Princess Credit Union
When's the last time you got money back from your bank? Within the world of credit unions, this is common practice. Just ask Brian McGean, Manager of Princess Credit Union in Sydney Mines. In 2009, his institution awarded over $150,000 back to the people of Cape Breton who use the credit union. No small potatoes.
When credit unions make money, they repay those dividends back to the people—called "customer owners"— the people who gave them the money in the first place. When these individuals joined the credit union they become voting members and by contributing a common "share," they actually co-own the institution and have a say in how the credit union is going to be run.
Credit unions have been part of the financial scene in Canada for the last century. In Nova Scotia, they were created during the depression of the 1930s, when fishers, farmers, and miners became mortgaged to local merchants and loan sharks. They needed a source of manageable credit and St. Francis Xavier University in Antigonish helped them realize this goal, becoming the prime mover in the cooperative movement in eastern Canada.
From humble beginnings in church basements and kitchens, there are now 31 credit unions in Nova Scotia. Over the past 20 years, these credit unions have doubled in size several times over and now serve approximately 168,000 people.
Established in 1934, the Princess Credit Union originally served only the population of Sydney Mines. In the 1970s, it amalgamated with the credit unions of Florence and Bras D’Or, and today, is owned by about 3,000 customer owners.
According to Brian McGean, the allure of the Princess Credit Union lies in its strong base within the community. "Every one of our 10 employees is from this community and is actively involved in community-based activities. It's a very important element to doing business here."
The Princess Credit Union also extends donations to many local events and organizations including the Christmas and Canada Day Parades, sports teams, and churches. Recently, they joined forces with the other industrial Cape Breton Credit Unions to raise money for the Canadian Cancer Foundation in Sydney. A total of $250,000 will be donated over a five-year period. "We're very proud of our contribution," says McGean. "There are few people in this area who haven’t been touched by cancer, so these types of efforts really pay big dividends for us in the communities we live in. It puts a human face on a financial institution and credit unions are especially good at doing that."
Originally from Sydney Mines himself, McGean worked in traditional banks for the bulk of his career before coming to Princess Credit Union in 2000. "I don't want to criticize the banks, but I believe there is a unique quality of customer service in a credit union," he says. "One of the major benefits for our customer owners is the type of 'hands-on' customer service they receive."
Independent surveys across Canada for five years running indicate that McGean may be onto something. Synovate’s Best Banking Awards from 2004 to 2009 found credit unions ranked ahead of all banks and other financial institutions for overall customer service. “We are delighted that Canadians have once again recognized the credit union difference,” says Bernie O’Neil, President and CEO of Credit Union Central of Nova Scotia. “Our unique structure, in which our customers are also our owners, gives us an advantage over other financial institutions when it comes to understanding and meeting their needs."
According to McGean, another major difference from banks is the profits of a credit union stay in the community. "The money stays here. It’s not distributed across the country. We're a community institution," says McGean who adds people see them as a welcoming presence. "Our doors are always open and we're always here to help." In fact, the Princess Credit Union is often able to go above and beyond what your average financial institution could ever do. "We have the ability within our structure to work with people in difficult situations and offer them more support than our competition," says McGean. "It feels good to be able to reach out to these people and provide some assistance, with the goal of getting things back to normal over a reasonable period of time."
Currently, McGean and his team at Princess Credit Union are overhauling both their physical and virtual look. A website is in design, long-term strategic planning is underway, and the main office in Sydney Mines will be expanded and upgraded. While these renovations may make their institution more aesthetically pleasing, the content of the credit union won't change.
"We will continue to provide quality service and products that meet the needs of our customer owners," says McGean. "We've proudly served this community for over 75 years and we aim to continue long into the future."
