When it comes to safeguarding money, banks have long been the first places that spring to mind. But as the financial services landscape evolves, people are further exploring alternatives to find the best fit for them. At least, that is what Nilesh Kavia, the CEO of Saskatchewan-based Affinity Credit Union, is working toward.
“Generally, our focus is on really expanding the understanding of what credit unions have to offer to others in the province,” he tells The CEO Magazine. “In our province, credit unions have about 35 percent market share and the banks have 65 percent.
“Our focus is really that there’s a lot of people who bank and don’t really think about their choice of where they’re banking, and many don’t have the full understanding of what credit unions have to offer.”
In collaboration with
Brim Financial
In Affinity’s case, that’s a full breadth of products and services. “We’re competitive, but we also have this local and community mindset,” Kavia explains. “We’re values-based banking, if you will. And I think the more people understand that, the more we can provide those services to other citizens of Saskatchewan.”
So far, the institution operates in 41 communities via 49 advice centers making it the largest network of any financial institution in the province of Saskatchewan, according to Kavia. It has more than 144,000 members, which is a decent chunk of the province’s 1.3 million people.
“It’s small compared to European standards in terms of density, but that’s our population, the reach that we could have,” he adds.
The Right Blend
While the next three years are about growth, Kavia is quick to point out that it’s more about expanding the understanding of what credit unions bring to the table than it is about pure numbers.
“Over the years we’ve had to make sure that as we grow, we’re also rationalizing our footprint,” he reveals. “We were focusing on how to serve our communities most effectively. If we hadn’t had the focus of making sure that we’re rationalizing as we’re growing, we’d have over 80 locations right now.”
As it strives to spread the word, getting the right balance between technology and advice is key, Kavia stresses.
“Consumers like to have convenience. A lot of convenience comes through technology and a lot of the transactional work is done through technology,” he expands.
“That open banking environment is going to allow consumers to have better control of their data.”
“A big challenge for us, and I think we do this quite well, is balancing that technology as something that supplements our advisory services. So when consumers are making more complex decisions, whether it’s wealth related or it’s a mortgage decision, they want to talk to somebody who’s an expert advisor. And that’s our focus,” he adds.
Finding the right mix to suit each member at whatever stage of life they’re at is therefore Affinity’s focus. Thanks to its offer of direct advice, which gives it a deeper understanding of what each member’s needs are, it can then harness the latest technology to address them.
This blend, while an operational advantage, also comes with challenges, particularly around the mounting risks of cybercrime – an issue Affinity seeks to safeguard itself and its members from.
At the beginning of 2024, Affinity, along with several other credit unions announced a strategic partnership with Canadian-based technology provider Caspian One. The collaboration marks a significant commitment to lead the charge in embracing leading financial technology and providing enhanced services to members.
“Our CIOs, who are a part of the Large Credit Union Coalition, get together regularly to collaborate. As our CIO says, open banking presents an exciting opportunity to revolutionize the way we serve our members and meet their evolving needs,” Kavia says. “Through this partnership with Caspian One, we’re committed to driving innovation and delivering superior financial experiences.”
Advertisement
Keeping data safe in this new environment is no simple matter, but Kavia is confident that Affinity is on par with, and in some cases, ahead of its competitors on this front. It is continually investing in advancing in this area, which is especially important as it focuses on data governance.
“There are a lot of complexities in the banking system, but technology could be used to help with automating a lot of those processes so that we can have greater focus on the member experience,” he says.
In order to provide members with a full breadth of financial products and services, Affinity has partnered with credit union protection, insurance and financial solutions firm CUMIS and fintech Brim Financial.
“Brim Financial is one the fastest-growing fintechs in Canada and is ranked a best-in-class credit card as a service platform provider globally,” Kavia explains.
“The relationship between Affinity and Brim allows for best-in-class platform as a service technology and credit card infrastructure to fully configure consumer and business products, elevate the onboarding and member self-serve experience, and enhance enterprise workflow management.”
Kavia’s background as a certified ‘lean leader’ is also helping him to help drive the organization forward.
“I am a strong believer that, with a lot of the problems and issues that we face, the people closest to the work are the best ones to involve in helping us solve them,” he says.
A Shared Purpose
Kavia was drawn to Affinity because its values deeply aligned with his own, he recalls.
“I had an aspiration to be a leader in a values-based organization that’s committed to customer excellence and employee engagement, while supporting community development,” he reflects.
The credit union space had appeal for him thanks to its stand-out business model within the world of banking.
“I see banking as a necessary service that we all need and credit unions allow you to have a positive impact on your community while you bank,” he explains.
More specifically, Affinity’s allure lay in its efforts to benefit the local community.
“We’re local in many senses of the word. As a provincial credit union, our decisions are made locally here in Saskatchewan,” he confirms.
“Because we’re provincial, our members’ deposits are invested back into loans, into the community and in many other ways in supporting the community. And we have a really strong focus on impacting the local community through small business lending.”
“Credit unions allow you to have a positive impact on your community while you bank.”
Affinity also fosters community development through its impact lending program. In 2023, it disbursed nearly US$201 million in financing to assist individuals with little or no credit history, those in need of affordable housing, students pursuing higher education and entrepreneurs working to establish their small businesses. This initiative highlights the credit union’s commitment to empowering community members and supporting their aspirations.
“Because of our investment in technology and innovation, and our highly trained and engaged employees, we have deep member relationships and we’re able to provide a full breadth of competitive world-class services to members without compromising our local presence and decision-making,” Kavia says.
It doesn’t end there either. Affinity takes its broader responsibilities very seriously too.
“We have a very holistic approach to community, including a real focus on truth and reconciliation here in Canada with our Indigenous communities, our impact on the environment and a democratic and best practice approach to governance.”
Cooperative Spirit
Of course, none of this would be possible without the involvement and buy-in of Affinity’s 800-plus team of strong and dedicated people, which is why employee engagement is constantly top of mind for Kavia and his management team. Their efforts on this front appear to be paying off, with the most recent engagement survey showing participation levels of 90 percent and scores within the top quartile for overall engagement.
With finding the right talent such a pressing issue across industries, he is pleased with the company’s performance.
“When they have a great employee experience, they’re engaged. That means that our customers and members have a better experience as well,” he says.
“I really believe that by connecting people and communities to financial possibilities, we will be able to elevate the purpose of banking.”
It’s a spirit of collaboration that extends beyond Affinity’s own ranks, however. As Kavia explains, credit unions across the board have embraced the need to work together to increase their impact.
“We all have very similar values in terms of what we’re trying to achieve and our focus on community,” he points out. “There’s a large credit union coalition of CIOs that meet regularly and develop technology.”
Beyond the everyday, Kavia adds that the role of banking can’t be underestimated.
“Banking is one of those services that’s necessary. We all need it, we all do it. But imagine if we could be banking and making a difference at the same time,” he reflects.
“I really believe that by connecting people and communities to financial possibilities, we will be able to elevate the purpose of banking.”
In collaboration with
Brim Financial
Read More
