The Credit Union Difference: Why Canadians are Choosing Credit Unions to Reach their Financial Goals
Since the first credit union opened its doors in Canada in the early 1900s, credit unions have etched their place in history as an alternative approach to financial services that focuses on providing Canadians with a personalized and impactful banking experience. The secret to credit unions’ success is rooted in their longstanding commitment to helping their members and communities reach their financial hopes and dreams.
From providing their members with exceptional customer service and giving back to their communities to providing financial support to their members and local businesses, supporting their members and communities is at the heart of everything that credit unions do.
Award-Winning Customer Service
Canadian credit unions are committed to helping their members and communities build a better financial future. Through their offering of customized financial advice and personalized support, credit unions put the needs of their members at the forefront. Proudly serving over 11 million Canadians, their steadfast dedication to providing the best-in-class customer service goes beyond simply helping Canadians perform their daily financial transactions, but instead they genuinely invest in their financial prosperity.
For the last 19 years Canadians have voted and awarded Canada’s credit unions #1 in customer service excellence – outperforming all other financial institutions. This longstanding recognition further highlights the unwavering commitment that credit unions hold toward providing Canadians with top-tier member experience. Along with their recognition for customer service, in 2023 Canada’s credit unions received five additional IPSOS Financial Service Excellence Awards, further illustrating the high levels of service they provided to their members. The categories in which Canada’s Credit Unions were lauded include:
- Customer Service Excellence (solo win)
- Values My Business (solo win)
- Financial Planning & Advice
- Branch Service Excellence (solo win)
- Online Banking Excellence
- Live Agent Telephone Banking Excellence (solo win)
“The awards credit unions have received highlight the sector’s mission to go beyond mere transactions and truly invest in the well-being of our members and the communities we serve.” – Jeff Guthrie, Canadian Credit Union Association President and CEO.
Credit Unions Helping Canadians Build a Brighter Financial Future
Canadian credit unions are well-regulated, full-service cooperative financial institutions that provide their members with a full range of financial products, including chequing and savings accounts, lines of credit, mortgages, loans, and much more. Their tailored, one-on-one approach to financial services enables them to cultivate a deep understanding of each member’s financial goals, dreams, and priorities to help them determine the right products and services to help their clients build a brighter financial future.
Community-Minded at their Core
As locally-based and member-owned financial cooperatives, credit unions play a vital role in supporting their local economies and improving their members’ financial and social well-being. According to CCUA’s 2022-2023 ESG Report, Canada’s credit unions contributed $55 million in donations, sponsorships, scholarships, volunteer hours, and financial literacy programs in 2021 to support their members’ and communities’ financial well-being.
Profitability is a strong indicator of the success or failure of any organization. For credit unions, the success of their business is dependent on those who own and control them, their members. That is because the cooperative business model that credit unions operate with allows them to be profitable without it being at the expense of their members. Unlike other financial institutions, credit unions reinvest their profits back into the local communities they serve through profit sharing, donations, and by working to improve their member’s banking experience by providing them with access to the best products and services to meet their needs. That is because credit unions are here to help Canadians prosper not just socially but financially as well.
Eleanor Pegg, a member of Synergy Credit Union, reinforces the true beauty offered by the community-focused nature of credit unions stating:
“I really like the involvement credit union staff have in our town and community. It is so great to see them out and about at events, volunteering their time. They set a great example for other businesses. I like the small-town energy of walking into our credit union, where if you don’t know someone, you will soon.”
Helping Local Business Survive and Thrive
Canada’s vibrant and resilient economy is built on the rich tapestry of small businesses that reside in our communities big and small. To date, small businesses account for 98 percent of all businesses in Canada.
However, while the nation is filled with a plethora of small businesses, just as for any business, gaining access to capital and the right financial resources can be challenging, but it’s a vital part of securing an institution’s growth and sustainability. Community-minded at heart, credit unions are committed to contributing to their communities’ economic and social well-being, including small businesses.
Credit unions continue to be proud supporters of local businesses in communities across Canada and are leaders in small business lending. Holding 21% of Canada’s national lending market share, these purpose-driven institutions provide small and medium-sized enterprises with greater flexibility in their financing options compared to other financial institutions. By providing Canadian entrepreneurs with sufficient access to financial support, credit unions have helped fund over 350,000 small and medium-sized businesses across a wide area of industries and sectors[1].
[1]2022-2023 ESG report. Canadian Credit Union Association. (2023, May 11). https://ccua.com/resources/2022-2023-esg-report/