Originally published on CUInsight.com
Why does your credit union exist?
Go ahead and think about it for a moment. I’ll wait.
Is it to provide safe storage and management of your members’ money? To help those in troubled financial situations? Maybe it’s to create a community of similarly-employed citizens.
Whatever your reason, it should matter. If your purpose for existence is just another version of Wells Fargo’s mission, then why even bother? (For reference, this is their vision statement: We want to satisfy our customers’ financial needs and help them succeed financially.)
So what makes your credit union different? This seems to get lost in the day-to-day of marketing pushes, car sales, core conversions, and more. It’s a question only you can answer.
Here’s an idea:
We exist to provide top-of-class financial services, education, while offering a unified voice in support of our members’ best interests.
You probably aim to achieve the first two parts today. Ask yourself: How are your financial services? Would you bank there? Even better, would you encourage friends and family to do so? (Then why aren’t you referring them?!) Financial education is crucial to every member, yet few have the knowledge needed to maximize their savings potential. I’m sure you do what you can to help educate them, right?
And then there’s the last part: “Offering a unified voice in support of our members’ best interests”. This is where it gets fun.
Ask a credit union or industry trade group to support the tax exemption and you get cheers all around. They’ll “hike the hill” 5000 strong to demand “common-sense regulation” that reduces the time and financial burdens on credit unions large and small (but primarily the latter). If you are fighting for survival, then you’re automatically fighting for your members, right?
Not. Even. Close.
I support the tax exemption for credit unions. I also agree treating the vast majority legislatively the same as a national bank is unnecessary. Theresa in compliance cannot possibly provide the same level of, well, anything, that the 200-person team at Bank of America can (and should) offer. Of course, we’re getting sidetracked. I said, “members’ best interests”, not credit unions’. And it’s where we are doing a disservice to 1/3 of Americans.
The next few posts will dive into, issue by issue, areas where credit unions have a responsibility to speak out in support of their members. You’ve already seen my take on Net Neutrality (and my interview in CUtoday; many thanks to them for the focus!). Next up: The allure of Free. Then payday lending. And taxes. With a dash of de-regulation for extra flavor. Because what you don’t have to do can still hurt your members.
Credit unions and their lobbyists love to talk about how they are representing a large portion of America. It’s about time they use their voice to improve peoples’ lives.