Frequently Asked Questions re: Merger of Kenmare & Killarney Credit Unions
Who is making this decision?
This decision was made by the Board of Killarney Credit Union and Kenmare Credit Union.
Why did the Board of Kenmare Credit Union and Killarney Credit Union take the decision to merge with another Credit Union?
As part of the planning process the Board of Kenmare C.U. carried out a comprehensive audit of their membership’s wants and needs, products and services on offer, Central Bank regulations, income from loans and investments, and our cost base, and came to the conclusion that in the medium to long term Kenmare Credit Union was not viable as a stand-alone Credit Union. The Board believed that the best interests of members would be served by proactively looking for a suitable Credit Union with which to merge.
As part of its Strategic Plan, Killarney Credit Union sought to look at merger options to ensure that it can achieve a financially stronger credit union that is in a position to offer a broader range of services to members. The Combined Credit Union will have a more robust organisation structure and will benefit from cost savings in a number of areas. Our aim is to be able to provide our members with the services expected of a modern Credit Union including enhanced online and mobile access by year end and to examine the possibility of introducing access to a debit card (subject to Central Bank approval)
Why was Killarney Credit Union selected as the merger partner by Kenmare?
Killarney is Kenmare’s nearest neighbour, and they have been very supportive in their discussions with us. Both Credit Unions share the same values, ethos and vision.
Will members have to do anything?
No, members will be unaffected by the merger process and can continue to do business as normal with their Credit Union.
Will members of Kenmare Credit Union still have full membership and voting rights?
Yes, following the merger members of Kenmare and Killarney Credit Unions will have full membership and voting rights in the combined entity.
Are members’ savings safe?
100 % safe. All members savings are state guaranteed up to €100,000.
Will the Kenmare Credit Union office remain open or will the opening hours be reduced?
No change in opening hours is proposed for the foreseeable future.
Will the Credit Union be stronger after the merger?
Yes. The merged Credit Union will have over €92,000,000 in assets. We will be able to serve most of our members lending and banking needs and subject to approval by the board and members, pay a dividend to our members.
Will I have to travel to another office after the merger?
No, Kenmare Credit Union and Killarney Credit Union offices will continue as before however members will be able to use either Kenmare or Killarney Credit Union offices to transact their business. In the not too distant future it is also expected that members will be able to fully access their accounts electronically.
Will anything change?
Day to day operations for our members will remain the same and over time you will experience enhancements to these services. What will change is that the legal name of the credit union Kenmare Credit Union Ltd will no longer exist as it will have merged its business with Killarney Credit Union Ltd.
Will the same people still be handling my accounts?
Yes, we do not see a change in staff at the Kenmare or Killarney offices.
Are jobs secure?
Yes, members of staff have been kept informed of all talks and their pay and conditions will not change.
Will the cost of my loan go up or down?
The terms and conditions of existing loans will remain the same. However, any new loans or top-ups of existing loans will be at Killarney Credit Union’s rates, which at the moment are lower than that of Kenmare Credit Union.
Will my dividend go up or down?
As you are aware, no dividend has been paid for the past number of years by Kenmare Credit Union, we would be hopeful that the combined Credit Union to be able to pay a dividend in the near future.
Will existing suppliers of services/goods continue to supply services/goods post-merger?
This is a matter for the new management team.
If we get bigger, will we become more like a bank and lose the local feel?
No. We will maintain the ethos and values of the Credit Union, which will continue to be locally based and owned by the members. Our aim is to be able to provide our members with the services expected of a modern Credit Union, but we have to be able to compete with the banks in providing these services. We will still be a locally based Credit Union, controlled by the local community.
Will the Credit Union still be owned by its members?
Yes. The Credit Union is owned by its members and democratically controlled by its members; its purpose is to serve the members and their community for their common benefit.
Will the Credit Union name change?
Kenmare Credit Union will remain over the door. However the legal entity will be Killarney Credit Union Ltd.
What are the benefits for existing members of each Credit Union?
There are numerous benefits for Kenmare members, including:
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- Continued access to your Credit Union in Kenmare.
- The combined Credit Union will have a greater capacity to lend.
- Lower interest rates on new loans and top-ups.
- Hopefully the payment of a dividend.
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- Home, vehicle and travel insurance products.
- Private Health Insurance.
- Death Benefit Insurance.
- Repayment Protection Insurance.
- Enhanced Foreign Exchange services.
- Access to the members car and cash draw.
- Enhanced online and mobile access to your account by the year end including standing orders, direct debits, transfers, and online statements.
- Subject to approval by the regulator, we are hopeful that you will be able to access to your account by debit card – the ability to access your account from anywhere in the world.
- Kenmare members ensure that their voice is heard at the highest level with two board and one board oversight committee places going to existing Kenmare board members.
- An assurance that your credit Union has a robust governance structure which will meet the new regulatory and compliance regime.
- The merger will provide staff and volunteers with personal growth and development opportunities and ensure job security for staff.
- Increased engagement with members via information meetings, member newsletters, social media and the local forum.
There are numerous benefits for Killarney members, including:
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- Additional access to your Credit Union in Kenmare.
- Membership growth opportunities
- Loan growth opportunities
- Cost savings in a number of areas
- More robust governance structure
- Financially stronger credit union
- Enhanced services by year end
Will the Credit Union continue to support the local community following the merger?
Yes, most definitely. A budget will be set aside to support local community projects and it is proposed that local forums will be established to ensure local representation at board level.
When will the merger take place?
It is expected that from 20th May 2015, Kenmare and Killarney Credit Unions will operate as a combined Credit Union.
How will the merger affect me personally?
The Credit Union will continue as before, but with increased services for existing Kenmare members and a stronger credit union for Killarney members. Hopefully, in time we will be able to meet members’ banking needs which we have not been able to do up to now, there will be access to larger loans, insurance products, and hopefully the payment of a dividend. There will be no negative effects on members.
I pay my loan by standing order; will this be changed automatically to the new entity?
Yes. Existing loan repayments arrangements will continue as before.
I was in a process of getting loan approval for a loan. What happens to it?
Loan applications will continue to be accepted and assessed as normal.
Will my account number change?
Members of Kenmare Credit Union will have 50,000 added to their current account number to get their number in the merger entity e.g. if your account number is 541X it will become 50541X. There will be no changes to account numbers for existing Killarney Credit Union members.
Where will the AGM be held?
This will be a matter for the Board of the merged Credit Union.
Is the Central Bank aware of the merger?
Yes. The Central Bank has been fully informed of the merger process and they will have to give final approval for the merger to be completed.
Who can I contact for further information?
Michael Gavin, Kenmare Credit Union, or Mark Murphy, Killarney Credit Union.