FRANKFORT, Ky.-After 35 years with Commonwealth Credit Union here, CEO Gary Wallace retired Dec. 31. Wallace joined the credit union as manager in 1976 when it served 5,900 members and had $2.8 million in assets, and during his career oversaw growth to more than 82,000 members and $909 million in assets.
Below, Mr. Wallace shares his thoughts in this Credit Union Journal Exit Interview:
CUJ: How did you come to be involved in credit unions?
Wallace: I was managing the Credit Bureau of Frankfort and was aware of the position and felt it had more potential than my current position.
CUJ: What strikes you as the biggest change you've witnessed in credit unions during your career?
Wallace: Technology I think is the biggest change. The government intervention has made a big difference in the way we manage and administer products/services. The demand for a big variety of offerings has made a big change in the way we do business. One flavor does not suit all the unbelievable increase in the usage of technology has also made a big impact.
CUJ: During your career you oversaw substantial asset growth. What is the key to driving and then managing such growth?
Wallace: Growth is one thing, but growing and being profitable is completely different. I am sure you have checked our profitability and know we are fortunate to be in a good position to ward off any real threat. I have been blessed by surrounding myself with great people. With the help and guidance of these great people we have been able to stay a little ahead of what the member needs and expects and be technology aggressive in providing it. This, along with looking at different options for our products and services, have led to good member retention and has attracted new members.
CUJ: What advice would you have for a new CEO just starting out in credit unions?
Wallace: Put the liquor barn on speed dial, face reality and do not become frustrated that you spend more time on complying with current and--I am sure-new laws and regulations than you do improving your delivery of products and services as well as new offerings. Find out how the member wants to do business and adapt to them and not mandate they adapt to you. Understand the change in work ethic of the new generation of staff and how to motivate them.
CUJ: What is your view on the future of credit unions, if there is to be one?
Wallace: I think the smaller ones will not be able to afford the resources to be compliant with the new laws/regulations and meet the technology required by the member of the future. Large credit unions are innovative and creative and no longer wait for other financial institutions to introduce something and the credit unions follow. The ones that concentrate on efficiency will reduce expenses will have a great advantage. Those that adapt to the change in the way the member of tomorrow wants to do financial transactions will play a big part on their success.
