What Do You Think They Would Say About Credit Unions Now?

By Frank J. Diekmann

So, what do you think they would say about credit unions now?

You know, the old boys in the starched white shirts, black ties and—in a nod to fashion, pork chop sideburns–who were meeting at the Cockatoo Inn: what would they make of credit unions now if they could borrow the DeLorean and come forward in time?

In 1967, 33 years after that iconic black-and-white photograph was shot at Estes Park, Colo. of the founders of CUNA, no one seems to have thought there was any reason to bring along a camera when a small group of Los Angeles credit union managers met at the Cockatoo Inn in Hawthorne, Calif. (But it was a Kodak Moment nonetheless.)

In the late 1960s, a state charter was the place to be if you were a credit union. And why not? Why would a CU ever need to do business across a state line? Sure, members might travel out of state, which often meant selling some traveler’s checks--and if they ended up needing some sort of help, well, they would just have to call—long distance! (and the treasurer had already made clear the CU would not be accepting the charges).

But there was also an emerging number of credit unions with federal charters who had more on their minds than just the new Sgt. Pepper’s Lonely Hearts Club Band album from the Beatles. These FCUs were feeling a bit lonely themselves; specifically, they felt under-represented in their only choice in trade associations and in Washington. True, federal charters were represented in the capital—but it was the capital of Wisconsin, where CUNA was headquartered. Heck, in 1967, credit unions didn’t travel to Washington—Washington came to Madison, as President Truman just a decade earlier had helped lay the cornerstone for Credit Union House.

What Would They Think?

And that’s how a change began a half-century ago, when the leaders of those FCUs founded a fledgling National Association of Federal Credit Unions (NAFCU). This week, their descendants are meeting 2,563 miles to the Southwest in Honolulu, as the no longer fledgling trade group celebrates its 50^th annual meeting.

What do you imagine the founders of NAFCU would make of credit unions today? I mean after they got over the shock of asset sizes in the billions, FOMs of unimaginable size, and CU CEOs and board members from all over the country traveling all the way Hawaii to stay in $300+-a-night hotel rooms (in 1967, the average pay in the U.S. was 140 bucks a week).

On occasions like this it’s easy to have a little fun and imagine how things have changed over five decades: how risk-based lending isn’t about a loan for a board game; how mobile banking doesn’t mean walking around the branch, and how an indirect loan isn’t a refer-a-friend program.

But such occasions are, more importantly, also opportunities to be contemplative and to connect with the past. What would that group of CU leaders gathered around the table at a hotel that was rumored to have been a site of clandestine meetings between JFK and Marilyn Monroe think of the job credit unions are doing now in staying true to why they were created? In serving members? In making lives better for everyday people?

Let’s hope everyone will put down the Mai Tai and ask themselves.

Would those founders be groovy that the same passion is still every bit as much there? Would you feel proud describing the work you and your CU do if you could meet with them now? (Could you do it without texting?)

Renewing the Vows

It’s common on 50^th wedding anniversaries for couples to renew their vows, and those who have a lifetime of saving and dreaming behind them often celebrate in Hawaii. 

So perhaps a little rekindled romance with the credit union ideals would be in order in Waikiki this week. Sure, everyone is a little (OK, a lot) older, but they’ve brought along the kids, and you want to make sure you’re raising them with the family values.

A lot has changed since 1967. The once-grand Cockatoo Inn and its brass fixtures and red leather glory are gone now. And NAFCU is now really NAFICU, as it’s open to state charters, too, as long as they are federally insured (which no one could have imagined at the inaugural meeting, since federal deposit insurance and the NCUA itself wouldn’t come along for another three years).

NAFCU’s theme this year is “50 Years Strong and Growing Stronger.” And, indeed, the group has shown its strength with numerous accomplishments to its credit over its history, many in Congress and NCUA.

But the real strength lies where it always has, in the reason a group of people comes together to apply for a federal (or state) credit union charter in the first place. To aid people in helping people. To help them pull themselves up. To give folks a shot when at other types of institutions they are more likely to be shot. That was true in 1917, 1967 and today. And it’s what must remain true if credit unions want to remain relevant and critical 50 years from now.

Think 2067 is a long, long way off? I imagine those meeting at the Cockatoo Inn would have thought the exact same thing about 2017.

Frank J. Diekmann is Cooperator in Chief at CUToday.info and can be reached at Frank@CUToday.info or @FrankCUToday.