Galway credit unions take on the banks

Galway’s two biggest credit unions are considering entering the very competitive mortgage market – a move which would send shock waves through the main banks and lending institutions.

St Jarlath’s CU in Tuam and St Anthony’s and Claddagh launched a joint promotion of their education loans in Galway city last week . . . but admitted this could all be leading to a much bigger picture.

St Jarlath’s recently merged with Mountbellew-Moylough Credit Union as the Tuam-based financial house spread its wings – but its manager admitted it now it has even bigger ambitions.

Mick Culkeen told The Connacht Tribune that they were very excited to be associated with St Anthony’s and Claddagh Credit Union for the education initiative that will benefit third level students and masters students.

“We are the two biggest credit unions in the county and we are starting out with education loans in the hope of this leading to something much bigger in the financial market.

“It will lead to better efficiency and better expertise when it comes to our members applying for loans and we intend to be more competitive than the banking institutions,” Mr Culkeen added.

They expect to be offering loans at 5.5%   in most of the mainstream banks they are 2% more expensive.

While both credit unions are currently talking to students about educational loans, their eye is definitely on a much bigger picture and are seriously contemplating offering a mortgage product to their members.

“We are both very good at what we do. So we are willing to explore further avenues and we will be doing so over the course of the coming months,” added Mick Culkeen.

The big one is the provision of mortgages and their financial rivals are now fearful that the credit unions will be in a position to give their customers a much more competitive product and this could well shake up the market locally.

They are also looking at extending their car loan facility along with providing an out-of-hours service.

“Gone are the days when customers will have to wait days for a decision on loans as it will be given to them on the spot. It is just going to be more streamlined,” Mr. Culkeen added.