In 2018, the National Credit Union Association approved 187 mergers between credit unions and an additional nine mergers with banks. Our latest poll of 100 credit union M&A decision-makers demonstrates an unabated desire for M&A activity in the industry, coupled with a marked uptick in interest in merging with non-traditional partners. Among other things, we asked what’s driving their quest for M&A, how long they’ve been looking for a partner, and where potential roadblocks exist.
01
03
04
05
02
2-Minute Takedown
M&A
Strategy
Buy vs. Sell
Roadblocks
CTA +
Sources
About one-third have been looking for longer than a year, and are
with high deal prices and regulations
More credit unions want , and their investments and drivers for M&A differ
2-Minute Takedown
fintech
struggling
to buy than be bought
What kind of transaction are
credit unions looking for?
M&A Strategy
Fintech Company 22%
Bank 32%
Other CREDIT UNIONS 46%
How far are they in the process?
Buy vs. Sell
BE
BOUGHT
BE
BOUGHT
BUY
BUY
Most credit unions pursuing M&A don’t want to merge with other credit unions—a majority cited banks or as their desired partner
36%
64%
Are doing so to:
Are investing in mobile & blockchain
Those looking to buy:
Roadblocks
How long have credit unions been actively pursuing a merger partner?
1
2
4
5
7
8
10
11
The consolidation of credit unions shows no sign of slowing.
More credit unions are looking to buy than to be bought
55%
Prefer other credit unions
to banks
25%
gain cost savings
gain access to technology
expand products and services as well as geographic reach
1
3
2
Are investing in data analytics capabilities & CRM
Are doing so to:
gain cost savings
1
3
2
gain access to talent and build scale
expand geographic reach
44%
31%
Prefer
banks
to other credit unions
Those looking to be bought:
A strategy is in place
Target
partners
have been identified
and screened
Board-level endorsement
Target partners have been engaged
STEP 1
STEP 2
STEP 3
STEP 4
83%
79%
60%
28%
3
6
9
12
9%
months
19%
13%
25%
Why the wait?
56%
Respondents cited both pricing and regulatory delays
Board agreement to pursue M&A as part of strategy
9%
#5
Employee
sentiment
11%
#4
Regulatory
environment
37%
#3
High deal
prices
46%
#2
Uncertain economy
#1
9%
11%
37%
46%
48%
What would hold them back
from closing a deal?
48%
Top integration risks to mitigate
Difference in mission or vision
Regulatory and compliance gaps
Capabilities and skills gaps
Legacy technology
Member demographics
Potential
culture issues
Board
alignment
Learn More
As experts in financial services M&A, we can help.
Read more about the poll results.
About the poll
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In July/August 2019, West Monroe surveyed 100 leaders in credit unions (manager level and above) that are pursuing M&A transactions. The survey was conducted online and respondents were required to be employed in a credit union and involved with M&A decisions and activity.
Read more about the poll results.
12+
34%
41%
41%
38%
31%
22%
19%
6%
About the poll
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The consolidation of credit unions shows
no sign of slowing.
Read more
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to Add Up
Get Your Bank's Acquisition Synergies
to Add Up
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be bought
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non-credit unions 54%