Conexus, Cornerstone, Synergy, and Innovation to collaborate

REGINA — Four Saskatchewan credit unions — three of which attempted unsuccessfully to merge four years ago — have agreed to work together to improve products and services for members, career opportunities for employees and operating efficiencies for themselves, while retaining their individual brands and local autonomy.

In late October, the directors of Conexus, Cornerstone, Innovation and Synergy credit unions signed a collaboration agreement among the four organizations that have combined assets of $10 billion and 250,000 members.

Eric Dillon, CEO of Conexus Credit Union, said all four credit unions have worked together in the past, particularly Conexus, Synergy and Innovation, which came close to merging in 2010, but failed to get the required 75 per cent support from all of the credit unions’ voting members.

“The merger process allowed three of the four credit unions to get to know each other quite well,’’ said Dillon, who took over as CEO of Conexus in 2011.

“What we found was ... there are things that we’re all doing behind the scenes for members that we could do collectively to save money ... It makes a ton of sense for us to work together to build those new and emerging delivery channels that our members are asking for.’’

Dillon said credit unions are relatively small players in the financial services sector and need to work together to make the investments in technology required to provide the products and services members want. “What the collaboration allows us to do is to be a lot more specific and focused about the areas ... that add value to our member-owners.’’

Regina-based Conexus is Saskatchewan’s largest and Canada’s sixth-largest credit union, with $6.04 billion in assets, 116,000 members and more than 900 employees in over 50 locations throughout the province.

Innovation CEO Dan Johnson said collaboration allows credit unions to serve their members better and at lower cost than they could individually. “We believe this unique agreement will enhance the member experience in ways we couldn’t achieve on our own.” Innovation Credit Union is the province’s third-largest credit with branches and 48,000 members throughout southwest and north-central Saskatchewan.

The collaboration will also result in improved organizational efficiencies, said Kevin Lukey, CEO of Cornerstone Credit Union. “We can achieve economies of scale, presence, growth, and still maintain our local brands and community relationships,” Lukey said. Cornerstone is the fifthlargest credit union in the province, serving 25,000 members with branches in 13 communities located throughout east- central Saskatchewan.

Other credit unions are welcome to join the collaborative group in the future, added Synergy Credit Union CEO Glenn Stang. “Collaboration means convenience for our members and an enhanced capacity to serve all of our communities.”

Synergy is the province’s fourth-largest credit union, with more than 28,000 members in 11 communities in west-central Saskatchewan.