Frequently Asked Questions
Growth
This is about staying true to our cooperative values and growing in a way to remain sustainable for generations to come, this includes maintaining that strong connection to our local communities – where we started, and we have grown in the decades since.
Our aim is to be a truly province-wide credit union and becoming a federal credit union is not something being considered. We believe there is ample opportunity to grow and serve the needs of communities within British Columbia without the need to go further afield.
- Regulatory requirements, increased member expectations, competition for business, the evolution of technology and the financial services industry itself are calling on all credit unions to adapt and evolve to continue providing the best products, services, and advice to members, meaningful investment in our communities and an exciting and fulfilling workplace for employees.
- Looking at the challenges our industry is facing and the strength that comes from working together, we anticipate there may be other credit unions in BC who wish to join our new province-wide credit union. Our Board is open to these dialogues and considerations and will assess each opportunity independently, always operating in the best interests of members, employees, our communities and the credit union system as a whole.
- We want people all across BC to continue to have a credit union option in their local community. Joining together as part of a province-wide credit union is one way to secure this future.
Both credit unions have been actively engaged in different merger projects in recent years, and both believe the process is strategically valuable. The Boards and Management want to ensure we have an opportunity to work with our top credit union partners, and the sooner we can achieve this, the greater the competitive advantage will be for our organizations.
- Remaining strong and responsive to members’ evolving needs is very important and for all credit unions, including ours, and the complexities and costs of operating a credit union have vastly increased in recent years.
- Changing consumer expectations, increased competition, and advancements in technology means that scale is becoming more important for all credit unions.
- As cooperative organizations built on a foundational principle of working together for the benefit of all, we very much believe that by coming together, we will be able to do more for our members, employees, and communities than we could on our own.
- The combined credit union will be better equipped to pursue exciting opportunities that may not have been as easily accessible as stand-alone credit unions and exert more influence on a provincial and national level, within the everchanging credit union ecosystem.
Absolutely not. Both credit unions are well run and financially sound. Both Boards believe that a position of strength is the best time to merge and to retain the philosophy and values that our credit unions have been built on.
Our Application to merge was reviewed by the regulator, the BC Financial Services Authority (BCFSA). In late September, BCFSA gave their consent to proceed with a member vote on our Proposed Merger. Pending a positive membership vote, we aim for a merger effective date of January 1, 2024. Members of both credit unions will be invited to vote on the proposed merger between October 20 – November 6.
CEO of the new credit union will be Brian Harris, current President and CEO of Interior Savings.
By coming together, it is expected that the Merged Credit Union can leverage the collective strengths of Interior Savings and Gulf & Fraser to provide greater opportunities for employees, members and communities in a model that would maintain the local presence that is so valued. The Merged Credit Union is anticipated to have the resources and capital to invest even more in members, local businesses, and community in a way that neither credit union could do on its own.
What members and employees are seeking:
- Competitive products and services
- Added convenience and digital options
- More personalized advice and solutions
- More branch locations across the Province
- More support for businesses with larger lending capabilities
- More support for community
- An exciting place to work with opportunities to grow one’s career
Read more about the benefits in the Members’ Guide to Understanding the Proposed Merger.
With community commitment remaining a key focus, the Merged Credit Union will continue to offer a robust community investment program which is anticipated to see a boost due to the collective financial strength of the Merged Credit Union. By coming together, total community investment is anticipated to be $8.95 million over 5 years, which includes an incremental benefit of $850,000 during that period. This means more support for and investment in local communities.
Name and Brand
- As part of our planning, we heard from members and employees that it would be important for us to operate under one common name. Doing so will help unify our new organization as one team and will create clarity and consistency for members who use online banking or visit any one of our 55 branches across the Province.
- With that in mind, the legal name of the new credit union will be ‘Beem Credit Union’ however for 12-24 months, we will continue to operate our branches under our existing names: Interior Savings, North Peace Savings, Gulf & Fraser, and GFCU Savings.
- As a member-owned credit union, with a focus on people before profits, the name Beem represents our commitment to shining a spotlight on our members, helping them “befinancially empowered’ so members can achieve whatever matters most to them.
- It is important to remember that while our name will change, our values and commitment to serving our members and communities remain steadfast.
Members of Interior Savings and Gulf & Fraser
Two memberships are expected to be combined under one membership account when our core banking systems integrate in 2025. In the interim, the memberships would remain separate.
We will be reaching out to those members with memberships at both credit unions, and determining which branch is best suited as their home branch. Starting on January 1, 2024, you are welcome to visit any of Interior Savings, Gulf & Fraser, North Peace Savings or GFCU Savings branches to conduct your day-to-day banking.
The individual accounts you have with Gulf & Fraser and Interior Savings memberships will be merged under one membership but the accounts themselves will not be combined. In this scenario, you will have one membership and multiple accounts. For example, if you have a savings account with Gulf & Fraser and a savings account with Interior Savings, you will have two savings accounts when the memberships are combined.
Products and Services
Our credit unions are committed to providing you with same high-quality, personal service that exists today. At the time of the initial merger, you will notice little change to your banking, and you can continue to bank as you normally would.
Over time, we will integrate our systems and operations so that you will have more products and services available to you. The merged credit union would create a network of 55 branches along with insurance offices, from downtown Vancouver, through the Lower Mainland and Fraser Valley, into the Interior including the Okanagan, Thompson and Boundary and into Northern BC, including the Prince George and the North Peace region, offering personal, business, commercial, insurance and wealth management solutions and advice.
This merger, if approved, would create a unique regional model that would maintain the local presence that credit union members value.
For 12 to 18 months following January 1, 2024, you will notice little change to your banking, and you can continue to bank as you normally would, and:
- You can expect to be served by the same smiling faces you’ve come to know.
- Your deposits will continue to be 100% insured by the Credit Union Deposit Insurance Corporation of BC.
- Your direct deposits, cheques and automated transfers will continue, uninterrupted.
- Existing loans, mortgages and term deposits will also continue as is.
- Your member card debit card will continue to function.
- You’ll have access to the same or complementary products with more choices.
- More ways and more places within BC to connect with us.
- Both Interior Savings and Gulf & Fraser operate on the same banking system. In 2025 we will combine both systems and we anticipate the process to be much smoother than if we were on two different systems.
- Further, in planning for the transition, we have established dedicated integration team who is responsible for minimizing member and employee impact.
- Over time, we will integrate our systems and operations so that you will have more products and services available to you, including a network of 55 branches across the Province and improved digital services.
You will continue to enjoy the same guarantees with respect to your deposits through the Credit Union Deposit Insurance Corporation of British Columbia.
For the initial period following the merger, you should notice little change to your branch and how you bank. Members of both Credit Unions will retain their current products, accounts and other financial services unless you choose otherwise.
You will not need to change anything, and your direct deposit and other arrangements will continue to function as you expect.
Following the merger, you can expect to be served by the same smiling faces you’ve come to know. Both credit unions are committed to exceptional service to their members. During the integration process, we will develop a plan to enhance member experiences where service, responsiveness and a friendly approach will be primary considerations. The plan will include employee training programs to ensure employees are empowered to deliver the personalized service you have come to expect, whether you choose to bank online or in a branch.
Both credit unions have a reputation for providing exceptional service to their members. During the integration process of the proposed merger, the combined credit union will develop a plan to enhance member experiences where service, responsiveness and a friendly approach will be primary considerations.
Rates and fees?
- At the time of the initial merger, and for 12 to 18 months to follow, you will notice little change to your banking, and you can continue to bank as you normally would.
- Members choose to do their banking with Interior Savings and Gulf & Fraser for a number of reasons, including valuing what we offer in products and rates. With this in mind, we regularly review our offering to ensure we are competitive, fair and fiscally prudent. As a merged credit union, it will be no different than what we do today.
- Over time we will be looking to align to have the best possible member offering for the future. It would be premature to say there would be no change in the fees and rates, as there are many factors, including broader economic conditions that go into that process. However, ensuring we are fair and competitive for members is top of mind.
- We also know that as a combined credit union, we’ll be able to provide greater options than what we can offer today and will be more resilient to the challenges facing our sector.
Dividends, Patronage, Member Rewards
- Both Interior Savings and Gulf & Fraser have a history of offering dividends and patronage programs.
- Guided by our rules and the Credit Union Incorporation Act, each Board is responsible each year for determining whether to pay out dividends and patronage rewards, and the terms and conditions for doing so. The same will be true with the new credit union; it will be provisioned for in the rules with a determination made by the board of directors each year.
- For the year ended 2023, each credit union Board will determine the payouts for their respective legacy credit union. This will be communicated with members as per usual.
Maintaining community connection
- While we have operated in different parts of the province, there is much that the two credit unions have in common. We are two like-minded, values-aligned and financially strong credit unions who want to be able to do even more for our members, employees and communities.
- Local community connection is core to both credit unions and that will continue to be a priority.
The new credit union will have a governance model that maintains community-driven leadership, decision making, and connection. The new board will have representation from both credit unions, (including representation from recently merged credit unions) as well as community impact councils that will act as advisors to the board and will represent the interests of their respective communities.
- Our new credit union will have a governance model that maintains community-driven leadership, decision making, and connection. The Board has representation from both credit unions as well as community impact councils who will act as advisors to the Board, providing more opportunity for two-way dialogue on what matters most to their community, representing the interests of their respective communities.
- It is important to remember that is up to our members to nominate and vote for your Board. Our initial Board provides balanced representation across communities and our legacy credit unions. Going forward, we encourage members to remain involved in the democratic process and to ensure you are nominating and voting for Board members who best represent your interests and your community.
Furthermore, by coming together, we will be financially stronger which will mean we will have more to invest back into our communities. Total community investment is anticipated to be $8.95 million over 5 years, which includes an incremental benefit of $850,000.
Merger process
Eligible personal members can vote online or may request a paper ballot. Business members must vote via paper ballot. Voting is open from October 20 to November 6, 2023.
For more information on how to vote refer to this page: https://www.togetherwearebetter.ca/vote/
The boards of both Credit Unions have enthusiastically and unanimously approved this Proposed Merger for the benefits it offers the members, employees and communities of both credit unions. As a member, we encourage you to consider the board recommendation in your decision. If the Proposed Merger is not approved by members, each credit union will continue to operate as it does today however, it may be increasingly difficult to offer improved services.
With a vision to create a province-wide credit union that is different from anything else that exists today, the Merged Credit Union requires a brand and name that is reflective of this vision. There is an opportunity to clarify and amplify the Merged Credit Union’s identity and role within BC’s credit union system for a broad range of stakeholders, including employees, members, and the public, among others.
Both credit unions value the rich histories reflected in their current names. It was determined that the heritage brands of the credit unions would be maintained for a period of time. After this time, the Merged Credit Union will explore a brand refresh that continues to recognize the distinctness of each region while coming together under one brand, reflective of the Merged Credit Union’s legal name, Beem Credit Union.
The board of directors and executive leadership team for the combined credit union have been selected based on their experience, expertise and proven ability to build successful, values-based credit unions that are recognized for moving ahead while giving back to their communities.
Brian Harris, CEO of Interior Savings, will be the CEO of the Merged Credit Union. Bill Kiss and Jeff Shewfelt, Co-CEOs of Gulf & Fraser, will serve as Special Advisors to the CEO during the merger transition and integration and will remain with the Merged Credit Union for a period of time, playing a vital role in leading and supporting integration initiatives. Following this short transition and integration period, Bill and Jeff will retire. You can read more about the leadership structure in the Members’ Guide to Understanding the Proposed Merger.
Through the Proposed Merger, there will be opportunities for all employees.
There will be no branch closures or reduction in the hours of operation of the Gulf & Fraser or Interior Savings branches as a direct result of the merger.
Merger costs
- Our goal is always to be prudent in our spending, while also ensuring it is a smooth transition for everyone.
- When it comes to the long term costs of merging with another credit union, detailed financial modelling is completed as part of the due diligence review to ensure it will benefit everyone – members, employees and communities.
- And while there are increased costs that come with a merger, there are also many synergies. At the end of 5 years, we are projecting the financial synergies will outweigh the projected costs by $2.9 million; and while the merger costs are one time, the synergies and benefits will be carried forward in perpetuity.
- We also know that growth in other ways is costly. Opening new branches in new communities and acquiring members has a significant cost both in terms of financial investment and having to build awareness and reputation where it doesn’t exist today.
Board of Directors
- We engaged the services of a consultant to assist us in the development of a governance structure that will support our vision of a provincial credit union that benefits from scale and a greater share of voice in our province and system, while maintaining regional connection and influence.
- The initial Board of Directors of the Merged Credit Union will consist of 14 directors and include representation from both Interior Savings and Gulf & Fraser (along with the legacy credit unions previously acquired by Interior Savings or Gulf & Fraser). Over time, we anticipate the size of the board will be reduced to a more manageable 9-12 members.
- New Beem Board of Directors:
Doug Sweeting, Chair | Daniel Drexler, Director | Bruce Tisdale, Director |
Rob Shirra, Vice Chair | Elmer Epp, Director | Lee Varseveld, Director |
Linda Archer, Director | Reg Foot, Director | Bill Wilby, Director |
Karri Brinnen, Director | Nate Hampson, Director | Tracey Wolsey |
Christine Dacre, Director | Tracey Scott, Director |
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