Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Small CUs fewer banding together on services
WORCESTER, Mass. (4/27/10)--Small U.S. credit unions are dwindling in number and some of the remaining ones are banding together to achieve economies of scale, according to a Monday article in the Worcester Business Journal. “Big credit unions are getting bigger and there are more of them while small credit unions are dwindling in number. All this is happening while the total number of credit unions continues to decline around the country," said the article titled, “Big Credit Unions Keep Getting Bigger.” One distinct factor has caused the decrease in the number of small-asset credit unions, Daniel Egan, president/CEO of the Massachusetts Credit Union League, New Hampshire Credit Union League and the Credit Union Association of Rhode Island, told the Journal. “This is a direct response to smaller-asset credit unions not being able to maintain the continuingly increasing regulatory requirements,” Egan added. One remedy is that roughly a dozen small-asset credit unions in central Massachusetts have banded together and use their combined purchasing power to achieve economies of scale--such as hiring an information technology (IT) director, Debbie Guiney, president of Allcom CU, Worcester, told the Journal. “We got a great price for someone to come in, do IT audits and check for vulnerabilities, and it was much less than what any of us could have individually achieved,” she said. “This type of collaboration will be critical for institutions to survive.” Also, the collapse of the financial services industry highlights the need for smaller locally based credit unions and banks, Egan told the Journal. “Given the recent economic crisis, the whole idea of ‘too-big-to-fail’ is being called into question,” he added. “We’re seeing an increased interest in people going to credit unions to have the safety and security of local financial institutions.” To read the article, use the link.
Other Resources

RSS print
News Now LiveWire
Large CU stress testing on the agenda for the April @theNCUA open meeting http://t.co/2TUcnmCmPi
25 minutes ago
#FinancialLiteracyMonth Test your college financial aid knowledge @nasfaa http://t.co/xgrDmHaw8W
8 hours ago
Join @theNCUA #NCUAchat with @KenWortheyJr on April 23 from 11am to 12pm EST http://t.co/TnNmfFh4Nl #FinancialLiteracyMonth
10 hours ago
Maine's patent troll bill has become law. Read more in Monday in @NewsNowLiveWire
12 hours ago
Wash. DFI discusses serving legal marijuana businesses with @NWCUA http://t.co/3kw79HJUYF
12 hours ago