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.”
CUNA compliance staff recently responded to a query if credit unions are required to disclose the numerical value of the military annual percentage rate to borrowers covered under the Military Lending Act.
Following its groundbreaking comprehensive study on regulatory burden, CUNA released its new Regulatory Burden Calculator that allows individual credit unions to assess the impact of regulation on their operations.
After months of advocacy by CUNA, the CFPB Thursday wrote to CUNA announcing it will initiate a rulemaking this summer to address issues with the bureau’s Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosures rule.