates approved plans for the new payment service at the Irish League of Credit Unions agm held at the University of Limerick over the weekend.
The establishment of a Credit Union Services Organisation (CUSO) was one of the key issues discussed at the meeting attended by 1,500 delegates representing 505 credit unions.
League president Mark Bailey said the CUSO would answer calls from members and non-members for such services as electronic debit transfers, electronic credit transfers and debit cards.
“It will give credit unions the opportunity to attract additional members and provide ethical financial services to those who may have been alienated from banking services due to the current financial crisis,” he said.
League chief executive Kieron Brennan said the need to establish new payment options was required by customers who have lost faith in other financial institutions.
“Members . . . are saying they have lost faith in other financial institutions and the level of trust they have in credit unions is at an all-time high. They would like to have more access to a bigger range of financial services through our credit unions. And I’m very happy that credit unions stepped up to the plate and made the decision to do that,” he said.
The CUSO will allow credit union members to send and receive payments electronically to other credit union and bank accounts. Currently, fewer than 10 per cent of credit unions have the ability to undertake electronic fund transfers and only 5 per cent can provide debit cards.
In his address to the meeting at the weekend, Mr Bailey asked for commitment to change from the group’s members. He said they had to address the changing needs of their customers who choose to use the internet to access their money.
“The 16-25 age group demand easy access to their money and to gain that, they want to be able to use technology to interact with their chosen financial institution. They are not choosing us because we have failed to provide what they need. Now is the time to act to rectify this failing,” he said.
The meeting also heard that the preferred payment method of credit unions – cheques – would soon be phased out.
“For a movement that has no viable alternative in place, cheques are coming dangerously close to the end of their shelf life. It is now intended that cheques will be phased out in 2016 in the Republic of Ireland and 2018 in the UK,” Mr Bailey said.
“We have a duty to put this movement in a position to offer next-generation products to current and future generations of membership,” he added.
The league will now invite 155 credit unions to participate in the development of the CUSO.
It is hoped that the electronic fund transfer services will be available to credit union members in the Republic of Ireland by December 2012 and by July 2013 in Northern Ireland.
