By Tom Pinnow
Why don’t you just merge?
This is a question that many small credit unions have been asked. We are under $25 million in assets and, like many credit unions our size, it is a tough environment. We don’t have economies of scale on just about every front and we have limited resources. Valuable time needed to manage our credit union is wasted on the egregious onslaught of new regulations. So, why not merge and end the struggle? Simply put: our members.
Large credit unions take good care of their members, but we like to think that they can’t serve their members like we do. The members who visit our one location see the president every day when they come in. This is the plus of a small credit union. If a member has an issue they can go right to the top immediately. They can talk to the people who actually make the decisions and set the policy. Many of our members also know our board members on a personal level.
Members have a more personal connection at a small credit union. They can actually “feel” their ownership, because they have more influence than they would with a $500-million or a $ 1-billion credit union. This is why small credit unions are so important to its members and the credit union movement.
Yes, Would Be Easier, But...
Yes, merging would be a much easier strategy for management and the regulators, but is it in the best interests of our members? We think not.
It is my ardent hope that large credit unions, our trade associations and our elected officials also understand why merging is not in our members’ best interest. Rather than accepting the current trend of mergers as the solution, why not come up with other strategies to help small credit unions survive? Is the credit union movement really committed to the survival of credit unions under $50 million?
I have some ideas, but it will take a movement, commitment and people much smarter than me to pursue a solution. Do large credit unions, our trade associations, and our elected officials think it is worth it? If they don’t, then maybe small credit unions should “just merge.” That would be very sad.
Tom Pinnow is President of County City Credit Union in Jefferson, Wis.