How the right charter can strengthen your member base

first_img 9SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr Though there are two primary types of credit union charters – state and federal – how it’s employed and whom you target can greatly impact your business.The Federal Credit Union Act of 1934 opened membership acquisition to communities and specific group affiliations. But according to The Credit Union Times, these types of charters were seldom used in favor of occupational charters. In the last 10 years, however, credit unions with community charters have jumped in popularity from 17.9 percent to 35.8 percent. Usage rates of all other subcharters have dropped within the same time span.Though members shouldn’t see a difference in institutions whether backed by the state or the federal government, the local restrictions on your field of membership can affect marketing, benefits and member relationships.Expansion vs. Closed Charter Not only are there community or residential charters, there are also associational, occupational or a combination of multiple inclusion requirements. To expand or not to expand is a question that should not come without a heavy weighing of the pros and cons. continue reading »last_img

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