More Mergers Ahead for School-Related Credit Unions?
In June 2010, the $2.03 billion Basking Ridge, N.J.-based Affinity Federal Credit Union acquired the $2 million New Brunswick, N.J.-based Rutgers University Student & Alumni Federal Credit Union, which had served more than 2,000 Rutgers University students and alumni at three Rutgers University campus locations (New Brunswick, Newark and Camden).
Could other school-related credit unions meet RUSA FCU’s fate? Filene Research Institute Research Director Ben Rogers thinks so.
Campus FCU serves more than 59,000 Louisiana State University faculty, students and alumni, with faculty making up the majority of its membership, followed by students and then alumni, Milazzo said.
School-related CUs do, however, encounter their own set of challenges. Rogers said they often face what he calls a double-edged sword–on one hand, their on-campus locations drive convenience, but on the other hand, many students are unfamiliar with the sheer concept of a credit union.