ABCUL Publishes its Strategic Merger Taskforce Report

Thursday 25 January 2024

As part of ABCUL’s Vision 2025 Strategy, the Association committed to exploring the potential for a more strategic approach to mergers/transfer of engagements to develop the sustainability, relevance and purpose of the credit union sector in Great Britain.

To action the commitments made, ABCUL set up its Strategic Merger Taskforce (SMT), a group that has met throughout 2021 to explore the role and context of strategic mergers in the British credit union sector.

The SMT had open discussion on mergers in the sector and were honest on the challenges and sensitivities that come with a transfer of engagements. Due to the sensitive nature of this topic, there was not always agreement on the details of the discussion. However, there was a consensus on the reasons why strategic credit union mergers are needed in the sector, and the challenges faced in increasing strategic merger activity.

This week, the group shared its findings through a white paper report to credit unions and external stakeholders from across the country, following a thorough consultation process.

Commenting on behalf of the SMT, ABCUL CEO, Robert Kelly said: “We are delighted to share the findings of the ABCUL Strategic Merger Taskforce, which was created in January 2021, to kick-start honest conversations around the opportunities & challenges that this issue generates.”

It is hoped that this paper can work towards fostering a positive reputation for mergers within the sector, create recognition of mergers as a strategic tool available to credit unions and instigate more mergers from a position of strength, to form stronger and more sustainable credit unions. Though not necessary or appropriate in every case, strategic mergers form an essential part of a suite of tools that can be used to help strengthen the British credit union sector for the future

Robert added: “ABCUL respect and appreciate that mergers are simply one of many options to secure the future sustainability of a credit union and believe that building a more robust and strategic approach in this area is long overdue in Great Britain.  We look forward to seeing how this theme will develop in the months and years ahead.”

The white paper report published by the SMT is available to download here.