We’ve created this credit union merger guide to support credit union leaders in identifying and creating a successful voluntary merger strategy and plan, engaging all stakeholders, and if applicable following the plan and the regulatory path to merger.

We know this process can seem complicated, and this guide aims to help leaders navigate the potential complexities of voluntary mergers and achieve long-term success. Successful mergers usually go hand in hand with long term strategic discussions, business planning and risk management reviews.

This guide is written to provide guidance for proactive credit union leaders seeking voluntary consolidation and thereby identifying sustainability as part of a clear strategy and plan to provide better value and services for its membership, through merger. It will not address specifically the challenges faced by credit union leaders who are faced with merger as a final and last resort to prevent, potentially, their imminent failure.

Why strategic mergers?
A credit union is self-sustainable when it delivers fair, efficient, and appropriate financial services to all its members, consistently, over the long term, regularly producing surpluses to invest in people, resources, capacity, capability and in bonds of trust. It is better able to anticipate, prepare for, respond, and adapt to incremental and unforeseen changes when its foundations are strong, its dependencies on third party sources on capital realistic, and its business plan regularly stress tested.

Many credit unions are now, actively considering merger and/or co-operative opportunities to address recent challenges in the economy, its finances, and its membership.

Fair4AllFinance has supported several credit unions seeking deeper co-operation or merger and we remain supportive of initiatives that create a stronger, more resilient, and better performing community finance sector.

Credit unions will want to provide better products and services to their members, to increase efficiency and provide a stronger and more resilient financial future for the credit union, its board, its community, and its staff. To do that independently and organically is a huge task and will require time, resources, and most likely capital. All things typically in short supply and high demand.

A merger can allow the strategic demands of a credit union to be met quickly and comparatively efficiently. The expansion of affordable credit and easily accessible savings is fundamental to the sustained viability of credit unions. It can improve the financial resilience and wellbeing of people, deepen the involvement of all aspects of society, many in vulnerable circumstances, by increasing the availability of and access to fair and accessible financial products and services.