These are interesting times for Canadian credit unions and the current landscape presents both imminent and emerging risks. The risks can be clustered into the following 4 areas: 1) Increased competition through alternative payment solutions and new market participants, who put traditional business models under pressure. 2) Regulatory changes are on the horizon which can cause significant implications for business models and the increasing cost of compliance cause additional burden on profitability. 3) The public expects financial institutions to address latest issues in detected misconduct of financial institutions through a more rigorous risk culture and enhanced consumer protection. Finally, Government is alert given latest findings from reports concerning Financial Crime and Money Laundering in B.C. and on a global scale.

 

A review of how these imminent and emerging risks can affect the Credit Unions, the Credit Union System and the consumer will be shared with some interesting perspectives of downsides as well as upsides and the respective opportunities which consumers may expect as a result from this changing environment.

 

Sarah is leading Financial Services for Deloitte’s Risk Advisory practice in Western Canada. She is responsible for supporting Financial Institutions across Western Canada managing the Regulatory and Risk Management challenges, especially Operational Risk creates one of the most imminent challenges.