Transcript of "Organizational Case Study - Vancity"
Organizational Case Study<br />Douglas Pawson<br />Professor Dr. J. Scott<br />MBAD630<br />Shannon School of Business<br />Cape Breton Universtiy<br />September 28, 2011<br />
What Makes Vancity Unique?<br />MBAD630<br />Douglas Pawson<br />Formed in 1949 to be community-based and member-owned<br />Full-suite retail and commercial banking options<br />Developing social finance investment and lending options<br />
Vancity Key Figures<br />MBAD630<br />Douglas Pawson<br />Vancity is the largest credit union in Canada (exlcuding Quebec), by total assets (CAD$14.5B) as ranked by Credit Union Central of Canada, 2011.<br />Over 417,000 members – second largest in BC, behind Coast Capital Savings<br />More than 2,000 employees and 59 branches across Southern British Columbia.<br />
Credit Union Industry in Canada<br />MBAD630<br />Douglas Pawson<br />Top 100 Credit Unions in Canada hold CAD$115.494B in total assets (Vancity = 12%)<br />These credit unions represent 4.2 million members (Vancity = 10%)<br />These credit unions have 1,254 locations across Canada (Vancity = 5%)<br />
Vancity Leadership<br />MBAD630<br />Douglas Pawson<br />Led by CEO Tamara Vrooman<br />Diverse range of skills and experiences comprise executive leadership & Board of Directors<br />Expertise bodes well for future recommendations with extensive backgrounds in: Social finance, compliance, technology in addition to traditional accounting and finance backgrounds<br />
Financial Performance<br />Pertinent five-year financial measures:<br />Best Current Ratio of top 3 credit unions (Servus Credit Union, & Coast Capital Savings)<br />High Community Investment Ratio of 34.55%<br />High Gross Profit Margin of 53.27%<br />MBAD630<br />Douglas Pawson<br />
Key Considerations Moving Forward<br />MBAD630<br />Douglas Pawson<br />Housing and labour market growing = residential mortgages equal CAD$6.4B, 54% of loan portfolio. Projected to grow fuelled by static interest rates<br />Growing socially responsible asset management division = CAD$666.4 or 29% of member investments in 2010<br />Developing diverse subsidiary portfolio including Citizens Bank – retail credit cards<br />
Strategic Recommendations<br />MBAD630<br />Douglas Pawson<br />Increase efforts to procure commercial lending. In 2010 commercial lending accounted for CAD$1.43B or barely 12% of loan portfolio<br />Increase socially responsible investment and asset management in projected growth industries. Clean energy and utilities growing at triple digit rates over past 5 years.<br />Adopt backward vertical integration subsidiary to license proprietary mobile banking software to smaller credit unions.<br />
Conclusion<br />MBAD630<br />Douglas Pawson<br />Vancity continues to grow through the tough economic recovery period. Fuelled by low-interest rates, a growing membership and innovative business practices.<br />For more information visit<br />www.vancity.com<br />
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