RALEIGH, N.C.—After moving to disaffiliate from CUNA in 2013, SECU, the second-largest credit union in the country, has re-affiliated with the national trade association.
SECU President and CEO Jim Blaine confirmed to CUToday.info that CUNA allowing membership choice led to the decision to return.
SECU’s decision to disaffiliate from both the Carolinas Credit Union League and CUNA has been credited by many with putting into motion a task force that was created to examine the state/national trade group structure, and a decision by CUNA to put the issue to a vote.
In March, CUNA’s affiliated credit unions voted overwhelmingly in favor of a new membership model that gives CUs the option of belonging to the traditional CUNA/league model, or individually to either CUNA or their respective league.
Not allowing membership choice, and not considering another model besides dual membership, was the key reason the $32-billion SECU disaffiliated from the Carolinas CU League and CUNA in 2013.
“Our goal has always been to have direct access to our national trade association,” said Blaine. “And by the way, NAFCU has that model and it works very well.”
In 2013, with the number of credit unions in the state and across the country continuing to shrink, Blaine said SECU felt it was best for the credit union to go “without a filter” at the state level, “not saying that the filter was bad at the league.”
He explained that more than two years ago SECU asked the league and CUNA to conduct a pilot allowing choice.
“When that plan was not met with any favor, we chose to drop out,” Blaine explained.
Currently SECU has only rejoined CUNA, but Blaine said he has not ruled out rejoining the state league.
Blaine said that in the two-plus years away from CUNA there have been conversations between the credit union and the national trade association.
“Now that CUNA’s membership has overwhelmingly approved membership choice, Mr. (Jim) Nussle asked to come talk to us and we thought it was appropriate that we get back on the bus,” said Blaine.
Nussle, CUNA’s president and CEO, met with Blaine Wednesday, accompanied by Marcus Smith, CEO of Local Government FCU in Raleigh, N.C., and a member of the CUNA board.
“We never had a dispute with CUNA other than we would like to better understand how their priorities are set, what are the discussions on all sides . . . and being a participant in all that. Hopefully direct access will give us that,” said Blaine.
Blaine acknowledged that the move by CUNA to revise its bylaws has been a “tortuous process” for the trade association, and that it is difficult for any organization to change from inside.
“It was two years of strong debate, which I think was positive,” said Blaine. “I think credit unions need to do more of that—talk openly about how life is and how things are.”
When SECU announced it was disaffiliating, the move rekindled credit union debate over the value of dual membership.
“I think (our disaffiliation) helped force the discussion, so in that sense we may have been helpful,” said Blaine, noting that many leagues came out in favor of choice in advance of CUNA’s final decision. “But the world of credit unions is changing, and we all have to get better at talking to each other, and at fighting and arguing.”
Blaine explained that SECU has not made a decision about rejoining the Carolinas CU League, and that the credit union has been speaking with the state association. But any decision about rejoining will have to wait until a clearer picture emerges nationally regarding league policies and how state leagues will be structured, which Blaine expects will come later this year. Blaine noted that there have been discussions regarding leagues allowing membership from CUs across the country.
“That is a big change. We would like to clearly understand the choices going forward,” said Blaine, adding there is a growing number of CUs that have a presence in several states, but that SECU is not one of them. “We have had feelers from some multi-state leagues as to whether we would be interested in participating.”
When SECU Wednesday made the decision to rejoin CUNA, Nussle said he told Blaine: “Welcome back – we’re glad to have your voice and advocacy.”
Blaine said SECU yesterday handed CUNA a letter requesting to rejoin at CUNA’s “earliest convenience. Mr. Nussle said he thinks ‘CUNA will approve that.’ So I expect we may be back as a member of CUNA possibly (on Thursday).”