The Credit Union Development Association (CUDA), the representative and professional development body for credit unions in Ireland, has appeared before the Oireachtas joint committee on finance, public expenditure, public service reform and digitalisation, setting out the policy changes needed to support the next phase of growth across the credit union sector.

Business Plus reported that CUDA chief executive Helen Carbery outlined how credit unions have expanded their service offering over the past decade and identified three priority areas where government action is now required to unlock further development.

Carbery said: "Credit unions have transformed significantly over the past decade. They are stronger, more resilient and more professional than ever before. They are not asking to become banks. They are asking to be enabled to fulfil their distinctive community purpose in a modern financial services environment."

The three priority areas set out by CUDA include progressing the corporate credit union framework and associated centralised funding infrastructure, providing a clear pathway for credit unions to access digital transformation and cybersecurity support, and adopting a more coordinated national approach to consumer financial wellbeing that recognises credit unions as trusted community delivery partners.

The committee also explored the growing role credit unions can play in housing and community development, with members highlighting the challenges faced by individuals who struggle to secure finance through traditional lending channels despite having the capacity to repay. CUDA outlined how credit unions are increasingly addressing these gaps through community-focused lending.

Specific reference was made to a pilot programme involving Offaly County Council and Tullamore Credit Union, which is supporting affordable housing delivery through credit union finance. CUDA stated it believes there is significant potential to expand such programmes nationally, enabling credit unions to play a greater role in supporting government housing objectives.

Carbery said: "Credit unions occupy a distinctive place in Irish society. They are community-owned social enterprises that exist to improve the financial wellbeing of their members and communities. Every surplus generated is reinvested back into the communities they serve through lending, education, local initiatives and member services. The sector has shown it can modernise, innovate and adapt. The challenge now is ensuring that legislation, regulation and public policy keep pace with that evolution and remove unnecessary barriers that prevent credit unions from delivering their full potential."

Access the full details of CUDA's Oireachtas committee submission on credit union growth and policy reform.