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