Thursday 21 September 2017

Credit unions face battle for a seat at the banking table

Canada’s credit union model – with online banking and ATMS – could attract the lucrative, and untapped, younger market into the banking sector
Canada’s credit union model – with online banking and ATMS – could attract the lucrative, and untapped, younger market into the banking sector
Richard Curran

Richard Curran

Have you noticed how so many bank advertisements on TV and radio are very obviously aimed at 18 to 34-year-olds? It might be for a mortgage, a car loan, college loan or even a savings product.

But by and large, this is the sweet spot of financial services for the future. Banks need to lend money to make a profit and with so many of the 34 to 50-year-olds in negative equity, heavily in debt and trying to make ends meet, they might not be in the borrowing mood.

Credit unions are not different. In fact they need a slice of the 18 to 34-year-olds, even more than the banks do. Too many of the current members of the country's 380 credit unions are savers instead of borrowers.

Please sign in or register with Independent.ie for free access to Opinions.

Sign In

Don't Miss