When Stephen Scott started his project as an MBA student at the University of Wisconsin-Eau Claire, he had no idea it would lead to this. Of course, the newly appointed general manager of Lac Courte Oreilles FCU-the credit union he is creating to serve the Lake Superior Chippewa tribe of Native-Americans-is not complaining.
"It's a dream come true," he said, explaining that as a Native-American from the Seneca Nation in New York, he has always wanted to do something substantial for his people.
"When I was growing up on my reservation, we had such a large number of people employed there," he said. The problem was that many were moving on and taking their money with them,
By forming credit unions, Scott said, tribes can keep the money revolving within the Nation. Scott's venture with the Lac Courte Orielles band in Hayward came about after discussions with a tribal council member on how he might be able to fulfill a project requirement to earn his master's degree. When the idea of a credit union was mentioned, he jumped at the chance, he said.
A Way To Give Back
"My mother was a clan mother for our tribe," he said. "She taught me to always give back. I thought this would be a great way for me to do it."
With the tribe's permission, Scott began writing a proposal and feasibility plan for the MBA board. Once approved, he went back to the tribal leaders and asked if they would consider moving ahead.
"They were interested but not ready, so I went to work for another tribe," he said. Then, about six months later, Scott said he got a call from the Lac Courte Orielles asking if he would head the project.
"In June of 1999, I proceeded to apply for a charter, started revising the survey, and went to work on financial projections, bylaws and personnel policies and procedures," he said.
With the NCUA's approval in February for an associational, low-income charter, Scott said it's only a matter of time-and weather conditions- before the new credit union can open its doors.
"My sponsor paid for my salary to get this going," he said. "They were also able to provide a space for me, rent free for two years."
In addition, the cost of building a new office about a quarter mile from its casino on tribal property is being covered by a community development grant. It will include space for other businesses and the tribe's tourism office, he said.
"We're just waiting for the weather to reach over 40 degrees so we can pour the cement," he explained. "Right now, I'm lining up new vendors before the grand opening, which is expected in early May."
Scott said he has already secured several bids for the hardware and software the new CU will run, and has purchased the necessary office furniture. With 5,500 tribal members and another 1,000 non-Indian seasonal employees who will also be eligible for membership, he anticipates a great success. The tribe also owns a casino, a school, a two-year college, a health center, and a construction company.
Scott said three banks in Hayward will meet their CRA requirements by providing non-member deposits to help get things started.
The next step is to start interviewing for teller positions. At the same time, Scott is absorbing as much knowledge about the industry as he can.
Goal: To Become CEO
"I am taking as many courses as I can through the Wisconsin Credit Union League," he said. "And I'm lining up some trips for myself to attend CUNA training."
Scott, whose contract with the tribe expires in June, said he's about to submit a proposal that would make him the CU's first CEO.
"They hired me to get the charter and get the doors open," he said. "Hopefully, they will pick me up at least until we can be self-sufficient." Scott said he would eventually like to consider working on the national level to help other tribes start their own credit unions.
