The process continues towards a potential merger of Innovation Federal Credit Union and ABC Credit Union in Alberta.
"We knew it was going to be a longer-term process," said Innovation CEO Dan Johnson. "This is the first ever interprovincial merger in Canada. The ability to merge is available, but there are a lot of administrative and procedural items that in this case, the Alberta government and the Alberta regulators need to introduce and get approved. So, it's taking a bit longer than we wanted, but we're seeing some really good traction recently, and we're looking forward to engaging the membership over the next few months."
In July last year, the two credit unions’ board of directors approved the business case, allowing them to seek regulatory approval.
An Innovation release stated that over the past eight months, both credit unions have been actively engaging with their respective regulators and developing plans to ensure a seamless transition for employees and members in the event of a merger.
They have obtained approval from the Competition Bureau to proceed with the merger.
The Alberta government still must make some legislative amendments before the two institutions proceed with member votes.
"This is one of our top priorities, but of course, governments have a lot of things on the go, especially in today's economic environment," Johnson said. "In order to get some of the procedural mechanisms approved, we need to get on an agenda and have them approved by the Alberta government. It sounds like that will happen in April, but again, things might change, and priorities might shift. We're quite hopeful that we'll see those amendments happen to allow for the merger to move forward."
Johnson felt the initial response from members on both sides has been positive.
"We've invested a lot in our online mobile (and) our digital capabilities," he said. "The members would be looking forward to accessing that experience. I think the big one that a lot of members might miss out in other provinces is the access to free banking. Innovation is one of a few credit unions in the country that offers free banking to their consumers. Instantly, when the credit unions come together, their service charges will disappear, and they'll be able to access free unlimited E-transfers."
Johnson also pointed to their quarterly member rewards as a positive for ABCU members should the merger go through.
It would also offer Innovation some physical and staffing infrastructure in Alberta.
"Even though our primary strategy is a digital growth strategy," Johnson said. "We always felt that eventually there will be a scenario where we'll have enough members in a certain area that they'll require feet on the ground or some sort of physical location for complex needs to resolve. Some of those advice and guidance elements that they're looking for, and we do have a number of members that live in Alberta. Having a physical location in Edmonton is pretty exciting for us and our current members, and we'll be able to have access to a pretty impressive market. More people live within a 50-kilometer radius of Beaumont in Edmonton than all of Saskatchewan. There is lots of opportunity to grow the organization as well."
Johnson attended ABCU's annual general meeting yesterday. Innovation's AGM is scheduled for June 9th.