Addressing the America's Credit Union Conference, Bill Cheney, the President and CEO of the Credit Union National Association (CUNA), stated that he thought credit union assets could more than double in the next 10 years from $1 trillion to $2.5 trillion.
To achieve $2.5 trillion in assets, the credit union industry would have to grow at an annual compound rate of 9.6 percent. By comparison, during the last decade, credit unions grew at an annualized pace of 6.67 percent.
I remember another lofty goal articulated by CUNA. In 1991, CUNA unveiled Credit Union Moonshot. The objective was to expand credit union membership by over 60 percent to 100 million members by the year 2000.
We are twelve years past the year 2000 and the credit union industry still has not reached the 100 million member threshold.
According to past performances, If credit unions grew that fast to that goal they would not have enough capital to stay alive.
ReplyDeleteThen again, if that asset goal were reached, it would just about equal JPMorgan Chase's assets today.
ReplyDeleteCredit unions do not have a problem attracting assets in the current environment. As someone else pointed out, capital is the problem. CUs can only raise capital through earnings, so it is a slow process to safely grow assets.
ReplyDeleteCredit Union Management 101
Delete$2.5 Trillion Goal - from none other than the defendant director of both USCentral & WesCorp FCU. Chasing growth at this rate of speed killed both USCentral & WesCorp. Now the King of CUNA suggests credit union double their assets at the speed of light and ignore capital. This is beyond brilliant. It is downright priceless. Thanks again Bill you are spot on.
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