Compressed interest margins stemming from the low-interest-rate environment is a huge challenge for credit unions in 2013, but there are also opportunities, according to the chairman of the Texas Credit Union League.

“We make most of our money on the spread, and it’s important to maintain that income stream to better serve members,” said Paul Trylko, league chairman and president/CEO of Amplify CU, a $612 million asset credit union based in Austin, in the league’s newsletter,LoneStar Leaguer (Dec. 17).

The Texas league is asking CEOs in the state what they see as the biggest challenge and opportunity for 2013, said the Leaguer.

“We all need to manage, diversify our portfolios to better serve all of our members, effectively manage risk, and earn yields that support our long-term need to grow capital,” Trylko said.

The biggest opportunity for 2013 will be attracting young people–both as employees and members, he said, noting that the movement has “a great group of next generation leaders already in our ranks that are invested in the cooperative credit union business model.

“We just need to ensure that they have the culture and environment that enables them to serve well, make a difference, give back to the community and be part of something bigger than themselves,” Trylko told the league.

That means including a good compensation system and a progressive way of doing business. “Current leadership has to develop the next generation, give them guidance and get out of the way to allow them to grow,” he said.

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