SACRAMENTO, Calif.-Sometimes, the smaller the credit union, the bigger the compliance challenge.
That's why the Golden 1 Credit Union is working to help some of the state's smallest credit unions — known as the Shapiro Group — with the CU Comply program.
Under its "CU Comply" program, smaller CUs get assistance in meeting compliance requirements by being allowed to "ride along" on Golden 1's existing training contracts.
Theresa Halleck, Golden 1's CEO, told Credit Union Journal CU Comply helps small credit unions that "usually do not have the money or time to send their staff to get compliance training."
"We want to help small credit unions, so we leveraged the existing relationship we have with our vendors," she explained. "We approached them and they agreed to modify our contract to allow small credit unions to take compliance training on our contract."
The vendors' biggest concern was ensuring Golden 1 was not reselling the services at a profit, she added.
Allowing small credit unions to join CU Comply "opens a whole array of training they wouldn't have access to," Halleck said. "It ends up being a discount compared to what a small entity would be able to negotiate."
CU Comply is in its second year. Golden 1 currently operates the program only in California, but Halleck said she would be agreeable to help CUs in Nevada, also, as the California and Nevada CU League is one entity.
"There are 47 credit unions in CU Comply. Once they are in it there's no reason to get out."
Economy Forces Suspension Of Program
A separate program the $6-billion credit unions had been involved with has fallen prey to the current economy and has been suspended. The "Golden 1 Leadership Scholars Program" is administered in partnership with the Richard Miles Johnson Foundation (which is affiliated with the California CU League), and pays all expenses for CEOs of small- to mid-sized credit unions to attend skills development conferences.
Halleck said for the past two years, the program sent small credit union managers to Harvard or CUES leadership programs.
"We have had wonderful success with this," she said. "Small credit unions struggle with expenses, and $5,000 or more to attend a leadership conference just isn't in the budget for most.
"In these times, the credit union world needs leadership, and you can't expect someone at a small credit union to have the time and money to spend on leadership classes," Halleck said. "CEOs and small credit unions usually are giving of themselves and are dedicated in giving their time to their credit union. I don't think most of them would ask their board for money for something like this because it would be out of line."
One Small CU's Two Cents
Stephen Serfozo, CUDE, is executive manager at tiny McClatchy Employees CU. The Sacramento-based credit union has assets of just $17 million, and has benefitted greatly from the two programs Golden 1 offers.
"Particularly CU Comply — it is something we could never access on our own with our asset size," he told CUJ. "It is a very novel idea that gives us tremendous staff and volunteer development. Other credit unions can pay $200 a person for half-day seminars, but that just isn't in our budget."
Serfozo lamented the suspension of the Leadership Scholars Program, which he said "makes things difficult" for smaller CUs. Still, he praised the "wonderful" contributions Golden 1 has made through the two programs over the past two years. He pointed out Golden 1 also participates in an advocacy program through the CCUL that brings small credit unions to D.C. for events such as CUNA's Government Affairs Conference.
"The credit union underwrites the cost of getting a small credit union to GAC. There were 45 small credit union folks at this year's GAC thanks to this program.
"The Golden 1 really is giving," he continued. "There is a standing concern about big credit unions and how they don't care, but I've seen completely the opposite. And they aren't just taking care of so-called merger bait. I think Golden 1 does it because they believe in the value of the credit union system. They believe the credit union system would be weaker without smaller institutions."
The Golden 1's Halleck agreed, saying the programs are, "an investment."
"We value small credit unions and think they are good for the industry. The CEOs at small credit unions are the future leaders. The more the industry remains strong — which is challenging in these turbulent times — and the more we can strengthen the industry, the better off we are. It is our way of giving back."
