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The ILCU’s Research & Development Departmentcontinued its examination of the current and futuretrends that are affecting the Irish Credit Unionmovement. The Department published QuarterlyBulletins which aim to keep credit unions informedof key data required to assist in a structuredapproach to planning. The Quarterly Bulletins arenow published as part of the CUFocus magazine asthe ILCU Financial Data Review.

A key project for Research & Development this yearhas been the extension of the Social Finance projectto include examining the development of a Socialand Community Development Treasury with aparticular focus on Social Housing. A presentationwas made on this topic at the Chapter Policy Forumin 2008 and feedback was received on this excitingproject at the Chapter Officers’ Forum in February2009. Work on this project continues and a paperwas submitted to the ILCU Board in September 2009.It has been decided to survey credit unions on thismatter in early 2010. The Research & DevelopmentDepartment continues to represent the ILCU andpresent on its behalf at various social finance events.

Another important project which was supported bythe Department was the Capital Policy project. Theproject was completed in early 2009 and the revisedILCU capital policy was approved at AGM 2009.

Other projects which the Department worked on in2009 and will continue to develop in 2010 includethe negotiation of a protocol between the MoneyAdvice and Budgeting Service and the ILCU,Regulatory Reserves Ratio risk-weighted approach(in conjunction with Financial Regulator’s staff)credit union surveys etc.

The Department supported other sections of theILCU office in such projects as Section 35, PEARLSRatios Chapter comparisons, Business Intelligence,Dividend Reporting for credit unions etc. TheDepartment was also involved in the co-ordination ofthe Stakeholders’ Forum held in June and is currentlyproviding support to the ILCU Review SteeringGroup.

Research & Development

The Project Management Office (PMO) wasestablished in March 2008 to support and overseethe portfolio of projects for the Irish League of CreditUnions. In doing so, the PMO provides assistance todepartmental heads and the CEO in scoping projectsand all component parts. The function of the Project Management Office is to:

● provide assistance to each department whendefining projects and project interfaces

● provide assistance to each department inpreparing project documentation, i.e. tenders andRFPs, work breakdown structures, projectstakeholder analysis, risk identification, milestoneplans and project management plans

● provide assistance to the CEO and League Board inunderstanding project needs and how they fit intothe overall movement strategy

● complete project audits as required

Project Delivery MethodologyThe project methodology which was adopted for allprojects in 2008 was specifically designed to supportall League project initiatives and is endorsed by boththe League Board and Supervisory Committee. Delivering projects via the agreed methodology hasproven effective in that:

● all projects underway at the League office are fullydocumented as to their scope, objectives andalignment with the movement strategy

● all projects have a Board Director assigned tochampion each project through the process

● all project progress and status reports are availableto all Board Directors via a dedicated project website

● projects have been added to the agenda of eachcommittee meeting

Project Reporting SystemIn January 2009, a dedicated web site was deliveredto track and support project status reporting. Thesystem was designed so each senior manager and/ortheir team members can provide updates directlyinto the system for the projects they sponsor. The benefits of the Project Management SystemInclude:

● views are customisable as project status reportsare presented based on committee membershipand/or project sponsorship

● it enables project sponsors to report on any issues,risks and decisions required in relation to a project,the progress for the previous month and activitiesplanned for the coming month

● a red, amber, green status bar is displayed to showhow the project is progressing

● it enables project sponsors to upload all projectrelated documentation which can be downloadedand viewed by all league board directors andsupervisors

The projects governance committee is the leagueboard management committee who has primaryresponsibility for reviewing and approving all newproject requests and formally closing out projectsthat have either successfully met their objectives orhave been subsumed into other projects.

From January to December 2009, the project’sgovernance committee reviewed projects within theproject portfolio and:

● reviewed 19 project submissions

● approved 11 projects to be officially closed in theproject portfolio

● approved 7 projects to be added to the projectportfolio

● re-opened 1 project in the project portfolio

● recommended 3 additional projects to be added tothe project portfolio

● ensured that all new projects were appropriatelyscoped, allocated a project number and registeredon the project management system

Business Project SupportThe PMO is responsible for actively supporting,initiating and also delivering strategic projects forthe League.

Project Management Office

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ICT StrategyPrior to the establishment of the ICT Office inSeptember 2009 the PMO took on the responsibilityfor initiating the ICT Strategy business intelligenceproject. At AGM 2009 an invitation was made to allcredit unions to engage in the process to define themovement’s business intelligence requirements.Between May and August 2009 several focus groupswere held across the country to introduce theconcept of business intelligence and to help creditunions understand how such a system could servetheir information needs. The project has now beenhanded over to the ICT Office who will translate theoutputs from the countrywide focus groups into ascope for the delivery of the first phase of amovement-wide business intelligence system inearly 2010.

Payments Strategy Cash and cheques still continue to be the mainpayment methods in use today in Ireland and the UK,followed by credit and debit cards, and automatedmethods such as Direct Debits, Direct Credits andthe Faster Payments Service which are available inthe UK.

In the UK, it is expected that in value terms, personaldebit card spending will overtake cash spending in2010 and in volume terms, cash payments will beovertaken by non-cash methods in 2015. Over thenext ten years, the underlying trends away from cashwill continue and may be accelerated with theuptake of contactless cards and prepaid cards.Similar trends are also expected in Ireland but thetimescale is not as definitive.

The overall message is that the delivery of paymentsis moving away from traditional cheque and cash tomore modern solutions. Pressure will continue toreduce the use of cheques and cash and replacethese with other solutions based around cards,electronic payments and newer channels such ascontactless cards, prepaid cards and mobile phones.In Ireland, it is expected that stamp duty on chequeswill rise further and stamp duty on cards will reducein order to incentivise consumers towards morecost-effective methods of payments.

Against this background, the ILCU continues toexamine ways in which credit unions can becomereal participants in the payments sector and alsoembrace newer payment methods as they becomeavailable.

■ Access to the Clearing SystemsOver 20 credit unions now have access to the Irishclearing system through an agency agreement withBNP Paribas. In addition, there are a similar numberof credit unions operating through CU Solutions andBank of Ireland (this service provides ATM access aswell as EFT).

■ Credit Union Current Account – Northern IrelandNewry Credit Union Limited launched its credit unioncurrent account service in May 2009. The service isdelivered by the Co-operative Bank which is runningthe service on behalf of credit unions.

Payments Credit Union ServicesOrganisationTo support the delivery of a movement-widepayments services solution, in July 2009 the PMOinitiated and completed the tender process for theselection of a vender to deliver a business case andimplementation plan for a Payments Credit UnionServices Organisation (CUSO). A Payments CUSOwould facilitate movement-wide access to solutionssuch as clearing systems and provision of debit cards,whilst also enabling movement-wide economies ofscale. There were 7 responses received to theinvitation to tender with PriceWaterhouseCoopers,securing the project by submitting the winningtender. The project commenced in September andthe completed business case and implementationplan was successfully delivered in December 2009.Additional project work will continue in 2010, andassuming the outcomes warrant it, the business caseand implementation plan will be brought forconsideration to the ILCU AGM in April 2010.

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5,076 credit union directors, supervisors and staffwere trained by ILCU during 2009 - an increase of20% on 2008. This year also saw the graduation ofthe first classes for the Advanced Certificate in CreditUnion Practice (ACCUP) and the formal recognitionof ACCUP as a minimum competency requirementby the Financial Regulator in the Republic of Irelandand endorsement of the programme by the Registrarin Northern Ireland.

ACCUP In July, the first set of graduates from the ACCUPprogramme were conferred at a ceremony held inthe Waterfront, Belfast. ACCUP is a unique, credit union-focused,competency-based programme designed to meetthe training needs of all credit union personnel byfocusing on three learning pathways for directors,supervisors and staff respectively. The distancelearning programme consists of six modules. Themodules include three core modules, two role-specific modules (based on the role played in thecredit union) and one elective module chosen by theparticipants from five available options.

In addition to the close to 200 participants who havealready graduated ACCUP, another 500 participantshave signed up to and are currently completing theACCUP 2009/2010 programmes. ACCUP workshopsare provided across six regions using trainingfacilities provided by local credit unions, and sincerethanks are extended to the following credit unionsthat have kindly provided their services for theACCUP programme to date:

- Antrim Credit Union Limited- Armagh Credit Union Limited- Baldoyle/Portmarnock Credit Union Limited

- Ballyhaunis Credit Union Limited- Bagenalstown Credit Union Limited- Bandon Credit Union Limited- Cahir Credit Union Limited- Clones Credit Union Limited- Drogheda Credit Union Limited- Edenderry Credit Union Limited- Granard Credit Union Limited - Killarney Credit Union Limited- Letterkenny Credit Union Limited- Mullingar Credit Union Limited- New Ross Credit Union Limited- Newry Credit Union Limited- Roscommon Credit Union Limited - St Ailbe’s Credit Union Limited- St Columba’s Credit Union Limited- St. Raphael's Credit Union Limited- St. Michael’s Credit Union Limited- Virginia Credit Union Limited

Reaction from participants on ACCUP remainsextremely positive, many focusing on the practicaland relevant nature of the programme content aswell as the unique and refreshing competency-basedapproach.

The Standards Framework and CPDOn completion of ACCUP, participants are awardedthe designation Recognised Credit UnionPractitioner (RCUP). In order to keep thisdesignation, individuals must undergo ContinuingProfessional Development (CPD).

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ILCU intends to extend this CPD requirement to allcredit union personnel by proposing the StandardsFramework for adoption at AGM 2010. Theframework places ACCUP as the minimumcompetency for all operating within the credit union,with an option for those experienced to opt-out ofcompleting ACCUP through a process known as“grandfathering”. Whether qualified orgrandfathered, personnel will still be asked tocomplete CPD on an ongoing basis.

ILCU training proposes to meet the CPDrequirements of credit unions during 2010 andbeyond through the provision of a comprehensiveCPD programme which will include:

● Current open schedule and in-house trainingcourses indicated as offering CPD credits.

● Relevant CPD seminars/road shows run country-wide by ILCU. These will be advertised throughcirculations throughout the year.

● Web-based relevant e-learning courses to bedeveloped and run via www.ilcu.ie

● Other events and activities including allocation ofCPD credits for the CU Focus publication.

● The development of an online CPD recorder onwww.ilcu.ie to allow those requiring CPD to trackand maintain their hours online.

The above can all be supplemented with recognisedin-house training courses run by credit unionsthemselves and any external courses taken inrelevant topic areas.

2009 Training/CPD WorkshopsILCU delivered 80 one-day workshops as part of itsSpring and Autumn open schedule programmes in2009 and, in addition, 185 in-credit union trainingsessions were delivered – many of these sessionsearning CPD hours for those in attendance.

The courses delivered by ILCU in 2009 included:

● Anti-Money Laundering

● Lending

● Compliance

● Credit Control

● Data Protection

● Supervisors – Understanding the MonthlyAccounts

● Supervisors – Roles & Responsibilities

● Directors’ Roles & Responsibilities

● Credit Union Operations

● Role of the Treasurer

● Role of the Secretary

● Supervisory Financial Examinations

● Human Resource Issues

● Role of the Chair

● Essential Management Skills

● Role of the MLRO

● Advising Members in Debt

● Pearls

● Excellence in Member Care

● Basics of Selling

● Facilitation

● Interview Skills

● Management Training

● Strategic Planning

In addition to the above, 101 ACCUP workshops wereheld in 2009, totalling 366 courses delivered by ILCUin 2009 – equivalent to one course a day, every dayfor the year .

Finally, the ILCU Training Department continued tosupport credit unions by distributing a record oftraining undertaken by their officers throughout theyear, thus enabling credit union training officers tofurther promote training within credit unions, and tohelp in meeting regulatory requirements.Additionally, the Department provided ongoingtelephone advice and support to credit unionsaddressing training and development queriesthroughout the year.

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SUPPORTING BUSINESS PROJECTSIT supported a number of projects aimed atintroducing new products and standardisation forcredit unions. These included:

■ Resolution 49 StandardisationThe ILCU developed a detailed specificationdocument defining and describing standard businessand processing rules required to calculate and reportbad debt provisions. A road show was undertaken inJune to present the standard to credit unions and toseek to address issues that may affect credit unionson implementation of the standard. Importantissues were raised which led to the postponement ofthe implementation date to February 1st 2010. A new specification was developed and agreedbetween the ILCU, credit unions and credit union ITsuppliers. This specification is now beingimplemented by IT Suppliers for roll out to creditunions in 2010. The ILCU also prepared and issuedtesting aids to help test and validate credit unionsystem’s compliance with the standard.

SUPPORTING ILCU SYSTEMS

■ InsuranceAs part of ongoing maintenance, updates weremade to insurance systems such as DBI and LP/LS tohandle changes in rates and the introduction of agovernment levy in the Republic of Ireland. Supportwas also given in respect of rate changes to Starplanrenewals.

■ MonitoringThe Monitoring, Prudential Returns and Pearlssystems were upgraded to add new functionality andnew ratios.

■ Preventative MaintenanceDesktops, laptops and servers were updated to morecurrent versions of system software including Office2007. Other application systems including theGeneral Ledger were upgraded to more currentreleases of the applications as support was beingwithdrawn from the releases in use.

■ Communications Improved remote access to ILCU information andsystems to support staff and management workingaway from the office.

RPI PREMIUM INCREASEThe ILCU liaised with credit union IT suppliers andAssurant, the service provider, to seek to establishand develop the most cost-effective and bestprocess for rolling out an RPI premium increase toaffected credit unions. This 40% premium increase isdue to come into effect on January 1st 2010.

PROJECT SUPPORTInformation technology touches on all aspects of theILCU. As such, IT plays a role in supporting otherprojects within the ILCU, these include:

● Anti-Money Laundering

● Payment Services Directive

● ACCUP Administration System

● Business Intelligence

Information technology personnel also support theILCU Board Committees as needed, as well as sittingon the:

● National Standards Committee

● National Technology Committee

Information Technology

The ICT Strategy, a four-year plan, ratified by Motionno. 28 at League BDM 2007, is laying the technologyfoundation upon which the movement is enhancingits operational efficiency and effectiveness, as well asexpanding the products and services available tomembers. The ICT Strategy is a business changeinitiative fuelled by technology and is providing theinfrastructure for credit unions to meet existing andfuture business challenges. Significant progress wasmade in 2009 in implementing the ICT Strategy.

Key Accomplishments in 2009Implementation of an All-Ireland Secure CreditUnion Communications Network (ILCUnet)The core component of the ICT Strategy is thecreation of a secure countrywide network to which allcredit unions may be connected. After a tenderprocess, Interfusion Networks, an award-winningnetwork provider, was awarded the contract todeploy a secure credit-union-only communicationsnetwork for the movement. The network is branded“ILCUnet”, and fulfils the key objective of enablingprivate and secure delivery of products and servicesto all affiliated credit unions.

With the secure, private credit union communicationsnetwork now in place, valuable services andcapabilities can now be developed and delivered tocredit unions, regardless of their size or technicalsophistication. The ICT Business Intelligence project(see below) is one such capability under developmentthat will be available over ILCUnet. Likewise, thePayments project (see the Information Technologysection of this report) being driven by the NationalTechnology Committee will provide, over ILCUnet, thecapability to offer the payments products and servicesmembers want. Existing and potentially new ITsuppliers may now leverage the private credit unioncommunications network, take advantage of thisshared service to benefit from economies of scale, andoffer greater value to all affiliated credit unions at areduced, more affordable price. Additional examplesof value that can be gained from the credit unionILCUnet network include E-Learning / Computer-basedTraining, Advanced Certificate in Credit Union Practice(ACCUP), Continuing Professional Development (CPD),document and form sharing, teleconferencing,bulletin boards / discussion group forums, and accessto account services over the internet.

When connected to the credit union network, creditunions are protected from Internet-based threats inaccordance with best business practices throughAnti-Virus protection and restricted access toinappropriate websites. Credit unions with sub-offices usually experience a cost savings, since theILCUnet connection is usually more cost effectivethan leased lines typically used to connect sub-offices. Subject to local rules and regulations, creditunions connected to ILCUnet also have the ability toaccess their credit union IT systems while out of theoffice. An optional e-mail solution offering protectionfrom email threats is also available on ILCUnet.

Credit union IT suppliers who connect to ILCUnethave access to network monitoring tools that allowthem identify and even predict connectivityproblems their clients may experience. They can alsomake use of potentially increased access speeds forthem to connect to the credit unions they serve.Both credit unions and IT suppliers can also call onsupport from a dynamic and responsive telecomsprovider. The Interfusion credit union help desk isbacked up by the Network Services Manager in theICT Office at the ILCU.

The ILCUnet is a credit-union-only, private and securecommunications network, designed, managed andsupported by credit unions, for creditunions. The initial Pilot Phase of theILCUnet roll-out has begun. The ICTOffice is seeking more creditunions to be early adopters, and toinfluence the finalisation ofstandards and procedures beforeILCUnet is made available to allaffiliated credit unions throughoutthe movement.

The ICT Strategy 2007-2011

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Business Intelligence (previously referredto as Data Warehouse)After the credit union network, Business Intelligence(BI) is the next key project mandated by the ICTStrategy. Many organisations, both commercial andnot-for-profit organisations, are overloaded withdata but are seeking knowledge and managementinsight from the information hidden in that data. BIis the term used in business and IT contexts to signifythe extraction and illumination of information fromvolumes of data. By providing credit unions withimmediate access to current managementinformation, the BI project is delivering the tools forsupporting decisions, improving operationalexcellence, increasing governance oversight,facilitating regulatory reporting, and streamlininginternal financial budgeting and forecasting.

The BI project will deliver many benefits to creditunions including sophisticated analysis such asforecasting and “what-if” scenarios. BI provides theability to “flag” and highlight any potential problemssuch as bad loans and discrepancies in PEARLS ratios.Standard BI dashboards, graphs and reports enablecredit unions to anonymously compare theirperformance against that of similarly-sized creditunions, against credit unions in their Chapter, acrossthe Republic, the North, or the entire movement.

The BI project is well underway. Thirty-four creditunions accepted the invitation of the ICT Office toparticipate in five regional focus groups to identify,agree and prioritise business information needs toenable informed management decision-making.Two representatives from each regional focus groupwere elected to sit on the National BusinessIntelligence Steering Committee. The BI SteeringCommittee is instrumental in furthering theunderstanding of Business Intelligence within theFocus Groups and across the movement. The BIrequirements agreed by the 34 focus groups wereprioritised into Phase 1 and Phase 2 for delivery bythe BI project. A request for proposal (RFP) for Phase1 was written by the ICT Office and circulated to 19interested vendors, including all current IT suppliersservicing the movement, on November 13th 2009. Abidder’s conference was held on November 24th

2009 to answer all queries relating to the tender.

Vendor proposals for development of the Phase 1 BIsystem were received by December 7th 2009, and theICT Office, the PMO Office, and the ILCUDepartments of IT, Finance and Legal commencedreview and evaluation of the vendor proposalsreceived. At the time of writing, two vendors havebeen short-listed, final review and evaluation isbeing conducted in the week of January 4th 2010, andvendor selection will be made the week of January11th 2010. In early April 2010, the BI project willdeliver the Phase 1 system to the 34 credit unionsthat formed the initial BI focus groups, and will makethe Phase 1 BI system available to all affiliated creditunions after the 2010 AGM.

Communications and EducationCommunication and education are key to thesuccessful execution of the ICT Strategy. It isimperative that all stakeholders are kept informed onthe progression of their ICT Strategy. A number ofactivities took place in 2009 to keep stakeholdersinformed and involved in the ICT Strategy.

● ICT Roadshows were held throughout Ireland inMarch and April 2009

● ICT Bulletins featuring the ILCUnet network,creation of the ICT Office, and the BusinessIntelligence initiative, were published in April,October, November 2009

● Credit unions actively participated in regionalfocus groups from May 2009 – August 2009 todefine Business Intelligence requirements

● Introductory guides were produced on ILCUnet inSeptember 2009

● A double-page spread on Business Intelligence waspublished in CU Focus, Autumn Edition andILCUnet was featured in CU Focus, Winter Edition

● Meetings were conducted with external bodiese.g., Registrar for Credit Unions in ROI andNorthern Ireland

● Regular meetings were conducted with creditunion IT suppliers to discuss benefits of the ICTStrategy, and how the infrastructure may beleveraged to provide greater benefit to themovement

● ComputerScope Magazine (November 16th 2009)included an article on the ILCUnet contract signingbetween Interfusion Networks and ILCU

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● ICT presentations were delivered at numerousChapter Meetings

● An update on the ICT Strategy was delivered atChapter Officers’ February 21st 2009 andNovember 1st 2009 forums

● An ICT stand with a comprehensive self-runningpresentation was set up at the NationalSupervisors’ Forum, November 7th and 8th 2009

The ICT Strategy is much more of a businesstransformation programme than a technologyproject. Technology is the easy part.Communication, education and managementunderstanding are key to fulfilling the vision of theICT Strategy to lift the credit union movement intothe financial services world of the 21st century, whilemaintaining the personalisation and ethos thatmakes credit unions so welcomed by their 2.9million members. Implementation of the ICTStrategy mandated by the movement will impactevery affiliated credit union in Ireland. It is the goalof the ICT Office to ensure that all stakeholders areenabled with information to be kept fully informedof the development and roll-out status of the ICTinitiatives.

There are many ambassadors of the ICT Strategy inthe movement, and it is the intention of the ICTOffice to utilise as many communication channels aspossible to meet this objective. Credit unions andany other interested stakeholders are encouraged toring any member of the ICT Office to discuss anyaspect of this strategic initiative.

Plans for 2010● Regional ICT Roadshows in early 2010

● ICT Bulletins updating the stakeholder communityon the progression of the ICT Strategy

● ICT communications at Youth Officers’ Conferenceand CUMA conference

● Use of web-conferencing to save costs andcommunicate with geographically-dispersedstakeholders

● Features in CU Focus on credit unions who arebenefiting from the ICT Strategy

● Meetings with Registrar of Credit Unions in ROI andNorthern Ireland

● Presentations at Chapter meetings by request

● Presentations at Chapter Officers’ meetings,National Supervisors’ Forum, and other forumswithin the movement

The ICT OfficeUp until September 2009, the ICT Strategy had beenjointly managed by Charles McLaughlin, Head of IT,and Belinda Lyons, Projects Office Manager. Asoutlined in the ICT Strategy 2007 – 2011, theestablishment of a movement ICT Office wasmandated to fulfil the ICT Strategy. The formation ofthe ICT Office is now complete. The team structureis as follows:

● Sharon Kearns, ICT Communications Specialist,was hired in February 2009 to ensure that allstakeholders are fully updated on the progressionof the ICT Strategy

● Malcolm Moir, Network Services Manager, washired in August 2009 to lead creation and roll-outof ILCUnet to the credit union movement

● Jim Williams, ICT Strategy Implementation Manager,was hired in September 2009 to oversee the ICTOffice and implementation of the ICT Strategy

● Carmel Carroll, ICT Business Analyst, was hired inNovember 2009 to ensure successful deploymentof the Business Intelligence system to the creditunion movement

In 2010, the ICT team will continue to implement theInformation and Communications TechnologyStrategy for the benefit of all affiliated credit unionsin the movement.

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