It is not the strongest of the species that survives, nor the most intelligent... It is the one that is the most adaptable to change. — Charles Darwin
LAS VEGAS — It seems only fitting that the father of evolution was being quoted when CUs from California and Nevada were meeting here last week for their annual meeting.
Tony Boutelle, CEO of CUDL, was among those quoting Darwin's Survival of the Fittest theory. He noted the indirect lending company set records in 2009 in both the number of dealers added to its platform, and the number of dealers it lost.
Bill Cheney, CEO of the two leagues, told the gathering, "I don't need to remind anyone of the challenges we are facing. We have had setbacks, for sure, but we are starting to see positive signs of an economic recovery. Times are never as good as you think they are when times are good, and they are never as bad as you think they are when times are bad." And then he added a prediction not heard in some time in the two states: "I anticipate an unprecedented surge of earnings."
Meanwhile, despite the struggles of many of the states' CU, delegates voted to continue their public advocacy campaign, albeit at levels significantly below previous years. The public advocacy campaign has been reduced to $1 million from $6 million, and from paid media to so-called "earned" media. "We needed that savings for credit unions this year, but we also need to keep up the message," Cheney said. "We need to offer credit union industry leaders as spokespeople on important economic issues on radio and television."
Cheney played clips of himself on a news radio interview, and of league analysts Terrin Griffiths and Daniel Penrod on TV. "There are literally hundreds of opportunities to present credit unions in a positive light," he continued. "The overall media objective for 2009 was to generate positive images of credit unions as strong institutions."
The public advocacy program was initiated in 2005 to reach out to politicians and consumers to build support. Focus group research had identified three primary hurdles: people don't understand credit unions or don't think they are pertinent to them, and/or they don't think they can join. Early versions of the program included radio spots encouraging non-members to join a CU, and some of the funds were used toward grassroots political efforts.
The proposed assessment for 2010 was reduced again. CUs with $5 million or less in assets will not pay; those at $5 million to $15 million will be assessed a flat fee of $25; the fee increases to $50 for those with $15 million to $42 million in assets. Credit unions at $42 million and more will pay 0.0000047 times their assets, plus 0.047 times their number of members. Nevada delegates unanimously approved the program, while California approved it by a 4,256-to-126 vote.
