"Johnson, who is CEO and president of Santa Rosa based Community First Credit Union, was in acquisition mode last year. The Sonoma County financial institution merged with Vocality Community Credit Union. "Every year a couple hundred credit unions disappear," Johnson said. He predicts this trend to continue for at least another decade. Johnson said this is occurring, in part, because companies are needing to spend more money on information technology compliance and security."
"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."
Consolidation significantly affects the credit union sector, with a couple hundred credit unions disappearing annually and the trend expected to continue for at least another decade. Community First Credit Union merged with Vocality Community Credit Union after pursuing acquisitions. Rising costs for information technology, compliance, and security are driving consolidation as larger organizations better absorb economic burdens. Mergers offer members tradeoffs including expanded services, longer service hours, and improved technology once members adapt. Digital banking use is increasing, yet physical branches remain important for in-person conversations and personal services. The concepts of community and "first" retain relevance despite changing banking habits.
Read at The Mercury News
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