SHARE THE VALUE OF THE COOPERATIVE BUSINESS MODEL

I came across these two videos today, both are on YouTube and both provide excellent information on the value that comes from the cooperative way of doing business.

The first features Howard Brodsky, NCBA board member and CEO of CCA Global Partners. Howard talks about the value of U.S. purchasing cooperatives. 

The second video features Adam Schwartz sharing his extensive knowledge about the different kinds of cooperatives that exist in the U.S.

MAKING THE REGULATOR THE SCALPEL OF LAST RESORT

I often wonder how the role of independence and autonomy, one of the seven principles of cooperation, applies to the credit union business model. I’m of the belief that any sacrificing of autonomy and independence would mean that credit unions cannot truly be “cooperatives” in the strictest sense of the definition, well, at least perhaps in the way the Rochdale cooperators envisioned. Maybe that explains the continuous struggle between credit unions and any outside agency vying to regulate its “cooperative” model.

Now, don’t get me wrong, if credit unions are to participate fully and legally in the U.S. financial services system and offer their members the protection of the federal government, then, of course, I see no other way than to expect that credit unions play by the rules of the game.

But, here’s the challenging observation I have. Should credit unions be doing more for one another—cooperatively—to protect the independent and autonomous nature of all credit unions?  

Here’s what I mean.

Given our cooperative nature, does the credit union system have to rely solely on NCUA to take prompt corrective action or conserve a failing credit union? Why should a credit union be forced to stand face-to-face with a government entity responsible for overseeing and rating its performance without first having the benefit of review by a resource that let’s just say, is less threatening; a resource that could point out compliance deficiencies and help set a corrective course of action? Is it really possible for credit unions to exercise a greater role in overseeing the performance of one another, stepping in to offer guidance, resolve problems or shore up inadequacies before it becomes necessary to have the regulator step in and place a shop into conservatorship?

I say make the regulator’s scalpel the last resort by designing innovative ways to first rely on one another for guidance in staying compliant with all those endless regulations.

Well, there may be such programs already in place. If so, are they affordable to all? Let’s hear about them. Or, can it be that working with one another to resolve performance shortcomings on a balance sheet is more dreadful and painful than having the regulator come walking through the door and us facing the consequences of their judgments and decisions? There has to be a better way.

What do you think? Share your thoughts and hopefully we’ll hear from leagues and associations as well; including some CEOs whose shops are about to go under the regulator’s magnifying glass.

The strength of credit unions is in their collective numbers. I say apply that strength to find ways to preserve any degree of independence and autonomy credit unions can muster.

UNUS PRO OMNIBUS, OMNES PRO UNO

Once again, credit unions, through no effort of their own, are finding themselves in a position of strength. We’ve seen it happen recently with the Move Your Money campaign, which as I just saw in the trades, continues to make a dramatic contribution to credit union membership levels, particularly at BECU.

This time around, credit unions are being given another great opportunity to steal the show. The United Nation’s observance of the International Year of Cooperatives is providing credit unions with an ideal opportunity to educate the masses on the fundamental difference between their cooperative business model and that of their banking counterparts who observe a shareholder-based, for-profit model.

Even more important with this observance comes the opportunity for credit unions to dramatically influence the public’s perception of who they are as financial cooperatives. I see it as an opportunity to grow and nurture the credit union brand to a level never experienced before.  

But, are credit unions willing and ready to support an effort that promotes a collective identity rather than one that focuses exclusively on their own image and business? Putting all politics and egos aside, such an effort will require all credit unions to speak with a unified voice in a common language the masses can easily understand.  

Yes, you’re correct! We’re back to the topic of a national branding campaign. Well, this time around, let’s not kid ourselves.

THE PROPHETIC MESSAGE OF 2012

Alas, we are standing at the front door of the New Year, 2012. Ready to cross over the threshold to greet all that will come our way this year?

Considering everything we’ve been through these last several years, what more can come as a surprise? My hope is that 2012—The International Year of Cooperatives—will turn the tide and see credit unions once again take charge of their own destiny in ways that offer more aggregation, more safety, more cooperation, and more prosperity. 

Having seen the news last week about U.S. Central Bridge and NCUA’s plan to shutter its operation, I can’t help but think back a decade to a time when all the talk about the corporate network consisted of who would replace Gigi Hyland upon her departure as CEO of the Association of Corporate Credit Unions; which corporate is in merger talks and who will offer me the most yield today on my investments.

Some Things Are Better Left Unsaid

I am puzzled. What would prompt The Credit Union Times to publish an article spotlighting one person's political views on the “Occupy” movement, as well as their judgmental way of generalizing a certain group as being “spoiled, selfish, dopey, left-wing idiots?” Outside of an opinion column, how does such unsavory characterizations warrant news coverage? Come on, was it really that slow of a news day?