'Very Little A Small CU Can't Do'

EL SEGUNDO, Calif. - One of the lessons learned-but unreported-in the failed hostile takeover attempt of Continental FCU is that members would have likely turned down a merger bid with the $1.6-billion, Minnesota-based Wings Financial Credit Union, according to Continental CEO Tom Glatt.

Wings management claimed they were a bigger credit union and could offer more to members in terms of branches, ATMs and rates. Not true, said Glatt, who is a "firm believer" in the cooperative network and a noted speaker on the credit union circuit.

"We belong to a shared branching network of 2,400 branches," Glatt said. "Our members have access to 40,000 surcharge-free ATMs. They could offer some rates better than us, but we could offer some better than them."

The member experience is the primary focus for the $180-million Continental as well as keeping a close eye on member needs. "You need to ask members what did we do that you liked. How did we disappoint you?" said Glatt. "Members said that rates are not as important as location, facilities and surcharge-free ATMs."

Continental also offers wealth-management and business-lending services through CUSOs. It currently has six locations and is negotiating for two additional branches.

"There is very little a small credit union can't do," said Glatt. "If we take care of our members, nobody else can. If somebody else does a better job, shame on us."