The survival of small credit unions in the future may depend on their ability to work together.
They must form networks to share information and resources, and form partnerships, according to industry leaders at the 2013 Annual Conference of the National Federation of Community Development Credit Unions in Baltimore.
These networks come in many forms, including those organized by service providers, leagues, or credit unions—all with the goal of avoiding mergers or liquidation.
Service Centers for Credit Unions contracts with about 20 small credit unions in Pennsylvania to provide services including data processing, staff training, loan processing, and basic office functions.
“I don’t want to see mergers—I don’t like to see you go by the wayside,” Brown says.
Credit unions can save money by sharing forms, office staff, and services through Service Centers for Credit Unions, Brown says. The company's largest credit union client has about $10 million in assets.
“We are not afraid of each other trying to steal members; we are helping each other,” Brown says. "That is the whole object, to share services.”
President Barack Obama sent greetings Thursday to those celebrating International Credit Union Day. CUNA worked closely with the White House on the statement, and a number of credit union-friendly legislators also weighed in with the White House.
The NCUA’s revised supervisory approach to interest rate risk is covered in a recent Letter to Credit Unions (16-CU-08). The new standardized approach is designed to increase focus and resources toward higher risk credit unions.
CUNA’s Strategic Communications Department teamed up with The Wall Street Journal this week on an infographic illustrating the differences between credit unions and banks. The graphic ran in print today, on International Credit Union Day.