Las Vegas, Nev. (April 28, 2008) – The National Association of Credit Union Service Organizations (NACUSO) convened their 2008 Annual Conference general session, Monday, April 28, with over 400 people in attendance, at the Wynn Las Vegas Hotel. A special tribute to the Blues Brothers kicked-off the morning session. NACUSO president/CEO Thomas C. Davis then presented a formal welcome and introduction to officially open the proceedings of NACUSO’s 23rd Annual Conference.
“There is a need for CUSO members to drive credit union success,” Davis noted. “That’s why we are in business.” Describing the current state of the credit union industry as the “Best of Times – Worst of Times,” Davis pointed out that helping credit unions do those things that address tough industry issues will create an upturn in the inflection point of the industry life-cycle, enabling credit unions to begin a whole new growth curve
Davis then related a story about the “100th Monkey,” the parable of a research study where monkeys learned to wash sand off sweet potatoes by teaching each other and collaborating, so all were eventually able to enjoy the vegetable without sand. The lesson, according to Davis, is that the credit union industry can break with tradition, change its collective habits, and collaborate to succeed much quicker than before. Emphasizing the need for collaboration within the industry, Davis summarized by saying, “Collaboration isn’t just for today, this is for future generations. The decisions we make for the future of our industry, today, will echo in eternity.”
The morning session’s keynote speaker was Dan Clark, New York Times best-selling author and contributing author to the “Chicken Soup for the Soul” series, presenting “The Answers are Still in the Box – Taking it to the Next Level.” Clark’s spirited message related that change for the credit union industry must come from within, and not from outside pressures or influences such as mergers and charter conversions, fear of other financial institutions, or the fallout from subprime lending practices. According to Clark, it is organizations like NACUSO asking members to fundamentally change from the inside which provides the real power to make a difference.
Clark asked the attendees to stop worrying about mergers, but start trying to figure out how to work collaboratively. He then suggested that the industry look inward at what it is doing from a grassroots level, within the credit union movement, to be relevant to current and future members. As a call to action, Clark pointed out that credit union and CUSO leaders must avoid thinking that people, especially young people, know the difference between a credit union and a bank. Instead, Clark recommended the industry must make the effort to educate people, and then prove the credit union difference through its actions.”
Peter F. Duffy, associate director, Sandler O’Neill & Partners, New York, anchored the morning session with his keynote presentation “Market Forces at Work – How Will Your Credit Union Respond?” Using exclusive credit union versus bank performance metrics and research analysis, revealing the needs of credit unions and pointing to opportunities, Duffy focused the presentation’s message around his “Four C’s” for credit unions to consider change:
Convergence – A blurring of bank, brokerage, and asset management industries.
Competition – New regional (financial) giants; more and bigger single-product competitors; more and larger credit unions with expanded powers.
Compliance – Regulatory pressures are especially influential.
Consolidation – 68% of U.S. deposits controlled by the 50 largest banks vs. 60% in 1996.
Duffy also offered that key success factors for credit unions involve making market-share the key ratio, not loan-to-share. Another important success factor is changing the focus but not the culture, by developing the sales, marketing, branding and advertising approach that leverages the credit union’s culture into more households. In conclusion, Duffy recommended that credit unions leave all of their options open to benefit members, including the use of collaboration.
