Op-Ed: Credit Unions – A Steadfast Partner for Canadians
By Jeff Guthrie, President & CEO, Canadian Credit Union Association (article originally published on The Hub)
Canada stands at a critical economic crossroads. Trade tariffs from our largest trading partner threaten the foundation of our economy. Over the past century, we have transformed our economy from a ‘hewer of wood and drawer of water’ to the USA’s largest trading partner with highly integrated supply chains and dependencies.
With rising uncertainty and potential disruptions on the horizon, we will need to rely on the stability and resilience of our financial services sector to help us weather the storm and diversify our economy and markets. Canada’s credit unions are Canadian-owned financial institutions that are rooted in their communities and provide similar products and services to banks. Unlike banks, which exist to benefit shareholders, credit unions are owned by their members and exist to serve those members’ financial well-being and support their communities. Credit unions are an important pillar of Canada’s financial sector but are often overshadowed by the big banks and overlooked by politicians and policymakers.
For the 20th consecutive year, Canada’s credit unions have earned the overall award for Customer Service Excellence in the 2024 Ipsos Financial Service Excellence Awards. Canadian credit unions were chosen as the overall winners in this category among all financial institutions in retail banking. This sustained recognition showcases the unwavering commitment to member service and the consistent excellence that differentiates credit unions in the financial sector.
A Century of Stability and Support
Canada’s credit unions have been unwavering partners to their members, local businesses, and communities for over a century. Whether during economic downturns, financial crises, or global challenges, credit unions have consistently provided stability and support.
Today, credit unions serve over 11 million Canadians and provide essential banking services from coast to coast, in communities large and small. They finance 21% of all small and medium-sized businesses —a share larger than any of Canada’s big six banks— helping more than 350,000 businesses grow, create jobs, and strengthen local economies.
100% Canadian. 100% Committed.
Credit unions are 100% Canadian-owned and deeply embedded in local communities. In more than 350 communities, credit unions remain the sole provider of in-person financial services. As member-owned organizations, profits are returned to members or used to support important programs and projects within the local community.
Economic resilience isn’t built through top-down policies alone. It requires keeping money in local economies, protecting Canadian jobs, and ensuring small businesses have the tools they need to succeed.
This model of financial cooperation is why the United Nations has designated 2025 as the International Year of Cooperatives under the theme “Cooperatives Build a Better World.” The UN is urging governments worldwide to recognize and support cooperatives, including credit unions. In Canada, this means recognizing that credit unions are essential contributors in shaping national economic policy and enacting policies and regulations that support their growth and ability to provide important competition to large banks.
Vital Competition and Consumer Choice
Credit unions play a crucial role in fostering competition within Canada’s financial services sector, ensuring consumers have real financial choices. As full-service financial institutions, they offer a member-driven, locally rooted alternative to banks, preventing market concentration and promoting a diverse financial services sector across all provinces.
As economic challenges evolve, maintaining a competitive financial sector is of the utmost importance. Credit unions provide Canadians with a stable, values-driven option that prioritizes their needs and financial security.
Lessons from the Pandemic: Inclusion Matters
The COVID-19 pandemic was a stark reminder of the consequences of overlooking credit unions’ role in supporting Canadian businesses. Although credit unions provide important financial services to many Canadian small businesses, they were initially excluded from delivering the Canada Emergency Business Account (CEBA), leaving many small businesses scrambling to access vital financial relief. The initial decision to only use banks to deliver CEBA led to delays and caused unnecessary headaches and stress for thousands of small business owners.
The lesson is clear: when credit unions are sidelined, the Canadians, communities and businesses that depend on them suffer. As policymakers consider measures to mitigate the impact of potential tariffs, they must ensure credit unions are included from the outset – not as an afterthought.
Credit Unions Have Always Been Here—And Always Will Be
Credit unions have never wavered in their commitment to Canadians. They have weathered economic storms, championed local businesses, and provided an alternative to traditional banking that prioritizes people’s needs.
Credit unions don’t step back when times get tough—they step up.
Now, more than ever, policymakers must recognize their key role. Canada’s economic future depends on financial institutions that put communities first. Credit unions have always done so—and always will.
The time for action is now. Policymakers must ensure that credit unions are not just an afterthought but a central pillar in shaping Canada’s financial future.