Back in January, Nick Mundey of Noventis Credit Union (center) presents a $4,000 cheque to Gimli High School vice principal Leona Groot (left) and physical education teacher Brad Johnson (right). (File photo)
Noventis Credit Union is set to merge with Starbuck Credit Union to create the ninth largest credit union in Manitoba. Members of both credit unions voted overwhelmingly in favour of a merger, with 95 per cent of Noventis members and 96 per cent of Starbuck members voting for the merger to proceed.
“It’s a very strong mandate from both organizations,” Noventis chief executive officer (CEO) Kevin McKnight said. “It reflected that the members are in agreement with the recommendation from each of the boards.”
Merger talks began with collaboration between both community-based financial institutions.
“We’re always looking for ways to collaborate with other credit unions in Manitoba,” McKnight explained. “Starbuck was in a position that they were looking at potential collaboration and merger opportunities. They approached us and discussion continued on over a period of a year. We felt we were a good match to join together for the ultimate collaboration which is a merger.”
The new credit union will boast 11 branches, 150 employees, 26,400 members and approximately $732 million in assets. McKnight stated the expanded branches for members will not be the only advantages the merger would provide. Starbuck Credit Union has two branches in Starbuck and Headingley. Noventis has branches in Arborg, Ashern, Eriksdale, Fisher Branch, Gimli, Moosehorn, Riverton, Selkirk and Winnipeg Beach.
“There are a lot of pieces around regulation in the financial industry, and compliance requirements on a variety of things we deal with because we are dealing with financial services,” he said. “It’s always challenging for smaller organizations to be able to comply with all the new rules and regulations coming forward.”
Starbuck Board of Directors President Doug Mosset echoed McKnight’s thoughts.
“This is a good day for our members because it will mean we have a strong foundation to serve them well into the future,” Mosset said in a press statement. “We know our cultures, systems and values are a good fit and that’s what really matters.”
The merger still has to pass through the competition board, with the changes planned to go through Oct. 1.