WASHINGTON-Credit unions frequently talk of the cooperative principles, but it's the interaction with principals at other co-ops where the bigger challenge often lies.
That much was evident during a panel discussion here, during which it was emphasized repeatedly that there are solid, bottom-line reasons for credit unions to get more invested with other cooperative institutions.
Mike Beall, the former president of the Maryland and DC Leagues and the Missouri league before returning to Washington to helm the National Cooperative Business Association (NCBA), led the discussion aimed at increasing CU knowledge of and partnerships with some of the 29,000 co-ops in the U.S. Beall was joined in the discussion at CUNA's GAC by Mark Cummins, CEO of the Minnesota CU Network; Adam Schwartz, a former employee of the NCBA who is now the principal of the Cooperative Way, a consulting firm; and Joanne Todd, president of Northeast Family FCU in Manchester, Conn., who also volunteers as treasurer of a local food co-op in her market.
"We have a lot of discussions with leaders of other cooperative sectors and what we hear is there is not a lot of involvement by credit unions in cooperatives and that we are seen as the sleeping giant," said Cummins.
'Principles Are Good Business'
As part of his CUNA committee Cummins worked to create a white paper that was published in October 2012 that offers strategies and guidance on working with other co-ops. "I have been encouraged by the response," Cummins said. "A number of people have reached out to me, especially when it comes to thought generation. The cooperative principles are good business."
One frequent issue CUs raise, said Cummins, is they don't know how to find other cooperatives in their market. To that end an app has been created called Cooperative USA that is designed to help identify co-ops.
"You can assign someone at your credit union to be the liaison to other cooperatives," recommended Cummins. "Once you do that it should be of benefit to both parties. Consider recruiting board members who come from the cooperative sector. Make cooperation among cooperatives one of the strategic objectives of your credit union. Use the NCBA as a resource. Use the white paper as a resource. There is enormous potential within the cooperative movement. This is how we can grow as credit unions."
Grassroots Perspective
Northeast Family's Todd shared her perspective from working with a co-op outside the credit union community, in this case a food co-op, of which she is treasurer.
"What really has impressed me about the food co-op is member engagement," said Todd. "Our food co-op has a working member program in which about 100 people work at the co-op in which they get a small discount on their food. But they really feel like they are part of the organization. The store is so different from other stores...We have that same challenge: how do we differentiate our credit union from other financial institutions? How do we promote that we are locally owned and always give a fair deal, that we are values-driven?"
Todd said that at her CU employee education on cooperative principles has become a priority. "I think it's really important to employees to know we are a values-driven organization, that there are rewards beyond the paycheck."
