THE HISTORY OF MANITOBA CREDIT UNIONS IS CHARACTERIZED BY STRENGTH, RESILIENCY, AND AN UNRELENTING COMMITMENT TO SERVING THE NEEDS OF MEMBERS AND COMMUNITIES. |
Garth Manness, President & Chief Executive Officer
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Every day, credit unions support individuals, families, local businesses and community organizations. Through their actions, credit unions have contributed to the betterment of Manitoban communities for more than 80 years.
Credit unions have a strong history of adapting to change, and 2020 introduced change of a greater magnitude than ever before. Only two months into the year, it became clear that a global health crisis was looming. Conditions shifted quickly, introducing complexity, uncertainty, and the need to be agile. When the pandemic was declared, Credit Union Central of Manitoba (CUCM) focused on two over-arching priorities:
To further these goals, the majority of our workforce shifted to remote work in March. We embraced virtual channels and increased communication with employees, credit unions and other stakeholders to understand their needs. Supporting credit unions in COVID-19 responses was a major focus for all functions, in addition to planned initiatives. At times, it felt like we were building the bridge while we walked on it, facing new challenges, and designing new solutions without being in the same room.
Through this letter, I share highlights of our journey in responding to the pandemic while delivering on corporate priorities. In other sections of this report, you will find stories of how credit unions responded to the needs of their members, employees, and communities. Our 2020 annual report tells a story of adaptability, strength, and resilience in a year like no other.
Credit unions have a strong history of adapting to change, and 2020 introduced change of a greater magnitude than ever before. Only two months into the year, it became clear that a global health crisis was looming. Conditions shifted quickly, introducing complexity, uncertainty, and the need to be agile. When the pandemic was declared, Credit Union Central of Manitoba (CUCM) focused on two over-arching priorities:
- Supporting the health and well-being of our employees and their families, and
- Meeting the needs of our member organizations, both traditional and emerging.
To further these goals, the majority of our workforce shifted to remote work in March. We embraced virtual channels and increased communication with employees, credit unions and other stakeholders to understand their needs. Supporting credit unions in COVID-19 responses was a major focus for all functions, in addition to planned initiatives. At times, it felt like we were building the bridge while we walked on it, facing new challenges, and designing new solutions without being in the same room.
Through this letter, I share highlights of our journey in responding to the pandemic while delivering on corporate priorities. In other sections of this report, you will find stories of how credit unions responded to the needs of their members, employees, and communities. Our 2020 annual report tells a story of adaptability, strength, and resilience in a year like no other.
SUPPORTING THE INTERESTS OF MANITOBA CREDIT UNIONS AND THEIR MEMBERS
In 2020, we engaged regularly with legislators, regulators and policy makers regarding shared goals of slowing the spread of COVID-19 and delivering economic relief to those in need. In March, credit unions and other financial services institutions were declared essential services.
Over the year, we met regularly with the Deposit Guarantee Corporation of Manitoba (DGCM) and the Financial Institutions and Regulation Branch (FIRB). We also participated in roundtable discussions with the Province focused on Manitoba’s financial service sector, providing insights into the ways in which credit unions were impacted by COVID-19, and the important role they played in supporting individuals and businesses.
As the national trade association for credit unions, the Canadian Credit Union Association (CCUA) leads federal government relations. In 2020, we worked with CCUA in supporting government roll out of relief programs for Canadians. After a brief pause due to COVID-19, open banking returned as a priority for the Federal Department of Finance. The government gathered feedback regarding a proposed open banking framework for Canada in late 2020, which is key to moving financial services options and innovation forward for consumers and businesses. CUCM provided input to the consultation through our participation on CCUA’s Open Banking Legislative Committee.
Over the year, we met regularly with the Deposit Guarantee Corporation of Manitoba (DGCM) and the Financial Institutions and Regulation Branch (FIRB). We also participated in roundtable discussions with the Province focused on Manitoba’s financial service sector, providing insights into the ways in which credit unions were impacted by COVID-19, and the important role they played in supporting individuals and businesses.
As the national trade association for credit unions, the Canadian Credit Union Association (CCUA) leads federal government relations. In 2020, we worked with CCUA in supporting government roll out of relief programs for Canadians. After a brief pause due to COVID-19, open banking returned as a priority for the Federal Department of Finance. The government gathered feedback regarding a proposed open banking framework for Canada in late 2020, which is key to moving financial services options and innovation forward for consumers and businesses. CUCM provided input to the consultation through our participation on CCUA’s Open Banking Legislative Committee.
UNDERSTANDING DISRUPTION AND OPPORTUNITIES
CUCM places a priority on staying connected to signals of change for credit unions, including operational, competitive and strategic developments. Shifting consumer behaviours and preferences, developments in the competitive landscape, changes in the regulatory and policy environment, and advances in technology are all driving the need for new approaches.
We gather information and synthesize learnings for our own corporate planning purposes and share insights with credit unions all the time.
In 2020, we undertook research focused on building a longer-term view of the future (2030 and beyond). We explored scenarios for how the environment may evolve in the future, and analyzed models for meeting member needs in that context. Research and findings were shared with credit union leaders to support their planning processes.
Working with consulting economists from Deloitte, MNP and the University of Winnipeg, we gathered insights regarding the economy, with a focus on COVID-19 impacts and specific Manitoba economic regions. We also researched trends in the human resources landscape, including employee wellness, employment legislation, compensation, and COVID-19 considerations
We gather information and synthesize learnings for our own corporate planning purposes and share insights with credit unions all the time.
In 2020, we undertook research focused on building a longer-term view of the future (2030 and beyond). We explored scenarios for how the environment may evolve in the future, and analyzed models for meeting member needs in that context. Research and findings were shared with credit union leaders to support their planning processes.
Working with consulting economists from Deloitte, MNP and the University of Winnipeg, we gathered insights regarding the economy, with a focus on COVID-19 impacts and specific Manitoba economic regions. We also researched trends in the human resources landscape, including employee wellness, employment legislation, compensation, and COVID-19 considerations
SOLUTIONS THAT ARE ALIGNED TO CHANGING CREDIT UNION NEEDS
Providing support to shifting credit union needs (across operational and strategic spheres) is core to CUCM’s role. In 2020, we designed and updated solutions for credit unions in many areas including: treasury, payments, lending, corporate strategy and analytics, people strategy, compliance and operations, research, communication, and marketing.
We support credit unions in a variety of ways, including direct engagement, updates on new and changing developments, specialized credit union working groups, manuals, model policies and templates, webinars, training and more.
The conditions brought about by the pandemic resulted in the need for news insights and solutions in many areas. To support this, CUCM provided:
We support credit unions in a variety of ways, including direct engagement, updates on new and changing developments, specialized credit union working groups, manuals, model policies and templates, webinars, training and more.
The conditions brought about by the pandemic resulted in the need for news insights and solutions in many areas. To support this, CUCM provided:
- Principal and Interest Deferral guidance, developed in conjunction with DGCM as credit unions provided support to members experiencing financial hardship
- It is estimated that more than 25,000 deferrals were provided through Manitoba credit unions.
- Support for the delivery of the Government of Canada’s Canada Emergency Business Account (CEBA) loan program through Manitoba credit unions. The CEBA loan provides partially forgivable loans to small businesses that experienced diminished revenue due to COVID-19.
- CUCM worked with CCUA and the other Centrals on initial program rollout within the credit union system. In April 2020, all Manitoba credit unions, and the Caisse Financial Group, were able to offer CEBA loans to members if they wished.
- CUCM created an in-house solution to act in the role of CEBA Program Administrator for approximately half of Manitoba’s credit unions.
- In 2020, an estimated 47% of CEBA Program funds flowed to Manitoba businesses were provided through Credit Unions and the Caisse Financial Group.
- A new section on CUCM’s public website featuring COVID-19 relief programs and resources for Manitobans.
- Social media messaging focused on financial support available through credit unions, COVID-19 relief measures, cybersecurity and fraud awareness, and reinforcement of public health messaging.
- Primary and secondary research to understand impacts of COVID-19.
- Facilitation of working groups, providing the forum for sharing of information related to pandemic issues and crosspollination among credit union subject matter experts. CUCM also provides customized solutions and support to external clients on a contract basis including Celero Solutions, the Prairie Payments Joint Venture, CU CUMIS Wealth Holdings, and Everlink.
PRAIRIE PAYMENTS JOINT VENTURE
In late 2019, the three Prairie Centrals, Credit Union Central of Manitoba, Alberta Central and SaskCentral executed a joint multi-year agreement to shift to a Payments as a Service (PaaS) model, through a platform provided by IBM. 2020 was a year of significant progress this initiative, which collectively represents more than 75 credit unions across the three provinces.
Prairie credit unions are leveraging the model to drive innovation and new payment product offerings for members, to digitally transform and modernize credit union payment services in Canada — the largest agreement of its kind for Canadian credit unions.
Transition to the IBM platform began in early 2020. Coordinated by PPJV, a cross-disciplinary team from Centrals, Celero, Credit Union Payment Service (cups), IBM and external consultants worked diligently to engage stakeholders, develop transition plans, and initiate the building and testing of solutions. Full transition is planned for 2021.
Prairie credit unions are leveraging the model to drive innovation and new payment product offerings for members, to digitally transform and modernize credit union payment services in Canada — the largest agreement of its kind for Canadian credit unions.
Transition to the IBM platform began in early 2020. Coordinated by PPJV, a cross-disciplinary team from Centrals, Celero, Credit Union Payment Service (cups), IBM and external consultants worked diligently to engage stakeholders, develop transition plans, and initiate the building and testing of solutions. Full transition is planned for 2021.
CUCM'S OWN INFRASTRUCTURE AND LEARNING JOURNEYS
CUCM employees continue to model the principles that are core to our ways of working: knowledge flow, innovation, engagement, and collaboration.
As financial services become more complex, CUCM’s work has also increased in complexity, requiring different skills than in the past. Our 2020 corporate learning plans explored ways in which employees can foster a growth-focused mindset and build new approaches to collaboration. We also introduced new measures for capturing employee feedback and perspectives, checking in often as we adapted to our new remote environment.
As part of our individual and corporate learning, CUCM employees also introduced a focus on Reconciliation. CUCM became a member of the TRC92 Employer Consortium in late 2019. In 2020 we began to introduce corporate learning about the history of Aboriginal peoples in Canada, as called for in the Truth and Reconciliation Call to Action Number 92. We recognize the importance of making a commitment as individuals and as an organization, to learning from many facets and perspectives. This has, and will continue to include bringing forward learning opportunities, networking with other organizations, and connecting with the needs of the community. This is a critically important focus area for Canadians, and we commit to continued learning and growth into the future.
As financial services become more complex, CUCM’s work has also increased in complexity, requiring different skills than in the past. Our 2020 corporate learning plans explored ways in which employees can foster a growth-focused mindset and build new approaches to collaboration. We also introduced new measures for capturing employee feedback and perspectives, checking in often as we adapted to our new remote environment.
As part of our individual and corporate learning, CUCM employees also introduced a focus on Reconciliation. CUCM became a member of the TRC92 Employer Consortium in late 2019. In 2020 we began to introduce corporate learning about the history of Aboriginal peoples in Canada, as called for in the Truth and Reconciliation Call to Action Number 92. We recognize the importance of making a commitment as individuals and as an organization, to learning from many facets and perspectives. This has, and will continue to include bringing forward learning opportunities, networking with other organizations, and connecting with the needs of the community. This is a critically important focus area for Canadians, and we commit to continued learning and growth into the future.
IN CLOSING
I would like to express my profound appreciation for the commitment and creativity embodied by all CUCM employees. Although traditional ways of working were disrupted, your dedication to service did not waver. This is recognized by our member credit unions, who have once again indicated strong satisfaction through our annual satisfaction survey.
To Paul Holden, CUCM’s Chair of the Board of Directors, and each of CUCM’s Directors, thank you for your leadership and support as CUCM adapts to the ever-changing needs of our member credit unions.
The COVID-19 chapter in our history continues to be written. While it is tempting to look forward to an end to the pandemic, where conditions would suddenly return to normal, we accept that will not be the reality. The ripples of the pandemic have gone beyond the immediate crisis and have already created permanent change. Some of this change has been positive and innovative, and some has been very hard on various segments of our society. Existing inequalities have, in many cases, been amplified.
Credit unions, as co-operative financial institutions owned by their members, are there to support people to take control of their financial future. Manitoba credit unions will continue to provide solutions for members, and in so doing contribute to the building of stronger communities as we collectively walk the path forward.
As we embark on the next year, we will continue to remain focused while emphasizing the need for agility, knowing it too, may be unlike any year we’ve had before. CUCM looks forward to working together with Manitoba credit unions in a spirit of co-operation as we support a strong credit union system for all Manitobans.
To Paul Holden, CUCM’s Chair of the Board of Directors, and each of CUCM’s Directors, thank you for your leadership and support as CUCM adapts to the ever-changing needs of our member credit unions.
The COVID-19 chapter in our history continues to be written. While it is tempting to look forward to an end to the pandemic, where conditions would suddenly return to normal, we accept that will not be the reality. The ripples of the pandemic have gone beyond the immediate crisis and have already created permanent change. Some of this change has been positive and innovative, and some has been very hard on various segments of our society. Existing inequalities have, in many cases, been amplified.
Credit unions, as co-operative financial institutions owned by their members, are there to support people to take control of their financial future. Manitoba credit unions will continue to provide solutions for members, and in so doing contribute to the building of stronger communities as we collectively walk the path forward.
As we embark on the next year, we will continue to remain focused while emphasizing the need for agility, knowing it too, may be unlike any year we’ve had before. CUCM looks forward to working together with Manitoba credit unions in a spirit of co-operation as we support a strong credit union system for all Manitobans.
Garth Manness
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IN MEMORY
CUCM would like to dedicate the 2020 Annual Report to two long-term employees. Nedžad Brkić, CUCM’s Director of Research, Strategy and Knowledge Transfer, passed away suddenly and unexpectedly in January 2021. Michael Leitch, retired from the role of Manager, Research, passed away only one month prior. Following Michael’s retirement and during his illness, the two friends had remained in touch. Nedžad and Michael were close colleagues at CUCM for many years. They shared a love of learning, and a passion for research and the co-operative movement. For more than two decades, they delivered a wide range of creative research projects for CUCM and for credit unions. They have both made a positive impact on the Manitoba credit union system and will always be remembered by their colleagues.