MEMBERS OF THREE OF NOVA Scotia’s four largest credit unions (CUs) are voting in October to give the green light to consolidation plans. If the merger takes place as expected, by Jan. 1, 2016, the newly formed East Coast Credit Union Ltd. will become the largest credit union in Atlantic Canada.

This is not a last ditch effort to save ailing financial institutions; the reverse is true, says Ken Shea, president and CEO of the existing East Coast Credit Union in Dartmouth, N.S.: “We are three strong organizations that have been successful in our own right.”

There is, however, greater strength in numbers. The proposed new CU – a three-way merger of the Antigonish, N.S.-based Bergengren Credit Union, the Sydney Credit Union, based in Cape Breton, and the East Coast Credit Union – will have 56,000 members, 23 branches and 33 ATMs.

“It’s all about member value. The member access will be significant,” says Dan Hodgins, CEO of the Bergengren Credit Union, which has three branches in northern Nova Scotia.

In addition to greater physical access, the merger will enable the newly formed CU, which will have 280 employees and $800 million in assets under administration, to be more competitive and better meet customer demands.

“Competition is very, very tight,” says Hodgins. “We have to be right up there with the major banks. Our hope is that we will be able to provide greater expertise while providing that personal touch.”

Bergengren CU’s branches are filling more of a “service centre” role, as 80% of its transactions are electronic. That shift to online banking is true for financial services institutions generally, and the proposed CU merger is intended to expand electronic accessibility and related services for members. Plans also are in the works to establish a customer-service centre that eventually will be open 24/7.

“In order for us to be there when our members want us to be there, we need to be more nimble,” says Bob Coffin, CEO of the Sydney CU. “Customer expectations are increasing. They want more services and better prices. Instead of having the capital resources of one credit union, we will have the resources of three.”

What the three CUs do not want to do is lose their personal connection with members, a connection that is the hallmark of the co-operative movement.

“We have to maintain our local identity,” says Hodgins, who notes, “We’re very much a part of our community. We do not see members losing that.”

Coffin points out that from a member perspective, the “look” of their CU will not change. The three organizations will keep their own names on all signage and other visual identity materials. “A branch of the East Coast Credit Union” will appear in smaller type under the CU’s name on their signs.

The boards of directors for all three CUs have voted unanimously to proceed with the merger. The next step is the memberships’ votes, which will take place on Oct. 21. Those votes are expected to be strongly in favour of the merger.

“To date, we haven’t heard a negative comment,” Coffin says.

Once the member votes are taken, the Office of the Superintendent of Credit Unions must approve the merger. Then, the CUs legally can join forces. The full transition will take up to two years. The new CU will have equal representation from the three current boards of directors.

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