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Insight. Innovation. Industry. January/February 2018
The Immigration+Opportunity Issue
> Newbie entrepreneurs get a leg up
> Capitalizing on remittance payments
> Helping new immigrants integrate
> Stymied by inflated housing markets
9 770319
ISSN 0319-8626
862002
01
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INSIDE
January/February 2018 Vol. 77, No. 1
To subscribe to Enterprise (it’s free!) or update your
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Editor-in-Chief Enterprise is published six
Roberta Staley times a year by the Canadian Credit
Union Association
Consulting Editor
151 Yonge Street
Suzanne Peters
Suite 1000
Art Director Toronto, Ontario
Stu Ross Canada M5C 2W7
Editorial Assistant Contact
Veronica Mastroianni Roberta Staley,
Editor-in-Chief
Contributing Writers
E rstaley@shaw.ca
Brenda Bouw
Sarah Brown Publisher
Art Chamberlain Martha Durdin, President & CEO,
Alexandra Gill Canadian Credit Union Association
Wendy Goldsmith
Send change of address notices to:
Alexandra Samur
enterprise@ ccua.com
Contributing Artists
Cover Illustration
Stu Ross
Stu Ross
© 2018 Canadian Credit Union Association. All Rights Reserved.
The publication is provided for informational purposes only. The
information in this publication does not constitute legal or business 16
advice. The opinions expressed in articles in Enterprise are the
authors’ and not necessarily those of Enterprise or Canadian Credit
Union Association. In addition, the inclusion of an advertisement does
not imply an endorsement of the product or service by Enterprise or
Canadian Credit Union Association. Enterprise will not knowingly carry
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any advertisement. Both Enterprise magazine and Canadian Credit
Union Association disclaim any and all warranties, whether expressed
or implied, including (without limitation) any implied warranties
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Enterprise nor Canadian Credit Union Association will accept any
responsibility for the reader’s use of the information and / or opinions
presented in Enterprise or any loss arising therefrom. Any copying,
redistribution or republication of this publication or its content is
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issn 0319-8626 | pm# 42643036
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LM to replace
{FEATURES}
12 Small Loans–Big Payback
New entrepreneurs rely not only on micro
loans to get their businesses up and running
but specialized programs and advice.
BY BRENDA BOUW
16 Getting Burned
What chance do young people have of getting into
Toronto and Vancouver’s overheated housing markets?
BY ART CHAMBERLAIN
20 Building Better Communities
Credit unions can help new Canadians, who face many
long-term integration challenges. BY ALEXANDRA SAMUR
12
26 Money On The Fly
Remittance payments are a billion-dollar
growth opportunity for credit unions serving
ethnic communities. BY ALEXANDRA SAMUR
20 {COLUMNS} {MORE}
10 Close Up
Tochi Sandu of BC
celebrates 60 years
04 Editor’s Note
Tackling financial
inequalities.
of financial service.
BY ALEXANDRA GILL
06 Concierge
Publishers message,
30 Work Life
Social media
has become a key
paying with a gloved
swipe at the Olympics,
Servus Credit Union
marketing tool. backs science and
BY WENDY GOLDSMITH Blueshore Financial
and CDF Canada are
31 Marketing Matters
How to engender trust?
Make ‘em laugh.
honoured.
BY SARAH BROWN
32 By The Numbers
Not everyone has equal
access to Canada’s riches.
BY ROBERTA STALEY
{ONLINE}
enterprise-magazine.com
Online Check out Enterprise online for exclusive
stories, news, in-depth features, back issues + more.
26 10
Jan/Feb 2018 3
EDITOR’S NOTE
Tackling financial inequalities
G
enerally, Canadians all agree how credit unions are offering but specialized
lucky we are to be living in this vast, programs and expertise to ensure these
beautiful and peaceful nation that is neophyte enterpreneurs are able to navigate
populated by a generous, polite and the many challenges that business owner-
welcoming people who share remark- ship throws their way.
able gifts: universal health care, Enterprise also looks into the
free education and a society that long-standing tradition of remit-
celebrates ethnic and religious differences tances — when Canadians send money
through multiculturalism. to their home country — an astounding
But that’s not the case for everyone, $30 billion in 2015. Anyone who has sent
as we analyze in this first issue of 2018, money to a developing nation knows how
expensive the fees can
be and credit unions
are embracing the
opportunity to involve
themselves in this
financial subsector
by offering easier and
cheaper ways for credit
union members to send
money back home.
In “Building better
communities,” we look
at some of the innova-
tive and imaginative
Roberta Staley EDITOR-IN-CHIEF
ways that credit unions
rstaley@shaw.ca
are undertaking to try to
help integrate newcom-
themed Immigration and Opportunity. ers into Canadian society on a social and
Statistics, compiled for By The Numbers, cultural level. The feature “Getting burned”
reveal that poverty in Canada is an offers a clear-eyed view of how difficult it
overwhelming and persistent challenge is for young- to middle-aged families and
affecting not only the poor: immigrants, individuals to break into Toronto’s and Van-
refugees, the elderly and Aboriginals, but couver’s housing markets and what credit
Canadian taxpayers as well, who must unions can do to help ease the way for new
fund the offshoots of impoverishment: homeowners. Spoiler alert: not much.
soup kitchens, shelters, police, correc- Enterprise also offers the usual gamut
tions and increased healthcare costs. of engaging reads from our regular depart-
But there are things that people and ments and, last but not least, we’re tickled
organizations — like credit unions — are pink to report that we are under new man-
doing to help tackle this scourge. In “Small agement. As you can read on Page 7, we
loans — big payback,” Enterprise looks have a new boss, Martha Durdin, President
at the remarkable impact that microloans and CEO of the Canadian Credit Union
are having on the lives of immigrants who Association (CCUA), and we anticipate an
are carving out a new life by developing exciting year under her dynamic and inspir-
a small business. It’s not just loans that ing leadership as publisher.
SHUTTERSTOCK
4 Jan/Feb 2018
The Cusource 2018 Virtual Conference Calendar is now available for registration Take advantage of these great opportunities to build your professional development without leaving your desk! 2018 Virtual Conferences Managing and Leading Others January and September 2018 The World of Agriculture March and November 2018 All Things Digital April and October 2018 Facing Our Members May and November 2018 Business Accounts June and November 2018 REGISTER NOW! Visit ccua.com/cusource for more information
I N D U S T R Y N E W S, STATS, FA CT S + M O R E
BY ROBERTA STALEY
CCUA takes over as
publisher of Enterprise
BY MARTHA DURDIN
This issue of Enterprise represents another
milestone for our system. Last year, the
Canadian Credit Union Association shuttered
its Insights magazine in anticipation of
Enterprise shifting from Central 1 Credit
Union to CCUA. This Central 1 consolidation
removes duplication and enhances knowledge
sharing among credit unions across Canada.
In each issue, readers will continue to
benefit from coverage about credit unions.
You will also note a few changes to the
magazine. Formerly known as The Voice
of Canada’s Credit Unions, Enterprise
is now positioned as Insight.Innovation.
Industry. We are broadening the editorial
direction to focus on economic, financial
and social trends — global as well as
national — impacting our country, credit
unions and their members. Feature articles
will have the context of such macro subjects
as Immigration and Opportunity — which
happens to be the theme of this issue — and
will address relevant challenges and oppor-
tunities for credit unions.
We are also launching an editorial board
to help guide the direction and content of the
magazine. We’re grateful for thought leaders
across the system who will help deliver valu-
able insights to our readers.
Through the year, you will also see our
efforts to bring thoughtful, timely content
to you through social media and enter-
prise-magazine.com.
I would like to thank the team at Central 1
for their transition support and stewardship
of Enterprise magazine over the years and for
creating and archiving more than 70 years of
valuable coverage about our system. We are
also grateful to Roberta Staley, Stu Ross and
the extended Enterprise team for their contin-
ued involvement with the magazine.
TERENCE SCARNICCHIA
MARTHA DURDIN IS THE PRESIDENT AND CEO
OF THE CANADIAN CREDIT UNION ASSOCIATION
6 Jan/Feb 2018
TECHNOLOGY
Visa’s tap-and-pay goes the Olympic distance
It won’t just be the athletes of the in a media release last November. The wearable stickers, which
XXIII Winter Olympic Games and The gloves contain a dual come in eight distinct designs,
Paralympic Games using the latest interface chip housed with a con- feature a thin and flexible
technology as they skate, ski, slide, tactless antenna and are embed- adhesive with an embedded dual
leap and twirl their way to glory this ded with prepaid South Korean interface containing a near-field
Feb. 9-25 in PyeongChang county, Wons equivalent to $35 or $50. communication (NFC) chip and
South Korea. This payment method ensures antenna that can be attached to
Spectators and athletes alike that users can make a purchase virtually anything for seamless
will be able to make payments with throughout official Olympic venues payments. They will be available
a simple tap of a terminal with without risking cold hands by in a variety of denominations
one of three wearable payment taking their gloves off. valued from $35 to $235.
devices: gloves specially suited to The pins were inspired by the Visa, which is the exclusive
PyeongChang’s sub-zero weather, as venerable tradition of Olympic payment technology partner at
well as Olympic pins and stickers. Games pin trading and collecting. the games, teamed up with Lotte
The items allow users to complete Visa is offering four unique official Card, the financial arm of South
seamless and secure payments with PyeongChang Olympics 2018 lapel Korean-based retail giant, Lotte
a simple tap at any contactless-en- pins that also contain embedded Department Store, to create the
abled terminal, Visa Inc. announced prepaid amounts. NFC-enabled payment devices.
VISA / SHUTTERSTOCK
Jan/Feb 2018 7
CONCIERGE
\COMMUNITY to real-world financial challenges GLOBAL
and professional development for
Servus Credit Union Servus employees.
“Servus Credit Union is Malawi fetes partnership
embraces science privileged to work with the
University of Alberta to grow with CDF Canada
A new partnership between Servus our understanding and use of
Credit Union (380,000 members, artificial intelligence and data The Co-operative Development Foundation (CDF) of Canada
$14.8 billion in assets) and the science here in Alberta,” Servus was recognized with an Honorary Distinguished Service
University of Alberta Faculty of CEO Garth Warner stated. “As an Award by the African Confederation of Cooperative Savings
Science — the first of its kind for Alberta-based company, we want and Credit Associations (ACCOSCA) in Malawi last October.
an Alberta-based finan- The award recognized CDF Canada’s 70-year history
cial institution — was of helping communities around the world forge their own
announced last pathways to sustainable livelihoods through cooperative
November. development, in particular the mentoring of women.
Servus, which CDF Canada chair
is headquartered in Michele Aasgard trav-
Edmonton, reported eled to Lilongwe, Malawi
that it will provide to accept the award from
nearly $1.6 million in ACCOSCA chairperson
funding over five years Josephine Nabuyungo.
to support research “Our engagement with
projects in data sci- ACCOSCA reflects CDF
ence, artificial intelli- Canada’s philosophy of
gence, machine learning, natural to build a program that we can successful partnerships
language processing and related learn from and we want to nurture based on a shared
areas. The partnership will also and retain talent that will benefit vision, respectfully
embrace joint research projects, us and the province as a whole. frank communications,
the creation of a new industrial Our ultimate goal is to improve the mutual learning and
research chair, opportunities for financial fitness of our members being responsive to local
graduate student research applied and Alberta.” needs,” Aasgard said.
COMMUNITY
BlueShore Financial nabs leadership award
Chris Catliff, CEO of BlueShore Financial Credit Union (40,000
members, $5 billion in assets) in British Columbia was honoured
last October as a 2017 BC CEO Award winner in the large com-
pany category. This prestigious award, presented by Business in
Vancouver and MacKay CEO Forums, a Canada-based CEO devel-
opment program, celebrates the best of BC’s business leaders.
“This award is a testament to the passion, talent and ded-
ication of the 340-person BlueShore team who contributes to
our business every day,” Catliff said in a media release. “I am
proud of everything we have accomplished and honoured to
be recognized among such outstanding leaders.”
Catliff was selected for the award based on BlueShore
Financial’s vision and strategy, financial performance, people
PAUL GRDINA
development, innovation and social responsibility.
8 Jan/Feb 2018The value of a
professional
strategic
partner
We help Boards and Executives
make sustainable, differentiated
improvements in the performance
of their credit unions.
Strategic Planning
CMC Designation
Enterprise Risk Management
CUNA CUERM Certified
Governance Assessments
ICD.D Designation
Team Effectiveness
HBDI® Certified
Culture Development
Human Synergistics® Certified
A wide range of other services
We are a national credit union
consulting company with clients
from coast to coast. Large or
small, rural or urban,
we help all credit
unions succeed.
Your credit union,
your way.
FINANCE Larsen told Bell Media’s Business News
Network (BNN) that his fund isn’t buying
Bitcoin a bit too into Bitcoin due to concerns about the
illegally generated cash flowing into
cryptocurrencies. “We are a bit skeptical
dodgy for some in the sense that it’s not really regulated;
you’re not really sure who’s behind this,”
Larsen told BNN. “Personally, I do not
like the fact that you know there’s a lot of
Bitcoin, the enigmatic virtual currency, drug money, there’s a lot of illegal money kim@andresconsulting.ca
which doesn’t require a financial institution in these cryptocurrencies.” www.andresconsulting.ca
as a middleman, may have a dark side. As of last October, bitcoin was worth
Ontario Teachers’ Pension Plan four times more than the price of gold, 604.218.6076
chief investment officer Bjarne Graven according to The Guardian.
SHUTTERSTOCK
Jan/Feb 2018 9CLOSE UP
Chance meetings
Sixty years of service in the financial
industry prompts a letter of congratulations
to Envision Financial’s Tochi Sandu from
Prime Minister Justin Trudeau.
by Alexandra Gill
STU ROSS
10 Jan/Feb 2018P
rime Minister Justin although sometimes I do take a team from Barclays Bank, principles. “Credit unions take a
Trudeau wasn’t exag- lunch if it’s a client meeting.” which led to his first job in the more caring, sharing approach.”
gerating when he wrote It was at one of those financial industry. Barclays’ In 2001, one year after
a letter to Tarlochan business luncheons in May of recruitment manager offered retiring, Envision Financial lured
(Tochi) Sandhu on July last year that Sandhu first met Sandhu a job the day after the him back to work as a commercial
27, congratulating the Justin Trudeau. The prime min- game. “Barclays supported account manager. He has stayed
director of Commercial ister had just finished eating sports because they knew that ever since. “I never thought I
Business Development at at Tasty Indian Bistro in Delta, sports teaches discipline and would still be working at nearly
Envision Financial, a division BC when he unexpectedly how to build relationships. If 80 years old but then the BC
of First West Credit Union walked up to Sandhu to say I am where I am today, it’s construction boom came. From
(250,000 members, $11 “hello.” Recalls Sandhu: “It because of sports.” 2001 to 2006 — my God, how
billion in assets) on his “spec- was just like the way I met his Although he lived an many loans I did. Unbelievable.”
tacular” commitment to the father, Pierre Elliot Trudeau, at enviable life in Tanzania as a Over the years, Sandhu has
financial industry. the Commonwealth Games in sports hero and top commer- seen many changes, especially
During Sandhu’s 60 Edmonton in 1978. Trudeau cial banker, Sandhu’s wife in the way business transactions
years of service — the last saw our Tanzanian tracksuits wanted to join her family in have sped up. He insists, however,
28 years with Canadian that the banking basics and
credit unions — the highly the needs of consumers remain
personable 77-year-old unchanged, no matter the country.
banking legend and former He recounts an example from a
international field hockey star few years ago, when he received
has maintained a spotless a despondent, late-night phone
lending record without any call from a friend, Purdeep, who
write-offs or bad debts. Just had moved here from Kenya. A
“IF I AM WHERE I AM TODAY,
as impressive, he has never former general manager for a
taken a single sick day in his trust company in Kenya’s capital
life. Not one. of Nairobi, Purdeep confessed
What can possibly account
for such enthusiastic work-
place acumen and longevity,
IT’S BECAUSE OF SPORTS.”
— TOCHI SANDHU
that he was returning to Africa
because he couldn’t find a job
in Canada. “What’s wrong with
as well as such stalwart good you?” Sandu chided his friend.
health? And why isn’t retire- “The next time you are inter-
ment in the cards? viewed and they say you don’t
When it comes to his have Canadian experience, you
lending record, Sandhu says say, ‘Sir, please tell me what is
he was taught as a young the difference in the principles
banker while working with the of banking and lending from one
National Bank of Commerce continent to another?’ ” (Purdeep
and Barclays Bank in his home and came over. ‘Your president, British Columbia. The couple was employed within a month.)
country of Tanzania to loan Julius Nyerere, is my good arrived in Canada in 1988. Purdeep’s success, Sandhu
money as if it were coming friend,’ he said, and then Sandhu adjusted quickly says, is an example of Canadian
from his own pocket. “After some photographs were taken. to life here, joining BC’s multiculturalism in action.
assessing the market risk I’d really like to find those Khalsa Credit Union (15,000 “Whether you are black, brown or
and ensuring that the proper photographs. My beard was members, $433 million in white, everybody loves everybody,”
guidelines are followed, if you black in those days,” Sandhu assets) in 1989 and serving as says Sandhu. It is this openness
think the loan will be repaid, says with a laugh. its CEO from 1991 to 2000. and tolerance that prompted
then go ahead and proceed,” Sandhu attended the The small consumer and resi- Prime Minister Trudeau to walk
Sandhu says. Commonwealth Games and dential mortgages he oversaw up to a stranger — Sandhu — at a
As for health, Sandhu three Summer Olympics either for the faith-based credit union Delta bistro simply to say “hello,”
attributes his robust longevity as a captain of the Tanzanian were easy compared to the unknowingly following in the
to abstaining from alcohol, national field hockey team complex government contracts footsteps of his own father, who
adhering to a vegetarian or as a team official. It was a he had negotiated for Barclays. happened to greet the very same
diet and not eating lunch. “I fateful field hockey match, and Still, he enjoyed helping mem- man much the same way, 39
stopped eating lunch in 1990, the hat trick he netted against bers and upholding cooperative years ago.
Jan/Feb 2018 11BIG PAYBACK
SMALL LOANS
SHUTTERSTOCK / STU ROSSLending to new Canadians or One of Cristian Bazan’s first jobs after to work. He heard about a loan program
promising startups helps give moving to Vancouver from Mexico eight called With These Hands offered by
years ago was in marble restoration. Bazan Vancouver City Savings Credit Union
budding entrepreneurs a leg up
enjoyed the work so much that he decided (489,000 members, $21 billion in assets)
while helping build long-term to start his own natural stone polishing for entrepreneurs looking to buy equip-
member loyalty. and restoration company, Shiny Stone ment to start a business in the trades.
Care, in 2012. He took out a $5,000 loan to buy
by Brenda Bouw
As any small business owner knows, his machines and got to work. A couple
starting a company isn’t easy. It takes of years later, once business picked up,
hard work, patience and capital. Bazan Bazan received another $10,000 loan
had the first two nailed but needed from Vancity to buy more machinery
financing to buy his own polishing as well as to help market his business,
machine and industrial vacuum to get including online through his website.
Jan/Feb 2018 13Five years in, Bazan says the business, down the road. “Literacy before lending
which he now runs with his brother Carlos, is the most important thing,” Ludgate
is going well. Shiny Stone Care has built up says, “making sure that all of our mem-
a good reputation and Bazan says a lot of bers understand how to use credit, how
business today comes through recommen- compound interest works and the impor-
dations from past customers. “People are tance of paying off the full balance each
referring us to new clients, which is good month. It’s part of being bankable and
for us,” Bazan says. “Without the loans it included in the economy.”
wouldn’t have been possible.” And while some financial institutions
Many entrepreneurs like Bazan rely might balk at lending to new Canadians,
on micro loans to get their businesses up Ludgate says the repayment rate on
and running. Credit unions, which often personal loans at Vancity has been
cater to small businesses “phenomenal. This is not
and have many of the same risky lending. They work
entrepreneurial values, have an incredibly hard. They pay
opportunity to be the lender of back their loans.”
choice for these startups. They The payoff for credit
are doing this by offering spe- unions is long-term member
cialized programs and expertise “WE BELIEVE THAT IT loyalty and word-of-mouth
to provide small companies
with personalized business TAKES MORE THAN A LOAN referrals for others looking
for loans to start their own
services and solutions.
Lending to new Cana- TO MAKE A BUSINESS OR companies. Ludgate says
she regularly hears from
dians — or any promising
startup — isn’t just good for INDIVIDUAL SUCCESSFUL.” members who thank the
credit union for supporting
entrepreneurs seeking capital and trusting them as they
— SUSAN HENRY
but can also help credit unions established themselves in
generate business and long- Canada. “It’s the best kind of
term member loyalty. The lending, to my mind.”
opportunity is particularly Micro lending does
strong among new immigrants, require credit unions to
many of whom are looking ramp up resources and
to build a life for themselves provide a more person-
and their families in their alized service. Ludgate
communities for generations to describes it as “high-touch
come. “Reaching newcomers lending,” which means
in their earlier stages of settle- more face time with
ment — to help them become members and a deeper
economically productive and understanding of what
integrated into their commu- DILYS D’CRUZ CATHERINE LUDGATE SUSAN HENRY it’s like to start and run
VP, STRATEGIC MANAGER, COMMUNITY MANAGER, ALTERNA
nities — is important to credit PARTNERSHIPS, MERIDIAN INVESTMENT, VANCITY your own company. “Each
unions and what we under- member has a unique story
stand about building healthy communi- to tell and they deserve someone to
ties,” says Catherine Ludgate, manager, take the time to listen to that story
community investment at Vancity. Personal loans first and to stress test that cash flow,”
Ludgate points to Bazan’s stone At Vancity, as well as other credit unions, Ludgate says. “That’s time well spent.
polishing business as one of many the small business relationship often It’s not expensive time if it leads to
successes Vancity has seen through starts with providing personal loans, their ongoing business success, their
its various small business lending which helps members build a credit loyalty to the credit union, the return
programs. “Cristian Bazan had a clear history and starts their companies on of other members’ money so we can
passion and relatable skills,” says a solid financial footing. Ludgate says make other loans and a more inclusive
Ludgate. “It paints a picture of how there’s a strong emphasis on financial community where people are treated
small and incremental investments put literacy during this stage, which in turn equitably and are economically pro-
him on the road to success.” helps increase chances of startup success ductive. That’s worth doing.”
SHUTTERSTOCK
14 Jan/Feb 2018More than a loan financial products and services.” D’Cruz says. “So we’ll go visit them and
Alterna Savings and Credit Union (133,309 The credit union also stays in touch give them the personal service.” The credit
members, $4.2 billion in assets) started its with its business-owner members, checking union, she adds, also works with innovation
micro finance programs in 2000, in part to in about once a quarter to see how they’re hubs to help provide education and support
help mitigate poverty and build commu- doing and if they need any support. “It lets for entrepreneurs looking to start, grow and
nities. The target has been the working them see you care about the business and build their companies.
poor, people on government assistance sometimes they need some other help and
or newcomers to Canada who don’t have we are able to refer them,” Henry adds. Long-term member alignment
a solid credit history. The program also Dilys D’Cruz, vice-president strategic While micro lending may not be a huge profit
caters to social enterprises whose business partnerships, wealth, small business, maker for credit unions, Henry says it’s a
models may be difficult to finance, as well mortgage channels at Meridian Credit brand differentiator for Alterna and helps to
as women entrepreneurs. “When we look at Union (309,705 members, $14.7 billion in build a loyal client base over the long term.
microfinance we look at where there’s a gap, assets) believes credit unions take a dif- One benefit of helping out small businesses
a need that’s not being filled is that some may turn to the
by traditional financing and credit union for other financial
we want to fill it,” says Susan needs in future, including for
Henry, Alterna’s manager, their personal saving needs.
community investments. Henry says Alterna often
To date, Henry says reminds small business owners
Alterna has provided more that, alongside their company,
than 850 micro loans they should also plan for their
ranging from about $1,000 own future after work.
to $25,000, totalling $4.5 “When you start the
million. The average loan business you’re so focused
today is about $7,500, up on the day-to-day that often
from $5,000 just a few years you forget about the future,”
ago. Many of the businesses Henry says. “What we don’t
Alterna lends to are service want to see is that, 20 years
companies ranging from down the line, they’re ready to
photographers and event retire and don’t have a succes-
planners to consultants. sion plan or they don’t have
Alterna also offers its retirement funds and can’t
members education and retire. It’s important for us to
advice on how to run and make sure they’re speaking
manage their business, which CRISTIAN BAZAN,
with a financial planner who
in turns helps both the owner FORMERLY OF MEXICO, can help get them on track.”
STARTED A MARBLE
and the credit union. For RESTORATION COMPANY
D’Cruz believes small
instance, Henry says Alterna WITH A MICRO LOAN businesses often benefit from
FROM VANCOUVER CITY combining their personal and
recently offered seminars to SAVINGS CREDIT UNION.
help business owners learn business banking services
more about sales and mar- under one roof and receive
keting. “Once they get this knowledge ferent approach to small business lending more holistic advice. She also believes
and build their business, it will help us than traditional financial institutions. “We credit unions are often sought out by small
as well,” Henry says. “We believe that are very local. We are embedded in the business owners because of their similar
it takes more than a loan to make a community. We work with the businesses,” values. “Our spirit, in terms of how we
business or individual successful.” D’Cruz says. “We try, from a packaging operate and our core values are much more
Alterna also offers financial literacy, perspective — whether it’s deposits or aligned to small business. And our members
or what it calls “wrap-around support,” lending — to look at the different targets tell us that all of the time too,” D’Cruz says.
which benefits both the credit union and and what the needs are.” “We always say, ‘we have your back’ and
the business. “It’s a win-win situation,” Meridian visits its members’ busi- it’s true. It’s not a product push or just a
Henry says. “If they succeed then we nesses, as needed, to help them with their number. You really get to know people on a
as a credit union succeed because they banking needs. Quite often they don’t personal level. I think for small businesses,
will be able to take advantage of other have the time to come to the credit union, that’s what really stands out.”
Jan/Feb 2018 15I
n the overheated housing But credit union advisers
markets of Toronto and say this isn’t the best approach,
Vancouver, credit unions since it doesn’t consider how
are finding themselves people differ. “You can have two
falling back on ancient couples with the same income,
Greek philosophy when they so they qualify for the same
advise homebuyers. As they mortgage,” says Ryan McKinley,
help young couples determine senior mortgage development
what they can afford to buy, manager at Vancouver City
many are following the maxim Savings Credit Union (489,000
popularized by Socrates: “Know members, $21 billion in assets).
thyself” — one of the ancient But one couple may be frugal
Delphic maxims. savers, while the other couple
This approach captures the likes to vacation and dine out.
credit union difference and how “They could both qualify for the
they can help members achieve same mortgage but it’s only truly
financial success, while avoiding affordable for one of them,”
painful missteps. McKinley says. “It’s a lot easier
The standard approach by for us to help when we under-
the Big Five Banks, mortgage stand what they know and what
brokers and Canada Mortgage they don’t, so we can help them
B Y A R T C H A M B E R LA I N and Housing Corp. (CMHC) is along the way.”
I L LU ST R AT I O N : S T U R O S S to look at an individual’s or a McKinley says that advisers
couple’s income and tell them can also help people avoid
what they can afford. Then, hidden pitfalls that can keep
it’s off to a realtor to make a them from reaching their
purchase. Or, perhaps, enter important goals. For example,
a bidding war. many people have a car loan or
Jan/Feb 2018 17lease with a monthly payment of $400 to very sheepish and embarrassed to open an
$500, not realizing that this will reduce account,” Pryer says. “I said, ‘I’m not here to
the mortgage they can qualify for by judge you, I’m here to help you. Let’s see if
$100,000. “We’re combating the lifestyle we can get you a mortgage approved.’
that we live in now, with very easy access “We always try to do what’s right for the
to credit. It’s easy to get into consumer member,” says Pryer. “I say to people sitting
debt, paired with an expensive housing across from me: ‘Don’t get me wrong, we
market, paired with an incredibly expen- have goals and totals that we have to meet
sive rental market,” McKinley says. “It WADE STAYZER
VP, RETAIL, MERIDIAN
RYAN MCKINLEY
SENIOR MORTGAGE
but I’m not going to do it on the backs of
makes it hard to get yourself out of debt DEVELOPMENT MANAGER,
VANCITY
selling you something that you don’t need.’ ”
and put savings aside.” So, what are the options for young
McKinley finds it disheartening when people? In many ways they come down to:
he sees young people who have “done
N Y P E O P L E H AV E rent, relocate, or reconsider your ownership
everything right: gone to school, gotten
jobs, are making decent money but given MA L E A S E W ITH
approach.
Rob Carrick, The Globe and Mail’s
how much it costs to rent it’s still hard to
save at the same pace that the real estate
N O R
A C A R L O A LY P A Y M E N T
personal finance columnist, has frequently
written that renting is usually cheaper than
market is appreciating.
“What we try to do is have a more A MONTH $500, NOT buying and that over time it can be a better
approach financially, if people are able
holistic discussion,” McKinley says. “Look
O F $ 4 0 0 T O AT T H I S W I L L to save and invest the difference. Carrick
R E A L I Z I N G T HE M O R T G A G E
at their lives. When pre-approving, figure recently suggested that major Canadian
out what the payments are going to be, markets may have reached peak home
REDUCE TH ALIFY FOR BY
extra fees and taxes, etc. and the difference ownership, noting that: “Census data show
between that cost and what they’re paying the national home ownership rate — that’s
T H E Y C A N Q0U, 0 0 0 .
now. We tell them to put that aside and see the percentage of households that own — fell
how comfortable that is for them.” to 67.8 percent last year from 69 percent
$10
in 2011. Among 30-year-olds in 2016 who
Affordability versus wants lived in their own place, 50.2 percent were
In the Greater Toronto Area (GTA) market, owners. Baby boomers at that same age had
Wade Stayzer, vice-president, retail, at a 55.5 percent ownership rate.”
Meridian Credit Union (309,700 members, people-centred advice.” Toronto realtor Ralph Fox also recently
$14.7 billion in assets) is taking a similar Stayzer adds that people need to be wrote: “Compared to most major cosmo-
approach, telling people to try living as if honest about their dreams and plans. “If politan cities, Toronto remains relatively
they were paying the full cost of home own- your main dream is you want to travel and affordable. We are all going to have to come
ership but put the difference in a savings you want to see the world, then the answer to terms with the fact that living in a big city
account. “The easy part is finding a place for you is put home ownership on pause for is expensive and in cities like New York and
that you want, then you have to understand now. You need to understand what you will London, the majority of its populations that
what you are able to afford,” Stayzer says. compromise on and what you won’t.” choose to live there rent due to affordability
“We often encourage people instead of The Each One, Teach One financial reasons. In a not too far-off future, there will
going in to see how much mortgage money literacy program developed by Vancity, be nine million people living in the GTA and
they can get, tell me how much you’re able which more than 80 credit unions now use, whether we’d like to admit or not, the major-
to pay. Do your budget, find out what you covers this same territory in four workshops ity of the GTA’s inhabitants will be renters,
can pay and let that dictate what you buy, on home ownership and what people need and not by choice.”
regardless of what you qualify for.” to know before they buy. Last fall, journalist Jessica Barrett wrote
Stayzer says that in 2009 Meridian in a column for The Tyee, an online indepen-
moved to a proactive sales culture based Rent, relocate or reconsider dent Canadian news magazine, a bittersweet
on understanding what members’ needs Andrea Pryer, a branch manager with DUCA farewell to Vancouver. An Alberta native,
are and helping them build a plan to Financial Services (45,000 members, $2.5 Barrett said that after 15 years of trying to
achieve their goals. “They’re their goals, billion in assets) in Mississauga, Ont., says live in the city she had come to love, she had
they’re not our goals,” he says. “There’s no one of her proudest moments in 30 years decided it was simply not affordable and was
judgment here. If you want to buy a boat, in the business was when she helped a relocating to Calgary, which surprised her by
then we’re going to try and tell you how you young couple get their lives back in order offering many of the amenities and shops she
can make that happen and also make sure to stay in their home. The couple had been had assumed were only available in Vancou-
that you know here’s the impact it’s going forced to declare bankruptcy because ver. “In the end, leaving was a choice I made
to have on your financial health. That’s a they became overextended with a rental for myself, for my well-being and for the
differentiator for credit unions, we will give property. “When they came to me they were future I would like to have,” she wrote. “But
18 Jan/Feb 2018truthfully there was no contest — it was
the city or my sanity. My sanity won.”
Her plea touched a cord with her
generation and was widely tweeted,
shared more than 19,000 times on
Facebook and attracted more than 550
comments.
We want higher density
A younger generation that wants to live,
work and play in the same neighbourhood
is pushing cities like Toronto and Vancou-
ver to construct more high-rise condos and
increase density to make room for them.
A recent Toronto Region Board of Trade
survey of 803 18- to 39-year-olds found
74 percent supported greater density,
even though their parents who live in
established neighbourhoods might not
agree with taller towers and in-fill housing.
McKinley notes an increase in lane-
way homes in Vancouver, some used by
younger people, others by parents who
move into them and let the young genera-
tion have the bigger home.
Several credit unions have also devel-
oped programs that allow co-ownership
of property so that unrelated people can
combine their resources to purchase a
home. But this approach comes with
warnings. McKinley says that to help
people considering this approach, Vancity
has developed a co-ownership guide that
covers such things as what happens if one
person loses their job, or decides to move,
or gets married, or dies (life insurance
on all involved is a definite requirement).
The goal is to consider as many events as
possible and ensure they are covered in a
legal agreement.
Perhaps not surprisingly given these
caveats, this option has not attracted
widespread interest. A similar approach
is a co-ownership arrangement with a
parent, which is an option more people THE PREMIER PRINT PROVIDER FOR FINANCIAL INSTITUTIONS.
are trying. McKinley says it can be struc-
tured with any percentage of sharing and
it allows parents, who in the past might
have contributed a few thousand dollars
toward a down payment, to make a heftier
contribution but be protected. He notes
that, ultimately, credit unions “only have
so many levers to pull” and that there is Locations in British Columbia, Alberta and Ontario.
little individuals, or even governments,
604.549.2350 1.800.663.9952 westkeygraphics.com
are able to do to improve affordability in
the short term.
Jan/Feb 2018 1920 Jan/Feb 2018
building credit unions can
take the lead on
better helping newcomers
communities
to canada begin the
difficult process of
by alexandra samur integration.
illustration: stu ross
Jan/Feb 2018 21While disappointing, the survey’s results
weren’t surprising to Javed Abdullah; “I know
people who have been racially discriminated
against,” she says.
Catherine Ludgate, manager of community
investment at Vancity, thinks such findings ought
to trouble members of all BC’s cultural commu-
nities. “We think of ourselves in Metro Vancouver
“do you as a welcoming place, very cosmopolitan and
eat curry very diverse,” she says. “While that may be true,
if the populations that allow us to claim to be a
every day ?” very diverse community are feeling alienated or
A
systemically discriminated against — as appears to
be the case — then we are in fact not a welcoming
mal Javed Abdullah chuckles quietly place at all.”
recalling one of the many stereotypes But racism is obviously not just a BC prob-
she has encountered while living in lem. A recent nationally focused report jointly
Surrey, BC. “They ask me that because published by the University of Toronto and McGill
my family is from Pakistan and I’m a University found almost a third of Canadians
brown person,” Javed says. said the government should discriminate against
She has also been asked about the Muslims when selecting foreigners to move into
hijab she wears and whether she wears the country. Another third of respondents want the
it in the shower. The ridiculousness of government to prioritize white immigrants while
the query still surprises her. “You don’t more than 65 percent think immigrants should
shower with a piece of clothing on!” behave “more like Canadians.”
she exclaims.
Though Javed Abdullah finds such questions
annoying, she generally feels lucky that ignorant
questions are
the worst of the
“to reclaim your
discrimination she’s narrative, you
faced. Unlike her
family and friends should embrace
in the Muslim
community, she
whoever you are .”
hasn’t yet been
— amal javed abdullah
targeted with more
overt and aggressive
discrimination.
In its various Still, with 2016 census figures indicating
forms, discrimina- immigrant numbers are at their highest levels in
tion is both present almost a century, Canada is more diverse than
and widespread in ever before. This creates a unique opportunity for
British Columbia. all Canadians to reconsider and challenge broadly
A 2017 Vancouver held beliefs that Canadian society is open and
City Savings Credit progressive. What does it actually mean to be
CANADA IS
BECOMING A Union (489,000 members, $21 billion in assets) welcoming? What can individuals do to build more
MORE DIVERSE
COUNTRY.
survey exploring attitudes on immigration and inclusive communities? How can average citizens
experiences of racial discrimination in BC found counter negative stereotypes and anti-immigrant
82 percent of respondents who identified as sentiment increasingly dividing communities
members of a visible minority group had been south of the border?
subjected to some form of discrimination or Back in BC, local credit unions have found
racism. Of those, 11 percent indicated that these opportunities to build leadership and foster dia-
experiences were traumatic enough to prompt logues in exploration of these critical questions,
thoughts of moving to a new location. while connecting communities.
SHUTTERSTOCK
22 Jan/Feb 2018Integration challenges party she organized with fellow board
The language barrier, cultural contrasts members in 2015, which was attended
and a lack of a social support network by long-time residents as well as new-
are the three biggest challenges Dongmei what comers. Yang says social events like
these help both old and new community
does
(Lily) Yang says she and other newcom-
ers face when arriving to Canada. Even members get to better know their neigh-
though she worked teaching Mandarin to
English-speaking teachers in her native
diversity bours, and to help overcome the feelings
of social exclusion that Yang felt when
city of Dalian in the Chinese province
of Liaoning, Yang found immigrating
mean she first arrived.
At its core, the work of LIPs involves
to Surrey with her husband in 2006 to to you ? multiple stakeholders — government,
be a big adjustment. “Most immigrants public and private institutions, busi-
find they are isolated at the beginning, Diversity expert and ness groups and non-profit and com-
because you don’t know anyone and you facilitator Alden munity agencies — working together
don’t know where to socialize,” says Habacon led a series to determine what communities need
Yang. “I felt that too.” to be more welcoming and inclusive.
of Vancouver City
Yang is one of 19 members of the Credit unions are playing a key part in
Savings Credit
Immigrant Advisory Roundtable for the these efforts: Yang’s welcome event
Union-sponsored was one of many similar events and
Surrey Local Immigration Partnership
roundtables orga- campaigns Vancity has supported since
(LIP). Most of Canada’s LIPs originated
out of a settlement program started by nized by social services agency, the Surrey LIP first formed. Vancity’s
the Ministry of Citizenship and Immi- success , inviting Metro Vancouver Ludgate says the partnership has been
gration in Ontario in 2008. Since then, residents and newcomers to reflect essential for their credit union. “Credit
partnerships have sprung up in provinces and discuss what diversity and inclu- unions should be involved in the LIPs
across Canada, all with the common sion means to them. Habacon notes and should listen and learn from the
goal of fostering “active and meaningful that broad community conversations immigrant-serving organizations and
connections between newcomers and are difficult but fundamentally other partners around the table,”
host communities.” crucial exercises in building stronger she says. “That will be the blueprint
Having been formed in 2014, Sur- for learning how to better welcome
communities. For him, the impor-
rey’s LIP is relatively new but ambitious: refugees and newcomers to our com-
tance of the dialogues lie not only in
currently it is implementing a separate munities and to be better credit unions
providing an opportunity to celebrate for these populations.”
“refugee integration strategy.” The
immigration but also to allow people
strategy is a response to the increasing
number of refugees arriving to the city, to question it. He thinks that labelling Nurturing leadership skills
since Surrey is now home to almost half those as “bigots” or “racists” who While immigrants bring cultural expertise
of the more than 3,600 Syrian refugees struggle with newcomers can quickly and language skills to their LIP work,
who have arrived in BC since late 2015. shut down communication channels, only a handful of them come to an LIP
It will focus on assisting with integration thus working against the larger possessing the leadership and organiza-
issues related to trauma, language, edu- goal of inclusivity. “We are fierce in tional skills necessary to take on more
cation and employment barriers common protecting our pluralism but we also senior roles, or to execute larger projects.
to these newcomers. have to show some more compassion This is another area where credit unions
The Immigrant Advisory Roundtable can — and have — made a difference.
and create a forgiving space,” Haba-
board’s local immigrant and refugee Yang gained leadership skills through the
con says. He warns that with massive
residents represent more than a dozen Envision Financial Community Leaders
migrations on the way, we need to be Igniting Change (CLIC) program. First
different countries of origin and have
wary of political polarization and the started by the Surrey Poverty Reduction
played a key role in providing the LIP
with insight on the experiences of new- formation of “ethno burbs,” which Coalition and funded by Envision
comers to the city, in connecting new- are often created when people stop Financial Credit Union, a division of First
comers to communities and in leading talking to each other. “My agenda West Credit Union (230,000 members,
initiatives geared to involving newcomers is to use these roundtables as tools $9.9 billion in assets), the 12-week
in Surrey life. that will foster a more sustainable program brings together local residents
In her work with the board, Yang has multiculturalism. If we leave it to interested in making an impact in their
helped organize large-scale social events chance, people will continue to stay communities. Residents learn a range
for refugees and immigrants. She is most in their bubbles.” of skills, including hard skills like grant
proud of the “Welcome to Surrey” block writing and soft skills like compassion,
MARTIN DEE
Jan/Feb 2018 23listening and relationship
building. “It’s a marriage of
theory and practice,” says
Susan Byrom, senior manager,
community investment at First
West. The program challenges
participants to ask themselves
specific questions: “How are
you going to be a changemaker
in your community? Where
does your passion lie? What
do you need in order to build
your confidence so you can
see yourself as a leader and
make a positive impact in your
community?”
Yang graduated from
the program’s first cohort in
2013. One of her first proj-
ects concerned the creation of
a gathering place for Chinese
seniors. Yang had noticed that
programming gaps coupled
with a lack of dedicated meet-
ing spaces often left seniors
isolated in their communities.
She approached her local
Fleetwood library branch
THERE ARE
about booking a room on a MANY WAYS THAT
“most immigrants find
weekly basis where seniors INDIVIDUALS
CAN HELP BUILD
could play chess and music MORE INCLUSIVE
and meet new friends. Yang
was amazed when 30 seniors
they are isolated at COMMUNITIES.
showed up for the first
meetup and, four years on, it
the beginning, because
still runs nearly every week. you don’t know anyone
In addition to funding
the CLIC training program and you don’t know
for the past three years,
Envision Financial also offers
where to socialize ” .
“Spark” micro grants to help
— dongmei (lily) yang
graduates get their projects
off the ground. A recent grant
helped launch an event last
September titled Reclaim the
Narrative: Representation, Identity and the Young the way they choose to conduct their lives. It’s their
Muslim Experience, featuring a panel discussion personal choice what they do; it should be nobody
and related workshops for local youth. The grant else’s business but they are antagonized for it,” she
recipient and event organizer was none other than says. “We wanted to have a conversation with young
19-year-old Amal Javed Abdullah who — tired of people facing these issues.”
questions about curry culinary habits and hijabs Reflecting back on the event, Javed Abdullah says
in the shower — decided to produce the event to she thinks the event attendees came away with a lot to
benefit young Muslims facing stereotypes and contemplate. For her, it was a message of self-accep-
discrimination in her community. “People are tance: “To reclaim your narrative, you should embrace
antagonized for the way they are born, the families whoever you are. You don’t have to conform to who
SHUTTERSTOCK
they are born into, the way they choose to dress or people think you should be.”
24 Jan/Feb 20182018 National
Conference
for Canada’s
Credit Unions
April 29 - May 1, 2018
Sheraton Centre Hotel | Toronto, ON
Different By Design
Credit unions are different in a way that makes a
difference. Join us at the 2018 National Conference
for Canada’s Credit Unions to amplify our strengths,
celebrate our unique offering and learn how to
leverage our differences as a competitive advantage.
Opening Keynote Senior Associate Dean for Strategy
Youngme and Innovation at Harvard Business
School, Author of Different:
Moon Escaping the Competitive Herd
Registration opens February 15, 2018
For more information:
ccua.com/events
Jan/Feb 2018 25STU ROSS
MONEY
ON THE FLY
BY ALEXANDRA SAMUR
BILLIONS OF DOLLARS POUR
OUT OF CANADA EVERY YEAR
IN REMITTANCE PAYMENTS
TO COUNTRIES AROUND THE
WORLD. ALTHOUGH CREDIT
UNIONS ARE MINOR PLAYERS
IN THIS AREA, RECENT
INITIATIVES INDICATE
THIS IS CHANGING.
PRIORITY
PULL OFF
HERE
S
ince moving to Toronto 10 years medical needs and, in the past, her remittance-receiving country in the world
ago, Alice Herrera, an engineering sister’s cancer treatments. “I think it’s part after India and China and, like many low
professional and president of of Filipino culture to send money and help and middle-income nations, it relies upon
the University of the Philippines their relatives back home,” Herrera says. funds sent from countries like Canada for
Alumni Association of Toronto, has Monetary gifts sent by immigrants economic growth.
been sending money back home to like Herrera to individuals in their home To put this into perspective, in 2015 an
Manila on a monthly basis. The money countries are officially known as remit- estimated $30 billion left Canada in remit-
helps cover her 87-year-old mother’s tances. The Philippines is the third largest tances, which is roughly five times more
Jan/Feb 2018 27than the Canadian government’s interna- the Canada 2016 Census, the Filipino Money transfer product launched
tional assistance spending budget in that community is now the fastest-growing For most credit unions, outsourcing the
same year. And recent guidance issued immigrant group in the country. Like remittance transfer process to avoid the
by the World Bank suggests remittance many newcomers to Canada, one of the challenges of developing and marketing
volumes are only set to increase over the challenges Filipinos face is establishing an in-house solution is preferable. To
next few years. a financial and credit history in Canada. that end, in 2016 Central 1 Credit
In addition to propping up Global The Remit Now program helps these Union launched an international money
South nations, remittances can also new members by offering free banking transfer product in partnership with
be big business for banks and money accounts and a $500 line of credit. The industry giants Western Union and
transfer companies who have traditionally credit line allows individuals to send Canadian company Acxsys Corporation
collected substantial revenue from money when they want, eliminating the (the architects of Interac). Members of
remittance transaction fees. To date, need to arrange loans. In the past, such Libro Credit Union (103,000 members,
credit unions have been minor players in as when Typhoon Haiyan hit the region $3.5 billion in assets), First Calgary
the industry but recent initiatives suggest in 2013, the program offered free Financial, a division of Connect First
that making remittances remittances so members Credit Union (100,000 members, $4.3
easier and cheaper to send is could assist family in the billion in assets) and, most recently,
of increasing importance to Philippines. Tandia Financial Credit Union (30,000
credit union members. Now almost five years members, $1 billion in assets), were
old, De La Rosa says the the first to use Western Union Money
Remit Now program program has helped raise Transfer services via Interac e-Transfer
launched the profile and membership through Central 1. Many others are
Like many regular remitters, of the credit union and has reportedly considering its adoption.
for years Herrera would with- attracted some different “The way our families operate and
draw cash every month and GEORGE DE LA ROSA
CEO, LUMINUS FINANCIAL
business. Still, the early the way our friendships move around
then take it to a remittance SERVICES AND CREDIT
UNION
days of the initiative were the world, our members need to be able
company to make a trans- challenging; Luminus to move money around globally,” says
action. Through a Filipino quickly learned that it Tania Goodine, executive vice-president,
charity in her community, needed to focus on building engagement at Libro, based in London,
Herrera later learned about deep relationships within the Ont. One of the first champions of the
a Philippines-focused remit- Filipino community. “We saw product, Goodine says the credit union
tance program offered by we needed to have agents: has seen use of this service growing
Toronto’s Luminus Financial people in the community month by month.
Services and Credit Union who promoted the credit Partnering with an established brand
(4,500 members, $136.5 TANIA GOODINE union and the remittance like Western Union makes a lot of sense
VP, ENGAGEMENT,
million in assets). Called LIBRO CREDIT UNION program,” De La Rosa says. for credit unions, says Scott Robertson,
Remit Now, the program was These individuals were able product manager for payment applica-
first launched in 2013 to better serve to educate non-members about the pro- tions at Central 1. “It’s the speed, the
the credit union’s Filipino members. gram and remind members — many of ability to send money that’s available
(They make up four percent of Luminus’s whom were in the habit of sending cash for pick up within 30 minutes and the
membership.) The unique program, through a bricks and mortar location strong brand recognition,” Robertson
which works on an account-to-cash — to use the online banking portal. says. “In some of the destination corri-
remittance basis, makes money transfers For Herrera however, the pro- dors or countries, recipients feel more
easier for regular remitters like Herrera. gram’s flexibility in allowing her to comfortable there than dealing with
“The Filipino community was one that make secure transactions online on their own financial institutions.”
was interesting to us because it met our a 24/7 basis was a welcome change. A true pioneer in the money transfer
brand, it met our brand promise and it That, coupled with Luminus’s industry, Western Union has evolved
was very niche oriented,” says George De partnership with BDO Unibank (the from its “pony express” days and now
La Rosa, CEO of Luminus. largest bank in the Philippines) and has a global network of 550,000 agent
The Filipino community is also inter- competitive fees and exchange rates locations where cash can be sent and
esting because of its size. According to have kept her with the program. collected, including local grocery stores,
28 Jan/Feb 2018You can also read
