Not every credit union needs to Merge
,Over the past two months I’ve been hearing something that honestly breaks my heart about the credit union movement.
Several leaders at smaller, growing credit unions have told me they’re receiving unsolicited emails encouraging them to merge into larger institutions.
(I literally just jumped off a MiniBranch call with a local credit union CEO who just received an email today)
Sometimes these emails are framed as:
“Strategic partnerships.”
“Future sustainability.”
“Member opportunity.”
But in many cases, what’s really happening is much simpler.
Large credit unions are actively recruiting smaller credit unions to merge, and some of the individuals sending those emails are financially incentivized to do it.
In some cases, the incentive can be tens of thousands of dollars per successful merger conversation.
After a merger, the acquiring credit union may even bring the CEO on board to help identify and recruit the next credit union to merge. (As we have seen in a recent failed attempt thanks to the members)
I understand consolidation happens in every industry. But credit unions were built on something different.
Local leadership.
Local relationships.
Local service.
Many of the “small” credit unions I work with are actually healthy, innovative, and deeply connected to their communities.
They don’t need to disappear.
They just need the right tools, technology, and support to keep growing.
So if you’re a CEO or board member at a smaller credit union and you receive one of these emails, my encouragement is simple:
Take a breath.
Ask questions.
Remember the mission you were built to serve.
Because the credit union movement doesn’t get stronger when independent institutions disappear.
It gets stronger when they succeed.
And there are a lot of people rooting for that.
So, to all the Small (Growing) Credit Unions out there fighting day in and day out for your members, Don’t Stop! Keep Fighting!
Be sure to reach out to Joshua Urbick, CCUFC and Doug Wadsworth who are doing some pretty amazing things!!