According to the law, only federally regulated financial institutions are allowed to use the words bank, banking and banker in their day to day business. This means provincially regulated institutions, like credit unions, are technically not allowed to use those terms The decision has the credit unions looking to have the rules clarified, or changed, to bring definitions established in the 19th century, in line with how they are used in the 21st century.
“Their argument is consumers are confused, but, now, this is something that’s been in place for over a hundred years; we’ve been using the words for over a hundred year now,” explained Don Shumlich, the CEO of Weyburn Credit Union. “Banks are saying we own this word, and you can’t use it unless you use it the way we want you to.”
The enforcement of the rules would mean when a member of the Weyburn Credit Union logs on to the institution’s website, they will no longer be able to log into “Personal Banking” to access their accounts. Starting at the end of the year, if the ruling doesn’t change, they will be looking at other options, which could potentially confuse the customers further, according to Shumlich.
The credit unions are challenging the decision, basing it on the fact the work banking has become synonymous with any transactions done at a financial institution, whether it is a bank or credit union. It has been compared to how a number of brand names have become synonymous with the product, such as Kleenex for facial tissues, or Band-aid for adhesive bandages.
If the challenges fail, starting December 31st, credit unions will no longer be allowed to use the words bank, banking, or bankers on their websites or mobile apps. They will have until June 2018 to have it removed from all printed material, and by 2019 to have it removed from all signs.
Sat, Apr 20, 2:30 PM
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