Jan. 19, 2010


  • Many of the credit unions that expanded into community charters only have one, or a very small number of branches. Lets face it, in spite of all the advances in online banking, selecting a financial institution for most consumers is still a proximity based decision. A typical branch has about a 3 - 5 mile sphere of influence. I believe that is why credit unions may have expanded their potential membership base significantly by adding county wide charters, but have seen more limited success in adding new members.
    mike s.
  • If you grow your potential membership by 700% (or 1.2 billion people) over 11 years, but only grow actual members around 2% annually, one would expect a huge differential in penetration.

    This seems to undermine the argument for growth through community charters. It looks like you have to add 1,000 potential new members in order to get 1 actual new member.
    Jeffry Pilcher