Central 1

Banking That is Both Flexible and Inclusive

A hub-and-spoke connector of banking choice to Canadians

For more than 80 years, Central 1 has proudly supported the cooperative banking system, working with credit unions and others in the financial services sector who provide banking choice to Canadians. The organization provides core essential services in a B2B relationship to many financial institutions across the country. This long history means they have a culture of continuous evolution to anticipate and respond to changing market forces, the needs of the sector and ultimately continuously evolving consumer behaviours.

With a specialty in providing treasury and payment services, Central 1 manages and moves almost a billion dollars each day, serving as a “one-stop shop” for clearing, settlement, exchange, fraud management and investment, with a connection point to international and domestic infrastructures including SWIFT, Payments Canada’s systems and Interac®.

As a central hub for those who rely on the value that collective scale brings, Central 1 provides reliable access to necessary infrastructure and expertise. With deep knowledge of the financial and banking industry and a desire to innovate with and for their clients, Central 1 was the first in Canada to introduce services like Cheque Imaging, Interac e-Transfer®, mobile remote deposit capture, and online invoicing for small business.

These elements allow Central 1’s clients to focus on their strengths to provide great customer experience, while Central 1 manages the essential behind-the-scenes work.

What are “core essential services” and what do they make possible?

Sheila Vokey

Central 1 facilitates access to payment services for many Canadians, and this goes beyond the credit union system to other financial institutions and clients. For example, in 2022, Central 1 supported the Province of British Columbia in enabling the availability of Interac e-Transfer as part of its upgrades to Emergency Support Services (ESS). This achievement demonstrates the benefits of leveraging modernized payments to support Canadians’ increasing demand for digitally enabled payment choices. Central 1 is proud to continue supporting this, working closely with Interac to introduce this new payment solution and to continue as the Province’s payment service provider.

Clearing and settlement are essential parts of everyday business and payments. Consider a merchant transaction for example. When a customer buys something in a store using a credit or debit card, clearing involves steps taken to confirm and prepare the transaction details before money is moved, settlement is the final step where the money is actually transferred. Then the customer and merchant receive confirmation that the payment is complete.

The treasury function ensures there are sufficient resources to fund company operations, with excess cash invested in performance optimization. As the primary liquidity provider to credit unions and small financial institutions, Central 1 has been recognized for its efforts to include environmental, social and governance (ESG) factors in its investment strategies.

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The changing financial services environment

It is an understatement to say that the market and financial sector have experienced fast-paced change over the past several years. Advances in technology, both for consumers and businesses, need financial institutions to keep up with these advances and changes.

Consumers want to bank online whenever it’s convenient for them. They want their banking provider to support their financial goals with insights and innovative products. They want apps that connect multiple financial accounts to make purchases and other financial transactions easy and seamless. The list of needs and desires for consumers is as large as new entrants to the fintech space can imagine.

More financial services organizations, including fintechs, are seeking to operate as a payment service provider (PSP). Under Bank of Canada’s regulations, they will need to meet new compliance requirements. Central 1, with their deep understanding and experience in the financial services sector and regulatory landscape, is helping these organizations navigate this complex environment so that they can focus on their innovative offering for Canadian consumers.

“Maintaining keen awareness of the change around us and what our members and clients need is table stakes,” said Sheila Vokey, Central 1’s President & CEO at their 2024 annual general meeting. “The size and impact of change further solidifies our belief that working collaboratively is what will set us apart. We will continue delivering insights and solutions — whether that is new and relevant products, forums to come together, or advancing on how we deliver.”

Leveraging unparalleled knowledge of Canadian financial services for the future

While Central 1’s roots in serving cooperative banking go deep, the future is about evolving and keeping pace with change. Meeting and responding to the evolving needs of their diverse client base — both existing and future — is key for Central 1 as a strong partner for financial services providers who deliver banking choice and useful financial solutions to Canadians.

“As a cooperative, we strongly believe in the strength in numbers, and together, there is a strong future ahead for all of us,” said Vokey. “We are committed to our purpose, to our members and clients, and to the long-term success and sustainability of the organizations we serve.”

AT A GLANCE

Central 1

What: A cooperative bank that has dynamic banking options for its valued members

Where: Vancouver, BC, Canada

Website: https://www.central1.com/