CUs Speak Out on Mergers, RBC, Disruptors and the Big Game
Published February 2, 2015 3:42 PM
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Updated June 1, 2021 1:20 PM
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<a href="http://www.cujournal.com/news/can-cus-merge-their-way-out-of-great-divide-1023833-1.html" target="_blank">Can CUs Merge Their Way out of 'Great Divide?'</a>
First of all a merger increases your assets but it does not change your organization structure or culture in the ways you need to change to manage a bigger operation. We did a merger that signifcantly increased our assets and our complexity. We were nominally a much bigger credit union with the structure and sophistication of smaller credit union. It took us about five years to make the organizational and cultural changes needed.
The other reason is just time. A merger of any credit union let alone an imparied credit union is a big project that takes a year or more. I would guess that about 5,000 credit unions will merge (based on the idea that a $500 million dollar credit union is probabably at the lower end of the range for peak efficiency and member relevance). Assuming one year per merger that means we have 5,000 years of merger work. I assume there are about 500 willing and able merger partners. How many of them can give up ten years of time to do these mergers? What other projects will have to be set aside to do even one? The cost benefit equation for doing mergers will soon make doing small mergers very unattractive given the costs, the benefits and the foregone opportunity of doing other projects that benefit the members.
Posted by henryw | Jan. 21
<a href="http://www.cujournal.com/news/could-risk-based-capital-be-heading-for-a-lawsuit-1023840-1.html">Could Risk-Based Capital Be Heading for a Lawsuit?</a>
I'm not an attorney, so won't opine about NCUA's authority. But clearly there are some CUs that have been above-average risk takers. Given the "joined at the hip" nature of the NCUSIF insurance fund, I think that if CUs taking higher risks can be reasonably identified, the idea that a higher risk-based capital requirement applies is reasonable.
Posted by Paul M | Jan. 22
<a href="http://www.cujournal.com/news/startup-simplefi-joins-the-race-to-disrupt-payday-lenders-1023875-1.html" target="_blank">SimpleFi Joins the Race to Disrupt Payday Lenders</a>
Why on earth would we want to go outside to a company that is nothing more than the very roots of the credit union industry? Employer based, payroll deduction, financial products and education? That was the very business plan of cu's for over 50 years! Have our business plans become so grandiose we forgot we are member-based?
Posted by gdstockdale | Jan. 29
<a href="http://www.cujournal.com/news/game-on-two-cus-buy-air-time-during-super-bowl-1023885-1.html" target="_blank">Game On: 2 CUs Buy Air Time During Super Bowl</a>
Another missed opportunity for national credit union associations to inform on the benefits of credit union membership! And this is what a portion of membership dues should be going for....national credit union recognition!
Posted via Facebook by Trudy Hays Parks | Feb. 2
