A need for change: A strategic analysis of creston & district credit union

The Creston and District Credit Union is a well-run and extremely well capitalized community credit union. The local economy & demographics are changing. It has inadequate loan demand given its level of deposits. This has created a situation where its profits are declining. This situation is unlikely to reverse. These trends and economic issues combine to create a situation where targeted internal growth is very unlikely to create a substantive change. The strategic question asked is “What should the credit union do to access a younger membership base, a growing market, and/or increase its’ stability?” The conclusions arrived at are that the credit union should enter into a strategic alliance to syndicate mortgages with a credit union experiencing a liquidity shortfall. It should also explore the option of a more permanent partnership arrangement to increase long-term stability for the benefit of members.