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Do Credit Union Mergers Create Value for Credit Union Members?

Mergers among credit unions continue to happen in large numbers and remain the subject of impassioned debate. But a decrease in total credit unions is not by itself cause for alarm. Indeed, there is evidence that mergers can provide value to credit union members in the form of continued and expanded services, beneficial rates, and lower fees.

  • William E. Jackson III Smith Foundation Endowed Chair of Business Integrity, Culverhouse College of Business at University of Alabama

Executive Summary

Credit union leaders understand that mergers are a reality of the current financial services landscape—and after five decades of consolidation, many likely have personal experience with them. But that does not mean leaders should approach a merger without caution and due diligence. Many leaders are rightly concerned about how a merger would affect their operations, their employees, and their members—especially their members. Many are thus looking for evidence of the benefits and downsides. As the system consolidates into fewer, larger credit unions, a question lingers: Do mergers create value for members?

Filene thanks its members and Inner Circle sponsors for helping support this research from the Center for Performance & Operational Excellence.

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