Deeply member-centric and public-oriented small credit unions have long been a vital part of community banking. However, today’s fast-paced financial ecosystem has shoved credit unions beyond their comfort zone. Credit unions are striving to survive in an age of digital disruption, rising compliance costs, and customer expectations. Responsive, amicable service and a few complimentary mints are not “sufficient” enough anymore.
The one question that occupies a lot of thought is whether the small credit unions should collaborate in order to manage resources, streamline and modernize operations, and contribute expertise or whether the only possible way to endure a highly competitive market is consolidation.
- For the economic health and interest of underserved, underbanked, and communities of colour, small credit unions play a vital role.
- As per the latest data available in the American Banker Podcast A tiny credit union’s tall order Holy Trinity Baptist Church Federal Credit Union is the smallest credit union in the U.S.
- With 85-90 members Holy Trinity Baptist Church Federal Credit Union has about $24,000 in assets.
- According to the National Credit Union Administration Quarterly Credit Union Data summary Q2 2024 as of June 2024, the total number of Small Credit Unions with assets less than $100 million was 2757.
- The total number of members in Small Credit Unions with assets less than $100 million was 4 million
- The total deposit in the Small Credit Unions with assets less than $100 million in Q2 2024 was $81 billion.
- The total loan by the Small Credit Unions with assets less than $100 million in Q2 2024 was $44.3 billion.
Collaboration or consolidation, the one apparent thing, is the fact that small credit unions have to act fast in order to flourish. In order to achieve expansion and stability it is vital now to take measures, whether it’s through shared services, technological partnerships, collaborative networks, or complete consolidations. The finance sector is developing at an incredible pace, and customers currently expect personalization like Netflix and warmth like homemade food. The secret advantage small credit unions have is community trust and loyalty. Thus, in such a scenario, whether it’s collaboration wrapped with innovation or thoughtful consolidation, the future is shining with spirited possibilities
A tiny credit union’s tall order
The National Credit Union Administration Quarterly Credit Union Data summary Q2 2024
