Sixteen Irish credit unions have joined with Fexco in a €10 million deal that is intended to support credit union sustainability and improve efficiency.
Under the deal, Metamo will undertake research and development of new financial products and services for credit unions, and establish a central shared services hub to improve delivery capability for credit unions.
Metamo is based in Kerry with offices in Dublin, headed up by chief executive Neil Hosty and is recruiting its senior management team.
The credit unions represent more than 480,000 members and combined assets of more than €3 billion. Among the members are DubCo, Mallow and Wexford Credit Union. The 16 investing credit unions will come together under the Meta CU entity.
The venture will initially focus on collaboration between Fexco and the credit unions to identify and develop products and solutions required by members, which will then be offered to other credit unions in the country who are not part of the joint venture.
The news was welcomed by Minister for Finance Paschal Donohoe.
“Credit unions hold a unique and special standing as one of the most trusted brands in the country. They continue to provide invaluable services to local communities promoting financial inclusion,” he said. “I am delighted to see collaboration within the sector that will support its continued viability and sustainability. Members of all credit unions stand to benefit from the enhanced products and services, more efficient operations and improved service delivery that Metamo will provide.”
“Metamo brings unprecedented scale to any previous sector initiative and signals a new and exciting development in the financial services industry. The company will deliver new income streams and improved processes for the investing credit unions and has the potential to transform the entire sector,” said Joe O’Toole, chairman of MetaCU.
“We identified Fexco as our partner based on their familiarity with the sector, having provided foreign exchange services to credit unions for over 20 years. In addition, we will benefit from Fexco’s technical expertise and commercial delivery focus. For Metamo, Fexco is a natural fit.”
He said the joint venture and investment was a significant vote of confidence in the future of these credit unions.
Denis McCarthy, chief executive of Fexco, noted the long-standing relationship between Fexco and the credit union sector in Ireland.
"Participating in Metamo allows Fexco to leverage two of our key strengths; strategic investment and new product development," he said. "Like the credit unions, Fexco understands the value of supporting local communities, indeed we remain loyal to Killorglin where the company was first founded, employing close to 1,000 staff there today."
