greater together
Servus and connectFirst merger to proceed!
We did it! connectFirst and Servus Credit Unions have made history as we proudly announce that the merger has closed on May 1, 2024.
We could not have reached this milestone without the continued support of our members, for which we are so grateful. Thank you for your continued participation in the credit union way of banking.
Over the past months, we heard from and talked to thousands of our members, employees and community stakeholders. We appreciate their insights and feedback, and we thank every member who has participated in the process. For further information, take a look at our member guide.
Both credit unions will continue to operate largely as they have while planning a longer-term integration effort. While the new, combined credit union is now under unified leadership, most member-facing activities will continue to operate largely as they have before. We remain committed to transparency and open communication as this journey unfolds, and we will keep you informed of developments as they occur.
In the meantime, thank you for your continued support and commitment to the credit union way of banking!
We are thrilled about the future as we build one of the strongest and most sustainable credit unions in the country – a credit union by Albertans, for Albertans.
Why we believe we’ll be greater together:
connectFirst and Servus credit unions proudly serve you and the people of Alberta. We have put our hearts into caring for your money, the careers of our employees, and the communities where we live and work, all while delivering smart advice, products and services.
However, we believe that by merging our credit unions together, we can do even more for you. Powered by over 3,000 great hearts and minds, we want to create the credit union of tomorrow, today. We want to be Greater Together.
With more heart, we’ll give you more personalized service, more support for your business and more help for our communities. With more smart, we’ll implement sophisticated money management services, modernized online and mobile platforms, and more innovative products and tools. We’ll enable you to bank seamlessly how and where you want, and we’ll offer one of the most comprehensive branch and ATM networks in Alberta.
And together, as a stronger credit union, we can better compete with the big banks and emerging fintech companies, provide more opportunities for our employees and greater job security and, most importantly, help our communities, businesses and the province continue to thrive.
Why merge:
Financial services are changing faster than many of us have seen before. How?
- Sophisticated new players are bringing big budgets and innovative products and services.
- Upstart fintechs are building and quickly introducing new technologies.
- New players are pushing financial services and apps faster and in new directions.
As two of the most successful credit unions in Alberta, connectFirst and Servus can survive these challenges individually. But we want to do more than that. Together, as a merged credit union, we can position ourselves at the forefront of financial services in Alberta, ensuring the credit union way of banking thrives alongside the major banks and fintech companies in this dynamic landscape.
Benefits:
For members:
Greater ability to bank where, when and how you want.
Increased ability to invest in new, innovative products, tools and services to meet your evolving needs.
More than 3,000 employees dedicated to deeply understanding your needs and finding solutions to match.
A stronger credit union that is a member-focused, values-driven alternative to big banks.
A truly province-wide network of branches, with more than 140 branches in 80 communities.
Commitment to remaining in every community served by Servus and connectFirst today.
For employees:
A culture that builds on the strengths of each individual organization.
Opportunities to achieve great things with more like-minded professionals who share a passion for credit union values.
New career opportunities and more professional development.
Access to more tools and resources.
For communities:
Increased ability to support Alberta’s communities.
Combined expertise and commitment to all Albertans – rural, urban, newcomers and multi-generational residents alike.
More opportunities for members to contribute time and money to the communities and causes that matter to them.
More opportunities to foster meaningful connections and a sense of belonging in each community.
“This is an opportunity to create the credit union of tomorrow and fast-track our ambitious plans to put even more heart and smart into what we do for our members, employees and communities.”
Ian Burns, President & Chief Executive Officer, Servus Credit Union
FAQs:
OVERVIEW OF THE MERGER
Q: Why merge?
The level of investment required to deliver modern, member-first services is significantly aided by economies of scale for credit unions. By merging two of the largest credit unions in Alberta, connectFirst and Servus can pool our resources, share our expertise, and invest in the technology needed to compete effectively today and thrive in the future.
Together, we are greater than the sum of our parts. Our shared passion for personalized member service, community, and cooperative principles, plus an increased ability to invest in the systems and tools necessary to ensure a strong future for a merged credit union, means great things are ahead for members, employees, communities, and the credit union system.
By bringing connectFirst and Servus together, the merged credit union will be one of the largest in Canada with over $30 billion in assets under administration, more than 3,000 employees, approximately 500,000 members and more than 140 branches in 80 Alberta communities. Together, we will be able to operate at the scale necessary to survive for the long term and preserve the cooperative values and ways of banking that are so important to our members, employees and the communities we serve.
Q: What is the vision for the merged credit union?
Servus and connectFirst share a vision for a merged credit union that offers better, more personalized experiences for our members. This would be a credit union that invests in modern banking solutions and empowers members to bank how and where they want. This would be a truly province-wide credit union that is rooted in cooperative values and supports communities all across Alberta.
The merged credit union will build on the best of the individual credit unions to create a joint entity that is sustainable and future-thinking. It will harness the power of our collective experience and expertise to imagine new solutions, and then use our combined resources to bring them to life. Together, we can and will build the credit union of tomorrow, today.
Q: How will the merging of these two credit unions benefit members?
Working for the best interests of members is the main driver behind exploring a merger. It is expected that this merger would have significant benefits for members, including:
- The combined strengths of each organization will allow us to enhance member experience and serve additional members as we continue to grow in the future.
- Members would benefit from economies of scale in many areas, including increased investment in technology.
- The scale of the new entity would afford greater investment than either organization could make individually into things like mobile banking enhancements and innovative products and services.
- The geographic reach of a joint organization would be greater than it is for either Servus or connectFirst today, enabling a truly Alberta-wide credit union for members.
- Please see the Member Guide for additional details.
Q: What will be the name of the merged credit union?
Both Credit Unions will continue to operate under their current brands for a period of time. Following completion of the proposed merger, the board of directors will decide on a name for the new credit union with the support of independent third-party advisors. Since some documents will require a legal name for the merged credit union during this interim period, we have registered the name “Connect First and Servus Credit Union Ltd.”
Q: When would the merger take effect?
The connectFirst and Servus merger closed on Wednesday, May 1, 2024.
Q: Where can I learn more about each credit union’s financial status and history?
View our financial information:
- Servus Credit Union Financial Statements: https://servus.ca/about/our-organization/performance
- connectFirst Credit Union Financial Statements: https://www.connectfirstcu.com/en/about#policies
GOVERNANCE & LEADERSHIP
Q: What will the board of the new credit union look like?
The board of the new credit union will be populated by seven directors from Servus and five from connectFirst. Each board went through a robust process to determine which of its directors would carry forward – ensuring the new credit union has the right mix of skills and ensuring a strong voice and representation for all members throughout the new organization.
These board members were previously elected by the respective memberships of each organization and will continue to be elected by members in subsequent years.
Q: Who will become CEO of the merged credit union? Why?
The two boards have agreed that Ian Burns, President and CEO of Servus, would take the helm of the merged organization. Ian brings a wealth of leadership experience in the financial services industry including the CEO role at Alberta Central where he focused on strengthening the entire Alberta Credit Union System. With this and other professional experience, Ian is very well positioned to lead the new credit union into the future.
Q: Who will be on the new executive team?
The makeup of the leadership team for the new credit union has yet to be determined. As announced in 2023, Ian Burns is the President & CEO of Connect First and Servus Credit Union.
Q: What will be the location of the head office of the new merged credit union?
The merged credit union will operate with a distributed workforce, leveraging the successful hybrid work policies currently in place for both credit unions. Impacts to work locations are not expected for the vast majority of employees, including leaders.
Subject to membership and regulatory approval of the merger, connectFirst’s existing office (2850 Sunridge Blvd NE #200, Calgary, AB T1Y 6G2) will be the registered office for the new credit union. This is for legal purposes only and will not affect the locations where Servus or connectFirst employees will work.
MEMBER BANKING
Q: How will the merger affect my current accounts and my day-to-day banking?
Nothing will change on the day the merger takes effect. The process to integrate our two organizations will take time. This means the new combined credit union would continue to operate with pre-merger systems for a period of time.
All products and services that currently exist will be available in the new credit union. The merged credit union will continue to offer a full suite of products for retail and commercial members. (This includes paper cheques, account or card numbers, pre-authorized deposits and withdrawals, credit cards, investments, RRSPs, fees, and any other products or services that members enjoy today.) Over time, the merged credit union will have the opportunity to offer more to members with enhanced products and services.
We are committed to minimizing disruptions to our members through any change by keeping member service and satisfaction at the forefront of any decisions. Any change would include a communication plan so that members receive timely information about the process and any potential impacts.
Q: Will my branch, online banking, or ATM be impacted by the proposed merger?
Members will continue to access their current credit union branch and online and mobile apps until instructed otherwise. After the merger is approved, it will take some time for the two credit unions’ technologies to become integrated. Work is underway to establish an interim solution that would allow members to bank with either credit union. Members will receive ample communication in advance of any changes that impact daily banking. Any such changes are intended to enable members to benefit from the broader branch network and capabilities of the merged credit union.
The merged credit union would continue to serve the more than 80 Alberta communities served by Servus and connectFirst today. There is no intent to leave communities where we currently serve members. There are a small number of locations, primarily in urban centres, where we have two branches in close proximity. For these very few locations, we will assess and determine which locations will best continue to serve members. Where branches are consolidated to a single location, members will be well informed of any such change and all employees will be offered positions to continue to serve our members.
Q: Will there be an impact on member experience/customer service as a result of the merger?
Working for the best interests of members is the main driver behind exploring a merger. The combined strengths of each organization will allow us to enhance member experience and serve additional members as we continue to grow in the future. This includes in-person service at our branches or call centres, as well as new technology to enhance the experience of members who prefer to bank online.
Q: Will deposits still be guaranteed?
Yes. Nothing will change in this regard. All cash deposits with Alberta credit unions are 100% guaranteed by the Credit Union Deposit Guarantee Corporation (CUDGC). Simply put, members’ deposits with us are 100% guaranteed by the government with no ceiling on the amount.
Q: Will the merger impact the Patronage or Dividends that I currently get paid? How will my shares and dividends be impacted by the merger?
The capital position of each credit union is different but complementary. As a result of comprehensive financial modelling and a thorough business case, our expectation is that the value of membership will increase over the six-year forecast period.
Investment Share dividends will follow the terms outlined in each prospectus for those members that hold these shares.
The rates for Patronage and Common Share Dividends will be the purview of the new board. Therefore, those decisions will be made after amalgamation approval. Having said this, as members are our owners, we do know that Patronage and Dividends are important to our membership and careful consideration will be applied by the new board when establishing dividend rates.
As a reminder, for both existing credit unions and the new credit union, dividends are not guaranteed and are dependent on a number of factors, including profitability levels achieved each year.
Common shares held by members in either credit union will be exchanged for the same number of common shares in the merged credit union. Investment shares of any series held by members in either credit union will be converted into an equal number of series of investment shares of the merged credit union. So, if you have $100 in shares with one of the credit unions today, you will have $100 in shares in the new credit union after the merger. The rights and restrictions on a series of investment shares would remain the same through the conversion. Overall, the intention of the merger is to create additional value for all members.
Q: Will I still see the same employees in-branch?
We understand this issue is of great importance to employees and the members they serve. All employees will be offered a role in the new credit union and layoffs will not occur as a result of this merger. New opportunities will be available in the new, larger organization, such as different roles, career paths and professional growth opportunities. It is expected that this merger would have significant benefits for members, including enhanced member experience. Our employees are critical to the success of our credit union and member experience!
COMMUNITY COMMITMENTS
Q: What would happen to long-term community commitments made by each organization?
As cooperatives, serving members and the community is at the heart of what we do. Should we merge, this will continue to be the case. Long-term agreements in place with either organization would be honored, subject to the terms of those agreements. Together, both credit unions contribute more than $2.8 million to the community each year. The merged credit union will be able to use our financial strength to show up in even more impactful ways in those communities in the future.
Q: Will Servus continue the Big Share and Million Dollar contest?
No decisions have been made yet on any programs, including the Servus Big Share one-million dollar contest. We know that the contest is valued by members and the decision to continue it should the merger proceed, will be carefully considered.
MEMBER ENGAGEMENT
Q: Can I attend member information sessions virtually?
Unfortunately, no. The member information session events are in-person. If you can’t attend a member information session and you have questions about the proposed merger that are not addressed on this website, email our merger team at merger@connectfirstcu.com or merger@servus.ca, or speak with an employee at your branch.
Q: Are meeting minutes available from the merger member information sessions?
Minutes are not taken at any of the merger member information session events. These events are informal and informational in nature, and as such are not governed by the Credit Union Act as an Annual General Meeting (AGM) or Special General Meeting (SGM) are. Minutes are not required in this process. The structure of the meeting with separate conversation stations is designed to provide one-on-one or small group discussions with Board and Executive members so that everyone can ask questions and share concerns in a way that is comfortable for them and in which their confidentiality can be maintained. However, we do debrief after each session to capture the general discussion themes arising at conversation station hosts. We gather these (without identifying any member) and seek the guidance of our subject matter experts where required, to update the presentation used at these events, and to post information on the https://greatertogether.info website so that all members may benefit from the information. Thematically, members have been interested to learn about the drivers for the merger, the benefits of it and the impacts. Information on all of this is detailed in the Member Guide available at greatertogether.info.
VOTING
Q: I have a business and a personal membership in the credit union. Will I vote for each in the SGM about the merger?
Trustees, corporations, partnerships and associations are allowed one vote by the designated representative.
A member may vote only once unless a member is also a designated representative of an organization.
In the case of a joint membership, each person will be allowed a vote as long as they have not already voted on another personal membership. There must be at least one common share for each voting member on the joint account. Once votes have been cast, no further votes will be permitted on that membership.
Q: What constitutes a ‘YES’ vote?
Quorum for each Special General Meeting (SGM) is 150 voting members. To pass the Special Resolution approving the merger, two-thirds (2/3) majority of the votes cast at the meeting must vote in favour of the resolution. This applies to both Servus and connectFirst’s respective SGMs.
Q: Why have you changed to an in-person Special General Meeting?
To ensure we are providing members with a new opportunity to vote as soon as possible, we have switched to an in-person format. This change in format is for a variety of factors, namely the delay this vote has already experienced due to technology challenges, we wanted to ensure our members get to vote on this proposal as soon as possible. With the condensed planning and lead in time for this new date, we made the decision to remove the complex technological element that comes with a virtual meeting and have this rescheduled Special General Meeting in person.
Q: Why can’t I drop my vote in at a branch, or vote when it’s convenient to me like I can for Director Elections?
We would love to be able to offer you more flexibility in voting on the intent to merge, however due to the Alberta Credit Union Act, the vote on this resolution (i.e. the intent of connectFirst and Servus to merge), has to take place within a general meeting.
Progress:
Here are the phases of the proposed merger between connectFirst Credit Union and Servus Credit Union.
<h4>Exploration</h4>
Late 2022 – Boards of Directors of both Credit Unions initiate merger discussions.
March 2023 – Intent to merge is announced.
<h4>Due Diligence</h4>
March 2023 – Joint Steering Committee of Board members is created to guide and oversee merger discussions.
April 2023 – Due diligence begins.
May 2023 – Alberta credit union partners engaged to explore how the merger may affect the credit union system. This engagement is ongoing.
July 2023 – Due diligence completed. No material risks identified. Member benefits confirmed.
<h4>Board Approvals</h4>
August 2023 – Both Boards approve the business case, due diligence, and amalgamation agreement.
<h4>Member engagement</h4>
August 2023 – Special General Meeting announced to members.
August 9th, 2023. The Greater Together campaign is launched to educate members about the merger and how to participate in the vote, and provide opportunities to share feedback and ask questions.
<h4>Member Vote and Voting Results</h4>
Servus’ Special General Meeting took place on September 19th, 2023, with 84% of the membership in favour of the intent to merge.
On November 9th, 2023, 85% of connectFirst’s members voted in favour of the intent to merge during the Special General Meeting.
The final step is regulatory approvals, which are currently underway.
<h4>Regulatory approvals</h4>
Assessment in progress.
Contact:
We’re here to help answer any questions you have about the merger or merger process. Please contact your credit union directly or stop by your local branch.