As technology continues to be increasingly interwoven into almost every aspect of running a credit union, not surprisingly, more credit union CEOs today have a background in information technology (IT) and its many applications.
This is part of a series profiling current credit union chief executives who moved from the server room to the corner office, and how their time in IT informs their approaches to leadership and decision making.
"I view my role as it relates to technology or any other topic such as finance, ALM, lending, or any other topic, as an interpreter," said Peninsula Community Federal Credit Union President and CEO Jim Morrell. "How to explain complex topics in non-complex ways and their relationship to strategic initiatives and the overall credit union mission."
In 2012, the $157 million Shelton, Wash.-based Peninsula Community FCU, serving 17,700 members in five branches, welcomed Morrell, 46, to its highest post. Beginning his career as a financial analyst at Maps Credit Union, Morrell said it was there that he learned all aspects of accounting, ALM, budgeting and investments. With knowledge of word processing and spreadsheets, he was also part of a team that grew into the Information Services Department.
"My perspectives on technology and application to financial services began to grow," said Morell who has a bachelor's of arts in Economics from Pacific Lutheran University and MBA/MPA from Atkinson Graduate School of Management. "And more specifically how technology can be used to support the credit union industry and our members."
Industry Cred
When Morrell accepted the CEO position, he did so with 19 years of varied industry experience. Along with the aforementioned positions, he worked as an IT manager for the Vancouver, WA—based iQ Credit Union. As a lead developer of technology strategies, he had a working understanding of all aspects of the organization. He soon transitioned to vice president of information technology and then to senior vice president of support services.
"These opportunities grew direct responsibilities over facilities, payments systems and overall strategic planning for the credit union," noted Morrell. He has also been a member of the Filene i3 (ideas, innovation, implementation) program. "This was a tremendous opportunity to learn about innovation, trying out ideas, innovating around those ideas and implementing the innovation."
A common resume bullet point for the CEOs featured in this series is a stint serving on the CUNA Technology Council. Morrell spent nine years as a member of the CUNA Technology Executive Committee (CTC).
"During that time, CTC pursued a goal of becoming the industry leading voice of technology," said Morrell. "As the CUNA Technology vice-chair and then chair, we wrote this guidance and on behalf of the council membership then speaking to numerous groups around the country interpreting this information to credit union technology practitioners, executives and volunteers."
Tech Initiatives
For a CEO who was once a senior manager in technology, the technology decision-making process can be tricky; however, Morrell believes that a CEO with an IT perspective is extremely valuable.
"IT background alone is not sufficient. One should also have experience in at least one if not more areas other than IT, such as finance/accounting, lending, marketing, and a broader understanding of the rest," said Morrell. "I believe this is true for any other people offered the opportunity to serve a credit union as a CEO as well."
With 67 employees, Peninsula Community FCU has four dedicated IT staff, although Morrell said "all leadership team members have an understanding of how they can leverage technology."
Biweekly, the CU's leadership team is charged with identifying new technologies that incorporate all aspects of the organization. Morrell said he helps to evaluate existing and new technologies.
"I will sit in on some vendor demos or pitches. If we are evaluating a number of selections, I will wait until we have a finalist. Typically, I'm referring to instances with higher capital expenditures, outward facing technologies, and sometimes technologies for internal process efficiencies," said Morrell. "For the latter, if it's not a larger expense, I will often accept the recommendation of those that will be utilizing it on a daily basis as they are the ones that get to directly live with the recommendation they make."
As CEO, Morrell said he has pushed for the following technology initiatives: replacing an extremely limited mobile banking solution with a more robust, flexible and usable solution; mobile person-to-person payments; and a decision not to convert its core system.
Additional IT decisions included, streamlining internal operational technologies to create efficiencies such as collateral protection insurance (product and technology to support) and enhancements to indirect lending technology and core processing.
The Humble CEO
On the horizon, Morrell said the CU is exploring digital wallet technology and emerging payment technologies. But that's not all that is in store. "Branch automation is going to significantly change and support our service to members. However, there are capital investments and significant number of moving part/interfaces between a multiple other systems or technologies."
Now three years into his role as CEO, Morrell said achieving this post was a career aspiration, but one he doesn't take for granted.
"My primary passion is to serve credit union members through improving their financial lives, whether wealthy, underserved or unbanked. The role or position I hold to pursue this passion was a goal, but secondary," said Morrell. The opportunity to serve the members of Peninsula Community FCU and the communities we serve is an honor and incredibly humbling."
