Meridian credit union has been busy integrating products and branch networks with Desjardins Credit Union after the merger of the two companies was completed in June. The amalgamation is the first step in St. Catharines, Ont.-based Meridian’s expansion strategy, which aims to increase its presence in Ontario.

Meridian intends to make the most out of the “wealth of opportunity” in Ontario, says Meridian president and CEO Sean Jackson: “More than half the population of Manitoba, Saskatchewan and Quebec have credit union accounts, while, in Ontario, credit unions have approximately 12% of the market.”

That’s something Meridian is hoping to change. By joining with Desjardins CU, Meridian is intending to offer more competitive pricing on products.

“The integration process is off to a great start,” says Jackson. “In less than two months, we have been able to align our pricing on similar products and terms, such as our one- to five-year [guaranteed investment certificates]. We also have successfully aligned our pricing on fixed- and variable-term mortgages.

“Just recently,” he adds, “we introduced our MasterCard offering to former Desjardins Credit Union members, and the response has been very positive.”

Meridian is reviewing the rest of Desjardins’ suite of products for similar integration. Other plans involve putting Meridian’s name on the 19 former Desjardins’ branches’ exterior signage by the end of the summer.

The wheels for the merger were first put in motion when Desjardins CU approached Meridian in October 2010 with an offer to merge. “We were looking to improve services and improve accessibility to our members, and the best outcome was to arrive here,” says Desjardins CU’s former president and CEO, Lionel Gauvin, who is serving as an unofficial consultant to Meridian during the integration. “We identified the best fit [was] with Meridian.”

Meridian, in turn, saw a valuable proposition on the table, Jackson says: “For Meridian members, the benefits of merging provides a significant expansion to our branch network.”

That said, Meridian was no slouch prior to the merger. It has been the largest financial services co-operative in Ontario since its inception in 2005, when Hepcoe Credit Union Ltd. acquired Niagara Credit Union; Jackson was president of the latter prior to that transaction. The merged entity was named Meridian.

That history was another reason behind Desjardins CU’s decision to approach Meridian, says Gauvin: “They have already made some amalgamations before [which were a] success. When you try to find a partner, you must have a long-term vision and they must also have the capacity to make the amalgamation.”

The merger with Desjardins CU adds $1.4 billion in assets under management and more than 46,000 new clients for Meridian, catapulting its membership base to 263,000 and AUM to $8 billion.@page_break@As for Desjardins CU, its members now have access to 44 more branches and eight commercial business centres. Once the full banking-system conversion is complete — Jackson anticipates this by April 2012 — former Desjardins CU members will be able to use the no-fee Exchange Network of 2,400 ATM machines across Canada.

“It was a request from the members for a long time,” says Gauvin, referring to access to the ATM network.

It’s no surprise, then, when the proposed amalgamation went to a special vote at both institutions in April, more than 95% of member votes favoured the merger.

Jackson saw the enthusiasm from Desjardins CU personnel during a visit to their offices prior to the merger. “One of the employees actually baked a cake and wrote ‘Meridian and Desjardins’ on it, with two wedding rings on top,” he recalls with laugh. “In a merger and amalgamation situation, you really only have one chance to make a positive first impression.”

As a result, Jackson says, good communication is not only a key aspect of the integration process, it’s also a way of making a company stronger. Those with Meridian before the merger were regularly asked for input on what the firm could do better.

In fact, for the past five years, Meridian has partnered with Europe-based Gallup Organization to work with Meridian staff on leadership development and workplace wellness. Furthermore, members are also surveyed every week using the Net Promoter Score, a ratings scale developed by Satmetrix Systems Inc. Several firms in the financial services industry, including Toronto-based Toronto-Dominion Bank, have used this type of client satisfaction methodology.

“Our scores are between two to three times higher than the major financial services institutions in Canada,” Jackson says. “We’re significantly outperforming.”

Feedback from members had prompted Meridian to undertake several initiatives in April. The introduction of its “no-bounce” service was an industry first, allowing members to resolve the issue of a bounced cheque without immediately getting slapped with non-sufficient funds charges.

As well, Meridian has introduced its new slogan: “Your Money. Your Way. Imagine That.” And new ads were also launched that feature Meridian’s lower fees, higher interest rates and other personalized offerings.

Meridian’s marketing strength was one aspect of the merger Desjardins CU’s members were looking forward to, says Gauvin: [They] think positively about the amalgamation because they will have more publicity.” IE