Small Credit Unions – Part One

Raiffeisen was successively Bürgermeister of t...

Edward Filene Image via Wikipedia

 This is the first of a series of posts that will address the issues that small credit unions have to deal with on a daily basis. I promise that each post will be brief as I know you have very busy days and I will limit it to two posts per week on this subject.

 While the definition of a small credit union is a matter of debate based where your credit union is on the asset based scale, I will use less than $100 million as my definition for this article.

 Small credit unions face many challenges. Some are somewhat unique to them and some are germane to all credit unions.

 From my perspective the biggest challenges to small credit unions are as follows (not in priority order as that will differ for each credit union):

    • Compliance

      • Development of written policies to comply with the ever increasing regulatory burden placed on all credit unions regardless of size.

      • Lack of adequate resources to be able to follow-up on written polices to make sure that the credit union is complying with the policies that it developed (i.e. – training, vendor due diligence, etc.).

    • Regulators

      • Inconsistency from one examination to the next. Much of this is flavored by Regulator “perceived” issues of the day. This is compounded by the fact that Regulators tend to over react to situations (much like the legislative bodies that develop several of the compliance issues) and it takes them two to three years to settle in at the “happy medium” that should have occurred in the first place.

      • Using a cookie cutter approach rather than taking into account the uniqueness of smaller credit unions who tend to have very specifically identified membership groups (medical, single company, education, rural community, etc.).

    • Succession Planning

      • Development of a succession plan that identifies the process to be used when the current CEO/Manager retires, accepts another position or relocates due to other issues.

      • The same is true for succession planning for volunteers to help make for a smooth transition as board and committee members move on to other pursuits

 More challenges to follow later this week.

 Do you agree or disagree with this first group of challenges? What others are you experiencing?

 I would like to hear from you and you can reach me at casey@caseywheeler.com

About caseywheeler

My interests include: Model trains, Reading, Genealogy, New York Yankees and helping organizations be successful.
This entry was posted in Board Governance, Policies, Strategic Planning, Succession Planning, Training and tagged , , , , . Bookmark the permalink.

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