The frustration of Tom Pinnow is clearly evident in his recent letter to the Credit Union Journal about the struggles of small credit unions. What is more evident however is that his words come from his heart and his deep belief of what credit unions should be. He uses the word "family" to describe the interest his credit union takes in their members and how they provide personal, one-on-one services to their "family" members.
The "where everyone knows your name" financial institution that Tom describes is, unfortunately, something that we are fast losing and soon we may hear people say "do you remember when" in talking about them.
Many financial institutions have become cold and impersonal. It has become a chore to have to go into them and when you do, you can't wait to get out. Credit unions are supposed to be different. Because they are member-owned, and the treatment you receive is expected to be more personal, more caring and an experience you remember in a good way.
Competition, pressure to survive, inability to compete, government regulation, lack of succession planning; the list is endless why a small credit union merges with a larger one or ceases to exist.
It's not that efforts are not being made to help small credit unions. Both the federal regulator and trade organizations have programs geared to help small credit unions navigate through regulations, manage their business, provide technical assistance and consult on on all types of issues.
A commenter on Tom's letter points out that today's younger generation does not recognize credit unions as a source for their financial needs. It is hard to believe but many have never heard the words "credit union," have no idea if one is located in their community and may never take advantage of what a credit union has to offer. I venture to say that a very large part of our population, people of all ages, do not know about credit unions and how membership could help them.
What is the answer for the survival of small credit unions? How can they grow and remain viable? What needs to be done for them to attract younger members? There are probably many credit union people who would offer answers to those questions. And their suggestions may be a good start.
But unless those suggestions are put into practice and adopted by the industry as a goal to achieve, the problems small credit unions face will continue and we will unfortunately lose those treasured institutions and talk about them as something that once was.
And that loss is one that will never be replaced.
Michael E. Fryzel is an attorney and consultant to the financial services industry with offices in Chicago. He is a former NCUA chairman and board member. He can be reached at
