Organizational Case Study Douglas Pawson Professor Dr. J. Scott MBAD630 Shannon School of Business Cape Breton Universtiy September 28, 2011
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
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.
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%)
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
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
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
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.
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