"We feel that together we can withstand those cost increases a lot better than we can individually."
Conexus, Cornerstone and Synergy credit unions are merging, after receiving strong member support. Photo by Troy Fleece /Regina Leader-Post A major sea change is coming to Saskatchewans financial landscape, as three major credit unions will come together to form a single combined entity.
In a joint media release Wednesday, Conexus Credit Union, Cornerstone Credit Union and Synergy Credit Union announced membership at all three institutions had voted in favour of a proposed merger.
The three credit unions began discussions about joining forces in November of 2024. In early June, members voted online or in person on whether to authorize the merger. Support was strong, with members at all three credit unions voting over 80 per cent in favour. The new combined credit union will have $15 billion in assets and boast a workforce of 1,400 people, with 57 branches across the province.
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Ken Kosolofski, Conexus Credit Union board chair, said an inaugural board composed of representatives from all three credit unions will begin laying groundwork for the combined entity. It will not be officially constituted until Jan. 1, 2026.
Orders of business include naming a chief executive for the new financial institution. Kosolofski said the board will look internally to fill the position.
One of the CEOs from one of the three credit unions is going to become the CEO of this new credit union, he said.
Another important board decision is naming the new entity. Kosolofski said branding will also be found internally.
The name is going to be selected from one of the three credit unions, he said.
The credit union merger is part of a larger trend nationally. In a note to clients published in November of 2024 after the three credit unions announced plans to explore a merger, analysts from Morningstar DBRS, a U.S.-based credit ratings agency, wrote that consolidation in the Canadian credit union sector has increased in recent years.
Josh Veenkamp and Tim OBrien attributed the trend to financial costs brought on by increased competition.
Technology investments required to stay competitive with large banks and fintech companies have become increasingly onerous, they wrote.
The two analysts said a merged entity would be in good position to operate in a more efficient manner while achieving cost synergies. The pair added that a merged credit union would also be in a good position to make needed investments in improved technology.
Kosolofski echoed similar sentiments in regards to competition. Specifically, he said the entrance of non-traditional entities into the market like fintech companies and challenger banks have changed the industry.
He said financial institutions are dealing with increased costs due to a number of factors, including the cost of increased regulations which the merged entity is in a better position to deal with.
We feel that together we can withstand those cost increases a lot better than we can individually, he said.
Celina Philpot, chief executive of Conexus Credit Union, said the banking and financial industry in Canada is changing, and that consolidation among financial institutions is part of that.
Its becoming a business of scale, she said.
Trevor Beaton, chief executive of Synergy Credit Union, which has a strong presence across west-central Saskatchewan, said hes pleased to see membership firmly get behind the merger. He said the merged entity will be in a better position to compete against Canadas big banks and online institutions as the sector continues to evolve.
This scale will allow us to compete that much stronger in digital, he said.
Beaton believes the ability to invest more in digital banking is important. He said this includes offering members the chance to do more self service online, while at the same time providing them a safe and secure platform to do so.
The threat of cyber (attack) is a material thing that we are worried about everyday, he said.
Just over 88 per cent of Synergys members who cast ballots voted in favour of the merger, the highest percentage of all three credit unions. Beaton credits the strong support among membership to the credit unions employees being in support, which he said helped alleviate concerns.
(Staff) were our biggest advocates all the way along, he said. If your staff arent on-side, your members certainly wont be either.
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