The first integrated computer system designed to link the entire Credit Union movement will "go live" on August 28th when Balbriggan Credit Union begins the first pilot of the controversial ISIS project. But, in an ironic twist, a £28 million (€36 million) cost overrun highlighted yesterday is likely to prompt a full-scale review of the project which could torpedo the implementation of ISIS altogether.
Opposition to the project has been gaining pace among more than 200 credit unions, which have yet to sign up to the ISIS system.
The issue will dominate an extraordinary general meeting of the Irish League of Credit Unions (ILCU) this weekend and could potentially split the entire movement.
Some 19 unions have so far registered support for the stand of Mr John Gallagher, president of Tullamore Credit Union, who has threatened to split from the league if the ISIS project impacts on his members.
They are concerned that an emergency fund - the Savings Protection Scheme - that all credit union members pay into, is being used to bankroll a project for which they have not signed up. There is also a fear they will end up subsidising a a project which has suffered two successive cost overruns.
Senior members of the Irish League of Credit Unions including president Mr Jim McMahon and secretary Mr Tony Smyth, yesterday played down the dispute.
And it is understood the leadership has agreed to propose a "root and branch" review of the project, which would effectively put off a final decision on the viability of the computer system until the end of the summer.
But there is no guarantee the 330 credit unions which have so far supported the project will remain on board. Some still owe £9.7 million of the money committed on behalf of their members at the start of the project.
Mr Smyth believes the viability of the project depends on holding on to these 330 credit unions and cutting back on the costs involved in the project.
He is a strong supporter of the ISIS and describes it as a vital asset for the 21st century.
"We've got to set out our stall and have a vision of the movement for the future," he said.
To scrap the ISIS system would be a bitter blow for the Irish League of Credit Unions, which nominates five members to the 10-member board of the subsidiary which manages the ISIS project.
Discussions about the viability of an integrated network have taken place for almost a decade and it is considered by many the best way to guarantee the future of the movement in an increasingly competitive environment.
The ISIS system will enable customers of credit unions to avail of ATM machines and offer customers a broader range of financial services, according to Mr Sean McCormack, treasurer of Balbriggan Credit Union. "Customers will now be able to have their salaries paid directly into their accounts and can for the first time have multiple accounts," he said. "It has been increasingly difficult to attract young people in recent years without being able to offer them a facility to operate ATMs."
Although Balbriggan will pilot the system next month, a decision to shelve the ISIS project would render useless its newly installed system, as it would be too expensive on a standalone basis.
However, opponents of the ISIS project can raise a series of financial question marks over the viability of the project at this weekend's emergency general meeting.
