By Ray Birch
TAMPA, Fla.—Noting that small credit unions are at an inflection point when it comes to the ability to afford the kinds of technologies members have come to expect, Laida Garica said she still asks a question she raised early in her career: “Why aren’t more small shops collaborating?”
“Throughout the years and talking with other a local CEOs, we have thought that it would be good idea to collaborate with each other—let's say we all share one IT team and so forth. But it never has quite developed that way,” said the CEO of the $612-million floridacentral CU, sharing her concerns about credit unions much smaller than FCCU. “Everybody prefers to kind of do their own things. But I would say to smaller credit unions, if they can collaborate and a couple of them get together and use the same systems, they’d really be able to meet those rising technology demands without having to have an internal team of their own, and all the expenses that are associated with that.”
Garcia, who will retire in January after 45 years within credit unions, has some thoughts on why the kinds of collaboration that is needed isn’t happening within CUs, especially smaller-asset credit unions. As CUToday.info reported, after the well-known Garcia steps away from floridacentral, the credit union will be led by Linh Dang to lead the organization.
“Collaboration, that's been talked about for a long time—credit unions need to collaborate, but they don't do it enough. Why? I've asked the same question for many years,” Garcia said.
Fear of Being Targeted
Garcia believe one reason small credit unions hesitate to collaborate with large CUs is fear the larger CU isn’t just in it for the collaboration.
“I think part of it is they're feeling threatened,” she explained. “If you open your doors to a larger credit union, you may be looked at as a possible merger partner—at least I believe that is what a number of small credit unions believe.”
As CUToday.info has extensively reported, consumers have redefined their definition of excellent service, and now digital delivery has become more important than what has long been a credit union strength, the friendly, smiling face at the branch. But many smaller credit unions are wrestling with the price tag to upgrade their digital delivery channels. Garcia says the answer can be found among those same CUs.
“I've seen it work with some very large credit unions that have collaborated, particularly on technology or human resources,” noted Garcia. “The real avenue for resources for small credit unions are themselves.”
One Area of Potential Savings
While some small credit unions have partnered among themselves and with CUSOs on back-office functions, Garcia believes too few are taking advantage of the potential opportunity.
“They have to feel more comfortable partnering with themselves,” she said. “I think that’s the only way that collaboration would work is if maybe a party, say more leagues, would step in and act as the broker, if you will, to put these collaborations and partnerships together.”
Laida Garcia
Beginning as a Loan Officer
Garcia’s career in credit unions began in 1976, when she started at floridacentral as a loan officer after working a year with a bank.
“My mother was a member of floridacentral and she asked me why I wasn’t a member of a credit union,” Garcia recalled. “I knew nothing about credit unions at the time.”
The soon-to-be-former banker joined her mother’s CU, and soon believed enough in credit unions to become an employee.
“I worked my way up through the ranks,” she said. “My educational background is in mass communication, and back then credit unions didn't have much of a need for marketing. But the CEO at the time wanted better marketing materials and business development talent. That’s how I got hired. I got to be the loan officer, but then I became the communications officer and the loan supervisor. I grew inside that hybrid environment.”
Garcia became CEO at floridacentral in 2009.
“Right at the height of the Great Recession, so that was a challenge in itself,” she said. “Now we have the Great Resignation, the pandemic, inflation, we’re heading toward a recession—I have seen a lot in my career.”
Unique Role on CUNA Board
During her time at floridacentral, Garcia became the first non-CEO to sit on the CUNA board. “I was also the first female non-CEO to be chairman of our state credit union league. I hope that opened the door for others to follow.”
Garcia said she is proud of what floridacentral has achieved during the 45-years she has been an employee.
“I think we've done very well. We have fulfilled our mission to our members—we're here to improve their financial well-being, and we've definitely done that through all of our different products,” Garcia said.
Garcia emphasized she is also proud of helping to change the business culture at floridacentral from one of being “order-takers” to a sales environment.
“I hired a director of sales who was instrumental in helping us establish a sales culture. That has really helped us achieve goals our growth goals and assist more members,” she said.
Much to be Missed
As Garcia prepares to move on to retirement and spend more time with her family and her daughter’s first child, she admits she will miss going into the office.
“I've loved all of the camaraderie we've enjoyed together here at the credit union,” she said. “I will miss all my friends.”