WASHINGTON — Citing recent challenges from the economy and those that lie ahead, NCUA Board Member Michael Fryzel told CUNA Governmental Affairs Conference attendees that collaboration will be a key to the continued success of the movement.
"You are going to have to be the ones to research the problems, devise the solutions, debate among yourselves which solutions are likely to have the best chance of success and the longest lasting benefits, and then work together — large credit unions with small ones, federal credit unions with state ones, SEG-based credit unions with community ones, aggressive credit unions with ones content with their size and markets — to shape a process that is going to wrestle the challenges down to earth," said Fryzel.
Fryzel reminded that solutions to CU issues won't come from outside credit unions. "No one else is going to wrestle these challenges for you. Congress won't do it, other parts of the financial services industry won't do it."
Some of the obstacles ahead for CUs, Fryzel pointed out, are that CUs hold only a fraction of the nation's deposits and banks have deep pockets.
"They can saturate the marketplace with seductive advertisements," said Fryzel. "They can press you on rates and technology, and they can offer loss-leaders. They are a very formidable lot."
Fryzel urged attendees to meet the competition "head-on" and to also pay attention to growth. "You will need to grow. Holding your ground is not going to work. Staying the same will not be an option. You will need to attract new members and staff. You will have to find new methods. The marketplace is cruel, with little chance for error. You are in a struggle of survival of the fittest."
