1. Demonstrating Values The Canadian credit union system and how co-operative principles and practices build resilience, sustainability and growth. Africa Credit Union Development Educator’s Forum February 2015

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8. Jun-16Canadian Co-operative Association 8 History of Canadian Credit Unions Began in Quebec in 1900 with Alphonse Desjardins Spread to the Maritimes in the 1930’s Credit unions established in the West in 1940’s Provincial Credit Union Centrals established Rapid growth in the 1950’s and 1960’s Early versions of deposit guarantee funds were formed

9. Consolidation in the system # Credit Unions reached its peak in the 1960’s In 1987 there were 1,497 Credit Unions in English speaking Canada At the end of 2014 there were 315 Credit Unions The trend of mergers has slowed in the last decade Very few closed bond Credit Unions remain Jun-16Canadian Co-operative Association 9

10. Jun-16Canadian Co-operative Association 10 Canada’s Co-operative Banking System CANADA 10,123,467 Members (29 % of pop.) $324 billion BC 1,893,310 members (41% of pop.) $61 billion AB 635,689 members (15% of pop.) $22.7 billion SK 488,875 members (43% of pop.) $19.3 billion MB 603,159 members (47% of pop.) $23.76 billion ON 1,395,057 members (10% of pop.) $35.4 billion NB 69,358 members (9% of pop.) $.927 billion NS 151,356 members (16% of pop.) $2.1 billion PEI 54,175 members (37% of pop.) $882 million QC 4,433,286 members (54% of pop.) $146.4billion NL 54,186 members (10 of pop.) $1.1 billion Results include non-Central affiliated credit unions & caisses populaires Q3 2014

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12. Engaging Youth  Youth Credit Unions  Youth Community Advisory Committee  Youth Online Forum  Young Free Alberta Campaign  https://www.youtube.com/watch?v=cawzTSVTP2M&feat ure=player_detailpage https://www.youtube.com/watch?v=cawzTSVTP2M&feat ure=player_detailpage Jun-16Canadian Co-operative Association 12

13. Reciprocity Virtually all Credit Unions give back to their members and communities in some form In 2012 = $35.6 million in donations and sponsorship 76% of Credit Union staff volunteered their time unpaid Jun-16Canadian Co-operative Association 13

14. 500,000 + members More than $17.5 billion in assets 60 branches 2500 employees Jun-16Canadian Co-operative Association 14

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16. Vancity Governance Nine elected board positions Currently 6 women, 3 men Staggered three-year terms Maximum of four consecutive terms Fiduciary duty BOD recommends five nominees to membership based on skills Strategic, not operational Member participation rate – 5% Jun-16Canadian Co-operative Association 16

17. Vision, Purpose and Mission Vision: Redefining Wealth Individuals can prosper only when they are surrounded by and connected to a vibrant and healthy community. Purpose To help communities thrive and prosper by using financial tools in innovative ways that make society better for more people, better outcomes and greater sustainability. Mission To be a democratic, ethical and innovative provider of financial services to our members. Through strong financial performance, we serve as a catalyst for the self-reliance and economic well-being of our membership. Jun-16Canadian Co-operative Association 17

18. Three pillars of the business model Vancity is building healthy communities Co-operative principles and practices are flourishing in the community Environmental sustainability for our members’ lives and communities is enhanced Social justice and financial inclusion are enhanced in our members’ lives and communities Jun-16Canadian Co-operative Association 18

19. Serving the Underserved The movement was born to serve the underserved Less Canadians are “underserved” today “Underserved” could include:  People facing poverty  Refugees and new immigrants  Homeless  People living with a physical or mental disability  Aboriginal or Indigenous communities  People living in remote communities Jun-16Canadian Co-operative Association 19

20. Examples: Fair and Fast loan Microfinance products Permanent Residence Refugee Loan Jun-16Canadian Co-operative Association 20

21. Vancity “Firsts” 1946 - First financial institution to provide mortgages to people living east of Cambie St 1961 – First financial institution to lend to women without a male co-signer 1967 – Vancity introduces the first daily interest savings account in Canada 1975 – Vancity pioneers GEAC 800 and in 1977 offers the first universal access inter-branch banking capability in Canada Jun-16Canadian Co-operative Association 21

22. Vancity “Firsts” 1986 – Vancity offers Canada’s first socially responsible mutual fund – The Ethical Growth Fund 1989 – Vancity Community Foundation established with $1 million endowment from the credit union 1993 – Vancity offers Canada’s first Community Investment Deposit 1996 – First Youth Credit Union established 2002 – first Canadian financial institution to market to the LGBT community Jun-16Canadian Co-operative Association 22

23. Vancity “Firsts” 2004 – Pigeon Park Savings established 2004 – Vancity awarded Maclean’s “Best Employer in Canada” 2006 – Dr. Muhammad Yunus endorses Vancity's micro- credit toolkit 2008 – Vancity achieves carbon neutrality 2010 – Vancity joins the Global Alliance for Banking On Values 2011 – Vancity become the largest organization in Canada to adopt Living Wage Jun-16Canadian Co-operative Association 23

24. Vancity “Firsts” 2014 – First financial institution to offer an alternative to payday lenders 2014 – Vancity releases its three-year strategic plan to the public 2014 – Pope Francis invites Vancity’s CEO to the Vatican 2014 – Vancity’s CEO invited to participate in a panel discussion with the Dalai Lama Jun-16Canadian Co-operative Association 24

25. Vancity’s Shared Success 30% of profits shared with members and the community $18,300,000 in 2013 $257,000,000 since 1994 - $148,000,000 through patronage and dividends $109,000,000 in grants to local community organizations Jun-16Canadian Co-operative Association 25

26. Vancity’s differentiation for impact: Not CSR – values are imbedded into operations Act as convenor and partner Hands together approach Commitment to investing into “impact” Shared Success Member empowerment through Financial Literacy - EOTO Community Investment Team Orientation Immersion Employee Engagement Jun-16Canadian Co- operative Association 2626

27. Video https://www.youtube.com/watch?v=3OF_N72l15k Jun-16Canadian Co-operative Association 27

28. Imbedding Values requires: Strategic, long-term vision Commitment to values Starts at the top All stakeholders (external and internal) Operationalize and execute Walk the talk - alignment Transparency, authenticity, advocacy Ongoing member dialogue and engagement Jun-16Canadian Co-operative Association 28

29. Thank you! Jun-16Canadian Co-operative Association 29