By Don Urquhart, Times Chronicle
Voting is now underway to determine if the membership of three Okanagan credit unions, including the Osoyoos Credit Union, will gain approval for a merger that will create an entity that will be known as “Cascadia Credit Union” with combined assets of $890 million, six branches and 16,350 members.
The process that began last year has now cleared all regulatory hurdles and now comes down to the membership of the Osoyoos Credit Union, Revelstoke Credit Union (RCU) and Summerland Credit Union (SCU) to have the final say.
Voting began on Monday (May 26) and will continue – online and within the branches – until June 2. The proposed merger, should it be approved by membership, is set to take effect on July 1, 2025, and the head office will be located in the current office of the SCU in Summerland.
Consolidation has been a key facet of the BC credit union sector over the last few decades, driven by the need to achieve scale, improve efficiency and compete with larger financial institutions.
“While we are financially strong today, merging will allow us to combine resources to scale operations, invest in new technology, and expand our product offerings to serve you better,” wrote the board chairs of the three credit unions in their information package mailed to all members.
They went on to say that the increased scale will enable the merged entity to improve digital banking, optimize internal processes while meeting regulatory expectations, attract top talent and enable greater professional development, all while maintaining the high level of service and sharp focus on membership and community.
The credit unions say they don’t expect to cut any of the services currently offered at any of the offices although there will be a harmonization process as the unique offerings from each credit union are gradually standardized to “provide equitable access and consistency.”
Further, “standardized rates, fees, and terms will be introduced to ensure consistency in pricing while minimizing member disruption and enhancing confidence in the new structure,” the trio said. There will also not be any branch closures.
Similarly, no employees will be cut, nor will salaries be reduced as a result of the merger, according to the three. Currently, OCU has 24 employees in Osoyoos, Keremeos, Rock Creek and Oliver; RCU has 44 employees at one banking branch and one insurance branch; and SCU has 37 employees in Summerland.
The merger is not without risks, with the three credit unions stating they have assessed the risks and “concluded the benefits outweigh the risks.”
Among the risks identified are: a potential for oversight of critical details during due diligence; diverging corporate culture could hinder post-merger cohesion and alignment; risk of losing key employees due to uncertainty or unhappiness over integration process; risk of failing to secure membership approval which would impact the credibility of the credit unions, disruptions to business continuity; challenges related to system integration; and integration costs exceeding projections.
The merger does come with some costs as well – over $4.3 million – comprising nearly $1.15 million of pre-merger costs along with $3.2 million post-merger, of which key systems integration make up the lion’s share, followed by human resource costs.
The three credit unions have been engaged in a strategic partnership since 2022. Formal merger discussions began in June 2024, when the three Credit Unions formalized their intent to explore a strategic merger by signing a Non-Disclosure Agreement (NDA). This key step initiated a comprehensive strategic review aimed at assessing the viability of a unified presence across the Central, North, and South Okanagan.
The Boards of all three credit unions also looked at alternative options to the Proposed Merger – status quo, collaboration, partnerships, and joint ventures, federal continuance, and other merger partners – and concluded that those alternatives “did not provide greater member, employee, and community benefits than the Proposed Merger.”
Voting is available from May 26 to June 2 and is available online at yourfuturecu.ca (where more information on the merger is also available) or in person at the main branch of the Osoyoos Credit Union at 8312 Main St, Osoyoos, during normal business hours (Monday – Friday 9:30 a.m. – 5 p.m.). Voting can also be undertaken at the Keremeos and Rock Creek branch offices.
