From next week, an estimated 2.1 million credit union members may view their accounts online using a newly developed system, cu@home. Users may access account balances, list their last 10 transactions, apply for loans, calculate weekly/monthly payments and have e-mail confirmation for all applications. Account details are only accessible to members through personalised access codes.

The new system was developed by Premier Computer Group, a subsidiary of Integrity Software, the leading supplier of in-house credit union software.

Chief executive of the Tipperary Credit Union, Mr Pat Shanahan said cu@home provides an excellent way to attract new business from younger people.

Credit unions need to address their ageing membership profile to survive in the increasingly competitive market. Fewer people are physically coming into credit unions and more are phoning up or asking credit unions for a home page or e-mail address.

"The Internet is a young people's product and if credit unions don't have it they'll be considered out of touch," said Mr Shanahan.

The application's initial impact was expected to be small, as members tended to be conservative, but credit unions hoped to have approximately 20 per cent of its membership online by year two, he said.

If legislation allowing for the use of electronic signatures was passed, it would be a huge plus for the new system as it would allow membership and loan applications to be processed online.

Customers would not charged for use of the service but there would be an indirect operational cost that credit unions hope would be offset by increased income from new members, said Mr Shanahan.

Although cu@home is currently an online query function, it may eventually allow online transfers to bank accounts or between credit unions.

Premier has also developed a new informational management system, PremierDecision, allowing credit unions to operate more efficiently.