With two thirds of all credit unions at less than $100 million in assets, concerns are growing that competitive forces – dominant megabanks, the rapid uptake of digital banking, fintech inroads, low rates and more – could result in massive consolidation. Several industry experts and leaders see alternative ways forward. But how many small institutions can follow that path? Or will? With the tectonic changes altering retail banking — “trillionaire” banks spending billions on digital technology and sophisticated marketing, consumers increasingly able to switch institutions (or divide up their business) on an app — can a $50 million, $200 million or even a $500 million credit union expect to survive, much less thrive? Credit unions, much like community banks, have seen their share of doomsday headlines. Yet thousands remain. In fact, the credit union industry saw significant growth in terms of total assets and members in 2020, as shown in the first of the two charts below. But that indust...
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