Island Savings Credit Union (formerly Duncan and District Credit Union)

Date of Incorporation: March 8, 1951
Membership: 35,000+
Area Served: Branches in Duncan, Victoria, Cobble Hill, Saltspring Island, Shawnigan Lake, with a new one opening in Cedar
Activity: Financial services
Assets:  over $500 million

Setting up the Credit Union

Sixteen members attended the inaugural meeting of the Duncan and District Credit union in March 1951. The inspector of credit unions for BC came to the meeting to discuss the different committees needed to maintain the operations of the credit union, as well as the growth of the credit union movement since the First World War.

The credit union started out with $36 in assets, and maintained its office in the basement of its first employee's house. By December 1952 the membership reached 209 with assets of $34,810.97; by 1953 these numbers increased to 450 members and $118,326.27 in assets. In 1955 the credit union began to offer cheque-writing privileges for its members. In 1963 its assets passed the 1 million dollar mark. In 1970 the credit union took over the existing Crofton credit union (which closed in 1979), and the Cobble Hill credit union in 1971, which was eventually merged with the small office that was opened in Mill Bay. In 1975 an office was opened on Saltspring Island. The name was changed to Island Savings Credit Union (ISCU) in 1982 to reflect its presence in the many communities. In 1984 the Woodworker's Credit Union in Victoria merged with Island Savings.

The credit union continues to expand. It boasts three new branches, and the Duncan office built an additional building for insurance services and administration offices in 1992. The credit union concentrates its membership drives in areas with new branches. It also aims to increase business by trying to raise the awareness of current members about different products and services, such as insurance, ethical mutual funds, and direct payment services.

Goals and Values

The mission statement of the credit union is to develop long-term, mutually beneficial relationships with its members. The vision and values reiterate the credit union's commitment to acting the in the best interests of the membership, enhancing the community, ensuring the quality and happiness of employees, and to operate in a co-operative and ethical manner.

Organisational Structure

There is a single 9-member board for the 5 branches of the credit union, which is elected at large; every three years three of the positions are up for election. The board is fairly stable and members tend to stay on it for a long period, some as many as twelve years. The board is elected in an in-branch voting procedure that lasts for one week. The results are announced at the AGM. The highlights of the year and the annual reports are also discussed at the AGM.

Membership input comes through the front staff and through letters written to the administration. For example, members recently expressed the desire for Internet banking, which the credit union introduced.

The credit union employs approximately 300 people altogether in the 5 branches. Training is an important element of the staff development of the credit union, and in general the staff are expected to do some training. The staff are recognised for their education at an annual events and the credit union pays for the tuition costs of their staff. The training ranges from general courses about the credit union system to specific financial services courses. Employees are proud to work at the credit union; many have been working there for over ten years.

The annual general report is used as a business development tool as well as a financial report. The ISCU also has a quarterly newsletter, which offers product information and carries out membership surveys.

Commitment to the Community

The credit union is more community-minded and flexible than regular banks, and sees itself as an important part of the community. Four years ago, the board made the decision to concentrate their sponsorship on the arts so their resources would not be too thinly spread and their impact could be felt. The credit union has sponsored cultural endeavours such the Duncan fringe festival, the Pacific Opera, the Saltspring centre for the arts, the amphitheatre in Ladysmith, other local drama groups, and a series of classical music concerts. They also sponsor the local hockey team, and are involved in the Choices programme, where they speak to students about options available to them if they stay in school. The credit union takes on co-op students from the university, and participates in high school job-shadowing programmes.

Looking to the Future

The ISCU has maintained its commitment to the community model of offering financial services. Despite making important technological steps into such areas as online banking, and creating the large administration branch in Duncan, recent growth has also included the establishment of small community branches. The increase in size and efficiency of operation has allowed the credit union to enhance its services to small communities, staying true to the community spirit that originally motivated the credit union movement.

Case Study Information

This case study was developed for a report entitled Situating Co-operatives in British Columbia - 2000 - 2001, which was prepared for the Province of B.C. (Ministry of Community Development, Co-operatives and Volunteers) by the British Columbia Institute for Co-operative Studies, University of Victoria.  To obtain the information for the study BCICS and the co-operative (credit union) entered into a partnership agreement. BCICS is grateful to the co-op members for their contributions and time. The case study is published with the approval of the co-operative.

Researcher: Lloy Wylie

Date of research: 2001

Author:  Lloy Wylie

Date of writing: 2001

Editing: BCICS editorial group

Supervision: Kathleen Gabelmann, BCICS Research Co-ordinator

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