Co-ops can learn from principles that have been used to successfully manage common pool goods like irrigations systems for generations.
There are many things that make co-operative enterprises different from investor-owned firms. Chief among these is the members’ control of how the business is governed. However, this unique aspect of co-ops is not without its challenges. Anyone who has been involved in guiding a co-op can attest to this. And when a co-op’s members are themselves co-ops, rather than individuals –that is, when they are second-tier co-ops– these challenges can be amplified. Continue reading →
From the time the first credit union was formed in Saskatchewan in 1910, 380 individual credit unions were incorporated. Today, there are 44 (SaskCentral). Co-opertives and credit unions usually start out small, serving the needs of geographically defined members. The power and appeal of the credit union is in locally-based decision making and connection to the local community. When credit unions have been in existence for multiple generations, the communities change, economies change, and environments change. The board is tasked with ensuring the credit union is sustainable both today and in the future. Can credit unions that were formed under different circumstances continue to provide quality services to their members in their new realities? When does the amalgamation question arise? Continue reading →
As noted in the first post on this topic, Top Co-op Issues 2018 surveyed CEOs, board members, managers, and academics across Canada to obtain a snapshot of the most pressing concerns facing co-operative organizations today. This post will discuss some of the many action items suggested by respondents. Although they provided clear advice on all twenty themes, we will focus here on the top six. Continue reading →
The Filene Research Institute and the Canadian Credit Union Association recently commissioned me to write a report examining the characteristics of the well-governed credit union and exploring the values and risks associated with co-operative governance models. Below, I summarize some of the key insights. You can download the full report on which this summary is based here.
Recent mergers and consolidations in the credit union system have led to a decrease in the number of credit unions and an increase in the size of the largest ones, which collectively manage tens of billions of dollars in assets and serve millions of members across the country. As credit unions diversify and grow, they face more risk and greater competition, as well as challenges to the effectiveness of their board governance. Continue reading →
Thirty students from thirteen countries around the world converged on the University of Saskatchewan for an intense week in early October for the Centre-sponsored and -organized Co-operative Governance School for Emerging Researchers. It was a truly remarkable event, with the kind of international pull that only a top global graduate school can exercise; it filled our classrooms and hallways with the excitement of intellectual exchange and an energy that was palpable. The Centre is indeed proud to have attracted this outstanding group of young scholars and to have established the U of S as a leading centre for governance studies.
Part two of this blog post looked at the three I’s of co-op/university partnerships — the Individual, Incentive, and Institutionalizing approaches. Part three examined the three F’s — Faculty, Fee, or Free. It is tempting to match up the I’s and the F’s to create some IF’s. The individual networking strategy for co-ops can link up with the faculty-position-based approach of particular academics. An incentivizing offer from co-ops can match a fee-for-service mentality on the part of an enterprising professor. And an institutionalized approach by co-ops can provide core funding to support the knowledge-for-free style of engagement where faculty are interested and able to follow this model. I suggest that there are at least three equilibria for co-op–university partnerships: Continue reading →
The credit union system in Canada is at a crossroads. The following quotations from Central 1’s October 2016 report If not now, when? illustrate the challenges nicely:
Canada’s Credit Union system is approaching a tipping point. As the small player in the national financial services sector, Credit Unions are being consistently outpaced by the scale and marketing strength of the major banks.… Continue reading →
People with disabilities face barriers to inclusion as full and autonomous members of society. Inclusion of a person with blindness on their commute, for example, requires tactile and audio signals on the bus, at crosswalks, on their cell phone, and to find the right building, the right floor, and the right room. It also requires special equipment and training on how to get around, as well as an employer, landlord, and bus driver who understands his or her needs and rights. Every element of this wide range of daily activities needs to be addressed for the person in the example and for all people with disabilities. Presently, we fall short. Continue reading →
Dionne Pohler.* Photo credit David Stobbe / stobbephoto.ca
I grew up in a small farming village in rural Saskatchewan, where we commonly referred to the credit union as “the bank.” It was the only deposit and lending institution available in my hometown.
The words “bank” and “banking” have clear meanings in common language: Canadians use “banking” as a gerund in the same general way that people use the term “google” to mean an Internet search, or “uber” to ride share. Few understand “banking” as a term reserved exclusively for a subset of federally regulated financial institutions.
On June 30, however, the Office of the Superintendent of Financial Institutions (OSFI), the national regulator of Canada’s federally incorporated banks, issued an advisory that clarifies their interpretation of the Bank Act. The advisory aims to discourage what OSFI claims is increased use of the words “bank,” “banker,” and “banking” by “non-bank financial service providers.” Continue reading →