PayThink

I knocked twice, positive I had heard some shuffling behind the door. Still no answer. I thought about checking the address, but had been here a half-dozen times before and was positive I was in the right place. 1776 Duke Street? Yep. The name of the proprietor carved in the stone façade facing the street: National Credit Union Administration? Yep, this was the place.

As members file into Guadalupe Credit Union’s 60th annual meeting it feels like a joyous family reunion. The setting is the school cafeteria at Santa Maria de la Paz Catholic Community Church, just 50 yards behind the church itself. It is late February immediately following 12 o’clock mass with the temperature hovering at 47 degrees. Whole families are intermingling; hugging, laughing and greeting each other. A Mariachi band plays as children run with balloons and enjoy punch and snacks, anticipating the New Mexico style buffet lunch with amazing homemade contributions.

As NCUA considers adding examiners nationally as well as within Region 5 (Credit Union Journal, March 28), the California Credit Union League welcomes the agency’s proactive approach to helping credit unions make important financial decisions during the current economic downturn.

An interesting question to ponder now that a state court has ruled that a credit union’s bylaws exist for a reason and boards cannot arbitrarily decide whether or not to follow them, is just how certain boards will now react.

This is the second part of a three-part series examining the board function at a CU.

In their classic book, “The Discipline of Market Leaders,” Treacy & Wiersema discuss three marketplace differentiators: operational excellence, product leadership and customer intimacy. Product leadership is difficult to achieve in a highly commoditized marketplace, and operationally, few credit unions have much fat to cut. That leaves customer intimacy as a differentiator and driver of growth.

I just read Frank Diekmann’s article, “Three Little Letters, GAC, Are Demanding Three More: ROI,” (CU Journal, March 10), and would like to offer my response. I agree with several of Mr. Diekmann’s points, and found his assumptions on the collective expenditures of CU folks interesting. Those are some big dollars, which reflect how much economic stimulus can be created by having a significant CU gathering.

Mark Meyer of the Filene Research Institute got his first taste that the speaker he had invited to address a breakfast hosted by the Institute would talk about what she darn-well pleased when he attempted to suggest some topics. The invited speaker made it clear: you won’t “censor me.”

I’d like to comment on the latest events taking place due to the Fed’s actions on interest rates, or the economy, whichever is easier to handle and write about. Everybody seems to have been waiting for this as an opportunity to improve profitability at their shop. Why not take this as an opportunity to improve your position in the market place, just as real estate lending CUSOs are pushing for in the lending arena?

Do the right thing. This is an elementary concept, yet many businesses have deviated from this basic principal. We in the credit union community need to bring this elementary concept back into our consciousness and become ethical leaders. The recent experience with sub-prime lenders and predatory lending demonstrates this need.