HARRISBURG., Penn.-At the end of 2012 Pennsylvania CU Association President and CEO Jim McCormack will step down, retiring after 32 years with the league, 42 in the CU movement. He spoke with Credit Union Journal about his time at the league and in the industry, and what he sees for the future of credit unions.
CU Journal: How did you get started in the CU movement?
McCormack: I needed a loan, that's how it all began for me. I was going to college and working at as a clerk at a supermarket in Kingston, Penn., and I stopped into the credit union that was formed to serve the Amalgamated Food Employees Union, Local 72. A wonderful woman named Mary McGroarty said she'd give me the loan, but asked if I would serve on the supervisory committee, since I was majoring in accounting. I wanted that loan so I took a spot on the committee.
That eventually led to the role of part-time manager at the credit union. I was also on the union negotiating team that helped negotiate payroll deduction for supermarket employees and led to the growth of the credit union.
CUJ: What was your path to PCUA?
McCormack: After a couple of years at the credit union CUNA Mutual tapped me and I worked for them seven years. I was first a field rep in Pittsburgh, then transferred to the home office in Madison, where I was working on efforts around the early forerunner of asset liability management. I came to the Association in 1981 as vice president of finance and administration, and became president in 1992.
CUJ: How will it feel, Dec. 31, when you step down after 32 years at the association?
McCormack: I will feel a sense of accomplishment, and at the same time recognize that I have been very fortunate to work with good people-from the staff to the board-at the association who truly believed in collaboration and cooperation. They made me better.
CUJ: How important is collaboration and cooperation within the CU movement?
McCormack: It is what will make credit unions stronger. I wholeheartedly believe that. Even the largest credit union is just a small blip within the entire financial system, so working together to leverage all our strengths is imperative. That means partnering together and working with CUNA, NAFCU, and through the leagues and their foundations.
CUJ: What do you see as some of PCUA's most important accomplishments?
McCormack: Again, this was a team effort. But some of the achievements that stand out for me is the growth of the Pennsylvania Credit Union Foundation, the shared service centers that have been developed and are thriving in this state, and the credit card business that was started in Pennsylvania in the mid-'80s that led to more than a couple states introducing plastic to credit unions.
I can't stress enough the work that has been done with the Judge/Bradley Leadership School that we have worked to support in cooperation with Penn State University. We set a new direction for the leadership school years ago, and today it is very vibrant, it's flourishing, and has trained many individuals who have gone on to be credit union leaders.
CUJ: More state leagues are consolidating. What is your opinion about this growing trend?
McCormack: I have a very strong opinion about this. I don't believe in the leagues and associations consolidating. I'd like to see them remain independent, with their own boards, and with their own governmental affairs departments that interact with the state government and the Congress that represent their states. Politics are local-when all of a sudden a league is represented by another state . . .state governments want to meet with people from their own state.
CUJ: What about consolidation of league service corporations?
McCormack: There I see a lot of value in consolidation and collaboration, driving greater economies of scale, and I think in the long run even better decisions.
CUJ: What about credit union industry accomplishments over the years; what stands out?
McCormack: In the 40-plus years I have been involved with the industry, one of the most significant changes has been the increased role of marketing within credit unions. That is helping credit unions expand fields of membership, improve product penetration, and a lot more. CUs in the last decade have become much better at bringing in leaders with less numbers skills in favor of those good at spreading the word about the credit union advantage. Marketing is the key to credit unions' future. Marketing is what banks do best. Credit unions have a great story to tell.
CUJ: What do you see for the future of credit unions and are there any concerns on the horizon?
McCormack: Overall, I see a bright future for credit unions. But the biggest task facing the movement is making sure we remain in front of Congress, the media, and the public with our messages. We are strong and perceived to be the good boys and girls, but we have to make certain that image remains and that our voice is heard. However, I don't believe we need two trade associations. We are a small player and we need to put all of our resources behind one group and move forward in that manner.
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