The credit union was incorporated in 1960, back at the peak of credit unions in Canada, when they numbered around 3,200.Īt the time, many credit unions were closely linked to employers or ethnic groups, but as that closed system largely wound down, institutions like the Peek Frean Employees’ Credit Union and the Latvian Credit Union have been folded into larger unions over time. “For the sake of their members, they’re being more aggressive in those decisions and saying, you know, we want to pick our dance partner now.”ĭemographic trends and rising competition also mean some of the credit unions being absorbed are quite small.Īmaranth Credit Union, which will complete its technical merger with Access in June, had 1,200 members and $18 million in assets when the deal was struck. The pressures have helped drive six credit unions to merge with Winnipeg-based Access Credit Union in the past two years or so.Īccess chief executive Larry Davey said consolidation started to pick up with the advent of smartphones, but has increased pace as credit unions look ahead and make tough decisions on whether they have the resources to adapt and survive. “It is a scale business, where you need scale to make investments in future technologies.”
The increasing technology demands of customers, whether it’s improved smartphone apps or faster money transfers, combined with rising regulatory expectations, have helped drive increased consolidation, he said. “Over the pandemic, we’ve seen a massive shift in use of digital technology, mobile technology, not just for younger people, but through all demographics,” said Jeff Guthrie, chief executive of the Canadian Credit Union Association. While credit union numbers have been on the decline since the 1960s, insiders say rising technology demands, which ramped up during the pandemic, have led to a spike in the trend. The two credit unions are part of a growing number that have been bought, merged or shut down over the years as a combination of pressures push increasing consolidation in the sector. TORONTO - From the Tobacco Workers’ Credit Union in Guelph to the New Community Credit Union in Saskatoon, the names tell part of Canada’s history even as they’re now history themselves.
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