BECOMING A FEDERAL CREDIT UNION

Throughout 2020, First West continued the foundational work necessary to apply to become a federally regulated credit union. In light of the COVID-19 pandemic, however, the credit union intentionally paused its plans to engage with members on this initiative. Instead, First West focused its resources on what mattered most in the moment—supporting our members, small businesses and communities during the upheaval brought about by the global health crisis. The credit union intends to bring forward its communication and engagement efforts with members on the matter of federal continuance in 2021.

First West’s Board and Management believes that members’ interests will be best served if the credit union moves under federal regulatory oversight and continues to responsibly grow across the country— strengthening the foundation that supports each of the credit union’s local brands. This is why we will be asking members for permission to apply to become federally regulated by the Office of the Superintendent of Financial Institutions (OSFI).

Our long history of responsible growth achieved through an intentional focus on being a community-based co-operative has enabled the credit union to remain resilient through difficult times. For instance, throughout the COVID-19 pandemic and the accompanying economic turmoil, First West demonstrated its ability to use its size and financial strength when needed, while nimbly responding to the needs of our local communities and members. From the onset of the crisis, members did not have to wait for the credit union to catch up; we were ready when they needed us most.

• We kept thousands of members in their homes through deferred payments, ensuring members did not default on their mortgages and loans.
• We were able to offer critical government financing programs to small businesses almost as soon as they were introduced, ensuring our small business owners had access to the capital they needed to keep their businesses running.
• Without missing a beat, we extended hours and doubled the size of our telephone-accessible Member Advice Centre. As a result, we were able to assist with tens of thousands of member inquiries and at the same time make countless proactive calls to members—a reassuring outreach to offer assistance and a caring, understanding ear.
• We accelerated our roll-out of Forge—our digital banking platform—so that members could make deferral payment requests, apply for CEBA loans, or make CRA direct deposits safely online.
• We were able to distribute more than $1 million in COVID-19 community funding and support to keep our towns and cities strong during this crisis.

First West and our local divisions—Envision Financial, Valley First, Island Savings and Enderby & District Financial—were able to do all this and much more because we have continually adapted to and readied ourselves to meet the current and future needs of our members.

Creating options for long-term viability and sustainability of any organization is critical, which is why we’re setting ourselves up for future growth opportunities and choice. We want to keep a good thing growing by becoming a federally regulated credit union. Gaining access to markets beyond B.C. means that when opportunity arises for the credit union or our members, we will be well positioned for success.

For more than a decade, First West has demonstrated that our multi-brand business model can be successful at working local while also leveraging the strength of our collective size. Together Island Savings, Envision Financial, Valley First and Enderby & District Financial have been able to provide more value for members than they could have on their own. Since coming together as First West, we have been able to:

• Eliminate or reduce every-day banking fees through best-in-class products. For example, since 2016 our no-fee Simply Free Account® has kept more than $100 million in our members’ pockets.¹
• Introduce leading online and mobile banking technologies. First West was the first credit union in Canada to release a brand-new mobile app, online banking portal and public website using the Forge Digital Banking Platform. This superior digital experience made it simpler, more intuitive and efficient for members to interact with us.
• Safely serve members through our Member Advice Centre. Launched in 2014, our Member Advice Centre has responded to more than 1 million member calls. When COVID-19 required our members to bank differently to stay safe—and keep others safe—our Member Advice Centre was able to pivot, increasing its size and offerings in order to meet the demand.
• Lead in our communities when they needed us most. Together as First West, the credit union has invested more than $28.1 million into our communities since 2010. In addition, throughout the COVID-19 crisis First West has been “in it together” with our communities and has contributed more than $1 million to local organizations to help with their pandemic recovery efforts.

We do not intend at this time to grow across Canada by building new branches in communities outside of B.C. However, new branches in other provinces may be added to First West’s branch network through any successful merger with other like-minded credit unions.

¹Average monthly fees are based on products with comparable features at national Canadian financial institutions as of October 20, 2020

Federal credit unions receive some of the highest levels of prudential oversight afforded to financial institutions in Canada through bodies such as OSFI, the Financial Consumer Agency of Canada (FCAC) and the Canada Deposit Insurance Corporation (CDIC). Stringent regulatory requirements protect our members’ interests and help us continually strengthen and improve our practices.

Since First West must currently operate in a single-province market, there is a risk to the credit union and its members if the province faces a significant economic downturn. By serving members and growing First West thoughtfully across Canada, we have greater opportunity to withstand regional economic dips or recessions.

We’ll be sharing more details about First West’s journey to become a federal credit union as we approach the vote date, including a comprehensive member information package outlining what won’t and will change as a federal credit union, risk considerations, important voting details and the proposed bylaws. We’ll also be launching a federal website (keepgrowing.ca) later this year. There, you’ll be able to download the full member information package and find answers to your frequently asked questions.

In the meantime, if you have any questions or need more information feel free to email us at  grow@firstwestcu.ca.