MADISON, Wis. (9/25/14)--Proactive collaboration is the new credit union mantra, and the Filene Research Institute's new report, Credit Union 2.0: An Opportunity to Build Collaborative Partnerships, outlines the experience of three healthy Wisconsin credit unions that combined to make the most of their strengths.
The report highlights the experiences and decisions of $68 million-asset Best Advantage CU, Brillion; $400 million-asset CitizensFirst CU, Oshkosh; and $107 million-asset Lakeview CU, Neenah, which combined earlier this year to combat competitive pressures, technology challenges and regulatory burdens.
Tammy Williams, Kevin Ralofsky and Pat Lowney, CEOs/presidents of the three credit unions, respectively, tell how each merged into Credit Union 2.0 from a position of strength as equals, unlike the more traditional merger that may combine a smaller or a troubled credit union with a larger or more successful one or involve takeovers.
"Their experience supports Filene's long-held belief that strategic collaboration will be key for credit unions' continued success," said the report's executive summary.
Since 1969, there have been more than 13,000 credit union mergers and a smaller number of liquidations, said the report. "Proactive collaboration will be the ingredient of choice for credit union mergers of the future and by default, should come naturally for financial cooperatives; banks have less incentive to collaborate because of their for-profit nature," said Filene.
Filene advised credit union leaders considering a collaborative merger to keep these points in mind:
For more information about the report, use the resource link.