Save One!
Not only have we been working with de novo credit unions, we’ve also been interviewing and working closely with small credit unions that are “at risk*” for merger. It doesn’t matter if we start four new credit unions a year if we are losing over 120 to mergers.
Out of the 4,740 credit unions remaining in the US, there are still 3,629 that are under $250M in assets. (Source CUNA Q3 2023).
The Problems
- Shrinking capital, unable to offer new products and services to remain competitive
- Being held hostage by legacy cores and bad contracts
- Retiring CEO and a lack of succession planning
merged
0
Out of existenceLast year
The Solutions
The CU De Novo Collective Foundation will also have a grant program for “at risk” credit unions*. Again, similar to the CDFI grant program we will have two categories:
- Technical assistance - one idea is to offer a “cut the cord” program to buy them out of their bad contract so they can move forward.
- Capital - to provide them with enough capital to ensure they can remain competitive and avoid merger.
Another solution lies in the sixth cooperative principle: cooperation among cooperatives.
Revolution CUSO is a new CUSO (Credit Union Service Organization) currently in the development phase that will provide leading-edge back-office, technology, and other services to small and startup credit unions at sustainable prices. (Keep your eyes open for more Revolution CUSO news in the coming months!)
*"At risk" is defined as any credit union under $250M in assets with a declining capital ratio that has fallen below 7%