Credit Union Day: The modest beginnings of Kilkenny's St Canice's Credit Union, a story from 50 years ago

The credit union movement in Ireland began in the 1950s as a grassroots response to widespread poverty and financial exclusion. At the time, many people had limited access to banking services, making it difficult to save money or obtain affordable loans. Inspired by the cooperative model of credit unions in North America, a group of pioneers; Nora Herlihy, Seán Forde, and Séamus MacEoin (a Kilkennyman) sought to establish community-based financial institutions that would be owned and controlled by their members.

In 1958, the first credit union in Ireland was opened in Donore, Dublin. Little did the founders realise at the time the significance of what they were creating and the impact it would have on the lives of so many people in local communities throughout the island of Ireland.

The movement rapidly grew as communities across the country recognised the value of pooling their resources to provide fair financial services. Over the decades, Irish credit unions have become a vital part of the financial landscape, continuing to serve their members with a strong emphasis on ethical practices and community development.
the beginning

It was not until 1963 that the idea of a credit union for Kilkenny was born in the minds of a few parishioners from St Canice’s parish. At the first meeting Walter Cullen was elected spokesman. A second meeting was held on a Sunday morning in early December, when the group decided to start a study group and savings club. The first collection raised £9. Despite the challenge of introducing the concept of a credit union to the community, the group began inviting people to join and save.

At that stage no loans could be granted until membership with the Credit Union League of Ireland was secured and a common bond declared. Additionally, the lack of money presented another hurdle - it was decided to ask Dean Lowry, the parish priest, for a loan of £100. He joined the credit union and lodged £100 in shares. Each director then took a £5 loan and the interest from these loans provided the first working capital.

This modest beginning laid the foundation for what would become a thriving institution. Week by week, more members joined, and by January 1965 the first Annual General Meeting was held, marking a significant milestone.
Initially the common bond was limited to the parish of St Canice’s. However, it was later expanded to include all four parishes of Kilkenny City, allowing anyone living or working in the city to open an account. Also, each director actively recruited new members from their workplaces and their efforts had a significant impact, and the credit union began to steadily grow.

The first office was located in St Vincent de Paul House at Butts Green, a building that had previously served as King’s public house. The bar counter was used for collecting money, while a small room off the bar became the credit committee room. The entire house was provided free of charge by the Vincent de Paul committee, without which the credit union might not have been able to get started.

At the end of 1964 the credit union had 113 members with savings of £1,732, loans of £1,957 to members and was run completely by voluntary efforts.

Relocate
After more than four years in St Vincent de Paul House the decision was made to relocate as the credit union was expanding and the space was becoming too small. The question was where should the new location be? A meeting was held to decide, with some members advocating to stay within St Canice’s parish, while others supported moving downtown. A vote was taken and, by a margin of just one vote, the decision was made to move.

The search for a new building began, and after looking at a number of options, the premises known as The Gem, 67 High Street was put on the market. The Board spent many nights debating whether to buy or not. Though the property was small, its prime location on the High Street made it a good buy.

To finance the purchase, a building fund was set up, which raised part of the money and the remaining amount was secured with a bank loan. However, not alone did the Board take the courageous decision to buy, it also went further by appointing a full-time manager, Paddy Kennedy.

In 1970, the credit union was awarded the Credit Union Cup for being the most progressive credit union in Ireland in 1969 - a significant achievement.
The following year, in 1971, the Board made the decision to extend the office and to provide soundproof cubicles so members would have greater privacy when applying for loans. St Canice’s Credit Union also made history by introducing the student Scholarship Scheme, becoming the first credit union in Ireland to set up such a scheme. That same year, on February 15, it successfully transitioned to decimal currency and introduced a new accounting system.

In 1972, the credit union welcomed its 4,000th member, six-year-old Karen Hehir, who was presented with a giant panda to mark the occasion. The scholarship scheme was also expanded that year, doubling the number of scholarships and introducing additional draws for book tokens. Additionally, Gus Murray was elected to the Board of the Irish League of Credit Unions, a success largely attributed to his outstanding work as treasurer of St Canice’s Credit Union.
In 1973, Gus Murray was elected Vice-President of the Irish League of Credit Unions. That same year, the credit union reached another milestone, issuing its one millionth pound in loans. Additionally, 1973 will be remembered in credit union history as the ‘nine month year’ as the financial year ended on September 30 instead of December 31.

Half million shares
In 1974, St Canice’s Credit Union celebrated its 10th anniversary. During this milestone year, members’ shares reached the half-million mark. To handle the growing number of transactions, a new accounting machine was purchased, and essential records were microfilmed to save valuable space and improve security. To commemorate the occasion, a dinner dance was held at the Rose Hill Hotel, attended by the mayor and his wife. There were five staff members working in the credit union - Paddy Kennedy (manager), Josephine O’Brien, Lilian Power, Frances Keane and Berna Walsh.