Now that we know more about Ireland’s main financial service providers, we can compare the advantages and disadvantages of using them. Advantages
Disadvantages
Commercial banks
• Offer the greatest range of financial services
• Offer online banking
• Have extended opening hours to suit customer needs (e.g. some branches open on a Saturday)
• There is a lot of competition in banking, which encourages banks to offer better deals to consumers
Credit unions • Often have flexible opening hours and are conveniently located around the country
• Interest rates on loans are lower than in other financial institutions, as the money is coming from members
• Volunteer employees keep costs down An Post
• Savings are state guaranteed as State Savings products
• Business can be conducted through any post office
• Offers a broad range of services (e.g. buying TV licences and paying Garda fines)
• Customers can conduct business online A Financial service providers
In groups, go to page 55 of your Activities and Accounts Book to research and design a leaflet for a financial service provider.
REGULATION OF FINANCIAL SERVICE PROVIDERS
The Central Bank of Ireland is responsible for looking after the interests of financial service consumers in Ireland. The role of the Central Bank of Ireland is:
• To promote stability in the country’s finances. • To regulate financial service providers.
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• There is a limited range of banking services for customers
• Interest rates on loans are generally higher than those offered by credit unions
• Often add on charges and fees for transactions
• There has been an increase in information requests and checks needed before a customer can borrow funds
• Technology plays a central role in modern banking, so banks are less community focused than they once were and many smaller branches have closed
• Do not offer the same range of financial services as commercial banks
• The amount a member can borrow is often linked to the amount they have saved
• Smaller credit unions do not generally have long opening hours and may not have online facilities
