Author: Chip Filson

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The Vital Difference: Member Voting for Directors

Member-owner governance is primarily exercised through the annual election of directors to the Board.  One person, one vote.

The problem is this “democracy” by members is too infrequently practiced to have impact.  In most credit unions there is no election contest-just approval by acclamation.

Below is an excerpt from Frontwave Credit Union’s monthly newsletter about this year’s board election.  Six nominees for three seats.  A month long voting period.  Votes can be cast by ballot, on line or in person at any of the 13 branches in a special ten-day span.

The candidates’ biographies and statements of interest are linked to the voting information.

The process is transparent, widely communicated, and easy for members to exercise over the month long voting period.

A Center of Public Attention

What makes this very transparent contest even more remarkable is that Frontwave has been at the center of attacks for its courtesy pay (overdraft fees).

It began with a March 2024 KPBS investigative report: Frontwave Creit Union reaps millions in fees when young marines run out of money.  Senator Elizabeth Warren with senators on both sides continued the attacks.

Prior to these assaults, Frontwave was the object of a class action suit several years earlier for its overdraft practices.  The suit was settled in October 2024.

During this public criticism of Frontwave, the CEO Bill Birnie engaged in frequent conversations with the media and critics.  He responded to the issues with why the credit union believed this was an appropriate practice.

This year’s election is taking place against this background of debate over fees. The members have their say.  Incumbent directors and new nominees can put their views to the owners.  That is what member governance means.

Just as important, when the credit union seeks  member participation for supporting special needs or contacting a political representative, the leadership has  established the routine  of member participation.

Voting is the ultimate test of democracy. It creates an environment of trust and accountability.  It is an essential part of cooperative design, but much underutilized and unappreciated.

 

Shape the Future of Frontwave Credit Union

Member,

Your voice matters! Voting in the 2025 Board of Directors Election is your opportunity to help guide Frontwave’s future. With three open positions on the Board and six candidates running, it’s time to get involved.

We’ve partnered with Survey & Ballot Systems (SBS) to ensure a secure and efficient election. Ballots will be distributed to eligible members starting in February, and the election results will be announced at the Annual Meeting of the Membership on March 26.

To read the latest Candidate Statements, click below!

Election Dates: February 20 – March 20

Eligibility: Active members as of December 31, 2024 (primary membership with at least $50 on deposit or an active loan).*

How to Vote:

  • Electronic Ballot: Sent via email by February 20.
  • Mail-in Ballot: Request by February 24; return by March 15.
  • In-Person Voting: Available at all 13 branches from March 3–15.

We’ll share more details about the voting process soon. In the meantime, meet the 6 candidates running to represent you and get ready to make your voice heard!

Dream Big. We Got You.

Frontwave Credit Union
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Showing the Difference with Deeds

Each month several CEO’s send me their monthly  staff updates.  These discuss the latest financial results, status of key projects, employee information, milestones and external event engagements.

These provide valuable local examples in a movement often described by the latest financial numbers, the next big merger (or bank buy) or a grand new marketing partnership with a professional sports team.

Despite radically different asset sizes, these reports share one common opening, retelling a member service story or two.  The CEO’s use these to demonstrate the culture they want the credit union to uphold. Here is an event triggered by a rollover IRA request.

Demonstrating our Purpose

Recently, Carrie visited our member center seeking help to transfer an IRA from another bank. She appeared frazzled and unsure about the steps she needed to take. Through patience, empathy, and active listening, we began to uncover the deeper reasons behind her unease.

She shared that her husband had passed away unexpectedly in his sleep the day after Father’s Day. He had not been sick. His death had blindsided their family.

Left to navigate the aftermath, she was overwhelmed by the financial responsibilities suddenly resting on her shoulders. She needed to transfer her husband’s IRA, open a new rollover account to avoid penalties, and manage the yearend timelines and logistics — all while grappling with profound grief.

As she spoke, it was clear she was struggling. The holidays had been particularly painful for her children. With the new year just a few days away, she felt the weight of 2024 closing and the uncertainties of 2025 looming ahead.

Jackie and her colleague, Becky, guided Carrie through every step of the process.  They explained  the IRA transfer, the required paperwork, and  timing to ensure everything was completed smoothly.

But more than that, they gave her space to share her story, her fears, and her heartache. They listened as she reflected on her loss and the daunting responsibility of building a future for her family without her best friend and soulmate by her side.

Before she left, they gave her their contact information, assuring her that she could reach out anytime she felt overwhelmed.  Jackie committed to following up with her to confirm  everything was in place and to check on her progress.

When Carrie walked out of the member center, she carried herself differently—less burdened, more focused.  She deeply appreciated all the support, knowing she was not alone in navigating these challenges.  She felt she had a team behind her ready to help.

This experience is a reminder of the profound impact we can have when we combine our financial expertise with genuine care and compassion.  It is moments like these that underscore the importance of what we do: being there for our members as trusted partners during life’s most difficult transitions.   Thank you Jackie and Becky for this great effort demonstrating our purpose. 

My Takeaway

As future options of the credit unions system come under debate In DC with the new administration, how do we present the credit union difference?   I believe it is with stories about our member-owner mission.  It is the difference we make in members’ lives that make cooperatives special.

PS:  In case you assume this must be a smaller credit union, the CEO leads a $10 billion coop serving over 500,000 members.

 

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Opinions On Scale and the Year Ahead

From banking consultant John Maxwell’s blog:

Now, of course, one of the dirtiest secrets in finance is that anyone can grow a bank. That’s the power of infinite demand. The bigger challenge is creating shareholder value. And that, my friends, tends to be inversely correlated to a bank’s growth. Remember that the next time a purported expert tells you that, “Scale is key.”

From a January 17, 2025 post by CNBC  financial analyst Kelly Evans:

But a friend of mine who works in the investment banking business says his firm has the biggest backlog of merger deals heading into this year that they’ve ever had. . .

. . .one area that could get very busy is on the banking front. Having 4,500 or so different banks in this country may not be sustainable, especially when 77% of them have less than a billion dollars in assets, per Raymond James. These deals may be on the smaller side and not garner big headlines; we’ve already seen small acquisitions in Idaho and Texas this week that have generally flown under the radar. 

Indeed the mid-sized banks–and mid-sized companies in general–could see the biggest wave of activity. The typical mid-sized bank saw its share price jump 10% in the weeks after the election, per Barclays. There used to be 80 bank deals a year under the first Trump administration, they note, versus just 30 a year under Biden. 

What makes market work is differing opinions.  Going forward I will review some of the largest mergers in the past three years to see if Maxwell’s point is born out.  Or is member value increased?

 

 

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Deportees: When We Need to Listen to a Song

All institutions have a purpose.  Their reason for being is to succeed at something:  making money, doing  good for others, or enjoying our chosen life style.

Caring for the vulnerable is an often overlooked calling.

Some organizations do serve  society’s neglected and forgotten.  At points in our cooperative past, credit unions responded to those left behind by creating communities of self-help.

Who speaks for those without a voice? Sometimes that role falls to a folk songwriter.

In 1948 Woody Guthrie wrote what became the folk song Deportee.  While the specifics that prompted his lyrics are different from  today’s, those persons taken away are  still treated the same.

In the poem, Guthrie assigned symbolic identities  to those rounded up and  put on a plane, only to die: “Goodbye to my Juan, goodbye Rosalita; adiós, mis amigos, Jesús y María…”[6] 

Here is the song using Guthries’ words by the Kingston Trio in the late 1950’s.

(https://www.youtube.com/watch?v=L2tUJZWfAO8)

 

The Message Returns in 2013

Credit unions are founded on nurturing  relationships.  Often these individuals and groups were viewed as unimportant people by those in authority.

Immigrants don’t just perform essential tasks that others shun.  Their presence has helped present the United States as a unique destination to the vulnerable across the globe. Today however, these recent arrivals have become targets of cacophonous cruelty by leaders in our federal government.

How will self-help communities founded on the value of each person’s dignity react?  Can credit unions be seen as pillars of their communities when they stay silent as they are torn apart?  Aren’t co-op pillars more than balance sheets of assets?

Here is the same music from 2013 during another deportation crackdown:

(https://www.youtube.com/watch?v=VR_AC0E0rgA)

This administration’s inhuman deportation blitz is captured in  Guthrie’s prophetic words: “You won’t  have a name when you ride the big airplane, all they will call you is deportees.”

No names.  Denying the identity of others is the opposite of cooperative and human values.  It strikes at the soul of America.  If you can’t raise your voice, at least play the music so others might hear the cry.

 

 

 

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The Art of a Leadership Transition in Government

The country is going through the political throes and formal processes of a complete changeover  of executive and political leadership in DC.  This includes NCUA.

In late 1981 Ed Callahan had been confirmed as the next NCUA Chair. Before he had been formally sworn into the job, I asked what would be his toughest challenge would be.

Ed had been leading the Illinois Department of Financial Institutions for almost six years.  In the Department, the credit union division oversaw  1,200 state charters.  During this time the Illinois system had navigated multiple market and legislative changes implementing deregulation.

I assumed his response to my question would be about greater scale of responsibility, from one to 50 states and from 1,200 credit unions to 16,000; or, the increased size of the agency budget and staff; or, the more complex institutional and political environment in DC.  This involved Senate and House hearings and NCUA membership of interagency committees such as the FFIEC or DIDC.

Ed’s Number One Challenge

His answer mentioned  none of the above areas.   His biggest challenge he said would be  communication.   That is to explain the direction he believed the NCUA and credit unions should undertake and why.

Callahan’s track record and leadership of Illinois cooperatives  was described as deregulation.  At a dinner celebrating his appointment before  going to Wasington, the Illinois Credit Union League presented Ed with a framed sign  he then hung in the Chairman’s NCUA office.  It read:

 Leadership of a Transition

However, what would deregulation look like on a national scale and all at once?

The first effort communicating this approach was a videotaped panel discussion arranged by the Illinois Credit Union League on January 8th, 1982.  The title:  Deregulation, What Does it Mean?

 

(https://www.youtube.com/watch?v=S09QkeNYgBU&t=4s)

The video is 24 minutes. This  conversation was the beginning of a dialogue to change the entire direction of the prior 50 years of federal credit union regulatory practice.

Several factors in this video are noteworthy.  It was a joint NCUA-movement project. The Illinois League sponsored and produced the video.  The panel included Jim Barr, the head of CUNA’s Washington office as moderator, three credit union CEO’s, and Chairman Callahan and NCUA Executive Director Bucky Sebastian.

The format is Q&A.  Hard questions are asked. The dialogue is authentic due to the openness of the conversion.

The most important moment may be at  minute 16.  A CEO responds to Callahan’s deregulation approach  by asking how much influence will credit unions really have in deciding this policy?   Ed’s reply from the February 1982 NCUA Review, which printed a transcript of the video:

“Even though I think credit unions want deregulation, I am more committed to the fact that we have to respond to their needs. If they don’t want deregulation, we will see that it doesn’t happen.”

A second question by Jim Barr is simply.  Why now?  Go to minute 18 for the response.

This video was the first of 20 NCUA created during  Callahan’s three and one half year tenure. It was  one of many efforts to inform credit unions and the public about NCUA actions.  To succeed, this approach required a leader who was accessible, informed  and willing to listen to the industry.

The result was a tenure characterized by joint NCUA-industry efforts that repositioned the system for an entirely new era of market competition.

This video is one example of how the regulator and the industry collaborated so that the movement could thrive well into the future.

Communication went to all constituencies.  These included the public and credit union press, the members, credit union leaders and other agencies of federal and state government,  The outcome included some of the most consequential  cooperative system innovations since the first credit union charter in 1909.

Leadership is never easy, especially in public positions.  Developing and seeing through a successful  tenure begins with the very first communication.  In this transition. that began with a video that still provides meaningful lessons decades later.

 

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“Stopping by Woods on a Snowy Evening”

by Robert Frost

Whose woods these are I think I know.
His house is in the village though;
He will not see me stopping here
To watch his woods fill up with snow.

My little horse must think it queer
To stop without a farmhouse near
Between the woods and frozen lake
The darkest evening of the year.

He gives his harness bells a shake
To ask if there is some mistake.
The only other sound’s the sweep
Of easy wind and downy flake.

The woods are lovely, dark and deep,
But I have promises to keep,
And miles to go before I sleep,
And miles to go before I sleep.

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How US Aid Suspension Affects Ukraine

Far beyond the credit union world of CDFI and other grant suspensions, the US halt in humanitarian assistance to Ukraine affects multiple organizations essential for a free democracy.
This is at a time of total war in the country.   The event underscores the importance of private organizations and individual support when government assistance is uncertain.
From the Counteroffensive analysis: Among those affected by the Trump-Rubio freeze on foreign aid are those serving civil society and the media.

Civil Society

  • Veteran Hub: “Veteran Hub in the city of Vinnytsia [that helps vets find] work, psychological support or legal advice for their postcombat lives… forced to tell 31 employees that they were no longer getting paid.”
  • Vilnyi Vybir (Free Choice): “We are putting one of our projects on indefinite hold. The project helped to ensure the right of Ukrainian veterans, their families, and families of Ukraine’s defenders to access quality psychological support services.”
  • Dostupno UA, which focuses on accessibility in Ukraine: “We have to stop developing strategic documents for five communities. We are also stopping architectural accessibility audits and consultations on implementing changes in communities. Training sessions for Ukrzaliznytsia [railway operator] on correct interaction and assistance to people with disabilities are on hold. We cannot continue to provide recommendations for improving accessibility at railway stations.”
  • School for Policy Analysis NaUKMA is a think tank focused on Ukraine’s role in the world, and for the reintegration of Ukraine’s occupied territories. “Yesterday, we received a letter stating that all activities related to projects funded by USAID must be put on hold. Even those activities where payments have already been made… We have to search, transfer, and reallocate funds from other sources to ensure that we can guarantee our employees some form of salary… This uncertainty is the main issue. There are no guarantees that in a month or even in three months, everything will return to how it was.”

Organizations that have previously received U.S. funding but have not commented on the funding freeze:

  • Rehab4U created a rehabilitation system to provide Ukrainians with access to quality care and support services directly in their communities.
  • Hoverla program assists Ukraine in creating a sound legal framework for local self-government that will ensure a clear division of powers and responsibilities between local authorities and central government.
  • Healthlink launched in 2017, focused on accelerating the process of overcoming the HIV epidemic in Ukraine through quick and safe testing for HIV, and the start of treatment.
  • National Democratic Institute has been supporting Ukraine’s democratic development since the first days of its independence.
  • Safe, Affordable, Effective Medicines for Ukrainians aims to support Ukraine in reforming the healthcare system and ensuring widespread access to affordable and quality medicines.

Ukrainian Media Affected

Members of the Ukrainian press — which differentiates itself from Russia’s by being free to write about the war, investigate matters of public interest, and challenge governmental authorities — are devastated by the development.

“This has affected the entire market, because even those who did not have [U.S.-funded] programs will now face more competition in the market,” said Victor Pichuhin, development director at Nakypilo, a Kharkiv-based media outlet.

Another news organization, which operates just 60 km from the border with Russia, had a grant for writing about reconstruction halted.

“Our website received a dreaded letter about the suspension of funding. The grant wasn’t large — 48,000 UAH ($1,130 USD) — but we were counting on it. It’s very disappointing, but I plan to continue working within this project,” Viktoriia Horshkova, editor of the ShostkaNews.City told The Counteroffensive. She would have spent the funds on salaries: “It’s just about keeping people in the profession.”

Here are some other news outlets affected:

  • BIHUS.INFO, an investigative journalism organization and a Counteroffensive partner: “I plan to streamline our activities, cut all non-critical expenses, and hold out as long as possible without layoffs. I have had and continue to have the support of the public here,” founder Denys Bihus told The Counteroffensive, pointing out that many of their investigative projects were not USAID funded. “There will be changes, it will be more challenging. But globally we will not stop working ‘tomorrow.’” Their Patreon is here.
  • Hromadske: “Some of the projects we implement thanks to grants are temporarily suspended.”
  • Ukrainer: “[R]ecently all American humanitarian foreign aid to Ukraine has stopped, and Ukrainer’s major documentary projects were 80 percent dependent on this funding,” the organization stated.
  • Communication Analysis Team ‘CAT-UA, which combats Russian disinformation: “Now that USAID funding has ended, we are looking for new opportunities for cooperation, including with European partners or NATO. They might be interested in picking up the baton in the United States, especially as it relates to their information security,” said analyst Yevhen Luzan.
  • Cukr, which covers the Ukrainian city of Sumy:“Essentially, this suspension has now deprived us of 60% of the funding that was planned for this year… As of today, the situation is undoubtedly critical for us,” said CEO Dmytro Tischenko. “Overall, we remain optimistic. However, we have had to temporarily pause some projects.”
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Who Tells the Credit Union Story?  What Story?

The changes set in motion by Trump’s presidential transition are putting credit union’s public reputation to the fore. The administration’s  executive appointments promise reviews of previous assumptions about many areas of public policy.

All interest groups are  jockeying for influence to either protect the status quo or gain a new advantage.

Credit unions lobbyists and ICBA are already fighting over whether credit union’s federal tax exemption should be examined.  The exemption is an important issue. But how is that topic framed for public understanding and the credit union story told?

Should the credit union legislative strategy be to defend the status quo or to propose an agenda to expand the singular mission of credit unions?

A Wonderful Life Story

During the holiday season the film It’s a Wonderful Life is replayed over and over.  It captures the spirit of a community when asked to support their local thrift.  As summarized in a Marketplace article, the movie’s setup is straight forward and familiar to anyone in 1947 who lived through the 1930’s depression era’s banking crises:

George and Mary Bailey are about to leave Bedford Falls for their honeymoon when the unthinkable happens. Their taxi driver points out an apparent “bank run” at the Bailey Bros. Building & Loan Association. Trouble is, the building and loan isn’t a bank. To keep it afloat, George has to convince his friends and neighbors to withdraw only what they need to get by — then pays them out of his own pocket. So much for that honeymoon. 

The rest of this Marketplace article is a succinct history of the S&L industry, how it differed from banks, and its demise as a separate financial segment in the 1980’s.

The article then asks what institutions today are filling the role of the Bailey Bothers for their  communities.  I expected to find a credit union example or two in this follow on “encore.”  Instead Marketplace host David Branchicco  reprints a podcast interview introduced as follows:

While buildings and loans are all but gone nowadays, the concept of community-driven finance is not. In New York City, one such institution is Carver Federal Savings Bank, which is designated as a Community Development Financial Institution and a Minority Depository Institution by the federal government. The bank, formed in the 1940s by members of some of the city’s predominantly Black neighborhoods, is headquartered in Harlem and says it seeks to help develop traditionally underserved communities. 

The interview with Carver Federal Savings Bank CEO Michael Pugh discusses his focus.  He states  80 cents of every deposit dollar is reinvested in the community.   Other points Pugh makes in the interview include:

I think the unique proposition for us is that because we are for-profit, but we have this mission component, it allows us to continue thinking on both sides of our brain, being mentally ambidextrous, if you will, and considering the fact of mission and margin in every decision that we make.

Because we’re hyperlocal, our colleagues live in the communities that we serve. We believe that those personal relationships and the access to us really helps to significantly reduce the risks. 

Customers within our core market that choose to bank with us really understand the mission and what we’re trying to do. . . 

Where are the Credit Union Examples? 

This Marketplace interview  positions this for-profit CDFI designated bank as today’s successor of the  community spirited leadership portrayed in the Wonderful Life movie.

Yet there is nothing Carver FSB  is doing that hundreds if not thousands of credit unions do as well or better.  Yet that was not the example profiled.

Credit unions will define their public reputation or let others do it for them.   Coops are in a moment when major credit unions advertise during national TV sporting events, rename stadiums with their brands and invest members’ capital to buy out bank shareholders. These business initiatives are helping propel the issue of whether credit union’s regulatory advantages should appear on Congress’ agenda.

It is not sufficient to just oppose and defend the status quo, letting opponents framie the topic. Rather the response must be a compelling message about the  uniquely valuable contribution credit unions make for their members day in and out.

When credit unions present their public personas like most other financial providers, the mission component is omitted.  Without this message, the member-owned model can be presented as just another consumer option.

It is the mission that warranted the tax exemption from day one.  Isn’t that the reason to sustain the cooperative difference now?

Here is a long-30 minute example of the story credit unions should be telling. It is about economic warriors for their community,  The Barber of Little Rock  is a  video by New Yorker magazine.  This community CDFI lender received a credit union charter two years ago.

(https://www.youtube.com/watch?v=1amOPUn49aM&t=14s)

Or this example from credit unions.com. A Helping Hand for the Homeless.

 

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Getting After It-The Art of Leadership in Transition

Authority attracts followers.   The power of a position is a reality whether that role is CEO of a credit union, a company, a regulatory agency or an elected official including the President of the United States.

People and the public have an instinctive respect for those in authority.  But the process of validating one’s leadership is different for those in elected versus appointed positions.  For appointed roles, there is a presumption of industry expertise or other skill that warrants the responsibility.   The first steps matter.

Getting After It

Whichever path to leadership most will  act quickly to affirm their new authority, sometimes dramatically. It both enhances the role and the perception of being in charge.

President Trump claims an electoral mandate “landslide.” In just one week he has issued dozens of executive orders, traveled widely across country, spoken to an international conference all in a very deliberate campaign to show there is new Sheriff in town.  Getting after his agenda in a very public and energetic way, enhances Trump’s claims and intent to exercise his vision for the country.

NCUA Board Leadership

This impulse to demonstrate  newly awarded executive power is also practiced by incoming NCUA board chairmen. This is especially the case when board appointees have little or no previous relationships with credit unions.

In February 2021 shortly after appointed chair by President Biden, Todd Harper announced his promotion in a Commander’s Call address to the Defense Credit Union Council.

As the COVID-19 pandemic rages on, we must smartly, pragmatically, and expeditiously address the economic fallout within the credit union system. To that end, when I first became Chairman, I issued my Commander’s Call to the agency.” 

Time and again Harper used the imminent  threat of “economic fallout” during his leadership independent of the industry’s performance and or critical mission issues.

In this same tradition, several days after being appointed Chairman Kyle Hauptman published his eight priorities in a press release.  Many read like summaries from prior board meeting statements.  Like Harper, he wanted to put his views out immediately.

These initial pronouncements were an assumed first step in asserting the authority of an appointed versus elected position in government.  NCUA chair’s will routinely reference a  restatement of safety and soundness oversight.  Or in some cases an adaptation of the Administration’s governing priorities.

In Hauptman’s new role an important question will be how Trump’s priorities for the federal bureaucracy shape his administration.  This is especially true for personnel policies and appointments, agency spending and regulatory and rules review. Will he assert NCUA’s independent agency status or try to implement Trump’s efforts to reform what the president calls the deep state?

The Most Critical Agenda Issue

While these opening statements are part of the ritual when appointed to NCUA leadership, the most important question that all chairs must answer is, In whose interest will they serve?

Will it be incoming administrations?  The agency staff? Or the needs of credit union member-owners and their communities?   Each constituency wlll have its special claims and interests.

When NCUA leaders arrive without a track record of working within the credit union system, the assertion of agency priorities can easily overlook the most important issues the industry faces.  It is easy to repeat the regulatory mantra of safety and soundness without having to explain what that means.  For example, from 2007-2024 the losses to the NCUSIF have averaged less than 1 basis point per year.  So what are the underlying performance issues?

The Credit Union Way for Developing a Relevant Agenda

I believe the most important priority for NCUA leadership should focus on the credit union member-owners.   “It’s the member, stupid” is how one prior leader explained the challenge.  But how does one put members first?

The answer lies at the heart of the cooperative model.  Leaders within the credit union system must talk with and listen to credit unions.  For a relevant regulatory agenda, NCUA and credit unions should be co-creators for  setting the priorities to enhance the mission of the cooperative system.  And the well-being of its owners.

Not all credit union decisions involve a regulatory issue.  But credit unions need to recognize individual actions can have system wide consequences on the reputation and public support for their special status in financial markets.

Just as Hauptman has drawn up his initial talking points, so too are credit unions, or their lobbyists, asserting their priorities: protecting interchange fees, the tax exemption and reducing over-regulation.

But are these the primary issues that should form a collaborative agenda for the next four years?   How do credit unions balance their increasing financial stature with the absence of any effective member owner governance?

Is the growing mergers of sound credit unions and removal of local roots in the long term interests of the members?   What is credit unions unique responsibility, if any, in addressing the needs of individuals left behind or the macro issues such as the national shortage of affordable housing?

Ultimately an effective leadership agenda is a collaborative process.  No institution has all the answers. Listening to competing agendas and reaching a consensus is the art of political compromise.

Some “leaders” will want to avoid this task preferring to assert the power of their appointed or earned positions.  Getting after it  may work in the short run.  Americans respect authority implied by the rule of law.   But it is not a formula for lasting change as we see the current approach of a new administration just overturning the priorities of the former.

Credit unions and the regulator are at their most effective when each uses their special skills and experiences to work cooperatively furthering the best interests of members, not a partisan agenda.

Here is an example of how an NCUA board and credit unions responded to the issue of the movement’s federal tax exemption in a prior administration transition.

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The Unmatchable Competitive Advantage

Recently  legal counsel  Henry Meier posted an article outlining his reasons for the decline of personal customer service in many retail organizations. His title The Demise of Customer Service and What It Means for Your Credit Union is a thoughtful analysis.

But  what does effective customer service look like?  Is  it just a process of smiling and using the member’s name when they enter the credit union?  Following are examples of experiences these members will never forget.  They were included in the CEO’s monthly report to staff.

An Impact Maker

Destiny referred two members to our partners at Trinity Debt Management. Trinity specializes in negotiating with credit card companies (think Capital One, Bank of America, etc.) on behalf of individuals who may be over their heads in credit card debt. They can make a big impact in the financial lives of our members.  Here are the two stories..

Destiny made a referral to Trinity for a member that owed $5,230 on two different cards. The original payment was $160 with only $73 going to the principal at 20% interest rate. The new payment is $15 with $123 going to the principal with the new interest rate of 7.45%! The member will save over $600!

A second member had four different credit cards with a balance of $6,122. The original payment amount was $256/month, with only $104 going to the principal at 29.63% interest. The new payment is $173 with $129 of that going to the principal. The interest is now only 9.33% saving nearly  $1,400.

Way to go Destiny!

Why Service Works in a Digital Era

Saving members money is certainly a memorable service.  But  Meier’s  article provides several reasons why this personal service is no longer the preferred business model.

Somewhere along the way, customer service became a necessary evil rather than a means of helping to build brand loyalty. Part of this trend reflects the digitalization of commerce. . .

But I’m afraid that the demise of customer service also reflects a more troubling trend, which I believe is a direct result of the rise of smartphone culture and the aftereffects of the pandemic. First, it has become too easy not to talk to each other. . .

Meier’s Credit Union Takeaway

Customer service is a lost art that has become so conspicuous that in its absence, now more than ever, it can be a differentiator for credit unions that continue to cling to the antiquated notion that customers should be treated with respect and dignity in return for giving businesses their money.

Here is my operational takeaway, no matter how good your credit union’s apps or bots become or how informative your website is: Avoid the trap of thinking of your customers as inconveniences.

Communicating with Staff

I could not help but note two other notes also in this CEO’s staff update.

The Call for Candidates for the 2025 Board of Director elections resulted in 11 candidates applying. The Board Governance Committee is in the process of constructing the ballot.

Could there be a connection between  service and actual board elections by members?

The conforming loan limit is the maximum amount of money a homebuyer can borrow using a conventional mortgage that’s eligible for purchase by Fannie Mae and Freddie Mac and is increasing from $766,550 to $806,500 in 2025.

Just one example from many of how this CEO informs staff about the political, competitive and business context in which they operate.