Fexco joins credit unions in €10m collaboration
Financial services group Fexco and 16 of Ireland's bigger credit unions have embarked on a €10m collaboration.
The aim of the joint venture, called Metamo, is to support the viability and sustainability of credit unions by providing their customers with modern financial products.
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As part of this, it will look at how best to engage with customers and increase long-term lending.
Metamo will also develop more efficient operating systems for credit unions in areas like process improvement, risk management and technology delivery.
It will not, at this point, be providing consumers with products such as debit cards.
The 16 financial institutions represent over 480,000 members from across the country and have combined assets of over €3bn, or just under 20pc of the asset value of the sector.
Metamo will offer to sell the solutions it develops to other credit unions who are not part of the joint venture.
Profits from the sales will go to Fexco and the 16 credit unions, who will also have to pay for the solutions.
Joe O'Toole, chairperson of MetaCU - the entity comprising the 16 credit unions investing in Metamo - said:
"Metamo brings unprecedented scale to any previous sector initiative and signals a new and exciting development in the financial services industry."
"The company will deliver new income streams and improved processes for the investing credit unions and has the potential to transform the entire sector."