Credit union members vote to merge

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This article was published 21/06/2024 (441 days ago), so information in it may no longer be current.

Members of Assiniboine Credit Union, Caisse Financial Group and Westoba Credit Union have voted by a large margin to support the proposed merger of the three organizations.

The members participated in online voting from June 6 to June 19, with 89 per cent of Assiniboine members, 84 per cent of Caisse members, and 88 per cent of Westoba members endorsing the merger.

A news release issued Wednesday said the approval paves the way for the creation of one of Manitoba’s largest credit unions, positioning it among the top 10 in Canada.

“The merger, approved with significant support from each co-operative’s membership, is set to finalize on January 1, 2025, pending regulatory approvals,” the release stated.

“Upon completion, the newly formed entity, to be named Assiniboine Credit Union / Caisse Assiniboine, will boast a formidable presence with 50 branches across Manitoba, serving approximately 216,000 members and managing assets totalling $9.6 billion.”

Assiniboine is the largest of the three credit unions. Their three boards had already unanimously recommended its CEO, Kevin Sitka, become CEO of the combined entity.

French language services will continue at all 19 of the old Caisse Financial Group branches.

In April, the boards of three credit unions sought the approval of their members and employees on the merger, saying it would strengthen services for rural and urban members and agricultural enterprises across Manitoba.

Westoba Credit Union chief executive officer Jim Rediger told the Sun members in Brandon should expect immediate service enhancement and access to resources.

“With increased scale, we aim to introduce popular conveniences like Apple Pay and Google Pay, alongside plans to offer Visa Debit and higher interest deposit accounts in the future,” he said in an email. “This merger positions us to support larger commercial and agricultural operations, reinforcing our commitment to economic growth in Brandon and beyond.”

Rediger said the merger approval does not alter the plan to sell its downtown building.

“There is no impact to services provided to members at branches, including the three conveniently located in Brandon,” he said. “We remain invested in downtown, and employees will continue to work out of the main floor at the 220 10th St. building, our current corporate headquarters.”

Rediger also outlined proactive measures to ensure a seamless integration process and sustained community engagement.

“As we move forward, our focus remains on maintaining operational continuity for our members. Post-merger, we will initiate the harmonization of products and services, ensuring minimal disruption. Clear communication with members will be paramount throughout this transition period,” he added.

Following regulatory approvals on the merger, the Westoba CEO said, harmonization and rationalization of products and services across the organization will start and that will be finalized when the banking systems are integrated.

“We are committed to maintaining and growing our community investments throughout Manitoba. Our contributions and investments in our communities through grants, sponsorships and volunteering are a great source of pride for all of us and will continue in the future,” he said. “This is an area of shared strength and importance as we continue to learn about the breadth and depth of commitment to communities in each organization.”

Assiniboine Credit Union chair Crystal Laborero said the merger represents a bold step toward enhancing the three institutions’ collective capacity to serve members across Manitoba.

“By combining our strengths, we are not only ensuring sustainability but also enriching the co-operative spirit that defines us,” she said.

» aodutola@brandonsun.com, with files from the Winnipeg Free Press

» X: @AbiolaOdutola