This System Brief was prepared in 2011 by Credit Union Central of Canada’s Policy Division. Canadian Central’s System Briefs are prepared for a general credit union audience and aim to provide the reader with detailed analysis on a matter of interest to the system.
Credit unions care for their communities because they are ultimately creatures of community, springing forth originally either from some sort of affinity bond or geographic relationship. Credit unions express this care by contributing to the social and economic health of their local communities in ways ranging from sharing profits with their members to making donations in support of local community groups to simply providing financial services in areas such as rural and small-town Canada or impoverished inner-city hubs where other financial institutions are reluctant to go. This System Brief shows how the available data reflect this commitment to community.
Of course, a credit union’s ability to give back to its community depends on its ability to operate in a sustainable fashion. This System Brief therefore begins by taking a look at the system’s recent financial performance as well as changes in both the loan portfolio and market share of a number of key credit union financial products. Next, it reviews the available data on credit union community involvement. It concludes with an overview of select findings from the most recent Synovate “Customer Service Index” survey. To forecast that discussion, it is worth noting that the Synovate survey finds once again that credit unions outperform their bank counterparts in the vast majority of service categories, another consequence that would seem to flow from the system’s commitment to community.
*Please note this report is to be shared internally with credit union staff only and not for public viewing.
