the magazine of the irish league of credit unions – spring ... · credit union youth ambassadors...

The magazine of the Irish League of Credit Unions – Spring 2017

MCC: Creditunions'qualificationrequirements

Tech TrendsDriving theFuture ofMoney

THE NEW CREDIT UNIONYOUTH AMBASSADORS

Winners of AllIreland Credit UnionArt CompetitionAnnounced

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 8th May 2017. Please mark for the attention of the editor, CU Focus Communications Department. The viewsexpressed 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 serviceadvertised, 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 anynewsworthy 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

Editorial

Cover image:Olympic heroesGary and PaulO'Donovan wereannounced as thenew Credit UnionYouthAmbassadors atthe Youth andMarketingConference

CONTRIBUTIONSLetters to the Editor /contributions may be submitted via email [email protected].

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

04 New Credit Union Youth Ambassadors Unveiled06 Focus on TPM Credit Union08 CCR Registration09 Dragons Lend10 Personal Micro-Credit Scheme Update12 Athlone Credit Union’s 50th Anniversary14 Why Brands Need Advertising & Marketing16 The Future of Money18 50th Anniversary events at Clonakilty Credit Union19 ECCU Update20 CUSOP Update22 All Ireland Art Competition Winners24 ILCU Responds to CP10625 How Dynamic is Your Board27 50th Anniversary of Ballinasole Credit Union28 CUCC Data Protection Event30 ILCU Foundation; The Gambia Special Report33 Institute of Credit Co-Operative Administration34 HR Update36 Your Stories40 Legislative Update42 The Domestic Economy

CU FOCUS SPRING 17 :: 03

22 16

06 30

‘It’s got to get worse before it gets better’ is an expression that hasbecome trite because of overuse. This particular cliché should beconsigned to history. Our aim, and the aim generally, must alwaysbe ‘the best we can be’ – no complacency. No easing ofstandards. No accepting or provision of a weaker service to ourmembers.

Credit union membership continues to grow and membersremain loyal and trusting. They deserve the best we can offer, beit continuation of current service or provision of additional service.

We are now in early spring and with the dark and dreary daysof winter behind us, it will give us much reason for optimism, apositive feeling to mind and body. Spring is also the time when theAnnual General Meeting of the Irish League of Credit Unions(ILCU) is held, an opportunity for delegates to discuss the issuesthat affect credit unions and agree a format to address the manyproblems they face.

Getting the credit union message out to all members and non-members is best achieved through advertising – radio, television,print media and all other areas where people congregate. TheNational Advertising Campaign (NAC) has been doing excellentwork in this area for a number of years. The NAC has beenfunded by credit unions for credit unions, but sadly some havepiggybacked on the generosity of others. This is not in the truespirit of cooperation.

The ‘bread and butter’ – the main income is generated fromloan income – this was reduced during the downturn in theeconomy – it has improved somewhat recently and there is muchroom for more. There are other options; funding the provision ofsocial housing and also the provision of mortgages.

Social Housing: Back in early 2015, a lobbying campaign wasput in place in the Republic of Ireland by the ILCU Board.Lobbying, as we know, is ongoing and must be sustained, but itmust be done in a unified way or else it will be futile.

Mortgage Lending and Home Loans: Work on this is beingdeveloped currently and we believe this could be a substantialbenefit when agreed.

ILCU Elections – the elections to the ILCU Board and StandingOrders Committee have now been decided and the successfulcandidates will serve their term. We wish them well and hope thedecisions they make will help the furtherance of the credit unionmovement. We also appreciate the efforts of the candidates whowere not elected.

The Youth and Marketing Conference took place in the HodsonBay Hotel, Athlone on the 25th and 26th of February. This must-attend event was highly informative about the requirements andissues of the next generation.

The lucky winner ofour winter competition,

a two night stay atNewpark Hotel in

Kilkenny, was MarieHynes from Athenry,

Co Galway.

Olympic Champions

Gary and Paul O’Donovanunveiled as new

Credit Union Youth AmbassadorsOlympic silver medallists Gary and Paul O’Donovan have been unveiled as

the new Credit Union Youth Ambassadors for the Irish League of Credit

Unions (ILCU). The rowing champions were officially announced as

Ambassadors at the ILCU’s Youth and Marketing Conference in Athlone on

Saturday 25th February. Delegates from credit unions across the island of

Ireland were in attendance to see the sporting heroes officially revealed as

ambassadors by ILCU President Brian McCrory

Newstalk 106 FM presenter Chris Donoghuewas on hand to interview the sports starslive on stage, while a video filmed for creditunions by the two brothers was alsopremiered at the event.

The overall theme of the youthconference was Digital Marketing andSocial Media. There was a specific focuson how credit unions can develop theiruse of platforms such as Facebook andYouTube to communicate with Millennialsand Generation Z. Guest speakersincluded Zeminar co-founders IanFitzpatrick and Damien Clarke, FacebookAdvertising’s Lizzy Lillington-Lester andTrendster co-founder Jack Cullen. A paneldiscussion on ‘Reaching the NextGeneration’ was another highlight of thetwo-day event.

Speaking at the announcement of theYouth Ambassadors, ILCU President BrianMcCrory said “Gary and Paul O’Donovanembody the spirit of co-operation and the

ethos of working together towards acommon goal which is so important to thecredit union movement. Theiraccomplishments in rowing at global leveland their achievements at the 2016 RioOlympics make them ideal role models foryoung people in our communities, andindeed ideal ambassadors for the manyyouth programmes run by our creditunions. We very much look forward toworking with them as we work to inspirethe next generation.”

Also commenting on their new role,Gary O’Donovan said “Our own creditunion in Skibbereen has always supportedus every step of the way and so we didn’thesitate when asked to be the new CreditUnion Youth Ambassadors. We’re veryproud to be representing the movement,especially for the younger generations.”

Paul added “The support for us from allcorners of Ireland has been overwhelming.Knowing we have such incredible backing

from our own community and fromcommunities around the country reallymakes a difference to us when we’recompeting, and so we’re delighted to havethis opportunity to work with a movementthat gives so much back to the people inthe local communities they serve.”

The ILCU offers a wide range ofmarketing support to credit unions to setup and run both established nationalyouth initiatives as well as local youthschemes. National initiatives include theClued-In Scheme (a personal financeresource for second level schools) and thepopular All Ireland Schools Quiz and AllIreland Art Competition. Local schemesrun by credit unions include SchoolSavings Schemes as well as Bursaries andStudent Loans. The ILCU also runs theYoung People’s Network and the YoungPeople Programme for the support anddevelopment of younger credit union staffmembers and volunteers.

The Olympic heroes with ILCU President Brian McCrory and the ILCU's National YouthCommittee

Gary and Paul O'Donovan with ILCU CEO Ed Farrell and ILCU President Brian McCrory

04 :: CU FOCUS SPRING 17

CU Focus meets the

O’Donovan Brothers

CU Focus: How old were you when you firststarted rowing and why was rowing your sport ofchoice?Paul: When we were about 7 or 8 we startedgetting into the water. We had played a bit ofeverything but as our dad had been a keenrower for much of his life, conversation alwaystended to sway that way. It was only a matter oftime before we got into a boat. CU Focus: Was there ever a time over the yearswhen you felt you might quit rowing and why? Gary: There were many times when thingsweren’t going so well that we’d stop and askourselves why we were doing it at all. But Isuppose if everyone stopped at the first fewhurdles, nobody would get anything done!CU Focus: Could you describe in three wordshow you felt when you crossed the finish line atRio?Gary: Knackered, hungry, proud! CU Focus: Aside from the race itself, what is yourfondest memory of Rio?Paul: It was definitely seeing our family, friendsand all the Irish in Rio celebrating our success.We had been working so hard towards this goalthat it was always going to mean something tous, but to see that it meant so much to everyoneelse was really special. CU Focus: Would you say your Olympic medalsare your proudest possession or would it beanother medal/trophy you won over the years forrowing?Gary: The medal is just a round thing. We havebeen rowing for 15/16 years now and havepicked up a few prizes along the way - but wejust put them in a drawer. We can walk aroundwith the memories.

CU Focus: What is a typical day like for younow?

Paul: At the moment I’m attendingUCD and I’m on work

placement, so I try to get upas early as I can and

get a training session in before I’m due intowork. I’ll get more training done then in theevening too. Gary: I’m based in Cork at the moment and I’vejust started a Law degree. My routine is similarenough to Paul’s. Training morning and eveningand college in between. We’re both really busy,but we wouldn’t have it any other way. CU Focus: Are you training for competitiveevents at the moment?Gary: We are moving into the competitive seasonnow and every race is a building block for longerterm targets like Tokyo 2020. We didn’t just turnup in Rio, a lot of hard work went into gettingthere. Every race we are in, whether it’s on acold Saturday morning at the National RowingCentre or at the World Championships inFlorida, we always aim to go as fast as we canand win it.CU Focus: Are you interested in any other sportsoutside of rowing, either participating orspectating?Paul: We’d watch the rugby and follow cycling.Aside from that then we keep an eye on how therest of the Irish athletes are getting on. CU Focus: Are you planning on taking time offthis year and what do you typically like to dowhen taking time off from training?Paul: With our studies and rowing we don’t havemuch time off. We take a day every now andthen to rest and recover, but we’re never faraway from a boat. In fact, I don’t remember twodays in a row that didn’t involve us getting intothe water. Gary: We do a fair bit of travelling for events andtraining camps so when we are away we try tosee as much of that place as possible in thetime that we have, but otherwise ourschedule dictates what we can orcan’t do.

CU Focus: How would you like to see the sport ofrowing evolve in Ireland for youngergenerations?Paul: Our greatest achievement would probablybe in getting people talking about rowing andgetting involved. We love our sport. If morepeople were to be exposed to it, more would beinclined to try it out. It was heartening to hearthat the number of people joining clubs jumpedafter the Olympics, hopefully there’s a medal ortwo to come out of it. CU Focus: How good were you both at regularlysaving in the credit union when you wereyounger?Gary: We spent years saving towards buying ourown boats – we were both pretty good at saving!Paul: I remember collecting coins in plasticbottles and when I couldn’t fit any more in I putthem into the credit union in Skibbereen! In2013 we finally had the money to do what wehad been saving towards - buying our own boat.CU Focus: We know that your mother saved withthe Skibbereen Credit Union to fund her trip toRio to support you, what tips did your motherhave for you both about saving towards a goal?Gary: She really wanted to get to Rio so she wasputting a bit of money away for a good longwhile. I suppose saving in that way is much likeour training, it's all about the building blocksand working towards an end goal. Paul: She has always told us that if we set out todo something, do it right. Every penny she savedwent towards that trip.CU Focus: Finally, what message would youhave for young people in Ireland who wantto become world-class athletes?Gary: It’s important not to be afraid ofhard work. If you put your headdown anything is possible. Youhave fun along the way ofcourse, but the hardwork reaps rewards.

In between their official unveiling at the Youth and Marketing Conference, interviews with the press and

meeting and chatting with credit union delegates, CU Focus caught up with

Gary and Paul O’Donovan to ask them a few questions.


Focus on …

TPM Credit Union IN THE BEGINNING

“On the 16th January 1967 an informal

meeting took place in St Patrick’s Social

Club in Poyntzpass to consider the

possibility of forming a credit union

branch in the area.”

These are the opening words of the

“Minute Book” of what was to become

Tandragee, Poyntzpass and Markethill

Credit Union or TPM Credit Union.

There were nine in attendance at this

seminal meeting: Patrick McSherry,

Michael Waddell, Leslie Kellett, Terry

Murphy, Seamus Murphy, Gerry Davis,

Frank Watters, Jim McAfee and Rev

Sean Quinn.

After similar meetings in Tandragee

and Markethill, TPM elected its

founding office-bearers on 6th February

1967. Over the following month the

nascent credit union drew on the

experience of pioneers in the field;

Edward Mackle (Newry), Jack O’Hare

(Armagh) and John Hume (Derry) to

finalise preparations for the opening for

business in all three centres in early

April. There were 95 members and

share capital of £1,867. Now 50 years

later, TPM Credit Union has a

membership of over 2,600 and share

capital in excess of £5.5 million.

SOLID FOUNDATIONS

It is well accepted that if a structure is

to last it must be built on solid

foundations. The founders of TPM

Credit Union understood this and

ensured that the credit union ethos

informed their every decision. TPM

Credit Union's first President, Jim

McAfee, speaking at the AGM on 12th

February 1968 said;

“Credit union enables surplus to aid

others. It shows the Christian reason for

saving. It is not charity but credit -

credit that a man buys. Charity can hurt

dignity - credit does not.”

Clear evidence of a solid start in life

as a key financial entity in the

community was confirmed when TPM

Credit Union was awarded the 1968 All

Ireland Credit Union Cup at the Annual

Credit Union Convention in Cork. The

Minute Book records a victory

celebration and stated that “no matter

what we achieve in future years the

elation and satisfaction of winning this

trophy in our first year will scarcely be

surpassed.”

THE GIFT OF TIME AND TALENT

The fact that TPM Credit Union has for

over 50 years sustained and indeed

developed a most valuable contribution

to the community has been due in

essence to the generosity, determination

and initiative of a “small army of

volunteers.” The men and women of the

TPM community gave of their time and

talent to allow the credit union

members to “save with security and

borrow with dignity.” Today’s members

should be extremely grateful to all who

have ensured that a vibrant and

dynamic credit union has, for over half a

century, provided a valuable source of

financial assistance at a fair rate, within

a caring and supportive environment.

John McGrane, TPM Credit Union’s

current Chairman notes that “It is

clearly impossible to acknowledge in

detail the many beneficial contributions

of TPM workers over the years. We have

been fortunate to have had

Presidents/Chairpersons of vision and

leadership; Treasurers with sound

financial judgement and accounting

skills; Secretaries of diligence and

thoroughness; Committees which were

vigilant, ethical and fair in their

decision making; Paid staff who were

hard-working and reliable; Supervisors

of persistence and rigour. However few

would disagree with the view that

anything which TPM has managed to

achieve has been due in no small

measure to the wisdom, leadership and

dynamism of two of our founding

members. Jim McAfee and Syl

Campbell were men of outstanding

ability, drive and generosity of spirit and

were ‘credit union men’ to their core.”

On the sad occasion of Syl’s passing

in 1986, the AGM minutes recorded the

following: “Since the last AGM we have

suffered the loss of the credit union


Celebrating 40 years of TPM Credit Union in 2007

Winners of the Art Competition with Guest of Honour Rory Best

The Poyntzpass Pumas Basketball Team

CORK 1968. TPM Credit Union's Treasurer Syl Campbellreceives the All Ireland Credit Union Cup from Jack Lynchunder the watchful gaze of a youthful John Hume.

man ‘par excellence’ ---- Although there

might be some debate as to who started

the credit union here, there is absolutely

no doubt who kept it going through the

bad times. For many of our members Syl

Campbell was the credit union. Syl set

the standards - his meticulous attention

to detail, his capacity for selfless hard

work, and shrewd judgement - give all of

us who attempt to follow in his footsteps

both a guide and a challenge. TPM is the

monument to Syl Campbell and all future

doings of TPM will be keeping his

memory green.”

Jim McAfee, who delivered these

words, died in 2010. He was a man of

wisdom, wit and total commitment to the

credit union. The ‘TPM Credit Union

News’ of November 2011 paid tribute

thus: “It would not be an exaggeration to

say that for forty years Jim McAfee was

the very heart of credit union. It is

certainly true that much of what TPM is

today is directly attributable to his

unwavering dedication ....those of us who

have known him in his prime appreciate

his immense and lasting contribution to

TPM Credit Union and indeed the many

members “who knew him not” will for

years to come, continue, to benefit from

his vision and commitment.”

STAFF EXCELLENCE

In business in general the importance of

customer service is a well-accepted

principle. In the case of credit unions,

where staff are serving not customers but

members who through their shareholding

own the credit union, the quality of

interaction has an added dimension.

TPM Credit Union’s front-line staff

have, over the years done a first class

job. Those currently in post, Gabrielle

McElroy, Ann O’Hare, and Agnes McCoy

provide service of high quality led by

Manager Dawn McConnell. Dawn has

been with TPM Credit Union since March

1980 and is vital to its success. Her

sound knowledge of every aspect of

credit union, her wise and considered

decision-making, her total commitment

to her tasks, her sense of humour and

warm personality make her a most

valuable and valued leader of TPM Credit

Union’s progress on a daily basis.

THE FUTURE

Many observers are at present of the

view that the world is entering a period

of even greater uncertainty than usual.

However it would seem clear that many

of the circumstances which led to the

development and growth of ‘community

self-help’ in the Germany of Friedrich

Raiffeisan in the 1860’s, and which the

founders of the credit union movement

on this island successfully introduced

here in the 1950’s, will continue to have

an important part to play in the

community.

TPM Credit Union has well equipped

offices in each of its three centres. The

technology used is regularly reviewed to

ensure that the credit union keeps up to

date with relevant developments and is

appropriately positioned to move

forward.

As ever, a credit union needs to be

renewed and refreshed by recruitment of

young volunteers. TPM Credit Union will

work to ensure that the ‘credit union

torch’ is handed on to the next

generation, who will no doubt rise to the

challenge. The outstanding qualities of

the community’s young people has been

witnessed through TPM Credit Union’s

schools savings scheme, inter-schools

quiz, art competition and the

sponsorship of sporting activities such as

the ‘Poyntzpass Pumas’ basketball.’

TPM Credit Union has a message for

the young people of its community on

the occasion of its 50th Anniversary, and

this is well encapsulated in the words of

US President Barack Obama in his

farewell address. He urged young

Democrats to get involved by suggesting

they should “Show up; Dive in; Stay at

it!”

TPM Credit Union is confident that

young people within its common bond

will understand this message in relation

to credit union and knows that it can

continue to go from success to success

over the next 50 years.


Front Row: Dawn McConnell (Manager), Anne Lappin, John McGrane (Chairman), Helena Gamble, Simon Clarke,Gabrielle McParland; Second Row: Patrick Gallagher, Margaret Campbell, Irene Caulfield, Brian O’HareThird Row:John Campbell, Jackie Jenkinson, Lorraine McAllister, Eddie McAfee; Fourth Row: Frank Watters, VincentBraniff, Billy McClelland, Harry Gaffney. Absent: Joe Flannigan, Sheila McKeown, Ann O'Hare and Agnes McCoy.

All credit unions in the Republic of Ireland are legallyobliged to both register on and supply information to thenew Central Credit Register (CCR). The CCR is a mandatorydatabase of credit intelligence and any credit union who hasnot yet registered should immediately log on towww.centralcreditregister.ie to sign up and commence theon-boarding process. A number of credit unions havealready registered and are in the midst of preparing tosubmit data to the CCR. Data submissions will begin inJune 2017.

Under the Credit Reporting Act 2013, credit unions arelegally required to supply information on all creditagreements of €500 or more to the CCR. They will also beobligated to access it when considering loan applications for€2,000 or more. Credit unions should ensure they areregistered as a matter of priority.

Data Collection to Commence in June Data collection for credit unions will begin on 30th June 2017and will continue until December 2017. Credit unions arelegally obliged to have submitted the required information bythe deadline of 31st December 2017.

The Central Bank has also issued individual codes andregistration numbers to credit unions to allow them to accessguidance manuals and documents which it has published onits website. If any credit union has not received this material,or has misplaced it, they can request a new code andregistration number at www.centralcreditregister.ie/info-request/.

Registering on the CCR now will ensure that the on-boardingprocess can be completed in time for credit unions to beginpreparations for the commencement of the data collectionphase.


CREDIT UNIONS LEGALLYOBLIGED TO REGISTER ON

CENTRAL CREDIT REGISTER

Chapter 2 recently held a unique Chaptermeeting that was completely differentfrom all others. The meeting took placein the Old Courthouse in Antrim and wasdesigned to educate its members on thecurrent issues facing credit unions inNorthern Ireland. The meeting, whichwas held in the style of the populartelevision programme, Dragons’ Den, wastitled Dragons Lend. Most of the 17credit unions in the Chapter wereinvolved in the preparation andpresentation of Dragons Lend, anexample of co-operation among co-operatives.

The distinctive event was hosted byNick Garbutt, a respected PRpractitioner and media commentator, aswell as a fan of credit unions and agood friend to Chapter 2. AidanMcCormack and Billy Breen of LarneCredit Union were the writers anddirectors, while the whole evening wasbrought to life by the work of Niall Kerrfrom Ballinascreen Credit Union. Hiswork in sound, lighting and graphicsmade the evening’s performance veryenjoyable and an excellentapproximation to the television show. Italso meant that the DVD produced onthe night was of an excellent standardand well received by the credit unionsin the Chapter.

During the night, a number of loanapplicants from credit unions made

their pitch for a loan to the ‘Dragons’ –which were played by personnel fromacross Chapter 2 credit unions. Itshould be noted that the roles theyplayed are in no way an indication ofthe roles they play in their own creditunions or of their personal views, but anattempt by the writers of Dragons Lendto bring out attitudes and beliefs thatmight be found in credit unions.

The ‘Dragons’ on the night wereplayed by;

Ann Quinn (Carnglen Credit Union):Ann portrayed a well-run credit unionwith all its policies in place prepared tomake larger loans, with a novel take onsecurity and preparedness to lowerinterest rates on these loans.

Liam O’Kane (Bannvale CreditUnion): Emphasising the “know yourmember” ideal; the need for goodcommunication and the ethos thatcredit unions are for service. Liamportrayed a credit union that would beprepared to look at a larger loan, but isrestricted by the rule that a membershould be saving for thirteen weeks.

Jack Gorman (Derry Credit Union):Jack represented the ‘old school’approach; loans should be based onsavings and a member should be savingfor thirteen weeks. It has worked well inthe past and has served the memberswell over the years. Why changesomething that works well?

Keith Savage (Antrim Credit Union):Bringing his experience from anotherfinancial institution to bear on his creditunion work, Keith represented a creditunion prepared to look at larger loansbased on the ability to repay and at alower rate of interest to be morecompetitive, and that is prepared tolend for business purposes.

Tracey Quinn (Ardboe Credit Union):Tracey portrayed a credit union thatlooks after certain members, butpossibly doesn’t give equality oftreatment to all members.

The loan applicants facing theDragons on the evening were:

Pat McCallion (Ballymena CreditUnion), Paul McCaughan (Larne CreditUnion), Adrian Clarke (Causeway CreditUnion) and Gearóid O’Neill(Ballinascreen Credit Union). Eachmade strong applications and statedtheir case well for amounts from£15,000 to £100,000.

Chapter 2 believes that wheneducation takes place in an atmosphereof enjoyment, it becomes more effectiveand has lasting benefits for all creditunions and their members. It is hopedthat the DVD that was made could beused as a starting point for discussionon procedures that credit unions willadopt to meet the new situation facingthem with the changes in the rules dueto come in after AGMs.


100 Credit Unions now offeringPersonal Micro Credit Scheme

Credit Unions Across the Country Share theirInsights on the ‘It Makes Sense’ Loan

100 credit unions across Ireland are now offeringthe Personal Micro-Credit scheme as increasingnumbers turn away from moneylenders anddemand for the loan rises. The initiative, knownas the ‘It Makes Sense’ loan, was launched in2016 by the Irish League of Credit Unions (ILCU)in partnership with the Citizens InformationBoard, MABS and the Social Finance Foundation,and is supported by the Government andDepartment of Social Protection. Loan applicants

can borrow between €100 and €2,000 and themaximum loan period is two years. The initiativeis about providing an alternative tomoneylenders and promoting financial inclusion.More information can be found athttp://itmakessenseloan.ie/Below are some insights from credit unionsacross the country who are offering the It MakesSense Loan to social welfare recipients in theirlocal communities.

AUGHRIM STREET PARISH & DISTRICTCREDIT UNION:Q. Why did you decide to join the initiative?A. We are based in a community which isbadly affected by moneylenders. With thePersonal Micro-Credit Scheme (PMC) wecould help members who have noalternative but to resort to such companiesthat charge extraordinarily high interestrates to the financially excluded.

Q. How easy did you find the signing upprocess?A. Pretty straightforward. After our Boardapproved entry to the initiative and thededicated loan policy, we started theprocess to sign up with An Post. Webegan offering loans around ‘back toschool’ and were also very busy with theseloans at Christmas. We see this as anoccasional loan for key events, such asChristmas and Communion time.

Q. How satisfied are you with the loanperformance of your PMC loan book?A. To date we have given out 128 PMCloans, most of these loans are repaid viathe Household Budget. We would have2% that we are concerned about.

Q. Have you had any problems withborrowers cancelling deductions? A. No. There was a case where a memberfound work and was no longer in receipt ofsocial welfare and we came to analternative payment method.

Q. Going live can create a lot of demand forthe loan product, how did your credit unioncope?A. The training and documentation

provided by the project team are veryworthwhile. If we are unsure of eligibilityunder a scheme, we request assistancefrom the helpdesk. We are not afraid to

Aughrim Street Parish & District Credit Union Staff L to R: Kelly Clancy, Lorraine Gahan, Suzanne Harney


refuse loan applications - and at Christmaswe set up an appointment book to managedemand. We would highly recommendscheduling appointments.

Q. What is the main benefit so far fromjoining the initiative?A. This is a social initiative and not a bigprofit maker. However, we haveincreased our membership by 2.5% fromPMC. We feel by serving these members,they will graduate to mainstream lending -the current PMC policy supports thistransition.

Q. Are there any disadvantages to theinitiative?A. Apart from managing the demand atpeak times and getting familiar with usingthe An Post Household Budget scheme(HB), not really. In very few cases, newmembers have expressed an entitlementto borrow - we always take the time toexplain to the member when signing upthat the loan decision will be based onaffordability and not just the fact that theyare in receipt of social welfare.

Q. What is the best borrower comment youhave heard?A. Most borrowers are extremely happywith the service, especially at Christmas.Overall feedback is delight that themember no longer has to use a highinterest moneylender and can re-establishtheir financial standing with the creditunion.

Q. What would you say to credit unionswho are not yet part of the initiative?A. We would encourage credit unions tosign up. It takes time to get familiar withhow the HB system operates and youneed to invest in training staff on newpolicies and procedures. However, thepositives far outweigh the negatives!

Q. What’s been the biggest impact of PMCfor your credit union?A. 75% of our members who have signedup for a PMC Loan are new to the creditunion. Some thought that they would notbe able to borrow from us. We are able toreach out to a section of our communitywho needed the credit union most. Webelieve that by being able to offermembers a PMC loan, we have remindedthe community what the credit union isabout. We did very little promotion for thisinitiative and the majority of newmembers heard about the service from afriend.

WEXFORD CREDIT UNION:Q. You are a participating credit union sincethe pilot first launched. Why? A. This product works to grow our loanbook in a low risk manner. It sitscomfortably with the ethos of our Board topromote financial inclusion.

Q. Are you satisfied with the performance ofthe PMC loans written?A. Yes. We have written almost 140 loansvalued at €175,000. The level of default iswell below our normal loan book.

Q. How does PMC fit within your existinglending practices?A. This loan fits within our normal practices– we see PMC as simply offering anotherrepayment method, but one that enablesus to lend to those that are financiallyvulnerable and excluded. It demonstratesour commitment to our community.

Q. Were there any teething problems as partof launching PMC in your credit union?A. Initial teething problems in the pilotironed out quickly and we have blendedthis offering into our normal lending set-up.Once lending staff became familiar with theproduct and with the semi automation ofthe An Post payment files, the “It MakesSense” loan has become a mainstreampart of what we do.

Q. How do you find the process with An Postand the Household Budget Scheme (HB)?A. I think the service that credit unions getfrom An Post is excellent. Although,repayments through the HB are notguaranteed, our experience shows thatmost members who sign up to repay theirloan through the HB do not cancel. The AnPost HB team are responsive to queriesand the €0.25 fee per transaction is goodvalue – as without continued access to theHB it is unlikely that we would haveremained in the initiative. This deductionmethod reduces our risk and is also veryconvenient for the borrower.

Q. How do you think borrowers view theinitiative? A. There is no doubt that there is a marketout there for the product. The recent

enhancement of facilitating a small savingselement is beginning to filter through. Theneed to turnaround the loan in 24 workinghours did not transpire for us – once weare engaged with the borrower the timingon the loan was not an issue.

Q. Are there any downsides to the initiative?A. We frequently get calls from outside ourcommon bond and from time to time, itcan attract interest from a certain cohortthat believe they are ‘entitled’ to the loan.Once staff became familiar with theprocess and who the policy is trying tohelp, it became easier to lend to the targetmarket that the policy supports – thosewho are financially excluded and who relyon moneylenders as a source of credit.

Q: What advice would you give a creditunion coming on board?A. This is a loan and criteria must be met -principally having the capacity to repay.The credit union has the right to say no.Work with the project team to avail oftraining and best practice in particular inthe early days of offering the loan. Talk topeer credit unions about their experiences.Use this as another offering within yourproduct suite.

The essence of the ‘It Makes Sense’offering is: • Social welfare recipients• Fast track membership (for non-

members)• No savings needed• Default history does not necessarily

rule individuals out – an ICB checkis not mandatory

• Separate credit policy drafted withand acknowledged by the Registry ofCredit Unions in the Central Bank

• Repayment via An Post’s HouseholdBudget Scheme (HB) or by standingorder or direct debit

• Small savings amounts facilitated • Final credit decision rests with the

credit union• www.creditunion.ie/itmakessenseloans

To sign up:Contact support team on dedicated help line:

01 614 67 37Email: [email protected] or

[email protected]


50 years ago a pioneering group of Athlonepeople prompted by the Chamber ofCommerce had the vision to join arevolution that was sweeping Ireland at thetime. They founded a community basedmember-owned co-operative; AthloneCredit Union. Eight years earlier, Ireland’sfirst credit union had been established atDonore Avenue, Dublin, with a deposit of£7 in the first week. 50 years later it ispossible to reflect on what that revolutionachieved in Athlone and where it might gonext.

The early days of Athlone Credit UnionIn early 1966 Athlone Chamber ofCommerce was approached by arepresentative from CIE and Gentex with aview to establishing a credit union inAthlone. After months of fact finding andinformation gathering, a public meetingwas called by the Chamber of Commercefor 25th November in the Prince of WalesHotel. A letter was sent out to businesses,clubs and organisations in the towninviting them, together with co-workers,family and friends to attend. The meetingwas chaired by Andrew O’Connor,President of Athlone Chamber ofCommerce with Patrick Russell, Secretaryof the Chamber and Michael O’Doherty,Field Officer of the Credit Union League ofIreland. The meeting was a great success.

This led to the inaugural meeting ofAthlone Credit Union which took place on2nd December 1966. At the next meetingon 9th December, the following nameswere registered as the founder membersof Athlone Credit Union;

Board of Directors – Patrick Russell,President, Patrick Ralph, Vice President,Andrew Lyon, Treasurer, Capt. LeoKeenan, Secretary, Jim Whooley,Education Officer, M Keating, PublicityOfficer and Joe Finn, Pat Morrissey, BrianMcGrath and J Quirke.

Credit Committee – Patrick Campbell,Seamus Bleakley, Cecil Wheatley, KittyHiggins and Thomas Burke.

Supervisory Committee – JohnHardiman, Austin Kilbride and Jim Keane.

The credit union had free use of the

offices of the Workers Union of Irelandover Foy’s shop in Church Street. Theopening hours were decided at 4-6pm onSaturday and 11.30am-1.30pm onSunday. Lodgements were accepted bydesignated committee members. Loanapplications could only be taken by aCredit Committee member during thesehours.

Growth of the credit union In 1969, Eamon Ginnane was appointedas the first employee, followed in 1970 bythe appointment of Liam O’Dalagh as firstmanager. By 1970 the credit union was ina position to purchase its own premises inFriary Lane. The move to the newpremises enabled the extension ofopening hours and also allowed the creditunion to give St Francis Co-Op HousingSociety free use of a room, andencouraged credit union members to availof the society’s services.

In 1996, the growth of the credit unionrequired larger premises and a property inthe historic Northgate Street waspurchased, close to the site of the formerAthlone Wollen Mills, now the RadissonHotel. This purchase marked the 30th

anniversary of the opening of the creditunion in Athlone. The new premises wasofficially opened on 8th June 1997 byNorman Murphy, President of the IrishLeague of Credit Unions, and Tom Price,President of Athlone Credit Union. Bythen, assets had grown from £8,341 in1969 to €6.7 million in 1996. The next tenyears showed huge growth and by 2006assets had reached €435 million.

Today, Athlone Credit Union continuesto grow, assets at the end of the currentfinancial year reached €80 million, with anactive membership in excess of 17,000and a staff of 18.

The mission of the Athlone pioneers The pioneering group who foundedAthlone Credit Union achievedextraordinary results for the town. For thefirst time in the history of Athlone, ordinarypeople had access to reasonable credit.With reasonable credit came all sorts offreedoms. The most immediatelyimportant would have been freedom frommoneylenders. Then the freedom tomanage their own finances in ways notpreviously possible. Next was the freedomto use their own savings and credit to

ATHLONE CREDIT UNIONCELEBRATES 50thANNIVERSARY


Athlone Credit Union Chairman Alan McNeice with Manager Catherine Egan and Anne Duffy, also ofAthlone Credit Union, who honoured surviving members of the Jadotville Battle at the 50thanniversary celebrations

improve their lives. The founders of Athlone Credit Union

and the generations of volunteers andstaff that came after them grew the creditunion from small beginnings to where it istoday. Within the first year the assets ofthe credit union grew to over £8,000. 50years later there are over 17,000members with savings and deposits of€65 million, over €27 million of which ison loan to members. This is thefundamental co-operative principle inaction; members supporting each other

through both borrowing and lending.Athlone Credit Union now has assets of€80 million with reserves of €14 million.

Generations of members haveprospered with their credit union. Inaddition to the savings and loans available50 years ago, members can now get afree financial check, get insurance,change currencies and use the bill payservice from the two branches in NorthGate Street and Monksland. Members canaccess their accounts and transfer moneyelectronically from a computer, or by using

a mobile phone app. Some may ask how important is the

credit union in a world so different fromthe 1960s? Today credit and financialservices are much more commonlyavailable than they were then. The creditunion is routinely ranked as the mosttrusted of organisations. It is routinelyranked highest for customer service tomembers compared to other organisationsthat serve the public. That should be nosurprise because in good times and badeverything credit unions do is always inthe best interest of members.

The unfinished revolution of the 1966Athlone pioneers is to provide all financialservices needed by a member from cradleto grave, provided from within thecommunity to the community. AthloneCredit Union is as important as everbecause it can be trusted and because itputs members’ interests first.


Athlone Credit Union Chairman Alan MacNeice, with Manager Catherine Egan, ILCU President Brian McCrory and represetatives of Athlone Credit Unionwho were honoured at the 50th celebrations

The Board of Athlone Credit Union. (Manager Catherine Egan absent from photo).

A new report investigating the impact andimportance of advertising and marketing toIrish companies contains a number ofrevelations that will be of importance tocredit unions when considering theirmarketing and advertising campaigns forthe year ahead.

The report, titled MarketingMultiplied, was carried out by CoreMedia, in conjunction with theAssociation of Advertisers in Ireland,and was written by Core Media’s CEOAlan Cox together with well-knowneconomists Jim Power and Chris Johns.The report presents in one location asurvey of literature and research from allover the world and presents a robustcase for the impact of marketingcommunications on national economiesand brands, while giving guidance onhow to improve the effectiveness ofcampaigns.

It found that every €1 invested inadvertising results in €5.44 net Returnon Investment (ROI). In addition to theROI figure, the findings also state thatthe size of a brand has a major impacton the efficiency and effectiveness ofmarketing communications; “largebrands have inherent advantages oversmaller brands; they have higherpenetration, better distribution, strongerrange and pricing strategies that help tomaintain and increase share.”

Brand successAnother finding which will be ofimportance to credit unions is that long-term marketing and advertisingcampaigns are far more effective thanshort term or ad hoc campaigns. Short-term marketing is on the rise and it isdamaging the profitability of marketing.This shift has been caused by recession-driven urgency, in businesses, to buildimmediate sales and a belief amongsenior management that this will beachieved through short-term tactics(rather than long-term brand-buildingstrategies). However, long-term

campaigns (those that are evaluatedover periods of longer than six months)are around three times more efficientthan short-term campaigns. Short-terminitiatives are, in fact, more effective atdriving transient sales effects, but theydeliver weak long-term growth.Businesses need to employ bothtechniques, but in the correctproportion.

Furthermore, the report points outthat emotionally-based campaignsoutperform rationally-based campaigns;"they are significantly more profitable,they are better at generating awareness,they are stronger at creatingdifferentiation and they form moredurable memories in the minds ofconsumers."

How the credit union’s NAC fits in The National Advertising Campaign(NAC), developed by theCommunications Team of the IrishLeague of Credit Unions (ILCU), ensuresthat the long-term advertising campaignof We look at Things Differently forcredit unions is effective, efficient anddelivers an ROI. Not only does theadvertising outreach entice and informnew and existing members about creditunion loans, but also ensures that the

overall credit union brand isrecognisable on both a local andnational level.

As new creative was added to thecampaign to help meet local marketingneeds, more and more credit unionshave been using the bespoke material,such as posters, leaflets, Facebook adsetc., and personalising for local needs -for which there is no design charge toNAC participating credit unions. Anemerging trend in credit unions is toemploy a local marketing professional orengage the services of a third party. Tohelp you save on further investment innew materials why not use the tools ofthe NAC and save on costly designcosts?

For credit unions to get more loanenquiries, people need to feel moreconfident to borrow from credit unionsand the NAC is tapping into thisemergent recovery narrative. Theconfident prospectors are targeted byadopting an approach that is attitudinaland motivational. "I want" versus "Ineed", "Emotional" versus "Rational".

Through the lens of the “Your Loan,Your Way” campaign, credit union loansare positioned differently to the rest ofthe market; Loans are not just availablethrough the credit union, they are here


New Report HighlightsImportance of Advertising& Marketing

SHORT TERMCAMPAIGNS

LONG TERMCAMPAIGNS

EFFICIENCY

FURTHER INFORMATION:For free personalisation of the NAC materials email: [email protected]

FOR MARKETING GUIDES AND TEMPLATES GO TO:www.creditunion.ie/membersarea/communications/marketingtemplatesguidelinesforcreditunions

THE MARKETING MULTIPLIED REPORT IS AVAILABLE FOR PURCHASE AT:www.coremedia.ie/marketing-multiplied

for people, not for profit. Credit unionsconcentrate on the reality of borrowing -loans are for real life events andpurchases; THE "I can stop pretending Iknow DIY" LOAN. The seeds ofborrowing motivation are being plantedby instilling confidence in the targetaudience to borrow from the credit unionby creating relatable bonds.

The campaign was developed to assistcredit unions to deliver a nationalcampaign which is visually strongenough to compete with the significantand increased spend of financialinstitutions in terms of advertising,marketing and point of sale material andthat could be adapted easily for localactivities.

By investing in creativity anddelivering a long-term advertisingcampaign that is consistently onmessage, the NAC is a clear example ofbest practice in marketing andadvertising in Ireland.

Time for marketing in the boardroomThe ‘Marketing Multiplied’ report alsofound that there is an absence ofmarketers from the Boardroom in Irishcompanies. Ireland is not the onlycountry where this is an issue. In factthis is even a characteristic ofboardrooms in the US, where marketingpractices would be considered advanced.A 2016 study by Forbes magazine foundthat just 2.6% of 65,000 companydirectors had a managerial-levelmarketing background.

This problem could well be one of thecontributing factors to the tendency tolook at marketing budgets andcampaigns as an expense, instead of aninvestment. This mind-set can be one ofthe biggest obstacles to real marketingand advertising success.

The report states that “Marketingtends not to be taken as seriously bycorporate Boards as it should be. Thereason for this has been the absence ofquantified, credible evidence to

demonstrate how essential marketing isto the long-term growth and profitabilityof businesses.”

In the digital age however, there arenumerous ways to track the performanceof marketing campaigns with thedevelopment of econometric models anddata analytics. With the availability ofquantifiable evidence on theeffectiveness of marketing campaigns,the time for marketing representatives inthe Boardroom is now.

The credit union marketing challengeThe challenge of growing the loan bookis one which is faced by all creditunions. The NAC plays a key role inraising awareness of credit unions andencouraging people to borrow from theirlocal or workplace credit union. The NACis not meant to replace local activitiesbut rather to supplement local activities.Acting alone, each credit union’s ‘voice’may be drowned out by largecompetitors. But together, the combinedresources of credit unions can deliver astrong, forceful national message in anincreasing marketing and competitionspace.


TIPS FOR CREDIT UNIONS:

• One of the most common questionsasked when it comes to marketing is‘How do you know if it’s working?’ Theanswer is simpler than you think. Ask! Atthe counter, over the phone, via email,whether it’s an enquiry for a loan, a newmember signing up – how did they hearabout you, have they seen theadvertising? Two or three simplequestions captured at that time, buildsinto a powerful measurement tool as theweeks and months progress.

• Track your data analytics fromonline/social media advertising, Googleand website traffic. Do traffic andenquiries spike when you're advertisinglocally? Where does your website trafficcome from?

• On average it is recommended that youshould spend 60% of your budget onbrand-building activity (long-term, broadreach, emotional) and 40% on salesactivation (short-term, tightly targeted).

• Avail of the free NAC personalisationservice for your local print/ web materialsand tap into the advantages of a longterm national advertising campaign.

• The NAC loan enquiry tool drives loanenquiries to participating credit unions.It is vital that your nominated emailaddress is checked regularly andresponded to promptly. Don't forget, ifthe enquirer is not yet a member, invitethem to join. Do not leave the queryunanswered. The development of thistool has significant potential for yourcredit union to directly follow up on hotleads that are actively looking for a loanwithin your local community.

• Assign Marketing to a staff member’s corerole and responsibilities - it doesn'talways have to be the Manager! Theperson responsible for the ultimatedelivery of your marketing plan shouldbe empowered to do so, with the agreeddecision making process outlined in yourmarketing plan.

Ireland’s brands arewitnessing a hidden tippingpoint in new paymenttechnologies, leaving themless time to adapt.The recent Irish launch ofGoogle’s Android Pay hasfocused our attention on newtransaction technologies andbegged us to ask what thefuture of payments and moneyholds for us in Ireland.

We are living through,perhaps, the biggestdisruption to money in history.The internet, smartphones,social media and big datahave made it possible totransform nearly any kind ofdata into currency, in turncreating radically new waysthat consumers andbusinesses can transact,create and exchange value.

This rapidly changing spacewill transform all our livesprompting us to ask what isdriving this disruption, howready are we for the changesto come and what it will meanfor consumers and brands?Core Media conducted astudy to find out.

THE FUTUREOF MONEYBy Thomas Geoghegan


THREE TECH TRENDS DRIVING THEFUTURE OF MONEYAs a small, open country, three globaltrends are poised to reshape Ireland in avariety of ways.

New ways to pay and transactIn future, it will be normal to use oursmartphones to pay for most things.Mobile wallets like Apple Pay will replacecontactless cards. Peer-to-peer (P2P)payment apps like Venmo and Snapcash,which allow people to send each othermoney directly, will largely replace cash.Internet-connected devices will befrequently used to trigger purchases, suchas Amazon’s Dash button that lets peoplebuy shopping items at the touch of abutton. It has been predicted that mobilewallet transactions in Europe will grow by62% by 2021, and P2P payments in theUS are poised to exceed $86 billion by2018.

The emergence of virtual currenciesalongside euros or dollars Consumers are getting used to the idea of‘earning’ from brands by converting their

data into ‘virtual currencies’ that willincreasingly co-exist with euros or dollars.Starbucks’ branded mobile wallet, whichcustomers use to pay for their coffee,converts their loyalty into instantMyStarbucks Rewards which they canspend in-store. Lifestyle tracking isanother evolving area for virtualcurrencies. Nike let fans use their healthapp data as currency to bid on exclusiveNike products. The idea of financial healthtracking is picking up as 75% of USmillennials say they track their financescarefully, and apps like Mint are alreadyhelping users track their ‘financial fitness’.

A future when banks exist but not how weknow themA recent PWC survey found 83% of Irishfinancial services managers believefinancial institutions are at serious risk. Wemay be looking at something like a‘bonfire of the intermediaries’ as manyfinancial services and traditional banks aredisrupted by financial tech start-ups whoare more agile in meeting consumers’needs, and emerging technologies like‘blockchain’.

New ways to pay

IRELAND’S APPETITE FORDISRUPTION Adoption of new technologies islargely driven by local factors. Tounderstand Irish people’s readinessto embrace these global trends,Core Media carried out a nationalsurvey among four generations ofIrish people to find out - Generation-Z (born from 1995 onwards),Millennials (born 1985-94),Generation-X (born 1962-84) andBaby Boomers (born pre-1961).

As a nation, we found surprisinglyhigh levels of openness to thesetechnologies. 60% of people inIreland believe we will become acashless society, 63% would usenew transaction technologies, and77% would trust tech brands likeGoogle or Apple to providetransaction services. These highfigures emphasise how quicklythese technologies could gomainstream in the near future.

But when we delved more deeplyinto the four generations, we foundthat while Millennials will be the firstto adopt mobile wallets, if we are tounderstand the future’s ‘newnormal’, we need to look at theirsuccessors, Generation-Z, whobring a very different moneymindset than their peers.

WHO IS GENERATION-Z?With the eldest turning 21 this year,Generation-Z will take on muchgreater significance as consumersin the coming years.

They are the first true digitalnatives – they don’t remember atime without the internet,smartphones and social media.Used to moving fluidly across

devices, they expect convenience inall their interactions and quicklylose interest if this expectation is notmet. They also have a more casualrelationship with brands – to them abrand is something they use, not alogo.

For brands in Ireland tosuccessfully adapt to money’sfuture, banks and retailers need tokeep in mind five key findings aboutGeneration-Z:• They are the most enthusiastic

about a cashless future – 24%believe Ireland will be cashless inthe next 15 years compared to16% of Millennials

• They are most prepared for acashless future – 75% wouldconsider using new paymenttechnologies compared to 66% ofMillennials

• They are more trusting of a widerrepertoire of tech brands toprovide alternative bankingservices such as Apple, Googleand Facebook, but also brandslinked to their lifestyles likeSnapchat

• They are significantly morecomfortable with sharing personaldata with finance brands – 49%of Generation-Z compared to33% of Millennials

For this reason, our researchunveiled a hidden tipping point.42% of Millennials say they haveused a new payment technology,but Generation-Z’s greaterenthusiasm and openness to doingthings very differently suggestspreparing for tomorrow’s newnormal means preparing forGeneration-Z’s needs now.


HOW WILL THIS AFFECTBRANDS AND BANKS?

This generational shift will profoundly affect howbrands and banks relate to Generation-Z and theproducts and services they offer to meet theiremerging needs.

To prepare for the future, we need to keep a fewimportant things in mind:

• Generation-Z’s different mindset will forcebrands to focus on being as useful and‘frictionless’ as possible – they will only adoptnew services if they see tangible benefits or theysolve real pain-points – this means tailoring totheir different needs and wants.

• Moving first on new payment technologies willbe a strong signal to Generation-Z to take noticeand enable brands get an edge over theircompetition – banks and brands will be underpressure to keep pace with emergingtechnologies that Generation-Z will expect asstandard.

• Banks and retailers will need to be whereGeneration-Z wants to pay - the gradual blurringof digital media channels and transactionchannels in people’s minds, for example throughP2P payments like Snapcash, will promptbrands to think how these technologies interactin the context of their existing business and actas tools to create better customer experiences.

• The design of shops, banks and payment pointswill need to continually evolve as connecteddevices become more common, and online andoffline worlds blur. Brands and banks will needto continually evolve the role of brick-and-mortar premises, perhaps having to choosebetween emphasising convenience orexperience.

• Brands will be expected to prove they takecustomers’ privacy and security very seriously orrisk losing trust overnight; while Generation-Zand Millennials are the most open generations tosharing data, they are also highly protective of it,preferring to do it on their terms.

The future of money is complex and fast-changing,but filled with opportunity for those who preparecorrectly for it.

Thomas Geoghegan is Strategic Planner at Core Media,Ireland’s largest media communications group.

Generation-Z

Clonakilty Credit Unioncelebrates 50thanniversary

When Clonakilty Credit Union first opened

its doors on the 4th October 1966, Ireland

was a very different country. Jack Lynch

was soon to become Taoiseach; RTE was in

its infancy, broadcasting in black and

white, and credit cards were unheard of.

Many banks of the day were only interested

in lending money to people who already

had healthy accounts and the credit union

offered a much-needed alternative. Donal

O’Reilly, the first Honourable Secretary,

said “Always remember the motto of a

credit union is not for charity or profit, but

for service to all its members.”

In 50 years of serving the community,

Clonakilty Credit Union has honoured

Donal’s words. As a result, membership

has soared from just 172 at the end of the

first year to almost 9,300 today.

Chairperson Noreen Burke says the

attraction of the credit union is the same in

2016 as it was 50 years ago; “People like

the personal touch of the credit union

because of the way banks treat them.”

VISION OF MONSIGNOR BARRETT

The arrival of credit unions in West Cork

was down to the vision of Monsignor John

Barrett PP who, during a visit to the USA

with Bishop Lucey in 1959, was struck by

the success of the credit union movement

in less affluent communities. Monsignor

Barrett and Fr Tom O’Riordan attended a

meeting of the Clonakilty branch of Muintir

Na Tíre on 8th October 1965, where it was

agreed that a credit union would benefit

the people of Clonakilty. A study group was

formed to decide the structure and rules of

the new credit union, and in August 1966

the first Board of Directors and a

Supervisory Committee were elected.

Tradition dictated that a priest act as

President, so Fr Tom O’Riordan – then a

curate at Mount Carmel – was appointed.

The credit union had a nomadic

existence in the early years, operating

variously from the Emmet Hotel, Charlie

Cullinane’s on Rossa Street, the Library

and the Scout Hall before premises were

bought on Kent Street in 1973. Next stop

was Pearse Street before finally settling in

their magnificent purpose-built home on

Kent Street in December 2001, just before

the currency switched to the Euro.

LOYAL MEMBERS

Kevin Mullen is a loyal member, who also

remembers the early days, and joined the

committee 40 years ago. “I borrowed over the

years for anything and everything. Only for the

credit union, we wouldn’t have a third of what

we have. For me the most important thing is

the staff. They are the heart of it. They meet

the public and help them every day and that’s

why people like to come in. They are the

frontline and our members trust them. But

that attitude must come from the top down.”

SHARES CLOSE TO €40 MILLION

Clonakilty Credit Union CEO Marie O’Leary

took a temporary summer job with the credit

union in 1991 and never left. “The credit

union has seen vast changes since I first

started working here, but the main focus has

remained the same – the service that we give

to our members. In 1991 we had a

membership of 1,856 with a share balance of

£1,831,885 and loans outstanding of

£1,393,381. Today our shares are

€39,942,119.46 and loans of

€11,752,717.23 with membership standing

at 9,277 and growing.”

Clonakilty Credit Union has paid members

a dividend and interest rebate every single year

since 1966, bar one. The maximum loan

permissible in 1966 was £100. Today,

members can borrow up to €100,000 subject

to terms and conditions. Members can be

enrolled from birth, offering the entire family

the opportunity to save and manage their

finances.

50TH ANNIVERSARY CELEBRATIONS

A party was held on the 6th October 2016 to

celebrate the 50th anniversary of Clonakilty

Credit Union serving the community. The

popular local radio station C103fm sent along

a number of radio presenters, and there were

competitions, music, face painting and

refreshments. A very enjoyable day was had by

everyone.

The credit union also buried a time capsule

outside the building on the 30th December

2016. There was a great response to the call

out for memorabilia to depict what life was like

in Clonakilty in 2016. An iPhone, photos and

newspapers were included. A plaque was also

placed stating that the time capsule should be

opened on the 30th December 2066.

Clonakilty Credit Union's Therina O’Mahony, Martin

Collins, Noreen Burke, Val O’Sullivan and Arran

O’Driscoll with Lord Mayor Anthony McDermott

preparing the time capsule

50th Anniversary Celebrations at Clonakilty Credit

Union

The Time Capsule Plaque


CLAIMS SETTLEMENT;WHAT YOU NEED TO KNOW FOR 2017

TAKING ADVANTAGE OF THE CLAIMSCHECKLIST The main reason for delays in claimsettlements is incomplete or missinginformation/ documentation.To assist credit unions when making aclaim, we have included an LPLS/DBIclaims submission checklist on our claimform. The aim of this checklist is to avoidunnecessary delays.

FOR ALL CLAIMSAll claims need to be accompanied by afully completed ECCU claim form. Eachclaim must also be signed off by twoauthorised signatories on behalf of thecredit union.The information required includes (but isnot limited to) the following: • member’s name• member’s date of birth• last date worked• date last in good health• date of death/disability• proof of death/disability• date member joined the credit union.

LOAN PROTECTION CLAIMSDeath ClaimsFor deceased members who have met theloan protection guidelines and wereinsured at the time the loan was granted, aloan protection claim can be made. Thefollowing documents are required asevidence:• Loan application & credit

agreement/promissory note for loanoutstanding at the date of death;

• ECCU Declaration/ Declaration of Health/Member Declaration (where applicable);

• Loan statements showing the date theloan was granted, last paid and thebalance at date of death;

• If the loan protection claim is for lessthan €500/£500 only loan statements atthe date of death are required;

• Declaration of Own Use if the memberwas 80 or over when the loan wasgranted;

• For written-off loans you must alsoprovide a loan statement which showswhere the write-off occurred.

Disability ClaimsIn the event that the submission relates toa disability claim, the submission shouldinclude specific and relevant informationto that disability. This includes the natureof the disability, the date that the memberbelieves they became totally andpermanently disabled (TPD) from anyoccupation.

The following documents must also beprovided when submitting a disabilityclaim:• Loan application & credit

agreement/promissory note for loanoutstanding at the date the memberbelieves they became (TPD);

• ECCU Declaration/ Declaration ofHealth/ Member Declaration (whereapplicable);

• Loan statements showing the date theloan was granted, last paid and thebalance at date the member believes theybecame TPD.

Life Savings ClaimsCredit unions submitting life savingsclaims are asked to fully complete therelevant section of the claim statement. Allrelevant share balances should becompleted on the claim statement(including date of death, date last worked,date last in good health). It is important forthe credit union to make sure that theyhave checked for the lowest insurablesavings balance when providing details ofthe insured balances at ages 55, 60, 65 &70.• If the claim is under €500 only account

statements at date of death arerequired;

• If the claim is over €500 account

statements showing the balancescompleted on the claim statement arerequired.

Death Benefit Insurance ClaimsOnce a credit union has confirmed that amember meets the eligibility criteria fordeath benefit insurance, a claim can besubmitted to ECCU. These claims shouldbe accompanied by: • Account statements at the date of

death; • For credit unions paying by operational

expense but applying a local eligibilityrequirement e.g. min €/£200 in theaccount, relevant statements provingmember was insured are required;

• For credit unions paying by deductionfrom dividend/savings, relevantstatements proving member wasinsured are required;

• For credit unions paying by memberpay, proof of payment is required.

If you require assistanceIf you require assistance in completing aclaim, or have any questions relating to aclaim you have submitted, please contacta member of our claims team on 01-6146719.

If your credit union requires training inrelation to the completion of claims, LPLSroadshows will be held later in 2017.Alternatively, credit unions can contactMark @ 087 1127429 or Aoibhinn @ 0876399223 in the ILCU Insurance ServicesDepartment to arrange in-house training.

We would like to thank you for yourcontinued support and we look forward tocontinuing to help you in 2017.

The total number of claims received by ECCU in 2016 was 23,803. This is the highest numberof claims received in a year by ECCU. ECCU’s claims processors settled all claims within 15working days of receipt of all the necessary documentation, as per our Customer Charter.

2016 2015

Claims Received 23,803 22,412

Claims Processed 24,257 22,349

Claims Outstanding(at 31st Dec) 982 1,371


SMARTsigns-up withCUSOP

Direct Debit (DD)

CUSOP has over 110 credit unionsusing its electronic payments platformand over 50 are already using orplanning to use direct debits to collectmembers’ loan repayments. There arebenefits of using direct debits, so wefeature some information about theservice in this spring edition of CUFocus.

In Northern Ireland (NI) the roll-outof direct debits will be a phase two ofdevelopment, following on from thedevelopment of the credit transfersolution which has now been delivered.The focus here is on SEPA directdebits which have been rolled out toRepublic of Ireland (ROI) creditunions.

“A direct debit is an instruction froma customer (Debtor) to their bank orpayment services provider, authorisingan organisation (Creditor) to collectvariable or fixed amounts from theiraccount, as long as the customer(Debtor) is given advance notice of thecollection amounts and dates.”

Source: Banking & PaymentsFederation Ireland.

SEPA Direct Debit (SDD)The Single Euro Payments Area (SEPA)is a European-wide initiative tostandardise the way we make andprocess electronic payments in Euro.SEPA enables customers to makepayments (direct debits, credittransfers (including standing orders))to anyone located within the SEPAZone. SEPA creates a fast, safe andefficient borderless payment systemthroughout the 34 SEPA countries forEuro denominated transactions. ASEPA Direct Debit (SDD) is thestandard across Europe for thecollection of funds between a debtor(payer) and the creditor (payee). DirectDebiting ensures a fast, efficient andaccurate means of collecting paymentsto provide greater certainty.

The SDD Core scheme in anutshell“The SDD Core scheme, like any otherdirect debit scheme, is based on thefollowing concept: ‘I request moneyfrom someone else, with their prior

approval, and credit it to myself’. Thepayer and the biller must each hold anaccount with a payment serviceprovider (PSP) located within SEPA.The transfer of funds between thepayer's PSP and the biller's PSP alwaystakes place in the euro currency. TheSDD Core allows a biller to collect fundsfrom a payer's account, provided that amandate has been granted by thepayer to the biller. A mandate isauthorised by the payer to authorise thebiller to collect a payment and toinstruct the payer's PSP to pay theagreed collections.”

“The SDD Core scheme may be usedfor single (one-off) or reoccurring directdebit collections. The SDD Corescheme grants payers a 'no-questions-asked' refund right during the eightweeks following the debiting of apayer's account. During this timetherefore, any funds collected via theSDD Core scheme will be credited backto the payer's account upon request.”Source: European Payments Council.

Direct Debit Originator – CUSOPCredit Unions Direct Debit Originator enables creditunions to collect payments directlyfrom their members’ banks. Thisservice is useful if the credit union

collects regular amounts, such as loanrepayments from their members’ bankaccounts and CUSOP is aware thatmany credit unions find this methodmore efficient that standing ordercollections. By using CUSOP, directdebit transactions can be paid straightto or from members’ accounts usingtheir IBAN – international bankaccount number and by-passing thecredit unions local bank. To beaccepted into the SDD scheme, acredit union must have a sponsor suchas Danske Bank, CUSOP’s chosenprovider.

The Benefits of Direct Debiting■ Controlling cash flow timing. ■ Cutting costs through automation. ■ Reducing administration. ■ Accounting efficiency and fast

delivery. ■ Maintaining records &

reconciliations. ■ Improving control and security. ■ Greater flexibility and convenience.

If you are interested in moreinformation about this service fromCUSOP, or wish to be connected with acredit union already availing of it,please do not hesitate to contactCUSOP at 01 6146980.


SMARTsigns-up withCUSOP

MPCAS – MembersPersonal CurrentAccount Services

In November 2016, the Central Bankissued details on the ‘MPCAS AdditionalService approval process’ for credit unionsand subsequently wrote to all credit unionsin December. This new MPCAS processallows credit unions to obtain approval fora member personal current account andmember payment services (including debitcards). There are certain conditionsattaching to the application processincluding operational standardisation andshared services facilities. CUSOP iscommencing the application process withits participating credit unions to developthe MPCAS service and further details willissue as the application process develops.

Antrim Credit Union Using CUSOP

Contact CUSOP:CEO: Michael KeeganPhone: +353 1 6146980Email: [email protected]: www.cusop.ie


Pictured (L-R); Andy McCombe, Danske Head of Transaction Services, Mr. JoeMcLoughlin, Chairman, Antrim Credit Union, Michael Keegan, CEO, CUSOP(Payments), Thomas Cox, Director, ICECube.

Diarmuid Hanrahan, CUSOP (Payments) meeting with representatives of ICECubeand some Fermanagh & Derry Credit Union’s at Enniskillen CU in January.

CUSOP (Payments) DAC t/a CUSOP isregulated by the Central Bank of Ireland.CUSOP also acts as a technical servicesprovider in respect of the provision ofDirect Debits, which is a non-regulatedactivity. CUSOP is a designated activitycompany and is registered in Ireland with aregistered office at: 33-41 Lower MountStreet, Dublin 2. Registration No.: 502291.Directors: M. O’Neill, J. Mullen, N.Madden, J. O’Donovan, M. Keegan.


ALL IRELAND CREDITUNION ART COMPETITIONWINNERS ANNOUNCED

Cash prizes were awarded to thewinners by broadcasting legend MartyWhelan at the prize-giving ceremony,where the beautiful artworks were alsoexhibited and admired by the crowds inattendance. This year’s theme ‘Dreamsare made of this….’ was open tointerpretation by each entrant. The themeaimed to give all entrants a wide-rangingscope to express their creativity andimagination and resulted in some visuallystunning and dramatic entries.

Speaking at the awards ceremony andexhibition, Irish League of Credit Unions’(ILCU) President, Brian McCrory said“This competition brings together peopleof all ages from every corner of Irelandand is a celebration of their diversity andcreativity. The ILCU will continue to

support and nurture the artisticdevelopment of young and old in ourlocal communities with this fantasticannual event, which is trulyrepresentative of the credit unionmovement’s spirit of community.”

Mr McCrory continued “I am greatlyimpressed by the quality of the artworkon display at Croke Park. It has been verycompelling to see how uniquely each ofthe artists interpreted the theme ofDreams. I would like to extend a hugecongratulations to each and every artistthat participated.”

The judges for this year’s competitionwere: Una Sealy, RHA Gallery and RTE’sPainting the Nation, Ursula RetzlaffO’Connell, Artist, and John Walsh,Creative Director FOCUS Advertising.

The winners of the All IrelandCredit Union Art Competition were

announced at a stunning prize-giving ceremony in Croke Park on

Sunday February 12th. Thecompetition is now in its 33rd

year and continues to be hugelypopular with children and adultsalike. A massive 30,000 entrieswere received this year through

300 credit unions.

Lauren Dolphin, winner of the 14 to 17 years category (Naomh Breandain Credit Union)


SPECIAL CATEGORY

Category Name Credit Union Position7 yrs & under Margaux Gilbourne Mallow Winner 7 yrs & under Benjamin O’Meara Rathkeale and District Runner Up 7 yrs & under Lara du Plessis Cooley Merit 8 to 10 years Clodagh McDonagh Macroom Winner8 to 10 years Ruby Gallagher Cootehill Runner Up8 to 10 years Laura Szymikowska Kilrush Merit11 to 13 years Eileen Novac Tralee Winner 11 to 13 years Ariane Quinn Kilkeel Runner Up 11 to 13 years Tolu Emmanuel Cuchullain Merit 14 to 17 years Lauren Dolphin Naomh Breandain Winner 14 to 17 years Hannah Wright Rathmore and District Runner Up 14 to 17 years Aoibhinn Kinsella Gorey Joint Merit 14 to 17 years John Carey Cahir Joint Merit 18 years & over Katie Collins Tralee Winner 18 years & over Yvonne Hickey Greenhills Runner Up 18 years & over Lisa Power Waterford Merit

Category Name Credit Union Position7 yrs & under Callum Bowes Blackrock Winner 7 yrs & under Liam Grainger Irvinestown Runner Up 7 yrs & under Orla O’Donoghue Rathmore and District Merit 8 to 10 years Chloe Grennan Cootehill Winner 8 to 10 years Adam Crowe St. Francis Runner Up 8 to 10 years Darragh Hunter-Kerr Letterkenny Merit 11 to 13 years Shannon Ward Lurgan Winner 11 to 13 years Darragh Moran Wexford Runner Up 11 to 13 years Roisin Cotter Cahir Merit-joint11 to 13 years Ewan McGoll Antrim Merit-joint14 to 17 years Ellen Mooney Portadown Winner 14 to 17 years Eoin Herlihy Rathmore and Distrcit Runner Up 14 to 17 years Zara Mason M.P.C.C. Merit 18 years & over Sean McNamara Mountmellick Winner 18 years & over James O’Shea Killarney Runner Up 18 years & over Venus Reilly Gorey Merit

Group Le Chéile Special Class The Lough Winner

ART COMPETITION WINNERSGENERAL CATEGORY

Darragh Hunter-Kane, (Letterkenny Credit Union) Margaux Gilbourne, (MallowCredit Union), Katie Collins (Tralee Credit Union) and Eoin Herlihy (Rathmoreand District Credit Union) with their winning entries

ILCU President Brian McCrory and RTE's Marty Whelan join some of the winnersas they showcase their art in Croke Park

Ongoing learning anddevelopment has been a

cornerstone of the creditunion movement since itsinception, as evidenced by

the study groups thatformed the basis of thevery first credit unions

over half a century ago. Inrecent years credit union

personnel havecontributed great effort,resources and dedication

in becomingknowledgeable and

qualified with aproliferation of newlyqualified credit union

personnel.

Much of this has been driven by a wish tobetter service our members and developour personnel, but much is also due toexternal factors, in particular, the need tomeet the Minimum Competency Code(MCC) requirements outlined by the CentralBank of Ireland (Republic of Ireland (ROI)).

The Irish League of Credit Unions (ILCU)surveyed credit unions in ROI early in 2017to see what they thought about the need forqualifications for the core credit unionactivity of lending, and in particular theextension of MCC requirements to corebusiness and boards. The feedback isilluminating. 111 credit unions responded(representing 35% of all ROI credit unions)and the sample was representative of theentire credit union movement; includingdiffering sizes, locations, and types(community and industrial). The ILCUtherefore feels that this is an adequateresponse to extrapolate the full impact theproposed changes to MCC would haveacross the credit union movement.

Below are two of the main findings fromthis survey;

We asked do you believe that all staffcurrently providing loans should, goingforward hold an MCC qualification toprovide those loans? From 93 credit union responses, 66%thought yes they should.

And when we asked how many of yourcredit union's staff, who currently provideloans, currently hold an MCC Lendingqualification? Of 84 credit unions who responded, 25%of staff, (from the 815 staff accounted for),were reported to not currently have an MCCqualification in lending.

In November, the Central Bank of Irelandissued a Consultation Paper (CP106) onthe proposed extension of the MinimumCompetency Code, 2011. Some of themain suggestions in this consultation paperwere:■ The extension of a qualification

requirement to all products offered bythe credit union (currently onlyinsurance products have a qualificationrequirement).

■ A potentially challenging timeline for thedeadline for gaining those qualifications.

■ A proposal to add an “experience”requirement, in addition to aqualification, for persons selling a newproduct for the first time.

■ Discussion on what competencyrequirement the boards of mortgageintermediaries should have.

The consultation paper also suggests thatthe MCC be placed on a more formal legalbasis (from a Code to a Regulation) which,

Do Hold(Percentage)

Do Not Hold(Percentage)

Yes(Percentage)

No(Percentage)

Credit Union QualificationsRequirements & the MinimumCompetency Code (ROI)


Key Issues1 Page 3, Revised RIA Guidelines : How to Conduct a Regulatory Impact Analysis, Roinn an Taoiseach, June 2009

in addition to a compulsory annual reviewof staff members development andexperience needs, will result in a systemicshift in the learning and educationenvironment for ROI credit unions.

ILCU Responses to CP106A Regulatory Impact Analysis (RIA) isRequired Bearing in mind the very significantimplications of what is being proposed, theILCU strongly advocates that a RegulatoryImpact Analysis be conducted to ascertainthe impact on the credit union sector forsome of the more far reaching elements ofthe consultation such as; ■ the proposed extension of minimum

competency requirements to core creditunion products without grandfatheringarrangements,

■ the suggestion that credit union type“demand deposit” accounts be definedas “term accounts” which would resultin the application of mandatoryinvestments qualifications on asignificant cohort of credit unionpersonnel not previously under thisrequirement,

■ the proposed extension of minimumcompetency requirements to non-executive, volunteer, non-remuneratedboards of credit unions for the purposeof oversight of mortgages.

The purpose of an RIA is that it, in part,“helps to identify any possible side effectsor hidden costs associated with regulationand to quantify the likely cost ofcompliance on the individual citizens or thebusiness”1.

Key Issues■ Clarity is required around the definition

of “Term Deposits” so as to not captureunder an Investment MCC productcategory for the first time those creditunions offering savings share sub-accounts to their members.

■ Some form of recognition of relevantexperience be provided to allow thosewith four years’ prior experience inconsumer lending, (and if credit unionshare sub-accounts are to be classed as“term deposits”, then in savings andinvestments also), and such persons beallowed to continue these activitieswithout a qualification requirement.

■ Should the above recognition ofexperience not be considered then wewould stress that credit union personnelbe given sufficient time, (i.e. four years atminimum), to become qualified in coreproducts of lending and savings on aonce-off basis, in recognition thatgrandfathering was not offered to creditunions for core business areas.

■ That the Central Bank of Ireland permitscurrent credit union focused MCCrecognised qualifications continue tomeet credit union core competency goingforward, and this should include the mostwidely obtained MCC qualifications in themovement – Pathways Diploma (and theACCUP qualification which preceded it).

■ That consideration be given to thepracticalities of credit unionstransitioning into mortgage products forthe first time and that the proposedsuggestions do not effectively block thisimportant development to increasechoice and bring competition to themortgage market, through unattainable“experience” requirements. We suggestthat the previous extensive lendingexperience built up in credit unions overthe past sixty years be recognised asmeeting the proposed experiencerequirement, thus providing for a cohortof personnel to oversee new entrantswhile qualifications become establishedin the sector.

■ That the application of a mandatoryqualification requirement on the entireboard of a credit union consideringoffering mortgages is excessive andunnecessary, and that alternative meansto establish competency be permitted ,i.e. membership by all board membersof a mortgage intermediary of arecognised CPD scheme.

■ That the timing of application of anyfurther Conduct of Business regulation(such as any roll out of the fullConsumer Protection Code to full creditunion core business) reflects the need toallow an adequate bedding-in of theseproposed requirements.

Education and Training for the MCC The ILCU is redeveloping its Pathwaysoffering to ensure that it remains relevant tocredit union personnel and helps themfulfil both their current and ongoing generallearning and specific MCC obligations. Thekey to this will be the creation of a moremodular flexible offering so that modulescan be taken as and when they arerequired, to meet the product categoriesoffered by the credit union, be it housingloans and mortgages today, or futureproducts such as pensions andinvestments in the future. In addition, theCU CPD scheme remains an important wayto maintain product knowledge andqualification designations and ensure allCU CPD members remain up to date withtheir various obligations and requirements.

For further questions on your MCCrequirements, or questions on CP106,please contact Michael Mullen or SharonHenvey in CU Learning and Development on01 614 6731 or [email protected]



IntroductionResearch suggests that Board performanceis strongly linked to the dynamics of theteam. The challenges of business todayrequire new perspectives and skills,however Boards often lack the ability toobjectively evaluate their makeup, todetermine if the right people with the rightskills are at the helm to steer the creditunion towards its strategic objectives. Anexample of this is a credit union that hasdecided that it needs a greater digitalpresence, but has no representation on theBoard with the required knowledge andskillsets.

Ideally, the credit union must attractdirectors who can provide valuablestrategic input on an individual basis, andfit into the team to ensure the right balanceand chemistry is in place to achieve adynamic that is greater than the sum of itsparts.

There are parallels here from the world ofsport where a team manager is required tobuild a team through recruiting players withthe technical ability and character that willenhance the balance of the team, and thatcan collectively achieve the overall strategicobjectives of the club. It is important topoint out however, that in the world ofprofessional sport, there is vast amounts ofmoney and even then, this can prove to bea challenging task.

Below are some useful methods for bothself-evaluation as a Board member and toevaluate the dynamic of the Board as awhole.

Match board skillsets to the strategicplanA good place to start is to look at yourstrategic plan, and ask yourself, if you hada blank page, what skillsets would yourBoard members need to have to overseethe delivery of this plan effectively? Youmay be pleasantly surprised to find thatyour current cohort of Board memberspossess all of the skills required.

This exercise may also identify skillsetgaps that may prove to be a barrier for theBoard. Is a training intervention required oris there an opportunity to recruit a newdirector with the required skills? The

Nomination Committee will play a key rolein this area.

The Importance of Board BehaviourDr Meredith Belbin originally identified nineBelbin Team Roles as part of a unique studyof teams that took place at HenleyBusiness School in 1969. The nine BelbinTeam Roles are different behavioursidentified that individuals display in a team.According to Belbin, for a team to besuccessful it needs to have access to eachof the nine Belbin Team Roles.

The nine roles are:

In a study of what makes Boards moreeffective, published by Harvard Business

Review, it was found that Boards tend toprogress along a four-phase continuum(shown below).

Essential to creating a high-performanceBoard is agreement and alignment at theoutset on where the Board actually standsin this continuum and where it needs to be.

Foundational Boards at one end of thecontinuum tend to focus on complianceand play it safe. Strategic Boards at theother end, demonstrate high performancewhere directors take appropriate risk tomake significant contributions and lastingimpact on enterprise value. The studyidentified five “disrupters” that tend tohinder the progression of Boards towardhigh performance. These disrupters are:

1. Lack of clarity on the roles of individualdirectors and the Board as a whole.

2. Poor process management hinderseffective Board preparation, meetingmanagement, and communications.

3. Lack of alignment and agreement onstrategy causes disinterest among Boardmembers, who then simply default totackling regulatory and complianceissues

4. Poor team dynamics fracture Boards andlead to power struggles.

5. Board composition is a seriousimpediment, if not done right.

Reflection on the effectiveness of theBoard can take place as stand-alonesessions (an away day for example), orsimply 10 minutes set aside at the end ofeach meeting where self-evaluation andself-reflection becomes part and parcel ofthe Board meeting.

Further information on the topics discussedin this article are available in the BoardDynamics and Effectiveness – Tools andTechniques to Consider guide available inthe CU L&D Guides section ofwww.culearn.ie .

How dynamic is your Board?

1. ResourceManager

2.Teamworker

3. Co-ordinator

Foundational Developed Advanced Strategic

4. Plant 5. MonitorEvaluator

6. Specialist

7. Shaper 8.Implementer

9. CompleterFinisher

Ballinasloe Credit Unioncelebrates 50 years servingthe community

Ballinasloe Credit Union was founded in

1967 and has come a long way since then.

Its success today is an everlasting

testament to the lives of the founding

members, volunteers, directors &

supervisors whose vision and commitment

laid the foundations for the community and

credit union that is in place in 2017.

Between March and December 2017 the

credit union will undertake a series of

promotional and celebratory activities to

mark this milestone.

BALLINASLOE CREDIT UNION IN ITS

INFANCY

The First AGM of Ballinasloe Credit Union

took place on the 24th April 1967 in

Creagh National School. The following

June, volunteers started collecting

members’ savings in a room at the rear of

Ballinasloe Town Hall. The first monies on

that occasion were collected in a margarine

box. On June 14th 1967, the first loan was

granted to a member for £100 to buy a

shop refrigerator. In total in 1967, 40 loans

with a value of £1,015 were granted by the

credit union.

The credit union guidebook first

published by Nora Herlihy in 1962 (see

image) was used as a point of reference

throughout the infancy of Ballinasloe Credit

Union, and the guide resides on display in

the Boardroom to this day.

One of the founding members of the

credit union, Liam Kelly, continues to serve

as a Director on the current Board. Liam

served as Secretary of the Ballinasloe Credit

Union for over a quarter of a century, and

has been dedicated to serving the credit

union cause at local, national and

international level.

MILESTONES

In September 1977, the Board of

Ballinasloe Credit Union agreed to purchase

Carty’s in River Street for £16,400 and the

credit union office remained

there until 1996, when the

new office opened on Main

Street.

In December 1978 the

Board of Ballinasloe Credit

Union agreed to increase the

common bond and as a result,

the common bond now

extends into counties Galway,

Roscommon and Offaly.

Anyone living or working

within a 15 mile radius of

Ballinasloe is welcome to join

the credit union.

In May 1981 Maureen Greham became

the credit union’s first employee.

In 1987 €1,000,000 in shares is

reached for the first time.

In 1995, the current Manager of

Ballinasloe Credit Union Noel Madden (a

former Irish League of Credit Union

Director) was appointed Manager.

In 1996 the 10,000th member joined

Ballinasloe Credit Union.

In 1998, the credit union launched a

social fund to support community projects.

To date, in excess of €700,000 has been

donated to local groups and committees in

the common bond.

In 1999, Ballinasloe Credit Union

launched the members’ car draw. Paddy

Ruane from Menlough became the first car

draw winner. Between 1999 & 2016 there

were 72 car winners and hundreds of

members won various cash prizes

In March 2000, the

membership of Ballinasloe

Credit Union reached

15,000.

In October 2001,

Ballinasloe Credit Union

broke through the €25 million

share barrier.

By June 2003 the €50

million share barrier was

broken.

BALLINASLOE CREDIT

UNION AND COMMUNITY

DEVELOPMENT

Ballinasloe Area Community Development

Ltd. was set up by bodies representing

sections of the community in the town of

Ballinasloe in 1999.

BACD Ltd. is an all embracing

development company with a remit for

community. Through its enterprise and

technology centre the company has

provided incubation units for entrepreneurs

and premises for service businesses. BACD

houses 17 companies at its enterprise

centre and provides 65 jobs. Ballinasloe

Credit Union is proud to be a part of this

great community organisation.

Through its own sponsorship of local

events, donations to community groups and

grants from the social fund, Ballinasloe

Credit Union has assisted many local

community groups and organisations. It has

distributed in excess of €820,000 in grant

sponsorship since 2000.

BALLINASLOE CREDIT UNION TODAY

Total Membership: 18,000

Assets: In excess of €97 million

Savings: Over €84 million

Loans: in excess of €37 million

Staff: 21


Over 230 delegates were in attendance atCroke Park to learn how they can prepare forthe General Data Protection Regulation(GDPR) due to come into force in 2018.

The Credit Union Compliance Centre(CUCC) is committed to supporting its creditunions in preparing for up-streamcompliance requirements. Coming downthe line for credit unions is the introductionof the GDPR in May 2018; which representsthe most significant and wide-rangingoverhaul of data protection requirements inthe last decade.

To this end, the CUCC held a GDPRWorking Group event for all affiliated creditunions in the iconic home of GAA - CrokePark on Wednesday 25th January. EdFarrell, Irish League of Credit Unions (ILCU)CEO, commenced the proceedings bywelcoming the 230 delegates, invited guestsand speakers. In his speech, Mr Farrellrecognised the pressure being felt by creditunions recently due to the introduction of awide array of new regulations andunderlined the commitment of the ILCU tocontinue its work to ensure new regulationis both proportionate and appropriate forcredit unions. He also highlighted the rolethe ILCU plays in supporting credit unionsto implement an effective complianceprogramme through the CUCC,commenting “Today is a perfect example ofhow valuable cooperation in complianceand risk management can be for creditunions. As these functions continue toincrease in importance, the League is firmlycommitted to further enhancing thesupports and reach of the Credit UnionCompliance Centre.” The CEO concludedhis speech by introducing Dale Sunderland,Deputy Commissioner within the Office ofthe Data Protection Commissioner (ODPC),to deliver the opening address.

The Deputy Commissioner outlined thework currently being undertaken by theODPC to prepare for the transposition of theGDPR into Irish legislation by May 2018. Healso highlighted a number of specific areas

of data protection compliance which theODPC will prioritise in its inspections offirms over the coming months.

The Data Protection Working Groupcontinued with seven presentations fromleading experts in data protection covering arange of compliance areas related to theGDPR. Denis Kelleher, Senior Legal Counselin the Central Bank of Ireland spoke onsome of the challenges facing datacontrollers in interpreting their legalobligations when processing data. MarianneMatthews from Millett & Matthews Solicitorsprovided compliance officers with practicalguidance on responding to a data accessrequest. This presentation included arecommended nine stage procedure fordata controllers to implement to ensureaccess requests are dealt with correctly.

The next speaker Davinia Brennan, anAssociate and Knowledge Lawyer with A&LGoodbody, provided practical advice tocredit unions on how to prepare should they

be subject to a data audit by the ODPC. Inaddition to giving tips on the audit processitself, she advised on a number of simplesteps which can be taken by a credit unionto greatly improve their engagement withthe ODPC. The final session of the WorkingGroup was presented by Gavin D’Alton,Senior Manager at BSI Espion. Drawing onhis extensive cyber security experience fromworking with a range of firms, Gavinprovided a practical framework for creditunions to analyse and better protect itsdata. This framework involved four stages –identify, classify, comply and secure.

Another highlight from the day was theannouncement by Sharon Farrell,Compliance Advisor, that the CUCC will beproducing a suite of supports for itssubscribing credit unions to assist inimplementing the GDPR. Since the WorkingGroup, the CUCC has issued its first GDPRsupport – a template for data breachnotifications.

Feedback from the 230 delegates wasextremely positive. Many of the credit unioncompliance officers, managers and riskmanagement officers in attendance praisedthe quality of speakers as well as thetimeliness and relevance of the contentcovered throughout the day. Speaking afterthe event Kevin Loughnane, Head of Risk &Compliance, stated “The CUCC Team ispleased with the success of today’s DataProtection Working Group, which has beenthe culmination of extensive planning andcoordination over the last number ofmonths. The CUCC is uniquely positioned tofacilitate these productive complianceforums for senior officers to effectively dealwith emerging issues such as the GDPR. Iwould like to thank each of the speakers forthe consistently high standard ofpresentations delivered throughout the day.I would also like to thank the manydelegates in attendance at this DataProtection Working Group and look forwardto seeing them again at the CUCC AnnualConference 2017 in October.”

CUCC Data Protection Event


The CUCC is uniquely

positioned to facilitate

these productive

compliance forums for

senior officers to

effectively deal with

emerging issues such as

the GDPR.


10 KEY CHANGESComing for Credit Unions under the GDPR

1. A “right to be forgotten”: when an individual no longer wants their data to beprocessed, and provided no legitimate basis for processing it exists, the data may bedeleted. This centres around protecting and empowering individuals, and not aboutdeleting the past.

2. Explicit consent: data processing may only occur with explicit consent unless certainconditions exist. Such consent must be freely given, specific, informed and constitute adefinite indication of the data subject’s wish to, either by a statement or by a clearpositive action, agree to the processing of his or her personal data.

3. Easier access to data: individuals will have more information on how their data isprocessed and data controllers will need to facilitate greater transparency in theprocessing of same. A “right to data portability” will make it easier for individuals totransfer personal data between service providers coupled with a right to object tocertain data processing activities and to decisions taken by automated processes.

4. Security monitoring/disclosure to third party authorities: in the event of a data breach,data controllers must notify the competent authority without undue delay and, wherefeasible, no later than 72 hours after being aware of the breach, unless the breach isunlikely to result in a high risk to individuals’ rights and freedoms.

5. Data protection by design and by default: data controllers will be required to execute aPrivacy Impact Assessment (a “PIA”) where the processing of personal data is likely toinvolve high risk to the privacy rights of individuals. Data protection safeguards mustnow be built into products and services from inception and privacy-friendly defaultsettings will be the norm e.g. on social networks and mobile apps.

6. Breach notification and increased sanctions: fines of up to 4% of annual worldwideturnover (in the case of a company) may be imposed for intentional or negligentbreach of certain obligations in the GDPR.

7. Data classification: the definition of sensitive data has been extended to includegenetic data and biometric data.

8. Children and online services: children under 13 years of age cannot consent to theprocessing of their personal data in relation to online services. For children betweenthe ages of 13 and 15 inclusive, an organisation must seek parental consent for theprocessing of their personal data. Member states can opt to reduce this threshold,though it is not permitted to go below 13 years of age.

9. Evidence of compliance: one of the key themes of the GDPR is accountability. Thisheralds a major change and requires organisations, including credit unions, to beproactive in embracing same. Credit unions must demonstrate what policies andprocedures are in place and also how they monitor ongoing compliance with theGDPR.

10. Data protection officers: In certain circumstances data controllers and processors mustappoint a Data Protection Officer (“DPO”). This is provided that (i) processing iscarried out by a public authority (ii) the core activities of the controller or processorconsist of processing which, by its nature, scope or purposes, requires regular andsystematic monitoring of data subjects on a large scale or (iii) the core activities consistof processing on a large scale of special categories of data.

Data protection is one in arange of compliance areasthat the CUCC is currentlyproviding support on to 150credit unions. For moreinformation on the CUCCRisk and ComplianceAdvisory Services, pleasevisit www.cucc.ie [email protected]

Until the 1980s when it collapsed, there hadbeen a strong cooperative movement in TheGambia. In 1992, the Irish League of CreditUnions (ILCU) Foundation started to supportThe Gambia to rebuild their credit unionmovement based on modern principles. TheGambia can be considered one of the ILCUFoundation’s many success stories thanks toIrish credit union contributions.

Alan Moore, ILCU Foundation GeneralManager, says that there are two things hehas seen as a result of our work in TheGambia: “The power of partnership – Irishcredit unions working with Gambiancounterparts to build a credit unionmovement is an incredible thing to witness.Also the huge impact the credit unionmovement has had in The Gambiaover the past 20 years; thenumber of people who haveaccess to savings and loanshas skyrocketed, whichhas helped bring them outof poverty using the samemodel we have been usingfor the past 50 years inIreland.”

Today, there are over 70credit unions, with around 70,000members and total savings of €16million. Given that the average Gambianhousehold has up to 10 people in it, creditunion membership supports up to 700,000people, which is close to 50% of thepopulation.

The Foundation piloted a coachingprogramme to The Gambia in 2016, wherebyfour Irish credit union senior staff, SabrinaWoods, CEO of Connolly CIE Credit Union,Liam McCullagh, Manager of Camlin CreditUnion, Louise Shields, Compliance Managerat St. Anthony’s and Claddagh Credit Union,and Pat Morrissey, Business Development &Marketing Manager at Synergy Credit Union,volunteered their technical expertise to theirGambian counterparts.

The coaching programme is in keeping withthree of the operating principles of the Irishcredit union movement: ongoing education;cooperation among cooperatives; andinternational social responsibility. BothSabrina and Pat had intended to travel to TheGambia with two new coaches in February2017, but, unfortunately, due tocircumstances in The Gambia, thisprogramme has been postponed until later inthe year.

The current emphasis of the Irish creditunion support is on rural areas, which are still

underdeveloped. Financial literacyprogrammes, group lending with a strongfocus on the participation of women, andagricultural lending are key areas forcontinued development. Furthermore, theFoundation is exploring how the use of newmobile technology can enable ruraldevelopment by bringing financial services toremote areas which, up to now, havestruggled due to lack of roads and physicalinfrastructure.

The Gambian Teachers’ Union Cooperative

Credit Union (GTUCCU) received training aspart of the 2016 Foundation coachingprogramme

Teachers in The Gambia get paid roughly€14 per week and usually live away from theirfamilies. The family unit is very important inThe Gambia and teachers may be basedmore than 50 km from their family and live upto 10 km from the school where they teach.Walking to their school could take an hour ormore and they would arrive dusty, tired andhot, impacting on their ability to teach.

ILCUFOUNDATION


Focus On: The Gambia Credit Union Movement

Credit-union membership has given access to savings and loans and essentiallyempowered people. Circle: The Gambian Teachers’ Union Cooperative Credit Unionbranded motor bikes.

Gambian Coaching Programme 2016 Participants

ILCUFOUNDATION

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.

Once again, the International Fund forAgricultural Development (IFAD) haschosen the ILCU Foundation as one ofits partners for a new Eastern andSouthern Africa project. The project willinitially focus on building the nationalApex bodies for the credit-unionmovements in Ethiopia, Tanzania andMalawi.

It aims to improve sustainable accessto a variety of financial products and

services for vulnerable rural populationsthrough financial cooperatives. Therewill be a particular focus on innovation,including technology such as mobilebanking, and knowledge-sharingbetween countries. The Foundation,due to its Ethiopian technical expertise,will initially be responsible for theEthiopian part of the project, but maytake on specific tasks in Tanzania andMalawi.


FOUNDATION AWARDED NEWEAST AFRICA 4-YEAR PROJECT

GTUCCU purchased motor bikes in bulk fromChina at a discounted price and allowed teachers toborrow from them to pay for the bikes and pay backthe loan through salary deductions. In that way,teachers could arrive at school fresh, imparting a goodimpression on their pupils. Furthermore, as teachersin The Gambia work short days, having motor bikesmeant that they had a means to transport goods, somany set up small businesses (such as sellingagricultural produce, timber, etc.) to create extraincome. This transport and extra income increasedthe status of the teacher in the eyes of the pupils and,it could be said, led to better learning outcomes.

The motorbikes are branded by the GTUCCU,therefore the number plates are easily recognisableand are waved straight through at police checkpoints(of which there are many). This is a great promotionaltool for the credit union and for the credit unionmovement as a whole.

The GTUCCU is now doing the same thing withloans for tablets. This has improved and will improvethe knowledge base of the teachers as they canreceive teaching updates and also keep abreast ofnational and international affairs. This is veryimportant as previously, in some schools, pupils hadaccess to tablets or computers at home and tended toknow more about national affairs and news than theirteachers.

This is a gentle reminder to all creditunions who have not yet sent us their2016 voluntary contribution – there isstill time to make a direct financialcontribution to the Foundation.

To the approximately 180 creditunions and their members who alreadycontributed in 2016 to the Foundation’swork in providing safe, strong andsecure credit unions in the developing

world, MANY, MANY THANKS!Please send any contribution by EFT

to ILCU International DevelopmentFoundation Ltd; IBAN: IE95 BOFI 90020111 4154 20; BIC: BOFIIE2D

With your continued support in 2017,we will be able to continue and expandour vital work,

Alan Moore,ILCU General Manager

Meskerm Yeman, amember of her local

credit union in Ethiopia,who borrowed two loans

to help her start up asmall dressmaking

business.

Members’ Savings Box inThe Gambia, promotingsecure savings

Importance of mobile technology in The Gambia.

Gambian coaches, Liam McCullagh, Camlin Credit Union andPat Morrissey, Synergy Credit Union with their Gambiancounterparts in 2015.

REMINDER: STILL TIME TO SEND YOUR2016 VOLUNTARY CONTRIBUTION!

The Savings and Credit CooperativeMovement in Ethiopia (SACCO iswhat credit unions are called there)has grown in the last ten years tobecome one of the largest providersof financial services in the country interms of users. It is now providingfinancial services to every level ofEthiopian society at a lower costthan microfinance institutions, dueto its self-help ethos.

In Ethiopia, more than 85% of thepopulation live in rural areas andaccess to financial services isscarce. The ILCU Foundation/FCAproject aimed to increase theincome and assets of over half amillion poor rural households, inparticular women, throughenhanced access to affordable and

flexible financial services – mainlysavings and loans facilities.

The project, which started inJanuary 2014, came to a conclusionin late 2016, with the finalisation ofthe Roadmap for the Developmentof the Savings and CreditCooperative Movement in Ethiopia.The twinning arrangement with theFCA allowed for the development ofan understanding of the EthiopianSACCO movement and informedthis roadmap. The full set oftechnical resources created over thelife of the project were presented ata closing ceremony on 24thOctober, 2016, in Addis Abba inEthiopia by Isabelle Kidney,technical advisor for the ILCUFoundation.

ILCUFOUNDATION

ILCU Foundation Completes EthiopianCredit Union Project, October 2016

COMMON TERMS USED BY THE ILCU FOUNDATIONTNA Training Needs Assessment conducted in eight regions (consultation involved

92 individual interviews, 16 focus group discussions and 61 survey formscompleted and submitted)

TDP Training Development Plan including strucuture, curriculum & staffingdevelopment (developed with input from training officers from 8 regions)

Status Status of the Rural Credit union (RuSACCO) Sector Report field researchedand compiled (144 directly interviewed (individually or in groups in 8 regions)and 9 workshops (approximately 160 participants)

WS Workshop on Status Report of the RuSACCO Sector Report examiningimplications for roadmap (24 workshop participants)

IT Assessment of Information and Telecommunications Infrastructure for MIS ITSystem Procurement

Reg. Appraisal of the regulatory enviornment in preparation for the development ofa regulatory manual

MR Market research on financial product development in three regions, (99 creditunion members interviewed in 3 regions)

Links Research on linkages between credit unions and other financial serviceproviders (20 industry leaders interviewed)

RM I Development of draft roadmap (RM1) and consultation with RegionalCooperative Promotion Bureaus in 4 regions and with the FCA (involvingconsultation with 22 key personnel)

RM II Development of final roadmap (RM2) for FCA technical committee review

Just over two years ago, the ILCUFoundation was selected by theEthiopian Government’s FederalCooperative Agency (FCA) and theInternational Fund for AgriculturalDevelopment (IFAD – a United Nations’agency) to deliver an exclusive two-year “twinning” project to developcredit unions in Ethiopia.

Being members of a credit union allows these Ethiopian farmers obtainloans to buy seeds and equipment, which, in turn, gives them money tofeed and educate their children.


Get to Know theInstitute of CreditCo-Operative AdministrationThe Institute of Credit Co-operative Administration is aprofessional body for creditunions and credit unionpersonnel. It was founded in1976, and its objectivesinclude:

• To preserve and develop within itsmembers a true sense of thephilosophy of credit union.

• To develop among its members aprofessional standing in credit unionadministration similar to that of otherprofessional bodies.

• To educate its members in all aspectsof credit union administration byfostering and providing facilities foreducation, running seminars andeducation programmes.

Membership is open to all credit unionpersonnel, with a small membership fee,payable each year.

Contact can be made with any of ourBoard members about our upcomingevents.

The Institute is primarily an educationforum for its members. Seminars areheld twice a year, in the spring andautumn, and cover many and variedtopics of interest to all credit unionpersonnel.

As with all of the credit unionseminars run by the Institute, theweekend includes a programme ofsocial events where we welcome andinvite the attendance of spouses orpartners. The youth of the movement isalso invited to to participate andcontribute in all seminars. Thisencourages networking between creditunions, and is very popular withdelegates, as the sharing of informationand experiences is a vital part ofeducation and co-operation. Membersremain in contact between seminars,exchanging points of view etc.,throughout the year.

Some presentations at previousseminars included:• Credit Union Corporate Governance;

Boards & Directors Roles, Duties,Obligations & OperationalResponsibilities.

• Strategic Management; Credit unionin an Environment of Rationalisation& Change.

• Lending Practices; DelinquencyControl, Liquidity, and Asset RiskManagement.

• HR issues and all topics relevant toensure the smooth running andcontrol of credit unions.

Contact can be made with any of our Board members about our events.

Liam McCullagh, (President) [email protected]

Elizabeth Donnelly,(Secretary) [email protected]

Pat Coughlan, (Treasurer) [email protected]

Bernie Morrisey [email protected]

Mary Catney [email protected]

Anne Ford [email protected]

Rosaleen Bradley [email protected]

Joe Devine [email protected]

INSTITUTE OF CREDIT CO-OPERATIVE ADMINISTRATION.I.C.C.A.


HR

Further to feedback received from the HR Network Forum weorganised a number of Regional HR Information Sessions.

The dates and venues for these HR Information Sessions were asfollows:

Feb 27th Cookstown Glenavon House HotelFeb 28th Sligo RadissonMarch 2nd Dublin Clarion Liffey ValleyMarch 6th Limerick Castletroy Park HotelMarch 7th Cork Rochestown Park HotelMarch 9th Kilkenny Newpark Hotel March 10th Athlone Hodson Bay Hotel

The sessions were held during the afternoon as they were aimedat the manager/employee who deals directly with HR issues. Thesessions were from 2.00pm to 5.30pm and the areas covered were

as a result of feedback from the HR Network Forum, in addition torequests which came directly from credit unions.

Topics Included;• Grievance & Disciplinary Procedures• Retirement – with a focus on changes in legislation• Recruitment & Selection• Contracts of Employment – with an emphasis on the renewal of

Fixed Term Contracts• Absence Management – with a focus on Work Related Stress

illness

The sessions concluded with open forums to deal with queries onthe above, or with any other HR related issues. If you have anyfurther queries, concerns or indeed suggestions, please do nothesitate to contact the HR Department.


The HR Department frequently receivesqueries from credit unions in relation toprobationary periods and their respectiveentitlements and responsibilities, pleasefind below some points which must betaken into account when dealing withprobationary period for new employees.

Contracts of Employment can allow forprobationary periods and these may beextended for a period of time. The ILCUContract states that the probationaryperiod is usually six months and can beextended for a further three months (ninemonths in total) following review meetingsand discussions with the employee. Thepurpose of a probationary period is to seehow an employee is getting on in the job;whether they are a right fit for the role, andwhether they are suitably qualified forsame. It also gives the employee anopportunity to ensure the role is asexpressed during the recruitment processand that they are a good fit to the creditunion. If it is felt that things are notworking out with this new employee, thecredit union will then seek to let the

employee go either during or at the end ofthe probationary period.

There is a misconception thatemployees on probationary periods can bedismissed easily once they are still withinthe probationary period. However, anycredit union must still have regard to fairprocedures and the principles of naturaljustice if the only option open to them is toterminate the employment of theemployee on probation.

The contract of employmentThe contract must be worded clearly as tothe following:• The fact that the credit union has a

Probationary Period must be clearlydetailed;

• The ability of the employer to dismiss theemployee at the end of the probationaryperiod must be stated;

• The probationary period should beclearly defined. If the employer feels thatthey may wish to seek to extend theperiod, this should be provided for in thecontract;

• The notice period during theprobationary period should also bespecified.

Probationary Period Policy & ProcedureAs with all other HR issues the ILCU wouldadvise the credit union to have a ProbationPolicy in place which deals with:• The issues of performance, conduct

and suitability for the role and whichnotes how matters will be handledduring the probationary period.

• It should also provide for regular reviewsand feedback to the employee. (Thecredit union should retain all notes ofsuch reviews and feedback).

• The policy should be similar to aDisciplinary Procedure and follow theCode of Practice on Grievance andDisciplinary Procedures and theprinciples of natural justice and fairprocedures.

• This policy ought to be incorporated intothe employment contract and a writtenacknowledgement of having receivedand understood same ought to bereceived from the employee.

HR NETWORKINFORMATION SESSIONOffering you the opportunity to meet other credit union people dealing with HRissues and situations; share best practice, learn from the experts, and gain skillswhich will help you recruit, retain, manage and motivate staff effectively.

PROBATIONARY PERIOD


RECENT CHANGES IN EMPLOYMENT LEGISLATIONREPUBLIC OF IRELANDREPUBLIC OF IRELAND

Minimum Wage Act, Ireland 2017Under SI 516/2016 of the NationalMinimum Wage Act, 2000, the MinimumWage in the Republic of Ireland increasedto €9.25 an hour on 1st January 2017.

The previous minimum wage rate in2016 was €9.15 an hour but there arelower rates for younger and lessexperienced workers.

These are the hourly minimum rates ofpay that apply in Ireland from January 1st2017• Experienced adult worker – €9.25 per

hour• Over 19 and less than 2 years since first

job – €8.33 per hour• Over 18 and less than 1 years since

began first job – €7.40 per hour• Aged under 18 – €6.48 per hour

(An experienced adult worker – for thepurposes of the National Minimum WageAct – is an employee who has anemployment of any kind in any 2 years overthe age of 18).

For example: A 19 year old gets his firstjob on June 1st 2017 – he is entitled to€7.40 an hour. He won’t be entitled to€8.33 an hour until June 1st 2018 – thefirst anniversary of his first job. He won’t beentitled to €9.25 an hour until June 1st2019 – the second anniversary of his firstjob. It doesn’t matter how long he workedin each job or if there were gaps inemployment.

Paternity Leave and Benefit Act, 2016Paternity Leave – As of 1st September2016 the Paternity and Benefits Bill willallow a period of two weeks paid paternityleave within the first 26 weeks following thebirth of a child. The Department of SocialProtection will provide paid paternity benefitof €230 per week for the two weeks ofpaternity leave. Credit unions will also havethe option of providing a further top-up tothe father's regular salary - if they choose todo so.

NORTHERN IRELAND

The National Minimum Wage (Amendment)(No. 2) Regulations, 2016These regulations amend the NationalMinimum Wage Regulations 2015 and

came into force on 1st October 2016. Thechanges are as follows:- Workers who are aged 21 years or over

(but not yet aged 25 years) – from £6.70to £6.95 per hour.

- Workers who are aged 18 years or over(but not yet aged 21 years) – from £5.30to £5.55 per hour.

- Workers who are under the age of 18years – from £3.87 to £4.00 per hour

If you have an issue relating to bullying and/or harassment, or indeed any HR issueplease do not hesitate to contact the HR Department, the contact details are:

Margaret Davern Maura BehanHR Adviser HR Executive

Direct line: +353 1 6146974 +353 1 6146941Email: [email protected] [email protected]: +353 87 1468939


Carlow District Credit Union Sponsors January Charity RunOn January 29th, Carlow District Credit Union wasonce again the main sponsor of the third annualCharlie Curran Memorial Run. The annual charityevent took place in Carlow town in aid of The IrishHeart Foundation and Heart Children Ireland. Theevent is chip timed and entrants could choosebetween a 5k, 10k route or the Kids Dash – anevent especially for younger runners. New to theevent this year was a team category where peoplecould enter in teams of four for the 5k distance.

Over the last two years, the event hasattracted over 800 participants and raised€8,500 for charities.

The run was organised by CharlieCurran in memory of his dad CharlieCurran Snr who passed away at the age of52 having suffered a heart attack.Charlie’s chosen charities, Heart ChildrenIreland and the Irish Heart Foundation, willresonate with many who have beenaffected by heart issues either directly orthrough family and friends.

"The credit union supports localbusiness and families and to have themsupporting the event is a major boost” saidCharlie.

Carlow District Credit Union alsoestablished a Staff Charity Fund in 2008

which has donated over €10,000 tochosen charities including RonaldMcDonald House, Crumlin Hospital, SimonCommunity, Focus Ireland, Irish GuideDogs, Laura Lynn House and Eist CancerSupport Group Carlow.

Strategy for Credit Unions Book Published

Senior Businessand Loan Managerat St Jarlath’sCredit Union, AlanShaw, haspublished a booktitled Strategy forCredit Unions, AGuide forManagement andBoards. The uniquebook was written for thebenefit of Board directors andall credit union personnel.

Speaking about his book,Mr Shaw said “I know thatevery credit union isgenuinely working onsecuring the best future for itsmembers. And I really wantto see that each credit unionhas access to all the tools andguidance for developing thestrategy most appropriate forgrowth and sustainability.”

“Having worked in financeabroad, built and operatedmy own retail business inIreland, and now part of ahugely successful creditunion in the west, I feltobliged to share what I know

from experiencecoupled with what Ilearnedacademically.”

Strategy forCredit Unions is forcredit unions of allsizes looking tobuild and sustaintheir businessmodel for the

future. It is also about theimportance of both short andlong term planning,succession planning andguidance for the successfulintegration of strategic planswith the involvement of allteam members.

This book will offerguidance for a betterunderstanding of the widerimplications of strategicthinking. It addresses not onlythe ‘why’ but also provides astructure for the ‘how’.

Strategy for Credit Unionsby Alan Shaw is available tobuy now on Amazon. Theproceeds of this book arebeing donated to the IrishCancer Society.

Glenamaddy Credit Union Wins PrestigiousAwards for Credit Union Excellence

Glenamaddy Credit Union hasreceived major awards under theInternational Credit UnionLeadership Development andEducation Foundation(ICULDEF.org).

The awards were achieved in thecategory which generally comprisesBritain and Ireland, and weregranted as a result of a thoroughassessment and examination of allthe activities of Glenamaddy CreditUnion, which serves over 4,000people in Glenamaddy, Glinsk andWilliamstown in East Galway.

Glenamaddy Credit Union wonthe Filene award for 'Excellence inUse of Media' and was alsoawarded second place in the“Achieving Business Growth fromOwn Resources”, whichacknowledged the over 30%prudent growth in its loan book.

The credit union wasfurthermore highly commendedand awarded third place in the“Juvenile Depository Scheme”, forits efforts to encourage and attractjuveniles to become savers.

CEO John Murphy said that theawards were an outstandingachievement; “I am delighted thatsuch an esteemed Internationalorganisation has identified theareas of performance excellence inGlenamaddy Credit Union and has

honoured us with these prestigiousawards.”

“It is a welcomeacknowledgement for the hardwork and endeavour by our staff,board of directors and ourvolunteers together with thewonderful trust and support we getfrom our loyal members.”

Representatives from the creditunion attended the GalaPresentation in London where theymet fellow award winners from allover the world.

The ICULDEF was establishedto assess and reward areas ofperformance excellence in theentire worldwide credit unionmovement.

The launch of the Charlie Curran memorial run in Carlow Credit Union

Charleville Credit Union is mourning the recent passing of Joe Lambert, a dearfriend and one of the founding members of the credit union. Joe, who was anoutstanding community activist, was instrumental in establishing the Charlevillebranch after hearing a broadcast on Radio Eireann of an interview with NoraHerlihy. After contacting Ms Herlihy and setting up a feasibility study, Joe co-founded the credit union in 1963. Charleville was one of the first credit unions toopen in Co. Cork.

At the time, the credit union was going to be called St Joseph’s, asthe credit union was founded on March 1st, the feast day of StJoseph. However another founding member, Fr Kenneally, told Joethat they could not go ahead with this name; “You see I am JoeKennelly and you are Joe Lambert. It would be Joe’s or the Two Joe’sCredit Union. Let's just call it Charleville Credit Union."

A minute’s silence was recently held for Joe at the Charleville CreditUnion Board meeting where this, and other anecdotes wereremembered. His great legacy continues to live on in Charleville andsincere sympathy is extended to his family, many friends and relatives.

Enniscorthy Credit Union sponsorsyouth mental health booklet

Enniscorthy Credit Unionwas recently delighted tolend support to a fantasticyouth mental healthinitiative by students fromColáiste Bríde. Thesecond level studentsspent more than a yearresearching and workingon a booklet titled I AmWorth It. The initiativearose after a mentalhealth booklet wasdistributed in their schoolwhich, while being highlyinformative, had beencreated for a differentcounty and did not list anycontact details for localservices in their owncounty of Wexford.The students took it uponthemselves to create abooklet tailoredspecifically for teens andyoung people in Wexford.The title ‘I am Worth It’

stands for ‘Wexford OffersReliable Teenage Help’.Enniscorthy Credit Unionwas more than happy tosupport this great work bycovering the costs ofprinting for the booklet,which amounted to€3,125. The booklet isbeing distributed to morethan 13,000 students inevery post-primary schoolin Wexford. Minister of State forMental Health and OlderPeople, Helen McEnteeTD, joined the students forthe official launch of theirbooklet which has beengreeted with huge praisefrom across the county.Enniscorthy Credit Union’sEmma Redmond was inattendance at the event topresent the Coláiste Brídestudent council with thesponsorship cheque.

Bantry Credit Union supportsself-help groups at home and abroad

The first of the donations, whichwere made as part of the creditunion’s 50th anniversarycelebrations, was given to theChurch Renovation Committee ofthe parish of Muintir Bhaire whichis contributing to renovation workon three churches in Durus,Kilcrohane and Rossnacaheragh.

The second donation was madeto the St Francis of Assisi Schoolfor Abled and Disabled children in

Tanzania, Africa. The school hasover 260 students, includingmany with albinism, blindnessand low vision. The school puts anemphasis on teaching all of thechildren together.

Bantry Credit Union made adonation of €3,000 to both ofthese charities to aid themfinancially and also to supporttheir self-help and co-operativespirit.

Charleville Credit Union pays tribute to the late Joe Lambert

Joe Lambert with Charleville Credit Union Chairperson Pat Savageat the credit union’s 50th anniversary celebrations.


Bantry Credit Union has made donations of €3,000 tocommunity groups and initiatives in line with the creditunion co-operative and self-help philosophy.

Ballincollig Credit Union lends support to First Responder Scheme A life-saving first responder scheme is beingrolled out in one of the biggest towns in Cork thisyear with the support of Ballincollig Credit Union.The voluntary group, the Ballincollig CommunityFirst Responder group, will be an asset to theNational Ambulance Service, with the help of thedonation of an automated external defibrillator(AED) by Ballincollig Credit Union.

This will aid the group in responding tocardiac emergencies in the town and itssurrounding area. Commenting on theinitiative, IT and Marketing officer withBallincollig Credit Union, Mark Horgan,said the credit union was very happy tosupport such a vitally importantcommunity initiative.

“The marketing committee here atBallincollig Credit Union meet regularlyand part of our remit is to allocatesponsorship to various clubs, charities andorganisations. In 2016, we received asponsorship request for the newly formed

Ballincollig First Responders. The requestwas for funds to aid the group in achievingtheir goals and aspirations for thecommunity. Following a review of theapplication, the marketing committeeagreed that this was a very worthwhileproject and a great initiative for Ballincolligand surrounding areas. Bearing in mind

that Ballincollig Credit Union is acommunity based co-operative, we feltthat sponsorship of an AED would be ofhuge benefit to the community.Unfortunately AEDs are expensive, but wefelt that if even one life was saved by theuse of this AED, then it will have paid foritself.”


Tipperary Credit Unioncelebrates Members’ Day

Tipperary Credit Union’sMembers’ Day is thehighlight of the eventscalendar and it was nodifferent this year. Thefestive spirit was high asmembers turned out intheir droves to celebratethe day and were treatedto Christmas carols by theSt Joseph’s NationalPrimary School choir and avisit from Santa.

Tipp Mid-West radiobrought their usual festivecheer and charm as the

broadcast live from thecredit union, while fourmembers won brand newcars on the day. Therewere also winners ofhampers, vouchers andmuch more and a deliciousspread for everyone whoattended.

The Liam McCarthy Cupand the Irish Press CupMinor were on display inall their glory too. TipperaryCredit Union will bekeeping its fingers crossedfor next year!

Chapter 15 honours delegateswith long-service awards

Chapter 15 recently held theirnow annual presentationceremony for retiring delegateswho have served Chapter loyally,and made a significantcontribution to its success inrecent times. The event was heldin the Athlone Springs Hotel inDecember.

The awards ceremony wasfacilitated by Gerry Thompson,Chapter Liaison Officer, and theawards were presented by theChair of Chapter 15, Paul D’Arcyfrom Birr Credit Union. Chapter15 would like to congratulate all

recipients for their long and loyalservice and extend sincere thanksto their partners who accompaniedthem on the night.

Some of the recipients arepictured in the accompanyingimage and include, in the frontrow, Mary Fox, Kinnegad &District, Willie Ward, Mullingarand Marcella McDonald, Kinnegad& District. They are joined bycurrent delegate SeamusMcLoughlin, Mullingar, PaulD’Arcy, Chairman Chapter 15 andMargaret Egan, Secretary Chapter15.


New Ross Credit Union recentlypresented a cheque for €18,610to The Community Hospital NewRoss, to go towards their newbuild and refurbishment fund.The money was paid out of theexpenses of New Ross CreditUnion, as voted by members atAGM and €1 per member wasput aside.

The presentation wasmade to Frances Ryan,Chairperson of New RossCommunity Hospital, whothanked the credit unionBoard and members fortheir magnificent gesture toNew Ross CommunityHospital.

Ms Ryan commentedthat New Ross Credit Unionhad been a great supporterand friend of the hospitalthroughout the years. Shesaid “It is this trust andsupport from thecommunity that gives allinvolved in delivering theservices provided by thehospital theencouragement tocontinue, develop andimprove.”

Ms Ryan also wishedNew Ross Credit Union andits members a very brightfuture and looked forwardto their continuing support.

Chapter 5 welcomes MinisterHeather Humphreys

Chapter 5 was honoured to welcomeMinister for Arts, Heritage, Regional,Rural and Gaeltacht Affairs, HeatherHumphreys TD, to address delegatesat a recent monthly Chaptermeeting.

The meeting was held in TheWestenra Arms Hotel,Monaghan and was hosted byMonaghan Credit Union. Therewas a strong attendance fromcredit unions in Chapter 5 andthe Irish League of CreditUnions was represented byILCU Vice President CharlesMurphy, CEO Ed Farrell andILCU Liaison Officer Pat Fay.

Minister Humphreysaddressed the meeting and awide ranging discussionensued. Credit union delegatesand ILCU representativesraised topics such as creditunions lending to SMEs, andthe provision of funding forsocial housing by credit unions.On lending for social housing,the ILCU’s proposal is inresponse to government policy,set out in Social HousingStrategy 2020. In this regardthe ILCU is responding to

community need andgovernment policy, and theMinister was reminded that theILCU is looking at governmentto deliver on commitmentsmade to credit unions beforethe election. Particularly themovement is looking fordelivery on commitments madein the Programme forPartnership.

A number of Chapters havenow invited Ministers in theirarea to meetings and it isproving to be a very successfuland worthwhile initiative.

St Canice’s Credit Union SupportsJordan's Communication

New Ross Credit Union donates over €18,000 to local hospital

St Canice’s Credit Union weredelighted to recently support thepurchase of a communicationdevice for a 15 year old boy whohas been non-verbal since birth.Jordan McHugh, who is fromKilkenny, has been unable tocommunicate verbally with hisfamily and those around him aresult of a range of complexmedical conditions from birth.

Jordan recently trialled a newcommunication aid and for thefirst time was able to communicatewith his family, his teachers and hisclassmates. The device itself costsover €5,000 (device, software,installation) so Jordan’s father, Rob,set up a Go Fund Me onlinecampaign to raise the moneyneeded, to not only purchase the

device but keep it updated and tobecome trained in the best ways touse it.

St Canice’s Credit Union wasdelighted to support Jordan's GoFund Me campaign on behalf oftheir members. The campaign wasa great success, as the communityand businesses in Kilkenny lenttheir support also. As a resultJordan’s parents plan to use extramoney raised to buy stands neededto support the communication aidand invest in some extra trainingso Jordan can reach his fullpotential.

If you would like to supportJordan you can do so on the GoFund Me webpagehttps://www.gofundme.com/jordans-communication-device-etc

LegislativeUpdate

The Assisted Decision-Making(Capacity) Act 2015 (hereinafterreferred to as ‘the Act’) was signedinto law on the 30th December 2015.It repeals the Lunacy Regulation(Ireland) Act 1871 and also reformsthe law on Enduring Powers ofAttorney.

The Act contains a number ofprovisions that aim to empowerpersons who may require assistancemaking decisions at certain times. Itrepresents a move away from whatmay be described as a paternalisticapproach, whereby third partiesdetermine what is in the best interestsof an individual. The Act providesthat, where possible, the “will andpreferences” of the individual shouldbe taken into consideration whenmaking decisions that will impact onthem.

It is expressly stated within the Actthat a person’s capacity is to be“constructed functionally”, this meansthat a person’s capacity is assessedbased on their understanding of aparticular decision at a particulartime. According to the Act, the factthat a person lacks capacity inrespect of a decision at a particulartime does not prevent him or her frombeing regarded as having capacity tomake decisions on the same matter atanother time. Assessment of capacityis time specific and issue specific.The onus is on the assessor’s todetermine capacity.

There is a statutory presumption ofcapacity unless there is clearevidence to the contrary.

When a person has capacity under

the Act they may appoint:

• An attorney under an EnduringPower of Attorney

• A Designated Healthcarerepresentative

• A Decision making assistant (toassist with decisions)

• A Co-Decision –Maker (to jointlymake decisions)

The Act establishes a new body, theDecision Support Service (DSS), theDirector of the DSS will reviewapplications to ensure that thestatutory criteria have been met andthat the proposed Attorney /decisionmaker is a suitable person to carry outthe requisite functions.

The Act will bring an end to the wardof court system and there will be anautomatic review of those presentlyunder wardship. The Act also reformsthe Enduring Power of Attorney byintroducing changes to prevent abuseby the attorney. The most significantchange for attorneys under the Act isthat once the Enduring Power ofattorney comes into effect there willbe reporting obligations to the Directorof the DSS with which attorneys mustcomply. Of note to credit unions willbe an increase in requests forinformation on accounts, an attorneyunder the new Act will be obliged tosubmit a schedule of thedonor/members assets and projectedstatement of income and expenditurewithin three months of registration.

Credit unions should be aware thatuntil the commencement of part 7 ofthe Act, Enduring Powers of Attorneywill continue to be created under theprovisions of the Powers of Attorney

Act 1996 and the 1996 Act willcontinue to apply to them, even if theycome into effect i.e. are registeredafter the commencement of the Act.In effect this means that the EnduringPowers of Attorney seen by creditunions to date will be acceptable untilpart 7 of the Act has commenced.

Credit unions when dealing withAttorneys ought to ensure that theEnduring Power of Attorney has beencorrectly completed, duly signed andfiled with the High Court. When thenew Act is fully commenced the filingwill be in the Circuit Court.

One of the most frequent queries tothe Irish League of Credit Unions(ILCU) Legal Department is on how toassist or give support to vulnerablemembers. Assessing vulnerability canbe a difficult task, if in doubt,attempting to circumvent thetransaction might be the best solution.Another solution might be toencourage members to think aheadand plan ahead and put in place anEnduring Power of Attorney, orappoint a Decision Making assistantor Co-Decision maker.

The Legal Department is available toanswer any queries you may have onthe above, the Assisted Decision-Making (Capacity) Act 2015, and togenerally answer any queries that mayarise pertaining to vulnerablemembers. The Legal Department hasprepared a document, Guidelines onSupporting Vulnerable Members,which can be accessed on themembers’ area of www.creditunion.ie


Assisted Decision-Making (Capacity) Act 2015

LegislativeUpdate

On the 24th January 2016, the UnitedKingdom (UK) Government lost its appealat the UK Supreme Court in a caserelating to whether it had the unilateralpower to proceed with triggering Article50. In a landmark constitutional lawruling, the Supreme Court held (by amajority of 8 to 3) that the UKGovernment could not trigger Article 50 ofthe Treaty on the European Union withoutan Act of Parliament authorising it to doso. The Supreme Court unanimously ruledthat devolved administrations includingNorthern Ireland did not need to beconsulted and did not have a right to vetoArticle 50. A draft bill was introduced forits first and second reading on 1stFebruary 2017 and at the time of writingwas due to go before committee stage.

On 2nd February 2017, the UKGovernment published a white paper (agovernment report giving information orproposals on an issue) titled “The UnitedKingdom’s Exit from, and NewPartnership with, the European Union.”One of the areas set out in the documentconcerns maintenance of the CommonTravel Area between Ireland and the UK.It remains to be seen how the UKgovernment’s determination to leave theEU and the customs union will avoidanything other than likely administrativeburdens and potential hard bordersbetween the North and South in someformat. Much more detail will be requiredto ensure that the UK Government’s aim“to find a practical solution that keeps theborder as seamless and frictionless aspossible” is realised.

In October 2016, the UK Governmentannounced that it will introduce a ‘GreatRepeal Bill’ before the UK Parliament andthis is expected to feature in the Queen’sspeech in May 2017. The bill will seek torepeal the European Communities Act1972. The Bill’s second purpose will be to

preserve and convert into domestic lawthe whole body of EU law applying to theUK at the time it leaves the EU (to theextent it has not already beenimplemented domestically) and avoid thepotential of a legislative vacuum once EUlaw ceases to apply.

The huge task ahead of the UKGovernment was set out in November2016 when the House of CommonsLibrary stated that it “estimated that13.2% of UK primary and secondarylegislation enacted between 1993 and2004 was EU related. The review of allEU-related legislation, as well as thatwhich will be transposed by the GreatRepeal Bill, makes this potentially one ofthe largest legislative projects everundertaken in the UK.”

On 16th January 2017, the House ofCommons Library reinforced themammoth task ahead stating that“According to data on the EU’s Eur-Lexdatabase, there are at present around19,000 EU legislative acts in force. Theseare mainly directives, regulations,decisions and external agreements, butthey include a range of otherinstruments.”

Northern Ireland Assembly and ElectionsNew elections to the Northern IrelandAssembly will now take place on the 2ndMarch. There will be a reduction in thenumber of MLAs in any future NIAssembly from 108 to 90.

Raising of deposit protection limit to£85,000 from 30 January 2017On Monday 16th January 2017, thePrudential Regulation Authority (PRA)published a Policy Statement andupdated Supervisory Statement withaccompanying rules which resets thedeposit protection limit at £85,000 fromMonday 30th January 2017. There is a

five month transitional to implement thenecessary systems and disclosurerequirements. The PRA requires creditunions to make all changes required toimplement the new deposit limit as soonas practicable after the 30th January2017 and in any event on or before the30th June 2017.

Changes to personal insolvency laws from1st December 2016Amendments came into force from the 1stDecember 2016 to insolvency laws inNorthern Ireland to bring the levels intoparity with the insolvency law in Englandand Wales.

BankruptcyThe Insolvency (Northern Ireland) Order1989 (Amendment) Order (NorthernIreland) 2016 increases the level at whicha creditor can petition for an individual tobe made bankrupt from £750 to £5,000.

Debt Relief OrdersThe Insolvency (Monetary Limits)(Amendment) Order (Northern Ireland)2016 raises the limits on the level of debt(from £15,000 to £20,000) and the totalassets which an individual can own (from£300 to £1,000) to be eligible for a DebtRelief Order.

Brexit – Article 50 ruling, parliamentary processand the Great Repeal Bill



The DomesticEconomy

The Central Bank estimates thatIrish GDP grew by 4.5% in 2016but is predicting that growth willfall to 3.3% in 2017. Thisrepresents a downward revision of0.3% relative to their previousforecasts and is mainly reflecting aweaker outlook for net exports.Domestic demand is set to remainthe main growth driver in the shortto medium term and following anestimated increase of 3.9% in2016, the Central Bank expectsdomestic demand to grow by 3.3%in 2017.

Consumer spending, although growingstrongly in 2016, has been somewhatweaker than might have been expected,given the strength of indicators such asretail sales, consumer sentiment andlabour market developments. The latestCentral Bank forecasts contain a smalldownward revision to the estimate forconsumer spending to 3.4% in 2016. Thisyear, growth in consumer spending, whileslowing to about 2.5%, has been revisedupwards compared to the previousforecast. This reflects, in part, the morerobust outlook for employment, andearnings. Consumption is forecast toincrease by 2% in 2018.

Consumer prices, as measured by theConsumer Price Index (CPI) wereunchanged on average last year.Exchange rate appreciation replacedenergy as the main source of deflation inthe second half of the year as the sharpappreciation of the euro/sterling exchangerate quickly passed through to consumerprices. A modest rebound in inflation toabout 0.8% in CPI terms is forecast by theCentral Bank for 2017, reflecting both

higher energy prices and a partial reversalof the previous exchange rateappreciation. A further modest increasein CPI inflation to about 1.1% is projectedby the Central Bank for 2018.

This year, and in 2018, external risksare mainly related to Brexit. The mainchannels through which the effects ofBrexit will be felt include trade via weakerforeign demand, foreign direct investmentand the labour market. Since last July,the Central Banks forecasts haveincorporated an adjustment for thesenegative impacts and projected GDPgrowth would be about 0.6% and 0.2%lower in 2017 and 2018, respectively,relative to a no-Brexit baseline.Nevertheless, the terms of the eventualexit agreement and, in the interim, thepotential for greater pessimism relating toit, constitute a significant downside risk tothe Irish economy.

DemandGrowth in the economy is expected to bemainly driven by domestic sources in theshort to medium term. The Central Bankis projecting domestic demand to grow by3.3% in 2017 and by 2.9% in 2018. Thisbuilds on a likely robust outturn for 2016(estimated growth in the region of 3.9%).The strength in underlying demand isexpected to result in further sustainedgains in employment across the economygiven the strong linkages between the twoseries.

ConsumptionPersonal consumption expenditure isforecast by the Central Bank to remain akey driver of growth, with growth of 2.55%in 2017 and 2.0% in 2018 respectively.This follows estimated growth of 3.4% in2016. This outlook would see per-capitaconsumption levels in 2018 closing to

within 2 percentage points of their pre-crisis (2007) peak, having declined by12% between 2007 and 2013. Theforecast for consumption is supportedby a favourable outlook for incomesand employment. In 2016, thestrength in consumer spending wasevident in a number of indicators.Retail sales grew by 6.3% in the first 11months of last year, helped by robustcar sales. Excluding the latter, retailsales were up by 4.7% over the sameperiod, although retail sales growthslowed appreciably in the third quarter,the latest data points to a rebound inthe final quarter of the year despite thefact that sentiment indicators havesoftened somewhat. Consumption datain the Quarterly National Accounts(QNA) in 2016 were volatile with aweak second quarter more than offsetby strong first and third quarters.

The Labour MarketThe performance of the Irish labourmarket was exceptionally strong in2016 with estimated employmentgrowth of 2.8% – the strongest rate ofincrease since 2007. This translatesinto an additional 55,000 persons at

work. Job gains were broad based withparticularly strong gains in industry(including construction) and mostservices sectors. The unemploymentrate continued on its steady decline –falling to 7.2% in December andaveraging 8% for the year (down from9.4% in 2015). Annual employmentgrowth is expected to moderate to2.2% in 2017 and 1.6% in 2018. Still,this should see an additional 77,000persons at work over the two years2017 and 2018 and, at the end of theperiod, numbers in employment are setto reach 2.1 million. The Central Bankexpects the unemployment rate toaverage 6.9% in 2017 and 6.1% in2018.

PayWages are projected by the CentralBank to increase at an annual rate ofaround 2.3% in each of the years 2016to 2018. Two forces are at work here.While there are clear signs of risingwage demands in the context of strongemployment growth, this could benegated somewhat by the low inflationenvironment and significant externalrisks.

Residential PropertyResidential property prices increasedby 8.6% in November 2016 on anannual basis. Property price growthstrengthened in the second half of2016. From July to November, priceshave risen by 7.3% on average incomparison to 5.4% for the first sixmonths of the year. While this pickupis most pronounced for pricesexcluding Dublin, which areincreasing at rates above 10%,inflation in Dublin has also gatheredpace. With existing supplyconstraints and incentives that willincrease demand, property priceinflation is unlikely to moderatesignificantly in the short term.

On the supply side, 11,797 houseswere completed in first ten months of2016. This represents a 17.4%increase on the same period in 2015.Through the first three quarters of2016, planning permissions weregranted for 12,046 units, a 33%increase on the same period in 2015.A large part of this increase is centredon the Dublin region although otherareas, such as the South-West, havealso seen significant rises.

LABOUR MARKETThe performance of the Irishlabour market wasexceptionally strong in 2016with estimated employmentgrowth of 2.8%


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