In Credit Union Costs and ConslidationsFilene Fellow James Wilcox answers the question “Is there significant empirical evidence that credit unions can reduce their costs by operating at a larger scale?”
Findings include:- Differences in average performance across credit unions of different sizes have risen over the last two decades.
- A large fraction of credit unions, as measured by assets, are involved in mergers in any give year.
- Scale matters, but it is not the only thing that matters.
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Is there any information available as to what the average credit union invests in obtaining new members?
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Sheshenoff estimated about four years ago that a CU spent an average of $200 to obtain a new member. Unfortunately, we are not certain what formula/variables were used by Sheshunoff to come up with this number.
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