Kilkenny Credit Union woos customers of exiting banks, as need to lend more intensifies

The level of lending by St Canice’s Credit Union needs to be increased this year, with growth in this area vital for its continued success, the institution’s CEO says.

As with last year, the pandemic and its lockdowns have had an effect on lending nationally in the last year. Opportunities to spend and borrow have been reduced, and in her overview of operational matters, CEO Carmel Butler warned there has been a significant reduction in the volume of traditional loans requested by members.

Simply put: People are not borrowing as much as they were prior to the pandemic, and this is a problem because interest on loans is one of the Credit Union’s main sources of income. It is an issue being faced by Credit Unions everywhere, but with income from investments falling, loan income has become even more important.

However, loan performance at St Canice's this year was still better than forecast, with €43 million in loans and with loan repayments factored in, the overall loan book reduced by €2 million to just under €93 million.

The past year has seen a number of banking competitors exit or prepare to exit the Irish market. Ms Butler noted KBC had left and Ulster Bank was not far behind, while Bank of Ireland had closed six branches in the Credit Union common bond area and AIB had gone cashless in some places. The Credit Union may be an attractive banking option for customers or ex-customers of these institutions, and Ms Butler urged members to consider the Credit Union as a 'first option' if looking for a loan, and to tell their family and friends it was a competitive option.

The new Agri Loan may be of interest to people, she said, noting that the common bond area encompasses 'some of the finest agricultural land in the country'. Local businesses under pressure should also get in touch.

“My message to all our members is clear — we are here for all your financial needs and will remain in your local area if we have your continued support,” she notes.

“St Canice’s has a very wide range of products and services. We can provide a solution for all your lending requirements, from holiday and wedding loans, to car loans and home improvement loans, together with house mortgages and agriculture and business loans.”