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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 Aug-17 2 Canadian Co-operative Association Aug-17 3 Canadian Co-operative Association Aug-17 4 Canadian Co-operative Association Aug-17 5 Canadian Co-operative Association Aug-17 6 Canadian Co-operative Association Aug-17 7 History of Canadian Credit Unions • • • • • • 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 Canadian Co-operative Association Aug-17 8 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 Canadian Co-operative Association Aug-17 9 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 Canadian Co-operative Association Aug-17 11 Engaging Youth 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 Canadian Co-operative Association Aug-17 12 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 Canadian Co-operative Association Aug-17 13 500,000 + members More than $17.5 billion in assets 60 branches 2500 employees Canadian Co-operative Association Aug-17 14 Canadian Co-operative Association Aug-17 15 Vancity Governance • • • • • • 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% Canadian Co-operative Association Aug-17 16 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. Canadian Co-operative Association Aug-17 17 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 Canadian Co-operative Association Aug-17 18 Serving the Underserved • The movement was born to serve the underserved • Less Canadians are “underserved” today • “Underserved” could include: 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 Canadian Co-operative Association Aug-17 19 Examples: • Fair and Fast loan • Microfinance products • Permanent Residence Refugee Loan Canadian Co-operative Association Aug-17 20 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 Canadian Co-operative Association Aug-17 21 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 Canadian Co-operative Association Aug-17 22 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 Canadian Co-operative Association Aug-17 23 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 Canadian Co-operative Association Aug-17 24 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 Canadian Co-operative Association Aug-17 25 Vancity’s differentiation for impact: • • • • • • • • • 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 Canadian Co-operative Association Aug-17 27 Imbedding Values requires: • • • • • • • • 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 Canadian Co-operative Association Aug-17 28 Thank you! Canadian Co-operative Association Aug-17 29