BankThink

The most powerful research methodology sweeping credit unions today is based on a simple survey question: How likely is it that you would recommend ABC Credit Union to a friend or family member? Survey participants rate their responses on a scale from 0 to 10. Nines and 10s are “promoters” of the organization, 0-6 scores are “detractors,” and responses in between are disregarded.

Global warming may indeed be the long-term trend, but don’t try selling any Al Gore videos across much of the northern United States this winter (unless you can burn them). It’s been cold and snowing and snowing and cold across much of the country’s top half, and credit unions have been doing what they can to help warm both hearts and hands, everything from collecting mittens in Iowa to special deals on loans to buy heating oil in Massachusetts.

This is a true story. I preface it only because if I didn’t have pictures or witnesses I’m certain someone would accuse me of making it up.

In regards to the story about Fitch reaffirming U.S. Central’s long-term Issuer Debt Rating (IDR) at AAA and its short-term IDR at F1+, I was pleased to note the many positive elements the story covered including the low risk profile, solid credit fundamentals, and strong funding and liquidity position that substantiates Fitch’s reaffirmation of U.S. Central’s very high credit ratings. However, the headline, which referenced a downgrade, was misleading and in fact, inaccurate. A downgrade occurs when the credit rating is lowered, which did not happen. The outlook change from stable to negative that Fitch noted means there are some business conditions that have the potential to lead Fitch to downgrade U.S. Central’s long-term rating. The negative outlook is not a downgrade nor is it necessarily a precursor to a rating downgrade.

A billion-dollar credit union, for the first time in its history, was experiencing negative growth. Although management could think of a variety of explanations, they wanted to isolate exactly what had to be done to reverse the trend.

Often we frame our view of civility in terms of another’s uncivil behavior. In our own shops we may have encountered irate members employing coarse language, or witnessed an occasional board member tirade. Employees occasionally lose their cool with a member or a fellow employee. These are easily detected examples of incivility, some within our control and others beyond it.

Should the credit unions that have been reporting losses for the fourth quarter be required to disclose that promptly to their members?

I was impressed with the courage the Credit Union Journal showed in printing the recent article related to diversity at the very top levels of the U.S. credit union movement.

Strategic planning is a process that should guide your credit union toward your desired future–or it can be an exercise in futility that drains valuable resources, time and efforts.

With credit unions nationwide incurring high costs for new branches, facing increasing competition, and anticipating impending margin compression, there is a greater premium than ever on maximizing branch sales.