Payments CUSO ProjectPage 1
Payments CUSO Presentation
February 26th, 2011
Barry O’Mahony
Programme Manager, CUSO
,
Best Practice Meetingfor Youth Development
Payments CUSO ProjectPage 2
Contents
• Background
• What are members saying?
• CUSO Project
• The Payments Landscape
Payments CUSO ProjectPage 3
Background
• The Economic Environment
• Regulatory Change
• Opportunity for the Credit Union Movement
• The Vision– ILCUnet– ILCUbis
Payments CUSO ProjectPage 4
SAFESTRONGSECURE
ILCUbis - Credit Union Business Intelligence Service
Payments CUSO
Your IT Supplier Service
New Services
Credit Union A Ltd
Credit Union B Ltd
Sub OfficeCredit Union B Ltd
Irish League of Credit UnionsILCUnet
ILCUnet – Your Private Credit Union Network
Payments CUSO ProjectPage 5
ILCUbis – CU Business Intelligence Service
Tool used to help CUs make Informed DecisionsLets CUs graphically analyse their performance CUs can compare their performance against other CUsUse forecasting tool to see how CU will perform if projections are accurate
Business Intelligence
Payments CUSO ProjectPage 6
What are the members saying?
Investing in our Future Research – August 2009 highlighted demand for new services
“…..members are open to new product and service innovations that meet real needs and enhance already high levels of customer satisfaction”
“…in order for credit unions to fully meet the financial needs of members… they need to be in a position to deliver products and services which have become integral to how members manage their financial needs.”
Payments CUSO ProjectPage 7
CUSO - The Vision
The strategic vision for a Payments Credit Union Services Organisation (‘CUSO’) is to provide ALL Credit Unions with the option of access to electronic payments products and services, specifically;
Direct debits;
Credit transfers and standing orders; and
Potentially, debit cards,
in a cost efficient manner.
Payments CUSO ProjectPage 8
Resolution No. 34 of League AGM 2010 - Payments CUSO Project
– Up to €1.55 million contribution from the Irish League of Credit Unions
– At least €1.55 million contributed by credit unions in units of €10,000 (or Sterling equivalent)
– minimum of 155 credit unions required for funding
CUSO – The Approval
Payments CUSO ProjectPage 9
A Regulated Entity
Enabler for the future
A Platform for member services
A mechanism to give control to Credit Unions
CUSO The Project
Payments CUSO ProjectPage 10
The Structure
• Be licensed as a Payments Institution;
• Passport into NI once established
• Compliance with SEPA and PSD:
Single Euro Payments Area
Payment Services Directive
• A unique development
Payments CUSO ProjectPage 11
Why CUSO?
• Regulatory support
• Control over our own destiny
• Need to provide a platform for alternatives to cash and cheques
• Economies of scale
Payments CUSO ProjectPage 12
The Payments Landscape
• Goodbye cheques?
• Cash…..start packing!
• Cards
• Internet
• Mobile payments
• Hello virtual money
Payments CUSO ProjectPage 13
Cash……start packing!
• Most expensive mechanism for payments
• Cost per Irish household: €1,590pa– €2,370,000,000 cost to the nation every year!
• Alternatives increasingly available
Payments CUSO ProjectPage 14
The Alternatives
• Cards: Credit, Debit, Pre-Paid– Chip & PIN– NFC (Near Field Communication)
• Internet
• Mobile– NFC– Smart Apps
• Virtual- Facebook Credits- PayPal