Anonymous November 6, 2023 at 9:18 AM
"Exactly. Literally every single credit union in the country uses RBL. SECU is a dinosaur."
😎 Always have admired this commenter's quality of thinking which is: If you're not doing what everybody else is doing, you're a dinosaur. Definitely a prehistoric mindset!
The Credit Union established a well-documented record of successfully serving SECU members over the first 85 years; no one as yet has denied that statement.
SECU members indicated support for their Credit Union's rates, quality of service, policies, practices and principles by increasing membership (now over 2.7 million) and deposits (over $50 billion) in each and every one of those 85 years. That no longer holds true.
✅ So, the question for the commenter is: When did SECU turn into a dinosaur? What year was that?
😎 And, one other thing that should go without saying...
... you shoulda listened to your Mama!
She told you that "because everybody else is" was not a "foundational argument" for your life.
“Everyone else does it that way” is a bad argument. “We’ve always done it this way” is only slightly better. SECU can look for positive ways to improve to benefit members without the goal of doing things the same way as everyone else.
ReplyDeleteSECU board/mgmt turned into, T. Rex (a fully functional killing machine) two + years ago ... it's prey ... hard working member/owners/employees!
ReplyDeleteWe should not just do things because everyone else is doing it. We should research what others are doing and analyze how we can continue to be competitive so that we can accomplish being the trusted financial advisor for all members. If 85% of the members are choosing to get their financing somewhere else, it is an indicator that something is wrong with the product. Options for reasons why members were getting their loans somewhere else were pricing, convenience, loyalty, service. Our branch service is the best. We have added convenient options. We have loyalty with State Employees. We lagged on competitive rates for all members.
ReplyDeleteThis line of reasoning is a big part of the problem--several unexamined assumptions, and shifting the goalposts from what we were originally told. 1) Too many members are going elsewhere, therefore SECU isn't serving the members 2) Everything except the rates is great, therefore 3) Must have RBL.
DeleteThe problem with 1 is that it's not the original argument--the members have been told repeatedly that RBL is necessary to the health of the institution. But let's take your point about serving members. I imagine the 85% is pulled out of the air, but not every member is going to get all of their financing from one institution. If only 15% of new loans members are generating have come from NCSECU, then perhaps there is an issue. But even then, standalone numbers are pretty much useless here--the question is, how does that 85% compare to years past?
The second point is where the unexamined assumptions flourish. SECU auto loans have become fairly tight on year and mileage--that may or may not be a good idea, but its going to lose some loans. When I recently refinanced my mortgage, the rate was still pretty good (though not as good as in the past), but I wasn't really happy about the $500 in-branch closing fee that wasn't disclosed until the last minute. I didn't love the fact that all the loan processing was done somewhere entirely outside the branch. I didn't really like some of the terms about not being able to rent the house that were added to the mortgage contract since the last time (what if my situation changed suddenly?). I still financed, but others might be put off, and if anyone asks me about the experience, I won't lie to them. Most branches are still pretty good, but it doesn't take too long looking at google reviews to find that service at some branches is slipping. And we've all heard about the long wait times for the call center.
All that before we get to 3, which is that the only way, presumably, to provide a competitive rate, is through RBL. Which, again, is asserted without evidence. The question that, as always, remains unanswered, is why was the credit union able to provide a competitive flat rate for decades, but now finds it impossible.
Do you think it could be the management?
DeleteIsn't it a little odd that it's mainly the legacy employees fighting back against the current "industry standard" approach and wanting SECU to be a renegade again. Being a renegade with a singular focus on members made us the envy of the credit union industry.
ReplyDeleteNow, low deposit rates, high discriminatory loan rates, low employee morale, out of control expenses have put SECU "below the line".
I’m not a legacy and I fully support what secu has been in the past. As a young employee, I would rather work at a member owned cooperative offering equal services to all members, not just a select few.
DeleteHow do you expect to increase deposit rates when everyone gets A+ credit loan rates? You can have rock bottom loan rates, or high deposit rates. Not both. Which is it?
Delete"How do you expect to increase deposit rates when everyone gets A+ credit loan rates?"
DeleteHow did they do it before?
This is either demonstrably wrong or intentionally overstated. SECU had highly competitive flat lending rates and highly competitive deposit rates for decades, all right up until a couple of years ago. I know, because I was a member for a couple of those decades, and I can remember before 2008. Why can't that be done again, and why are you presenting this false dichotomy? I know it sounds satisfying, but its obvious nonsense: in a bank, part of the spread between lending and deposits is (rightly) returned to the shareholders. A credit union doesn't have to do that. If a credit union can't outcompete a bank on both sides, it's doing something wrong! (So, if you are still wondering, one answer to your first question is "by not having shareholders." Another is "by not overpaying executives".)
Deletewhere were you for the last 85 years? not working at SECU. SECU pretty much had top savings rates, and loan rates. If you shopped around you might have done better, but not much.
DeleteIf the board/mgmt has a case for all the changes they are making they should bring it to the membership to explain the why's (it's been over 2 yrs now folks)... so far they have not done that (at least not that I'm aware of). So that leaves us to speculating on the why's ... If you have an argument for RBL present the evidence, else we are left to feel that you don't have a case and you are just making it up as you go! Maybe someone you 'paid for ideas' suggested this route and you just nodded and went along. Wouldn't surprise me since Gym came waltzing in and sweet talked these folks into giving him control (even after his pitiful record of achievement).
ReplyDeleteIt's pretty apparent 'they' don't do their homework ...
85 years of growth proved to be a successful formula! If all you're trying to accomplish now is getting richer on the backs of member/owners That's not what we're about. Maybe 'you' should find you passion elsewhere ...
ReplyDeleteSounds like a scare tactic... (like Jim Hayes implying that SECU would go down the way Blockbuster did if they didn't make significant changes)
ReplyDeleteSigh. Being different isn’t wrong. Maybe it’s because you believe in different values than others. The options that aren’t like the credit union are plentiful. SECU — There is a difference! It’d be sad to have to permanently change that to was. And go ahead and call it a bank.
ReplyDeleteat the latest id say the year it updated its core values statement to not contradict its updated lending program........🤷
ReplyDeleteBe humble because their situation today could be yours tomorrow. Something to remember.
ReplyDeleteSECU used to be the best of the best. We are continuing the downhill slide with all these negatively effecting changes. Member service is the first and the biggest impact from the branches to the contact centers. Lending and deposit rates are next. Taking collections out of the branches and having limited MLO’s is the last of the negative impacts. Wasting time being on hold waiting for IT is the new standard, calling the collection department and being number 6 in the Que is another great way to collect. No clue what your MLO’s are doing all day but they are all so wonderful. FAS specialist being spread thin.
ReplyDeleteSo please tell me that we are going in the right direction Leigh Brady because I surely don’t see it. Our members suffer, our members struggle but you are so worried about those A paper people. Our local folks including teachers don’t make 6 figures so let’s just slap that high interest car loan on them. Our founders are turning over in their graves at the greed that has taken over to cover the wasteful spending of our organization.
We certainly didn’t grow to be the 2nd largest credit union with a (previously) untarnished record of growth by being a “dinosaur.” What has happened since 2021? Lower member satisfaction, lower employee morale, noncompetitive deposit rates, limited services for members due to over specialization… Add in an inappropriate number of highly paid upper level executives to implement the opposite of what made SECU work so well.
ReplyDeleteI don’t have the answers to fixing it now that so much drastic change has occurred, but it’s not to act like a bank. I’d like to be part of the solution and I’m not alone in that. Some people lack the originality and dedication to imagine anything greater than the status quo/industry standard. Out of the box thinking is how we innovate. Anyone can copy industry standard.
"What has happened since 2021?"
Deletegood question ... we know outwardly what happened, but there are somethings we probably will never know the truth about.