Growth For Growth’s Sake Not GoodEnough

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TORONTO - (07/14/06) – Credit unions are still addingmembers, but many of those members won’t be around for thelong-term, according to economists speaking Thursday atNAFCU’s annual convention. Credit unions are expected to addas many as five-million members by the year 2010, but many of thosemembers are being double-counted; others are joining for oneproduct or service, like a car loan; and still others may becourted away by competitors, said David Colby, chief economist forCUNA Mutual Group. The major factors for growing membership:charter expansions, indirect lending and a variety of growthstrategies, and being countered by negative factors, like theculling of inactive accounts, the shallowness of indirect loanrelationships, and avid competition, said Colby. “Wedefinitely need positive growth, but it’s positive qualitygrowth,” said Colby. “I’d like to see you deepenthe relationships before you grow therelationships.”

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