Having worked with financial institutions both large and small, the main problem with smaller orgs is the baseline cost for technology, and backoffice costs. Some of it can be outsourced (leading to some monopolies like Fiserv and Central1) - but consolidation can genuinely help in getting better operations (both in costs and services to be offered).
From a governance and regulatory perspective, consolidation is understandable. Technology, cybersecurity, AML compliance, privacy requirements, and risk management create significant fixed costs that are increasingly difficult for smaller credit unions to absorb. Scale can help improve efficiency, resilience, and service offerings.
Credit unions have traditionally differentiated themselves through member relationships, local decision-making, community connection, and trust. If mergers result in centralized decision-making and experiences that feel indistinguishable from the major banks, members may legitimately question what remains unique about the credit union model.
EQ Bank has the best way to buy GIC online. It's almost one click. And Great rates too! Going small sometimes is better - especially when it comes to Big Banks.
Most CUs and even some big banks have outdated technology and lack of motivation to really help the existing customers. They are busy chasing the growth and loan and new customers. It's forgotten that existing customers if served well can bring more customers and more business.
I usually am the low maintenance type of customer for most types of services.
So since I joined Coast Capital twenty five years ago I have gotten really good service from them.The lineups are really short and the tellers are friendly. One of the credit unions they just merged with was a different story. It acted like a bank and my mother's money became hostage at that credit union. I had to get the regulator to intervene.
I hope Coast Capital continues to be a great financial institution.
One thing I noticed that banks and some credits unions are terrible at handling, Power of Attorney's. They used to issue their own and now you have to pay a lawyer or notary to draw one up.
The trouble is the banks each have a different policy and many times they throw up road blocks to the person with the POA trying to manage their parent's financial affairs.
It is mind boggling that any institution would not let the customer know ahead of time what their internal rules of the road are.
One bank said they required I transport my elderly parent to the bank for a (KYC) know you customer form. I asked the young person at the other end, what should a customer do if their parent is infirmed in a hospital bed? Are they suppose to hire an ambulance to transport their parent to the bank?
It looks more like a feeble attempt to create more sales.
Today I cringe every time I have to deal with a bank. Buying a GIC can take three weeks.
Online stock trades in the large amounts take me seconds to do.
It really is waste of the customer's time and that of the bank's staff member.
It's funny you mention power of attorney as I've also had issues with my mom's credit union on that front. I also had to threaten going to the regulator before they agreed to measures that made sense (she has Alzheimer's and is essentially infirm). Besides that, they've generally been more pleasant to deal with than the big bank I use for my own services.
Having worked with financial institutions both large and small, the main problem with smaller orgs is the baseline cost for technology, and backoffice costs. Some of it can be outsourced (leading to some monopolies like Fiserv and Central1) - but consolidation can genuinely help in getting better operations (both in costs and services to be offered).
I believe it was Spider-Man's uncle Ben who said that with great size comes great responsibility. It's a classic dilemma. ; )
From a governance and regulatory perspective, consolidation is understandable. Technology, cybersecurity, AML compliance, privacy requirements, and risk management create significant fixed costs that are increasingly difficult for smaller credit unions to absorb. Scale can help improve efficiency, resilience, and service offerings.
Credit unions have traditionally differentiated themselves through member relationships, local decision-making, community connection, and trust. If mergers result in centralized decision-making and experiences that feel indistinguishable from the major banks, members may legitimately question what remains unique about the credit union model.
EQ Bank has the best way to buy GIC online. It's almost one click. And Great rates too! Going small sometimes is better - especially when it comes to Big Banks.
Most CUs and even some big banks have outdated technology and lack of motivation to really help the existing customers. They are busy chasing the growth and loan and new customers. It's forgotten that existing customers if served well can bring more customers and more business.
I usually am the low maintenance type of customer for most types of services.
So since I joined Coast Capital twenty five years ago I have gotten really good service from them.The lineups are really short and the tellers are friendly. One of the credit unions they just merged with was a different story. It acted like a bank and my mother's money became hostage at that credit union. I had to get the regulator to intervene.
I hope Coast Capital continues to be a great financial institution.
One thing I noticed that banks and some credits unions are terrible at handling, Power of Attorney's. They used to issue their own and now you have to pay a lawyer or notary to draw one up.
The trouble is the banks each have a different policy and many times they throw up road blocks to the person with the POA trying to manage their parent's financial affairs.
It is mind boggling that any institution would not let the customer know ahead of time what their internal rules of the road are.
One bank said they required I transport my elderly parent to the bank for a (KYC) know you customer form. I asked the young person at the other end, what should a customer do if their parent is infirmed in a hospital bed? Are they suppose to hire an ambulance to transport their parent to the bank?
It looks more like a feeble attempt to create more sales.
Today I cringe every time I have to deal with a bank. Buying a GIC can take three weeks.
Online stock trades in the large amounts take me seconds to do.
It really is waste of the customer's time and that of the bank's staff member.
It's funny you mention power of attorney as I've also had issues with my mom's credit union on that front. I also had to threaten going to the regulator before they agreed to measures that made sense (she has Alzheimer's and is essentially infirm). Besides that, they've generally been more pleasant to deal with than the big bank I use for my own services.
Boggles the mind that the intuitions take your money and then tie it up.
The time spent is such a waste of time for both sides.
I conveyed my side to two of the big banks. I think someone somewhere in upper management needs to work at a branch once a year.
Glad I am not the only one.