Athlone Credit Union and Castlerea and District Credit Union are proposing to unite the two financial institutions as one strong combined Athlone & Castlerea Credit Union.
The decision follows a considered review of all options, given the realities of a totally changed regulatory and operating environment for the credit union sector and the level of service members now require.
CEO of Athlone Credit Union, Michael Evans explained that mergers, or transfer of engagement have become increasingly common in the credit union sector in recent times. The Combined Credit Union will benefit from a one solid technology platform for the future needs of members and members will also benefit from an improved branch experience and more on-line services.
Discussions between the two organisations began approximately two years ago and the Central Bank of Ireland has given its initial approval for the merger plan.
“In Athlone we can offer services like current accounts & CU home mortgages, Castlerea due to their scale are unable to offer these services, by coming together we can offer more services to more members and become more involved in collaboration and joint initiatives.
“These types of mergers are happening in the credit union sector and are indeed encouraged by the central bank as they lead to increased efficiencies,” Mr Evans asserted.
As part of the merger there will be a commitment to retaining Athlone’s two public offices in Irishtown and Monksland, as well as the Castlerea office.
“Our commitment would be to have at least three offices with Irishtown, Monksland and Castlerea, that are fully staffed with that face to face and in person service our members have come to expect.” Members will have a choice of accessing services in any of the credit union offices, on-line or through the credit union app.
The merger deal is contingent on approval by members of both credit unions, legal representatives on both sides are currently performing a due diligence process and then a detailed case will be presented to the central bank for approval.
“We have to go to the members, to look for members permission. We will probably try to do that in conjunction with an AGM. We will certainly be very upfront about everything we’re doing, and we’ll ensure that the members have an opportunity to ask questions and get answers,” Mr Evans added.
The Transfer of Engagements will be completed in February 2023 pending successful approval by the members.
There are many positives to be gained from the merger between Castlerea and District Credit Union and Athlone Credit Union but at the heart it will bring the values and strengths of the credit unions together while maintaining all members love about each credit union.
