Is a good old-fashioned strategic plan in today’s highly competitive envi- ronment enough to help your credit union truly thrive? Not according to at least one credit union CEO. To quantify real growth from market share, member loyalty and efficiency, the traditional strategic plan must be enhanced with a balance of ongoing growth measures that board and management agree on and measure success by.

The value of merging is becoming increasingly clear for both the continuing and acquired credit union. When you evaluate the drivers of value for members—rates, fees, convenient locations, extended hours, phone support, electronic access, service quality, and product variety—it is evident that combining two credit unions can offer greater value, particularly when a small credit union merges with a large credit union.

In our work with credit unions, we’ve uncovered these crucial factors in managing a successful merger.

Medium and large CUs seek to increase their scale of new markets, members, branches and, preferably, nondiluting capital costs. Member demands for convenience and accessibility, competitive pressures, technological and regulatory changes, and the current economic cycle are coming together like a “perfect storm” for mergers. Mergers provide continuing CUs with instant members, facilities, trained staff and market awareness.