North Midlands Credit Union chief supports proposal to enable credit unions to broaden their services

North Midlands Credit Union is backing calls from the Irish League of Credit Unions (ILCU) for policymakers to implement several crucial reforms to make services more accessible.

The ILCU has requested that changes are implemented that would enable credit unions to broaden their services, enhance competition within the financial services sector, and offer better choices to Irish consumers.
The proposals, which include increased flexibility to become a bigger player in the mortgage market, are outlined in the ILCU’s 2024 General Election Manifesto.

Tom Allen, CEO of North Midlands Credit Union, stated they are highlighting issues they would like dealt with and resolved.
"I support the calls, we want to be pushing towards a more competitive financial service landscape, we want to reduce financial fraud and improve financial literacy, reduce complexity and enable credit unions to grow," he added.
Mr Allen insisted the push for more competitiveness and a better choice, which he believes will benefit customers and the public, goes back to the lending limits imposed on credit unions.

He stressed the amount they are allowed to lend in particular areas such as mortgages or business lending is very restricted.
"Traditionally the credit unions were probably not strong in those areas, but there has been a huge demand for credit unions over the last number of years to become a bigger player in the market," he added.
Mr Allen insisted the demand for mortgages from credit unions is now huge.

"We here at North Midlands Credit Union now serve people from all of northwest Meath, all of Longford so it is a big area and there is an increasing demand every day, but there are limits on what we are allowed to do," he added.
Key proposals include the establishment of a national fraud database and the implementation of PPSN checks on loan enquiries to better protect consumers from fraud.

There is also a push to modernise the Credit Union Act to simplify regulations and support the sector's growth, allowing credit unions to provide an enhanced level of services to local communities.
A third recommendation in the manifesto is the retention of the Minister of State with Responsibility for Financial Services, Insurance, and Credit Unions.

Mr Allen outlined another issue highlighted by the ILCU was that they wanted the registry of credit unions which is part of the central bank which regulates credit unions, elevated.
"That is to ensure it becomes more effective and it is closer to the decision-making process within the Central Bank," he added.

Mr Allen said there is also a need for stronger safeguards against financial fraud and improvements in financial literacy.