I received the following from a credit union CEO reacting to recent examples of mega-mergers. The credit union’s market approach is clear:
From the Credit Union’s Website
Why eat at a local restaurant? Why support your local non-profit? Why help out a neighbor? Simple: you care about your community, get better service from people you know, and want to feel good about the way you spend money. At our credit union, you’re a member, an owner, and a participant in a local, not-for-profit financial cooperative. Our cards look pretty awesome, too.
His Comments On Mergers
While I’m saddened by the loss of credit unions in number, I also believe each CU must do what’s right for them. However, because the reasons given for these recent mega-mergers are fairly boilerplate no matter the size, I suspect that $20b won’t be “enough.”
As a CEO of a smaller shop, the thing I find scratchy is the tendency of some larger shops to take an imperialist posture combined with hubris. As they say in parts of the south: You ain’t all that.
During a multi credit union event hosted locally, a rep from a larger shop told one of my star employees, “you know, credit unions your size are going away.”
Size Is Not What Members Seek
The thing is, a credit union at $20b is still a smallish bank. In my market, I have BOA, Wells, Chase, etc… Who cares what size you are – just don’t be a jerk.
I think the big shops need to get over themselves and, quite frankly, some little guys need to quit complaining about how hard things are.
My immigrant grandfather opened a restaurant 75 years ago and it’s still going strong. Business has always been tough! When people use that excuse, I always think that the real problem is a leader who can’t rise to the challenge rather than the challenge is too great. Ego won’t allow a leader to admit they might be the problem.
A Legacy, Not a Payday
Obviously, merger has also become a retirement plan for many…and that stinks. My goal: when I retire, pass the baton to the next gen…I’d rather have a legacy than a fat payday.