HIGHTSTOWN, N.J. -
At the New Jersey Credit Union League's Small Credit Union Task Force's initial meeting on Sept. 18, the discussion was aimed directly at ensuring a positive future for smaller credit unions.
Although smaller credit unions are considered to be those with less than $10-million in assets, the task force includes representatives from credit unions of all sizes.
"Many credit unions of all asset sizes are concerned about the reduction in the number of smaller credit unions," said Jim Merrill, vice president of business development at the league. "Credit unions of all sizes and the league are working together to develop a clearly defined, strategic approach to supporting small credit unions."
The first course of business for the task force was to answer the question "Is it important that smaller credit unions survive?"
"Although the reasons given in response were varied, the entire group strongly agreed that the survival of small credit unions is important to the credit-union movement," said Beth Frentz, general manager of the $17-million Public Service FCU in Middlesex, N.J.
These reasons discussed included competitiveness benefits all credit unions, and that the viability of small credit unions is important for the millions of people that use as financial institutions, according to Robbie Thompson, general counsel for the league. "It's about the members. For us as a league, we have an obligation to all our members-large and small."
Thompson noted the significance of the large and small credit unions coming together for one issue: "The survival and prosperity of small credit unions."
During the meeting, attendees discussed the large issues smaller credit unions face, such as keeping up with technology, dealing with the regulatory compliance burden, finding time to implement planning while trying to keep up with daily demands, increased competition, and lack of membership growth.
"Obviously we smaller credit unions face many challenges to remain the best choice for financial services, but we owe it our members to try to find solutions," said Tom Cooke, president of the $8-million Elizabeth New Jersey Fireman's FCU.
The task force will continue to meet regularly to discuss the formation of a small credit-union initiative, according to Merrill. "The league has consistently taken steps to support small credit unions in the past," he said, "including providing field staff assigned to smaller credit unions, drastically reducing the cost of educational sessions, and providing scholarships and grants.
"But it is rapidly becoming more difficult for smaller credit unions to operate. This task force will meet often and progress with expediency to build an initiative that address the needs of smaller credit unions."
Approximately 60% of the 227 credit unions in New Jersey have assets of less than $10 million, Thompson said.
"Bringing together credit union leaders representing all asset-size credit unions adds many different perspectives, which will hopefully allow us to be more effective in the implementation of a solution to address the needs of smaller credit unions," said Alice Stevens, VP-ending for $175-million First Financial FCU of Toms River, N.J.
FOR MORE RESOURCES
For more info on this story:
* www.njcul.org
* www.firstffcu.com
* www.psfcunj.com
