Dan Egan is part of a history that goes back to the very beginnings of credit unions in the United States. He's president of the first CU league in the country, and was heavily involved in helping to turn a building that was home America's first credit union into a museum.
But as he makes plans to retire at year-end, he's less concerned with the lineage behind him and more worried about what's ahead, especially in the next decade.
Egan has been president of the Massachusetts CU League (and now the New Hampshire and Rhode Island leagues) for 32 years. But when asked for a prediction on where credit unions might be 32 years from now, it's not a forecast he's interested in making.
"I can't answer where we'll be in the next 32 years. I wouldn't venture a guess," Egan said. "But I would say again that if we don't become more aggressive, in 10 years there is going to be a credit union community that we are not going to recognize. It will have far fewer credit unions, fewer than 4,000, and they will obviously be larger institutions, and will be a movement that I believe will be subjected to a different regulatory and legislative agenda, and that includes taxation."
Beyond just being more aggressive with advocacy, Egan believes a big part of the solution also lies in what might best be described as a killing-two-birds-with-one-stone strategy, at the root of which is the great divide that has taken place in America's credit union community.
'How Cooperative Are We?'
When I asked what, if anything, trade associations can do to help stem the shrinking number of small credit unions, Egan responded, "I think something can be done, but it gets back to the issue of how cooperative are we really? To survive, the smaller credit unions are going to need outside assistance from the credit union community, particularly larger credit unions. That's what will make the difference. As a state trade association we can be a conduit, but everyone must understand that small CUs are an integral part of the fabric of the community. It is all about the cooperative model being utilized. There is no doubt in my mind that if we lose too many small credit unions, the results are going to be unpleasant. The larger credit unions are going to be more vulnerable to taxation and other regulation. Most of the larger credit unions understand the dynamics of the issue. The difficulty is in implementing something meaningful."
One of those difficulties, Egan acknowledged, is the paranoia (sometimes well-placed paranoia) that the only interest large CUs have in smaller CUs is in merging them. "We have to get past that," said Egan. "The ultimate objective has to be self-preservation for both."
A graduate of the Boston University School of Law, Dan Egan joined the Massachusetts league in 1981 as its general counsel, before being named president in 1984. During his career he was active on the CUNA board, and served a two-year term as Chairman of CULAC, chaired AACUL, and has swerved on the Filene board. When Egan joined the Massachusetts league Ronald Reagan was president and many of the coveted Gen Y'ers were not yet born. What changes strike him most since that time?
Striking Changes
"I think the changes that have been most dramatic have certainly been technology and the way financial services are conducted and the strain that has put on credit unions to retain their competitive positions," answered Egan. "Regulation has also been an extraordinary change, especially over the last six to seven years. Then there is the diversity in the size of credit unions and the way larger credit unions are able to better adapt to those changes, and smaller credit unions, which cannot adapt as quickly. There is a resulting imbalance. All have combined to have a dramatic effect on credit unions."
A bifurcated membership could put a CU association in a no-win position, but Egan said that has not been the case. "The common denominator from a trade association perspective is the constant of regulatory advocacy. What has changed is the intensity of that effort. There is more pressure on state trade associations to adopt more sophisticated products and services, and to have more adept personnel."
Managing any association is difficult, but it can be like juggling soup when you represent the divergent needs, desires, asset sizes and personalities in credit unions.
What The Job Requires
"I learned it really is all about relationships and relationship management," said Egan of what it takes to successfully lead a league. "Everybody has different views on what they need from an association, and you also have to be able to adapt to different styles (of people). You have to have the ability to work with legislators, credit unions, regulators. You have to be a cooperator. You have to be able to manage relationships on multiple levels. You also have to have enough business acumen to manage an organization with limited resources."
The only resource in abundant supply for credit unions is people. People who will get involved in local campaigns. Write letters. Stuff letters. Hold signs. They are the advocates in the advocacy that has become a primary role for state leagues. Not surprisingly, Egan points to an old Massachusetts pol for the key to what makes advocacy work.
"I think I have learned, and have learned over and over again, that what (former House Speaker) Tip O'Neill said is really truethat all politics is local," said Egan. "You have to have a grassroots organization and you have to have local people contacting local representatives to get things done. The influence comes from people in their backyards every day, from people who know them and their families. And it is the smaller credit unions that really have the most significant contacts with legislators. The smaller CUs are involved in each and every community. They are the ones who are in contact with these communities and representatives every single day."
A Vestige From 1934, & More
Most people outside of New England forget (or never knew) that for many years the Bay State had two state CU associations, and the Massachusetts Credit Union League was the one not affiliated with CUNA. The divide went all the way back to CUNA's formation in 1934, when the Massachusetts delegation (the first state league in the country) refused to sign CUNA's charter due to differences over representation. That led Ed Filene and Roy Bergengren, who disagreed with the decision, to form the Massachusetts CUNA CU Association, which is where Egan first went to work. The two groups had a long rivalry before marketplace realities led to a merger in 1997, and the first league officially became the last league to join CUNA.
"I was general counsel and then president and trying to mend the wounds of that long separation was one of the great trials of my career. Now we are better off. As I look back on the list of things form my career, it's one of the things I'm most proud of."
Egan also offered insights on why the unique characteristics of the three leagues he oversees have kept them from creating a common brand, on the unique story behind the creation of America's credit union museum, and on a recent charter conversion in the state of Massachusetts. To read more about those, visit www.cujournal.com and search "Egan."
The Mandate Ahead
As he prepares to retire, Egan sees a mandate ahead for credit unions.
"We have to be more aggressive with legislators and regulators; we can't let other dictate this to us," he said. "We have an obligation to do this and I think it's a mandate for all trade associations in the near future. We have to be sustainable or we are all going to slowly erode away."
Frank J. Diekmann can be reached at
