Tuesday 23 January 2018

Credit Unions embrace FinTech as loans flood in through Facebook

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Ellie Donnelly

Ellie Donnelly

Credit Unions around Ireland have entered the FinTech arena, with some credit unions reporting a 10-fold interaction with younger adult members since they began rolling out digital loan service initiatives earlier this year.

Since its launch, the "Facebook Loan" initiative has already been a huge success for several credit unions throughout the country – now accounting for up to 15pc to 20pc in loan enquiries per month for some credit unions.

Key aspects of the new digital lending initiative involves a 30-second enquiry online, followed by call-backs from dedicated lending officers to ensure all the terms and conditions are explained and agreed.

Following an initial successful pilot project, this has now become an established channel for credit unions, with close to half of consumers using the facility to take out a loan never having borrowed from a credit union before.

In a move to drive the FinTech agenda forward, the Solution Centre, which is managed by the Credit Union Development Association (CUDA), is holding an event tomorrow in conjunction with Enterprise Ireland, at the Spencer Hotel in Dublin to provide those in Ireland’s credit union sector with an opportunity to meet some of the global leaders in FinTech.

The aim of the event is for those in the credit union sector to get an understanding of how Solution Centre innovations can enable credit unions to offer a "market-leading" member experience.

Kevin Johnson, CEO of CUDA and the Solution Centre
Kevin Johnson, CEO of CUDA and the Solution Centre

The move comes following a survey of 1,000 people throughout Ireland which found that approximately one in two people would prefer to apply for access to credit with a lending institution using an online channel such as Facebook if given the choice, rather than attending the branch and meeting with a bank or credit union employee.

"It’s clear the movement’s leading credit unions have embarked on a transformative digital journey," Kevin Johnson, CEO of CUDA and the Solution Centre, said.

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