By Jay-Ann Gilfoy, President & CEO, Meridian Credit Union
Every year, International Credit Union Day provides a moment to reflect on the essential role credit unions play in shaping not only our financial landscape but also our communities. As President & CEO of Meridian Credit Union, I’ve witnessed firsthand the powerful difference credit unions can make in people’s lives. Today, I’d like to take this opportunity to celebrate the unique aspects of credit unions while addressing some common myths that still exist about how we operate.
The Credit Union Difference
Credit unions are more than just financial institutions – we’re cooperatives owned by Members, not shareholders. This means we prioritize our profits, while at the same time ensuring that our Members and their local communities benefit from our success. Whether that’s through competitive rates, fees, or reinvesting our profits directly into community initiatives. Our primary goal is to be a long-term viable financial services organization, serving our Members and strengthening the communities around us.
At Meridian, we take pride in this approach. We know that by keeping our Members at the heart of everything we do, we foster deeper relationships, trust, and promote their long-term financial success. This is what truly sets us apart from traditional banks.
Why Credit Unions Are Vital to Canada’s Financial Ecosystem
In Canada, credit unions like Meridian play a pivotal role by offering inclusive, full-service banking to individuals and businesses of all sizes across the country, including in regions where traditional banks may not have a presence. Meridian is deeply connected to the communities we serve, ensuring our Members' needs are met with solutions that are designed to improve their financial confidence and well-being.
This cooperative model contributes to a strong and stable financial system in Canada and is a key part of the Canadian financial services landscape. At Meridian, we help Ontarians access a full range of banking products and services – from mortgages, loans and investments, to estate planning, insurance protection and financial planning and advice – all while remaining rooted in a purpose-driven mission.
Addressing Common Myths About Credit Unions
Meridian’s recent More Than a Number survey gathered insights from thousands of Canadians about their perceptions of credit unions versus traditional banks. Through both quantitative and qualitative feedback, we discovered that many common myths and misconceptions about credit unions continue to shape public opinion.
Despite our long history and strong reputation, many Canadians still believe that credit unions are outdated or inaccessible, and that they do not offer full-service banking, or advanced digital solutions and personalized service.
In the spirit of International Credit Union Day, we felt it was important to break down the most common myths uncovered in our survey responses and to set the record straight.
Myth 1: Credit Unions Aren’t as Secure as Banks
A persistent myth is that credit unions aren’t as safe as banks. In fact, credit unions are just as secure as traditional banks. Deposits at credit unions, like those at Meridian, are protected by deposit insurance, just as they are at banks. In Ontario, for instance, this insurance is provided by the Financial Services Regulatory Authority (FSRA), ensuring that your money is secure.
Myth 2: Credit Unions Don’t Offer Competitive Products or Modern Banking Services
This is another misconception that couldn’t be further from the truth. Credit unions offer the same financial products and services for both individuals and small and medium sized businesses. This includes chequing and savings accounts, loans, mortgages, and investment options. Moreover, we’ve embraced modern banking technology, with comprehensive digital banking platforms, mobile apps, and access to ATM networks that provide convenient banking across Canada.
Myth 3: Credit Unions Are Only for Small Communities
While credit unions may have roots in local communities, they’re not limited to small, rural areas. Meridian, for example, is the largest credit union in Ontario, and the second largest in Canada. We operate in most of the large suburban and urban cities as well as in smaller communities. We offer the same breadth of services as larger banks but with the benefit of a Member-first focus.
Myth 4: It’s Difficult to Switch to a Credit Union
Switching to a credit union is simple and seamless. Credit unions often provide resources and guidance to help Members transfer their accounts, direct deposits, and bill payments effortlessly. Joining a credit union means becoming part of a cooperative where you have a say in how the organization is run, with the added assurance of knowing your financial institution is working for your best interest.
Celebrating the Power of Cooperation
International Credit Union Day reminds us of the importance of financial institutions that put people first. The credit union model is built on cooperation, Member ownership, and the principle that profits should be used to benefit the Members and communities we serve – not shareholders. This is more than just a different way of doing business; it’s about doing business with a purpose.
At Meridian, we believe that when you bank with a credit union, you’re doing more than managing your money – you’re joining a movement that values fairness, equity, and community development. As we celebrate today, let’s recognize the crucial role credit unions play in ensuring that banking is accessible and always centered on the needs of the people it serves.
Happy International Credit Union Day!
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