By Rachel Guyselman
Dear Credit Union Leaders: A Letter From Your Future Leaders
As a Millennial credit union professional, corporate social responsibility has a lot to do with where I’ve chosen to work. Not only do I want to hear what my employers are doing to be more responsible, I want to be a co-creator and facilitator of CSR solutions. It’s not just me, you can read more about it here.
I’ve wanted to address this for some time, but I didn’t want to be disruptive. However, it’s time I speak up, for myself, for my friends and colleagues, and for our members who need us.
I’ve grown my career in the credit union industry. I feel at home here, in a place that genuinely cares for the member and the communities in which they serve. I see so many opportunities for us to continue to be “different,” to continue to live up to the reason we were created, to make credit available to the underserved and unbanked, to promote thrift through a non-for-profit financial cooperative. I get excited when I think of the opportunities! I know there are also challenges.
It's Not 1934 Anymore
The landscape has changed since 1934, when the Federal Credit Union Act was first enacted. We are challenged to meet economies of scale, maintain a not-for-profit focus, and yet remain competitive to attract talent and still afford emerging technology.
Younger generations want to work for companies that are socially responsible. According to this Forbes article, 64% of Millennials who make up 75% of the workforce, won’t accept a job that doesn’t have a strong policy regarding their corporate social responsibilities. I am writing to you, credit union leaders, to amplify this message, and to hopefully facilitate a stronger future credit union industry, by bringing up the unspoken truth we all see.
The thing is, the industry is shrinking in terms of number of credit unions. According to NCUA’s Quarterly Update for Q2 2022, the number of federally insured credit unions shrank about 3% from 2021 to 2022. Let’s move past affordability and regulatory concerns and focus on the factor many of us, tomorrow’s leaders, are too afraid to speak openly about: credit union executives who are playing out the clock until retirement and the volunteers who may see it and not challenge them.
‘There, I Said It’
There, I said it. We see you. We talk about it, frequently. Get a group of invested, excited, and passionate emerging credit union leaders together and no matter the conversation, this topic will come up. We are looking for solutions. Identifying problems is the first step, and I’m sharing this one with you, credit union leaders, because together, I believe, we can find solutions.
I have been incredibly lucky to have started my career at a small credit union where the CEO works tirelessly to build the future of the credit union. I am also fortunate enough to be at another credit union where the board and CEO take the credit union’s future seriously and consider it with every decision we make, right along with “what best serves the member.”
Many of my friends and peers work at credit unions where they have a different experience. As I mentioned, when we’re together, at a conference, over coffee, even in emails sharing ideas and getting excited, the topic comes up: what is your CEO doing to help the credit union remain relevant? Is your CEO engaged? Does your board notice?
‘It is a Joke’
One friend shared that her CEO is so disengaged that he rarely shows up to important meetings and when he does, he is distracted and uninterested. They have a written succession plan, but the entire senior team knows that it is a joke. They also know that none of them is ready to step into the role when the CEO retires, because he hasn’t spent any time building them. They try to help one another, but how do you honestly build yourself up when the person who holds the keys is unwilling and uninterested in showing how to drive?
I was conversing with a CEO regarding new programs to create relevance among today’s consumers when she said, “When I retire, we’ll just merge.” When asked why, there was no good reason. She was uninterested in trying anything, nor was she engaging her staff for ideas or help.
Forced to Ask a Question
Unfortunately, her staff saw it, too, and if they hadn’t left, they were searching; leaving only the uninterested and “been-there-so-long-might-as-well-stay” staff there to keep the credit union going. She was tired and didn’t want to keep pursuing the challenging work of being competitive.
Friends have also shared that their CEOs and executives plan to merge when they retire as well. If they don’t come out and say so directly, their everyday actions demonstrate their intentions.
Tomorrow’s leaders are forced to ask ourselves, “What is the future for credit unions? What is ourfuture in the industry we’ve grown to love?” What will happen to the credit union industry as a whole? Should I be here?
Credit union CEOs and executives, I challenge you to consider whether or not you are one of the leaders that come up in our conversations. Who is next in line at your credit union? Are they truly ready or is it someone who’s been there for many years and it just “seems right?”
What Have You Done?
What have you done to build your team, to show them how things work, to introduce them to your business connections? Are you willing to lead your emerging leaders toward the future and allow us to carry on your credit union’s legacy when you retire or move on?
To our beloved volunteers, our boards of directors and supervisory committees, I challenge you to review you leader’s succession plan and current engagement. Are they leading the credit union you spend your valuable time helping, toward a bright future or are they hanging tight until they retire?
You’ve done incredible things for this industry, the people we serve, and all of members to come. You’ve experienced and navigated this industry through so many challenges. You have so much to share!
Looking to Help!
We want to help. We are here to help! We have embraced the credit union movement. The not-for-profit financial cooperative model fits our desire to do more in our communities, to serve underserved populations and advance financial well-being. We see ways our industry can continue to be “different” and provide value.
We are here and we are ready to dig in. Please do the work to challenge us, to show us how things are done. Please invite us into conversations regarding relevance and how to maintain sustainability. We are eager and passionate about working for an industry that places people over profit.
Sincerely,
Tomorrow’s Leaders
Rachel Guyselman is SVP-risk and compliance with Credit Union 1 in Anchorage, Alaska. She can be reached at rjguyselman@gmail.com.