TAMPA-For Bucky Sebastian, CEO of the $2-billion GTE FCU, there is a big "if" when it comes to CUs in 2109 — alternative capital.
"If we don't morph into something slightly different than what we are — not by what we do but by how we are allowed to do it — I don't think we will be around," Sebastian said. "The real impediment to growth and prosperity in our charter is the limitation that the only way to obtain capital is through retained earnings. Without the ability to raise capital, it becomes problematic to grow. And I think there will be a major behind-the-scenes effort by banks to see that we are kept in the box we are in."
If the capital issue is successfully resolved, Sebastian is optimistic. "As long as we keep our not-for-profit cooperative structure, we will go wherever our members take us — and they will take us to every corner of the financial services playing field."
That playing field will include a cashless society and handheld devices for transactions, noted Sebastian. But the real key to growth will be leveraging trust. "I think we will be the holder of members' permanent health savings account, their permanent 401 (K), IRA, and we will keep their transaction accounts," Sebastian predicted. "Members will want the credit union to manage those services because it is not-for-profit. Over time people will begin to understand that the debacle banks suffered a year ago won't happen to credit unions because they do not possess the greed factor."
It won't be just the average consumer who flocks to the credit union. So will small businesses. "We will be the principle financial institution for small businesses within 25 years," Sebastian said. "And 100 years from now that relationship will be even stronger."
