Metamo, a joint venture between 16 credit unions and financial services company Fexco, is about to launch a new service to help credit unions automate their personal loan decisions.
lan Kelly, CEO of Metamo, and Ciara Prendeville, director of human resources, said its personal loan automation system is currently being tested. It is expected to go live in credit unions in the coming weeks.
Metamo said the new service would facilitate faster and more efficient judgments, ensure consistency in decision outcomes, and enable higher productivity and business growth.
Prendeville said the system would transform the loan decision-making process for credit unions. However, the system would retain the “human element”, as the referral would come back to the credit union for a final decision.
“Right now, the loan process is a manual process, and it can be very laborious,” she said.
“Getting a loan decision within minutes would allow credit unions to compete in the financial services marketplace and free people to spend more time with their members.”
Prendeville said Metamo’s HR services have also proven popular with credit unions. It currently has 20 credit unions engaged with it in HR, with combined assets of €3.7 billion and a combined workforce of over 950 employees.
Kelly said he hopes Metamo member credit unions and non-members alike will use the automation system.
According to Kelly, Metamo was about to partner with a general insurance product, including car, home, travel and pets, with an unnamed market-leading provider. He plans to pilot this in September.
Looking ahead, Kelly said credit unions would not be immune to the economic challenges hitting businesses across Ireland.
However, he added that rising interest rates could help the sector.
“Credit unions are awash with funds and they have fought valiantly to deal with negative interest rates,” he said. “The fact that the situation has eased somewhat is helpful.”
Established in 2019, Metamo aims to help credit unions grow through providing a wider range of member services, better risk management and providing improved technology.