WEST MIFFLIN, Penn. Small credit unions will have their place in the movement in 100 years, as long as they are full-service institutions.
Despite the consolidation of many small credit unions today, Mike Pastirik, CEO of the $37-million United Community FCU, believes small shops can thrive in the year 2109 if they leverage technology. "As along as we can maintain the major services we can make it. But we have to stay ahead on the technology curve. At United Community we are ahead of the local banks with technology right now."
The small "savings and loan" credit unions, according to Pastirik, will not make it to 2109. "You can't just do savings and loans. We can't charge enough on loans to pay to keep the saving accounts and then have enough to pay the expenses. It's not like the old days."
Healthcare costs may also trip up many small credit unions. "This is a killer," Pastirik said. "My healthcare benefits went up 32% this year and 22% last year. We can't afford to pay for all the benefits."
Pastirik is hopeful that the "right" healthcare reform package could change things, not a plan that's rushed into. If small credit unions can overcome the hurdles of today, Pastirik thinks they will fill a strong niche in 2109. "The bigger credit unions may totally lose their personal touch, and we have to avoid that. But that might make the small credit unions more viable 100 years from now, offering the best personal service in the market."
