Payments CUSO Project Page 1 Payments CUSO Presentation February 26 th, 2011 Barry O’Mahony Programme Manager, CUSO, Best Practice Meeting for Youth Development

Payments CUSO Project Page 2 Contents Background What are members saying? CUSO Project The Payments Landscape

Payments CUSO Project Page 3 Background The Economic Environment Regulatory Change Opportunity for the Credit Union Movement The Vision –ILCUnet –ILCUbis

Payments CUSO Project Page 4 SAFE STRONG SECURE ILCUbis - Credit Union Business Intelligence Service Payments CUSO Your IT Supplier Service New Services Credit Union A Ltd Credit Union B Ltd Sub Office Credit Union B Ltd Irish League of Credit Unions ILCUnet ILCUnet – Your Private Credit Union Network

Payments CUSO Project Page 5 ILCUbis – CU Business Intelligence Service  Tool used to help CUs make Informed Decisions  Lets CUs graphically analyse their performance  CUs can compare their performance against other CUs  Use forecasting tool to see how CU will perform if projections are accurate Business Intelligence

Payments CUSO Project Page 6 What are the members saying? Investing in our Future Research – August 2009 highlighted demand for new services “…..members are open to new product and service innovations that meet real needs and enhance already high levels of customer satisfaction” “…in order for credit unions to fully meet the financial needs of members… they need to be in a position to deliver products and services which have become integral to how members manage their financial needs.”

Payments CUSO Project Page 7 CUSO - The Vision The strategic vision for a Payments Credit Union Services Organisation (‘CUSO’) is to provide ALL Credit Unions with the option of access to electronic payments products and services, specifically;  Direct debits;  Credit transfers and standing orders; and  Potentially, debit cards, in a cost efficient manner.

Payments CUSO Project Page 8 Resolution No. 34 of League AGM Payments CUSO Project –Up to €1.55 million contribution from the Irish League of Credit Unions –At least €1.55 million contributed by credit unions in units of €10,000 (or Sterling equivalent) –minimum of 155 credit unions required for funding CUSO – The Approval

Payments CUSO Project Page 9 A Regulated Entity Enabler for the future A Platform for member services A mechanism to give control to Credit Unions CUSO The Project

Payments CUSO Project Page 10 The Structure Be licensed as a Payments Institution; Passport into NI once established Compliance with SEPA and PSD: Single Euro Payments Area Payment Services Directive A unique development

Payments CUSO Project Page 11 Why CUSO? Regulatory support Control over our own destiny Need to provide a platform for alternatives to cash and cheques Economies of scale

Payments CUSO Project Page 12 The Payments Landscape Goodbye cheques? Cash…..start packing! Cards Internet Mobile payments Hello virtual money

Payments CUSO Project Page 13 Cash……start packing! Most expensive mechanism for payments Cost per Irish household: €1,590pa –€2,370,000,000 cost to the nation every year! Alternatives increasingly available

Payments CUSO Project Page 14 The Alternatives Cards: Credit, Debit, Pre-Paid –Chip & PIN –NFC (Near Field Communication) Internet Mobile –NFC –Smart Apps Virtual -Facebook Credits -PayPal

Payments CUSO Project Page 15 Questions “ Even the tortoise when he wants to move forward has to stick his neck out a little bit. So let us stick our necks out a little bit and move forward together” Jimmy Johnstone, Chairman NTC