Gulf & Fraser Fishermen's Credit Union hooks Interior Savings Credit Union | General financial discussion | Discussion forum

Gulf and Fraser Fishermen's Credit Union appears to have reeled in Interior Savings Credit Union, with the two respective credit unions' boards approving moving forward with a business case merger proposal to the B.C. Financial Services Authority following initial discussions in October 2022. No name has been identified for the merged institution, but it's unlikely the Interior Savings name will be retained. What I suspect may happen is they'll either (a) choose a new name for the combined institution, or (b) adopt G&F Financial Credit Union (previously Gulf and Fraser's trade name) as the legal entity name.

With technology spending requirements, new FINTRAC requirements, and forthcoming payments clearing system changes coming, not to mention intense competition from HISA ETFs, fintechs (Wealthsimple Cash reportedly has between $3-5 billion in deposits), and a move to broker-sourced deposits (i.e., ISAs), credit unions face the biggest existential threat, moreso than the fintechs not just the banks.

Note: This comes as Interior Savings is set to close its merger with North Peace Savings Credit Union, effective July 1st, 2023 (https://npscu.ca/strongnorth-peace-savings-and-credit-union-members-vote-in-favour-of-joining-with-interior-savings--strong/). As well, in terms of the B.C. FSA, it's recently approved First West Credit Union's business case to be continued as a federal credit union. Expect accelerated credit union merger activity in B.C., with fully a dozen or more B.C. credit unions set to disappear within the next 1-2 years, I predict.

Cheers,
Doug