THE 1950S were a grim time in Ireland. Unemployment, poor housing and malnutrition were the order of the day. Bank loans were the preserve of well-to-do professionals, leaving working-class people at the mercy of unscrupulous loan sharks.

Until, that is, the credit union movement appeared on the scene 50 years ago, and communities began setting up co-operative institutions that enabled them to save together and lend to each other at a fair rate of interest.

The Irish credit union movement was the brainchild of three pioneering individuals - Nora Herlihy, Seán Forde and Séamus MacEoin.

Recognising that many of the social ills of the day were caused by the scarce availability and poor management of money, they identified the credit union model as a system that would allow people to gain more control over their finances.

The longest-established credit union in Ireland is the Donore branch in Dublin 8, which was officially registered as a friendly society in August 1958. Two people who were pivotal in its foundation were sisters Aingil and Eileen Ní Bhrion.

Aingil recalls attending a seminar at Red Island holiday camp in Skerries in 1957 with Eileen. Hearing Nora Herlihy speak at the seminar inspired in both of them a keen interest in credit unions. Upon returning home, they adopted the method of "fireside chats" to spread the word in their neighbourhood, explaining the benefits of credit unions to people in their own home.

People took to the idea "like a duck to water", she says, because there was a great need for it at the time.

Aingil was the first secretary of Donore Credit Union, and remembers that setting up the branch was exhausting.

"For a period of time, it nearly seemed as if we weren't going to succeed. There were so many obstacles in the way, but we had a great bunch of people," she recalls. "We just kept at it and at it. It was absolutely all-consuming for the first while."

In the early days, the branch was entirely voluntary.

"The real person who's due the credit is Eileen," Aingil says, who remembers her sister researching credit unions "night and day".

The branch gradually built up its membership and word began to spread of its success. Soon people were coming from other parts of the State to find out how they did it, and the idea snowballed.

Fifty years on, and the credit union movement has not only stood the test of time, but has grown to become one of the State's largest financial services providers. There are now almost three million credit union members in Ireland with €13.1 million in savings, and the Irish League of Credit Unions represents the interests of 525 credit unions.

"Every time I see a credit union in a small parish or village or town around the country, it gives me a great lift," Aingil says.

As for Donore Credit Union, it has grown its membership from 94 members in 1958 to 4,653 today and, over the past 50 years, member savings have grown to €27 million.

Aingil still drops in regularly, and is impressed by the personal service provided, and the fact that staff members know most customers' names.

She is also proud that Donore Credit Union is commemorating its 50th anniversary with the charitable gesture of donating a cow to Bóthar.