PALM BEACH GARDENS, FLA. -
"I don't know enough of the facts to comment on this specific situation, I don't know that it's hostile. To the extent that credit unions can prod their brethren to focus on bringing value to the membership, that's something important that needs to happen," said Chip Filson, CEO of the Washington-based CU consulting firm Callahan & Associates, Washington. Filson spoke with the Credit Union Journal after just having wrapped up a presentation as part of the Financial Solutions Symposium Callahan co-hosted with WesCorp, which focused on the importance of bringing value to the membership.
"Member value is the key. It is the key to the future success of the movement," said Filson. "How each individual credit union translates that for its members is the trick. Holding about one-third of your capital isn't the answer. That should be invested on behalf of your members and then given back to them in some format. Capital should be deployed to the member's benefit. And if the leadership of a credit union refuses to do that, refuses to consider ways to bring more value to their membership, then they may need a change in leadership."
And while it's easy to get bogged down in some of the philosophical arguments the situation has raised, getting back to the importance of members' rights is a key issue for the movement as a whole.
"I think this whole issue is so deceptively simple," said one long-time credit union advocate, who asked not to be named. "Members are the most important thing at issue here. And bringing more value to them is what every single credit union is supposed to be about. Really, I have to say, may the best credit union win."
While the focus on members is key, it's not always clear that really is what drives some decisions, some have suggested.
"Some actions that have been taken have been misguided or the result of greed. No study has concluded a conversion to a mutual savings bank has benefited members in any way. So, if they are not doing it for the sake of the members, I'm not sure what is motivating them," said Dick Ensweiler, CEO of the Texas CU League. "If we are not doing things for the benefit of the members, we are losing our focus, which is my biggest fear. Credit unions have principles of benefiting the member and cooperating with each other. If we are taking actions that violate those two principles, we have a system that is showing cracks. When we see credit unions converting, and not cooperating in merger attempts, this is not the norm. I am bothered when we can't do things for the benefit of the member or cooperating with each other."
