A History of Service Excellence

On the day that BC’s first credit union opened its doors way back in 1936, we made history. Running a financial institution on the principles of democracy may not seem like a radical idea today, but in the first half of the 20th century, when profit-motivated banks made it difficult for the average citizen to borrow or invest, it was revolutionary. Ever since, credit unions have helped shape the economic and social quality of life in British Columbia. As our history shows, the balance of service excellence, sound financial practices, and a commitment to community has attracted more and more British Columbians over the decades. Here's some insight into the history of credit unions in BC.

A new way to do business

The idea of people bypassing traditional banking to pool their money and resources, and make loans to each other, became popular in 19th century Europe. This new form of cooperative money management soon spread to Canada. Canada’s success impressed Americans, who used the Canadian model for their own credit union movement.

In the 1900s, Quebec was the first province to introduce credit unions, called caisses populaires. English-speaking Canada followed in 1908 with Ottawa's Civil Service Savings and Loan Society. It wasn’t too long before credit unions spread westward. In the 1930s, as a response to the financial hardships of the Great Depression, Prairie farmers embraced the new opportunities credit unions provided. In BC, workers followed their example.

Buddy can you spare a dime?

The 1930s were difficult for everyone. Banks were hit hard by the stock market crash of 1929, and didn’t encourage small loans or savings accounts. For the average citizen just scraping by, an alternative was needed. In 1936, BC’s first credit union was opened in Burnaby by members of the Common Good Cooperative Association. Responsible, hardworking citizens were able to secure loans on the basis of character and their reputation in the community.

Mutual cooperation

In 1940, the province’s credit unions unified to form BC Credit Union League and then, in 1944, created BC Central Credit Union, which pooled members’ assets, enabling stronger financial growth. The Second World War fuelled the provincial economy. Credit unions grew in size and number. Near the end of the decade, the League moved into its own building in Vancouver, sharing it with several member credit unions.

A new era of prosperity

In 1950, BC credit unions had assets amounting to $1 million. In the mid-50s, the federal Cooperative Credit Associations Act established the Canadian Cooperative Credit Society (C.C.C.S.), the national umbrella organization now known as Credit Union Central of Canada (CUCC). Provincial credit unions across Canada combined resources to enable better service to members.

Peace, love and credit unions

The 1960s are known as a decade of tumultuous social change. Credit unions played a role in making the change progressive. Cheque-sorting machines were introduced, a first step toward full automation. A cooperative retirement savings plan was born, and open mortgages became available. Plan 24, the industry's first daily interest savings account, took shape.

Technology’s new wave

In the 1970s, BC Central Credit Union became the single umbrella organization for all of BC’s credit unions. Starting in 1971, Central's data processing team began development of an online real-time computer system for credit unions.

The power decade

By 1983, BC’s credit union assets had reached $1 billion. The system joined the Canadian Payments Association, a newly-formed clearing organization for Canada's financial institutions. BC’s credit unions sponsored the UN Pavilion at Expo ’86. Credit unions join the Interac Association, enabling members to use the ATMs of all major financial institutions, coast-to-coast.

Explosive growth

At the beginning of the 1990s, BC credit unions owned combined assets of $12 billion and membership stood at 1.1 million. By the decade’s end, assets amounted to $25 billion and membership had skyrocketed to more than 1.4 million. Member Card® became the common device for electronic banking, and would become the national credit union standard. Visionary restructuring ensured organizational efficiency, while maintaining the independence of credit unions.

Here comes the future

Today, one out of three British Columbians belong to one of the province’s 48 credit unions in 140 communities. BC has more credit union members than any other province in English-speaking Canada. Credit unions continue to contribute to their communities, in ways that ensure a secure and sustainable future for the province.

With 40% of national credit union assets, BC’s system is the strongest in English-speaking Canada. And with each new member who switches, we just keep getting stronger.

Hate red tape? So do BC's credit unions. That's why they're committed to making your financial transactions accessible and straightforward. We make switching easy too. Just complete our online form to switch now.