Several Sask. Credit Unions considering merger

Regina’s Conexus Credit Union is considering a merger with Credit Unions based in Yorkton and Lloydminster.

It’s a move they say will benefit customers. Currently there are 32 Credit Unions across Saskatchewan.

The merger would bring together Conexus Credit Union, Cornerstone Credit Union and Synergy Credit Union.

“So today, Conexus serves our members well from north to south but adding our two partners will cover the west and the east side of the province so members will automatically have access to a branch network that covers the entire province and that's 57 branches strong,” Conexus Credit Union CEO Celina Philpot said.

Merger talks are currently at the exploratory stage and all three credit unions are said to be in a strong financial position, further ensuring a merger would create more viability.

“There continues to be competitive pressures in the financial industry, all kinds of new entrants, regulatory pressure that is increasing so in order for us to be sustainable in the long term, we have to get together,” Conexus Credit Union board chair Ken Kosolofski said.

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Being part of a larger banking network can have a downside for communities, though. In 2019, Conexus closed nine branches mostly in small towns such as Mossbank as customers continue to switch to online banking.

“And as our members grow and change their preferences, we have to change along with them so our intension again is to provide that vast branch network and those changes are made regardless of a merger consideration,” Philpot said.

The merger would first need approval of members of all three credit unions. If it goes ahead, the credit unions could begin the process of joining forces as early as 2025.