Why Credit Unions Should Consider Joining a Merger Network

Credit unions across the country face unique challenges, from keeping up with technology demands to navigating succession planning and regulatory pressures. As mergers become more frequent, it’s vital for credit unions to find partnerships that truly benefit their members. CUCollaborate’s Merger Network provides a transparent, data-driven approach to help credit unions connect with the right partners.

Here’s why your credit union should consider joining the network, no matter where you are on your path to growth.

The landscape for credit unions is evolving. As financial institutions strive to stay competitive in a digital-first world, mergers have become an essential strategy for growth, sustainability, and scaling member benefits. However, traditional merger processes can lack transparency. CUCollaborate aims to change this with our Merger Network—a structured, opt-in network that levels the playing field and ensures merger decisions are made with members' best interests at heart.

This webinar featured industry experts Kevin McBreen and Luis Dopico, who discussed the current merger trends, the advantages of joining a merger network, and how CUCollaborate’s unique approach can facilitate successful and beneficial partnerships.

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🗓️ Click here to book a meeting to chat about the Merger Network with our team.

In the below session recap, we’ll explore the key takeaways and insights shared during the webinar.

Opening Remarks

‍Phyllis Lee‍

‍Hello everyone. We’re still waiting for a few more people to join, so we’ll be starting shortly. Thank you for joining us today!

Hi, I'm Phyllis Lee, CMO at CUCollaborate. We’re excited to present this webinar on why credit unions should consider joining a merger network, regardless of where they are on their growth path. Today, we’ll be discussing how CUCollaborate’s Merger Network can support strategic partnerships in the credit union space. Our agenda includes:

• An overview of the current merger landscape
• The benefits of a structured merger network
• CUCollaborate’s data-driven approach to member benefit analysis
• Key strategies for joining a merger network
• A Q&A session at the end

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Feel free to submit questions throughout the webinar in the chat. We’ll address them during the Q&A portion. CUCollaborate’s mission is to help credit unions grow, increase impact, and optimize performance. We’re here to support you through every step of your strategic partnership journey. Now, I’ll hand it over to Kevin McBreen.

Current Merger Landscape

‍Kevin McBreen

‍Thanks, Phyllis. Hello, everyone. I’m Kevin McBreen, CUCollaborate’s Merger Advisory Director. Today, I’ll be providing some insights into why mergers are on the rise and the key challenges credit unions are facing.

Since the pandemic, we’ve seen an accelerated shift towards digital banking. This trend has put pressure on credit unions, particularly smaller ones, to keep up with technology demands. Many lack the resources to provide the digital banking experience members expect. Consequently, they’re increasingly looking to merge with larger credit unions that already have robust digital solutions or to combine resources with another credit union to achieve scale.

Small credit unions under $200 million in assets often struggle due to high regulatory costs, technology expenses, and succession planning issues. For them, joining a merger network provides a structured way to find the right partners. Additionally, “Mergers of Equals” have become more common among mid-sized credit unions as they look to achieve economies of scale, often around the $800 million asset mark.

The Merger Network: A New Approach

Phyllis Lee

‍CUCollaborate created the Merger Network to offer a transparent, structured alternative to the typical, often informal merger process. Here’s how it works:

1. Opt-In Network: Credit unions interested in exploring strategic partnerships can join the network, either as the acquiring credit union or the one looking to merge in.
2. Member Benefit Analysis: Our data-driven approach evaluates merger partners based on what would be in the best interest of both sets of members.
3. Anonymity and Confidentiality: The network allows for anonymous participation until both parties agree to move forward, safeguarding member interests and avoiding premature disclosures.

The Merger Network is free for credit unions looking to merge into another CU, as our goal is to facilitate the best match for your members’ future.

Benefits of the Merger Network‍

Luis Dopico‍

Thanks, Phyllis. I’m Luis Dopico, Chief Economist at CUCollaborate. One of the key advantages of our network is that it uses objective data to ensure alignment between merging institutions. We developed a Member Benefit Analysis to assess potential mergers based on factors like product compatibility, technological readiness, and member demographics.

The Member Benefit Analysis considers what’s best for members in terms of services, technology, and overall financial health. Our process takes the guesswork out of mergers and makes it easier to identify partnerships that truly benefit members.

Questions and Answers

Phyllis Lee
Let’s take some questions from the chat. One question is about the cost structure of the Merger Network.

Kevin McBreen
That’s a great question. The Merger Network is free for credit unions looking to merge into another institution. For credit unions that want to explore acquiring another institution, we have a transparent, tiered fee structure based on the services you select.

Phyllis Lee
Another question asks about the data privacy measures within the network.

Luis Dopico
The network maintains strict confidentiality for all participants. Credit unions remain anonymous until both parties express mutual interest, ensuring that potential merger discussions do not impact member trust or create internal disruptions.

Phyllis Lee
Thank you, Luis and Kevin, and thank you all for joining today’s webinar. If you’re interested in learning more or joining the Merger Network, please reach out to us. We look forward to helping you find the perfect strategic partner for your credit union.

Kevin McBreen
Thanks, everyone, and thank you, Phyllis!

Book a Meeting today to Chat about the Merger Network!⤵️