Financial Cooperation: How a Century-Old Model is More Relevant than Ever
As Desjardins celebrates its 125th anniversary, there’s perhaps no better moment to reflect on the success of the organization’s cooperative model—and what the future holds.
Rooted in community, cooperation and financial equity, Desjardins has become North America’s largest financial cooperative and one of Canada’s most trusted financial institutions. Its longevity isn’t just a testament to business success, but to a bold vision born at a time when the working class had limited access to fair credit.
“For us, social impact isn’t an option, it’s a responsibility,” says Guy Cormier, President and CEO of Desjardins Group. “It’s a deeply rooted belief that has been in our DNA for 125 years.”
A Legacy of Empowerment
Desjardins was founded in Lévis, Quebec, in 1900 by Alphonse Desjardins and his wife, Dorimène. At the time, financial institutions largely ignored labourers and farmers. High-interest lending practices were widespread—some exceeding 3,000% annually. The turning point came when Alphonse, a stenographer in the House of Commons, heard a Montreal MP propose legislation against usury. One case detailed in Parliament involved a man being charged $5,000 in interest on a $150 loan. Alarmed by the injustice, Alphonse set out to find an alternative.
“Alphonse came to the conclusion that the solution to these societal issues lay in a cooperative association,” says Cormier. “He and Dorimène firmly believed the strength of collective action could transform lives and build a more just society.”
The result was a new financial model—one that prioritized savings, local ownership, and fair lending. Alphonse would go on to travel over 62,000 kilometres across Quebec, Ontario and the U.S., helping establish credit unions and sparking one of the most successful cooperative movements in the world.
“Desjardins brought finance to Quebec and sought to offer savings and credit services to support individuals’ financial empowerment and stimulate entrepreneurship.”
The Co-op Model, Reimagined
A century later, the cooperative model remains not only intact but increasingly vital. While Desjardins has grown to manage more than $460 billion in assets and serve 7.8 million members, its core values haven’t changed.
“We prioritize purpose along with profits. There should be no contradiction between business success and collective ownership, or between financial profitability and cooperation,” says Cormier. “It is because Desjardins is profitable and generates surpluses that it can play a role as a socio-economic leader.”
That surplus has real-world impact. In 2024 alone, Desjardins redistributed $557 million to members and communities, including $437 million in dividends and $120 million in sponsorships, donations and scholarships. Programs like Together For Our Youth invest $50 million a year into thousands of initiatives supporting young Canadians—totaling over 1 million youth helped to date.
Younger generations, in particular, are connecting with Desjardins’ values-driven approach. “Consumers, especially youth, are increasingly sensitive about the companies they do business with,” Cormier says. “They want their voices to be heard.”
To ensure their voices are represented, Desjardins formed a Youth Advisory Committee that reports directly to the Office of the President. “Its mandate is to give young people a voice and to support decision-making by providing advice to members of the Board of Directors and senior management,” he explains.
Innovation with Purpose
Desjardins has also embraced digital transformation to stay ahead in a rapidly changing financial landscape. The organization now invests $2 billion annually into digital upgrades, from mobile-first services to AI-powered tools. “To remain a leader in the member and client experience, it’s essential that we continue to evolve,” says Cormier. “Today, Desjardins stands as a leader in Canada in terms of online experience.”
Technology aside, the organization’s cooperative structure sets it apart from publicly traded banks. “Even though Desjardins is one of the largest financial institutions in North America, it is not on the stock market,” says Cormier. “We are looking for long-term returns for our members and clients.”
This perspective informs how Desjardins approaches environmental and social responsibility. From issuing sustainable bonds to building a $2.1 billion renewable energy investment portfolio, the institution is aligning financial growth with climate action.
“Our position in the credit union space is an opportunity to support and influence financial cooperatives in communities across the country,” says Cormier.
Building the Future, Together
Cormier, who began his career at Desjardins as a teller, is now helping to define what a modern Canadian financial institution looks like. “Desjardins’ values have shaped me,” he says. “They made me the man I’ve become, and the President I wanted to be.”
Among the initiatives he’s most proud of is the GoodSpark Fund, created to support regional community projects and originally launched as a post-COVID recovery effort. The organization has since committed $280 million to community investments through 2027. “Projects are chosen in areas selected by our members,” he says. “No other financial institution does that.”
As Canada enters a new era of localism and economic nationalism, Cormier believes Desjardins—and the cooperative movement more broadly—can offer both stability and vision. “Healthy communities are directly connected to the long-term success of the businesses they support,” he says. “We must continue to invest more into Canadian businesses… to reinforce our economies and the prosperity of our local communities.”
A Legacy That Endures
When asked what Alphonse Desjardins might think of the institution today, Cormier reflects on its growth—but also its consistency.
“He would be delighted to see that Desjardins has maintained its member-centric approach while growing immensely,” says Cormier. “Our cooperative nature reflects our history. It guides our present. And it shapes our future.”
