Credit unions looking to expand often look at mergers as the best, most expedient way to do so. Especially if they want to expand into a new geographic market, finding a merger partner that is already established in that market has several important advantages.
A merger partner in a new market will likely come to the table with one or more branch offices, saving the continuing credit union the considerable expense of opening up new locations. Additionally, the merging credit union will provide an existing membership base and relationships in the community that the continuing credit union can take over and nurture. And of course, by merging with an already established credit union, the continuing organization will have one less competitor to take away market share.
In our three-part white paper, More for Members: Credit Union Leaders Plan Post-Pandemic Merger & Acquisition Strategies, several credit union leaders shared their experiences of geographic expansion via merger.
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