Understanding business models in the context of Irish credit union transformation

Money, N, McCarthy, O, Jones, PA and Byrne, N (2023) Understanding business models in the context of Irish credit union transformation. Journal of Co-operative Studies, 56 (2). pp. 23-34. ISSN 0961-5784

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Abstract

Credit unions in the Republic of Ireland (Ireland) are important community institutions. Over the last decade, however, Irish regulators and government have commented on a strategically critical financial problem for the sector and called for a change to the ‘business model’, but there is no statement of what this business model means. This paper understands a business model as the way an organisation creates and delivers value for its customers and itself, so whether articulated or not, it is plainly vital to organisational success. This paper reviews credit union financial performance, engages with the literature on business models, conceptually and as applied to banking, co-operatives and credit unions. It then considers how it could support the transformation needed for the sector’s successful development. The paper connects the credit unions’ enduring financial performance problem with the problem of value creation for their members, concluding that there are business model frameworks that could help credit unions restate their proposition, while incorporating their social purpose. However, there is no consensus among academics or practitioners about what the Irish credit union business model is and therefore what should change. A further knowledge gap is identified in relation to credit unions’ own perspectives on the relevance of business models and change.

Item Type:	Article
Uncontrolled Keywords:	1503 Business and Management
Subjects:	H Social Sciences > HF Commerce > HF5001 Business R Medicine > RA Public aspects of medicine > RA0421 Public health. Hygiene. Preventive Medicine
Divisions:	Nursing and Advanced Practice Public and Allied Health
Publisher:	UK Society for Co-operative Studies
Date of acceptance:	10 October 2023
Date of first compliant Open Access:	3 July 2024
Date Deposited:	03 Jul 2024 12:43
Last Modified:	03 Jul 2024 12:43
DOI or ID number:	10.61869/fhfm1239
URI:	https://ljmu-9.eprints-hosting.org/id/eprint/23690

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