State Boundaries Mean Less Than They Used To – But They Still Matter
by Stephen Nelson, Utah Credit Union Association
From the beginning, the credit union movement has been organized by states. This made good sense at the start, as the industry leaders sought state laws that would allow for the legal formation of credit unions. State laws required state organizations. Likewise, many traditional media markets were based around geopolitical boundaries.
Technology has played an integral role in changing this situation. It’s blasted to pieces the way media and distribution channels work. After all, a video posted on YouTube is just as likely–or more likely–to be seen outside a state’s particular boundaries, than simply within. With the democratization of the mass media, traditional media markets are being blown to smithereens. Likewise, through service centers, ATMs, and internet-based technology, the role of physical locations is changing.
This has made possible the advent of credit unions crossing over state boundaries–and even leapfrogging many states. The more trans-state credit unions we have, the less this idea of “state boundaries” matters.
Because of this, cooperation across state boundaries is becoming more important. Technology makes it possible for state trades to work together on projects they couldn’t otherwise have cooperated on. Plus, having credit unions in multiple states makes collaboration more important and logical. Increasing value across boundaries gives those state-spanning credit unions a reason to belong.
At the same time, state boundaries still matter because laws are made inside states, and a lobbying presence in each state–that knows the condition, mood, and personality of the state–is still a critical function. A single political gaff in one state could decimate that state’s charter, and might set precedence for action in other states. On a state level, we must ever remain vigilant, proactive, and effective in order to preserve the movement as a whole.
As the trades of the credit union movement seek to position themselves for the future, it’s important that they do not focus on kingdom building. Protecting their own domains for the sake of protecting their own domains will only do a disservice to the movement. Rather, trades should consider the needs of their member credit unions, and the direction the movement is changing, then work toward appropriate methods of collaboration, while preserving local advocacy efforts.
