Banking on a merger: two credit unions unite in Cape Breton

The new year has begun with a new name for a merger of two credit unions in Cape Breton.

On Tuesday, the combined 5,800 members of the Coady Credit Union in Glace Bay and the Steel Centre Credit Union in Sydney officially came under the umbrella of the Cape Breton Credit Union.

"We were a good fit," said new CEO Gary Forsey, explaining that the two branches, both of which will remain open, were very similar in their operations.

He said preliminary discussions about a possible amalgamation revealed it would be more efficient to combine forces and eliminate duplication of services.

But the most important reason to amalgamate was to be able to successfully compete in the "very competitive" financial services market, said Forsey.

"Everybody is involved in financial services. And we have to stand out amongst them because we are not involved in other areas of business. This is all we do. We have to do it very well," he said.

Forsey said a major advantage of creating a larger operation is to be able to afford the latest technology.

"The electronic services, payments, and online services are very expensive, so we have to be a little bigger to be able to afford them comfortably," he said.

As an example, he pointed to the smaller Glace Bay branch, which will now be able to afford an ATM drive-through this spring.

There will be no job losses as a result of the amalgamation, said Forsey, noting some of the 23 employees will see a change in their actual job description.

"It's important that the decision-making and control remain in local hands," he said.