In today’s rapidly changing environment where regulations are evolving, new technology and competitors are challenging traditional models, and members are demanding more from their financial institutions, many credit unions are realizing they must expand beyond business as usual to keep up with demand. Credit unions are increasingly executing strategic acquisitions, partnerships, collaborations, and investments in CUSOs in order to keep up.
According to the latest NCUA data, in April 2017, nine credit unions cited “expanded services” and only two cited “poor financial condition” as a reason for merging. The latest data indicates credit unions are increasingly exploring new ways to accelerate growth.
In contrast with a forced merger, which is often recommended by regulators when an institution is in financial distress, a strategic acquisition focuses on proactively identifying growth opportunities in order to set up the organization for long-term success. Credit unions with healthy financials can explore this avenue to build on their position of strength. The best time to determine next steps is when an organization is doing well – not when a problem arises. Waiting until an institution is in distress greatly limits the options available and its ability to survive, let alone thrive. Fortunately, more and more credit unions are taking charge of their growth opportunities by executing strategic acquisitions so that they can continue providing value to their members for years to come.
Interested in accelerating your credit union’s growth?
Join our webinar on July 18 led by John Dearing of Capstone and Bill Stewart of NCB: Got Cash? How Successful Organizations Accelerate Short and Long Term Growth.