Helping Ireland’s teachers navigate financial challenges and develop good saving habits

Occupation: CEO, Teachers’ Union of Ireland Credit Union (TUICU)

Background: Established in 1967, it is a non-profit financial cooperative, owned and controlled by members to serve the financial needs of the Teachers’ Union of Ireland (TUI).

Credit unions have claimed the top spot in the Ireland RepTrak Sustainability Index 2024. The index, now in its 13th year, tracks the perceptions of 5,500 members on 100 prominent organisations and measures 16 sustainability factors across environmental impact, social performance, workplace and conduct. 

Credit unions topped the index with a score of 77, featuring in first place in seven of the 16 sustainability factors, including having a positive influence on society, being fair in how they do business, being transparent, ethical and making a positive economic contribution to society. 

Teachers’ Union of Ireland Credit Union CEO Paul Roche said: “Sustainability is at the very heart of what we do and we believe it is vital in driving long-term success of our credit union.“ 

Alleviating financial pressures for educators is an ongoing issue, particularly for trainees and early-career teachers who may face financial challenges. 

“Financial challenges are particularly pronounced for early-career teachers, especially considering the precarious contracts newly qualified teachers can commence on which I know the TUI union has been arguing against. 

At TUICU, we aim to raise awareness of this and to encourage people to be proactive and start planning ahead. Young teachers, like many young professionals, can struggle to balance their living expenses, so we encourage members to embark on a healthy financial management path from the get-go.

The key is to budget throughout the year, he explains, putting aside small amounts from each pay cheque. “In our experience, people are best saving directly from their salary through payroll deduction facility so they don’t feel the impact on their pocket as much.” 

As pay scales increase, members can adjust their savings accordingly. “Starting small and building up gradually makes a huge difference, especially when navigating the initial financial challenges of a teaching career.”

Scholarship programme

The TUICU supports trainee teachers through its annual scholarship programme, offering five scholarships of €2,000 each. One is specifically designated for students pursuing a professional master of education in post-primary teaching. 

“We receive great feedback from recipients who share how this financial support significantly eases the burden of education costs.” 

Looking ahead, it is hoped to extend these scholarships further, potentially in collaboration with educational institutions and the Government, to ensure more trainee teachers can benefit. 

“Supporting future educators is vital, and we believe that fostering these partnerships is the way forward.” 

Embracing a digital-first approach, the TUICU movement is working towards enhancing online and mobile services, in addition to further investment in services like Open Banking and Sepa. 

“TUICU serves members across the entire island of Ireland, which makes face-to-face interaction a challenge. This is why we have embraced a streamlined digital-first platform, allowing members to complete everything from membership applications to loan processing online.” 

Recognising that teaching schedules can be demanding, and where in-person services are not always practical, investment in technology offers a more convenient experience. 

“Open Banking and Sepa Instant, for example, are services that will further support our members by providing faster, more efficient financial management tools.” 

While prioritising digital services, it remains committed to maintaining a personal touch when needed: “The credit union movement’s commitment to innovation is reflected in TUICU, ensuring we meet the evolving needs of educators in a fast-paced digital world.”

Expanding product offerings

New legislation introduced in early 2024 which allows credit unions to expand their product offerings will be “a game-changer”, Mr Roche believes. 

“The legislation is a game-changer for credit unions and has allowed us to expand beyond traditional savings and loans, enabling us to launch a range of new services. At TUICU, we introduced our current account facility in July 2022, followed by term deposit accounts later that year. 

These new offerings are helping us diversify our services to meet the everyday needs of our members, from routine financial transactions to savings for major life events. 

“We are excited about the opportunities ahead, particularly as this new legislation opens up even more possibilities for us to enhance our product suite and better serve our community,” he added. 

The Department of Finance’s 2022 Retail Banking Report positions credit unions to play a bigger role in financial services, especially with the exit of Ulster Bank and KBC from the market. 

“The Retail Banking Report clearly highlights the opportunity for credit unions, like TUICU, to step up as major players in financial services.” 

With the exit of KBC and Ulster Bank and the widespread closure of bank branches, he points to many communities being left underserved by traditional financial institutions. 

Credit unions, with their strong community presence and trusted brand, are in a prime position to fill that gap. We have always placed our members first, offering personalised services that are hard to find in larger, profit-driven institutions.

He added the report underscored the role credit unions could play, not only in consumer credit but also in providing mortgages, current accounts, and services to small businesses. “I have no doubt that credit unions will take on an even greater role in Ireland’s financial landscape in the coming years.”

Mr Roche points to the success of TUICU in achieving the highest loans-to-assets ratio in the CU movement, surpassing €60m in savings and over €50m in loans. 

“TUICU’s recent financial performance has been incredibly strong, with savings surpassing €60m and loans exceeding €52m. Our loans-to-assets ratio is the highest in the credit union movement, which is a testament to the hard work of our team and the trust our members place in us.” 

More than 90% of its membership and loan applications now come through the online platform, which has made its services even more accessible. 

“Offering competitive loan rates has been a key factor in attracting more members, especially as traditional banks withdraw from the market. We have also benefited from the increased trust in credit unions, particularly as we’ve consistently topped the CX league table for the best customer experience in Ireland for a decade. This bond with our members is what truly sets us apart and drives our success.”