The credit union industry faces an inherent dilemma: credit unions are drawn to work cooperatively yet they are responsible for their own shops. In the credit union industry today, the ongoing saga of Mission SF FCU and Toledo Urban CU is playing out quite publicly. Executives at credit unions of all shapes and sizes are coming down on either side of the issue: should credit unions be soliciting donations?
The answer is yes and no.
Low-income credit unions–by the nature of who they're trying to serve–are not going to have the same resources or growth other credit unions can muster. They also are likely to experience somewhat higher delinquencies as they nudge the boundaries of which borrowers represent prudent risks. This is the purpose of these financial institutions.
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