Small credit unions are renowned for banding together to help one another. CUNA Mutual tapped into that strength by convening a council of 12 leaders of small and midsized credit unions to share ideas and guide the company’s new approach to serving their market.

As part of the council’s first face-to-face meeting in October at the CUNA Mutual campus, the council conversed with CUNA Mutual President and CEO Jeff Post and other company leaders.

It was a valuable, honest exchange, says council member Lucile Beckwith, CEO of Palmetto Trust Federal Credit Union.

“It felt really good to participate, because I felt like CUNA Mutual is going through a renewal,” Beckwith says. “They’re reaching out to small credit unions to see what they can do to really help us survive.”

The company sought the council’s feedback and advice about a reinvented sales structure launched in October 2006.

CUNA Mutual’s sales force now serves most small and midsized credit unions via telephone and e-mail, emphasizing frequent contact and quick responses above personal visits. “I like what Jeff Post called it: ‘relationship time’ versus ‘windshield time,’” Beckwith says.

The council brainstormed ideas on how small credit unions can bolster their bottom lines, to preserve their brand of member service.

For example, Beckwith encouraged CUNA Mutual to continue expanding its online training programs, which have given Palmetto Trust’s staff access to education they otherwise couldn’t afford.

Another council member, Jon Hernandez, says not enough small credit unions take advantage of the opportunity to generate non-interest income with products such as GAP, mechanical repair coverage, and direct-to-member marketing programs such as CUNA Mutual’s MemberCONNECT.

Small credit unions sometimes shy away from such programs, believing they’ll be difficult to administer, says Hernandez, CEO of three small Southern California credit unions. But his credit unions have been able to establish new income streams with a modest amount of initial set-up and training.

Hernandez urges small credit unions to include business partners such as CUNA Mutual in strategic planning sessions. Don’t wait for a sales pitch, he says, collaborate.

            For example, Hernandez wants to beef up his credit unions’ IRA program because he projects a sharp increase in deposits from retirement plan payouts. He’ll involve his CUNA Mutual sales executive, who can bring in a company IRA expert if necessary.

Hernandez, like Lucile Beckwith, praised CUNA Mutual’s new sales model for the frequent, proactive, and responsive service his credit unions have received.

His CUNA Mutual contact has demonstrated the company’s commitment to delegate talented, experienced people to serving smaller credit unions. “[CUNA Mutual] picks the right people, and that makes a big difference to us,” he says.

The council will meet via Web conference, and informally amongst themselves, before reconvening in 2008. “We’re kind of like a Congressional steering committee,” says Beckwith, who has experience doing just that for a U.S. senator. “We can be the eyes and ears for our peers.”

 

SIDEBAR

 

 

Everyone’s Federal Credit Union

Tucumcari, New Mexico

Assets: $14 million

 

Palmetto Trust FCU

Columbia, South Carolina

Assets: $18 million

 

Richmond Community FCU

Gracewood, Georgia

Assets: $20 million

 

City of Downey FCU

Downey, California

Assets: $10 million

 

Mattel FCU

El Segundo, California

Assets: $29 million

 

CALCOM FCU

Torrance, California

Assets: $26 million

 

Credit Union of the Rockies

Golden, Colorado

Assets: $48 million

 

Settlers Co-operative Credit Union

Bruce Crossing, Michigan

Assets: $10 million

 

Miami University Community FCU

Oxford, Ohio

Assets: $36 million