Our Three Year Plan is a roadmap that charts a course for us as we work toward redefining wealth. We hope that you're interested in joining us on this journey to make values-based banking a growing force for lasting positive change. We invite you to read our Plan and share it.

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Three Year Plan
Accelerating Impact

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Message from the Board
Each year, Vancity produces an integrated annual report that summarizes our financial, social and
environmental performance over the past year. This gives our members, communities and partners an
opportunity to see what we have achieved and whether or not we did what we said we would do.
This year, we decided to do something different. In addition to producing an integrated annual report, we
wanted to share our Three Year Plan with you. This plan speaks to what we intend to do over the next
three years. It is a look forward rather than a look back.
Throughout the year, the Board and management engage members and community partners to understand
how the real economy is impacting individuals, families and communities. We see the unique opportunity
that Vancity has to make a positive difference and want to ensure that the credit union is putting our
members’ assets to their highest and best use in service of helping communities thrive and prosper.
As you read this plan, we hope you see what makes us different. We hope you see a credit union that is
listening and responding to real needs. This plan is not about taking what the market will give us, but about
building relationships, deepening our connection in community and gaining deeper insight into opportunities
to create sustainable impact for our members and the communities in which they live and work.
The guiding principles for building healthy communities that the Board developed in 2012 are embedded
throughout this plan and speak to the commitments we have made to put our whole balance sheet in
service of helping our communities thrive and prosper. We want to be bold and we believe the goals and
strategies outlined in this plan are important next steps to achieving our vision.

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Executive summary
We are excited to share our 2014-2016 Three Year Plan – Accelerating Impact – with our members,
communities, partners and stakeholders.
When I joined Vancity in September 2007, Vancity had just approved a new Five Year Plan in the fall of
2006. The goals of this plan were quite different from what you will see in this plan. This is not because
our core values have changed – in fact, I believe our 1946 founders would have found resonance with the
vision we unveiled in 2008 to redefine wealth.
What did change was our view of how best to achieve our values. In 2007, we believed that the best way
for us to contribute to community and environmental sustainability was to compete with conventional
financial institutions – banks – on their own terms. We shied away from doing things differently from
banks in our daily business.
But November 2008 marked an important turning point. In the midst of the financial crisis, our Board
approved a new vision for redefining wealth as well as a new Three Year Plan that set the stage for our
transformation journey. Since that time, we have been working hard to leverage our unique strengths
as a financial cooperative to redefine what we do and how we do it in service of accelerating impact
and building healthy communities. We have focused on embedding our values and guiding principles
in everything we do and becoming a leader in values-based banking in our sector. We are pursuing
opportunities to uncover new markets, exploring ways to better serve those who are underserved, looking
at ways to invest our members’ money more sustainably, emphasizing our cooperative roots as a source
of future strength and resilience, seeking partners primarily for a values fit, and connecting our members
more directly to our core difference as a financial co-operative through our marketing and advertising.
We have come a long way in five years, but as you will see in this plan, our transformation is not yet
complete. We are transforming the way we do business and this requires moving people together to a new
way of thinking and working.
We cannot forget, however, that few are following our path. We are creating a roadmap not following one.
We are measured against our peers and the regulatory environment and we have set a high bar. In order to
reach it, we must ensure that the change we seek inside Vancity is deeply held and permanent.
We can expect to see competition intensify as financial institutions look for ways to differentiate
themselves in a tough market. However, we believe that what we are doing cannot be easily replicated. We
are achieving growth in a sustainable way and are allowing our members to grow with us.
As you read this plan, I hope that you are inspired as much as we are to redefine wealth. I hope that
you see that the opportunity to achieve sustainable growth and profitability while building healthy
communities is more than a good idea. And finally, I hope that you are interested in joining us on this
journey to make values-based banking a growing force for lasting positive change.
Tamara Vrooman
President & Chief Executive Officer
Vancity

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What is the opportunity to redefine wealth?
We take a long term view of what is happening in the economy by looking beyond the financial markets
to the production of goods and services that impact people’s daily lives. This is the real economy and the
context within which we are redefining wealth and building healthy communities.
By deeply understanding the needs of the real economy, we see our members and communities
differently. While traditional economic outlooks focus exclusively on what the market gives, we are asking
a different question. What is the size of the opportunity through which we can redefine wealth and
accelerate impact? Where are the needs that are not being met and what is the opportunity for Vancity to
develop innovative solutions to meet those needs?
Vancity’s view
A natural growing economy is an economy that is self-generating and self-sustaining. It is an economy that
is growing at its potential as its productive capacity expands. In September 2013, the governor of the Bank
of Canada reported that an economy that was generating natural growth would have an inflation rate of
2 per cent and a bank rate of almost 3 per cent; income growth would be above 3 per cent and mortgage
rates likely over five per cent. Since then, the Bank of Canada has adopted Vancity’s view – very slow
growth, for a much longer time.
Population growth and job creation are both forecast to be below 1 per cent marking the slowest growth
phase in BC since the early 2000s. The unemployment rate in BC will drop to 6.3 per cent in 2015 and
average 5.5 per cent in 2016 and 2017. Slow growth conditions dictate tepid labour market performance
through 2015. Tempered growth in both the economy and a slack labour market will keep a lid on upward
wage pressure through 2015.
House prices are more sensitive to job losses than interest rate increases. Given that the forecast period
has stable – though stagnant – employment, our insight is that any house price drop would be from a local
imbalance of too many houses for sale relative to too few eligible buyers. Although house prices have
dropped in Squamish, Whistler, Fraser Valley etc., the offshore market has been buying up properties in
the Metro Vancouver area, which has been given greater density, which then has a ripple effect pushing up
house prices across the region. The fundamentals, nevertheless, point to a drop in house prices.
Sustainable regional growth requires that the benefits of economic growth are shared across all income
scales. Current income inequality is likely to continue limiting a broad based recovery. BC is a small open
economy where 80 per cent of exports are in resources and 80% of employment is in services; as such
the province has been failing to create quality jobs since 2007. One in five workers in BC work for resource
exports and have an above average wage. One in five workers in BC in 2008 earned below $12 per hour,
versus a current living wage of $19.62 per hour.
A healthy community has access to: affordable housing and rental units, early childhood development and
nutrition, access to health care, job creation and poverty reduction, and greenhouse gas reduction. These
speak to Vancity’s guiding principles which are now driving our transformation agenda. International and local
events show that alternative economic models are gaining momentum. At the same time, there is a growing
awareness of the need to limit the pattern of boom and bust cycles in favour of stronger community-based
and sustainable economic activity. All this suggests that Vancity’s vision and our 2014-2016 Three Year Plan are
both relevant and timely responses that are speaking to the needs of the real economy.

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What makes us different?
In our view, the role of banking is to finance positive change for people and society. We are working to
ensure the banking sector is inclusive, transparent and sustainable through our values-based banking
approach.
The core assumption underlying our vision and the Three Year Plan is that Vancity is uniquely positioned
to meet the needs of the real economy and that we can do so, better, stronger and faster than traditional
financial institutions. The question is why. What makes us different?
First and foremost, we have a clear view of the role that financial institutions must play in society. Banking
plays a critical role in preserving and redistributing capital – serving individuals, families, businesses,
governments and civic institutions. It does this by enabling savings and investment, providing protection
from risks and supporting the creation of new jobs and businesses. These functions are critical to enabling
society to operate in a stable, sustainable way.
To be effective, banking cannot operate in isolation of the people it serves but must act in the best
interests of all stakeholders and of society as a whole. This requires looking beyond financial transactions
to see a bigger picture. Banking must be deeply connected to community, to the many systems that are
operating in community, and to how they work together to impact the health of the community.
This is Vancity’s purpose – to help communities thrive and prosper by using financial tools in innovative
ways that make society better for more people (inclusive), for better outcomes (well-being) and for greater
sustainability (environmental outcomes). We don’t leave this work to others and/or see it outside of our
core business. It is our core business. This is the essence of our business model – member-led innovation.
Being a financial cooperative both demands and enables this role and perspective. Our members see that
how we do business sets them up for longer term success by looking at their long-term well-being. This
requires that we do business differently – as we do (or we will).
As a member-owned, community-based financial institution, we do things that other financial institutions
cannot do – or will not do. For example, we are able to extend credit in ways that traditional financial
institutions cannot or will not. We can do this because we understand how needs that are not being met
are being translated on the ground. We see gaps that others don’t see by looking beyond transactions to a
broader and deeper definition of wealth. At the same time, the community trusts us more deeply because
they see supporting their interests as part of our vision.
As a result, we are able to mobilize a network of connections and partnerships to deliver solutions that
meet real needs. This is the “social capital multiplier effect” that allows us to create value in ways that
others cannot. Working this way also means we are able to limit our risks because others are willing to
share in it. And we don’t leave externalities out of the equation; we build them into our model.
It is our connectivity as well as our commitment to continuously engage our members and communities
in redefining wealth that enables us to continually improve what we are doing and stay relevant in the eyes
of our members. Because of this connectivity and the goodwill of people that allow us to do business
this way, we are able to mobilize our leadership capital, not only through the day-to-day business of
helping members make Good Money™, but through our leadership, be it conveyed through our executive,
directors or other leaders. We are able to open doors that others cannot and have the opportunity to
influence the public view, business practices, political will as well as advocate for positive social change in
ways that others cannot.

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What does all this mean? What makes us different are our unique strengths as a financial cooperative. We
exist for the sole benefit of our members. We understand the needs of the real economy – the context
in which our members live and work – and we understand how conventional financial tools need to be
translated in service of them to enhance well-being. We do this by not only leveraging financial capital but by
leveraging our social capital. This gives us opportunities for innovation that are greater than what is possible
by simply taking what the market gives us. We do this in a way that builds trust, confidence and momentum
that is significantly different as well as consistently needed. And by doing this, we are able to demonstrate
that if we do the right thing for our members, the profitability and sustainable growth will come.
This is what makes us different. This is what our members want and believe we need to do – but it is not
how we are doing business at our core – at least not yet. We are on a journey to transform what we do –
to place our whole balance sheet in service of building healthy communities and even though we have not
yet arrived, we remain confident that we are on the right path.

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What outcomes do we expect?
Our insights into what is happening in the real economy are emerging and while we have more work to
do to fully understand the size of the opportunity, it is clear that the real economy is underserved. Rather
than setting goals that will cause us to move into areas that are not aligned with our values (e.g. growth
without impact), we want to respond to the real needs of our members and communities. Thus, our
balance sheet growth cannot outpace the growth of the real economy.
We will hit our targets, grow our membership and reputation as a values-based banking cooperative, and
increase our confidence in the strength of our business model so that more of what we do is in service of
building healthy communities:
• We will be bigger – more members will want to do business with us and we will put more of our
assets in service of creating more impact.
• We will be stronger – our earnings will grow, we will have the capital we need to invest in building
healthy communities, and more of our employees will be engaged in bringing our vision to life.
• We will be better – we will translate insights into impact faster, our network of influence will grow
as more partners join us on our journey of transformation, and we will have the leadership we
need to achieve our transformation agenda.
Our targets for the 2014-2016 plan are summarized below.
Organizational Targets for the Three Year Plan
Outcome Definition 2013
2014
(unaudited)
2015
(unaudited)
2016
(unaudited)
Impact
Enhanced Member
Well-Being(Q)
51.2%
1 in 2
Members
(>50%)
>50%
New
Composite
Index in place
New
Composite
Index1
% Community Impact
Loans(Q)
50.7% 41%2
45%
New
Composite
Index in place
New
Composite
Index
Confidence
New Members to
Vancity(Q)
24,631 27,000 29,000 31,000
Return on Members’
Equity(Q) 6.65% 5% 5% 5%
Integrity Diversity (labour rate)(A)
3.1% 4.5% > 5.8% > 5.8%
1
We will be introducing new composite indices for measuring impact in 2015.
2
Based on Internal Audit recommendation, adjustments were made to this calculation so that all impact loans are measured when the first funding
happens for the full approved amount.
Q = reported quarterly A = reported annually
Planning targets

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Impact
Measuring impact is pioneering work. A growing number of organizations are talking about how to
quantify and track impact as business models are evolving from maximizing financial returns to delivering
blended value (e.g. people, profit, and planet) but few are actually doing it. As far as we know, Vancity is
the only financial institution in Canada that is actively measuring impact as a result of our business model.
Impact measurement is key to our ability to pursue scale and demonstrate effectiveness. We need to be
able to show that our efforts to enhance member well-being and build healthy communities are creating
positive change in members’ lives.
Enhanced member well-being
In February 2012, we introduced post-transaction interviews with members to assess “enhanced member
well-being”. This measure is intended to capture the degree to which we help our members build resilience
and engage them in activities that create impact. The benchmark for this measure is based on members’
rating Vancity as 9 or 10 out of 10 on a post-transaction survey. As of September of 2013, more than 50%
of our members or approximately one out of every two members strongly agreed that their relationship
with Vancity improved their well-being. This outcome underscores the fact that the work we are doing to
create impact has been recognized by our members. We expect this to continue in 2014.
Vancity’s financial literacy seminars are evolving to meet the growing demand. This is a foundational part
of our impact work. Financial literacy is essential to building the prosperity of our members by increasing
their knowledge, skills and confidence to make financial decisions that will help them meet their personal
goals and enhance their quality of life.
The development of financial plans in Sustainable Wealth Management and the Good Money Plan
initiative within Community Member Services are also creating impact opportunities to meet members
where they are and actively collaborate with them to find solutions that enhance their long term well-
being. In addition, we continue to find new opportunities to use our financial tools in innovative ways,
such as our enhanced Visa statements, which have made our enviro™ Visa* more transparent and easier for
cardholders to understand. Our credit card financial literacy video educates members about the benefits
of paying off balances sooner and our reward point redemption program encourages members to use
their points to achieve financial goals, such as increasing their savings versus take on more debt. We are
also mobilizing our leadership experience in socially responsible investing to provide expertise in the use
of shareholder resolutions as an opportunity to advocate for investments that support building healthy
communities.
All of the above represent the commitment and creativity of our people to continually look for ways
to share our Good Money story and create impact based on the insights we are gaining as we focus on
delivering a differentiated member experience – one that not only meets the basic banking needs of our
members quickly and efficiently, but that is accessible and inclusive, community-based, transparent, trust-
building and credible, and empowering.
% Community impact loans
Last year, we introduced “percentage community impact loans” as a measure of how much of our capital
is being allocated to build healthy communities. In 2013, 51 per cent of our non-retail lending was put in
service of impact in a variety of ways including:

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• supporting aboriginal communities,
• affordable housing,
• building our local green economy,
• promoting a viable and sustainable local food system,
• social purpose real estate,
• the development of social enterprises and social ventures from early planning, to start-up and
launch, right through to sustainability and expansion, and
• supporting non-profit organizations and cooperatives.
This year our target for the per cent of community impact loans that make up our total business lending
portfolio is 41 per cent and will increase to 45 per cent in 2015.
Community Business: We believe there is an opportunity for impact lending in small and medium-sized
businesses. With Canadian household debt now sitting at 163 per cent of disposable income, we know
that consumer lending is saturated and hitting a tipping point. Small business is an important part of our
economy in creating jobs in impact segments and increasing wages to support consumers to reduce their
debt. In addition, research published by Central 1 regarding the Canadian Business Owners Strategy shows
that business owners have a preference for credit unions over traditional banks.
We have work to do in 2014 to set up the structure to support the continuing growth of this market
but we believe this is a key market focus for us because it is an imperative engine for community well-
being. As we complete foundational work in Community Business, we will be moving to a stronger focus
on impact and are targeting an increase in both year-over-year impact lending as well as an increased
percentage of impact loans of the total loans.
Commercial Real Estate: We have gained expertise and credibility in the market over the past two years
on “green” commercial or residential buildings that exceed current environmental and zoning standards
(i.e. LEED’s or Build Green). We have demonstrated expertise and become trusted advisors in this sector by
financing a significant number of these projects.
We are taking the next step to drive impact further by influencing our existing members and incenting
them to upgrade older commercial buildings in terms of energy efficiency. Existing commercial buildings
are the largest source of greenhouse gas emissions of more than 50 per cent in the Vancouver area, and we
want to assist our members in decreasing emissions by offering a financing plan that works for them.
The affordable housing market is very limited in both the Greater Vancouver and Victoria areas due to a
combination of the high cost of land and construction, government cutbacks and lack of funding for these
programs. However, we are addressing the need by building staff expertise in this market, working with
Community Investment to develop creative solutions and focusing resources on actively pursuing impact
opportunities.
Microfinance: Our microfinancing will continue to be responsive to the needs of the real economy,
actively supporting small business and start-ups. In particular, we see opportunities to support the
financial inclusion of new Canadians by providing access to microfinance that enables many to become
economically productive.

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Confidence
Redefining wealth is a cooperative effort. It is linked to growth in the real economy which means that our
financial outcomes are consistent with the needs of the real economy. Our members, stakeholders and
community partners help us understand how we can achieve the greatest impact in service of building
healthy communities. They do this not only because they have developed relationships with us based
on trust. They actively participate with us because we have demonstrated that our business model is
robust – that it is possible to achieve sustainable growth and profitability without making trade-offs.
The result is a healthy capital base and a growing base of support for redefining wealth.
We measure confidence in two ways: membership growth and return on member equity (ROME). If our
members, community partners and stakeholders have confidence in what we are doing, they will want to
do more business with us and are more likely to recommend us to others which, creates new opportunities
to invest our capital in building healthy communities and in turn, more opportunities to achieve impact.
New members to Vancity
In the 2014-2016 plan, we are recommending a new confidence indicator – the number of new members
to Vancity – and at the same time, we will continue to track other management indicators of our
membership growth. Our brand is resonating and as more people learn about Good Money and
experience what makes Vancity different, we expect to see the number of new members continue to
increase. That said, we are in a mature market. While we anticipate continuing momentum, we do not
expect our rate of growth to be as dramatic as previous years given our aging membership base. The real
prize will be in attracting younger members who can renew our membership base – those who are values-
aligned and represent the future leaders of impact businesses.
Our data show that we are now starting to attract a younger demographic who are bringing more assets
with them. At the same time, our member activation program is increasing activity among inactive members.
Through this program, Member Services Centre (MSC) outbound phone team agents are connecting with
members and offering relevant and timely financial advice and services that are making a difference.
In 2014, we will continue building on the strength of our brand and anticipate seeing 27,000 new members
join Vancity by focusing on bringing scale to our successes in connecting directly with members and
leaning into community to respond to the unique needs of our younger members.
Return on members’ equity
There is a significant opportunity for Vancity to be a counterbalance to the current trend of increasing
debt load and poverty. Our industry has proven again in 2013 as it did in 2012 that financial institutions
will continue to make borrowing a highly available commodity in the coming year placing the long term
financial health of consumers and communities at risk. While economists are predicting a housing sales
market growth rate of four to seven per cent in the next year and a continuous acceleration in property
values of one to three per cent with a markedly slower recovery in the economy in 2015-2016, we believe
that a more prudent way of managing our balance sheet is to expect a conservative growth rate that is
more aligned to the needs of the real economy.
We expect to redirect our capital towards more purposeful investments that make a difference for small
businesses. We will moderate our growth expectations not only from our retail portfolio but also from the
more capital intensive business portfolios, which will help us maintain a healthy capital base (13 per cent
capital adequacy ratio) and ensure that our concentration in non-retail lending portfolios is prudent.

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We are assuming a loan growth rate at four per cent and a four per cent to five per cent growth rate
for member deposits. The one exception to slower, purposeful growth will come from our wealth
management business. As our services have not yet been fully leveraged by our members, we expect
to see a growth rate that allows us faster penetration among our membership in the next three years
including seven per cent growth in assets under administration next year.
Based on the above scenario, in 2014 ROME will be held flat at five per cent, aligned to asset growth to
allow us to grow capital at a healthy rate and build discipline based on insights needed to support long term
sustainable growth. By way of comparison, excluding one-time gains, 2013 ROME would be 5.45 per cent.
To calculate ROME, we factor in the 30 per cent of annual net earnings we share with members and
communities through our Shared Success program. If we didn’t, our ROME would be higher.
Integrity
Last year we acknowledged that finding the right indicator was difficult and that improving the labour
rate for persons with disabilities would be a proxy for recognizing the importance of diversity in fully
understanding, connecting and responding to the needs of our members and communities. We focused
on eliminating barriers for two under-represented groups: persons with disabilities and people of
Aboriginal descent. While we made significant progress, we also gained a deeper understanding of the role
of diversity in bringing our vision to life.
Diversity is about much more than representation. It is a system of beliefs and behaviours that
demonstrate that a more diverse workforce is better equipped to capture and translate insights into
actions that drive member and community well-being. Diversity brings a depth of understanding,
engagement and innovation to our work that cannot be found any other way.
In 2014, we expect to continue to evolve our diversity work so that it is more than a set of activities, but a
core part of our transformation agenda. We will exceed the labour rate not because of our programs, but
because our values and beliefs about diversity are deeply embedded in who we are and how we do our
work. Our diversity strategy will be embedded in our thinking whether related to recruitment, marketing,
governance, our differentiated member experience or the replacement of our core banking system.
When we reach the point that our workforce reflects the communities we serve, our connectivity with
members will grow even deeper, allowing us to gain insights and develop solutions that enhance member
well-being and build healthy communities.
Summary
The outcomes included in the 2014-2016 Three Year Plan are based on what we have learned from our
members and communities and represent a realistic multi-year view. There are real needs and we have an
opportunity to apply our financial tools in innovative ways to meet them. Our path to profitability will
continue to come from investing in sustainable solutions that enhance the well-being of our members.
This requires that our way forward is both informed and thoughtful, which is what is reflected in the goals
we have set out.

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What will we do to achieve these outcomes?
We have a strong plan that continues to evolve as we learn more about what is required to innovate
for impact. We have started to tell a more complete story about our members in the context of their
communities but we need to be more intentional about what we are activating outside the organization
to accelerate impact. At the same time, we cannot respond to the needs and opportunities around us
without being able to activate member-led innovation inside the organization. Our transformation agenda
must become our core work.
How will we get there?
The 2014-2016 Three Year Plan has two overarching goals:
• Accelerate impact already underway
• Increase our capacity to innovate for impact (and get ready to do more)
The first looks outward at what we need to continue doing to build healthy communities. The second
looks inward at how we need to change the way we work so that we can fully activate our business model
in service of achieving our vision. Together, these goals describe how we will achieve our targets, grow our
membership and build the confidence of our members, community partners and stakeholders that values-
based banking is a scalable alternative to traditional banking.
• Accelerate impact already underway
This plan targets five key strategic priorities through which we will accelerate impact. They focus on
building relationships and engaging members, communities, partners and stakeholders in order to deepen
our understanding of the real economy and uncover hidden opportunities to achieve impact at scale.
Deliver a differentiated member experience
In February this year, we defined our differentiated member experience in terms of six key dimensions:
accessible and inclusive, community-based, transparent about values and commitments, trust-building
and credible, empowering and convenient. Delivering a differentiated member experience is how we bring
our Good Money promise to life for our members and inspire their trust and confidence. The following
activities highlight key opportunities through which we will continue building our differentiation and
meeting the long term needs of our members.
Becoming trusted advisors: We will take what we have learned through our experiences in the prototype
branches as well as the vision catalysts we introduced in 2011 to create a member experience that truly
operationalizes our differentiation.
Accelerate impact
already underway
• Deliver a differentiated member experience
• Meet the needs of underserved in our community
• Extend our reach into community
• Activate community investment
• Leverage our networks of influence

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Using the Good Money Plan: We will also be extending the use of the Good Money Plan – a unique
financial advice-giving tool that delivers on our Good Money promise and helps our staff fulfill their role
as “trusted advisors” to our members.
Connecting more deeply: We will also be fully operationalizing our member assignment strategy this year
which will allow us to respond to the more complex financial needs of our members quickly and effectively.
Engaging in proactive conversations: In the Member Services Centre we are targeting 26,000 proactive
outbound conversations over the year across our member base (assigned and unassigned members).
Offering accessible investment solutions: We have addressed many of the inefficiencies that were holding
back our Sustainable Wealth Management team and now have the capacity to grow further.
Building financial literacy: At the same time, we will continue to deliver our financial literacy programs to
build the knowledge and confidence of our members to make informed decisions about their money. Our
financial literacy programs are rooted in who we are as a cooperative (principle five, member education),
contributing to our work on financial inclusion as well as offering our members the self-help tools to build
their self-reliance.
Leveraging our prototypes: We will also be looking for opportunities to replicate two key elements of our
prototype branches across our network – the approach to community outreach and the creation of teams
of retail, business and sustainable wealth management managers to provide holistic solutions to members.
Connecting with small and medium-sized business: In 2014 we will work towards validating what we
believe these businesses need, building the capability in our employees to serve that need and providing
the tools to make them successful.
Increasing our presence among first time home buyers: Our insights reveal that our own members have
a significant interest in home ownership, but these members are challenged by personal and market
circumstances. As a member-owned cooperative, extending financial inclusion for home ownership is an
important priority.
Keeping our commitment to Dockside Green: Dockside Green is a mixed-use residential and commercial
real estate development in Victoria through which Vancity is creating a blueprint for healthy buildings and
healthy communities. Now, as a Master Developer, Vancity will have the ability to sell land parcels to third
party builders.
Meet the needs of underserved in our community
In 2013, we observed that there was a growing need to increase access to those in our community who
are underserved by traditional banking and other types of financial institutions. To further our principle of
financial inclusion, we will explore ways of supporting those who have unmet banking needs. Our research
in 2013 was robust and highlighted the need to dig deeper to determine the best approach to meet the
needs of our members and our community.
As a starting point for this work, we have identified several concepts that will increase access to funds and
enable members to build their credit histories in a way that is inclusive and sustainable. We will pilot this
with our existing members with the goal of gaining insights. This is foundational work that will help set the
stage for more development in the mobile space.

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Extend our reach into community
The 2014-2016 Three Year Plan will be more intentional around how we engage members and communities.
Our community advisory committees in the Fraser Valley, Victoria and Surrey will be fully activated
this year and as these groups evolve, they will provide an invaluable resource from which to draw upon.
For example, we want to show them how we measure impact, share what we are trying to do and then
get their feedback and input. Our youth community advisory committee will have an expanded online
component to increase access and build greater connectivity.
Activate community investment
In 2014, our Community Investment team will work with Community Member Services to develop a more
fulsome retail focused community investment plan. Oriented around our guiding principles for building
healthy communities and the actual demographic and economic conditions of the branch communities
and developed with senior CMS staff, the plan will identify impact areas which will be the focus of
an integrated approach to impact business development. This work will include the creation of four
prototype plans to direct and support the understanding and delivery of impact in four branch clusters.
Leverage our networks of influence
Bologna Cooperative Studies Program and the Cooperative Sector: As a result of the Bologna program,
we now have a critical mass of employees who understand and are excited about using cooperative
principles to support building a more resilient economy. In 2014 and beyond, we will be looking for ways
to leverage this resource by engaging these employees in a variety of initiatives such as our seniors’
cooperative work and our work to support consumer coops.
The Credit Union System: Vancity must continue to have a strong voice in Central 1 discussions regarding
the role of the centrals and the provision of services to member credit unions including the work of the
Information Technology Committee which will have a significant impact on the credit union system. In
addition, the emergence of federal cooperative charters may redefine credit union economies of scale.
This requires that we remain active in researching and monitoring the evolution of the federal credit union
legislation and its impacts and implications for our members, for Vancity as well as the health of the larger
credit union system.
Redefining wealth is not something that we can do alone. We need to be engaged not only with our
members and communities but our partners and stakeholders in the credit union system, the sector
and industry at large. This is because our vision requires more than the transformation of individuals – it
requires the transformation of business as a whole.
• Build our capacity to innovate for impact and get ready to do more
Generating insights and uncovering hidden markets is necessary but not sufficient to redefine wealth. We
need to translate our insights into action by making sure we have the people and the infrastructure we
need to achieve impact at scale.

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The 2014-2016 plan includes five strategic priorities through we will increase our capacity and make
transformation our core work.
Implement a people plan to enable our transformation
Our transformation begins and ends with our people. We innovate for impact if we leverage the knowledge,
skills and passion of our people.
In 2013, we developed a talent framework that summarized the key assumptions that would inform our
approach to developing talent:
• Build a strong foundation for talent – we need to develop the talent required for the
organization to deliver on our promise to members.
• Differentiate through leadership – we need to develop the leadership talent required to
transform the way business is done both inside the organization as well as in industry and in
the communities we serve.
The first phase of this work will focus on gathering insights from our people on what they experience.
Rather than relying on the employee engagement survey to build our understanding, we need to connect
with our people on the ground, leverage our leaders to see and hear what is happening first hand, and look
for innovative ways to understand what is getting in the way of releasing the creativity and commitment
of our people. We have an opportunity to listen more deeply and test our assumptions about how
we need to work differently. By doing so, we will uncover hidden opportunities and strengths in the
organization that we can better leverage in service of our vision.
The second phase of the people plan will focus on eliminating key barriers. As a result of this work, we
expect to create more opportunities for our employees to participate in bringing our vision to life. We
also expect to develop the transformational leaders we need to build a culture based on continuous
learning, collaborative teamwork and cooperative principles and practices – one that is comfortable with
the unknown, courageous, smart about risk, diverse and resilient.
In 2014, we will continue with our immersion training for all employees as it is building greater awareness
and interest among employees to participate in our transformation agenda. Fifty per cent of our employees
will complete the program by the end of the year. We will also begin work on aligning scorecards and
compensation by digging deeper into how they impact employee engagement. The sooner we can achieve
this alignment, the faster we will ignite the commitment of our people.
Align our financial plan with strategy
We see bankable opportunities differently than other financial institutions and therefore we have different
opportunities; however we are not yet able to fully measure the value of the impact we are creating. In
2014, we will be looking for new ways to measure and incorporate impact into our decision making and
reporting so that we can see the results of our vision.
Build our capacity
to innovate for
impact and get
ready to do more
• Implement a people plan to enable our transformation
• Align our financial plan with strategy
• Define our risk
• Accelerate the pace of innovation
• Renew our core banking system

16. 16 of 23
Define our risk
In 2013, we put in place a Risk Management Committee (RMC) with a mandate to provide a comprehensive
enterprise view of Vancity’s risk capacity, appetite, tolerance and limits. In 2014, we will continue this
work by further defining the amount of risk we are willing to take to support our strategy for accelerating
impact. On the operational side, we will be reviewing and refining our credit practices, processes
and policies to create more room for thoughtful impact consistent with our differentiated member
experience.
Accelerate the pace of innovation
To get closer to our vision, we need to accelerate the pace of change. In 2014, we will be activating a new
decision making structure that will allow us to move things through the organization faster. In addition, we
will be implementing a resource reallocation initiative that will give us greater flexibility so we can redeploy
resources – primarily our people – to respond quickly to opportunities to innovate. We will also continue
our work to build our analytic systems and tools to consolidate what we are learning about the real
economy and the opportunities for impact.
Renew our core banking system
An implementation plan for renewing our core banking system will be going to the Board for consideration
in early 2014.
Summary
The link between our plan and the work we do everyday is getting stronger. We are already seeing the
translation of our strategy in a meaningful way into more specifics that are allowing us to execute better
with better clarity. The strategies outlined here are not discrete projects that will be assigned to individual
leaders to execute. They represent a fully integrated transformation agenda that will drive the work of the
whole organization.
We know that we cannot accelerate impact in silos. In the same way, we understand that we cannot
redefine wealth alone. We need to work with our members, communities, partners and stakeholders to
build healthy communities. As we learned from this year’s Bologna cohort, “if you want to go fast, go
alone. If you want to go far, go together.” The strategies outlined here reflect the breadth and depth of
relationships that we must continue to cultivate in order to accelerate impact. We are learning from our
partners and they from us and together, we will create the critical mass of support we need to transform
the banking system within which we operate.

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How will we allocate resources to achieve these outcomes?
Our sustainable growth model provides insight into the capital and asset growth requirements needed
to execute the 2014-2016 Three Year Plan. The rate at which we accumulate capital must be sufficient
to support achieving impact at scale in a prudent manner. At the same time, in order to enable the
flexibility and responsiveness that our business model requires, we need to make the shift from “resource
ownership” to resource sharing and leverage.
Align our resources with our strategies
We have more work to do to free up existing resources and mobilize the organization to respond
quickly to emerging opportunities. Our people plan will play an important role in helping us build the
collaboration and reciprocity needed to do this. Equally important to making this change is the resource
reallocation initiative that will begin in 2014 as well as the innovation-strategy-risk decision making
structure – both of which are intended to breakdown divisional silos and build a more integrated approach
to doing business. Rather than a management philosophy based on whom ever “owns” the resource
“controls” the resource, we will use these strategies to place greater emphasis on the flexibility to deploy
our resources to meet members’ needs regardless of where the resources reside.
Leverage existing talent
A core assumption of our financial plan is that we will optimize the allocation of our people resources to
support the achievement of our transformation agenda. We have the talent we need to get work done.
Therefore, we will limit the addition of new FTEs and focus on fully leveraging the knowledge and skills of
our staff through redeployment and training while controlling expenses at the same time.
Funding
Unlike traditional financial institutions where the proportion of the total balance sheet devoted to client
lending and funded by client deposits is much less, our source of capital is the community because we
lend to meet the needs of the real economy. Not only does this ensure the member engagement and
connectivity we need to build healthy communities, it gives us the autonomy we need to fund our impact
ambitions. In turn, we are less susceptible to the systemic risks that traditional banks face because they are
more dependent on more volatile funding sources.
In 2014-2016 we expect to see more deliberate lending growth based on the real needs of the economy.
This translates into reduced growth expectations from both retail and business portfolios which will allow
us to preserve capital for a later period when the stagnant economic period is over and reinvestment in
our communities can be accelerated. The lending forecast in the plan has been set at $582MM.
2013 has been a successful year in terms of member deposit growth. We expect to maintain the same
level of growth over the next three years with a target set at $505MM for 2014. The return we expect to
generate on our members’ equity ensures that we will earn enough profit to support our growth without
over-leveraging ourselves in the process. We will also maintain at least 13 per cent liquidity as well as a 13
per cent capital adequacy ratio.

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2014 – 2016 Fiscal Framework Targets
$ million
2013
2014
Plan
(unaudited)
2015
Plan
(unaudited)
2016
Plan
(unaudited)
Operating Income $ 408 $ 401 $ 417 $ 442
Operating Expenses $ 315 $ 322 $ 329 $ 349
Net Earnings $ 61 $ 48 $ 50 $ 54
Members Loan Growth $ 689 $ 582 $ 650 $ 650
Members Deposit Growth $ 691 $ 505 $ 520 $ 520
CAR 13.33% 13.00% 13.00% 13.00%
Liquidity
Asset to Capital Multiple
13.03% 13.18% 13.21% 13.38%
18.70 18.31 18.15 18.02
ROME 6.65% 5.00% 5.00% 5.00%
We will continue to invest in our daily operations in order to ensure long term sustainability. This includes
investments in maintaining our premises, IT infrastructure and training.
Consolidated Statement of Operations
$ million
2013
2014
Plan
(unaudited)
2015
Plan
(unaudited)
2016
Plan
(unaudited)
Net Interest Income $ 341 $ 350 $ 367 $ 383
Loan Impairment Expense 7 19 20 20
Fees and Other Income 74 70 70 79
Total Operating Income 408 401 417 442
Operating Expenses 315 322 329 349
Net Earnings from Operations 93 79 88 94
Distribution to Members 10 8 9 9
Distribution to Community 10 8 8 9
Net Earnings before tax 73 63 71 76
Income tax 12 15 21 22
Net Earnings 61 48 50 54
Summary
Our financial plan focuses on preserving our capital in a weaker economic climate and leaning further into
community to support longer term sustainable growth. We do not want our balance sheet to outpace the
real economy. If we apply our resources with the right discipline – based on insights – we are confident the
market will come.
Planning targets
Planning targets

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How will we measure our progress?
A strong plan needs a clear roadmap and key markers to measure progress. These management indicators
show how we will achieve the impact, confidence and integrity we need to redefine wealth.
2014 Target
(unaudited)
2015 Target
(unaudited)
2016 Target
(unaudited)
Impact
% Community Impact Loans
% Community Business Impact Loans(Q)
30% 36% 45%
% Community Real Estate(Q)
55% 58% 62%
% Microfinance(Q)
100% 100% 100%
% of Increase of Impact Treasury Investments (Q)
20% 20% 20%
Member Well-Being
# People Assisted with Financial Education (Q)
(financial dimension)
10,000 11,000 12,000
# Community-Minded Organizations with Increased
Capacity(Q)
(economic dimension)
450 475 500
# of People Assisted in Poverty Reduction, Credit Access and
Repair (Q)
(social dimension)
6,000 6,900 7,500
Estimated Energy Reductions or Green Energy Productions
Funded (Q)
(environmental dimension)
900 tonnes 950 tonnes 1000 tonnes
Confidence
New Members to Vancity
# Distinct Services per Member – the average number of
products each member holds with Vancity (Q) 3.20 3.24 3.28
Asset Base per Member – total funds managed per
member(Q) $60,700 $63,000 $65,000
Return on Members’ Equity (ROME)
Operating Efficiency (Q)
79% 77% 75%
New Growth Funding Ratio – calculated as the % of member
deposit growth over member loan growth (Q) 80% 80% 80%
Integrity
Greenhouse Gas (GHG) Emissions Usage (A)
5100 tonnes 5000 tonnes 4900 tonnes
# Living Wage Campaign Information Sessions hosted for
Employers (A) 6 9 12
Ethical Principles for Business Partnerships (Q)
Integrated into Quarterly Board Reports
Q = reported quarterly A = reported annually
Planning targets
Planning targets
Planning targets
Planning targets
Planning targets

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What are the risks we need to understand?
No strategic plan is complete without a balanced view of the risks attached to the plan.
Rather than being constrained by a risk adverse culture, we see risk as an opportunity to create and ignite
opportunities to achieve impact at scale. Based on this view, there is a much greater awareness of the
need to build our understanding of risk so that we are able to make the right decisions from an “eyes wide
open” perspective.
What is our tolerance for risk?
Our overall approach to managing risk is to have a low risk appetite in some areas so that we can take on
more risk in other areas. We have a low risk appetite for legal and regulatory, business, talent, technology
and liquidity risks, but we are willing to be bolder in areas where we can differentiate ourselves in the
market and in the communities we service. This includes reputation, strategic, market and credit risk.
Surrounding all these is systemic risk, which includes the external forces within which we operate and have
a low appetite for risk.
Systemic risk
Our tolerance for systemic risk is low. There are profound external forces at play including internal trends
of debt deleveraging and non-interest rate credit rationing that are impacting the local real estate market.
While Vancity cannot control these systemic risks, we will continue to closely monitor them by staying
connected to the real economy and basing our performance on the needs of the real economy not
the interest rate economy. We will adopt a more proactive approach to informing regulators and other
stakeholders within the system about the unique strengths and sustainability of our values-based banking
model. In addition, we will play an increasing proactive leadership role through our Chief Economist and a
stronger advocacy voice so that the risks to communities are understood and policy responses are aligned.
Legal and regulatory risk
Our tolerance for legal and regulatory risk is low. The current risk environment is becoming more complex
as evolving information and capital requirements are demanding more of financial institutions. As a
result, we are doing more stress-testing against regulatory regimes, testing against the highest regulatory
requirements including BASEL III and OSFI (Office of the Superintendent of Financial Institutions).
Strategic risk
Our tolerance for strategic risk in 2014 is medium but we aspire to move this to a high risk tolerance in 2015
as we build our capacity to be bold and innovate. By high risk, we are referring to the conventional banking
standard not ours although we understand that others might see it this way.
As a financial cooperative, our source of capital is the community. The more we connect with the
community in order to pursue growth with impact, the deeper our insights into member and community
well-being and in turn, the more we understand the risk profile of the source of our capital. The greater
our understanding of the risk profile the greater our ability to manage our assets. Simply put, because
the structure of our balance sheet is connected to the real economy, we are able to achieve more stable
returns and lower the real risk.

21. 21 of 23
Business risk
Our tolerance for business risk is low. In order to be bold and innovative, we must deliver on our Good
Money promise to members. A key strategy in our plan focuses on delivering a differentiated member
experience by integrating our lines of business and leveraging synergies so that we can make sure we bring
the right people together to meet the diverse needs of our members. In addition, we will be activating a
new decision making structure that will allow us to move things through the organization faster as well as
integrate risk earlier into our innovation activities so we can benefit from the insights we are gaining.
Reputational risk
Our tolerance for reputational risk is medium. Because of how we see our reputation, we see risk
differently. We will make decisions in service of who we are and what we represent. For example, in
the case of Dockside, a bank would have sold off this investment but we made a commitment to this
community and to our values. We made the decision to stand by the community even though it creates
some risk.
We see reputation as an asset that we need to use effectively while not spending it unwisely. Our
partnership with the Global Alliance for Banking on Values (GABV) gives us confidence that where others
see risk, if we take action that is consistent with what our members want, we will never take a risk. We
will leverage our networks of influence and look to strengthen our leadership voice through our advocacy
work to influence public policy and engage with stakeholders around the importance of values-based
banking and the role of finance as a key driver of positive social change.
Talent risk
Our tolerance for talent risk is low. Our people are key to activating the innovation that will differentiate
Vancity and enable us to achieve our goals and be competitive in the market. We need to develop talent
quickly at all levels of the organization and build our bench strength so we have the people we need to
bring our vision to life in the short-term and ensure Vancity is well-positioned to continue building healthy
communities for the long term. Talent loss could lead to a significant capacity and skills gap, a loss of
change momentum, and/or a disruption in succession planning.
For this reason, our people plan is a key strategic priority. We will look to this work to identify
and eliminate engagement barriers, allowing employees more opportunities to participate in our
transformation agenda. We will also leverage the work we have already done through Better Decisions
Better Results to define roles broadly so that it is easier to move talent across the organization. Our
immersion program will continue in 2014 giving employees a much deeper connection to our vision. At the
same time, we will be expanding our Talking Talent program below the director level in order to build a
robust internal talent pool of future leaders.
Technology risk
Our tolerance for technology risk is low. We need to build our capacity to innovate at scale and are making
investments in technology that will minimize these risks such as the Banking Applications Renewal (BAR)
program and our Loans Origination System (LOS) project. As a member of the Direct Banking Strategy
Committee of Central 1 we will continue to provide our insights and expertise for the evolution of our
online banking platform through which we deliver our differentiated member experience. We will also
invest time in understanding how risk works in the mobile space.

22. 22 of 23
Market risk
Our tolerance for market risk is medium. Average household debt is over-levered. If interest rates continue
to be low, our members may face increasing pressure to take on more debt. This scenario highlights the
need for us to do more for our members at a time when the forces of the external marketplace are
working against us.
In the current low growth environment, we are targeting a growth rate that is aligned to our values and
does not stretch our capital unnecessarily. At the same time, we are willing to take some interest rate
risk in order to mitigate the pressures on members to take on increasing debt load in a low interest rate
environment.
Credit risk
Our tolerance for credit risk is medium. We are going into the 2014-2016 Three Year Plan with sustainable
financial solutions as a principle. This means we will not provide solutions or advice to members that put
them in a position of taking on debt they cannot afford. While we may say ‘no’ to a credit application
because the level of credit risk is too high, we are more likely to say ‘not right now’ and provide alternative
solutions to help them achieve their goals. While we will stay with our discipline in credit, we can be more
inclusive at the same time. This means while we will be in the conservative end of competitive parity for
conventional loans, we will have more open underwriting for impact loans and we can be more inclusive
without taking on more credit risk. This translates into having good quality actual risk in credit relative to
an appetite/capacity for more impact lending.
Liquidity risk
Our tolerance for liquidity risk is low. This is because, as a trusted advisor, we will always want liquidity to
meet our members’ needs all the time. We maintain a $1 billion buffer comprising excess liquidity from
investments, diversified borrowings and incremental securitization so that we can accommodate liquidity
demands during periods of excessive loan growth or weak deposit volumes. We ensure liquidity is prudent
within our Three Year Plan by a reserve of 12 per cent or higher of our total member deposits and we will
strive to fund the majority of our member loans with member deposits.
Summary
While we have more work to do to quantify our total risk appetite and build the tools we need to
understand how we are using our risk capacity, this year’s Three Year Plan represents a significant step
forward in the evolution of our thinking around risk appetite and risk tolerance. As a result, we are
confident in the robustness of the strategies outlined in the plan and the opportunities we have to
accelerate impact.

23. 23 of 23
Our 2014-2016 Three Year Plan contains a number of forward-looking statements and projections. These include, but are not limited to, our financial performance
objectives, vision and strategic goals. The 2014 Budget has been approved by the Board and the 2015-16 information represent planning targets. The information
we’ve provided here is intended to help the reader understand our vision, objectives and goals. Forward-looking statements by their nature require us to make
assumptions and are subject to change.
Make Good Money (TM), Good Money (TM) and enviro (TM) are trademarks of Vancouver City Savings Credit Union.
*Visa Int./Vancity, Licensed User.
Closing thoughts
The greatest gift this work will give us is the opportunity to meet the needs of the real economy as well as
the understanding of what it takes to build communities that are resilient, rich, whole and healthy in truly
transformative ways. Perhaps the most powerful example of this in 2013 was our work with Reconciliation
Canada. Our experience provided a tangible demonstration of what our vision and business model
describe – that when we do the right thing, the profitability and sustainable growth will come. When we
reach into community, community reaches out to us. In turn, this gives us a unique opportunity to find
innovative ways to enhance our members’ well-being as well as that of the communities in which they live
and work.
We have prepared a plan that invests heavily in our transformation, in gaining the insights needed to drive
our work and in growing our capital base in order to do more purposeful lending. We have defined the
levers of change that we need to activate to achieve our goals. We have tested the robustness of our
strategies and we have the talent as well as the membership and community engagement we need to
accelerate impact.
We are ready for the next chapter of the journey.