An increasing number of SEG credit unions have been converting to a community charter, hoping that it will help lead to new growth and opportunities.
But a new CUNA white paper suggests many credit unions are struggling with the many challenges that come with converting to a community charter.
“Sporting a community charter means a credit union must appeal to a much broader audience,” the white paper states. “As a single sponsor or SEG-based institutions, a credit union once had what could almost be called a captive audience to members and potential members. No so with community charters. While the new charter opens the floodgates for potential new members and growth, the flood brings with it a host of new challenges and responsibilities.”
The 21-page white paper, “Developing Strategies for Community-Based Credit Unions,” highlights a number of ways credit unions can develop its niche markets, create unique member experiences, encourage employee involvement and become an active community partner.
The white paper includes detailed examples about how other single sponsor or SEG-based credit unions continued to expand after they converted to a community charter.
The white paper is available from the CUNA Marketing Council.