"Johnson said this is occurring, in part, because companies are needing to spend more money on information technology compliance and security. It comes down to larger companies being able to withstand the economic burdens of doing business. Ultimately he believes members benefit from mergers once they get accustomed to the changes in exchange for the tradeoffs such as more services, more hours that bank personnel are available and better technology."
"While more people are banking digitally, Johnson doesn't anticipate brick and mortar branches disappearing anytime soon. I think there will always be a time and place for in person conversations and personal services, Johnson said. He also believes community and first in the company's name will always be relevant no matter if fewer people bank in person or don't live anywhere near their home branch."
Consolidation is reshaping the credit union sector as dozens of institutions merge or disappear each year; the trend is expected to continue for at least a decade. Rising costs for information technology, compliance, and security push smaller credit unions to seek scale, while larger institutions better absorb economic burdens. Mergers can deliver tradeoffs: members gain expanded services, longer availability, and improved technology after adjustment. Digital banking growth coexists with ongoing demand for in-person branch interactions and personalized service. Community identity and the 'first' element in the credit union name remain relevant even when members bank remotely.
Read at www.pressdemocrat.com
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