SWIFT CURRENT - It was announced this week Innovation Credit Union has been granted approval to become a credit union with national reach effective June 23, 2023.
It becomes the third credit union to operate nationally. The change means Innovation can promote its products and services across the country, something it could not do as a provincially regulated credit union.
The approval came from Canada’s Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, after an extensive review by the Office of the Superintendent of Financial Institutions to assess Innovation’s readiness to meet the standards of a credit union with national reach.
The process also involved gaining approval from regulators as well as both levels of government. Members approved the change in Dec. 2017 when 82 per cent of the 17,214 casting ballots voted in favour.
“We spent a lot of time consulting with our members,” said Innovation Board Chair, Russ Siemens in a news release.
“Without them, we couldn’t take this important step to secure Innovation’s future. Having national reach positions us to better serve future generations. We want to be your credit union and your grandchildren’s.”
Innovation CEO, Daniel Johnson, said in a news release that this move levels the playing field and gives the credit union flexibility to diversify its membership and its deposit base.
It will also help address challenges such as an aging membership and competition from banks and technology companies from across the country. The plan is to serve members across the country via mobile and online banking rather than building new branches outside Saskatchewan.
“We’re constantly looking for ways to evolve and remain a valuable, profitable, and meaningful financial institution,” said Johnson. “We want to grow and succeed for our members and having national reach makes that possible.”
Credit unions with national reach are subject to The Bank Act and are regulated by the Office of the Superintendent of Financial Institutions. However, members will not notice much other change than new signage and an updated logo. Innovation’s products and services will change nor will account numbers.
