Concept Launch of the New Individual Member Dividend
MONTRÉAL, April 1, 2019 /CNW Telbec/ - Desjardins Group announced its new dividend format today. Desjardins consulted 4,000 members, held 24 discussion groups and conducted four major surveys to identify its members' needs and expectations. During the year-long process, various departments—from marketing and finance to information technology—were involved in developing a more consistent concept that reaches more members.
"The dividend has evolved from a move to put members at the centre of our focus," said Guy Cormier, President and CEO of Desjardins Group. "By working in the interest of our members, we're confident that the advantages being created bring us closer to our dream of wholeheartedly resonating with people. This dividend is more accessible, consistent, transparent and easier to understand."
Every year, a portion of our surplus earnings is redistributed as individual and collective member dividends. Members of a caisse can choose to forego a portion of their individual gains and instead use them to benefit the entire community through a Community Development Fund.
The new dividend design retains the member-centred approach, and the individual member dividend is still calculated based on your volume of savings and finance activities with your caisse. However, members can expect the following elements to be added:
- Product dividend: This dividend recognizes members who trust in Desjardins for their major financial needs. They will receive an additional fixed amount of $50 for 2019 if they hold at least one product in each of the following families:
- Loans, credit cards and lines of credit
- Amount received displayed via AccèsD
- All caisses will be able to pay a dividend
The amount of the Product dividend will be adjusted every year based on Desjardins Group's financial results. To ensure equality people aged 30 and under, who generally have fewer financial resources, will only be required to have products in three of the four product families to be eligible for the dividend.
With these new additions, more members will be eligible for a dividend. In short:
- 840,000 more members will receive a dividend (up 30%).
- The number of people aged 30 and under who receive a dividend will increase by 50%.
- 7 out of 10 members will receive a dividend.
The new dividend format addresses the needs of members who sought recognition for their loyalty, whether conveyed through the products they hold, their volume of business or their history with Desjardins Group as a whole.
Keep in mind that for the 2018 fiscal year, Desjardins will pay $253 million in dividends, a significant increase from the previous year's $202 million. The 2018 dividends will be deposited into our members' accounts in June 2019.
About Desjardins Group
Desjardins Group is the leading cooperative financial group in Canada and the fifth largest in the world, with assets of $295.5 billion. It has been rated one of Canada's Top 100 Employers by Mediacorp. To meet the diverse needs of its members and clients, Desjardins offers a full range of products and services to individuals and businesses through its extensive distribution network, online platforms and subsidiaries across Canada. Ranked among the World's Strongest Banks according to The Banker magazine, Desjardins has one of the highest capital ratios and credit ratings in the industry.
SOURCE Desjardins Group
For further information: (media inquiries only): Chantal Corbeil, Public Relations, Desjardins Group, 514-281-7229, [email protected]