Schenk Debunks Death of Small CUs Posted by AVCU on 12:25 PM

In a 7/21 editorial posted on Credit Union Times, CUNA Vice President of Economics and Statistics Mike Schenk counters claims about the demise of small credit unions as reported in a study by Boston based consulting entity Celent. 

In its recently released report, Celent cites that small credit unions (those under $50m) are overwhelmed by technology and competition, and that the consolidation of small credit unions is happening more rapidly than that of small banks.

Schenk says the Celent study uses a broad brush that perpetuates several myths about credit union consolidation trends and operating characteristics. He then goes on to posture that small credit unions and banks have consolidated at virtually the same rate, although the average small credit union is 1/2 the size of its counterpart small bank. He cites the cooperative ownership and nature of credit unions as one of the factors that keeps them more competitve at smaller scale than banking counterparts.


Read Mike's complete article here.