Credit unions remain trusted source for customers
Over the past 15 years, credit unions have consistently been rated as the top financial institutions for customer service in a Canadawide Ipsos® Reid poll.
“Credit unions really pride themselves in the relationship they have with their members and customers; the core of why they exist is for serving members and this recognition is something to really be celebrated and proud of,” said Keith Nixon, CEO of Saskcentral, a co-operative owned by Saskatchewan credit unions to serve and represent their collective interests.
In Saskatchewan, more than 481,000 people are members and an additional 84,000 non-members do business with a credit union, which combined equals just over 48 per cent of the provincial population. Nixon said there are numerous factors as to why credit unions are the financial institutions of choice for both urban and rural residents, such as the strong presence of credit unions: in Saskatchewan, there are 40 credit unions in the province that service 211 communities out of 238 service outlets.
“Credit unions really operate in all forms of size and all corners of the province,” Nixon said. “They continue to focus on member satisfaction, engagement of membership and pride in communities.”
Nixon said that another reason for people’s trust in credit unions is the financial co-operative model of credit unions. Unlike other financial institutions that are publicly traded corporations, credit unions are financial co-operatives that are owned by members who can vote at annual meetings and participate in electing directors.
“Many credit unions have member-focus groups where they will engage with their members in terms of services and how to keep them engaged in the co-op,” Nixon said. “That’s different than the size and structure of the chartered banks in Canada.”
Seeking out new innovation, Nixon noted, has also been a key for credit unions when it comes to serving customers better. He said that credit unions continue to make outstanding advances in areas such as online home banking, mobile banking and paying options like Apple Pay and Samsung Pay.
“Two of our credit unions launched Canada’s first authenticated voice banking service,” Nixon said. “They’re using the Amazon Alexa technology to allow members to do their online banking using voice interaction. They can do things like making payments or money orders and transferring accounts, so it’s another way that credit unions are understanding the needs and expectations of their members.”
Nixon said that customers also appreciate the impact that credit unions make to the provincial economy. Saskatchewan credit unions grew system assets by 6.0 per cent to $23.8 billion in 2018, exceeding the five year average of 5.5 per cent. Combined, credit unions in the province returned over $10.3 million to their members in the form of patronage equity, contributions and dividends.
“We estimate that credit unions contribute $600 million annually to the Saskatchewan economy,” Nixon said. “That’s everything from lending to people that generate economic activity, to credit unions’ own participation in provincial taxes, to contributing donations to communities, to creating employment.”
International Credit Union day takes place on Oct. 17. Credit unions throughout Saskatchewan, as well as Saskcentral, will be hosting celebratory events with their staff and members.
“We all work hard through the year and we all strive for success, but it’s important to step back and pause and celebrate every once in a while and it gives us an opportunity to tell our story and really take some pride in successes that we’ve had,” Nixon said. “It’s one thing to be ranked and see the publication of number one in customer service, but it’s important to recognize that and build moral among our people, staff and members around how important that really is.”
Nixon said the primary goal of Saskcentral is connecting credit unions to national networks, and the clearing and settlement of transactions. Moving forward, he said Saskcentral is focused on the challenges and opportunities presented by new innovations and technology.
“Canada is working through a very extensive and complex initiative to modernize the payments infrastructure for Canadians,” Nixon said. “That will impact all financial transactions. We are focused on bringing payments innovations to credit union members that all Canadians would enjoy and expect.”