Report
1004
Number
Jan 01 1993

Evolutionary Development of Credit Unions

Professors Amburgey and Dacin’s study focuses on credit unions’ foundings, failures, and changes as the credit union movement is impacted by environmental forces. The researchers examine the role that government policy exerted on the ongoing evolution of credit unions and the financial ratios that increase the likelihood of a credit union’s failure or merger.

In addition, Amburgey and Dacin suggest that the greater the number of services offered in a service category, the greater the likelihood that an additional service in the same category will be offered. An important aspect of this research study is its analysis of whether selection processes such as changes in field of membership regulation, increasingly sophisticated technology, and demands for services by credit union members are segmenting credit unions into two strategic groups: one with credit unions that emphasize the solidarity of a common bond, provide a relatively narrow selection of services, and compete only indirectly with other financial service organizations; the other with large, full-service credit unions that directly compete with other financial service organizations.

Report Number 1004