Small credit unions need help, but must also help themselves

As both CEO of a small credit union and chair of the CUNA Small Credit Union Committee, I appreciated the January column by Scott Butterfield, principal of Your Credit Union Partner, in which he discussed several issues facing our segment of the movement.

Without question, consolidation continues its advance on the industry, fintech continues to raise the bar in terms of meeting consumer needs, and regulatory burden continues to disproportionately hinder those institutions with the fewest amount of resources.

However, despite the ongoing squeeze of small credit unions, I do have hope!

Certainly, I see many small credit unions struggling, but I also see many others innovating and collaborating and learning how to adapt to a changing financial services landscape.

We have challenges, but we don’t have impossible tasks. We can grow. We can offer service unlike any other financial institutions. We have purpose.

This isn’t a large credit union vs. small credit union issue. Many small credit unions simply aren’t doing enough to compete. Collectively, we have less than 1% of the market share. As a former teacher, I’m afraid to tell you that we are earning an “F.” As a mother, I would say “You’re grounded until you get this grade up!”

As Scott pointed out, it is encouraging to see larger credit unions helping smaller credit unions. But if we want to move the needle in terms of small credit union strength, our industry needs more than just collaboration. We need activation. Stop apologizing for being a small business. You’re only as big as you say you are.

Stop telling your community that you only have one branch. You don’t only have one branch. Your local branch is located at 123 Main Street, but with the help of a credit union service organization, you can have the largest ATM network in the nation, with more than 30,000 locations, in addition to more than 5,400 in-person branch locations across all 50 states.

I’d also like you to remember that we don’t necessarily have to be the most tech savvy financial institutions, but that we do have to remain relevant.

At ANECA, we bought CUNA’s Professional Development (CPD) Online training bundle and have been using this to train our entire staff as Certified Credit Union Financial Counselors (CCUFC). This differentiates us in the market.

Other certifications our employees have received include Bank Secrecy Act, compliance, and enterprise risk management expert designations. We also use the bundle for board and supervisory committee training, in addition to using it as the basis of our onboarding program for new hires.

Ultimately, we maintain relevance by being a resource for our members. And we don’t just educate our members, we also activate them. With CUNA’s Member Activation Program, we engage our members to advocate on our behalf, and as the research shows, 82% of members say they want to do more business with us after receiving our advocacy outreach.

As CUNA’s Small Credit Union Committee Chair, I can tell you we’re continuing to work to improve the resources we provide, as well as the way those resources are communicated to everyone. But the point is, these resources—simple and inexpensive ways for you to stay relevant—are out there. And from personal experience I can tell you they can make a big difference.

I know it’s not easy, and that time is precious, but the more you engage, the more you can connect with resources, the more you can strengthen your credit union and, as a result, the credit union movement.

I urge you to remember that of the nearly 6,000 credit unions in the United States, more than 70% of them are small, with less than $100 million in assets.  

We cannot rely on the top 30% to do all the heavy lifting. We are the majority and it is time we started acting like it.

This is something Jim Nussle and CUNA understand. As the nation’s chief credit union lobbying organization, CUNA is invested in the future of small credit unions because they understand the importance of strength in numbers.

CUNA’s primary focus is advocacy, and the CUNA Small Credit Union Committee exists to ensure the voice of small credit unions is heard loud and clear in all of the organization’s advocacy efforts.

Every year, CUNA arranges for the Small Credit Union Committee to have a face to face discussion with the NCUA, during which we discuss the issues facing us on a daily basis. This meeting takes place just prior to the Governmental Affairs Conference (GAC) so that the information can be shared with everyone at our Small Credit Union Roundtable during the conference.

I encourage you to attend the GAC. I also encourage you to send me, Stephanie@aneca.org, any questions you have for the NCUA by February 13. This is your opportunity to have a voice and make a difference.