Vancity and First Credit Union have announced a potential merger that would boost local community banking in British Columbia.
The combination would also improve member access to financial services in the North Sunshine Coast, Vancouver Island, and Bowen, Texada and Hornby Islands. The credit unions will release information about the proposed merger to their members; Vancity members will not be required to vote on the deal in line with relevant legislation.
First Credit Union members will vote in the final approval stage. The BC Financial Services Authority will collaborate with the credit unions to facilitate compliance with all regulatory requirements.
If approved, First Credit Union-served communities will retain access to banking services.
“Credit unions are more than financial institutions; they power local economic development and return a ton of value back to the community,” said Wellington Holbrook, Vancity president and CEO, in a statement.
The merger will grant First Credit Union members access to a wider branch network and Vancity’s financial products and services. According to Vancity, credit unions are considering mergers to upscale, given the increasing competition, operating costs, and the necessity for sustainable, organic growth.
Vancity and First Credit Union see the merger as the launching pad for an innovative cooperative, community banking model that can expand to improve community-centred services in BC, address members’ needs, improve local economic resilience, sustain community identity and local autonomy, and positively impact society.
“By creating this opportunity together, we have the chance to preserve and grow local community banking. And we’re showing how we can develop a sustainable, resilient and scalable co-operative banking alternative for British Columbia,” Holbrook said.
First Credit Union serves the traditional territories of the Coast Salish Peoples, specifically the K’òmoks, Klahoose, Tla’amin and Squamish Nations. It also caters to Courtenay, Cumberland, Powell River, Union Bay, Bowser, and Bowen, Hornby, and Texada Islands communities.
Vancity serves the communities in Metro Vancouver, the Fraser Valley, Victoria, Squamish and Alert Bay, within the territories of the Coast Salish and Kwakwaka'wakw people.