Is the compliance burden driving your credit union to consider a merger?

If you’re a leader in your credit union, compliance is certainly not a new issue. The compliance burden of today’s market is significant and costly; nor will it go away any time soon. If you feel like you once spent 80 percent of your time on member issues, and now you spend 80 percent of your time on compliance, you are not alone.

Although the credit union compliance burden is a major line item for each institution’s expenditures, smaller organizations are feeling the impacts of today’s regulations to a far greater—and sometimes harmful—extent than their larger brethren. Credit union compliance has driven several small institutions to consider teaming up for the greater good of the bottom line. If this includes you, here are some things to think about:

Opportunity Costs

Although spending ample amounts of time on regulatory compliance is not ideal, it’s simply a cost of doing business. That said, regulations and laws don’t discriminate or adjust for organizations depending on their size. If you’re operating a small credit union with few internal resources to assist with the regulatory oversight, you’re likely feeling the effects of the regulations on a far greater scale than your larger credit union counterparts.

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