News flash: Every credit union does not have to use NCUA’s National Credit Union Share Insurance Fund.
Buckle up, the ride just got a lot bumpier.
The news exploded in credit union land on September 30: First Tech, the 12th largest credit union in the country with assets over $16 billion, is merging with Digital Credit Union, the 18th largest with assets over $12 billion. The resulting crosscountry credit union will have assets of $28.7 billion, making it the nation’s seventh biggest credit union serving nearly 2 million members in 50 states.
Of course that’s pending NCUA approval but there’s no indication that would be withheld.
Is this a one off marriage – or is it the start of a new trend where ever bigger mergers help giant credit unions better compete with the money center banks and the huge fintechs where scale matters, great technology is table stakes, and the gloves are off in the fight.
On the show to shed light on what just happened and what the next moves will be is Peter Duffy, a past podcast guest and an adviser to many large credit unions.
Let’s cut to the chase. Duffy in the show says there’s nothing surprising about the First Tech and DCU merger and he predicts we will see more couplings of giant credit unions, probably soon.
What’s fueling this? Duffy offers his perspectives.
