Dear Editor
In response to recent letters to the editor, SaskCentral would like to contribute the Saskatchewan credit union perspective.
Credit unions make significant contributions to the Saskatchewan economy and to the communities they serve. Credit union profits are used for a number of purposes aimed at improving the lives of credit union members and their local communities. This takes the form of a wider range of financial services, including online and mobile banking, reduced service fees and significant support for local and charitable organizations. In 2014 Saskatchewan credit unions:
• Contributed more than $7.4 million to communities;
• Had more than $15 billion dollars out on loan to Saskatchewan residents and businesses;
• Employed almost 3,500 people; and
• Provided more than 43,000 employee hours of volunteer time for community organizations.
The more successful credit unions are, the more the members and the communities of Saskatchewan benefit.
Credit unions, like any business, must evolve in order to continue to meet the needs of their members. That means investing in delivery channels that are expected by their members and allow them to compete with other financial institutions. Increasingly, members prefer to use mobile, Internet and telephone banking for their basic transaction needs. Like most Canadians, credit union members are attracted by much greater flexibility in today’s mobile and connected world. All financial institutions, including credit unions, have seen a steady decline in branch and ATM usage and a steady rise in online banking, debit and credit card payments. There has also been a dramatic increase in mobile banking and electronic fund transfers. These trends result in members using less cash and fewer cheques and thereby fewer in-branch transactions.
In order to remain profitable while making investments in future relevance, credit unions have a responsibility to their members to ensure they are making sound business decisions.
In Saskatchewan the top five credit unions combined are only 1/35 of the size of the average of the big five banks. A provincial tax increase would negatively affect 94 per cent of credit unions in Saskatchewan, at a time when credit unions are already absorbing an increase in federal tax. The provincial tax deduction was designed to help credit unions accumulate capital and grow. The result has been stronger credit unions supporting small businesses and creating jobs.
Nationally, in 2015, credit unions were again acknowledged through the highly-coveted Ipsos Best Banking Awards – First for Customer Service Excellence (11th consecutive year) and winner for Products and Services Excellence, Financial Planning and Advice, ATM Banking Excellence, Online Banking Excellence, Live Agent Telephone Banking Excellence and Automated Telephone Banking Excellence.
In recent provincial market research, 69 per cent of people who primarily bank at a credit union are likely to recommend their financial institution to their friend or family. This is higher than any of the top five banks in Saskatchewan.
Credit unions are an important part of the Saskatchewan economy and have made significant contributions while serving their members.
Keith Nixon, CEO, SaskCentral
On behalf Saskatchewan Credit Unions
