Strategic Merger of two Credit Unions
Introduction
Thank you for your interest in this proposed merger which we view as a powerful strategic pillar in sustaining and building on the great work both our credit unions have done in our communities and for our members since their establishment over 50 years ago. The Board of Directors of Community Credit Union Limited and Blanchardstown & District Credit Union Limited are delighted to ask our members to approve the transfer of engagements, of Blanchardstown & District Credit Union Limited to Community Credit Union Limited at the upcoming SGMs. This has been a collaborative, co-operative process between two culturally aligned credit unions who passionately believe in the impact our work has on our members and our communities, and the success of this project to date has been built on trust, respect and parity of esteem.
It is our collective belief that we are stronger together and in such a fast-paced. competitive, dynamic and technologically evolving sector, this strength will be paramount to enabling the combined credit union to stay relevant and at the leading edge in delivering quality service to our members, long into the future.
Why merge? The Strategic Rationale
The Board, Management and Employees of both credit unions are certain that this merger will strengthen our position to be the most trusted, respected and preferred financial services provider for our members and that greater collective strength and financial and human resources will prolong that status long across the communities of Dublin West.
This proposed merger is the result of detailed analysis, which has been validated and approved by the Central Bank. It will create cost and business synergies that will make our financial model more resilient. This greater resilience will in turn allow us to utilise our collective financial strength, stronger resources and capacity to build more services within our communities. We will have greater opportunities to be increasingly relevant to our existing and new members,ultimately leading to the enhanced financial wellbeing of all our members. By increasing our sponsorships and strategic partnerships with local community groups we will build more connected, vibrant and sustainable communities and strengthen our place in the heart of these communities, which we serve.
The enlarged credit union will.
- protect the provision of Credit Union services in our community and allow for more investment in our communities
- enable access to a broader range of services including current accounts, savings and loan services at competitive and sustainable rates
- be a stronger, more viable Credit Union with healthy financial reserves
- satisfy member expectations and security of savings and
- provide greater efficiencies through sharing costs, resulting in better value and enhanced services for members
Key Member Benefits
Our members will benefit as follows.
- Additional Digital Services through our new and continuously evolving Online Banking App
- Access to more branches, a wider range of opening hours and enhanced service across multiple channels
- Greater financial Strength means increased financial security for members
- Great Value Current Accounts for only €4 per month
- Life Benefit Insurance, Loan Projection and more!
- Competitive Mortgage offering available to first-time buyers, switchers and movers from a trusted source with your long-term interests at heart
- Increased financial capacity for member dividends
- Larger team with greater capability and capacity to meet your financial services needs into the future
- Scope to expand services to be more relevant to more members in our community.
- Greater scale to support and nurture communities through greater sponsorships and impactful partnerships into the future
FAQs
1. Why was this particular credit union selected as the merger partner?
Community & Blanchardstown & District Credit Unions have much in common in terms of their members, location, overlapping common bond geography and communities. Our shared ethos of the Credit Union and the value it can offer members and communities is shared by our members, employees and directors. A myriad of challenges face Credit Unions generally. and together, we can be stronger in facing and overcoming those challenges.
These challenges include greater bank and non-bank competition, higher costs of doing business in terms of increasing services and IT sophistication to compete, meeting greater regulatory requirements etc. and challenges relating to the macroeconomic environment around growth, cost of living and uncertainty of the interest rate environment.
Together, both credit unions are stronger in facing and overcoming those challenges.
2. Is the credit union in financial difficulty?
No, both credit unions are financially sound but challenges exist in and for the sector in terms of increased bank and non-bank competition, rising costs etc. As such, with our surpluses combined, year on year into the future, we feel we can survive and thrive in providing greater services to our shared communities long term.
3. Who is making this decision?
Both credit unions came together in 2024 to explore this possibility. A lot of preparatory work has gone into getting the merger to a stage where we can communicate to our members, confident we are doing the right thing for both credit unions, our communities and have the support of the Central Bank in doing so.
4. Will I have to do anything?
No, all your data, accounts, monies and balances will automatically switch to the merged entity and you will be able to transact as normal on the day of the merger. BDCU members will have to re-register for online banking in the new combined entity. We will have our team focused on supporting BDCU members in completing this on merger, and a video will be accessible on our website that will walk you through the process, in a step by step manner.
5. Are members’ savings safe?
Absolutely, collectively we are a very strongly capitalised credit union which should give a lot of confidence to our members that we are in a strong position to mind your funds and expand services to you over time. Member savings up to €100,000 will continue to be protected under the Government Deposit guarantee Scheme (DGS).
7. Will the credit union be stronger after the merger?
Yes, the merger brings some key benefits including some cost savings as a collective entity, a stronger balance sheet and scale brings benefits in enabling us bring improved and more services to a wider membership base.
8. Will I have to travel to another office after the merger?
No, all offices will be available for you to transact in and services will expand overtime which will be accessible across all our branches and online.
10. Are Employee Jobs secure?
Yes. No employee will lose their job from the merger and under TUPE legislation, employees can transfer into the new entity with the same terms & conditions as their current position, with any contractual changes only through employee agreement.
A Voluntary Exit scheme for employees was undertaken pre-merger. It was available to all permanent employees who wished to consider it in both credit unions. Circa 10% of employees choose to apply for this scheme, which is in the normal range for such schemes in SME businesses.
12. Will my dividend go up or down?
Dividend payments are typically a function of credit union surpluses annually, and deposit interest rates being offered in the marketplace. The merger will be of benefit in improving surpluses over time but will not change external factors such as the interest rate environment. While we expect to increase surpluses and ultimately dividends in the medium to long term, it will be decided upon annually by the board and take cognisance of a myriad of credit union and external factors ongoing.
13. As a Credit Union supplier, will I still be supplying my services to you post-merger?
As pointed to earlier, one benefit of the merger is cost synergies as a result of the requirement for two suppliers converging to one for some services. Therefore while the majority will continue to service the merged credit union, some service providers will likely lose out. We will communicate the service providers but we would urge you to contact the credit unions for further details around this should you have concerns and we can discuss on a ‘case by case’ basis.
14. If we get bigger will we become more like a bank, and lose that local feel?
Absolutely not, we differentiate ourselves by knowing our members, operating at the heart of the communities we serve and while we do need to offer our services through digital and online offerings, we can never lose that personal and local touch. We commit to delivering for all our members in whatever way they wish to do business, be that in branch, over the phone or online etc.
16. Will the credit union name change?
While the legal name on merger will be Community Credit Union, both credit unions as part of the merger process had previously agreed to use the name of Blanchardstown & Community Credit Union. At present, with the trend of credit union names changing with mergers across the country, and with Rowlagh CU and its members joining in April, we have now committed to a review of the name and branding of the new combined entity in the coming months. This will ensure any new name reflects our ethos, collective community spirit, geography and strategic ambition for the business at the heart of our West Dublin community. Following this review, our name will be proposed to all our members at next year’s AGM for approval, and submitted to the regulator for final sanction.
17. What are the benefits for members?
Stronger financial position, scope to develop better services for our members into the future and a greater ability to tackle and overcome the core challenges facing the sector together, such as falling personal loan demand and income, volatile investment income, rising costs and regulatory oversight, greater traditional and non-traditional competition etc., investment to grow our business relevance and digital platform etc.
18. Will the credit union continue to support the local community following the merger?
Absolutely, it is a core pillar of both credit unions that the collective entity will have at its heart the servicing and support of both communities as one, into the future and indeed, sustaining this service long term is the core rationale for this merger.
21. Who can I contact for further information?
1) CEO Blanchardstown & District CU – Stewart Agnew
2) Interim CEO Community CU – Claire Lawton
3) Project Manager - Cormac Heffernan
22. Where will the SGM be held?
We acknowledge that our members, while valuing and invested in what the credit union does and can do for them and their communities, have busy and demanding lives. The trend in the sector now is to hold virtual SGM’s to enable more members to attend the SGM at their ease and we plan, in the majority to run virtual SGM’s into the future.
23. When can credit union members consider and vote on the merger proposal?
The Blanchardstown & District SGM will take place on Thursday 5th June via Zoom webinar.
1. Why was this particular credit union selected as the merger partner?
Community & Blanchardstown & District Credit Unions have much in common in terms of their members, location, overlapping common bond geography and communities. Our shared ethos of the Credit Union and the value it can offer members and communities is shared by our members, employees and directors. A myriad of challenges face Credit Unions generally. and together, we can be stronger in facing and overcoming those challenges.
These challenges include greater bank and non-bank competition, higher costs of doing business in terms of increasing services and IT sophistication to compete, meeting greater regulatory requirements etc. and challenges relating to the macroeconomic environment around growth, cost of living and uncertainty of the interest rate environment.
Together, both credit unions are stronger in facing and overcoming those challenges.
2. Is the credit union in financial difficulty?
No, both credit unions are financially sound but challenges exist in and for the sector in terms of increased bank and non-bank competition, rising costs etc. As such, with our surpluses combined, year on year into the future, we feel we can survive and thrive in providing greater services to our shared communities long term.
3. Who is making this decision?
Both credit unions came together in 2024 to explore this possibility. A lot of preparatory work has gone into getting the merger to a stage where we can communicate to our members, confident we are doing the right thing for both credit unions, our communities and have the support of the Central Bank in doing so.
4. Will I have to do anything?
No, all your data, accounts, monies and balances will automatically switch to the merged entity and you will be able to transact as normal on the day of the merger. BDCU members will have to re-register for online banking in the new combined entity. We will have our team focused on supporting BDCU members in completing this on merger, and a video will be accessible on our website that will walk you through the process, in a step by step manner.
5. Are members’ savings safe?
Absolutely, collectively we are a very strongly capitalised credit union which should give a lot of confidence to our members that we are in a strong position to mind your funds and expand services to you over time. Member savings up to €100,000 will continue to be protected under the Government Deposit guarantee Scheme (DGS).
7. Will the credit union be stronger after the merger?
Yes, the merger brings some key benefits including some cost savings as a collective entity, a stronger balance sheet and scale brings benefits in enabling us bring improved and more services to a wider membership base.
8. Will I have to travel to another office after the merger?
No, all offices will be available for you to transact in and services will expand overtime which will be accessible across all our branches and online.
10. Are Employee Jobs secure?
Yes. No employee will lose their job from the merger and under TUPE legislation, employees can transfer into the new entity with the same terms & conditions as their current position, with any contractual changes only through employee agreement.
A Voluntary Exit scheme for employees was undertaken pre-merger. It was available to all permanent employees who wished to consider it in both credit unions. Circa 10% of employees choose to apply for this scheme, which is in the normal range for such schemes in SME businesses.
12. Will my dividend go up or down?
Dividend payments are typically a function of credit union surpluses annually, and deposit interest rates being offered in the marketplace. The merger will be of benefit in improving surpluses over time but will not change external factors such as the interest rate environment. While we expect to increase surpluses and ultimately dividends in the medium to long term, it will be decided upon annually by the board and take cognisance of a myriad of credit union and external factors ongoing.
13. As a Credit Union supplier, will I still be supplying my services to you post-merger?
As pointed to earlier, one benefit of the merger is cost synergies as a result of the requirement for two suppliers converging to one for some services. Therefore while the majority will continue to service the merged credit union, some service providers will likely lose out. We will communicate the service providers but we would urge you to contact the credit unions for further details around this should you have concerns and we can discuss on a ‘case by case’ basis.
14. If we get bigger will we become more like a bank, and lose that local feel?
Absolutely not, we differentiate ourselves by knowing our members, operating at the heart of the communities we serve and while we do need to offer our services through digital and online offerings, we can never lose that personal and local touch. We commit to delivering for all our members in whatever way they wish to do business, be that in branch, over the phone or online etc.
16. Will the credit union name change?
While the legal name on merger will be Community Credit Union, both credit unions as part of the merger process had previously agreed to use the name of Blanchardstown & Community Credit Union. At present, with the trend of credit union names changing with mergers across the country, and with Rowlagh CU and its members joining in April, we have now committed to a review of the name and branding of the new combined entity in the coming months. This will ensure any new name reflects our ethos, collective community spirit, geography and strategic ambition for the business at the heart of our West Dublin community. Following this review, our name will be proposed to all our members at next year’s AGM for approval, and submitted to the regulator for final sanction.
17. What are the benefits for members?
Stronger financial position, scope to develop better services for our members into the future and a greater ability to tackle and overcome the core challenges facing the sector together, such as falling personal loan demand and income, volatile investment income, rising costs and regulatory oversight, greater traditional and non-traditional competition etc., investment to grow our business relevance and digital platform etc.
18. Will the credit union continue to support the local community following the merger?
Absolutely, it is a core pillar of both credit unions that the collective entity will have at its heart the servicing and support of both communities as one, into the future and indeed, sustaining this service long term is the core rationale for this merger.
21. Who can I contact for further information?
1) CEO Blanchardstown & District CU – Stewart Agnew
2) Interim CEO Community CU – Claire Lawton
3) Project Manager - Cormac Heffernan
22. Where will the SGM be held?
We acknowledge that our members, while valuing and invested in what the credit union does and can do for them and their communities, have busy and demanding lives. The trend in the sector now is to hold virtual SGM’s to enable more members to attend the SGM at their ease and we plan, in the majority to run virtual SGM’s into the future.
23. When can credit union members consider and vote on the merger proposal?
The Blanchardstown & District SGM will take place on Thursday 5th June via Zoom webinar.
Queries
Ahead of the SGM, should you have any queries or concerns in relation to the proposed merger, please do not hesitate in reaching out and we would only be delighted to address them.
Please contact us on;