The North's two most prominent credit unions are plowing through the global recession and moreover expanding.
Both Northern Credit Union and Caisse populaire des Voyageurs are making multi-million dollar in vestments in their organizations. Caisse populaire is expanding with three new branches and Northern Credit Union is building an $8 million corporate headquarters and a new branch in Sault Ste. Marie.
Caisse populaire has taken over branches from Desjardins Credit Union in Sudbury, Thunder Bay and Mississauga. In Sudbury and Mississauga, customers of the original credit union branches affected in the takeover will be absorbed into other neighbouring branches. In Thunder Bay, the existing branch is being kept.
“It's certainly a slower time for all financial institutions,” said Jean-Marc Spencer, executive director of Caisse populaire des Voyageurs.
“But we know it's all going to come back, so it's not necessarily a bad time to invest. When times are slow, you can concentrate more on development and so on, so we figure the timing is correct now.”
Through the acquisition, Caisse populaire des Voyageurs increases its membership by 2,000 and its business volume by more than $25 million a year.
“We believe we have the recipe that works correctly and have proven ourselves,” said Spencer.
“We think we have the correct formula to make these things viable and profitable and sustainable for long term.”
The takeover creates the equivalent of five full-time jobs in Sudbury at a time when layoffs in the city are rampant. So far, in 2009, three major Sudbury employers in Vale Inco, Xstrata and the Sudbury Regional Hospital have laid off hundreds of staff.
However, Caisse populaire des Voyageurs isn't the only credit union that sees a poor economy as a opportunity for investment. At Northern Credit Union, a 25,000-square-foot building will be constructed near the current headquarters on McNabb Street and house both the corporate offices as well as a 5,000-square-foot branch.
Slower growth in the current economic climate isn't discouraging Northern Credit Union from the investment, said Al Suraci, CEO of Northern Credit Union.
“Instead of hunkering down right now, we're investing in infrastructure, we're investing in our credit union and getting ready for when the economy gets back on track,” he said.
“This will approximately double our administrative space and allow us room to grow our business.”
Northern Credit Union isn't trying to cut costs buy constructing a minimalist building. The company's new central office will have green elements built into it, such as energy-efficient heating, ventilation and air conditioning. There will also be a courtyard in the centre, which will serve as a green area.
The groundbreaking occurred in mid-June. company expects to move staff in by June 2010.
“It demonstrates our confidence in all of Northern Ontario and the future of Northern Ontario,” said Suraci.
