NEWS RELEASE for June 11, 2008
EDMONTON: "The Board of Directors of what will soon be Alberta's largest credit union decided to adopt the name Servus Credit Union, establish a head office in Edmonton, and introduce a regionalized administration strategy that reflects our service commitment," confirmed William J. (Bill) Anhorn, Chair of the Board of Directors of the new credit union. "These decisions are suited to the growth-oriented credit union we're building for the future, while balancing our desire to introduce province-wide service following our November 1, 2008 amalgamation."
The Board considered several options for the name of the new credit union including the names of each of the existing partner credit unions and a completely new name. Each existing brand has its strength in each of its operating markets, however, the Servus brand was freshly established only 18 months ago, is recognized in a significant urban market, and has existing trademark protection. Each partner credit union will continue to operate with their existing names until October 31, 2008. Following that date and subject to regulatory approval, all three credit unions will operate under the name of Servus Credit Union Ltd. A transition plan for branch signage throughout the network is being developed.
The Edmonton head office location was made in the context of a regionalized administrative structure. Significant analysis was completed to evaluate the attributes of each of the current head office communities. Deciding factors for Edmonton were its central location and ease of access to the province-wide network of branches, its suitability for attracting and retaining employees, and its proximity to professional services and government.
The Edmonton head office, to be housed in the former Dell Building in the south end of the City, will be complimented by a Board endorsed strategy that commits to keeping the majority of employees in their current locations through a network of Regional Offices and Centres of Excellence.
"Being a credit union matters," adds Steve Blakely, President and Chief Executive Officer, "And as with any local credit union, we will continue to have senior personnel with local autonomy and decision-making authority located throughout our communities and not just in head office." This strategy will be fully developed over the coming year.
Alberta's first province-wide credit union is being created through the merger of Common Wealth, Community and Servus. When it begins operating on November 1, 2008, its 2000 employees will serve 400,000 members in 64 communities through its 94 locations. Combined assets immediately following the merger will exceed $9 billion, making it the third largest credit union in Canada.
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| Media inquiries should be directed to: |
| Gail Stepanik-Keber, Servus | 780.638.8011 or 780.913.7629 |
| Interviews available 9 AM – 12 noon, Wednesday, June 11, 2008 |
Backgrounder
1. What is the name of the new credit union?
The new credit union will be called Servus Credit Union Ltd.
2. What options did the Board consider?
The Board carefully reviewed and considered each of the names of the existing partner credit unions and they also considered developing a completely new name.
3. What were the criteria that the Board used to select a name?
The Board considered very broad criteria in selecting the name. Outside of the issues of legally protecting the name itself and the website domains, Servus Credit Union was chosen as being distinct, simply pronounced, easily spelled and consciously recalled by both members and non-members alike. By choosing an existing name, the Board recognized the potential savings as well as the amount of time that would otherwise be required to re-brand an organization of our size. The Servus name includes the words "Credit Union" which is an important statement to both our members and the larger credit union system about our guiding principles and our commitment to the credit union way of banking. The new Servus brand is also relatively new in its design and is easily adaptable for a province wide credit union.
4. Will we immediately change our name?
Each partner credit union will continue to operate with their existing names in the short term. By November 1, 2008, all three credit unions will begin operating under the legal name of Servus Credit Union Ltd. for the purpose of legal agreements, such as loan documents and other contracts. Not all branch signage will reflect the new name on November 1.
5. What will happen next?
Effective immediately, we will move forward to obtain regulatory approval for the new name.
6. Where will the Head Office be located?
The Head Office, including the executive leadership team, will be located in Edmonton with a network of Regional Offices and Centres of Excellence.
7. What locations were considered?
The Board carefully considered Edmonton, Red Deer and Lloydminster for the new Head Office.
8. What decision criteria did the Board use to determine the location of the physical head office?
The Board considered several factors in their decision regarding a Head Office Strategy. In their considerations, the Board consciously looked at the requirements 10 to 20 years from now as we are only just launching our new credit union. Most importantly, the Board considered the ability to retain, attract and develop talented employees as the most critical factor in the location decision. Detailed data including economic costs, strategic location and proximity to government and business partners was also compiled as part of the review.
9. Which departments will be located within the Head Office?
The decision to locate departments in either the Head Office or Regional Offices has not been made.
10. Which departments will be located in the Regional Offices and Centres of Excellence?
The transition strategy underway will determine the next steps in defining the services delivered through the Regional Offices and Centres of Excellence. All of our communities may be considered as possible Centres of Excellence.
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