By Dan Marquez
A very detailed admission of dedication and support for the credit union movement, authored by a prominent former board member and chairperson of NCUA, painted a strong visual for the need to support small credit unions and where large credit unions should be focusing their support.
I do agree with Mr. Michael Fryzel that supporting small credit unions is vital to the growth and expansion of services to historically invisible communities across America, and that includes new credit unions.
New is scary for folks who are comfortable with stagnation and status quo. As credit union advocates, we have a duty to the members we serve to provide equitable and sustainable financial cooperation through the credit union model. We are known as a movement for a very important reason, to be ever-evolving and continuing to meet our members where they are.
Mr. Fryzel shares fabulous examples of three new credit unions that serve a very distinct purpose. He states that “efforts to attract members appear not to be working and that the communities they are chartered to serve are not responding.” He continues by stating that there is further research needed to reach specific conclusions as to why the growth of these credit unions has been so slow.
The Good News
Here’s the good news: there is an existing team of volunteers – modern day credit union pioneers – who have been fervently working cooperatively to create more financial opportunities to these underserved communities. Within this team, there is a strong network of shared data and research to address the concerns Mr. Fryzel outlines in his op-ed.
I am curious, though, what metrics are we using to measure the success of a credit union. Is it solely the size and how well that billion-dollar shop is out performing Wells Fargo? Or are we measuring the success by the lives that are enriched with opportunity and authentic trust built in a community financial cooperative?
New credit unions develop a fresh brand recognition in historically underserved and invisible communities that do not have direct access to equitable financial resources and opportunities. A brand and relationship strategy that is more in tune with the consumer as an individual as opposed to another merger.
Begging the Question
Sure, we may have, as Mr. Fryzel points out, “more than enough credit unions to serve the millions of people who are not now members.” I beg the question, then where are these credit unions for the LGBTQIA+ individuals and people of color, specifically African American, Black, Latino, Indigenous, Asian American Pacific Islander, formerly incarcerated, HIV positive individuals, service industry workers, cannabis industry, legal sex work and MORE?
I share the same thoughts as Mr. Fryzel, as he continued to say, “Large credit unions must come together and help smaller credit unions succeed. Investment of time and money in smaller, struggling credit unions is essential.” Unfortunately, we have witnessed more billion-dollar credit unions seek expansion for the executives’ financial gains. People over profit, that is the credit union way. In an era where our global and national banks have cheated the American consumer, it seems odd to not cooperate and support entrepreneurial spirit, such as chartering a new credit union.
Have Heard it All
I have been told by hundreds of people in the credit union movement that starting new credit unions is unnecessary, not needed, wouldn’t be supported, will fail in two years, you name it. And every one of these fire-starters has ignited a passion to continue advocating and fighting for equitable financial services for those without the privilege of financial security. What would Ed Filene and Louise McCarren Herring say if asked, “Should we be chartering new credit unions in 2021?” I have a really hard time believing that these mavericks in our history, who provided us the movement we have today, would say, “We have plenty of billion-dollar credit unions that can do it just fine.”
We must keep our movement alive and actually moving with appropriate speed and velocity. I previously stated a team of passionate de novo advocates are working diligently to charter new credit unions. This team works cooperatively and passionately to see financial liberty and equity in the aforementioned underserved communities.
How to Get More Information
Please reach out to me, Dan Marquez (they/them) at danielriley1991@gmail.com and/or Denise Wymore (she/her) at (dewymore@me.com) to join learn more about the progress of the de novo movement and how you can be an advocate!
Stay tuned for more exciting news on the De Novo Movement. Madam Nymphadora, CUDE, will be hosting a De Novo Town Hall on International Credit Union Day. Visit www.MadamNymphadora.com for more information.