Credit Union Restructuring: A Response to the Developments in the International Finance Industry
Rick, S.
Publication Date: 27 Feb 1998
Published by: WOCCU - World Council of Credit Unions
Document Type: Paper
What does the future hold for credit unions in the U.S.?
Within the context of rapidly declining numbers of credit unions in the U.S. over the past three decades, this article outlines the future for financial institutions generally. Suggests distinctions that once separated commercial banks, insurance companies, brokerage firms and credit unions will disappear
Reasons for this include: - deregulation of financial institutions
- emphasis on efficiency and competition
- advancement in computer technology and ease of access to this technology
- consumers increased financial sophistication
- growing regulatory burdens and rising cost of compliance making smaller credit unions seek mergers
The rationale and history of consolidation among U.S. credit unions is covered, including reasons for merger and efficiencies derived from economies of scale and scope. Services and activities of credit service organisations (CUSOs) is discussed, as are structures of shared branching networks
Concludes that credit union customers will be better off if competitiveness in the industry is maintained.
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