In today’s modern financial world, credit unions are faced with challenges perhaps like never before. These entities in the financial world continue to disappear – largely because of mergers or acquisitions. Due to changing demographics, changes in consumer or business needs, negative economic conditions, new competition, rising costs and risks, regulatory and/or income pressures, remaining credit unions are being forced to examine their operation and improve upon their service to the community. 

These challenges would be a difficult task on their own merit, but with the inequities facing credit unions compared to banks, it makes the tasks that much more difficult. Banks have the ability to increase capital operating levels by issuing stock. Although this is not always a magic solution, it nevertheless is a benefit credit unions do not enjoy. 

Credit unions must become more inventive in how they operate – including opening of new charters, extending the common business model to leverage other financial and non-financial, non-interest income sources, forming relationships with other credit unions and CUSOs to obtain business to business opportunities -- just a few of the options credit unions must consider.

Credit union’s challenge will be striking a balance between protecting the culture and traditions of customer service and improving their financial viability to remain a secure and solid option for years to come.