EduCom merges with St Catherine Co-operative Credit Union
EduCom Co-operative Credit Union and the St Catherine Co-operative Credit Union Ltd have merged their operations.
The merger becomes effective January 1, 2017 and will result in the transfer of the assets and liabilities of the SCCU to EduCom.
EduCom is expected to increase its asset base to $7.8 billion and improve its membership to 63,000. The merger should also result in the credit union being ranked the fifth largest in Jamaica, based on assets.
“This merger creates a bigger, stronger and more robust institution to better serve you, provide better rates, and meet the challenges of a modern financial landscape,” EduCom stated.
“Based on the similarities of both credit unions, combining our strengths gives the opportunity to deliver stronger financial performance and offer a wider range of financial products to an expanded membership base,” EduCom continued.
The combined branch network will increase to 11, spreading across five parishes islandwide.
According to EduCom, this strategic merger will have significant benefits to the members and the sustained viability of the merged entities including an increased capital base to mitigate against risk, a wider reach so as to attract more members and an increase in market share and the ability to improve the financial institution’s competitive position.
Additionally, the credit union expects to offer a broader range of products and services, while accessing a greater pool of resources so as to provide additional credit to its members.
“The ultimate objective is to improve our viability and sustainability so that we are able to enhance our overall member value proposition in the long term,” the financial institution stated.
“Both co-operatives have considerable talent and experience in all areas of the credit union movement and going forward our competitive products and employees will allow us to better serve you.”
EduCom and SCCU is said to be merging partly because of increased competition from major banks and other financial institutions which have adopted some credit union approaches.
Established in April 2015, EduCom was created from the merger of Kingston-based AAMM Co-operative Credit Union which was founded in 1960, and the UWI (Mona & Community) Co-operative Credit Union, founded in 1954.
