Two of biggest credit unions in Alberta complete merger
The transaction has been worked on for a long time — a memorandum of agreement was signed in early 2023 — but it is now official and the merger between connectfirst and Servus credit unions has been closed.
It follows approval from the Credit Union Deposit Guarantee Corp., more than 84 per cent of each credit union's membership and a certificate of amalgamation from the provincial finance minister.
The milestone progresses its path to becoming one of the largest credit unions in the country, offering a truly provincewide network of branches staffed by more than 3,000 dedicated employees.
Appointed president and CEO of the new entity is Ian Burns, who has served in those positions at Servus for the past three years. He was CEO of Alberta Central and Alberta Real Estate Association, and has board experience with several organizations including Interac, Prairie Payments Joint Venture, Everlink and the Canadian Credit Union Association.
He says the level of investment required to deliver modern, member-first services is significantly aided by the economies of scale for credit unions. By merging two of the largest credit unions in Alberta, connectfirst and Servus can pool its resources, share expertise and invest in the technology needed to effectively compete today and thrive in the future.
The merged credit unions will boast more than $34.4 billion in assets under administration, approximately 500,000 members and more than 140 branches in 80 Alberta communities.
Burns says all current locations will remain open and no layoffs are anticipated. And he was quick to confirm the new organization will continue with Servus's super appreciated Big Share contest, giving away $1 million to one lucky winner. The 2024 new millionaire member will be announced next month.
Kendra Holland, a great believer in financial co-operatives who has worked with credit unions for the past 25 years, has served in a chief merger role and as interim CEO at connectfirst. She says her Calgary staff are happy with the change.
“The transformational co-operative service will make it easier to help their clients — who are also owners through investment in common shares — with new systems and processes,” Holland said. “And together, as a stronger credit union, we will be able to better compete with the big banks and emerging fintech companies, provide more opportunities for our employees and greater job security, while most importantly help our communities, businesses and the province continue to thrive.”
Realizing the vision of a joint entity will take time and careful integration planning. Both credit unions will continue to operate largely as they have, day-to-day members will see no difference, except they will be able to access no-charge ATM services at any of the branches today.
“We look forward to quickly and efficiently integrating member-facing functions in the near future so that our members can enjoy all the benefits of the merger,” says Burns. “This is an opportunity to create the credit union of tomorrow, and fast track our ambitious plans to put even more heart and smart into what we do.”
The board of the new credit union will be populated by seven directors from Servus and five from connectfirst. They were previously elected by the respective memberships of both organizations and will continue to be elected by members in subsequent years.
Chair of the newly formed board is Perry Dooley, former chair of Servus, and vice-chair is Andrew Eberl, who was the board chair of connectfirst.
One of the board's first tasks, with the support of independent third-party advisers, will be to decide on a new name for the new organization.
NOTES
■ Local creative agency Flipp Advertising is celebrating its fifth anniversary by declaring a fourday week for its staff. Following a successful trial period, it found a significant reduction in burnout while boosting productivity and morale for its current team of 17 full-time employees.
■ We could be seeing offerings of more wines from South Africa, as 20 producers from some of the top estates will descend on this city June 5 for a Wines of South Africa trade wine tasting.