Squamish Credit Union members voted overwhelmingly to merge with Vancity Credit Union during a special meeting last Thursday (Nov. 3).
The impact of the decision may very well go unnoticed by many members because of the unique quality of the merger, which allows Squamish Credit Union to retain its name, governance and staff.
It was this component of the deal that led to Squamish's willingness to support it, according to Squamish Credit Union general manager Bill Brumpton.
"It's important because we, the management and staff, know the community," said Brumpton. "Usually in a traditional merger most of the senior management changes and they bring in new management from outside of town, they don't know the community of people."
More than 86 percent of the 393 members at the meeting voted in support of the merger. "It was a really good turnout a good representation of our community," said Brumpton.
Although some dissenting opinions did arise among members, Brumpton said that he has no concerns about Vancity's integrity.
"Obviously since it's never been done before we don't know for sure that it's going to work exactly the way we planned it," he said. "But given the good will that Vancity has, we know that we can work together to make it work."
The partnership is also a good deal for Vancity who will use this one-of-a-kind pairing to attract other small credit unions in the province.
"That's another reason why we know it's going to be successful here," said Brumpton. "Because they don't want any problems with us that would be a negative for them presenting to another credit union."
Vancity CEO Dave Mowat said he is "thrilled" to be linked with Squamish's 60-plus years of expertise and history in the community.
"Partnering with Squamish allows us to grow into a market that is poised for explosive growth over the coming years, " he said.
Squamish will operate as an independent business unit within Vancity in the move that is expected to be the catalyst for substantial growth. Squamish members will have dual membership, with all the privileges of Vancity members and a special say in decisions affecting the Squamish operation. By late spring 2006, Squamish members will be able to bank at any Vancity branch, while Vancity members will have access to similar service in Squamish.
"We will have access to Vancity's funding," said Brumpton. "We have a maximum limit of total credit to any member of $800,000 so that limit has just climbed, starting Jan. 1, so the limit will be virtually unlimited."
Vancity is Canada's largest credit union, with $10.5 billion in assets, more than 315,000 members, and 47 branches throughout Greater Vancouver, the Fraser Valley and Victoria. Vancity also owns the Citizens Bank of Canada, serving members across the country by telephone, ATM, and the Internet.
[email protected]
