Kindred Credit Union - Banking with Purpose

Special
Membe
rship Is
sue
Share
mscu
faith > finances
What’s Inside…
2
A few words from…
3
MSCU Charitable Fund…
3
Agricultural Partnerships…
5
From the Desk of…
Member Newsletter | Spring 2015
Plant seeds
for the future of your credit union.
During the Town Hall Meetings, board members Leroy Shantz and Len Rempel have
been acting as moderators and asking senior leaders a series of questions about the
future of MSCU, and then encouraging members to respond. If you didn’t have the
opportunity to attend one of the meetings, we invite you to read the following excerpts
from the conversation so far.
Leroy: So John, what’s going on in the world of credit unions these days? And what’s
happening at MSCU?
John Klassen, Chief Financial Officer: First, it’s important to know that in general,
financial services in Canada are dominated by the “big five” chartered banks, as well as
several newer virtual banks. Competition is stiff and recently banks have become more
interested in agricultural lending – an area of expertise for MSCU. However, the sustained
low interest rate environment is likely the single biggest factor affecting credit
unions today – credit unions across Canada are facing radically decreased
profitability. On top of that, we have increased regulatory requirements
that are driving up our costs and challenging our efficiency.
What’s happening
in the marketplace?
Len: Then, what does this mean for the future of credit unions?
And for MSCU?
JK: A key study by Deloitte, a large international accounting
firm, indicated that credit unions need to “go big or go niche.”
That is, they need to either increase their size, mostly through
mergers, or define a unique niche to serve; and even then,
size is necessary. Credit unions all around us are merging to
become bigger. In contrast, MSCU has been amongst the most
successful niche players in Ontario yet we need to grow more
quickly in membership and asset size to restore an appropriate
level of efficiency and profit margin.
– continued on page 2
A Few
Words From...
Pamela Fehr,
Vice-President,
Marketing
Looking out my office window I’m
reminded we’re in the dead of winter. The
land is frozen so thinking about planting
seeds in my garden is a long way off. Still,
there are many steps in the process to
reap an abundant harvest and preparation
begins long before the soil is ready. At
MSCU we are tending the soil of our
garden and seeking to plant seeds for our
future.
By now I hope you’ve heard about our
Town Hall Meetings. As I write we are
halfway into a series of meetings around
the topic of MSCU’s future direction. Our
focus during Town Halls is to share our
thoughts with you and hear your voice in
response. It’s during times like these I’m
reminded just why I’m thankful to work at
a credit union. Rather than being driven
by shareholder demands, we have the
privilege of working cooperatively with our
members who are genuinely interested in
MSCU’s best shared future, and who come
to their thoughts and opinions from a
set of values that are similar to mine. I’m
thankful that it’s YOU who helps shape my
workplace and that during these Town Hall
meetings, I’m sitting across from friendly,
caring faces who have MSCU’s collective
best interests at heart.
Share faith > finances
The work we’re doing and the questions
we’re asking our members at Town Halls
will impact our name, our brand, and
our focus going forward. Following the
meetings, our leadership team and your
board of directors will deliberate on the
feedback we’ve heard. At our AGM, you’ll
have a chance to hear our reflections and
what we think the next steps are for the
credit union. I encourage you to attend our
AGM this year and share your voice once
again – we will talk about our mission,
vision, name, and most importantly, the
values that continue to define us. Hearing
your voice on how we put our faith and
finances together matters. Please join us as
we tend the soil of our collective garden
and plant seeds for our future!
2 | Spring 2015
Plant Seeds
… continued from page 1
Leroy: That sounds like things are working against us. Surely there is more to the picture than
that. What do we have working in our favour?
Brent Zorgdrager, Chief Executive Officer: Indeed there is good news as well! MSCU
continues to benefit from being in a strong capital position and our shares in Qtrade Financial
Group are generating significant additional gains for us. We continue to grow organically and
we have a strong and growing reputation within the credit union system that indicates we’re
doing a lot of things right.
Over and above all of this, we have our rootedness in the Anabaptist faith, which has moved
us to create, and to maintain for over 50 years, a values-based financial institution.
This is a unique niche on a provincial and national level! And we lead the way with valuesbased products like Oikocredit Global Impact GICs, Church Builder GICs, and Member
Assistance Services (MAS). Our faith-informed philosophy encouraging members to Share,
Save, Spend – not just save and spend like the banks – clearly sets us apart as well.
Len: Given all that’s going on in the marketplace and at MSCU, both the favourable and the
not-so-favourable, how should we respond? What’s the impact on our vision going forward?
BZ: While we have had consistent, but modest, organic growth, it’s clear that this growth is
not sufficient in the long term. The majority of our credit union peers are dealing with this via
mergers, but our unique service to communities of faith means there are no credit unions that
are clear partners for us at this time.
Leroy: So what do you propose we do?
BZ: We believe that we should emphasize values that flow from our faith-based, values-driven
identity – play to our strengths – and explicitly invite those who share our values to join us.
While remaining abundantly clear about who we are and what we stand for, we want to lift
off the bushel basket and put our light on top of a lighthouse.
We’ve always been very welcoming to those that come into our credit union. In 2010, we
expanded our bond, welcoming those who embrace our Statement of Shared Convictions.
We believe we now need to be more invitational, to go out and let people know we exist so
they can choose us to help them connect their values and their finances. When we expanded
our bond, there was some concern that this change would dilute our core essence. I believe
that reaching out has actually improved and strengthened our connection to our values.
We now talk with clarity and intentionality about our convictions every time we open a new
membership.
Len: What’s stands in the way of growth and how
are we addressing those barriers?
Pamela Fehr, Vice President,
Marketing: We already pursue
traditional and non-traditional
options to reach people in cost
effective ways and we’d like to do
more. But before marketing more
widely, we wanted to understand
member and non-member
perceptions of our current brand.
– continued on page 5
How welcoming
are we?
What’s in a name?
Mennonite Savings
and Credit Union
Advancing Peace, Social Justice, and Mutual Aid in our communities
Focus Grant Recipient
Mennonite Community Services – $10,000 Focus Grant
Each year a $10,000 focus grant is chosen.
This year’s recipient, on the theme of peace,
is Mennonite Community Services for
their “Peace and Peace Keeping Among
the Youth” project. This project will see
expanded Low German radio programming
featuring interviews with Mennonite Central
Committee service workers working with
youth soldiers and interactive chats with
youth exploring the meaning of peace, how it
pertains to them, and exploring cross-cultural
relationships.
Additional Grant Recipients
The MSCU Charitable Fund:
15 years of local impact
We’re pleased to announce this year’s
recipients of The MSCU Charitable Fund
grants. Each year, projects are selected from
many submissions to further our Stewardship
in Action themes of peace, social justice, and
mutual aid. This year marks the 15th year these
grants have been awarded to community
building projects from across the province.
With $80,000 in grants disbursed this year,
almost $850,000 has been distributed to
245 projects at 144 different churches and
organizations!
Peace
Social Justice
Farmtown Canada’s Funny Farm Ministries
– Farmboys Rock $5,000
Community Justice Initiatives
– BackHome: Reintegration Circles*$6,500
Fresh Start Maternity Supports
– Getting Unstuck Program
Life Change Adventures
– Sunnydale Connect
$4,000
$1,000
Highland Stirling Community Group
– Growing Community Together$4,000
Mennonite Coalition for Refugee Support
– Legal and Settlement Support Program* $6,000
Jane Finch Faith Community
– Community Missionary Program
The Working Centre
– Community Access Bikeshare (CAB) $3,000
Lao Christian Fellowship Mennonite Church
– Peacebuilding Community*
$2,500
Mennonite World Conference
– MWC Global Assembly 2015
$3,000
Reception House Waterloo Region
– Soccer for Al
$5,000
$7,000
Mutual Aid
Mennonite Central Committee Ontario
– Lazarus Rising
$5,000
ONE – Connecting people in Hope*$6,500
Silver Lake Mennonite Camp – Outdoor Education
Peace Curriculum Development
$5,000
Queen’s Bush Rural Ministries
– Support for Farmers
$4,000
South Shore Christian School
– Community Outreach
Stratford House of Blessing
– Pork for Life
$1,500
$1,000
For more information, please visit MSCU.com
or contact Benjamin Janzen, Stewardship
in Action Advisor, at bjanzen@mscu.com or
519.772.5243.
* Indicates projects receiving multi-year support.
Agricultural partnerships lead to global impact
We announced in our summer issue of
Share that, as part of our commitment to the
ongoing Farmer to Farmer partnership with
MEDA (Mennonite Economic Development
Associates), we’d donate $50 for every
agricultural loan we advanced in 2014.
Because of your business with us, we are
excited to announce that 483 loans led to
a $24,150 donation in December. This big
opportunity is a result of the many successful
partnerships between MSCU account
managers and our members. Thank you!
MEDA’s current agricultural projects support
farmers in countries as diverse as Ukraine,
Tanzania, Nicaragua, and Ethiopia where
innovative partnerships improve access to
technology and markets that improve the
lives of millions.
Typically, dollars donated to MEDA are used
as seed funds and are multiplied seven
times through partnerships with other
organizations and governments to make a
huge impact around the world.
Spring 2015 | 3 | Share faith > finances
We also invite all members to: discover more
by visiting www.meda.org; consider donating
online, by cheque, or through ChangeIt;
and spread the word to others about this
partnership!
Beyond relief to lasting solutions
FRAUD: RECOGNIZE IT. REPORT IT. STOP IT.
March is Fraud Prevention Month
Every year, thousands of Canadians fall
victim to fraud. Most people don’t think it
could happen to them, but fraudsters are
using increasingly sophisticated methods
to target Canadians of all ages and from all
walks of life. Here are a few updates from the
Canadian Anti-Fraud Centre’s most recent
Annual Statistical Report:
• Ontario consumers were most targeted by
fraud based on total number of complaints
and total reported dollar loss;
• Although “Telephone / Facsimile” is
reported as the most prevalent solicitation
method used; victims of an “Email /Internet
/ Text Messaging” solicitation method have
the highest total reported dollar loss;
• Canadians aged 50 to 59 are the most
targeted and reported the highest dollar loss.
For more information on fraud prevention,
call or visit your local branch, MSCU.com or
the Canadian Anti-Fraud Centre website.
MSCU.com has been updated with
information to help our members
Recognize, Report, and Stop fraud.
Click on the “Protect Yourself” button on
the MSCU.com homepage to learn more.
Co-operative banking
means sharing our earnings!
MSCU is excited to announce that $840,000 was deposited into
member accounts as Your Share of our 2014 earnings - that’s
co-operative banking in action!
Visit
mscu.com
and you’ll
Welcome to MSCU
Join us in welcoming our new staff!
Leah Brown
Casual Member Services
Representative
Sarah Dyck
Casual Member Services
Representative – Aylmer
Benjamin Tennant
Casual Member Services
Representative
Did you know...
Co-operative banking is based on the idea that profits should have a higher purpose.
They should be returned to you, in the form of great rates, better service, and as a share of
earnings. As a credit union rooted in faith values, it feels absolutely right to share what we’ve
collectively earned.
Co-operative banking means you’re much more than a customer, you’re a Member. Even
better, you’re an Owner. Receiving a share of earnings is just one of the benefits of being a
Member and an Owner at MSCU.
Your Share of earnings from member loans and non-registered deposits will be split evenly
between additional Owner Shares and cash. Check out your Owner Shares balance and
your current account to see Your Share!
For more information about co-operative banking, please visit cooperativebanking.ca.
Lending is different at MSCU
We encourage responsible use of credit, apply faith-based stewardship
principles, and seek to live out our values every day.
2
Residential Mortgage Special
.99%*
5 Year Term
Credit unions were the
first financial institutions
to allow women to borrow
under their own name.
Doing what’s right
is what co-operative
banking is about.
When you choose co-operative banking you’re more than a customer.
You’re a Member and an Owner.
* Rate subject to change. Rate includes relationship pricing. Annual Percentage Rate (APR) is equivalent to the Annual Interest Rate. APR assumes no fees or
charges apply. If fees or charges apply, your APR would increase.
Share faith > finances
Call your local Personal Lending Specialist today and experience the MSCU difference.
Spring 2015 | 4
Mark your calendars!
Please join us for MSCU’s 51st Annual General Meeting
When:
Tuesday April 14, 2015
Where:
Creekside Church, 660 Conservation Drive, Waterloo
Registration: 6:30 p.m.
Meeting: 7:00 p.m.
Plant Seeds
We will continue to
, discuss change, and hear how
members would like us to express our values.
Following the meeting, share in fellowship and dessert, wander through our
MSCU Art Gallery, and check out the MSCU commissioned 50th Anniversary quilt.
Transportation will be provided from Aylmer and Mount Forest with pickup
time at 5 p.m. A minimum number of passengers will be required.
An advance meeting will be held in Leamington on April 9th at
Leamington United Mennonite Church at 7 p.m.
Plant Seeds
… continued from page 2
So we held focus groups, surveyed our members, and surveyed the broader non-member
marketplace to see whether they were interested in what we had to offer and what barriers
might be in the way. We identified three main barriers.
Firstly, many people simply don’t know about credit unions, how they are different and that
they can offer complete financial services. Secondly, potential members don’t understand
clearly why we are in business and what we offer at MSCU. And thirdly, and one that brings
up many mixed emotions, is our name.
As staff and members, many of us identify closely with ‘Mennonite’ to describe our faith,
our culture, our heritage, and our community. However, through the research we conducted,
we see that our name is not considered welcoming, even to others who share our faith and
our values.
Leroy: So what do we do about these barriers? And what about our name?
PF: We’re working with the Credit Unions of Ontario to help raise awareness of credit
unions across the province. And we think we can find different words to more effectively
communicate who we are and why we’re in business. It’s our name that is the challenging
question. Through many conversations, we identified three important elements of a name
for us: faith, community, and a sense that we are making a positive difference in people’s lives.
So, with these pillars in mind, we’d like to hear member thoughts on the advantages and
disadvantages of changing our name.
Brian Barsness,
Director,
Investment
Services,
Head Office
The first of its kind in Ontario!
A guaranteed investment with
global impact
MSCU announced in early February that
we have teamed up with Oikocredit
Canada to launch the Oikocredit Global
Impact GIC. For the first time ever, people
in Ontario can invest in a guaranteed, RSPeligible investment aimed at lifting people
out of poverty in low-income countries!
Working with Oikocredit, a global leader
in impact investing, is a natural fit for our
credit union with their strong church roots
and values-based approach.
Eugene Ellmen, National Director of
Oikocredit Canada, shares that, “We
know Canadians and Ontarians want
investments that directly benefit people
and communities.” Mr. Ellmen adds,
“However, offerings in this area are very
limited. Being able to contribute to global
impact through personal investments is
very exciting and begins to fill a big gap in
the marketplace.”
In 2001 MSCU helped launch Meritas
SRI Funds which are now held by 17,000
investors across Canada. The addition of
the Oikocredit Global Impact GIC builds on
MSCU’s socially responsible investments
(SRI) offering and it’s humbling to see the
positive influence we’ve had on the SRI
community in Canada.
The Oikocredit Global Impact GIC is
another way you can align your values
with your finances while supporting
people around the world. The GIC is being
offered as a 12 month term at an initial
interest rate of 1.30% and is available to
any individual or institutional investor in
Ontario who is a member of MSCU.
If you would like to learn more about
Oikocredit Canada, visit their website at
Oikocredit.ca.
To learn how your investments can have
Global Impact, call or visit your local branch
to speak with a member of our Investment
team today!
Share faith > finances
So, how have members responded to these topics raised today and to the question of our
name? We are still in the midst of listening to the range of perspectives that you hold. We
are hearing all manner of feedback and will reflect on what we hear as we continue with
Town Halls. We look forward to sharing a summary with you on what we’ve heard later this
spring. Stay tuned!
From the Desk of…
Spring 2015 | 5
AYLMER
589 John Street North, Aylmer, ON N5H 2B6
Your investments can have Global Impact!
ELMIRA
25 Hampton Street, Elmira, ON N3B 1L6
KITCHENER
50 Kent Avenue, Suite 101, Kitchener, ON N2G 3R1
Leamington
243 Erie Street South, Leamington, ON N8H 3C1
Milverton
12 Main Street South, Milverton, ON N0K 1M0
MoUNT FOREST
116 Main Street North, Mount Forest, ON N0G 2L0
New Hamburg
100 Mill Street, Unit M, New Hamburg, ON N3A 1R1
Oikocredit
Global Impact GIC
Waterloo
53 Bridgeport Road East, Waterloo, ON N2J 2J7
1.888.672.6728 | info@mscu.com
www.mscu.com
© Opmeer Reports
Meritas SRI Funds are devoted solely to creating and marketing
socially responsible investments.
Meritas SRI Funds is a division of OceanRock Investments Inc.,
a member of the Qtrade Financial Group. Financial planning
services and mutual funds are offered through Qtrade Asset
Management Inc., member MFDA. Purchasing investments
with borrowed monies involves greater risk than a purchase
using cash resources only. Please speak to your representative
to discuss your personal situation. Mutual funds and securities
related financial planning services are offered through Qtrade
Asset Management Inc., Member MFDA.
Commissions, trailing commissions, management fees and
expenses all may be associated with mutual fund investments.
Please read the prospectus before investing. Mutual funds
are not guaranteed, their values change frequently and past
performance may not be repeated. Publication date 12/2014.
We know how important your savings and investments are to you as you plan
for your future. We also know that as a credit union member you care deeply
about helping others in your community and beyond.
We’ve teamed up with Oikocredit, an international co-operative, to offer
members a GIC that provides a local, secure, guaranteed investment AND
supports international sustainable development.
An Oikocredit Global Impact GIC is one way you can align your values with
your finances while supporting people around the world.
Speak with our Investment team to learn how
your investments can have Global Impact!
© 2014 Mennonite Savings and Credit Union. For permission to
reprint an article from Share, email info@mscu.com. If you have
any questions or comments about this issue of Share, please
email info@mscu.com or call us at 1.888.672.6728. This newsletter
is available online at www.mscu.com.
Printed on paper:
Made with recycled fibres
Manufactured with
renewable energy
Bleached without liquid or
gaseous chlorine
FSC FPO