SAN FRANCISCO — Though credit unions are enjoying relative prosperity despite the recent economic downturn, what are they willing to do to adjust to a "new normal" going forward?
That was the big question on the opening evening of the California and Nevada CU Leagues' Annual Meeting and Convention here. Neil Goldman, senior partner of Goldman Consulting & Strategy, who is acting as emcee for the conference, noted the theme of the week is "Reach."
"Most credit unions are in a better place than they were a few years ago," said Goldman, a credit union consultant and frequent conference speaker. "They had to go on a journey, they had to reach deep to make difficult choices that were necessary to survive, they had to reach out to each other for help."
The next step, according to Goldman, is for credit unions to move from "surviving to thriving." He said they need to reach up and renew for a new set of dreams, a new reality.
Diana Dykstra, president and CEO of the two leagues, continued the theme with a discussion of the word "reach."
She said it is a "pretty profound" word - entailing the ability to do, achieve, strive, influence and make an impression.
"The Great Recession was a disruptive event for all of us, and it is behind us now," she said. "For those who say things are not back to normal, please realize we are living in a new normal. We must continue to reach," Dykstra said.
Wayne Tew, president and CEO of Las Vegas-based Clark County Credit Union and chairman of the Nevada CU League, told attendees that the surviving credit unions in Nevada are finally seeing stability. He warned, however, that the cost of new technology needed to compete can be more than small CUs can bear. "We must continue to make great strides just to survive," said Tew.
Teresa Halleck, president and CEO of San Diego County Credit Union and chairman of the California CU League said conditions in California "are getting much better" after "a lot of challenges in the past year."
Public-Facing Initiatives
Dykstra noted the one-year anniversary of the introduction of the "Unite For Good" initiative, which she said has the goal of getting Americans to realize credit unions are their best choice for financial services.
One holdup, according to Dykstra, is that many credit unions are sending individual messages rather than operating with a united front. "We need to remove barriers to craft an improved environment for credit unions," she said. "We are the best-kept secret in the United States, so we have to keep this going."
California's Gov. Jerry Brown recently signed a bill to add financial literacy in K-12 schools. Dykstra said CUs need to lead this effort by getting behind Bite of Reality, an educational program offered by the Richard Myles Johnson (RMJ) Foundation.
Dykstra spotlighted other league initiatives, including Rate Map, which allows consumers to compare interest rates, and Power Comment, a tool that allows credit unions to respond to regulators' calls for comment.
Though CU Roots has been around "for a while" providing audit and compliance services, she said the league is building a site to let people know when regulations are coming in and what to do to comply.
Finally, CU Vitality Marketplace, a private health insurance exchange, will allow CUs to collaborate and provide health insurance plans for their employees. In the future, it is a product that can be offered to small businesses, she said.
"Advocacy is a huge priority," said Dykstra. "We have been very successful in Sacramento and Carson City, [Nev.], this year. We were able to fend off bad legislation and pass good legislation.
"We need to reach beyond today's challenges and reach out for tomorrow's successes," she added.
CUNA's View
Bill Cheney, president and CEO of CUNA and the former president and CEO of the California and Nevada CU Leagues, said he understands many people describe what is going on in Washington, D.C., by saying, "Not much."
"The good news is they [legislators] are back at work," Cheney said. "These are interesting times in Washington."
According to Cheney, CUNA is focused on three initiatives: Unite For Good, Plan To Win and Don't Tax My Credit Union. He said the common denominator in all three is people inside the CU movement are fully aware credit unions are the best way for individuals and small businesses to conduct their financial affairs, "but not enough people know this."
Plan To Win is CUNA's strategy to have relationships with all 535 members of Congress, 435 in House and 100 Senators. "The will not all be our friends, but we need to have relationships with all of them so they understand the decisions they make affect credit unions," he said.
And while it is "easy" to look at the current dysfunction in Washington and assume credit unions will be safe because it seems unlikely there will be comprehensive tax reform, Cheney warned there are drafts of laws being prepared every day.
"We must keep protecting credit unions from being taxed even in these drafts, even if they never become laws. Credit unions need to encourage their members to go to
Lifetime Achievement Award
Patsy Van Ouwerkerk, president and CEO of Travis CU, Vacaville, Calif., received the Leo H. Shapiro Lifetime Achievement Award.
