"Better together" is the catch phrase appearing on the letterhead of a press release that came across the fax and the e-mail this week.
That is the conclusion of the boards of three Saskatchewan credit unions - Conexus, Innovation and Synergy. The boards have announced they will go ahead with a consultation process prior to a vote for amalgamation scheduled for January.
The release indicates the new entity, should it be approved by members, will have over $6 billion in assets serving 194,000 members from 84 credit union branches, 11 insurance offices, six real estate offices and six mortgage brokerage offices across Saskatchewan.
That's a whack of territory, geographically and financially.
The founders of the co-operative movement are either gaping in admiration or gasping with distress at this latest move toward mega-CU status.
It is astounding to see an entity that emerged from the hardship of the Dirty Thirties grow to rival the chartered banks for status on the financial scene. One of the cornerstones of the co-operative movement, in the case of credit unions, was member control of how pooled resources were invested and protected. Credit union founders had experienced first hand what can happen if they entrusted a bank with their hard earned cash. The credit unions grew in answer to the financial collapse of the Great Depression when future credit union members were looking for a safe place where their money could be pooled to promote financial security and prosperity among its members.
Of course, the new mega-CU will be governed by Credit Union Act of 1988. The act requires credit unions to provide financial and other services, operate on co-operative principles; must use "credit union" or "caisse populaire" in their name; are responsible for the prudent management of their business, including compliance with legislation and standards of sound business practice; and are governed by locally elected boards of directors.
"Locally" in that final statement, takes on a whole new meaning in the mega-CU world. What will be the definition of "local" in an entity that spreads itself from Buffalo Narrows to Climax and Lloydminster to Benito, Man. and almost all points in between?
It's a brave new world for credit union members. Let's hope their trust in an entity created during times of hardship won't be crushed as was the trust put in the former Saskatchewan Wheat Pool.
