Critical Condition - Stagnant Growth Threatens CU Viability

Madison, WI - (1/31/2007) CUNA research shows recent CU growth - just about any way it's measured - has been fairly weak when viewed historically, according to the article. Deterrents to growth include current economic conditions, aging member demographics, competition, and over capitalization.

The article recommends credit unions should change current business models and practices. Just changing to a community charter on its own will not solve the problem according to experts quoted in the article. "Some credit unions convert to a community charters only to discover that new members don't necessarily line up at the door," said one leading credit union researcher.

CUNA's leading economist believes it is critical for an institution to grow. He said, "if you're not growing, you're not going anywhere." The article offered various suggestions for addressing this "critical" issue. According to several involved with the conversion of the credit union business model to a mutual savings bank, the article is just one more example of third party evidence validating their conversion. (CU Financial)