In April, I celebrated 34 years in the credit union industry and at GECU, the last 27 as CEO. I never thought I’d spend my entire career in one industry, let alone at one credit union. But I love my job, and I love making a difference in our members’ lives, so I’ve never found a compelling reason to leave.
During these 34 years, I’ve seen so many changes to our industry. Not just in technology – the internet wasn’t even a thing when I started, let alone smartphones – but in our movement as a whole. When I started back in 1992, there were over 13,000 credit unions in the US. Today, there are fewer than 4400. As everyone knows, this trend has accelerated in recent years. GECU has merged in four credit unions during my tenure, the most recent in 2022. In all cases, these credit unions were struggling and approached us about a merger, something I remain very proud of. And while I do believe mergers can bring value to members in certain cases, as I hope has been the case with ours, I worry that more and more this simply is not the case. Members are not seeing better rates or fees, and have less ownership and say in the running of their institution. Credit unions were originally formed around a common bond, and that meant something. Today, the common bond is essentially meaningless, and that is a shame.
As I see the consolidation in our industry, and the thousands of small credit unions wiped out as a result, I worry about our own future. How do we compete with credit unions that are growing larger by the day? How do we remain relevant in our members’ lives? But then it hits me – we will be just fine because, as much as technology and our industry change, our focus on improving our members' lives has not. We’re not here to reach a billion dollars in assets, or compete against the big banks or even big credit unions. We’re here to improve the lives of our members, period.
What does that mean in practical terms? First, that means saving our members money. Lower rates on loans, better rates on savings, lower and fewer fees, and lower prices on products such as GAP coverage on loans. It means never turning down a loan based solely on a credit score, but working with the member to improve their credit and financial well-being. For GECU, it also means personal service. Answering the phone in person, and resolving issues quickly and without hassle. Yes, we need to offer internet and mobile banking, and the technology that all members expect in today’s world – but that is really secondary. Most of us offer the same services and digital products. And many of our members never even set foot in our office anymore. But when there’s an issue – a debit or credit card getting declined, fraud, or a financial emergency – that’s when personal service makes the difference.
We understand that now, more than ever, our members can get a loan from almost anywhere at the touch of a button. But by borrowing from us, we hope to save them money on both our rates and fees than they would get from that large lender, or mortgage broker, or car dealership. Members can have a checking account with any institution, but by having their checking with us, we’ll pay them a better rate and charge them fewer fees than the big bank. It all goes hand in hand.
We are very proud to continually rank in the top 1 to 2% in Callahan and Associates Return to Member Index – not just in our peer group, but for all credit unions in the country. That’s the measurements I care about – returning value to our borrowers, to our savers, and in the services we offer. While we recognize the need to grow, to keep up with expenses and add new services, if we continue to keep the focus on our members and improving their financial well-being, then I am confident we will continue to grow and be able to do just that. While the financial industry will continue to consolidate and evolve, our focus will remain on our members. And that is the one thing that will never change.
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