The Federal Credit Union March-April 2014 - (Page 4)
The Challenges of Being a Credit Union CEO
By Mike Parsons
f you're a credit union CEO, you
don't need to be reminded of the
importance of excellent member
service, retaining a good staff and
staying on top of technology and security. They are all intertwined.
Linda Sweet, president and CEO of Big
Valley Federal Credit Union, said her
credit union has had to outsource many of
its mortgages because it can't afford a loan
officer plus added compliance costs under
new mortgage rules.
Even if you are doing all of the above,
you have so much more to consider to
ensure your credit union's success; the
challenges you face are numerous. Here's
a look at how some credit unions are
Regulatory Burden Costs
Last year, Hawaii State Federal Credit
Union was authorized by NCUA to add
new businesses and groups to its FOM -
previously limited to state, city and county
employees. Andrew Rosen, the credit
union's president, told the Hawaii Reporter,
"We take pride in being a trusted financial
partner for members throughout their life
events. This charter expansion offers us the
opportunity to provide practical financial
solutions to even more people in the state."
Since the Dodd-Frank Act, about 825
federally insured credit unions have
closed. In a NAFCU research survey of
its members, 92.9 percent of respondents
said they have seen regulatory burden
grow since 2010, and 88.1 percent have
seen their compliance costs increase.
This challenge affects all of us. In a
December hearing before Congress,
While serving a defined field of membership can allow a credit union to be better
in tune with its members' needs, some
credit unions have benefited from field of
membership (FOM) expansion.
Your staff is the face of your credit union.
How they are trained, and how they are
treated, will quickly be revealed to your
members at every interaction. Desert
Schools Federal Credit Union in Phoenix
is committed to its employees and knows
the value of a cohesive work environment.
The credit union measures employee
satisfaction and keeps response times brief
when employee issues or concerns arise. It
is also deeply committed to its employees'
education and growth. It offers tuition
reimbursement and online tutorials and
classes, and it pays for training sessions.
Seeking out a partnership can be overwhelming, but some credit unions find
that joining forces allows them to run
more effectively and economically.
Shared branching is a case in point.
Infinity Federal Credit Union in Portland,
Maine, has joined with other Maine credit
unions to provide greater convenience
and service to its members. By partnering
with other credit unions, Infinity FCU's
members can conduct personal transactions in other partnering branches, just
as they can at their own branch.
Some of the above examples may
resonate with your credit union, and if
you're attending NAFCU's CEOs and
Senior Executives Conference this April
in Charleston, S.C., you'll get a chance to
discuss them with your peers.
Young adults, from 18 to 34 years old,
have a penchant for online products
Navy Federal Credit Union is a leader in
this arena. The credit union has had great
success with promotional campaigns for
members on Facebook, using a Facebook
app that allows members to upload personal videos or photos of their cars and
pets to YouTube along with their financial stories. You may want to consider
creating a presence on Facebook, Twitter,
YouTube, Instagram and LinkedIn for
your credit union.
Training and Retaining
Partnering With Others
Attracting Young Adults
and social media. Some credit unions have
drawn this group's attention by establishing
their own online presence.
Whether you attend or not, know that
whatever challenges you're facing now as
a CEO, you are not alone.
THE FEDERAL CREDIT UNION MARCH-APRIL 2014
Table of Contents for the Digital Edition of The Federal Credit Union March-April 2014
Voices & Opinions
From the Chair
100 Ways to Grow
Getting to Know...
Inside NAFCU Services
From the President's Desk
The Federal Credit Union March-April 2014