Plainsview Credit Union proposed a merger with the Horizon and Cornerstone Credit Unions to its members earlier this summer.
鈥淐redit unions are under pressure,鈥� explains Fintan Ryan, CEO of Plainsview Credit Unions, 鈥渃ompeting with all bigger financial institutions, credit unions need to gain efficiency so that we can offer better service and more competitive products to our members.鈥�
鈥淭o do that, we have to reach a certain scale of business. Plainsview Credit Union has just over $300 million in assets. Cornerstone are just over a billion, Horizon are $200 million. Combined the three credit unions will have assets of almost 1.7 billion,鈥� he added.
Ryan went on to say: 鈥淭his gives us a bit of a scale to create that efficiency that will allow us to invest in more technology and products to provide the services that our members want and in the ways that they want it. The effects of COVID-19, with branches operating from behind closed doors, highlights that situation even more. The credit union needs to assist members who want to (and need to) do their business and transactions digitally, online. The bigger credit union is investing in a new online platform that will make these services more up-to-date and relevant to our members. It is planned that Cornerstone will be on the new platform in the first quarter of 2021.鈥�
鈥淐urrent Plainsview members will benefit. We would not have been able to do that on our own. It makes sense to do things together rather than try to do them individually Credit Unions have a history of amalgamating. Plainsview Credit Union is actually a result of the merger of five credit unions 22 years ago, with Kipling Credit Union having been serving its members for over 70 years.鈥�
With over 1,100 members casting their votes online this past summer, 94 per cent were in favour of the amalgamation.
The credit union described it as a terrific and very positive response from members.
The decision whether or not to merge could have been decided at the annual general meeting by a possible 80 members but the board of directors felt that for such an important decision, as many members as possible should be allowed to have their say.
The new Cornerstone Credit Union will consist of 23 branches between the three credit unions come January, boasting over 34,000 members.
鈥淭he name change will be the only significant change members will see,鈥� reassures Ryan. 鈥淥ther than that members can expect the same service and will be dealing with the same people locally.鈥�
Doug Jones, CEO of Cornerstone Credit Union, will remain the CEO come January after the merge.
