Not for profit, not for charity but for service. This has been the credit union motto for more than 80 years. When credit unions try to explain how they are different from banks and other financial services providers, that is the key—albeit not the sole—defining factor: they're out to make a buck; credit unions aren't.
It's actually one the quickest, easiest ways to explain to someone who's never heard of a credit union what a credit union is and how it's different from a bank. Say "not for profit," and people get it. The problem is, it has helped turn the term "profit" into a bad word in credit union land (even if it does have more than four letters).
But just because credit unions are not for profit doesn't mean that being profitable is anathema to the movement.
On the contrary, if a credit union wants to be able to continue serving its members, it has to make enough money to hire and retain employees, invest in technology and branches—all those pesky little things a CU needs to do in order to serve its members. In other words, CUs had better be profitable.
In fact, the same is true for most charities, as well. They're not bottom-line oriented, but they can't afford to ignore the bottom line, either.
In an annual tradition at Credit Union Journal, this week's special report is dedicated to the bottom line. We talked with consultants, analysts—and credit union executives—asking them to share their insights into some of the latest trends impacting credit unions' bottom lines right now. From challenges to mitigate to opportunities to leverage, these experts discussed their favorite strategies to boost the bottom line.
Chock full of cost-cutting measures, ways to streamline operations and how to squeeze out just a little more black ink, the special report on the bottom line is designed to help credit unions be more efficient and, yes, profitable.
Because credit unions should be member-centric—but it does the member no good if the credit union focuses on the member to the exclusion of the bottom line and winds up dead in the water.
Editor in Chief Lisa Freeman can be reached at
