Will your credit union still be relevant in 5, 10, 15 or 20 years?
Six things to consider as you get ready to be part of the industry’s future.
We’ve all seen the trend of credit unions ceasing to exist at the rate of about one every other business day. Using National Credit Union Administration data, in 2018, the number of credit unions declined by 175.
Interestingly, we continually hear boards and management teams focus on strategic targets and goals that seemingly ignore this reality–the typical thought being that “our” organization is different and will beat the odds. As such it will end up being a survivor for the long term (assuming some magic wand is waved by the credit union growth fairy!).
Truth be told, credit unions haven’t had to focus on growth and posture (relative position with respect to the averages in the marketplace) within the market as a strategic imperative. You simply served your members (often from a limited company, industry or government/educational group) and they remained loyal to you for the duration. Fast-forward to today and credit unions have largely migrated to community-based charters, meaning you and every financial institution in the market (including other CUs) are fighting for relevance among the folks in the community you serve.
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