ARLINGTON, Va. -
Not likely, according to a number of credit union trade association leaders-including one national association that doesn't have a "vested interest" in the continuation of the state league program.
"There are still so many issues going on at the state level that I believe it is absolutely necessary to have a strong presence in every state," NAFCU CEO Fred Becker said. While CUNA and the state leagues have a dual affiliation system that requires membership in one in order to belong to the other, NAFCU has no formal ties to the state leagues. "When you have an issue come up at the state level, you need to have a contact at the state level to make things happen."
But that doesn't mean there isn't room for ongoing consolidation.
"We have a number of successful examples of leagues that have merged and very effective examples of leagues that have management agreements," Ohio CU League President Paul Mercer said. "We have downsized in Ohio and have heavily embraced outsourcing, partnerships and collaboration. We have to. The same forces of consolidation that are acting on our credit unions are acting on us. You see it happening horizontally across the leagues and vertically with CUNA and CUNA Mutual Group and other partners."
New York State CU League CEO Bill Mellin agreed, adding, "you see the corporates merging and credit unions are reaping the benefits of the economies of scale. Credit unions deserve those same benefits from their trade associations, as well."
There are a number of different consolidation models that leagues can follow, with everything from a true merger to create one entity, such as in the case of Maryland and Washington, which combined to form the Maryland and D.C. Credit Union Association, to the long-standing consolidation of management for Massachusetts, Rhode Island and New Hampshire leagues, which have the same management team but separate boards.
"If there should be any consolidation among trade associations, it ought to be CUNA and NAFCU," said CUNA CEO Dan Mica. "I know this is going to touch off a firestorm of debate, but I don't see any reason that this couldn't be done in a friendly, cooperative way. I'm not talking about a hostile takeover. But perhaps it is time for rational people to ask if this is how best we can serve credit union interests."
But NAFCU insists that having the two separate trade association is not merely a "duplication of effort" but instead strengthens the credit union movement in much the same way that the dual chartering system does.
"There is a value to having two trade associations in Washington. We don't always say the same thing," Becker said. "Bankruptcy reform is a perfect example. Where CUNA decided to join with the bankers, we remained independent, and I think that was a good thing for the movement. Competition is good."
READER RESOURCES
To read the previous story in this series, go to cujournal.com and type in "CU Consolidation Has Trickle-Down Effect On Trade Groups" in the search function.
