ATLANTIC CITY, N.J. — Credit unions need to buck up and take responsibility for their financial issues, according to Brett Christensen, owner of CU Lending Advice, LLC.
Credit unions should change their thinking that the economy is causing all their headaches and look inside their own shops for the causes of their problems, he said. According to Christensen, credit unions are overly addicted to courtesy pay fee income. A better way of making money off members is relationship pricing based on member product usage.
Additionally, credit unions have high operating expenses. To help eliminate those, Christensen recommended the branch to asset ratio should be one per $100 million in assets and one employee per $6 million in assets. "The only people who need your branches are the ones dying every day!" he shouted.
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