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.

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William E. Jackson III

Smith Foundation Endowed Chair of Business Integrity, Culverhouse College of Business

University of Alabama

Report Number 472

From the Center for

Performance and Operational Excellence

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?

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Listen in to our podcast, Do Credit Union Mergers Create Member Value? (You Might Not Be Surprised!), and hear from the report author on how you should approach a merger with caution and due diligence.