FILE PHOTO - Canadian $100 bills are counted in Toronto, Feb. 2, 2016.
Image Credit: THE CANADIAN PRESS/Graeme Roy
April 29, 2025 - 4:00 AM
Three credit unions in Shuswap and the Okanagan are merging and it’s a sign of the shift in these local financial institutions that serve as an alternative to big five national banks.
A merger between the Osoyoos Credit Union, Summerland Credit Union and Revelstoke Credit Union was recently approved by the government because like every financial institution in Canada they are facing a constantly changing economic landscape.
Credit unions are nonprofit cooperative financial institutions where members can borrow from a pool of money at a low interest rate, as well as get insurance and investment services. Since the credit unions are controlled by their members, the merger has to be approved by a vote.
“Charter banks are publicly traded companies and so they have shareholders they're accountable to... our shareholders are the people who do business with us,” Summerland Credit Union CEO Kelly Marshall told iNFOnews.ca.
A perk for going with a credit union for something like a mortgage over a bank is that since the credit union is controlled locally it can get loans approved more quickly.
“Typically a residential mortgage, we can turn around within 24 hours, depending on complexity. If you look at the competitive market out there, sometimes that wait on residential mortgages is up to 14 days for a decision, and on commercial deals up to a month for a decision,” Marshall said.
He said having credit unions as an alternative to big banks can be helpful for folks, and the merger is a way to stay competitive. If the credit unions merge they can pool funds together for things like mobile services, more competitive salaries for employees, and keeping up with the latest cybersecurity.
Marshall said members who are worried about the merger making the credit union too big should know that the workforce is going to be distributed in the same way so local workers will still be handling local money.
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“Our executive team is made up of people from all three credit unions, so that those credit unions always have a voice at the executive table,” he said. “The ability to meet virtually is very effective. And that's how we meet as a team on an ongoing basis through Microsoft Teams or Zoom meetings or whatever so that we can connect with each other, just like they were in an office across the hallway.”
Revelstoke Credit Union has more than 4,500 members, Osoyoos Credit Union has roughly 4,000 members and Summerland Credit Union has approximately 7,200 members.
The credit unions have been discussing a merger since July 2024 when all three had a total of $873 million in assets.
The Southern Interior credit unions aren’t alone since a lot of Canadian credit unions have been merging in the past few years.
A study by the Canadian Centre for the Study of Co-operatives found that credit unions that merge grow more quickly. Individual credit unions had a growth rate of roughly 15 per cent and ones that merged had a growth rate 26 per cent over two years.
The study came out in August 2024, long before the U.S. trade war made politicians get serious about reducing interprovincial trade barriers. Credit unions are restricted when it comes to lending money for ventures across provincial borders and Marshall says that making cross-provincial operations easier for credit unions would help them grow.
“Because of the trade pressures, there are discussions at the provincial and federal level about the possibility of being able to open that up,” he said.
Provincial barriers and funding to keep up with evolving technology are obstacles for credit unions but Marshall said the biggest obstacle is a lack of awareness so people tend to go with big banks since they just don’t know about credit unions.
“There is no consistent marketing campaign. So the awareness is challenging to get it out there to the general public,” he said.
There are open houses for members of the Southern Interior credit unions next week. Osoyoos Credit Union’s meeting is at the Osoyoos Museum on May 5, Summerland’s is at the Anglican Hall on May 6, and Revelstoke’s meeting is at its branch on May 8.
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