Bridget1984
Registered User
- Messages
- 38
Why don't you ask them?My local one hasn't joined in yet.
Doesn't the link explain the ins and outs of it?I don't know the ins and outs of it, I presume that it's some sort of white label product? www.currentaccount.ie
My local one hasn't joined in yet. I think it's a shame because I think lots of older people would love to do their everyday banking at the local cu office. I don't know the ins and outs of it, I presume that it's some sort of white label product? www.currentaccount.ie
I've asked a couple of Tellers but they just said "maybe someday"... What i meant is I don't know who's actually providing the product, I presume it's a similar set-up to the an post credit card that's really advent card using the Anpost label.Why don't you ask them?
Doesn't the link explain the ins and outs of it?
Is it loss making? Have any figures been published about the total take up so far? The main reasons given for credit unions going into the current account business was the withdrawal of Ulster Bank as well as BOI and AIB closing branches around the country. The amount of people who ever switch current account provider is said to be very low tho.Introducing an loss-making service to cater to a small amount of older members is pretty bad business. There's a bit more to offering current accounts than just buying in a white label product. I don't really get why credit unions are bothering with them at all to be honest - the take up has been fairly meagre to-date. They should be focusing all their attention on increasing their very small loan books.
Credit unions decided to get into current accounts long before Ulster or KBC announced their exits. The guidance was updated by the Central Bank to allow for them in 2016.Is it loss making? Have any figures been published about the total take up so far? The main reasons given for credit unions going into the current account business was the withdrawal of Ulster Bank as well as BOI and AIB closing branches around the country. The amount of people who ever switch current account provider is said to be very low tho.
Add on top of that, most CUs waive fees for students, and members over 65, so the members most likely to take it up aren't generating any income but the provider is still charging! It's the usual approach with Credit Uions - solve what isn't the problem!Most appear to be charging €48 per annum so I'm not really sure how they even could be making money from them.
Do you think the an post current account is in the same boat, low take up/losing money ?Credit unions decided to get into current accounts long before Ulster or KBC announced their exits. The guidance was updated by the Central Bank to allow for them in 2016.
Not sure about total take-up but the 2 credit unions I'm a member of offer them and I can see they are loss-making from their annual reports with very limited take-up. I've scanned through a few other reports and the pattern is the same. There were big set-up costs when they introduced them too so even if they do break even it'll take years. Most appear to be charging €48 per annum so I'm not really sure how they even could be making money from them.
Current accounts are also historically loss-making for banks so I don't know how CUs could be making money at such low volumes and economies of scale. The fact that there are 2 providers of current accounts for credit unions is even more mind-boggling. I just don't get what's in it for them really. I don't think any of them could have really believed they would gain significant market share or that current accounts were going to help them in addressing their main issue i.e. that they can't lend enough of the money the take in as savings from members.
I don't think any of them could have really believed they would gain significant market share or that current accounts were going to help them in addressing their main issue i.e. that they can't lend enough of the money the take in as savings from members.
Open to correction but I don't think CUs can leave money overnight with the ECB.Now that interest rates have risen, can the credit unions put their money on deposit and avail of ECB rates?
Sep-22 (%) | |
Accounts In Authorised Credit Institutions | 68 |
Irish And EEA State Securities | 5 |
Bank Bonds | 25 |
Other | 2 |
I think that this might be the point.
If you have a credit union account and no bank account, if you do want a loan you will go first to your credit union.
Now that interest rates have risen, can the credit unions put their money on deposit and avail of ECB rates?
Brendan
Or maybe it will leave them fundamentally healthier. If CUs managed to survive nearly a decade of zero interest rates they will clearly do better in a higher interest rate environment.but this will obviously only be papering over the cracks since their underlying lending business model is so anaemic.
Yes, possibly. If they use the breathing space afforded to them by higher investment returns to focus on fixing the lending business they will be in fairly good shape, but they have a fairly significant balance sheet mismatch with lots of environmental risks over which they have very limited control.Or maybe it will leave them fundamentally healthier. If CUs managed to survive nearly a decade of zero interest rates they will clearly do better in a higher interest rate environment.
They can get about 3% for 5 years fixed.
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