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Demonstrating Values
The Canadian credit union system and how
co-operative principles and practices build
resilience, sustainability and growth.
Africa Credit Union Development Educator’s
Forum
February 2015
Canadian Co-operative Association
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Canadian Co-operative Association
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Canadian Co-operative Association
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Canadian Co-operative Association
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History of Canadian Credit Unions
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Began in Quebec in 1900 with Alphonse Desjardins
Spread to the Maritimes in the 1930’s
Credit unions established in the West in 1940’s
Provincial Credit Union Centrals established
Rapid growth in the 1950’s and 1960’s
Early versions of deposit guarantee funds were formed
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Consolidation in the system
• # Credit Unions reached its peak in the 1960’s
• In 1987 there were 1,497 Credit Unions in English
speaking Canada
• At the end of 2014 there were 315 Credit Unions
• The trend of mergers has slowed in the last decade
• Very few closed bond Credit Unions remain
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Canada’s
Co-operative
Banking
System
CANADA
10,123,467 Members
(29 % of pop.)
$324 billion
Results include non-Central
affiliated credit unions & caisses
populaires Q3 2014
QC
NL
4,433,286
members
(54% of pop.)
$146.4billion
54,186
members
(10 of pop.)
$1.1 billion
PEI
54,175
members
(37% of pop.)
$882 million
BC
AB
SK
1,893,310
635,689
488,875
members
members
members
(41% of pop.)
(15% of pop.) (43% of pop.)
Canadian
Co-operative
$61 billion
$22.7Association
billion
$19.3 billion
MB
ON
NB
603,159
members
(47% of pop.)
$23.76 billion
1,395,057
members
(10% of pop.)
$35.4 billion
69,358
members
(9% of pop.)
$.927 billion
NS
151,356
members
(16% of pop.)
Aug-17
$2.1 billion10
New Partnership Models
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Engaging Youth
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Youth Credit Unions
Youth Community Advisory Committee
Youth Online Forum
Young Free Alberta Campaign
https://www.youtube.com/watch?v=cawzTSVTP2M&feat
ure=player_detailpage
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Reciprocity
• Virtually all Credit Unions give back to their members and
communities in some form
• In 2012 = $35.6 million in donations and sponsorship
• 76% of Credit Union staff volunteered their time unpaid
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500,000 + members
More than $17.5 billion in assets
60 branches
2500 employees
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Vancity Governance
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Nine elected board positions
Currently 6 women, 3 men
Staggered three-year terms
Maximum of four consecutive terms
Fiduciary duty
BOD recommends five nominees to membership based on
skills
• Strategic, not operational
• Member participation rate – 5%
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Vision, Purpose and Mission
Vision: Redefining Wealth
Individuals can prosper only when they are surrounded by and
connected to a vibrant and healthy community.
Purpose
To help communities thrive and prosper by using financial tools in
innovative ways that make society better for more people, better
outcomes and greater sustainability.
Mission
To be a democratic, ethical and innovative provider of financial services
to our members. Through strong financial performance, we serve as a
catalyst for the self-reliance and economic well-being of our
membership.
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Three pillars of the business model
Vancity is building healthy communities
• Co-operative principles and practices are flourishing in the
community
• Environmental sustainability for our members’ lives and
communities is enhanced
• Social justice and financial inclusion are enhanced in our
members’ lives and communities
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Serving the Underserved
• The movement was born to serve the underserved
• Less Canadians are “underserved” today
• “Underserved” could include:
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People facing poverty
Refugees and new immigrants
Homeless
People living with a physical or mental disability
Aboriginal or Indigenous communities
People living in remote communities
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Examples:
• Fair and Fast loan
• Microfinance products
• Permanent Residence Refugee Loan
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Vancity “Firsts”
• 1946 - First financial institution to provide mortgages to
people living east of Cambie St
• 1961 – First financial institution to lend to women without
a male co-signer
• 1967 – Vancity introduces the first daily interest savings
account in Canada
• 1975 – Vancity pioneers GEAC 800 and in 1977 offers the
first universal access inter-branch banking capability in
Canada
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Vancity “Firsts”
• 1986 – Vancity offers Canada’s first socially responsible
mutual fund – The Ethical Growth Fund
• 1989 – Vancity Community Foundation established with
$1 million endowment from the credit union
• 1993 – Vancity offers Canada’s first Community
Investment Deposit
• 1996 – First Youth Credit Union established
• 2002 – first Canadian financial institution to market to the
LGBT community
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Vancity “Firsts”
• 2004 – Pigeon Park Savings established
• 2004 – Vancity awarded Maclean’s “Best Employer in
Canada”
• 2006 – Dr. Muhammad Yunus endorses Vancity's microcredit toolkit
• 2008 – Vancity achieves carbon neutrality
• 2010 – Vancity joins the Global Alliance for Banking On
Values
• 2011 – Vancity become the largest organization in Canada
to adopt Living Wage
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Vancity “Firsts”
• 2014 – First financial institution to offer an alternative to
payday lenders
• 2014 – Vancity releases its three-year strategic plan to the
public
• 2014 – Pope Francis invites Vancity’s CEO to the Vatican
• 2014 – Vancity’s CEO invited to participate in a panel
discussion with the Dalai Lama
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Vancity’s Shared Success
• 30% of profits shared with members and the community
• $18,300,000 in 2013
• $257,000,000 since 1994 • $148,000,000 through patronage and dividends
• $109,000,000 in grants to local community organizations
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Vancity’s differentiation for impact:
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Not CSR – values are imbedded into operations
Act as convenor and partner
Hands together approach
Commitment to investing into “impact”
Shared Success
Member empowerment through Financial Literacy - EOTO
Community Investment Team
Orientation Immersion
Employee Engagement
•Canadian Co-
•Aug-17 •2
Video
• https://www.youtube.com/watch?v=3OF_N72l15k
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Imbedding Values requires:
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Strategic, long-term vision
Commitment to values
Starts at the top
All stakeholders (external and internal)
Operationalize and execute
Walk the talk - alignment
Transparency, authenticity, advocacy
Ongoing member dialogue and engagement
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Thank you!
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