Credit Unions Ireland Presentation, Baku November 2004, Michael Gannon 1 Credit Unions : Ireland 40 years of development Serving 60% of the population (over 2 mln) Locally based and directed –530 CUs, directed by local board –Supported by Federation (ILCU) Savings led –no donations or external credit, no member capitalisation Consumer and SME Lending

Credit Unions Ireland Presentation, Baku November 2004, Michael Gannon 2 Typical Irish CU Geographical Base –From 1,000 to 8,000 members –Directed by 20 to 30 elected volunteers Board ( people) Credit Committee (3) etc. –All members have savings –25% to 50% of members have loans –Members pledge savings as security for loans 20% to 30% of savings are pledged against loans

Credit Unions Ireland Presentation, Baku November 2004, Michael Gannon 3 Irish League of Credit Unions Services.Protection.Training.Insurance and Bonding.Liquidity and Investment Management.Marketing and Communication.Representation –Special Status with State Regulator in 1997 Law

Credit Unions Ireland Presentation, Baku November 2004, Michael Gannon 4 Reasons for Success Strong Community and Voluntary Tradition –influences of culture, religion, emigration Strong savings, Careful lending Mix of CUs countrywide –Urban and workplace were strong enough to maintain the ILCU, which gave the smaller rural CUs the services they needed.

Credit Unions Ireland Presentation, Baku November 2004, Michael Gannon 5 CHALLENGES Be more competitive in traditional services Expand services –to give full range of daily financial services Technology –link all 535 CUs into network – link up to state payment systems. Regenerate the volunteer leadership –average age of volunteer is too high (50+) –after 40 years the old pioneers are tired