SUCCESS STORY OF THE POLISH CREDIT UNION MOVEMENT How to reach 1 million Members in 12 years Grzegorz Bierecki, President National Association of Cooperative Savings and Credit Unions

SUCCESS STORY OF THE POLISH CREDIT UNION MOVEMENT 7 Thoughts fundamental to Development of Credit Unions in Poland 1. Credit unions provide access to financial services to common people enabling them to meet their goals and improve their economic and social conditions 2. Credit unions are an integral part of Poland’s formal financial sector 3. Building financial systems for the less-affluent means creation of sound domestic financial intermediaries that can mobilize domestic savings. Capital from foreign donors and social investors will diminish as local financial institutions and markets mature

SUCCESS STORY OF THE POLISH CREDIT UNION MOVEMENT 7 Thoughts fundamental to Development of Credit Unions in Poland 4. People need a diversified range of financial services matching their different needs 5. Credit unions are market-oriented institutions. While their rates are among the lowest on the market, credit union operations are subject to market forces 6. Credit unions are sustainable financial institutions relying only on their members 7. The government’s role in development of credit unions is to create conditions for them to operate. Credit unions should be able to decide on what ? and how ?

POLISH CREDIT UNION SYSTEM Key components : Credit unions National Association of Cooperative Savings and Credit Unions Credit Union Mutual Insurance Society Credit Union Life Insurance Society „Asekuracja” Insurance Brokerage Co. Credit Union Investment Funds Society Credit Union Financial Society „H and S” Software Co. Foundation for Polish Credit Unions Higher School of Administration and Finance Credit Union Publishing House Society for Promotion of Financial Education Credit Union Arbitration

POLISH CREDIT UNION SYSTEM

Typical products and services offered by Polish credit unions: personal accounts term deposits savings accounts indyvidual share accounts loans and credits business services: accounts, credits and money transfers credit and debit cards payment settlements insurance services pension funds products

POLISH CREDIT UNION SYSTEM National Association of Cooperative Savings and Credit Unions Key functions: SUPERVISORY AND REGULATORY INSTITUTION FOR CREDIT UNIONS CREDIT UNION TRADE ASSOCIATION CREDIT UNION CENTRAL CREDIT UNION AUDIT UNION

DEPOSIT PROTECTION PROGRAM Credit union level SECURITY AND SOLVENCY CAPITAL ADEQUACY QUALITY OF MANAGEMENT POLISH CREDIT UNION SYSTEM

DEPOSIT PROTECTION PROGRAM System level MONITORING AND CONTROL PRUDENCIAL STANDARDS STANDARISATION STABILIZATION FUND DEPOSIT INSURANCE RESERVES

POLISH CREDIT UNION SYSTEM Credit Union Mutual Insurance Society provision of deposit insurance coverage provision of property and casualty insurance products to credit unions provision of a variety of insurance products to credit union members

POLISH CREDIT UNION SYSTEM Credit Union Life Insurance Society provision of life insurance products to credit union members: - credit life insurance - life savings insurance - funeral insurance - individual life insurance - individual life insurance with investment fund

POLISH CREDIT UNION SYSTEM „Asekuracja” Insurance Brokerage Co. provision of insurance brokerage services provision of credit services to credit union members via credit agents purchase of overdue liabilities serving credit collection

POLISH CREDIT UNION SYSTEM Credit Union Investment Funds Society investing of members’ savings into financial instruments available on the market through funds creation and management of funds

POLISH CREDIT UNION SYSTEM Credit Union Financial Society provision of long-term housing loans to credit union members provision of financing through leasing to credit union members

POLISH CREDIT UNION SYSTEM „H and S” Software Co. exclusive provider of software program to all credit unions, since 1992 development of software program corresponding with ongoing development of the credit unions, their operations and range of products and services

POLISH CREDIT UNION SYSTEM Foundation for Polish Credit Unions support of development of the credit union movement in Poland promotion of credit unions and financial cooperative principles training and education serving credit union needs support of credit union development in the region through direct technical and financial assistance (Ukraine, Lithuania, Latvia, Romania, Bulgaria and other countries)

POLISH CREDIT UNION SYSTEM Higher School of Administration and Finance provision of graduate and post-graduate courses in business, administration and finance to credit union executives and staff provision of specialist training tailored to specific needs of credit unions

POLISH CREDIT UNION SYSTEM Credit Union Publishing House Publications promoting credit unions and their philosophy „Money and Bond” Scientific Quaterly and other publications promoting economic education, understanding of sound business and financial management practices

POLISH CREDIT UNION SYSTEM Society for Promotion of Financial Education Promotion of financial education in the society Provision of legal and financial assistance including debt councelling to individuals through network of legal and financial advisory offices

POLISH CREDIT UNION SYSTEM Credit Union Arbitration settling extra-judicial disputes between credit union and its members regarding credit union services

SUCCESS STORY OF THE POLISH CREDIT UNION MOVEMENT How to reach 1 million Members in 12 years work hard be persistent pray