Vancity Savings Credit Union: Corporate Venturing into Uncharted Waters

VanCity has been Canada's biggest success story in the field of community banking. The board of directors must consider whether the credit union should venture into mezzanine financing, a competitive industry in which the organization has no prior experience. The proposal is favored by a board member who feels that the credit union can re-invent itself in the marketplace by following this route. The decision is troublesome because even if it makes economic sense there is an issue of whether it will achieve organizational fit with VanCity's overall culture and employee orientation.