The Many Benefits of Mergers
Mergers can significantly benefit members, volunteers, employees and the credit unions—it is the Board and Management’s responsibility to always make active decisions in the best interest of the membership.
For the Credit Unions…
Mergers provide many benefits to the combined credit union:
- Staff Continuity
-- No layoffs
-- Greater internal opportunities
- Diversification
-- Expanded demographics within the credit union can bring needed borrowers, savers, youth, community access and member ---growth opportunities
-- Diversifying field of membership buffers the credit union from sponsor-related activities that inhibit credit union growth, ---such as company closures, down-sizing, strikes, negative press, etc.
- Expanded Geographic Reach
-- Convenience is enhanced through additional branches
-- Enhanced capacity to grow and expand branch and electronic networks
- Economies of Skill
-- Attract and retain quality employees
- Economies of Scale
--The purchasing power needed to negotiate better contracts and obtain products, services and resources needed for greater
--operational efficiency
- Enhanced Products and Services
--Expand services to one credit union that are already offered through the other
--Add new services that can now be justified due to economies of skill and scale
- Technology Enhancements
-- Upgrading/combining systems and technology become possible with economies of scale
- Financially Strong Organization
--A stronger capital base positions the credit union for the future
- Bigger Competitor in the Marketplace
--Greater economies of scale to position the credit union for a bright future
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