How Credit Unions Can Expand into New States or Fields of Membership
Credit unions are financial cooperatives that their members own. They offer a variety of financial products and services, including savings accounts, checking accounts, loans, and investments. Credit unions are different from banks in that they are not-for-profit organizations. This means that any profits that are made are returned to the members in the form of lower fees and higher interest rates. Let’s look at some ways how to expand your membership at your credit union.
One way for credit unions to grow is to expand into new states or fields of membership. This can be a complex process, but it can be a very rewarding one. There are a few different ways that credit unions can expand their reach.
One way is to merge with or acquire another credit union. This is a good option for credit unions looking to expand into a new market or to increase their size and scale. When two credit unions merge, they combine their assets, liabilities, and members. This can create a stronger and more competitive financial institution.
Another way to expand is to open new branches in new states or areas. This is a good option for credit unions that are looking to grow their customer base in a specific area. When a credit union opens a new branch, it is able to offer its products and services to a new group of people.
Finally, credit unions can also expand their field of membership. This means that they can allow people who are not currently eligible to join the credit union to become members. There are a few different ways that credit unions can expand their field of membership. They can do this by adding new common bonds, expanding their geographic area, or offering community charters.
Adding new common bonds means that the credit union will allow people who share a common bond to join, even if they do not live in the same geographic area. For example, a credit union that is currently open to people who work for a specific company could add a new common bond for people who are members of a specific union.
Expanding its geographic area means that the credit union will allow people who live in a new area to join, even if they do not share a common bond with the other members of the credit union. For example, a credit union that is currently open to people who live in a specific city could expand its geographic area to include people who live in the surrounding suburbs.
Offering community charters means that the credit union will allow anyone who lives in a specific area to join, regardless of whether they share a common bond with the other members of the credit union. This is the most inclusive field of membership, and it allows credit unions to serve the widest possible range of people.
Expanding into new states or fields of membership can be a great way for credit unions to grow and reach new customers. However, it is important to note that this process can be complex and time-consuming. Credit unions should carefully consider their options and make sure that they are prepared to meet the requirements of the National Credit Union Administration (NCUA) before they begin the expansion process.
Here are some additional tips for credit unions that are considering expanding into new states or fields of membership:
- Do your research. Before you start the expansion process, it is important to do your research and understand the requirements of the NCUA. You should also research the market that you are interested in expanding into.
- Get the support of your members. It is important to get the support of your members before you start the expansion process. Your members should be aware of the benefits of expansion and should be willing to support the effort.
- Work with a qualified attorney. The expansion process can be complex, and it is important to work with a qualified attorney who can help you navigate the process.
- Be patient. The expansion process can take time, and it is important to be patient and persistent.
There are many ways to expand your membership resulting in more members to support your credit union’s efforts, and when you need the best forms to enroll those members we have forms for the membership, lending, home equity, or commercial and business needs of your credit union members.
