Over the last few years, we’ve continued to see a steady rate of merger activity in the Canadian credit union space. As of November 2022, the Canadian Credit Union Association reported 212 credit unions in Canada; fewer in number than in previous years, but more robust in terms of assets.
Valeyo is an experienced partner when it comes to supporting credit unions during a merger process, providing consultation and guidance on optimizing merger activities relating to our core offerings of creditor insurance programs and lending technology solutions.
We recognize there is consistency in challenges and pain points, regardless of credit union size or location. And we have built out repeatable practices into our programs and offerings to help partners minimize or remove those challenges as they go through the merger process.
Building for scale
A full program changeover can be resource heavy for all credit unions involved. Being engaged at the onset of a merger process enables us to deepen our support by providing advice and guidance in three key areas:
Our distributed product strategy is based on four key principles:
In addition, we provide support, not only around our insurance programs and lending technology but also in related areas, such as reporting, program management, and data and analytics, to ensure new and existing clients are set up for success.
Lastly, there are often regulatory expectations to consider as an outcome of the merger process. More often that not, credit unions face scrutiny by regulatory bodies that set out guidelines and frameworks for financial institutions to enforce, specifically for policies and practices around lending and insurance. Regulatory guidelines have long been built into our programs as best practices and we continue to deepen our engagement with industry associations and regulatory bodies to ensure credit unions benefit from timely advice and compliant solutions.
By taking a measured and holistic approach to the process, we ensure all the right resources are in place to help credit union partners make the most of a merger before, during, and after the process.
Access Credit Union
In 2022, three of our long-term partners, Access Credit Union, Noventis Credit Union and Sunova Credit Union, merged to become the largest in Manitoba under the Access Credit Union brand.
When this merger was announced, Valeyo immediately got to work reviewing account details to provide recommendations on how to align the programs from both an insurance and technology perspective.
“With every merger, we start with an in-depth review of the current contracts for all parties, along with a 360 review of the accounts to see where we can align and gain some efficiencies for the newly formed credit union,” says Nikki Buchannon, Director Client Office, Valeyo. “Every merger has slight nuances, but we have a detailed project plan that supports all activities and have built out a consistent set of policies and practices to support our clients through the merger process. It’s a tried-and-true process that we can replicate very easily to support and guide our partners every time.”
“Valeyo’s expertise made the outcome of the merger seamless,” says Kathy Sauerborn, VP, Retail Banking, Access Credit Union. “The Valeyo team provided significant support in the project process from all areas – be it technology, lender support or data verification. The project was well-managed within acceptable timelines. We knew we were in good hands with this complex three-way merger.”
Today, Access Credit Union has 52 branches, more than 168,000 members, and over $10.15B in assets. Access continues to grow and has pending mergers with Carpathia and Casera Credit Unions on the horizon.
Valeyo is a trusted partner throughout the merger process, from proposal and planning through operational execution and beyond. Our more than 40 years of insurance and technology experience equips us with the foundation to offer the right support and solutions our clients need to grow, evolve and to achieve the best possible outcome for their business.
To learn more about Valeyo visit us at www.valeyo.com.
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