Mergers have not improved the performance of credit unions

[Brendan Burgess]

An interesting article by Charlie Weston based on a report commissioned by the credit union movement.



Half of credit unions heading for collapse

LARGE numbers of credit unions will close unless they urgently change how they do business, a sobering report commissioned by a research body set up by the sector warns.


Already half the State’s credit unions are on course to make losses by the end of this year. The merger mania, which has seen a third of credit unions disappear, has not led the enlarged bodies to perform any better.


The report questions if the sector has the capacity to change. “The problem so far, however, is not enough action is being taken. This raises the question of whether the Irish credit union movement has the will and determination to change in whatever way is necessary so that its people-focused ethos will survive and thrive for many years to come.”

 

[Brendan Burgess]

The fact that mergers have not led them to perform any better doesn't surprise me. I had never understood why merging would help. If they all merged into one very large national credit union, it might make a difference.

https://www.askaboutmoney.com/threads/sandymount-cu-et-al.195732/

And Mr. Earl asked about it here:

How is your CU doing post merger / takeover ?

 

[Sunny]

Credit Unions are in an impossible position until their lending restrictions are lifted and they can't be lifted because they don't have the expertise. Whatever happened to the idea that the Sparkasse model could come to Ireland. I know there was a talk of a trial last year. That would make sense for the credit union sector to get involved in. But it would require significant change in the sector.