Vancity Explained

Vancouver City Savings Credit Union
Type:Credit union
Trade Name:Vancity
Location:Vancouver, British Columbia
Key People:Wellington Holbrook
Industry:
Revenue Year:2019
Net Income Year:2019
Assets Year:2019
Num Employees:2,675
Num Employees Year:2019
Subsid:Vancity Community Investment Bank

Vancouver City Savings Credit Union, commonly referred to as Vancity, is a member-owned financial co-operative headquartered in Vancouver, British Columbia, Canada. By asset size, Vancity is the largest community credit union in Canada, with in assets plus assets under administration, 60 branches and more than 543,000 members.[1]

History

Vancity began operations in 1946 as an open-bond credit union in Vancouver, British Columbia, Canada. Initially a financial co-operative consisting of 14 Vancouver residents, Vancity has grown to serve British Columbia's Lower Mainland and the Victoria region of Vancouver Island.

On September 28, 1946, 14 Vancouver residents signed a charter to establish an open-bond credit union that would be open to any resident of the city, regardless of social affiliation.[2] [3] On October 11, 1946, Vancouver City Savings Credit Union opened to the public. By the end of 1946, total assets were $2,966.

Vancity first operated out of a former machine shop on the corner of Broadway and Quebec streets in Vancouver. By the end of 1951, membership had reached 2,000. Assets grew rapidly after the introduction of personal chequing accounts in the same year, reaching $5million in 1962, $10million in 1965, $100million in 1973, and $1billion by 1980., current assets are $22.9billion.

In 2009, Vancity attempted to force 18,000 of its members to sign documents that would have allowed the credit union to unilaterally increase interest rate on lines of credit where a loan agreement had already been signed, to "keep access to your lines of credit and avoid any disruptions", threatening that it may have had to "take further action" on their accounts should they not have complied.[4] Vancity abandoned this course of action later that year in response to adverse publicity and backlash from members.[5]

Milestones

Vancity has a history of innovation in the North American financial services market:

List of directors

Services

Vancity's primary lines of business include retail and business banking (deposit-taking and lending) and mortgage lending. Through wholly owned subsidiaries, Vancity also operates foreign exchange, life insurance, Visa credit cards, real estate development, and investment advisor services.

Through its subsidiaries Citizens Bank and Vancity Community Investment Bank, Vancity was formerly a major issuer of prepaid reloadable Visa and non-reloadable cards which were branded for various resellers, including Arctic Co-Op[19] and Canada Post.[20] The high fees and expiry dates associated with the cards were the subject of a class action suit which named Peoples Trust Company, Peoples Card Services Limited Partnership, Peoples Card Services Ltd., Vancouver City Savings Credit Union, Citizens Bank of Canada, Amex Bank of Canada and All Trans Financial Services Credit Union Limited among its defendants.[21]

Vancity responded by withdrawing the cards from the market in 2021.[22] The Canada Post / Zenwallet prepaid Visa did return to the market in October 2022, but with Peoples Trust as the issuing institution.

Membership

Vancity is a member of Central 1 Credit Union and is registered with the Credit Union Deposit Insurance Corporation of British Columbia. In December 2010, Vancity joined the Global Alliance for Banking on Values (GABV).[23]

Notes and References

  1. Web site: Vancity beats 2018 income expectations . March 7, 2019 . Vancity.com . February 28, 2018.
  2. Hardin, Hershel (1996). Working Dollars, p. 18. Douglas & MacIntyre, Vancouver.
  3. Web site: Founding – Vancity. www.vancity.com. May 28, 2019.
  4. Web site: B.C. credit union urges customers to pay more . August 5, 2009 . . https://web.archive.org/web/20230408061038/https://www.cbc.ca/news/canada/british-columbia/b-c-credit-union-urges-customers-to-pay-more-1.785842 . April 8, 2023 . live .
  5. Web site: Vancity drops plan to hike line of credit rates . August 11, 2009 . . https://web.archive.org/web/20230406212456/https://www.cbc.ca/news/canada/british-columbia/vancity-drops-plan-to-hike-line-of-credit-rates-1.785840 . April 6, 2023 . live .
  6. Hardin, Hershel (1996). Working Dollars. Douglas & MacIntyre, Vancouver.
  7. Hardin, Hershel (1996). Working Dollars. Douglas & MacIntyre, Vancouver.
  8. Hardin, Hershel (1996). Working Dollars, p. 128. Douglas & MacIntyre, Vancouver.
  9. Hardin, Hershel (1996). Working Dollars, p. 280. Douglas & MacIntyre, Vancouver.
  10. Hardin, Hershel (1996). Working Dollars, p. 411. Douglas & MacIntyre, Vancouver.
  11. Web site: Working Dollars: The Vancity Story. Hardin. Herschel. 1996. Herschelhardin.ca. Douglas & McIntyre.
  12. Hardin, Hershel (1996). Working Dollars, p. 465. Douglas & MacIntyre, Vancouver.
  13. Web site: December 10 2008 Media Release – Vancity.
  14. Web site: Good News Bank Story?. www.triodos.com. December 17, 2010 . en. May 14, 2019.
  15. Web site: Vancity Becomes the Largest Organization in Canada to Adopt Living Wage Policy – First Call. firstcallbc.org. May 14, 2019.
  16. Web site: Vancity offers alternative to payday loans. Griffin. Kevin. www.vancouversun.com. en-ca. May 14, 2019.
  17. Web site: CoPower Story. copower.me. June 19, 2020.
  18. Web site: Vancity announces 2025 financed emissions reduction targets . Financial Post.
  19. Web site: IMPORTANT UPDATE ABOUT YOUR VISA* RELOADABLE PREPAID CARD . 2024-01-13.
  20. Web site: Terms and Conditions | Prepaid Reloadable Visa* Card. canadaprepaidcard.ca.
  21. Web site: Pre-paid credit card class action suit approved by B.C.'s top court. Vancouver Is Awesome. May 2, 2019 .
  22. Web site: Visa Prepaid Cards – VCIB.
  23. Web site: Global Alliance – For Banking on Values ~ Vancity (Canada) . Gabv.org . June 20, 2014 . December 27, 2015.

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