By Patrick La Pine
As credit unions gather in Washington, D.C. for the CUNA GAC, one issue that will be discussed, officially and during side conversations, is membership choice.
CUNA is currently having member credit unions and leagues vote on new bylaws for our national trade association that will, among other things, allow for membership optionality beginning in 2017.
The League of Southeastern Credit Unions & Affiliates (LSCU) was one of the first state leagues to allow membership choice beginning this year. In addition to the LSCU, Michigan, Ohio, Carolinas, New York, Kentucky, and Virginia Leagues have all voted to allow membership choice.
The LSCU & Affiliates board of directors took a measured approach when it voted to allow membership optionality this past October. We surveyed our credit unions, affiliated and non-affiliated, to get their feedback before making a final decision. Overwhelmingly, credit unions were in support of having the option (84%). But, they were also overwhelmingly in support of maintaining the CUNA/league System, with interdependent advocacy being the focal point of our joint efforts. This sentiment further clarified to our board that giving credit unions choice will not fracture our system as some have suggested but instead, if executed correctly, will make us stronger.
As we know, the credit union movement has too many legislative and regulatory priorities to let membership choice distract us from moving our agenda forward. What the LSCU has learned through this process is that it has not negatively affected our grassroots advocacy efforts. In fact it has only strengthened resolve and coordination with CUNA.
Earlier this month, we had our largest turnout for the Florida State Governmental Affairs Conference in Tallahassee and we expect the same type of turnout for the CUNA GAC. The LSCU is working with CUNA on an Interdependency Agreement to ensure best-in-class advocacy and accountability between our two trade associations. We are also working on a new, coordinated marketing plan that will further highlight the value of joint affiliation with CUNA and the LSCU.
A Quick Way to Fracture Movement
The quickest way to fracture the credit union movement is to have credit unions feel their state and national trade associations aren’t listening and reacting to their wants and needs. Alabama and Florida credit unions asked for membership choice and we have seen very little negative reaction. Early 2016 affiliation results indicate that most, if not all, credit unions our opting to continue to be members of CUNA and the league. Moving forward we might have a couple of credit unions affiliate with LSCU and not CUNA or vice versa. But as long as they are affiliated with one of us, both trade associations and the movement as a whole benefit through greater engagement. It’s a way to reintroduce how effective the model can be when we are all working together; especially if the credit union has not been affiliated in quite some time or has chosen cheaper and less effective alternative.
I’m proud to say that the LSCU has been a leading voice on membership choice. For the credit union industry to be sustained and to continue thriving, we need to be willing to change and evolve the CUNA/League System to respond to the wants and needs of credit unions. Change is never easy, but if executed correctly, it will strengthen our partnership with CUNA, which in turn will improve the operating environment for all credit unions.
Patrick La Pine is President/CEO of the League of Southeastern Credit Unions & Affiliates, with offices in Tallahassee, Fla. and Birmingham, Ala.