By Frank J. Diekmann
There’s a news item that was reported by CUToday.info in the last week many may have overlooked in all the headlines, but it deserves your attention. We know many members have been struggling financially during the pandemic—but the bigger surprise is that more than 60% of CU employees say they are also experiencing tough times. Apparently there's an underserved community closer than many credit unions realize.
As reported here, the finding was included in a study by PSCU titled “How Credit Unions Can Become Financial Health Providers” that was conducted by the Financial Health Network with support from Members Development CO. (MDC).
A similar percentage of members are also struggling, with at least one-third saying they are living paycheck-to-paycheck. Much of that has not just been well-documented, it’s the very reason for the establishment of credit unions. So I won’t spend any more time there.
But credit union leaders should spend more time caring for their own employees and not assuming that just because their employed by a financial institution, they are a CAMEL 1 when it comes to their personal balance sheets. This is especially true for part-time employees.
In releasing its findings, PSCU said the industry “still has work to do to improve financial health among its members and employees…Measuring the financial health of members and employees is a key step toward improving financial outcomes.”
Indeed it is. Financial doctors, heal thyselves.
Ahead of His Time
Here’s a quote that has not only not aged well, it’s aged quickly.
In 2018 when then NCUA Chairman J. Mark McWatters was living in Texas while running the agency—commuting to its Alexandria, Va. headquarters for the monthly board meeting—one person with a nonpartisan watchdog group told the Washington Post, “It’s unprecedented and incredibly troubling. How can he lead a federal agency from his house?”
My, how the pandemic has changed things. Suddenly the question is, “How could you not?”
Wait, I Thought You Told Him?
CUToday.info recently received an email from a Canadian credit union in which we were advised to disregard a news release that had been sent earlier. That release had announced that an executive was retiring. Perhaps it was the first he heard of it? Just sayin.
A Sure Bet
Speaking of releases, also received an announcement from America First Credit Union that the new manager of its branch in Carson City, Nev.—where gambling is legal—is Alexander Wager.
It Seems to be a Trend
And speaking of appropriate names, DayMet Credit Union in Dayton, Ohio presented a 0% auto loan to one lucky member through its “Love My Loan” sweepstakes. The winner: Terria Ford
PPP? The P Stands for Puny
During several recent NCUA board meetings, members of the board have extolled credit unions for their efforts in helping members to file for loans under the Paycheck Protection Program. The board members particularly praised CUs for making small loans that aren’t very profitable, with one NCUA board member saying the smallest loan he has heard a credit union has made is $650.
But one CU has gone smaller. Much smaller.
Dupaco Credit Union in Dubuque, Iowa, which in the first rounds of the PPP reported it lent out nearly $30 million to 654 small businesses, said it made one loan for just totaled 80 bucks.
Frank J. Diekmann is Cooperator in Chief of CUToday.info and can be reached at Frank@CUToday.info. Mr. Diekmann is also author of the new book, ‘501 Name Tags: Everything You Need to Know About Business Can be Learned at a Conference & Forgotten in the Trade Show.” For info: www.501nametags.com.