The Credit Union – More Than Just Another Bank

By Walter Kish

As some of you may know, I sit on the Board of Directors of the Ukrainian Credit Union, the largest Ukrainian Credit Union in Canada in terms of members and close to being the same in terms of assets.  It is definitely the largest in terms of locations with some eleven branches throughout Ontario.

This past year has been a difficult one for all financial institutions including credit unions and it is fair to say that we continue to face serious challenges in remaining profitable while still providing the best possible services at competitive rates to all our members.

The fact that we have been able to do so under trying circumstances is a testament to the skills and dedication of our staff as well as the Board of Directors and its various committees.

During the past year, it has become painfully evident that some of our members have begun viewing our credit union as just another “bank” and our services as commodities to be shopped for to obtain the lowest possible rates.  I will not argue that we must remain competitive with the major banks, yet when I see someone move his mortgage from our credit union to one of the major banks because they can offer a rate that is a quarter of a percent lower, I cannot help but be disappointed.

It is obvious that those members do not realize what the Credit Union means to the Ukrainian community.  Do they not know that most of the Ukrainian churches, halls, camps and other structures would likely never have been built without the support of the Ukrainian credit unions?  Do they not realize that virtually every Ukrainian concert, festival, recital, film, memorial or cultural event only takes place because of the generous support of Ukrainian credit unions?  Do they not appreciate the fact that every Ukrainian organization, foundation, fund, choir, dance group and theatre group regularly depend on credit unions to support their activities?  Do they not know that Ukrainian credit unions have played a major role in many of the foreign aid programs in Ukraine, the election observer missions, and most of the cultural, educational and business programs between Canada and Ukraine?

Ukrainian credit unions have played a vital and fundamental role in helping to build and maintain a strong Ukrainian community throughout Canada for some seven decades.  We should also keep in mind that they were formed precisely because the big banks that are so eager to draw away business from our credit unions now, were the same banks that refused to provide credit to our parents and grandparents when they first immigrated to Canada.

Ask yourself how much money any of the major banks have donated to your son or daughter’s Ukrainian dance group or Ridna Shkola? How much money do they donate to Ukrainian events, organizations, churches and foundations?  How many scholarships do they provide to Ukrainian students?

There is one other major factor to consider as well.  As we all know, the banks consistently make huge profits, yet their service charges keep going up.  Where do those profits go?  They go into shareholders’ pockets, many of them very rich shareholders, many of whom are not even Canadian.

Where do credit union profits go?  A significant portion gets returned back to you as members in the form of dividends.  Some goes into enabling the credit union to offer services at no charge for which you pay significant fees at the bank.  A good chunk goes back into directly supporting the Ukrainian community in all the ways mentioned earlier in this column.  Most importantly, all of the profits stay within the community of members that make up the credit union.

Next time any of you who are credit union members consider taking some of your business to a bank instead of the credit union for the sake of a few hundred dollars savings, please consider the implications of what you are doing.  I would especially like you to imagine what the Ukrainian community in Canada would be like without its credit unions.  I can assure you that any short term small saving would be more than offset by the long term loss that would result should our credit unions disappear.