LAS VEGAS-What is the future for WesCorp, and the credit unions that use its services? Credit union Journal asked that question of attendees at the California and Nevada Credit Union Leagues' Annual Meeting here. Here's what they had to say:
Bruce Rodela, President, Frontier Financial CU, Reno, Nev. We will support WesCorp as long as we are able. When the smoke clears on regulatory reform for corporates, where WesCorp goes depends on how Congress and the Feds restructure it.
What happened in the housing market caught everybody by surprise. The credit union movement generally is small institutions doing what they can for their members. We didn't create these problems, we are just trying to survive. WesCorp handles our liquidity, but some of our deposits are with First Corporate in Arizona.
Teresa Freebor,n President, Xceed Financial FCU, El Segundo, Calif. My feeling is I can't think of anyone else I would turn to for payment services besides WesCorp. I am not looking for an alternative and think membership in a corporate should be mandatory. I think 10% of liquidity should be in a corporate, that way credit unions wouldn't be cherry picking for the best rates. Credit unions still could go and use the market, so they could have the best of both worlds.
If credit union numbers decline, corporates should reflect the industry. We operate in five states, so I'm glad we no longer have to have a corporate relationship in each state. I'd be happy with a 'super corporate' system.
I'd rather support the corporate that I own rather than a commercial bank. I hope the industry doesn't force me to go to Fifth Third to do my payments. I think WesCorp is doing what it needs to right now. It is becoming efficient, just as credit unions are.
Patsy Van Ouwerkerk, President, Travis CU, Vacaville, Calif. It is difficult to know what is going to happen with WesCorp. I've paid attention to what NCUA has said and what was discussed during WesCorp's town hall meetings. Some larger credit unions might have employees that can handle investments, so they would be better off than most smaller credit unions.
I want to stay within the system and continue to use WesCorp. As we learn more, we might bid on some items, but we like the services we get at WesCorp. I have heard NCUA won't dictate the number of corporates, it will let the market decide.
Jim Updike, CEO, Honda FCU, Torrance, Calif. Honda Federal Credit Union is certainly looking for alternatives to WesCorp. However, I am very impressed with [WesCorp President and CEO] Phil Perkins. I do not agree with a lot of things NCUA did with WesCorp, but they did make a good choice for the new CEO in Phil Perkins.
The core business of WesCorp must be preserved. People have forgotten the history of credit unions' relationships with banks. We must own those settlement and clearing mechanisms.
Sharon Updike, former CEO, Eagle Community CU History has taught us when we go outside our own industry we get the short end of the stick. Too many credit unions are looking to other providers, and those who do not learn from history make the same mistakes again.
