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Published by theirishleagueofcreditunions, 2016-09-23 10:36:00

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The magazine of the Irish League of Credit Unions – Autumn 2016

WOCCU CONFERENCE
COMES TO BELFAST

It Makes Rio Fever at Focus On -
Sense Skibbereen Dromara &
Loan Credit Drumgooland
Scheme Union Credit Union



To claim your one hour CPD for CU Focus, you now need to complete the CU Focus Quiz on
www.culearn.ie. The Quiz is located in the CU CPD members' area.

Editorial

Being True to Ourselves

04 08 When two members of Muintir Skibbereen Credit Union rowed to
26 34 Silver in Rio the whole island of Ireland rejoiced in Paul and Gary
O’Donovan’s achievement. Since then Gary has added Gold at the
04 WOCCU Conference comes to Belfast World Championships.
08 Rio fever in Skibbereen Credit Union
10 Make smart lending choices Behind the refreshing humility of these young Irishmen we
11 Successful WYCUP winners discern a steely desire to succeed on the world stage. What mental
12 Focus on Dromara & Drumgooland strength, skill, power and determination it took and they did it
16 Parliamentarian Event at WOCCU without one shred of pretentiousness, - they remained themselves.
18 PMC National Rollout Their confidence in their own identity and in their roots in Lisheen
20 St. Francis Credit Union serving the community for 50 years was inspiring.
22 CUSOP Update
24 Foundation Volunteer Programme As a modern ideal for achieving excellence perhaps the
26 CUCC Annual Conference O’Donovan’s symbolise what we can achieve whilst being proud
28 ILCU HR Survey of our local identity and respecting our roots. Paul and Gary proved
30 Co-operative Learning it’s not necessary to compromise one’s identity or one’s principles
32 Interview with Máirtín Ó Muilleoir to achieve excellence; that with hard work and determination at
34 Your Stories the heart of a community one can aspire to be the best. Could it
39 International Credit Union Day be the O’Donovan’s example has resonance for our movement as
40 Legislative Update we consider fundamental strategic change to bring us to world
42 Economic Commentary standards?

During July Credit Union people from around the globe gathered
in Belfast for the WOCCU Annual Conference. This successful
event showed Ireland and our credit unions in a very positive light.
We also learned much from our international colleagues, some of
whom believe that despite our considerable challenges that we are
doing many things well.

Perhaps our real challenge is to strive for best international
standards whilst keeping one foot firmly rooted in the heartland of
our local communities.

Nota Buiochas: Our Editorial team are indebted to Kevin Helferty
who recently stepped aside from his duties. Kevin made an
immense intellectual contribution to CU Focus during his tenure
and we are all the richer for this, thank you Kevin.

Congratulations to the winner of our last CU Focus competition, Brid
Foster from Oldpark Credit Union, Belfast. We hope you enjoy your 2
night stay in Bloomfield House Hotel Brid.

Cover image: CONTRIBUTIONS
Brian McCrory &
Brian Branch Letters to the Editor /
welcome the contributions may be
WOCCU submitted via email to
Conference to [email protected].
Belfast.

Editorial Committee: Nick Cashin, William Breen & Gerry Thompson. Volume 3 Issue 12 ©.
ILCU ISSN 1649-377X. League Board: Brian McCrory, President; Charles Murphy, Vice President; John Mullen, Treasurer; Ciaran Bishop, Nick Cashin, Pat Fay, Margaret Heffernan, Seamus Kilgannon,
Blanche Ronayne, Eamonn Sharkey, Martin Sisk, Gerry Thompson, Jim Toner Supervisory Committee: Martin Dolan, Michael Doyle, Terry Redmond Life Director: John Hume

Design & Print: Outburst Design. Please Note: The deadline for the next issue of CU Focus is Deadline 18th November 2016. Please mark for the attention of the editor, CU Focus Communications Department.
The views expressed in this issue of the CU Focus are not necessarily the views of the Irish League of Credit Unions. Advertising: The placement of an advert does not imply endorsement of the product or
service advertised, either by the magazine or its publisher. The CU Focus will not knowingly carry false or misleading advertising. Articles The CU Focus would like to hear your news and views. Send in any
newsworthy stories or photos. The CU Focus tries to publish all appropriate information submitted, but may be precluded by space constraints.
Published By Irish League of Credit Unions 33 – 41 Lower Mount Street Dublin 2 Tel: 353 (0)1 614 6700 Fax: 353 (0)1 614 6701 Email: [email protected] Website: www.creditunion.ie

CU FOCUS AUTUMN 2016 :: 03

WOCCU

WORLD CREDIT UNION CONFERENCE
COMES TO BELFAST

In July of this year, Belfast played host to
thousands of visitors from all over the world,
who descended on the city for the annual global
conference of the World Council of Credit
Unions (WOCCU), where credit union leaders
joined forces to educate one another, network,
and see first-hand the success of the credit
union movement in Ireland.

Throughout the four-day conference, key
politicians from Northern Ireland and the
Republic of Ireland took to the stage and gave
their renewed support for the vital work of the
credit union movement. Key note speeches
from Ian Goldin, Head of the Oxford Martin
Business School and Theresa Payton, former
Head of Cyber Security for the White House
were followed by wide-ranging and thought
provoking breakout sessions.

Opening Ceremony
Belfast’s Waterfront Hall held a captivated
audience for the opening ceremony, which
took place on Sunday 17th July. Starting with
the traditional Flag Ceremony, representing the
nations from all over the world who had
travelled to take part in the conference,
delegates and guests were treated to an
unmissable celtic performance of Irish
dancers, traditional Irish drummers and a
bodhrán player, followed by singing from the
Belfast Community Choir.

Welcoming delegates to the city and opening
the conference, a number of speakers took to
the stage, including the ILCU’s President,
Brian McCrory, who was exceptionally proud to
welcome the WOCCU Conference to his
hometown. Speaking at the ceremony, he told
delegates:

“Our credit unions are integral to the
communities we come from. In a changing
world, where banking and politics have failed
people who put their trust in them, credit
unions have never failed the members who
have joined them. Almost sixty years ago when
the credit union movement was founded in
Ireland, our small isolated economy was
characterised by a lack of money. Today in a
world of globalisation and quantitative easing,
the world is awash with money. But what is
lacking is trust. There is untold wealth and
untapped opportunity, but there is too little
trust, that opportunity can be accessed equally
by all.

“Credit unions do not have all the answers to
the world’s problems of injustice and of

Brian McCrory addresses delegates at the Opening Ceremony
040:4: C::UCFUOFCOUCSUSSUAMUMTEURM2N0126016

inequality. But we are part of the solution. ILCU President Brian McCrory on stage with NI Deputy First Minister Martin McGuinness and
Before any one specific issue can be WOCCU President Brian Branch
reckoned with, one single issue underpins
them all, which is trust. Credit unions stand Belfast Community Choir on stage at the Opening Ceremony
for trust, not as a slogan that is marketed but
as an ethos that is lived. In Belfast, this city MEP Marian Harkin with MP Mark Durkan and host Nick Garbutt for the Advocacy Panel
which was marked historically by bitter discussion at the Opening Ceremony
division and torn between divided
communities, we know the value of trust. CU FCOUCFUOSCAUUSTSUPMRNIN2G012601:6: 0::505
We reaped that lack of trust in untold
tragedy. Today we count our good fortune in
the slow, rebuilding, of what was so long and
so tragically absent. This is the treasure we
count, and peace is the dividend it comes
in.”

Foyle MP Mark Durkan praised the work
of the movement in a live panel discussion
with MEP Marian Harkin on stage at the
conference opening ceremony in the
Waterfront Hall on Sunday 17th July.
Speaking ahead of panel discussion,
Finance Minister Máirtín Ó Muilleoir
addressed the crowd, speaking of the pride
he has in the credit union movement, and
his desire to support the movement’s growth.
See our interview with the Finance Minister
on Pages 32/33 to learn more about his
vision for credit unions.

Keynote Speakers
During Monday's general session,
Director of the Oxford Martin
School and Professor of
Globalisation and Development at
the University of Oxford, Ian
Goldin, presented a range of
fascinating statistics on the future
direction of our world, and how
individuals and societies need to
be smart and well organised to
emerge as “winners” in a new
renaissance.

"Today is the slowest day you’ll
know for the rest of your life," said
Goldin. "The pace of change is revolutionary;
our tools are evolutionary." Based on
Goldin’s research, he provided insights into
the future direction of society including
demographic trends, availability of data and
the power of the individual.

He painted a strong picture on the
growing level of available data and in turn
the growing power of the individual.
“Individuals have power beyond nation
states. Within our own institutions the power
of individuals to create mayhem has grown.
With this power it brings an opportunity as
an engine of creativity is being switched on
all over the world, as data and connectivity
opens up much more for the future.”

Tuesday saw Martin McGuinness, Deputy
First Minister of Northern Ireland, address
delegates, sharing his experiences of the
Irish peace process with attendees and how

WOCCU

Closing Ceremony Venue at the Titanic Exhibition Centre

ILCU Board and WOCCU Board dinner at the Culloden Hotel Brian Kennedy performing at the Closing Ceremony

co-operation was a key factor to Theresa Payton, the first woman to serve 78% is tricking the user” which requires
the success of the Irish peace as White House Chief Information Officer greater education and awareness to
process. overseeing IT operations for the President combat.
and his staff from 2006 to 2008, presented
Brian McCrory, ILCU President and 2nd to credit union attendees during the final Wednesday's session also celebrated the
Vice Chair of World Council of Credit general session of the 2016 World Credit 2016 World Council Young Credit Union
Unions' Board of Directors led the Union Conference on Wednesday 20th People (WYCUP) scholarship, where two
discussion joined by Brian Branch, July. Irish winners were recognised. See Page
President and CEO of World Council of 11 for full details on Pauline and Melanie’s
Credit Unions. The ILCU President and the "A breach is inevitable but how we achievement.
Deputy First Minister both reminded the respond as a victim is not," said Payton.
audience of how far Belfast has come "Every 90 seconds a new deviant of Closing Ceremony
since the troubles in the North of Ireland, malware is found in the wild". Wrapping up the conference on
and how credit unions played a vital role in Wednesday evening, delegates and guests
helping to assist those in poverty in Derry Credit unions need to recognise the size were treated to an array of show-stopping
during the troubles at the time. of threats that are out there and be able to acrobatic performances from Belfast Circus
respond appropriately. Payton suggested School, who entertained people on arrival
In closing Martin McGuinness said: credit unions need to tackle security as a at the Titanic Exhibition Centre, which had
“I commend the credit union movement team as hackers are more threatening than been transformed for an unforgettable
for the impact it has made and continues a nuclear attack, and you cannot spend night. Stilt walkers, magicians, flame
to make locally, nationally and your way out of an attack or breach. throwers and acrobats all took their turn to
internationally. I congratulate the World enthral the audience with impressive skills
Credit Union Conference on your Payton advised attendees of the and stunts. Headlining the closing
commitment to this practical movement, importance of discussing cyber threats on celebrations was Belfast’s renowned singer
which continues to support and sustain a regular basis and at least quarterly within and songwriter, Brian Kennedy.
communities throughout the world." your credit union as over “95% of
breaches are by human error, of which

06 :: CU FOCUS AUTUMN 2016

WOCCU insight: Credit Union visits

As part of the WOCCU Conference, and in
conjunction with local ILCU affiliated credit
unions, delegates were offered the opportunity of
visiting a Northern Irish Credit Union, to see first-
hand the strength of the movement and meet
with staff, volunteers and members to learn
about the operations and achievements of those
credit unions. Six credit unions in total hosted
visitors on Wednesday 20th July:
• Ballyhackamore Credit Union, Belfast
• Ballynahinch Credit Union
• BTCU Credit Union, Belfast
• Portaferry Credit Union
• SAG Credit Union, Belfast
• Willowfield Credit Union, Belfast

Janet Booker, Manager of Ballyhackamore
Credit Union, gave an overview of their visit:

“Ballyhackamore Credit Union Ltd was
delighted to host a visit by 20 WOCCU delegates
who came from Kenya, Jamaica, Ghana,
Romania, Belize, Trinidad and the USA. Our
visitors were greeted on arrival with a
performance by four Irish dancers from a local
dance school, and were then welcomed into the
credit union by the Directors and Manager. They
spent some time taking in our front office and
were intrigued by everything they saw, including
our notice boards and TV screen presentations in
the foyer, which gave them a flavour of the work
done in Ballyhackamore. Many photographs
were taken!

“They were then invited to the boardroom
where they enjoyed some local food,
accompanied by Guinness, wine, or cider (or
water!) followed by tea/coffee and biscuits.
Traditional music played in the background,
though it was hard to hear over the chatting!

“They were then given a presentation on our
history, the challenges we face, and successes
we have achieved and celebrated. This
encouraged great conversation and discussion in
the group and was very eye-opening for all of us,
as we learned about similarities and indeed
differences in how credit unions operate in
different countries. Business cards were
exchanged as were promises of correspondence
and indeed we are already in contact with some
of our visitors!

“Our friends were given “goody bags” with
locally sourced products and Ballyhackamore CU
souvenirs, before meeting the staff and signing
the visitors book as they left. The feedback we
have received from those who have since been in
touch has been really positive and hopefully
communication will continue in the future, and
we can learn from and hopefully also assist some
of these credit unions through mutual exchanges
of information.”

CU FOCUS AUTUMN 2016 :: 07

Rio Fever

at Skibbereen Credit Union

Background Gary and Paul O'Donovan with Skibbereen Credit Union Chairman John O’Neill
Skibbereen Credit Union has been a
long-time supporter of Skibbereen Crowds gathered in Skibbereen Credit Union to watch the Cork brothers bring home silver
Rowing Club. The club is the most medals
successful in Ireland, holding the most
All-Ireland Championships as well as
training five Olympic rowers in the past
16 years. Over the past 18 months the
credit union have supported Gary and
Paul O'Donovan on their road to Rio,
sponsoring their oars and also
donations to the club. To mark this
special relationship, we wanted to
celebrate their success in making it to
Rio. “We always knew that they are
amongst the best sporting talents in
Ireland and regardless of bringing
home a medal or not we wanted to
mark the momentous occasion for two
local boys and their outstanding local
coach Dominic Casey,” said Donal
O'Driscoll, CEO of Skibereen Credit
Union.

The Final - Friday August 12th
Skibbereen Credit Union, 14:43 on
Friday the 12th of August - one minute
before the start of the men's lightweight
double sculls are given the green light
to take off at the 2016 Olympic final.
The credit union is probably the most
unlikely location one would imagine to
be hosting not one but two big screens
bringing images of our boys - Gary and
Paul O'Donovan, 9000km away in
Brazil - to the people of Skibbereen.
One screen upstairs and one screen
downstairs. There were people
everywhere from kids to workers from
the town of Skibbereen, edging away
for a few minutes to view a moment in
Irish history - there were people from all
walks of life in all corners of Skibbereen
Credit Union.

Ten seconds to the starters orders
and there is a nervous hush over the
crowds of people anxiously waiting. The
next six and a half minutes are a blur of
cheering, encouraging and shouting

08 :: CU FOCUS AUTUMN 2016

Supporters gathered at Skibbereen Credit Union to cheer on the O'Donovan brothers as they secure their place in History in Rio

followed by a pause and the silence until Staff members celebrating Gary and Paul's great achievement
the crowds were reassured by the image
on the screen displaying the tricolour in nothing on the bank. exceptional young men, focused and
the lads’ lane, indicating their The credit union continues in its dedicated to their sport. We are proud of
unbelievable silver medal position at the our long standing relationship with the
Olympic games. endeavours to support Skibbereen lads, and were delighted to sponsor a
Rowing Club, by sponsoring 500 official new set of oars for their Olympic Qualifier,
The crowd was ecstatic, people were Gary and Paul t-shirts, which are now always believing they would do well in
hugging one another, crying, staring at being sold in the credit union and online Rio."
the screens in disbelief that an Irish at www.skibbereenrowingclub.com. All
rowing crew achieved what was never money raised will go towards much “Congratulations must also go to
achieved before - Ireland's first ever needed new facilities at this great club. Skibbereen Rowing Club, they are a small
Olympic medal. The media spilled in to hard working group and this achievement
capture moments, nuggets and emotions. Donal O’Driscoll, CEO for Skibbereen is well deserved. We look forward to
Credit Union said “Everyone here at continuing our support for Gary and Paul
For the next thirty minutes Skibbereen Skibbereen Credit Union is thrilled for and all our local rowers into the future.”
Credit Union became a carnival of hugs, Gary and Paul O’Donovan. They are two
kisses and taps on the back. The media
swarmed in - television crews from RTÉ,
TV3 and TG4 were all present. Radio and
print journalists from RTÉ, 96&103FM,
The Irish Examiner, The Irish Times, The
Southern Star, The Irish Independent,
The Sun and many more were also
gathering for soundbites, with the BBC
on the telephone looking for the
Skibbereen atmosphere.

An hour later - the calm after the storm
- party poppers are collected off the floors
and people are still shell shocked after
the rollercoaster of a race. All in
Skibbereen Credit Union were exhausted
after one of the momentous days in Irish
sporting history - One can only imagine
how Gary and Paul felt after leaving

CU FOCUS AUTUMN 2016 :: 09

Report highlights confusion
for borrowers when making
lending choices

Consumers find personal loans two product attributes: the APR and the A full copy of the report can be
confusing and struggle to choose the term of the loan. These determine the downloaded from the ESRI website at
right one, according to a new ESRI monthly repayments (MR) and overall the following link:
report, An Experimental Investigation of financial cost (FC). While consumers www.esri.ie/pubs/BKMNEXT314.pdf
Personal Loan Choices. The report, may take other factors into account,
published in July 2016, showcased such as the brand of the provider and “Our experiments
findings from a study designed to gauge whether the interest rate is fixed or suggest consumers could
consumers’ understanding of variable, these are the dominant factors
terminology when it comes to borrowing, in the transaction. be vulnerable to certain
and their ability to successfully and marketing techniques,
accurately compare loan products. Findings
which are likely to tempt
About ESRI Overall, the findings have implications them towards longer
for consumer protection. They suggest loans that ultimately
The Economic and Social Research that consumers are prone to mistakes
Institute (ESRI) is Ireland’s independent when choosing among offerings in the cost more. Yet our results
source of evidence for policy. personal loans market. Furthermore, they also point to ways we
Established in 1960 (as the Economic show consumers’ choices can be can help consumers to
Research Institute), the Institute’s focus influenced by how and when information make better choices in
has been to investigate the social and is presented. this market.”
economic challenges facing Irish
Society, producing research that The experiments tested whether
contributes to understanding economic consumers’ decisions were affected by
and social change, and that informs which information was made explicit in
policy making in government. the offer. The results showed that
consumers chose to pay the loan back
The Study over a longer period when the size of
the monthly repayments was
The ‘An Experimental Investigation of highlighted than when the overall
Personal Loan Choices’ report describes financial cost was highlighted. The
experiments conducted in PRICE Lab – inconsistency sometimes equated to
a research programme in behavioural thousands of Euros over the course of a
economics jointly funded by the Central loan.
Bank of Ireland, the Commission for
Communications Regulation, the PRICE Lab also tested two policy
Commission for Energy Regulation and interventions, or “nudges”, designed to
the Competition and Consumer help consumers to make better
Protection Commission. The findings decisions in the personal loans market.
reveal that consumers find it hard to A “high cost loan” warning was found to
understand how the length of a loan reduce the chances that consumers
affects both the size of monthly opted for loans with above average
repayments and the overall amount it interest rates. Providing consumers with
costs to borrow, leading to inconsistent a specific table of example loans before
choices. they made their choices also helped
them to make more consistent
The Personal Loans Market decisions. This is the first time that
interventions have been experimentally
Initial investigations of the market for pre-tested like this in Ireland.
personal loans in Ireland, conducted by
the research team, suggested that Dr. Pete Lunn, Principal Investigator
consumers do not find this market easy of PRICE Lab, said “Our experiments
to negotiate. Prices, as measured by the suggest consumers could be vulnerable
annual interest rate (APR), are widely to certain marketing techniques, which
dispersed, although the nature of the are likely to tempt them towards longer
product does not vary essentially loans that ultimately cost more. Yet our
between providers. To a substantial results also point to ways we can help
extent, a personal loan for a given consumers to make better choices in
principal can be characterised by just this market.”

10 :: CU FOCUS AUTUMN 2016

Melanie and Pauline scoop
International Credit Union Scholarship

Tom Allen, Manager of Mullingar Credit Union Limited, Pauline Sheils, Mullingar Credit Union (4th from left) and Melanie Cleary, Dundrum Credit Union (4th from right)
WYCUP 2016 winner Pauline Sheils and Derek Smith, pictured receiving their WYCUP Awards at the World Credit Union Conference 2016. Included in the photo are three
Assistant Manager, Mullingar Credit Union Limited. other WYCUP winners, as well as WOCCU Board Directors.

Melanie Cleary, Marketing and Business Brian McCrory, President, ILCU and 2nd Vice Chair of WOCCU, Brian Branch, President & CEO, WOCCU, Daniel
Development Officer with Dundrum Credit Burns, Chair, WOCCU, Melanie Cleary, Dundrum Credit Union and Patrick Jury, 1st Vice Chair, WOCCU.
Union Ltd. and Pauline Sheils,
Administration Officer with Mullingar Unions (WOCCU) was attended by Brian McCrory, President of the Irish
Credit Union Ltd. have been selected almost 2,000 delegates representing 55 League of Credit Unions commended
amongst five winners of an international countries worldwide. Melanie and Melanie and Pauline on their success:
credit union young leader’s scholarship. Pauline participated in the WOCCU's ”This is the first occasion when we have
The scholarship is aimed at those whose Young Credit Union People Programme had two Irish winners of this programme
skills and accomplishments have already (WYCUP), an annual scholarship in the same year. Both Melanie and
made a significant impact within their programme which aims to engage and Pauline’s success is most deserved,
own credit unions and those that have the promote the next generation of credit given the incredible commitment and
greatest potential to contribute to the union leaders in the international credit effort which both give to the credit
international credit union movement. union movement. union movement”. He added:
Melanie and Pauline were presented with Competing against 50 other young “Young people are absolutely central to
their awards at the 2016 World Credit credit union leaders from throughout the further development of the credit
Union Conference which was held in the globe, Melanie and Pauline union movement in Ireland and we are
Belfast from 17th – 20th July 2016. participated in wide-ranging discussions working hard to ensure that we put
and workshops on key issues affecting young people at the very heart of
Commenting on her success, Pauline the international credit union everything we do”.
said: movement. Following deliberations by
“I was delighted to be selected by the the Judging Committee from the World As part of their award, Melanie and
Irish League of Credit Unions to attend Council of Credit Unions, both were Pauline will receive an all expenses paid
this Conference and it was a truly selected as two of the five winners, the trip to the 2017 World Credit Union
amazing experience. When it was first year in which Ireland has had more Conference which takes place in
announced that I was amongst the than one winner in this competition. Vienna, Austria. Both will be tasked with
winners, I was absolutely astonished. It is The other WYCUP winners were from presenting to other young credit union
a great honour and a privilege to have Russia, Kenya and Trinidad and leaders at next year’s conference, to
been selected from such an illustrious Tobago. share their experiences and advice with
group of young credit union leaders”. other young credit union leaders.

Melanie added:
“Attending the conference and working
with so many inspirational credit union
professionals was a great honour. To
then be selected as one of the five
winners of the Young People Programme
was an amazing experience. I am looking
forward to being an ambassador for
young credit union professionals around
the globe while advocating for
progression within the movement”.

The World Credit Union Conference,
organised by the World Council of Credit

CU FOCUS AUTUMN 2016 :: 11

Focus on …

Dromara & Drumgooland
Credit Union Limited

Number of members? 11,197
Adult: 2,279
Juvenile: 13,476
28,684,691.17
TL: 32,147,315.17
Total Savings? 12 (8ft /4pt)
Total Assets? 10
Number of staff? 29
Number of Offices?
Number of volunteers?

When was the credit union founded? ILCU President Brian McCrory with staff and directors from Dromara & Drumgooland Credit Union at the
Tell us a bit about the history of the CU. official opening of their new premises in Newcastle
Dromara & Drumgooland Credit Union was
formed in November 1968. At this time The new sub office in Newcastle
our offices were in Dromara old school,
Leitrim Hall and Dechomet Hall. The
following men helped found Dromara &
Drumgooland Credit Union in 1968, Mr
Roderick Gilmore, Mr Jimmy Malone, Mr
P.D Cunningham, Mr James McKenny, Mr
Patrick King, Mr Stephan O’Hare, Mr John
McNeill, Mr Bernard Cunningham, Mr
Barnie O’Hare, Mr Willie Doyle, Mr John
Greeran and Mr Patrick Doyle. They all
contributed £1.00 each. The credit union
founders did not do their work for
recognition but for a deeper sense of
satisfaction often associated with creative
endeavours.

It was Roderick Gilmore who conceived
the idea of a rural credit union with a
number of branch offices, to serve the
widest possible area. Our deepest gratitude
goes to Roderick, and indeed to all the
founder members of Dromara &
Drumgooland Credit Union, for without their
foresight and commitment to this idea, our
credit union could not have become the
fantastic success it istoday.

Dromara & Drumgooland Credit Union Ltd
now consists of the office in Castlewellan
(which is our registered head office), with
sub offices in the surrounding areas of
Newcastle, Ballykinler, Bright, Dromara,
Dundrum, Hilltown, Kilcoo, Mayobridge and
Rathfriland.

Originally there were only a handful of
members, in the first year of business
membership totalled to 13 members with a
combined saving of just over £41, but the
membership grew steadily into the thriving
organisation it is today with over 13,480
members (Adults and Juveniles) and assets

12 :: CU FOCUS AUTUMN 2016

The credit union's main office in Castlewellan

of over £32 million. to them, and evening opening hours for • Youth savings accounts
A key development for the credit convenience. Our sub offices are in the • Credit Union Thrift
following areas: • Credit Union Loans
union’s growth in the local community • Credit Union Loan Protection / Life
came about when local people were given 1) Ballykinler
an opportunity to purchase old labourers’ 2) Bright Saving Insurance
cottages for £500. A credit union loan 3) Dromara • Death Benefit Insurance
was the only way to raise the finance to 4) Dundrum • Foreign Exchange
help these people own their homes, and 5) Hilltown • Credit Union Insurance Cover
this proved to be instrumental in getting 6) Kilcoo
the credit union off the ground 7) Mayobridge (Home/Car/ Holiday)
The original headquarters was in 8) Newcastle • Oil Saving Stamps
Castlewellan in a rented accommodation 9) Rathfriland • Direct Debits
above McAnulty’s pub on the main street, • Credit/Cash Transfers
and in 1972, a site was purchased from At a time when Banks and Building • Online Accounts
Annesley estates on Dublin Road. A new Societies are closing branches all over • Household budgeting
office was built and officially opened on Northern Ireland, and particularly in rural
Saturday 6th January 1979. areas, access to financial services for our In the last few years we have introduced
members remains one of our priorities. In a suite of loans at reduced rates. For
Dromara & Drumgooland Credit Union more than one of our office locations, we example, oil/winter fuel loans, school
Ltd would like to take this opportunity to are now the only financial institution with uniform loans, van loans, and holiday
thank all those who have made this a presence on the ground. Our spread of loans to name a few. This is to provide
contribution, namely: Bernard offices across much of County Down our members with cheaper borrowing, to
Cunningham, Jim Carvill, Jim Doyle, ensures that our members can manage ensure we are competitive in the lending
Frank Doyle, Pat Gallagher, Angela their finances at a convenient time and market, and of course, to build our loan
Murray, Gerry McGowan, Peter location, and with the pilot programme book, which is necessary in today’s
McAtamney, Patricia Quinn, Terry King, through CUSOP starting later this year, economic environment.
Eileen King and Violet McCabe. we hope to bring those members a more
enhanced service. Do you operate any school Credit Unions?
Do you have any sub-offices? At present we operate in three schools
Dromara & Drumgooland credit union had What kind of additional services do within our common bond, two of which
seven sub offices at the start of 2012 Dromara and Drumgooland CU provide for are secondary schools, St Malachys High
which increased to nine due to the its members? School Castlewellan and Shimna
amalgamation with Bright Credit Union Services that Dromara & Drumgooland Integrated College in Newcastle. We also
Ltd in May 2012 and later Ballykinler Credit Union provide for members run as savings scheme with St Marys
and Dundrum Credit Union Ltd in April include: Primary school, Newcastle. It is our hope
2013. It was important to maintain a • Credit Union Savings to add more schools to our list in the
presence in these areas, in order to coming years, as these will become our
provide our members with locations close future members and borrowers.

CU FOCUS AUTUMN 2016 :: 13

Focus on …

Tell us more about the Credit Union’s Staff members at the Castlewellan office promoting holiday loans
Youth Committee. What kind of
projects/initiatives have they been Newcastle premises in 2015, a grand members who have difficulty in repaying
involved in? opening was organised with food, raffles loans, mainly due to reduction in income
Dromara & Drumgooland Credit Union and kids entertainment. or loss of employment. In line with the
youth committee provide young savers ethos of the credit union, we endeavour to
with incentives throughout the year to The event proved very successful with a help our members through these difficult
save, through presentations in schools to large turnout on the day. The open day times. We realise that standing by our
increase the awareness and benefits of gave us an opportunity to engage with the members during these difficult times will
credit union membership, the ILCU’s Art local community, where we handed out ensure that those same credit union
Competition and School’s Quiz ,and not promotional information about our members remain loyal to the credit union
forgetting the great savers week in May. services and application forms for when things improve.
Along with the ILCU-run events, we run membership - which we received a good
seasonal promotions for our juvenile response from. We were honoured that What does the future hold for DDCU?
members during the year, which include day to have Brian McCrory officially open Dromara & Drumgooland Credit Union is
prizes from laptops to family days out. our Newcastle branch, his first official one of three credit unions that have been
What is the main method used by the function as ILCU president. selected to trial the new CUSOP, a
credit union in attracting new members? bespoke credit union payments platform,
In order to attract new members, we use What impact has the credit crunch had on which we hope will go live in September
social media and newspaper promotions your members? Has there been an 2016. The benefits to members would be
to show the services that we provide. Our increase in members with difficulty in faster payments, ability to pay their wages
main recruitment method continues to be repaying loans? How has the credit union and state benefits directly into their credit
through word of mouth from our existing addressed the problem? union account, and in time the ability to
members. We also attend events within Like all credit unions in the current pay their household bills directly from
our common bond, such as the Claragh economic climate, the credit crunch has their credit union account.
Bridge Vintage show, where we promote caused concern in predicting a member’s Some of the other services that we hope
the credit union and the services we ability to afford a loan in an unpredictable to provide in future:
provide to the local community. economy, and indeed members not • Prepaid debit cards
wanting to take out loans due to the • Lending to Associations and Clubs
What is the credit union’s proudest uncertainty of job security and pay • Online payments
achievement? restrictions. This has not been helped by • Mobile app
The 21st century banking world has the recent uncertainty over Brexit and
changed, as you can observe from main changes to the government state For more information on Dromara &
street bank closures in most towns here. allowances, and the introduction of Drumgooland Credit Union, and the
Thankfully, the opposite is happening with Welfare Reform, which could impact on services we provide, visit our website on
the credit union movement. our member’s ability to repay, particularly www.ddcreditunion.com or contact us at
Our headquarters in Castlewellan had in lower income households that currently our head office on 028 437 78612.
become congested due to the transfers of rely heavily on state benefits.
Bright and Ballykinler and Dundrum In Dromara & Drumgooland Credit Union,
credit union in recent years. The new there has been a slight increase in
premises in Newcastle have provided the
opportunity to alleviate the pressure on
our head office in Castlewellan, giving us
much needed storage for filing and
computer systems, as well as offering us a
main street presence in Newcastle, which
we have never had before. This has
proved to be very successful, increasing
membership in the Newcastle area.
To mark the opening of the new

14 :: CU FOCUS AUTUMN 2016



Westminster politicians come together
in Belfast to discuss credit unions at
WOCCU conference

ILCU President Brian McCrory addresses attendees and politicians at the All Party Parliamentary Gathering

In advance of the opening ceremony for the “It is absolutely vital that the credit union movement
World Council of Credit Unions (WOCCU) work closely with politicians to further common goals”
Conference on 17 July 2016, WOCCU and
the Irish League of Credit Unions (ILCU) The Irish League of Credit Unions President, Brian McCrory
invited a number of politicians with a keen
interest in the credit union movement from “We welcome regulation it is important, but we believe
the All Party Parliamentary Group (APPG) it should be appropriate to our size and scale:
on Credit Unions at Westminster to a regulators should not be shoe-horning regimes
gathering to discuss the credit union designed for banks in the wake of their role in the
movement and the major issues that credit collapse of the global economy on prudent, well-run
unions continue to face on the legislative community based credit unions.”
and regulatory fronts.
Irish League of Credit Unions President, Brian McCrory
The APPG meets several times a year
and brings politicians from across the political support for the movement’s spectrum and in both Houses of
political spectrum together to discuss development. The group currently has Parliament.
issues affecting the credit union 157 members from across the political
movement. The APPG was set up to Due to a last minute reshuffle and
provide a forum for discussing the work of
credit unions and the need to secure a
supportive environment, including
enabling legislation and proportionate
regulation, to allow credit unions to scale
up and provide inclusive financial services
to many more people. It seeks to raise
awareness and build consensus and

16 :: CU FOCUS AUTUMN 2016

NI Politicians Jim Shannon MP, Mark Durkan MP, Margaret Ritchie MP and Danny Kinnahan MP with WOCCU President Brian Branch,
ILCU President Brian McCrory and ILCU CEO Ed Farrell

MP for Foyle Mark Durkan, Vice Chair of the All- appointment as a ‘Brexit Minister’, the Brian McCrory warmly welcomed those
Party Parliamentary Group on Credit Unions Chair of the All Parliamentary Party Group, gathered to his home city of Belfast. The
Robin Walker MP could not make the President thanked those who were in
gathering but he did send his regards for attendance, reminding them that the
the success of the conference. credit union movement has a massive
potential to assist the governments in all
In a Northern Ireland capacity, the ILCU jurisdictions to help with areas such as
was delighted to have one of the Vice social housing
Chairs of the APPG in attendance, Mark
Durkan MP. Being from Derry, Mr Durkan The President finished his speech by
is a huge advocate and supporter of the reminding the gathering that credit unions
credit union movement in Northern in Great Britain had received a great deal
Ireland and during his speech to the of financial assistance over the last
delegates stressed the importance of the decade, a similar kind of funding had not
need to encourage and nurture a more been forthcoming to Northern Ireland
open conversation between credit unions credit unions from the Northern Ireland
and regulators. Assembly. Further engagement was
therefore required to fulfil the potential of
Also in attendance from Northern the credit union movement in Northern
Ireland were Margaret Ritchie MP from Ireland.
South Down, Danny Kinnahan MP from
South Down and Jim Shannon MP from The President closed his speech by
Strangford. declaring there is much to discuss, much
to do and much to act upon when it
From the House of Lords, we were also comes to continuing the conversation with
delighted to welcome Lord Kennedy of the legislators and the regulators into the
Southwark. future.

Addressing delegates, ILCU President

CU FOCUS AUTUMN 2016 :: 17

National Rollout of
Personal Micro
Credit initiative

The national rollout of the Personal Micro Credit (PMC) initiative is well underway. After a successful 6 month pilot
the initiative is open to all credit unions. A significant development subsequent to the pilot offering is that PMC is
now open to all social welfare recipients – both those who collect their welfare in cash and those who have their
payments via EFT. This means that those receiving payments such as Family Income Supplement (FIS) can be
included under the terms of PMC. This marks an important extension to PMC. It provides a further opportunity for
credit unions to lend to individuals and families under an initiative that is acknowledged by the Registry of Credit
Unions as being “consistent with the prudential lending standards required of credit unions”.

As part of signing up to offer PMC, a credit union must obtain Board approval for the PMC credit policy and must
also sign up with An Post to access deductions via the household budget scheme. This typically takes several weeks
to put in place and therefore we would encourage credit unions to start this process so that they can be part of a
nationwide marketing launch in October. We are aiming for this timeframe to meet with Christmas loan demands.
However, once a credit union is signed up they can offer loans immediately and do not need to wait. All information
and documents can be found at www.creditunion.ie/itmakessenseloans

On a weekly basis new credit unions are going live and we look forward to this number building over the coming
months with a view to having nationwide coverage by October.

Governmental and Political At the announcement of the rollout of the Personal Micro Credit Initiative L to R
Endorsement
Martin McElvaney, Manager, and James Bowden, Chairman, both of Meath Street
The significance of the initiative is
reflected in it being included in the Credit Union, Minister for Social Protection Leo Varadkar TD, Peter Crabbe,
Programme for Partnership
Government “Specifically we member of Meath Street Credit Union and Ed Farrell, CEO, Irish League of Credit
support…the rollout and extension of
the Personal Microcredit Scheme, Unions.
which is providing simple microloans
to members and helping to combat session held at the end of June. At national offering. We committed to
the use of moneylenders.”
this, all political parties were briefing Oireachtas members again in
Governmental commitment has
been very evident in recent weeks represented. The initiative was met September on how the rollout is
with the announcement of the
national rollout of PMC by Minister with a very positive reaction and progressing including the availability
Varadkar on July 26th. "The pilot
scheme has been hugely successful anticipation that PMC could be a truly of PMC in their local areas.
and I’m delighted that we can now
offer it to credit unions across Ireland.
I urge all credit unions to sign up and
make it available to their members”.
Minister Varadkar has also written to
all credit union Chairs and Managers
to encourage each credit union to
participate.

Additional political support from all
parties was evident at a PMC briefing

18 :: CU FOCUS AUTUMN 2016

The Social Injustice The ‘It Makes Sense’ Loan

Why do those that can least afford it, pay the most? Credit unions are working hard PMC is branded the The ‘It Makes
to combat money lenders and to offer affordable credit to those in their Sense’ Loan. These loans are
communities. PMC is another tool that can be used to tackle moneylenders and designed so that credit unions can
demonstrate that credit unions are open for business. offer quick small loans to social
welfare recipients who may be new to
Example cost of credit the credit union, may have no
For 2 x €500 loans in a year, with a credit union “It Makes Sense” loan, with savings and may have a default
weekly repayments of €19.84, an APR of 12.68%, the total amount repayable by history.
the member will be €1031.68. For the same 2 x €500 loans with a money lender,
the weekly repayments will be €25, an APR of 187.2%, the total amount repayable Extended from the pilot offering,
by the member will be €1300. loans can be offered to all social
welfare recipients. If the person
Socio Economic Benefit of Initiative receives their payment by cash then
• Take the €268.32 difference in interest repayment must be via the An Post
• Multiply by 360,000+ customers (estimated number of legal moneylender Household Budget Scheme. If the
social welfare payment is paid into a
customers in 2013) credit union or bank account then
the repayment must be via direct
Over €95 million being taken from vulnerable people who can least afford it. debit or standing order.

Join the Participating Credit Unions As the initiative is extended to both
cash and EFT social welfare
Each week we are adding credit unions to the list that can offer PMC – thank recipients, the number of individuals
you to those who have done so. To join please visit and families who can be helped
www.creditunion.ie/itmakessenseloans or contact John Knox under this initiative has been greatly
([email protected]) or Lorraine Corcoran and Lisa Magee from the project increased. For example, the initiative
([email protected], [email protected]). now covers Family Income
Supplement (FIS) payments and
The ILCU and the PMC Project team are on hand to assist you go live and will therefore will hopefully assist a
help with any questions you may have to make offering PMC as easy as possible. significant number of low income
Along with your fellow credit unions we would encourage you to sign up and families.
make PMC available to borrowers across the country.
The essence of the ‘It Makes
“The PMC scheme brings credit unions back to the main ethos of why they were Sense’ offering is:
set up in the first place, to help the vulnerable and to drive money lenders who
prey on these people out of the area. We at Ballyfermot Credit Union have ✓ Social welfare recipients
received a huge positive response from our community since we started to ✓ Fast track membership (for non-
provide this loan type back in November 2015. The scheme has gone from
strength to strength and allowed us to help many members (old & new) get back members)
in to main stream lending with us. Members have also noticed the benefits of ✓ No savings needed
borrowing from us as they now have more disposable income in their pockets ✓ Default history does not
now that they don’t have to pay over 56% interest with certain money lenders. I
would recommend the PMC scheme to every single credit union in the country necessarily rule individuals out
and ask the ones who don’t want to provide this amazing service, why? Why – an ICB check is not mandatory
wouldn’t a Credit Union want to help their members? Why wouldn’t you want to ✓ Separate credit policy drafted
show community support to rid the area of ruthless money lenders? with and acknowledged by the
Registry of Credit Unions in the
Credit Unions need to take a moment and look at the bigger picture and Central Bank
remember why we exist – The members!” Philip Kelly. Ballyfermot Credit Union. ✓ Repayment via An Post’s
Household Budget Scheme or by
“The introduction of the PMC initiative has enabled New Ross Credit Union lend standing order or direct debit
to individuals who otherwise would not have been able to under our standard ✓ Final credit decision rests with
criteria. Availability of the household budget scheme to deduct repayments has the credit union
been invaluable both for us as a credit union and for the borrowers. The ✓ www.creditunion.ie/
extension of the initiative to other social welfare recipients such as Family itmakessenseloans
Income Supplement is a welcome move and one which will allow us reach even
more borrowers” Aideen Doyle, New Ross Credit Union.

John Knox, ILCU
Brendan Whelan, Social Finance Foundation
Angela Black, Citizens Information Board

CU FOCUS AUTUMN 2016 :: 19

St Francis Credit Union

celebrates 50 years serving the local community

The credit union has grown from humble
beginnings to become a cornerstone of our
local community, with:
• A total membership of 33,593 members
• Thirty two staff members
• Total assets in excess of €170 million
• Total income for the year €18.3 million
• Total loans outstanding by members of

€36.7 million
• Total reserves exceeding 17.5%
• Member savings of over €140.6 million
• Eight offices

It has been quite a journey, with a number Tony Cullinan, ex-ILCU President, receiving a presentation from Chairman Michael Horgan on behalf
of key events that have helped to shape of St Francis Credit Union Board, Management & Staff in recognition of his service to the credit
the credit union outlined below. union movement.

St Francis Credit Union was founded on The Board and Board Oversight Committee of St Francis Credit Union
Tuesday June 14th 1966. Fr Florence Back Row: Valerie Slattery, Kevin Collins, Vincent Guilfoyle, John Hogan, Ollie O Regan, Nancy
OFM Friary Guardian who was involved Creech, Michael Carey, Kevin Dunican. Front Row: Tony Cullinan, Madeleine McCarthy, Michael
gave the Friary Hall as an office hence the Horgan Chairman, Maranna Quinlivan and Marion Hannon
name St Francis Credit Union Limited.
New Hall, Station Road otherwise known of Credit Unions.
At the study group meeting the following as “Paddy Con‘s" dance hall. 1986 – After 20 years serving the
week, the new Board of the new St. 1981 £1 million in member’s savings community St Francis Credit Union had a
Francis Credit Union were elected as reached. Computerisation introduced to Membership of 4,000 with savings of
follows: P.A. Benny Griffin -President, Fr. members accounts and general £2.344 million, Loans stood at £1.850
Florence McCarthy -~ Vice President, administration. million. Return to member 6% dividend.
Eamon Doyle Secretary, Eddie Fitzgerald - 1982 Due to continued growth in 1987 St Francis Credit Union celebrated
Treasurer, Fr. John Carroll, Tom Murphy, membership, savings and loans the Board its 21st Anniversary -Ennis Urban District
Flan Honan, Bertie Garry and Frank decided to purchase No. 64 Parnell Street Council afforded St. Francis Credit Union
Hanrahan. ' from the Duignan. Building and renovation a Civic reception in recognition of its value
1968 – We had a membership of 400 and work commenced in the same year. and service to members. In the same year
growing. Mick Connellan, retired official 1983 St Francis Credit Union new office at the lLCU AGM, Tony Cullinan was
from Ennis post office becomes office opened at 64 Parnell Street opened by Mr. elected to the Board of the Irish League of
manager. Michael Connolly. President Irish League Credit Unions.
1970 – First collection centre opened in
Ruan by Pat O’Brien and John Howard.
1972 – Number 22 Parnell Street is
purchased at public auction. On October
3rd the first board meeting is held in our
new building.
1973 – Temporary move to 26/28 Parnell
St. while own premises were gutted and
reconstructed.
1975 May 3rd 22 Parnell St officially
opened by Mr. Jack Daly, Chairman Ennis
Urban Council and blessed by Most Rev
Dr.Michael Harty, Bishop of Killaloe.
Membership 1,100; Savings £162,000
Loans to Members £145,000
1978 St. Francis Credit Union wins the
coveted Credit Union Cup presented by
the Irish League of Credit Unions for best
all round performance in administration
and services. Con O’Donoghue co-opted
to Directors and appointed Treasurer.
1980 30 April - Irish League or Credit
Unions held its AGM in Ennis with over
1000 delegates in attendance, venue: The

20 :: CU FOCUS AUTUMN 2016

The Staff and Management of St Francis Credit Union

1991 The Credit union celebrates its Silver Louis Fay, General Manager of St Francis Here is to the next 50 years in St
Jubilee, a visit by Mr. Tom McCarthy. Credit Union Francis Credit Union. There will be many
President, lLCU to offer congratulations on changes ahead, just in the same
25 years of service to members and the transfer of engagement to St Francis
community. Membership 6000 Savings Credit Union both transfers were way that there have been many
£5.243 million. Loans £3.593 million completed in September of 2014 changes before. It is of the utmost
1995 Tony Cullinan elected President of 2015 Sixmilebridge Credit Union importance to keep doing what we are
the Irish League of Credit Unions. transferred to St Francis Credit Union in doing, keep promoting our credit union,
1996 St Francis Credit Union 30th September 2015. keep training our personnel and educating
Anniversary of service to the community. Today Following the conclusion of three our members on the benefits of the credit
During the year our membership grew to transfers of engagements SFCU now union and keep in tune with all that the
10,000, with savings of £13.1 million, operates in eight offices in towns regulator imposes for the good of our
Loans £16.8 million. Total assets £15.95 throughout Co Clare including Ennis, credit union.
million -Turnover for year £19.5 million. Clarecastle, Kildysart, Kilmihil, Lissycasey,
2004 – Due to continuous growth the Newmarket-On-Fergus, Sixmilebridge and To celebrate the milestone of 50 years
Board purchased a site to build new Tulla. The organisation now includes key serving the local community, St
premises to better serve the membership departments such as lending, credit Francis Credit Union undertook a
at Clonroadbeg from the Mercy Order. In control, risk, finance, compliance and number of promotional activities in
the same year the credit union recognised marketing. The General Manager, Louis June and July of this year.
the importance of technology and invested Fay who has been in this role for 14 years • Feature articles ran in the local
in a new website for members, has overseen the recent expansion and
www.stfranciscu.ie. Members 15,480, changes. He has a brilliant and committed newspaper
Savings €54.685 million. Loans € 22.92 team working for him who strive to deliver • 50/50/50 Promotion – a week long
million. a first class service to our members. We
2006 – With the new premises completed, continue to improve and innovate the type campaign giving back to members:
the credit union made the historic move and level of service delivery that our 50 members won €50 gift vouchers
from Parnell Street after 34 years to our members have come to expect. to mark the 50th Anniversary
new bespoke premises in Friar’s Walk. • Members Day live outdoor
Total loans issued to member’s broadcast with Clare FM, the local
between1966 to 2006 were €180 million. radio station
2008 Our first sub office opened in Tulla • Directors Dinner at the West County
with a full range of services available to Hotel
members as the credit union grew in the • Coffee morning for members in the
same year we introduced a new ATM main office in Ennis
service & On Line access. • Art competition for junior members,
2014 Following requests from the Board to celebrate the 50th Anniversary
of Directors in both St. Peter & Paul Credit • Cash draw
Union & Fergus Credit Union regarding a • Complimentary keepsake magazine
for members to commemorate the
occasion

CU FOCUS AUTUMN 2016 :: 21

CUSOP

Now in Getting Bigger
and Bigger
Northern Ireland
TransacƟon Volume & Live Credit Unions
Rail Viaduct at Newry. Source: Irish Rail and NIR.
Monthly tx’s CumulaƟve tx’s Live CU’s
CUSOP is on-boarding credit unions in Northern
Ireland, with site-visits at Antrim, Crossmaglen, Number of transacƟons5,000,000 120
Ballymena, KRD, Coalisland, Pennyburn and Dromara JSFFFJJANDMAAAMMMJOeeeeaauuoeaaaapppcubbbpnnclngrrrvrrrty-------------------111111111111111111165656555556565665554,000,000100
& Dromgooland Credit Unions. The roll-out process is 3,000,000 80
gaining momentum with Keith Lawlor and John 2,000,000 60
Chapman visiting credit unions to undertake due- 1,000,000 40
diligence. Call or email Aimee, at +353 (0)1 6146980 20
or [email protected] with any enquiries. Roll-out of the 0 0
service to pilot credit unions is in conjunction with our
partner bank, Danske (Northern Bank Ltd. t/a Danske). With 107 credit unions live on the CUSOP platform, the
NI credit unions are allocated sort-codes to facilitate number of transactions processed for members has reached
payments directly in and out of member accounts when almost 5 million (see chart). More credit unions are in the
they join the platform. Credit transfers (including process of joining throughout Ireland. CUSOP allows credit
standing orders) are being rolled out now and our plan unions to broaden their range of services on offer to members.
is to offer direct debits at a later stage. This should also help to attract new members and potential
lending opportunities.

Benefits of joining Map of live (dark-green) and scheduled CUSOP credit
our EFT platform unions.

■ ROI credit union members can access the Single Presenting Tomás O’Neill, Tom Cronin and David Browne of
European Payments Area (SEPA) for electronic funds Mallow Credit Union with an award to mark
transfers directly in and out of their accounts using the occasion of the 100th live credit union on the CUSOP
IBAN’s. SEPA covers 34 countries. electronic payments platform, were Michael Keegan
of CUSOP and Paul Farrell of ILCU.
■ NI credit unions can access the Bacs and Faster
Payments Schemes for electronic funds transfers
directly in and out of their accounts using National Sort
Codes and account numbers, throughout the UK.

■ Lower bank charges for the credit union.
■ Salaries, social welfare and pensions paid-in directly

provides members with faster access to their funds.
■ Utility and other bills can be paid by direct debit from

member accounts e.g. Electricity, Gas, eir, Vodafone,
Sky.
■ Origination of direct debits can facilitate regular savings
or loan repayments and eliminate the need for a
member to visit and set-up standing orders at a bank.
■ Automation can free up resources to provide other
services or efficiencies.
■ Using CUSOP with the services of your ITSP can enable
online and mobile connectivity for members.
■ Reconciliations made easier with online access to
settlement account using Danske eBanking.

22 :: CU FOCUS AUTUMN 2016

SEPA – which countries participate?

ROI is in the Single Euro Payments Area (SEPA), a Commission and the Central Bank (ECB) have focused
European Union (EU) payments integration initiative. on the integration of the euro payments market. Since
With the introduction of the euro currency in 1999, the then, the payments industry has developed a set of
political drivers of the SEPA initiative – EU harmonised payment schemes and frameworks for
governments, the European Parliament, European electronic euro payments.

15. 34 1. Austria 19. Liechtenstein
2. Belgium 20. Lithuania
SEPA Scheme 36. 9. COUNTRIES 3. Bulgaria 21. Luxembourg
Countries and 4. Croatia 22. Malta
Territories 25. 5. 5. Cyprus 23. Monaco
6. Czech Republic 24. Netherlands
28. 10. 7. Denmark 25. Norway
29. 8. 8. Estonia 26. Poland
9. Finland 27. Portugal
16. 42. 18. (incl. Azores – 28 - and Madeira - 29)
38. 7. 20. (incl. Åland islands - 10) 30. Romania
11. France 31. San Marino
40. 24. 26. 32. Slovakia
41. (incl. oversea territories of French Guiana, 33. Slovenia
2. 12. 32. 34. Spain
11. 21. 14. Guadeloupe, Martinique, Mayotte, Reunion, (incl. Canary Islands - 35)
6. 36. Sweden
27. Saint Barthélemy, French part of Saint Martin, 37. Switzerland
34. 37. 19. 1. 38. United Kingdom
23. Saint Pierre and Miquelon) (incl. Gibraltar – 39 -,
39. 33. 30. 12. Germany and as of 01/05/16 Guernsey – 40 - ,
3. 13. Greece Jersey – 41- and Isle of Man – 42)
4. 14. Hungary
15. Iceland List updated in February 2016
31. 16. Ireland
17. 17. Italy
18. Latvia

13.

35. 22.

Source: European Payments Council – February 2016.

UK - Bacs CUSOP – We are
and Faster
Payments the Irish here to help

Bankers’ Automated Clearing Services, credit union We would be delighted to meet you and
‘Bacs’ was launched in 1968 and is used your team at your credit union or
to process several different types of owned EFT chapter. Please let us know if you would
electronic payments within the UK. like to meet. With 107 credit unions
‘Bacs’ payments are used by businesses platform using our proven and tested payments
for credit transfers (including standing platform, it’s time for your credit union
orders) and direct debits and regular A number of large credit unions to consider CUSOP.
payments such as wages and pensions. have made a seamless switch
The ‘Faster Payments’ system was to CUSOP. BIC and member Michael Keegan, CEO, CUSOP (Payments)
launched in 2008 within the UK, is faster IBAN’s do not change and our Limited, 33-41 Lower Mount St.,
than Bacs and is used by business and expert team works closely with Dublin 2.
the general public for EFT’s. CUSOP will credit unions to always ensure a
deliver Bacs and Faster Payments successful transfer. Credit Tel: +353 (0)1 614 6700 or mail to:
transactions for credit unions in the unions who undertook the [email protected]
north of Ireland – Credit transfers transfer are happy to share their www.cusop.ie
(including standing orders) are being experiences. Our own
rolled out now and our plan is to offer operations team carefully guide CUSOP (Payments) DAC t/a CUSOP is regulated by
direct debits at a later stage. credit unions along the way. A the Central Bank of Ireland. CUSOP also acts as a
key advantage of being with technical services provider in respect of the provision
CUSOP is service and our of Direct Debits, which is a non-regulated activity.
availability to work with you. CUSOP is a designated activity company and is
registered in Ireland with a registered office at: 33-41
Lower Mount Street, Dublin 2. Registration No.:
502291. Directors: M. O’Neill, J. Mullen, U. Ryan,
J. O’Donovan, M. Keegan.

CU FOCUS AUTUMN 2016 :: 23

ILCU

FOUNDATION

Volunteers Wanted to Participate in The Gambia
& Sierra Leone Coaching Programme

The Assignment: The Irish League of Credit
Unions Foundation (ILCU Foundation) is
seeking to recruit Irish credit union
volunteers to provide support and mentoring
to the credit union movement in The Gambia &
Sierra Leone by participating in a two week
visit in early 2017.

What is the Gambia & Sierra Leone Coaching
Programme?
The Coaching Programme is designed to
provide on-site support to credit unions
through the provision of demand-driven
technical support. The technical support will
be provided by the volunteer coaches
sourced from volunteers, board members
and staff of credit unions in Ireland.

When does the Gambia & Sierra Leone Coaches of 2016 with staff and directors of the National Association of Cooperative Credit Unions
Coaching Programme take place? of Gambia (NACCUG) and managers of credit unions which they visited.
The field visit will take place in
January/February 2017, with pre-departure
training and a briefing in the ILCU
Foundation office in Dublin in late 2016.

What’s the benefit of getting involved? will be requested to kindly contribute €2,000 How do I apply?
Learning, adventure, personal satisfaction towards the cost of the mission. Please complete the application form which
and motivation. is available to download in the news section
What support will be provided to the coaches? on ilcufoundation.ie and return to Irina
Previous coaches report that the coaching The ILCU Foundation will: Ignatieva by email [email protected]
programme is an adventure that affords • Book flights, accommodation & travel or by post: ILCU Foundation, 33-41 Lower
them the opportunity to learn about African Mount Street, Dublin 2.
culture, as well as understanding the skills insurance * The closing date for applications is Friday
needed to develop credit unions and • Organise logistics in The Gambia & Sierra 23rd September 2016
communities in Africa. Many come home
with ideas they would like to apply to their Leone including in-country transportation When will I know if my application has been
work in Ireland. Previous coaches have and venues for regional trainings successful?
reported personal satisfaction and renewed • Support the coaches in planning the The ILCU Foundation will review every
motivation in imparting skills and training to regional training workshops and the application and select short-listed candidates
other credit unions. They enjoyed supporting individual credit union visits for interviews. All interviewees will receive
other credit unions in facing their challenges. • Arrange pre-trip briefings in Ireland, notification of acceptance/non acceptance
including cultural training by w/c 26th September 2016.
What commitment is required from successful • Provide a staff member to accompany the
applicants? coaches to The Gambia Liam Mc Cullagh, Manager of Camlin
The coaches will be required to carry out a • Liaise with the Gambian credit union Credit Union Ltd said about his experience
two week field visit in January/February 2017 movement. last year.:
in accordance with agreed terms of
reference. There will also be a requirement What qualifications are necessary to apply? “Some of the communities we visited had
to attend pre-departure training in Dublin, The selected coaches will be well rounded no electricity or full water supply. The people
prepare training materials in advance of the and experienced credit union generalists, had little formal education but a wealth of
visit and attend debrief meetings in The with an ability to offer advice and assistance experience of life on a limited income. They
Gambia & Sierra Leone and in Dublin. The on all aspects of primary credit union were proud of what their credit union had
coaches will work in teams of two for the management. Topics to be covered will be done for them and their community, and
duration of field visit. Week 1 of the visit will driven by the needs of the Gambian & Sierra were working hard to help others achieve
involve a regional thematic training workshop Leonean credit unions and may include financial independence. They shared their
designed to address the priority needs of the governance, risk management, internal food and their stories with us and listened
Gambian & Sierra Leonean credit unions. controls/monitoring, marketing, financial intently to any advice we were able to give
Week 2 will involve visits to two targeted management and human resource them. We in turn came away re-energised
credit unions, with each coaching team development. Candidates should be flexible, and encouraged that the credit union
spending two days in each credit union. able to think on their feet and have a broad movement is still making a difference in
range of experience to draw on. people’s lives throughout the world.”
The successful candidate’s credit union

24 :: CU FOCUS AUTUMN 2016

ILCU

FOUNDATION

ILCU FOUNDATION CREDIT UNIONS
INTERNATIONAL EMERGE AFTER EBOLA
PARTNERS’ CONFERENCE
IN SIERRA LEONE
The ILCU Foundation would like to invite representatives
(Chairperson/Director (1)/ Senior Staff or CEO/Manager (1)) The ILCU Foundation in partnership with the Canadian
from your credit union to attend the ILCU Foundation Cooperative Association (CCA) set out to revitalise the credit
International Partners’ Conference – a special one day union movement and expand financial services to thousands of
conference on Saturday 8th October in the Sheraton Hotel, communities in Sierra Leone in 2013. This project began
Athlone, Co. Westmeath. successfully and progressed; however, in July 2014 the largest
and most complex Ebola outbreak in history led to its
Attendees will meet with credit union leaders from across the suspension and the outbreak forced many credit unions to
globe whose movement and members directly benefit from the close.
generous support which the ILCU Foundation receives from
your credit union. Attendees will learn about how credit union The project manager, Solomon Mwongyere, observed the
movements are developed in Africa and other countries, celebrations after the World Health Organization declared
understand the challenges and opportunities facing their Sierra Leone Ebola free in November 2015, "People from all
movements today, and attendees will engage and contribute to walks of life in the country and international organisations
the conference. happily celebrating. There was jubilation across the country
because they knew that they would be free to move once
A final agenda will be issued to the credit union in the coming again.” So with life slowly returning to normality, Solomon is
weeks, lunch will be provided at the event and parking is free of getting a clearer idea of the how the credit union system has
charge. been affected and how the project will move ahead. He tells
the story from here:
Credit unions that would like to register can do so by emailing
the names of the attendees to James Gallagher "The emerging credit union movement was hit hard by
[email protected]. If your credit union has any queries Ebola. A total of 71 members died, some of them were
at this time, please contact James by email or phone 00353 1 leaders and staff of the credit unions. Most credit union
614 6746 members lost family and close relatives due to the Ebola
virus. This created fear among communities and forced small
ILCU Foundation International Partners’ scale entrepreneurs to abandon their businesses.
Conference
This affected members’ incomes. As the situation
Where: Hoey Suite, Sheraton Hotel, Gleeson Street, Athlone, Co. worsened, some members who had borrowed ended up
Westmeath using the borrowed funds to care for their families. Some
Registration Cost: NA people relocated to other districts and as a result credit
When: Saturday 8th October – 10am – 5pm unions are suffering from high default rates and that is
putting member's savings at a risk. All credit unions were
Pictured L-R Abebe Ayalew Mekonnen, Fedral Cooperative Agency forced to close for some time, some for a month or two, while
Ethiopia; Liam Morrissey, ILCU Foundation; Dr. Wolday Amha Desta, others closed for the total duration of the crisis. Monthly
Fedral Cooperative Agency Ethiopia; Ted O’Sullivan, Douglas Credit meetings in all credit unions were suspended for almost a
Union; Berhane Kidanu, Fedral Cooperative Agency Ethiopia, Birhanu year due to government restrictions on assembly, resulting in
Dufera; Fedral Cooperative Agency Ethiopia pictured at the International reduced savings and awareness of credit union performance.
Partners’ Conference 2014.
In some cases, however, the Ebola crisis proved the depth
of members trust in credit unions as many businesses placed
revenue (from selling out of inventories) into the credit union
for safekeeping until they were able to reinvest this money in
their businesses.

We’re redesigning the project to cater for lost time and
momentum. Commitments with credit unions are being
intensified through tailored trainings, increased audit
services, increasing the number of credit unions we work with
from 20 to 35, strengthening National Association of
Cooperative Credit Unions Sierra Leone, and working with the
Department of Co-operatives to improve the Co-operative
Law.

Our vision is to have 100 credit union access points and
100,000 people accessing services from credit unions by
2025. Low income earners are excited about the prospect of
accessing credit union services as they are the only financial
institutions giving them an opportunity to save money and get
credit to improve their lives for the better."

Want to hear more news from the ILCU Foundation?

Email your name to [email protected] with the word E-ZINE in the subject line to join our mailing list.

CU FOCUS AUTUMN 2016 :: 25

CUCC Annual
Conference
2016

“Compliance & Risk:
Embrace change, enable growth”

On 23rd August 2016 delegates from credit unions across Ireland The CUCC Annual Conference 2016 took place in Trinity
came together in Trinity College Dublin for the second Credit Union College Dublin with 300 delegates from across the island of
Compliance Centre (CUCC) Annual Conference. The event Ireland
provided a platform for discussion on regulatory compliance and
risk management issues. The aim of this year’s conference was to Left to right: Brian McCrory, ILCU President; Kevin
bring together in one venue credit union compliance and risk Loughnane, CUCC Head of Risk & Compliance; Ed Farrell,
professionals to discuss legal, regulatory and operational issues ILCU CEO
and to continue to encourage a strong culture of compliance, and
robust risk management practices in credit unions. In keeping with
this, the theme of ‘Embrace change, enable growth’ aimed to
highlight the importance of compliance and risk as enablers to the
growth and stability of the credit union.

Delegates consisted of over 300 credit union officers from across
the island of Ireland, along with representatives from:

■ Central Bank of Ireland
■ The Office of the Data Protection Commissioner
■ Information Commissioner’s Office
■ National Supervisors Forum
■ An Garda Síochána
■ CUSOP
■ The Credit Union Managers Association
■ The National Supervisors Forum

As risk and compliance functions are still relatively new in credit
unions, one of the key aims of this year’s conference was to
provide an insight into good practice in other sectors both
nationally and internationally. Delegates heard presentations from
the following speakers: Prof. Brian Lucey (TCD); JoAnn Stonier
(Mastercard); Gavin Flood (AdRoll); Dr Margaret Cullen (CIFDI); Dr
Simon Ashby (Pymouth Business School); Brian Honan (BH
Consulting); and Pamela Rogers (Alvarez and Marsal).

Speakers led discussions focused on risk management and
compliance, marketing, cyber security and data protection.

CUCC is a professional advisory subscription service, providing
support to credit unions in the areas of risk management and
compliance. Since its establishment in 2014 the CUCC is working
with over 160 credit unions on the island of Ireland. It aims to
promote a positive culture towards compliance and risk
management in credit unions. The CUCC recognises that robust
risk and compliance practices contribute to better business
performance in credit unions. It is for this reason it chose
“Compliance & Risk: Embrace change, enable growth” as the

26 :: CU FOCUS AUTUMN 2016

The CUCC Team with JoAnn outside the conference venue in Brian Lucey, Professor in Finance Trinity College Dublin
Trinity College Dublin. Left to right: Deirdre Farry, Risk Analyst; delivered the keynote address at the CUCC Annual
Kevin Loughnane, Head of Risk & Compliance; JoAnn C. Stonier, Conference 2016
Chief Information Governance & Privacy Officer for Mastercard;
Sharon Farrell, Compliance Advisor; James McAuley, Risk Advisor;
Joan Guy, Assistant Compliance Advisor

Left to right: Patsy McShane, Ballinascreen Credit Union Limited Left to right: Liam Waters, Enniscorthy Credit Union Limited and
and Wendy Morton, Ballymena Credit Union Limited Ultan Ryan, Wexford Credit Union Limited

theme for this year’s conference. business and growth of credit unions.” I came to the conference with
anticipation and expectation. We get
Irish League of Credit Unions President The feedback from conference delegates access to top quality speakers in their
Brian McCrory was in attendance to was extremely positive both during and fields and the knowledge they share
introduce the keynote speaker for this after the event. Delegates included credit increases our capacity as compliance
prestigious event, Prof. Brian Lucey. Prof. union risk and compliance professionals as and risk officers.
Lucey’s keynote address focused on how well as managers / CEOs and directors. A Wendy Morton, Ballymena Credit Union
Ireland is positioned following the economic number of other professionals from Limited
recession and banking crisis. In particular, organisations working directly with credit
he discussed how key environmental events unions were in attendance as delegates at We have access to the CUCC
such as Brexit may impact on consumers, the conference. working groups but the conference
businesses and specifically credit unions. gives the bigger picture. The
Brexit will be a massively dislocative networking opportunity at the
Reflecting on the success of the event for Ireland north and south. conference and the quality of the
conference, Ed Farrell CEO of the Irish Northern Ireland SMEs are very speakers is excellent and has made
League of Credit Unions commented: dependent on free movement of goods, the CUCC brand known throughout
“Compliance and risk management labour and services cross border. It the movement.
continue to be two evolving areas for credit would be sensible to consider how they
unions. Today the CUCC has assembled an can protect these markets, whether by Liam Waters, Enniscorthy Credit
impressive line-up of international experts relocation or by other means, in the Union Limited
and leading practitioners in these areas. I event of a hard border.
am delighted the Irish League of Credit Prof. Brian Lucey, Speaking at the CUCC CU FOCUS AUTUMN 2016 :: 27
Unions can deliver successful events such Annual Conference 2016 in Trinity
as the CUCC Conference 2016 to promote College Dublin.
knowledge-sharing and discussion in
implementing best practice to support the

HR

ILCU HR SURVEY

Earlier this year the HR Department HR Website Usage ■ Performance management training/
carried out a survey of credit unions, the information
principal aims of the survey were to: 50% of respondents indicated that they
1. Establish how the current HR service use the website “sometimes” whereas ■ Employment law information sessions to
15% indicated that they use it frequently. provide information regarding
offering by ILCU is viewed by credit A further 33% indicated that they either employment legislation / any changes in
unions. seldom or never use it. same/
2. Identify HR Service requirements of
credit unions today in order to provide When one examines the suggestions for ■ TUPE – impact of mergers on staff (
the most relevant and up to date HR improvement of HR information on the Change Management)
information. website, the answers focus mainly on
making the website more user friendly. ■ Regional HR information workshops for
Our target audience was both Board There were many requests for more Managers/ CEO/HR Committees
members and CEO/ Managers. We handed information on common HR topics such
out paper surveys at AGM 2016 and as performance management and Conclusion
followed this up with an online survey to information on employee entitlements e.g.
target all affiliated credit union managers; pensions, dispute resolution and leave/pay The survey findings were positive overall
to this end we communicated via a entitlements. It was apparent that many of and we believe that the response rate is a
circulation to 411 credit unions across the respondents were not aware of the strong indicator as to the level of interest
Republic of Ireland and Northern Ireland level of information that is already on the and potential demand there is for the HR
website. services provided by ILCU. In addition it is
A total of 110 responses representing a evident that this engagement level by the
26% overall response rate, were received Suggestions for Improvement respondents is well spread across credit
as follows: unions of all sizes and geographical
■ 28 respondents in Northern Ireland While most comments were positive in locations in ROI and NI.
terms of the knowledge and accessibility
credit unions of the HR service provided by ILCU, there The HR Department intends to
■ 82 respondents in Republic of Ireland were some negative comments which incorporate the suggestions for training
related in the main to the perception that and information seminars to be
credit unions. the service lacked sufficient resources incorporated into the new HR Forum /
and was spread very thinly. It was also Networking sessions that will commence
Survey Findings apparent that a small number of in September on a pilot basis.
respondents were not aware of the HR
Overall 86% of respondents advised that service either on the phone or via the We also acknowledge the need to
there were aware of the HR service website. promote our HR service and to seek to
provided by ILCU of which 76% indicated address the issues highlighted in the
that they made use of the service. There were a number of suggestions for survey regarding the layout and content of
HR training/ additional HR services. The the website.
Of those that indicated that they used most common topics requested were in
the service, it would appear that they the areas of: We intend to take on the board the
availed of sample HR policy/ procedures suggestions for the provision of more
templates and telephone advice on how to information on the website and will review
resolve a wide range of employment issues same over the coming months.
ranging from recruitment to performance
management.

An analysis of the verbatim responses
regarding usage of the HR service
indicates that accessibility and ease of
contact to the HR service via phone is of
particular benefit. They value the practical,
professional and up to date employment
law advice in addition to the provision of
HR templates online. The responses
consistently indicate that the level of
expertise and responsiveness is what they
find very helpful. The salary survey
received favourable mention a number of
times.

28 :: CU FOCUS AUTUMN 2016

EMPLOYMENT LAW UPDATE:
PATERNITY LEAVE NOW A STATUTORY
ENTITLEMENT IN IRELAND

On Tuesday, 2 August 2016, The payable by the Department of Social Postponement of paternity leave
Paternity Leave and Benefit Bill 2016 was Protection. Eligibility for payment will be
signed into law in the Republic of Ireland, based on the same PRSI contribution Paternity leave may be postponed if the
paternity leave is now recognised as a requirements as maternity benefit. employee becomes sick before the leave
new legal right in Ireland. The benefit must be claimed within 26 begins, provided the employee has
weeks of the date of birth, or date of complied with their notice requirements.
Paternity leave may be taken at any placement if the child is adopted, and is The credit union should be notified as soon
time from 1 September 2016 and must paid for two consecutive weeks. as possible and provided with a medical
be taken within 26 weeks of the birth (or Paternity benefit should be applied for at certificate. The leave will then begin no
placement in the case of adoption) of the least 4 weeks before the leave begins. later than seven days after the employee is
child. able to return to work, or on another date
Notably, employees are required to agreed between the credit union and the
Who is entitled? apply for a Public Services card in order employee. The leave must be taken within
to obtain the paternity benefit. 26 weeks of the date of birth/ placement.
An employee considered to be a "relevant Employees can register for this card on
parent" of a child will be entitled to two mywelfare.ie. If the baby is hospitalised, paternity leave
weeks’ consecutive leave from their and benefit may be postponed for a
employment to care for their child. Pay during paternity leave maximum of 6 months. Where a baby is
born prematurely, and the employee
A "relevant parent" includes: The credit union is not obliged to pay wishes to change their leave dates, a letter
■ the child’s father; employees during paternity leave, from the credit union confirming the new
■ the spouse/ civil partner/ cohabitant of however it is advised that the credit union leave dates and date of birth/ placement of
treat those employees availing of paternity the child, must be sent to the Paternity
the child’s mother; leave in an equal manner to employees Benefit Section of the Department of Social
■ sole male adopter; or taking maternity or adoptive leave. Top-up Protection.
■ parents of a donor-conceived child. payments may be provided on terms and
conditions decided by the credit union. Conclusion
Same sex couples jointly adopting a
child must choose one parent to be the In the event of top-up payments the Credit unions should implement a policy
“relevant parent”. credit union should require the employee covering paternity leave, stating how
to sign a mandate instructing the employees can apply for it; whether it will
Only one period of leave will apply Department of Social Protection to pay be topped up by the credit union; and the
where there are multiple births or the benefit directly to them or fact that all entitlements are protected
adoptions at the same time. alternatively, simply pay the employee the during the leave. A template has been
difference between their salary and the developed by the HR Department and is
In the unfortunate case of a stillbirth or paternity benefit. available on the ILCU website.
miscarriage following the 24th week of
pregnancy, the entitlement to paternity CALLING ALL THOSE RESPONSIBLE
leave and benefit remains available, FOR HR IN THE CREDIT UNION
within 26 weeks from that time, provided
that the employee satisfies the PRSI Following the recent Survey carried out by the HR Department of the ILCU it has been
requirements.
decided to set up a
Notification requirements
HR NETWORK
The employee must notify the credit
union at least 4 weeks before the date on This is aimed at providing Support and Development for those involved in HR
which they wish to take paternity leave. A
medical certificate setting out the Management in the credit union – essential in these changing times.
expected date of birth or confirming the
birth must be provided or, in the case of We will be “Going Back to Basics” and covering the fundamental issues associated
an adoption, proof of the date of with HR Management – using real issues as case studies. The HR Network will offer
placement. you the opportunity to meet other people dealing with HR issues and situations; share
best practice; learn from the experts; and gain skills which will help you recruit; retain;
The Credit union must certify the manage; and motivate staff effectively.
employee’s paternity leave by completing
form “PB 2: Employer Certificate”. This INTERESTED?
certificate should be submitted to the
Paternity Benefits Section of the Then join us, at no cost to the credit union, in The Red Cow Moran Hotel on Thursday
Department of Social Protection with the 29th September 2016 from 10.00am – 4.00pm.
paternity benefit online application.
For further information please contact Maura Behan, HR Executive, on
Paternity benefit [email protected]

Paternity benefit of €230 per week is

CU FOCUS AUTUMN 2016 :: 29

CU Learn Hub

your place to learn

Co-Operative Learning

When adults are asked to think about information available it can be difficult to experience and understanding to both
learning many of us are transported back to filter to find exactly what the learner effectively comprehend and contribute to
the classroom of our childhoods. We requires. Also, the absence of academic valuable learning through information
imagine ourselves sitting in a disciplined rigor requires the learner to self-regulate sharing with other credit union officers.
fashion under the shadow of a blackboard, the information they view and what they
the smell of chalk dust heavy in the air. take from it. When information is created Each of the accredited, educational
This traditional perspective of education independently from a wide variety of programmes offered by CU Learning &
placed heavy emphasis on the teacher, the sources throughout the world it can be Development provide a blend of both
expert, whose role was to transfer the difficult to see how the pieces all join traditional and innovative educational
knowledge to the student. together to form robust concepts and approaches to support students. The
theories. fundamental core knowledge requirements
In recent years, educational practices in relation to legislation and technical
have shifted, placing the emphasis on The concept of collaborative learning is credit union knowledge are met by
learning rather than teaching to impart not new to credit unions. The co-operative traditional educational resources and
knowledge. How we classify learning has organisation of the credit union movement methods such as tutorials, manuals and
itself been redefined. Basic knowledge has long embraced learning through the information documents. Information
and understanding is just the foundation sharing of knowledge and experiences. sharing of knowledge and personal
for higher-order learning which embraces Collaborate learning opportunities are experiences as learning opportunities is
problem-solving, evaluation, creativity and created at credit union and board level as encouraged at tutorials and online.
strategic thinking. well as at chapter, nationally via ILCU Similarly, assessments are designed to
events and internationally via WOCCU. evaluate the student’s higher order
Many current trends in education have However, as regulated entities who bear thinking skills; problem solving, strategic
been greatly influenced by developments the great responsibility of safeguarding thinking and evaluation, as well as the
in the modern information age. The member’s money, formal, recognized, fundamental technical, factual knowledge.
internet gave us access to teaching and accredited learning must create a
learning materials, completed at a location foundation from which credit union For more information on the accredited
and pace chosen by the learner through officers can carry out their role with a programmes offered by CU Learning &
eLearning; a significant step towards basic standard of competence. From this Development visit CU Learn Hub at
embracing learning outside of the platform, learners can develop their www.culearn.ie.
traditional classroom. Today, with the
advancements in mobile device features,
we find ourselves in the ‘iLearn’ era.
Learners are taking ownership and control
over their own learning, supplementing
formal channels of knowledge acquisition
with informal media such as TedTalks and
YouTube. Learners want to produce and
share learning as well as consume it, to be
drivers of education and knowledge. This
collaborate approach values experience
and discussion as much as it does theory.
Learners are encouraged to share their
own thoughts and experiences as well as
listen to those of other learners whose
insight, while potentially invaluable, may
never be found in a textbook.

Although rich and fruitful, information
overload can offer a downside to iLearning.
Where there is an abundance of

30 :: CU FOCUS AUTUMN 2016

AUTUMN TRAINING
FROM CU LEARNING & DEVELOPMENT

The final quarter of the year is often a busy How can I book onto a training course? Credit Unions and the Consumer Protection
time for training, with a new educational Details on all CU Learn courses are Code (e-Learning) – Newly Updated
semester beginning and CPD scheme available on the CU Learn Hub at The aim of the course is to provide an
requirements finalising at this time of year. www.culearn.ie. overview of the Consumer Protection Code
To support credit union personnel in (CPC) and those areas that a credit union
meeting their learning and development All courses can be booked on the CU must consider, implement and act upon.
needs CU L&D offers a range of supports Learn Hub.
specifically at this time of the year Preparing for a Prism Inspection (ROI) –
headlined by the new Pathways offering, If you are not already set up as a user New
the Autumn Training Schedule, new e- on CU Learn Hub, please contact your CU This is an introductory course on the topic
learning titles for credit unions and this Learn Co-Ordinator in your credit union of Preparing for a PRISM inspection. The
year for the first time the running of the CU who can create an account for you. If you course will cover areas such as the PRISM
CPD Masterclass - which is being held in have any queries, please contact us at system, how PRISM assesses credit
October. [email protected] unions, the 10 Risk Categories assessed
under PRISM and the lessons learned
Some of the new scheduled courses E-Learning options from PRISM inspections to date.
running this autumn include:
• Board Oversight Committee - Reporting CU L&D now offer over 20 e-learning CU CPD Masterclass – The Irish
courses for credit unions in a range of Housing Market – Opportunities
to the Board (ROI) – New topic areas focussing on credit union for Credit Unions
• FRS 102 - Transition Adjustments and requirements. E-Learning is proving to be
more and more popular with credit union This Autumn CU CPD will be hosting a
Disclosures (ROI and NI) – New personnel with over 16,000 e-learning Masterclass on the opportunities
• Implementing and Building upon the courses taken last year by credit unions. presented by the Irish Property Market
for all interested credit union personnel;
Accountability Regime (NI) - New The suite of e-learning courses are including managers, loans officers, credit
• Credit Union Manager/CEO - New regularly reviewed and updated in line committees and leaders in the credit
with current legislation. The Loan union.
Responsibilities (ROI) – New Protection and Life Savings (LP/LS)
• Human Resources: Performance Insurance course was updated in July to This lunchtime event is an opportunity
provide an overview of the Loan Protection for credit unions to explore the
Management – New and Life Savings key policy terms and possibilities presented in the Irish
conditions. Courses developed earlier this Mortgage market and will be hosted by
Updated Courses for this Autumn year include - Grow your Credit Union with Ronan Lyons (Assistant Professor at
All appropriate NI courses have been Digital Marketing and Conduct Rules and Trinity College Dublin and Economist with
updated as per the Accredited Persons the New Accountability Regime (NI). DAFT.ie). Light Lunch will be available
Regime and in particular Credit Union from 12.30.
Operations (NI) is significantly updated New courses to look out for this Autumn
after recent changes in legislation in Dementia Awareness Programme for For those that cannot travel to Dublin,
Northern Ireland. Financial Services (e-Learning) – New the seminar will be made available via a
This course is aimed at public facing live webcast on the day where viewers
In addition the following courses (ROI credit union staff and volunteers who may can interact and ask questions of the
and NI) have had significant changes encounter members with memory loss / presenter.
made to them for the autumn: dementia. The course outlines what
• Data Protection (ROI & NI) – New half memory is and how memory problems The Irish Property Market - Opportunities
can impact on how a person manages for Credit Unions?
day version their finances. It briefly examines the
• Lending to the Self-Employed (ROI) – impact of a diagnosis of dementia and the Venue: Louis Fitzgerald Hotel, Naas
effects of stigma. The training also looks at Road, Dublin
Advanced Lending course refreshed how to make the physical environment Date: Tuesday 18th October
• LP/LS & DBI (ROI & NI) - Free courses more dementia friendly. Time: 12.30-2pm
Fee: FREE for all CU CPD members
for the autumn Through a series of filmed scenarios,
• Role of the Board Oversight Committee the programme explores how staff can Places are limited so advance booking is
approach the following situations: required at www.culearn.ie
(ROI) - Updated • Supportive communication
• Questioning capacity 1 hour CPD for all CPD schemes (Ops &
New course ideas come about through • The question of financial abuse Gov)
feedback from course participants and • Working with relatives/ carers
credit unions, the annual CU Learning &
Development credit union training survey,
and changes in legislation and regulation.
Suggestions for new courses are always
welcome and can be emailed to us at
[email protected].

CU FOCUS AUTUMN 2016 :: 31

INTERVIEW: FINANCE MINISTER

MÁIRTÍN Ó MUILLEOIR

Finance Minister Máirtín Ó

Muilleoir sets out his vision

and priorities, tells us a

little bit about his history

with the credit union

movement and talks about

the importance of credit

unions in local

communities in Ireland and

across the world.

“They say that simplicity of message is
critical in politics, and in that regard my
message is really quite simple – I want to
transform our society for the better. I want
to grow our economy, provide proper public
services and promote equality and
inclusion. And just as in business, I believe
equality and respect must be at the heart of
how we do the business of government as
we seek to deliver for people across society.
I have pledged to work closely with
government and opposition parties to
achieve that vision.
In terms of potential impact, I, like many
others, believe firmly we need more control
over the fiscal levers that will enable us to
create prosperity and tackle disadvantage.
That’s why we fought so hard for so long
to secure the power to set our own rate of
Corporation Tax at 12.5% from April 2018.
Corporation Tax has been the key pillar of
success in the south. We want to replicate
that success in terms of investment, jobs
and prosperity for our people.
I want to work collaboratively to meet the
demands from the people of the north for
more and better public services. But the
funds available to us as a government do
not match the scale of ambition of our
community so I will make every effort to
grow the funding available to us in the time
ahead.
In doing so, I am determined to resist
austerity imposed from Westminster. It is a
deeply flawed, self-defeating agenda that
serves to widen inequalities in our society
rather than address them. Now more than

03232::::CCUUFOFOCCUUS SSPARUITNUGM2N0126016

ever, in the wake of the EU referendum we “I’m a life-long credit union member and a
need to support and stimulate our economy proud son of parents who helped found a
– just as the Scottish government is. I have credit union here in Belfast”
and will continue to press that message
with the British Chancellor, and we in the how they can play a bigger role in delegates in attendance representing over
Executive will do all we can to stimulate the supporting both the public and private 50 countries - a real international, multi-
economy and support employment at this sectors to help address the social and cultural gathering of diversity and talent. I
challenging time. economic challenges within our was delighted to speak at the conference –
communities. As Finance Minister, I am keen the first time it’s been held in the north. I
I’m a life-long credit union member and to work with the ILCU, my Executive am a tireless advocate for the new and
a proud son of parents who helped found a colleagues and others to explore these ideas resurgent Belfast and events like this can
credit union here in Belfast. My parents more fully and to encourage the movement’s serve to showcase the very best of the city
helped establish the Antagonish Credit ambitious plans to invest, modernise and to the rest of the world and provide a
Union in the 1960’s, which had been grow. The future for the credit union welcome boost for our economy. I would
inspired by the Antagonish Credit Union in movement is bright. like to offer my heartfelt thanks and
Nova Scotia, Canada. I am a proud credit congratulations to the Irish League of Credit
unionist steeped in credit union values I was proud and humbled to speak at the Unions and World Council of Credit Unions
globally and here in Ireland. World Credit Union Conference in Belfast for facilitating this tremendous event.
recently. I’m told there were around 1,800
There are two great aspects of the credit ”
union movement we should recognise: the
first is its mission - when someone joins a
credit union it means they want to do better
for themselves, for their family and their
future. That inspires me as Finance
Minister.

We want to move from a peace process
to a prosperity process, and that ambition is
at the heart of the credit union movement.

The second great value of the credit
union movement is solidarity - solidarity
between communities and internationally.
Over generations, it is a movement that has
been driven forward on solid principles of
social inclusion and empowerment –
providing access to high quality and
affordable financial services for all in
society.

And what is particularly true in times of
austerity and challenge is that the credit
union movement is always there. When it
comes to Christmas – and September,
when children return to school – thousands
of families turn to their local credit union for
support.

I want to be part of a government that
supports the Credit Union movement to
invest, modernise and grow in order to
achieve its ambitious vision for the future.
Not only is it the right thing to do, it
complements the Executives priorities for
fair and inclusive prosperity for the benefit
of all the people.

I met recently with the Irish League of
Credit Unions to discuss their ideas about

CUCFUOFCOUCSUASUSTPURMINNG20210616::::33033

Kiltimagh Credit Union celebrates
40 years of service in local community

In March 1973 a Community Kiltimagh Credit Union Staff & Volunteers celebrating 40 years of service in the community.
Council was established in
Kiltimagh town. Its aim was to founder Directors and During this time, the credit recognised for. Kiltimagh, like
promote the social, cultural, Supervisors and remains the union has benefitted from the so many other rural towns was
and economic welfare of the corner stone of every decision input and expertise of 64 brought to its knees by the
people. Many new initiatives made today. Directors and Supervisors recession but so many
were undertaken to develop each of whom brought their groups, organisation and
Kiltimagh and one of these Over the last 40 years own skills set to the table. We committees have developed
initiatives was to try to Kiltimagh and District Credit are also fortunate to have our and fought back against all
establish a Credit Union in the Union has undergone much band of volunteers working in the odds. The Policy in
town. development and change, for the background *and we truly Kiltimagh Credit Union is, and
example the purchase of our appreciate their input. I know always has been, to engage
Just under two years later, first premises on lower Main that the present Board will with these groups and support
on 16th February 1976, and St, massive Information continue to provide leadership them and the community as a
with the support of the Irish Technology development and and commitment to the Credit whole in whatever way we
League of Credit Unions and exciting projects in that sector Union into the future. can. There is a credit union
other credit unions in Mayo, in the near future, staff slogan – "Credit union at the
Kiltimagh District Credit Union expansion and the The success of Kiltimagh heart of the Community", and
was registered and licenced to establishment of the Credit Union has been and Kiltimagh Credit Union is right
operate. extremely successful Savings continues to be down to the at the heart of the Kiltimagh
Scheme with our local community spirit that this Community.
Credit union savings around Schools to name but a few. town has always been
this time amounted to £1,328
and the membership stood at
71. Now membership stands
at 4000 with savings of €17
million, loans of €6.2 million
and total assets of €20
million. So there is no doubt
about the old proverb that
great oaks from little acorns
grow.

We owe our success to the
vision and dedication of those
founder Directors and
Supervisors. They embraced
the credit union philosophy of
‘not for profit but for service’.
The culture of Kiltimagh
District Credit Union was and
still is that we are here to
serve our members and this
culture was first promoted
and established by the

34 :: CU FOCUS AUTUMN 2016

Clonard Credit Union First in Northern Ireland
to launch car and home insurance with
Coveruni.co.uk

Earlier this year, Clonard Credit Union Ltd. announced the Garrett Dwyer from Insurance Providers Coveruni.co.uk, Jennifer
launch of new insurance products via Coveruni.co.uk. Forde from Clonard Credit Union, and Brian McCrory, President of
Coveruni.co.uk is a website based product that offers the Irish League of Credit Unions, pictured at the launch
members greater accessibility, good value and most
importantly excellent insurance cover.

Speaking about the new Coveruni.co.uk insurance product
range, Ruth Clarke from Clonard Credit Union said:

“We are delighted to announce the introduction of great
value insurance solutions for credit union members with the
Coveruni.co.uk range. These products are very competitively
priced and offer a wide range of benefits to our members. To
get a quote or to get more information about Coveruni.co.uk
insurance, members simply need to log on to
www.Coveruni.co.uk”

Oldcastle Credit Union honours staff
member’s 35 years’ service

The Directors, manager, service to Oldcastle and has a great memory the manager and staff
staff and volunteers Credit Union. What an for events, etc. Her and indeed all members
gathered to wish a achievement and a dedication to all and of Oldcastle Credit
Happy retirement to service. friendships made along Union, we wish Goretti
Goretti *Goldrick Goretti was affectionately the way will never be much happiness in her
recently, and to thank called Mrs CU as she forgotten. On behalf of many years ahead. Enjoy
her for her 35 years’ knows all the members the board of directors, and see you around.

Athboy Credit Union
sponsors local Macra Festival

The Launch event of the 2016 Blue Jean Country Queen Festival, Sean Finan Macra Pres, Susie Manson Winner 2015, Nick Murphy
sponsored by Athboy Credit Union Athboy Credit Union Manager, Gerry Cooke Athboy Credit Union Chair

Athboy Creidt Union were delighted to be the main sponsor for the 29th Annual Blue Jean Country Queen Festival, held in June
of this year. Bringing together entrants from counties all over Ireland, the Festival offers a full weekend of entertainment,
culminating in the crowning of the Festival Queen, which was won this year by Dearbhla O’Connor, from Louth.

CU FOCUS AUTUMN 2016 :: 35

Derry Credit Union pays
out its one millionth loan!

Derry Credit Union Limited has announced Staff from Derry Credit Union Limited pictured with William Moore, recipient of the 1 millionth
the pay-out of their one millionth loan – the loan issued by the credit union earlier this year.
first credit union in Ireland to do so.
Throughout the summer weeks, they will Joan Gallagher continued, ‘We have have been able to go if I didn't get a loan
celebrate this milestone with their ‘Thanks demonstrated what can be achieved when from the credit union and I'm really
a Million’ campaign, highlighting the we believe in ourselves and work together. thankful for that. The credit union has also
positive impact of one million loans issued Our record growth in membership, shares contributed to my education, while a
and the benefits of credit union and loans issued is testament to the need student and while working, by approving
membership. for our services and reflects the fact that loans to help me pay for a computer,
we exist to serve the best interest of our courses, books, exams, etc. I know I don't
Derry Credit Union Limited has been member and not the bottom line. We are have to worry about repayments because I
one of the most significant developments rooted in the community. Our board is a was allowed to set a repayment that's
in the fabric of Derry City. Its positive voluntary board. Our members know our manageable for me and the interest I'll
effects have been felt by each of its directors and staff. This gives us repay is the lowest you can get too. I never
members and by the local economy that credibility, gives members confidence, and really took time before to think about the
has benefitted from the £550m in loans makes the credit union an approachable, number of times the credit union has
contributed to it. Derry Credit Union’s friendly place to do business.’ helped me. Now thinking about it I'm really
phenomenal growth is testament to the thankful for all the times I've been pulled
commitment of credit union members, the The credit union member who took out out by it. Thanks!
professional service extended by staff and the millionth loan, William Moore, added:
the talent and knowledge of its voluntary ‘Everyone is aware that the credit union Patricia Doherty concluded, ‘On behalf
Board and committees. isn't all about profit and that's important. of the Board of Directors, our Supervisory
People know that the money they save and Committee, Management and staff, I
Derry Credit Union’s General Manager borrow is benefitting themselves and other would like to thank all our members who
Joan Gallagher explained, “Since 1960, we members and any profits come back to have borrowed and repaid their loans over
have issued one million loans with a total members in dividends and interest the years. Thanks a million! The credit
value of £550,000,000 – funds made rebates, so it's win-win. The credit union union welcomes the opportunity to
available entirely by members through the has always been there when I needed continue to play a significant part in the
pooling of their savings. With their credit money. With credit union loans I've never future of the city and in the lives of our
union loans, borrowing members have missed anything that's important due to members.’
invested in their children, families and money concerns, like my brother's
local community. The credit union model wedding in Thailand this year. I wouldn't For more information, visit our website
works.’ www.derrycu.com

Derry Credit Union President Patricia
Doherty concurred. “The credit union
model works because it is open, inclusive
and democratic. We provide savings
facilities for members that reward them
with an annual dividend. We have
demonstrated that good members can and
will repay their loans, even if they do not
have substantial income or regular
employment. We reward borrowers with a
rebate of interest. Our loyal membership
has passed down the values of the credit
union from generation to generation. To
date, 50,500 members have actively
participated in Derry Credit Union.”

In addition to the £550 million paid out
in loans to members, the credit union has
also paid out £44.5m in dividends to
savers and £12.4m to borrowers in interest
rebates. Many members rely on their
annual dividend and interest rebate to pay
for their Christmas expenses, and many
local traders consider each November’s
Dividend Day to be the start of the
Christmas Season.

36 :: CU FOCUS AUTUMN 2016

Progressive Credit Union supports local
charitable organisation with €60,000 in funding

Progressive Credit Union is delighted to Staff from Progressive Credit Union present their latest donation to Remember Us, bringing their
provide continued support to help support to date to €60,000 of the charity.
Remember Us, a charity that provides a
unique social outlet to people with special union’s contribution to €60,000.00 in Having seen what the group has
needs, and their families, in the North funding to date. achieved in two years is amazing, and we
Fingal region. The charity is all about have no doubt this commitment and hard
empowering their members to live Progressive Credit Union are proud to be work will get them where they deserve to
independent lives and integrate into their involved with such a focused and caring be. All the Staff and Directors of
local community. It is the families that are group. We see this new premises not only Progressive Credit Union wish the
the members; this means that not only the as the new Remember Us home, but as an Remember Us group the best of luck and
individual with special needs benefits from important facility for the community of are delighted to be supporting them on this
our group but their parents/carers and Fingal to avail of the services that “Home” stretch.
siblings too. Remember Us provides.

The group have been fundraising for the
past two years to create a permanent
facility in the Fingal Area that families can
use. Having secured their premises,
Progressive Credit Union wanted to
kickstart fundraising for Phase 2 of the
project, that will allow the new premises to
be fully kitted out for use, and did so with a
donation of €30,000. This brings the credit

Bannvale Credit Union reaches
5000th active member milestone

Debbie Jardine, a dedicated
foster carer from Portglenone,
Co Derry, pictured with
respresentatives from
Bannvale Credit Union.
Debbie recently opened an
account with the credit union,
becoming their 5000th active
account holder, and was
thrilled to learn that she'd won
a voucher for Lunch at the
exclusive Thermal Spa Resort
at Galgorm to mark the
milestone.

Bannvale Credit Union
welcomes members from the
local community, offering them
a safe place to save their
money, and access to
affordable credit as and when
they might need it. Visit
www.bannvalecreditunion.com
for more information

Drew McDonald, Director of Bannvale CU, with winner Debbie Jardine and Assistant Manager
Angela Hegarty.

CU FOCUS AUTUMN 2016 :: 37

Ashbourne Credit Union Open Day

To celebrate all our existing and Members of staff pictured at Ashbourne Credit Union
new services Ashbourne Credit Open Day
Union have to offer, we decided to
hold an open day for existing
members and the public. We
hired a marquee and had stands
manned by our staff, promoting
the services we offer. The event
was attended by over 200 people
and was a great success. We had
finger food, an ice cream van and
a face painter to entertain the little
ones. Our member’s car draw was
held on the day, and we also had
two cash draws for all in
attendance. To encourage new
membership, we had a ‘Join a
friend’ and food hamper draw,
which was a great success. We
felt it was important for us to give
something back and spend the
day with our members and to see
new faces. The Open Day was
such a fantastic success that we
have decided to have it as an
annual event.

Health Services Staffs Credit Union
re-open refurbished Cork premises

Our Cork branch of Health Services Staffs Sean Hosford CEO of Health Services Staffs Credit Union with some of the local residents of
Credit Union, and formerly St Gabriel’s the newly refurbished branch of HSSCU in Cork.
Credit Union, returned to its former
location at 34 St. Patrick’s Quay in August
2016. Having relocated to Penrose Wharf,
Penrose Quay for six months of renovation,
the newly refurbished branch is ready to
welcome members back to its location
overlooking the River Lee. Members will be
happy to know that they can now visit us
for a look at our newly refurbished facility
and that opening hours will remain the
same as before.

Former Director of St Gabriel's Credit
Union, William Casey, who is currently on
the Liaison Committee for Health Services
Staffs Credit Union members in Cork said:
“It is great to be back in our refurbished
office, it’s a new look for a new era in
members’ services.”

For more information visit
www.hsscu.ie

38 :: CU FOCUS AUTUMN 2016

I N T E R N AT I O N A L
CREDIT UNION DAY 2016

ICU Day will be celebrated this year on
Thursday, 20th October 2016. It offers an
excellent opportunity to promote your
credit union while telling members and
potential members about the impact
credit unions' have on people's lives
locally and indeed worldwide.

This year’s theme, “The Authentic
Difference” celebrates the uniqueness
of credit unions. Credit unions are not-
for-profit financial cooperatives that
provide an effective and viable
alternative to for-profit financial
institutions for over 217 million
members in 105 countries. Worldwide,
57,000 credit unions exist to serve
their members, providing a great place
to save money and access affordable
loans.

This year’s celebrations have the
potential to raise awareness of credit
union benefits and ultimately attract
more members worldwide-
contributing to the World Council’s
goal of adding at least 50 million new
members by 2020. This is a great
opportunity for your credit union to
raise awareness about the great work
that you are doing and give members
the opportunity to get more involved.
Support packs were distributed to all
ILCU affiliated credit unions in early
September with posters, media tips,
press release templates and
promotional ideas.

The Credit Union Movement only
came to Ireland in 1958 but it tapped
into the co-operative spirit in
communities all over the country. It's a
worldwide phenomenon that just
keeps on growing … which is a real
cause for international celebration!

It is a unique people-centred service
to meet the unique needs of ordinary
people. Anyone can join a credit union
- one of the differences from opening a
bank account is that you become a
member – and not just a number. This
theme honours credit unions’ mission
to put people before profit. All credit
unions share a common goal to offer
access to affordable financial services
to all their members and provide even
the most financially disadvantaged the
tools and the opportunities to be
financially self-sufficient. This is the
credit union difference that makes a
real impact.

CU FOCUS AUTUMN 2016 :: 39

Legislative
Update

Payment Services Directive 2 (“PSD2”)

Payment Services Directive 2 is an EU electronic payments. At this stage it is
Directive to regulate payment services considered premature to impose the
and payment services providers requirements of the PAD on the post
throughout the EU. One of its office network and credit unions”.
objectives is to increase participation
in the payments industry from non- Minimum Competency Code
banks and to provide for a level- (“MCC”)/Minimum Knowledge and
playing field by harmonising Competence Requirements as set out
consumer protection and the rights in the Mortgage Credit Regulations
and obligations of the payment 2016
providers. While it would appear that The ILCU met with the Central Bank
the infrastructure within the scope of of Ireland at the end of June to
the Directive is not widely in operation discuss their proposal to review the
in credit unions currently, the Minimum Competency Code, 2011.
Department of Finance is holding a We have been informed that the
consultation process in relation to this review will commence with a
and the ILCU will make submissions consultation paper which will be
on this basis. available in October/November 2016.
The Central Bank has indicated that
Payment Accounts Directive (“PAD”) the credit unions will be given a 3
There will be no obligations being month consultation period. The final
imposed on credit unions arising from version of changes to the MCC, 2011
the Payment Accounts Directive at will be published in Q3 2017. It is
this current time. The Department of expected that this review will expand
Finance confirmed to the ILCU that the scope of the MCC. Until we are in
following the consultation process, the a position to advise more on this,
Minister for Finance has decided to please ensure that if your credit union
exercise his discretion by not is providing mortgages, you are
extending the requirements under the complying with the Minimum
Payment Accounts Directive to credit Knowledge and Competence
unions at this time. Requirements as set out in Schedule
1 of the Mortgage Credit Regulations
According to the publication of its 2016. We will be in touch with you
proposed course of action following further when the consultation paper is
public consultation, the Department issued and encourage all credit
confirmed that “[f]ollowing discussion unions to reply to the consultation
with An Post and the credit union paper when it is published.
representative bodies, it is proposed
to not extend the requirements under MCD - Suite of Mortgage Documents
PAD to these institutions at this time. In the last edition of the CU Focus, it
An Post and the credit unions are was noted that the Legal Department
currently advancing plans to provide was drafting a suite of documents to
payment services. These assist credit unions in the process of
developments will be important mortgage provision. These documents
additions to the payment services are almost complete and will be made
infrastructure in Ireland and will assist available shortly to credit unions.
in efforts to address financial
exclusion and promote the use of

40 :: CU FOCUS AUTUMN 2016

Legislative
Update

Brexit- What next?

There is an extensive amount of work to • Only complaints in days 2 and 3 (or The event will cost £60 per person and a
be done to establish what lies ahead. beyond) will be reported back to the maximum of two officers per credit union
Much of the regulation in place relating to FCA in the annual return. can attend. This cost will include coffee
financial matters is derived from EU and two course lunch. We believe this
legislation. The future shape of the United ILCU Response to Northern Ireland represents exceptionally competitive and
Kingdom’s (UK) and specifically Northern Executive’s Programme for Government excellent value for money. Demand is
Ireland’s (NI) relationship with the EU will At the end of May, the Northern Ireland therefore expected to be high so please
be unclear for some time. Executive published the draft Programme ensure that you reserve a place as soon
for Government which outlined what the as possible.
Credit unions must continue to abide by document refers to as “the ambition the
their obligations under NI and UK law. Executive has for our society”. Expert speakers from the money
These obligations and regulation will The draft framework identifies the laundering and financial crime industry
remain applicable until any changes are Executive’s purpose as “improving will guide credit unions through the forum
made. wellbeing for all – by tackling focussing on regulatory expectations, the
disadvantage, and driving economic role of the money laundering reporting
Credit unions should ensure that they growth” which is translated into 14 officer, the psychology of money
continue to keep all ‘Brexit’ developments outcomes and measured using 42 laundering and financial crime, the
under close review. indicators. The document lists a series of making of suspicious activity reports and
aspirations to improve Northern Ireland. upcoming requirements under the Fourth
The ILCU will continue to liaise closely They include a regionally-balanced Money Laundering Directive.
with all key regulators and government economy, a more equal society and giving Organisations including the National
officials during this period. We will young people a better start. Crime Agency, Financial Conduct
continue to keep credit unions updated Authority, HM Revenue and Customs,
with all developments. The ILCU submitted its response to the Police Service of Northern Ireland, HM
Programme for Government and now Treasury, Department of Justice,
New complaints handling rules awaits further engagement with the University of Ulster, Harbinson Mulholland
As from 30 June 2016, the FCA has Northern Ireland Executive. and Maze Investigations, Compliance &
introduced new changes to complaints Training Ltd will be in attendance.
handling as a result of its policy statement The full response can be found within We strongly recommend that all credit
15/19. The main change within the new the member’s area under the Legal union MLROs should attend this forum.
complaints rules is the extension of the department>Northern Ireland>Lobbying. For more information on this, please
next business day rule to the close of contact Martin Fisher, Regulatory and
three business days after date of receipt. Corporate membership under the Credit Legal Officer NI at [email protected]
A complaint handled within this time will Unions and Co-operative and Community (telephone 07553970054).
be subject to less stringent handling. Benefit Societies Act (the Act).
Under the new rules, the FCA introduces The Year End documentation issued to
a requirement for the firm to send a credit unions will contain new corporate
written acknowledgement (a summary membership application forms to allow
resolution communication) to the credit unions to accept corporate
complainant where their complaint has members. A guidance document will be
been resolved by the close of the third issued in the autumn to credit unions
business day after receiving the outlining the frequently asked questions to
complaint, telling the complainant about assist credit unions who may want to
their right to refer their complaint to the undertake such activities.
Financial Ombudsman Service (the
Ombudsman). Financial Crime and Money Laundering
In providing data returns in relation to Forum
complaints, credit unions will continue to A Financial Crime and Money Laundering
report as they always have. The reporting Forum is being organised by the ILCU and
requirements are best summarised below. held in the Glenavon House Hotel on
• If resolved within days 1, 2 or 3 credit Tuesday 4 October 2016.

unions will have to send a summary
resolution communication to the
complainant.

CU FOCUS AUTUMN 2016 :: 41

Economic
Commentary

Overview and investment spending. For the year as average 0.4% and 0.2% respectively in
a whole growth of 4 per cent is anticipated 2016. Looking to 2017, CPI and HICP
There was widespread surprise and with close to 3 per cent growth projected inflation are forecast to average 1.5% and
consternation when the published in 2017. This slowdown partly reflects an 1.4 % respectively.
National Income and Expenditure assumed negative impact from the Brexit
Accounts (NIE) for 2015 showed an vote. Personal consumption expenditure Domestic Demand
increase in Gross Domestic Product is forecast to grow by 4 per cent in 2016 Despite the uncertainty created following
(GDP) of 26.3% and an increase in real and by 2.3 per cent in 2017. The forecast the UK referendum, domestic demand is
Gross National Product (GNP) of 18.7%. is driven by the strong outlook for the expected to drive growth over the
These headline figures reflected a change labour market, incomes and momentum projection period. The outlook for
in the amount of capital assets recorded from the release of pent-up demand. consumption and investment
in Ireland, mainly due to corporate However it also reflects the unwinding of spending remains robust although growth
restructuring by multinational firms some positive factors such as the boost to rates will moderate. Economy wide
located here. The activity generated by disposable incomes from lower energy domestic demand is expected to grow by
this much larger capital base is now prices. In addition, the impact of the 6.4% in 2016 and by 3.4% in 2017.
included in Irish GDP. Following these Brexit referendum, while likely to be
revisions, Irish GDP now includes a very relatively modest in 2016 will probably be The Labour Market
significant amount of activity carried out in more evident in 2017. The Central Bank expects employment
other countries but recorded in the Irish growth of 2.1% in 2016 with growth of
national accounts. As a result, both the Following on from marginal deflation in 1.3% predicted for 2017. With modest
levels and the rates of change in Irish 2015, the Consumer Price Index (CPI) labour force growth expected, this should
GDP and GNP are not currently reflecting and the Harmonised Index of Consumer see further strong declines in the
the actual level of economic activity Prices (HICP) inflation are expected to
carried out in Ireland. To get a more
accurate measure of the level of activity in
the domestic economy it is necessary to
look beyond the headline GDP and GNP
figures.

The Central Bank projects that the
economy will grow by 4.9% in GDP terms
this year and by 3.6% in 2017. The
outlook has been revised downwards
following the outcome of the UK
referendum on membership of the
European Union (Brexit). Relative to a no-
Brexit baseline, projected GDP growth was
reduced by approximately 0.2% and 0.6%
in 2016 and 2017, respectively. The
Brexit decision will have a negative impact
on Irish GDP, employment and incomes.
The main channels through which the
effects of Brexit will be felt include trade
via weaker foreign demand, foreign direct
investment and the labour market.
Furthermore, the likelihood of heightened
levels of uncertainty could weigh on
consumer and investor confidence.

Underlying domestic demand growth
moderated in the first quarter of 2016
reflecting offsetting trends from consumer

42 :: CU FOCUS AUTUMN 2016

THE LABOUR MARKET

For the year as a whole the
Central Bank anticipates

labour force growth of 0.4%
with a pick up to 0.6% in 2017.

unemployment rate. Employment June 2015. by 10.6% in 2015, although the rate
forecasts were revised downwards For the year as a whole the Central of growth moderated significantly as
following the outcome of the Brexit the year progressed. Data for January
referendum. The overall labour market Bank anticipates labour force growth to May 2016 points to a slight pick-up
outlook remains positive however with of 0.4% with a pick up to 0.6% in in the pace of growth compared to the
numbers at work expected to exceed 2 2017. This outlook combined with end of 2016, with annual increases of
million in 2016. The latest data from the employment forecasts above 6.9%. Diverse regional patterns
the Quarterly National Household should see further marked declines in persist in the dynamics of residential
Survey (QNHS) for the first quarter of the unemployment rate. The latter is property prices, with prices in Dublin
the year showed continued strong expected to average 7.9% in 2016 currently increasing at 4.8%, while
gains in employment (+2.4 per cent and 7.2% in 2017. More generally, prices outside Dublin are rising by
year-on-year) with an additional the current pace of employment 8.5%. Apartment prices in Dublin fell
46,900 persons at work. Within this, growth and the marked rate of decline by 1.1% in the year to May – the first
12 of the 14 sectors recorded gains in unemployment highlights the need annual decline since May 2013.
with marked increases recorded in for stronger labour force growth.
accommodation and food services, Commercial Property
construction and administrative and Pay The latest data from the MSCI/IPD
support services. More recent labour Wages are projected by the Central shows that commercial property prices
market data from the CSO has also Bank to increase on average by 2.5% continued to grow at a robust pace in
been positive with the seasonally per annum in both 2016 and 2017. the first quarter of 2016. On an
adjusted unemployment rate at annual basis overall commercial
7.8% in June, down from 9.4% in Residential Property property prices increased by 17.7%.
Residential property prices increased

CU FOCUS AUTUMN 2016 :: 43


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