ALEXANDRIA, Va.-Bill Myers is only a few months into his position as director of NCUA's Office of Small CU Initiatives, and it wasn't long before he would see the biggest issues facing the CUs he's charged with assisting.
"The disappointing thing about small credit unions is the fabulous ideas coming out of there that don't bounce through the movement quickly," he said. "They come up with these ideas that are just fabulous that nobody else has heard of."
While working to spread those ideas to larger CUs, NCUA has unveiled several new initiatives designed to aid small CUs and save money. Some of those include taking its Economic Development Specialist Survey and Training Workshop Attendee Survey online, as well as its applications for Technical Assistance Grants. Additionally, NCUA will also begin offering participants in its training workshops flash drives of material rather than hard copy handouts at each event.
Projects like these have been a focus for Myers, and while they are intended as both cost-savers and "green" initiatives, he does not have projections as to how much what it will mean in cost savings for either the agency or smaller credit unions. "2012 is the year where we implement these and see what he market response is, and in 2013 we'll probably make the cuts that show the savings," he said.
Some Still Offline
The bigger goal behind those initiatives, however, is "testing the waters for Internet capability at the smallest credit unions in the country. There's not a complete understanding in the agency of how many of the smallest institutions are not Internet capable," Myers said. "We've discussed how important it is for the agency to become more efficient, and to the extent that we have credit unions that are sending us paper, it means we have to have someone in the office transferring paper into a digital format."
In an earlier interview with Credit Union Journal ("Ex CEO Takes Lead With Small CUs," Aug. 8, 2011), Myers noted that NCUA was looking at expanding his office's budget, but he said that process is still in the works as the agency evaluates its current procedures and expenses and where it can change things.
"The direction it's heading now is that our office will be more important for small credit unions than ever before," Myers said, echoing NCUA Chairman Debbie Matz's comments earlier this year that examinations will likely be changed to reduce exam hours at small CUs while at the same time boosting consulting support.
A Rare Opportunity
Separately, Myers said the much ballyhooed Bank Transfer Day is also an strong opportunity for smaller credit unions to grow their own memberships, although he was quick to note that his comments are his alone and not reflective of NCUA's attitude as a whole.
"We're in a period of time that will not reoccur in this way for years," said Myers, the former CEO of Alternatives FCU in Ithaca, N.Y. "This was our opportunity, and there are concerns about growth limits. But you can't say 'I'm going to turn you away today and I'll want to be there for you in five years.' ... The larger truth is that we always need the members, because that's where the loans come from. If you turn them away with deposits, you can't get their loans."
Myers stressed that credit unions can't ignore their expense ratios in these scenarios, but emphasized that to let this window of opportunity pass without capitalizing on it would be a mistake.
"You don't get lots of chances in this world to see opportunity walk in your door," he said. "You pay a price if you grab it wrong and you pay a price if you don't grab it."
The former CEO emphasized an open-door policy in terms of communication.
"I would be glad to hear back from small credit unions," he said, noting special interest in "ideas from small CUs about what the office could do, how they're looking at the new examination process or even what it means to be a small credit union. I would love to be engaged in a broader discussion."
Myers encouraged CUs to contact him at
