Credit union amalgamation meetings to take place
A Special General Meeting of two Credit Union groups in the east of the county, and one located in neighbouring Meath are set to take place over the coming days to discuss the potential for the three local financial institutions to amalgamate.
Starting with a meeting of the membership of Kingscourt Credit Union tonight, Monday, July 6, in the Matt Talbot Hall, at 8pm, the move comes following a strategic review of credit unions in the region.
It is understood the three groupings have been in discussion with regard to the proposal, which has been acted out elsewhere in the country, and that local talks have progressed positively and constructively, with the three respective local boards now prepared to present to its members the proposal for a merger.
The move is being assisted by the Credit Union Restructuring Board (ReBo), and the proposal has been flagged with the Central Bank in line with requirements of the Credit Union legislation.
Branch manager and CEO at Bailieborough Credit Union, Seamus Newcombe, who will meet with members tomorrow night, Tuesday, July 7, at the Bailie Hotel at 8pm told The Anglo-Celt: “It's a decision at the end of the day that is up the members of the respective Credit Unions. A lot of Credit Unions have seen the advantages of merging, if only in terms of economies of scale and making operations more efficient.”
If supported, the amalgamation of the three Credit Unions would form one of the largest combined in the region.
“There are over 40 credit unions in the country who have done this to date, and I know there are over 100 others currently considering the same path of action. So it is topical.”
He furthermore gave assurances that as far as structure is concerned, very little will change at local level, with management, opening hours and staffing all remaining the same.
Mr Newcombe did, however, state that the decision for amalgamate is one to be solely decided upon by the respective memberships.
“We are unique in that regards in that our customers are our shareholders. We are democratically run and this is a decision for them to make,” he stressed.
“Mergers do mean that as a larger credit union, we can offer our customers more services. If you look at Bailieborough and Kingscourt, there have been bank closures over the past number of years and this has led to more people relying on credit unions. So by becoming bigger, we in turn will have the capacity to better service those demands, with a wider suite of products such as faster decisions on loans, larger loans, and also current accounts and other financial products. That's our rationale for doing it,” he said.