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| THE CREDIT UNION ADVANTAGE Download Brochure (PDF) |
History
Credit Unions have a long history on Prince Edward Island with the first Credit Union being established over 65 years ago, with only 15 members and assets of $30. Today they have grown to serve over 60,000 members with more than 1/2 billion dollars in assets.
Connection
All Credit Unions belong to a co-operative network that work together provincially, nationally and internationally to enhance operations and provide members with a full range of financial products and services. Through the network, Credit Unions have access to credit card services; trust services, wealth management, financial planning services and insurance services.
Innovation
While Credit Unions have long been recognized for their superior customer service and commitment to community, they have also been leaders in innovation within the financial sector, constantly striving to enhance the product and service offerings to members. This has led Credit Unions to be the forerunner in offering many new products over the years, including no fee RRSPs, open mortgages, personal line of credits and automated teller machines.
Protection
Credit Unions offer members the security of knowing their deposits are protected. All Prince Edward Island Credit Unions are members of the Credit Union Deposit Insurance Corporation.
Vision
Prince Edward Island Credit Unions are in business to enhance the financial well being of our members and to provide sound financial advice and outstanding service. As a team, we will be the member’s first choice for financial service.
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Why Choose a Credit Union?
Professional Service
Superior service goes without saying; it’s how we run our business. Credit Union professionals are highly skilled in their areas of expertise and are pleased to assist you with any financial questions or concerns you may have. Staff is committed to achieving and maintaining their industry designations to ensure they can offer the most up-to-date information on investment trends and financial service products.
Your Choice
Bank the way you choose - whether you want to be served in person or on-line, we offer the options that suit you best.
Community Minded
Credit Unions were formed to help ensure the viability of communities – a concept that still exists today. The Credit Union system is the largest financial institution network on PEI with 15 locations from East to West.
Globally Connected
All Credit Unions belong to a co-operative network that work together provincially, nationally and internationally to enhance operations and provide members with a full range of financial products and services. The national network services more than 4.6 million Canadians, through more than 1,800 locations across the country.
Ownership
As a Credit Union member, you are eligible for an annual dividend based on the earnings of the Credit Union and the current market rates. Your membership also gives you voting rights at the annual meeting of the Credit Union, allowing you to have a say in what we do.
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History
In the 1930’s the Great Depression brought hard times to North America, including the Maritime Provinces. The Maritimes’ rural communities were declining. "Men were out of work and hungry; and crops could not find a market. Workers’ skills were rusting with disuse; the ambition and strength of the youth were not wanted."
During these years, a movement starting at St. Francis Xavier University in Antigonish, Nova Scotia, spread over the Maritime Provinces and received acclaims as a "courageous attempt of the people themselves to master the economic forces that held them in bondage. "Small groups of people organized study groups and learned to use the techniques of economic co-operation, which normally led to the formation of a Credit Union, a factory and a co-operative store. The most outstanding characteristic of the "Antigonish Movement" was perhaps its decentralized nature – everyone learned to co-operate in groups to help each other and themselves at the same time.
The Depression years saw a migration of jobless Islanders from large cities in Canada and the United States back to PEI. The educational system underwent dramatic change. The stress was no longer on training an educated elite, but rather on helping a distressed people solve some of their pressing socioeconomic problems.
In 1933 Dr. John T. Croteau moved to Prince Edward Island to teach Sociology and Economics at Prince of Wales College and St. Dunstan’s University. Dr. Croteau’s expertise would provide a catalyst for finding a solution to the problems faced by the people of that time.
In 1935, Mr. A.B. MacDonald, a pioneer in the Antigonish Movement, came to PEI to give a lecture on the adult education movement. Dr. Croteau took great interest and with the co-operation of many dedicated people, he organized a number of study groups across PEI and broadcast a series of lectures on adult education over the local radio station, CFCY. The Adult Education League was set up to direct the overall movement.
Dr. Croteau explained to the groups that a Credit Union was a co-operative credit society – a "baby bank" organized among a group of people and empowered by law to receive deposits and to make loans to the members of this group. Bank credit was scarce in the 1930’s and so the idea of setting up community banks to make credit available to hard pressed farmers struck a popular note.
By February 1936, ninety-three study groups had been organized, involving 1,612 members. In addition to studying Credit Unions, they learned about religion, ethics, history, oyster culture, fishing and economics. Many of these study groups resulted in the formation of a Credit Union.
The first Credit Union formed on Prince Edward Island was the Liguorian Credit Union incorporated in May of 1936 in Charlottetown. By December 31, 1937, there were 25 Credit Unions organized and functioning with 1,815 members. By 1944, there were 50 Credit Unions involving 6,880 members.
In 1938 the Prince Edward Island Credit Union League was formed. Dr. John T. Croteau was the first managing director and its mandate was to arrange promotional and educational meetings, distribute supplies and advise the offices. In 1942, the League joined CUNA, Credit Union National Association, an organization based in Wisconsin and formed in 1934 to spread the Credit Union idea.
Credit Unions were very successful in maintaining the dedication of their members but the onslaught of World War II brought problems that took many years to overcome. There was a high turnover of experienced managers, a large number of people joining the forces, no extra time to attend study groups, insufficient funds to keep many Credit Unions afloat and bad loans. In some cases, the Secretary-Treasurer went off to war, leaving Credit Union members unable to cash their bonds.
The largest number of Credit Unions to exist on PEI at one time was fifty-nine during 1956 and 1957 with a membership of 9,150 and total assets of $1,283,152. A major contributor to the survival of a healthy Credit Union movement on PEI was Mr. Joseph Gaudin. He became Managing Director of the Credit Union League in 1964. Mr. Gaudin set up a Stabilization Fund that would take over inactive Credit Unions by buying out all the shares and assets and paying off former shareholders and investors. Twenty-one Credit Unions were closed out. A consolidation program was then set up which saw many successful mergers all over the Island.
The 15-year Comprehensive Development Plan made provisions for the Credit Union League to negotiate with Government in obtaining a grant of $180,000. This enabled the league to secure good management and a guarantee that made it possible to borrow up to $2,000,000 in additional working capital to assist Credit Unions.
The consolidation of Credit Unions combined with good management has ensured the strong growth of the Credit Union Movement on Prince Edward Island. At present, ten Credit Unions and five branch offices are in operation with over 60,000 members controlling assets in excess of $500 million. They have proven to be major contributors in strengthening our Island communities.
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Provincial System
The provincial Credit Union System proudly provides a full range of products and services to its members throughout the province. Credit Unions, rooted in the communities they serve, have been an integral part of the community and have contributed to PEI communities since their inception over 65 years ago.
Operating under co-operative/credit union principles, the Provincial Credit Union System has experienced dramatic growth over the past years. Credit Unions currently service an Island membership in excess of 60,000, and financial assets under management in excess of 550 million dollars. Credit Unions play a significant role in the economic fabric of Island Communities.
The Prince Edward Island Credit Union System is comprised of:
- Ten Community Credit Unions (plus an additional five branch locations)
- Provincial network of twenty ATM/ABMs serving our members
- Provincial Assets in excess of 500 million
- Provincial Membership of an excess of 60,000
- Provincial employee compliment of 200 employees
- All Credit Unions are full-time service through modern facilities
- All Credit Unions offer a full range of financial products and services, including PC banking, business services and financial planning.
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National System
Through their ownership of the Credit Union Central of PEI, all Credit Unions on the Island belong to the national Credit Union system, which serves 4.7 million Canadians and has combined assets of over $78.5 billion dollars.
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