Xtend, a multi-services CUSO based in Grand Rapids, has begun to publish a series of articles that will address possible strategies and tactics that credit unions can adopt as alternatives to merger. Xtend has studied over 200 NCUA merger applications submitted by credit unions between October 2021 and October 2022. In compiling the information contained in these merger applications Xtend has identified several primary reasons credit unions have given as root causes for their decision to pursue a merger.

For example, 73% of the merger applications list the inability to expand products and services as a reason for identifying a larger merger partner. Additionally almost half, 44% of the applications, state that their asset size limits their ability to gain sensible and affordable economies of scale that they perceive as a necessary factor for success in todays marketplace.

In this series, it is the objective of Xtend to provide alternative strategies and tactics that credit unions can adopt to avoid the destructive finality of merger and continuous decline of credit union mergers. It is also an objective to provide fellow CUSOs with a variety of strategies that they can pursue to better support those credit unions that seriously desire to continue to build the viability of their charter and increase the opportunity to expand the CUSO business model

The first two installments of this series can be found on the Xtend website.

Credit unions and CUSOs wishing to learn more about these alternatives should contact Liz Winninger, President and CEO at https://www.xtendcu.com/contact.