Hubert - merger with Access CU (Accelerate Financial) | Page 2 | Hubert Financial | Discussion forum

Loonie said
There is truth in both camps, which doesn't make this decision easy, at least for me.

There is no question, in my experience, that mergers mean lower rates for us, often worse customer service, etc. The so-called 'efficiencies' are not obvious from our end.

The case for merger includes the idea that it is necessary in the long run for the CU's survival. This may actually be true, but the problem is that I have not heard the case for this clearly presented.
I'm still waiting for a clear answer on this question. All I heard so far was that efficiencies were needed and would presumably improve the bottom line and that fintechs are a threat, but no details.

I am willing to consider these issues as possible valid reasons for merger, but the absence of detail leaves me no choice but to vote "no".

I can't help but think of other small CUs that I belong to. One of them sends out absolutely no emails or postal mail except the T5 and I never hear from them, but they have given me some of the best rates possible from time to time. It's a pleasure not to be bombarded with junk (e)mail.
Another small CU that I belong to sends only twice yearly statements, no other communication except T5. They tell me that, according to a criterion used by CUs (I forget the details unfortunately), they are one of the most successful in the province. And they have good rates.

By contrast, the 3 large CUs that i belong to give very mediocre rates most of the time. I will be dropping one of them in March. I will keep the other two because they have bricks and mortar and longer phone access hours, which I sometimes need.

With the small CUs, I can talk to the CEO if I need to. I doubt I'd ever get through to the CEOs of the large ones.

I think they might consider other models than mergers. I'm no expert, but perhaps they could consider federations of small CUs, where they use some back room work and technology in common but keep their service models unique.

I am somewhat alarmed that the case has not been clearly made. Maybe there really is a good case but it is not being well communicated. I would like to be able to consider it seriously, but the "father knows best" model is not doing it for me.  

Well said. Thankyou.

Loonie said

P.S. I have formally requested more info. Will let you know if I get any. If anyone finds it on their website, please let me know; i haven't searched.  

Loonie,

I searched the Hubert site and couldn't find any details on the reasons/justifications for the merger. However, I hit pay-dirt when I went to Sunova's website.

Read down through this page ➡ https://cusuccess.ca/about-merger/

There's also this, as well ➡ https://cusuccess.ca/

Dean

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And it's also encouraging to see in their list of enhanced offerings (see Loonie's post above ⬆ ), that listed First is; "Highly competitive rates and fees".

This should 'bode well', for all us Hubert fans.

Dean

I don't share that optimism either.

They don't mention what others they will be highly competitive with. If the merged credit unions will be the largest in the province, they may start comparing themselves to the largest credit union in BC, VanCity, or the largest bank in Canada, RBC!

The fintechs are no threat. They have no capital. A fintech cannot compete and snatch away $100 million of mortgages, business loans, or credit card balances when it doesn't have $100 million to front.

The threat is when a competitor, like ATB Financial, or a behind-the-scenes partner, like Concentra Bank, agrees to work with a fintech, like Neo Financial, that doesn't have the legacy overhead of an established credit union.

Just think about the efficiencies Neo enjoys by not having a building like this Sunova branch.

Loonie said
I did get a response to my inquiry asking for more specifics, but it doesn't contain any new information. It basically says they can't be more specific. This leaves me wondering, again, why they're confident this merger will be beneficial.

Two of the three CEO's will be gone. Two of the three boards of directors will be gone. Two of the three banking systems will be gone. Two of the three annual filings, like tax returns, will be gone.

Hubert web site will be gone after migrating Hubert clients to the Accelerate one. Efficiency gains also from reducing the rates on the former Hubert accounts to the Accelerate ones.

Norman1 said

Loonie said
I did get a response to my inquiry asking for more specifics, but it doesn't contain any new information. It basically says they can't be more specific. This leaves me wondering, again, why they're confident this merger will be beneficial.

Two of the three CEO's will be gone. Two of the three boards of directors will be gone. Two of the three banking systems will be gone. Two of the three annual filings, like tax returns, will be gone.

Hubert web site will be gone after migrating Hubert clients to the Accelerate one. Efficiency gains also from reducing the rates on the former Hubert accounts to the Accelerate ones.   

I'm a Hubert member/client, not Accelerate. How do the two compare online banking wise?

I think the general premise (don't know if it's true) is the bigger you are the better positioned you are to survive in a rapidly-changing environment with new forms of competitors and technology arising regularly. And it's not possible to predict exactly how it's all going to play out as the future is constantly unravelling, there will be more adjustments and changes all along the way.

Hubert's 1-year cashable GIC seems totally out of line with what the market offers these day, offering quarterly rates starting at 1.85% with the ability to cash it in, does anybody else offer anything even close to this? Combined with unlimited insurance at first glance it seems cavalier/irresponsible to me.

Someone at redflagdeals reported someone at hubert (i can’t remember who) said the rate would only last until end of january so lock in while you can to be safe. Although it would look poor if the vote was yes and they pulled the rate.

cgouimet said

I'm a Hubert member/client, not Accelerate. How do the two compare online banking wise?

One can have a look around at AcceleRate Financial.

If my Hubert Happy High-Interest Savings account does become an AcceleRate Savings account after the merger, I'll close it. Rate would be lower. Fees would be higher with only one free withdrawal per month.

Hard to justify keeping an Accelerate Savings account when I have an EQ Bank HISA with higher interest and more free transactions.