Payments CUSO Presentation February 26 th , 2011 Barry O’Mahony Programme Manager, CUSO ,

Payments CUSO Project

Payments CUSO Presentation

February 26th, 2011

Barry O’Mahony

Programme Manager, CUSO

,

Best Practice Meetingfor Youth Development


Contents

• Background

• What are members saying?

• CUSO Project

• The Payments Landscape


Background

• The Economic Environment

• Regulatory Change

• Opportunity for the Credit Union Movement

• The Vision– ILCUnet– ILCUbis


SAFESTRONGSECURE

ILCUbis - Credit Union Business Intelligence Service

Payments CUSO

Your IT Supplier Service

New Services

Credit Union A Ltd

Credit Union B Ltd

Sub OfficeCredit Union B Ltd

Irish League of Credit UnionsILCUnet

ILCUnet – Your Private Credit Union Network


ILCUbis – CU Business Intelligence Service

Tool used to help CUs make Informed DecisionsLets CUs graphically analyse their performance CUs can compare their performance against other CUsUse forecasting tool to see how CU will perform if projections are accurate

Business Intelligence


What are the members saying?

Investing in our Future Research – August 2009 highlighted demand for new services

“…..members are open to new product and service innovations that meet real needs and enhance already high levels of customer satisfaction”

“…in order for credit unions to fully meet the financial needs of members… they need to be in a position to deliver products and services which have become integral to how members manage their financial needs.”


CUSO - The Vision

The strategic vision for a Payments Credit Union Services Organisation (‘CUSO’) is to provide ALL Credit Unions with the option of access to electronic payments products and services, specifically;

Direct debits;

Credit transfers and standing orders; and

Potentially, debit cards,

in a cost efficient manner.


Resolution No. 34 of League AGM 2010 - Payments CUSO Project

– Up to €1.55 million contribution from the Irish League of Credit Unions

– At least €1.55 million contributed by credit unions in units of €10,000 (or Sterling equivalent)

– minimum of 155 credit unions required for funding

CUSO – The Approval


A Regulated Entity

Enabler for the future

A Platform for member services

A mechanism to give control to Credit Unions

CUSO The Project


The Structure

• Be licensed as a Payments Institution;

• Passport into NI once established

• Compliance with SEPA and PSD:

Single Euro Payments Area

Payment Services Directive

• A unique development


Why CUSO?

• Regulatory support

• Control over our own destiny

• Need to provide a platform for alternatives to cash and cheques

• Economies of scale


The Payments Landscape

• Goodbye cheques?

• Cash…..start packing!

• Cards

• Internet

• Mobile payments

• Hello virtual money


Cash……start packing!

• Most expensive mechanism for payments

• Cost per Irish household: €1,590pa– €2,370,000,000 cost to the nation every year!

• Alternatives increasingly available


The Alternatives

• Cards: Credit, Debit, Pre-Paid– Chip & PIN– NFC (Near Field Communication)

• Internet

• Mobile– NFC– Smart Apps

• Virtual- Facebook Credits- PayPal


Questions

“Even the tortoise when he wants to move forward has to stick his neck out a little bit. So let us stick our necks out a little bit and move forward together”

Jimmy Johnstone,

Chairman NTC

Payments CUSO Presentation February 26 th , 2011 Barry O’Mahony Programme Manager, CUSO ,

Documents

Transcript of Payments CUSO Presentation February 26 th , 2011 Barry O’Mahony Programme Manager, CUSO ,