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Credit union business models
Author(s) -
Stowe David L.,
Stowe John D.
Publication year - 2018
Publication title -
financial markets, institutions and instruments
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.386
H-Index - 23
eISSN - 1468-0416
pISSN - 0963-8008
DOI - 10.1111/fmii.12102
Subject(s) - credit union , credit history , credit reference , business , credit enhancement , credit crunch , financial services , credit card interest , finance , actuarial science , credit risk
Credit union decisions on how funds are raised and invested and what services to provide are guided by their business models and should be reflected by credit union financial statements. We use cluster analysis to group credit unions using common size financial statement variables such that the financial statements are similar within credit union groups and distinct across groups. This allows the assignment of credit unions to groups by knowing their essential elements but without predefining the groups. In this paper, we present six credit union strategic groups differentiated from each other by their asset‐liability management choices and the services they provide members. Identifying the various credit union groups provides a clearer picture of their business models and the economic roles that different credit unions play.