O
ver the past 70 years, credit unions have become
major players in the BC financial services sector. From
only a handful of members and a few hundred dollars
in savings, BC now has 43 credit unions that boast more
than 1.9 million members, collectively hold more than
$60 billion in assets, and employ 8,300 British Columbians.
The credit union system developed in the early 20th
century as people found that the existing banks were
unable to meet their needs. Small groups began to band
together to start organizations that would pay a higher
interest rate on deposits and make loans more readily
available.
In the early days, most credit unions were formed around
a common bond such as a workplace, trade, church, or
ethnic affiliation. This is not surprising, since the initial
concept behind credit unions was to provide loans to
individuals on the basis of character rather than wealth or
property. These “common-bond credit unions” provided
increased access to credit, but also left out any individuals
who didn’t belong to the group.
After the founding of the province’s first credit union,
Powell River Credit Union, in 1939, credit union activists
in the 1940s began promoting the idea of creating a
community-based credit union in Vancouver that would
be open to any resident of the city. Although it was an
unorthodox idea at the time, supporters of the idea were
passionate and determined.
These activists’ plans would come to fruition on September
28, 1946, when 14 Vancouverites signed a charter to
establish an open-bond credit union called Vancouver
City Savings Credit Union. Two weeks later, Vancouver City
Savings Credit Union, now commonly known as Vancity,
was officially established. Since those humble beginnings,
Vancity has grown to become the largest credit union in
Canada, with 490,000 members and $18 billion in assets.
The organization is focused on redefining prosperity
as something that can only be achieved if people are
connected to a healthy and sustainable community.
Unions because a minimum of 10 people were needed
to found a credit union. In need of an additional signee,
one of the founders grabbed his neighbour, who arrived
in a housecoat and slippers with $1 in hand, to sign the
charter and establish the credit union. BlueShore is now a
growing full-service financial institution that serves 40,000
members and offers a wide range of banking, investment,
loan, and insurance solutions.
From their beginnings, credit unions have worked
together to develop innovative services and technology to
meet members’ changing needs. Some accomplishments
include:
• lending to women in their own names,
• offering daily interest savings,
• operating full-service ATMs,
• implementing fully functional online banking,
• making loans based on borrower character,
• offering open mortgages,
• providing home equity lines of credit,
• establishing debit card service,
• offering registered education plans,
• implementing a cheque imaging service, and
a
• llowing mobile cheque deposits using smartphone
photos.
Even as they grow, credit unions are intent on staying in
touch with their roots by assisting their local communities
with sponsorships and services for everything from food
banks to environmental organizations. Since 2012, BC
credit unions have donated $30 million and 31,000
volunteer hours to their communities.
Art Chamberlain is the media relations manager at
Central 1 Credit Union. Central 1 is the financial facility
and trade association for the BC and Ontario credit
union systems.
The route Vancity has taken is not unusual for a credit
union. Shortly before Vancity was formed, the North Shore
Credit Union was created. On May 2, 1941, nine individuals
brought $1 each and gathered at the Palace Hotel to sign
the charter of North Shore Community Credit Union,
now known as BlueShore Financial. However, the signing
was almost prevented by the BC Inspector of Credit
FALL 2014
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