YNCU Merger

Saturday, 12 April 2014 06:29

CN-Credit Union merging with Your Neighbourhood Credit Union

Last Friday's announcement of an intended merger between CN-Credit Union in London and Your Neighbourhood Credit Union is still subject to regulatory and membership approval.

While the hope is that the merger will offer better services to members, Kate Neff, Vice President of Marketing and Corporate Communications with Your Neighbourhood Credit Union says the reality for Credit Unions in Ontario is that they need to work closer together as cooperatives to offer the best service.

"The regulations that we're governed by are becoming stronger and tighter all the time and smaller Credit Unions really can't survive because they cant afford to pay the professional fees to perform the services and provide the reports that they're required to."

Neff says the merger means CNCU will become an open bond credit union, welcoming all members of the community to bank with them.

If the merger is approved, the agreement is anticipated to close on September 30th, 2014 and will see the CNCU London branch operate under the "Your Neighbourhood Credit Union" banner at its current location.

Neff says it just makes for smaller credit unions to join larger ones, saying the latest acquisition of CNCU will help in providing some much needed competition to the banking sector.

"This way we meet all of the regulations that are required and we continue to be a Credit Union. And when we're larger we have the opportunity to provide all of the services and products that banking consumers expect today," said Neff.

CNCU currently serves over 1275 members including current and former employees of CN Rail, VIA Rail, AllStream Canada and their families. The sole London branch will be welcomed later this fall pending regulatory and membership approval.

YNCU currently serves approximately 37,000 members in Southwestern Ontario, including one branch in Woodstock.

The past sixth months have seen a number of local credit unions consolidating their operations as part of mergers with larger member chains in the region.

Last week's merger between CN-Credit Union in London and Your Neighbourhood Credit Union is the latest example -- which Neff says helps YNCU provide all of the services and products that banking consumers expect today.

Rochdale Credit Union and FirstOntario Credit Union combined operations on December 1, with Rochdale officially changing its name to FirstOntario Credit Union on April 11.

PACE Credit Union and Alterna Savings, two of Ontario's leading community-cooperative banks also announced a merger this month.

YNCU also recently opened it's seventeenth Southwestern Ontario location in London April 10. Formerly in operation a Boomerang Credit Union, the new London branch was re-branded after another merger with YNCU back in December.