or "We, We, We" all the way home?
Interesting how much commentary arises around the topic of business/commercial services at SECU [link]!
That's good, because SECU members realize that this new endeavor for the credit union is a complex service, in which the Board and executive leadership have no expertise nor experience. The question being asked: "Has the prudent due diligence been done on this service?" [Doesn't appear so!]
But, before you jump to the wrong conclusion, basic financial services for small, North Carolina, member businesses may be a good thing. Requests from a few members have always been there; although not offering business/commercial services, certainly hasn't hurt the performance of SECU over the years.
Business/commercial services is an "operational decision" which is rightfully a decision for the current SECU Board. So let it be so! But, hope the Board and ELT will do their homework and not believe the decision shouldn't be subject to questioning by SECU member-owners - who pay for the mistakes and missteps they make.
Pretty obvious that several costly unforced errors have occurred over the last three years. Those faux pas seem to result from "strategic planning" limited in imagination to "everyone is doing it", "me too", and "its industry standard". That won't take SECU into the future... it may assure its failure.
😎 One quick example is the question of: "What is"a small business loan"?"
✅ As you know, the major angst about credit unions within the banking industry centers on the growth in commercial lending. As you saw in a prior post [link], according to the NCUA, commercial lending by credit unions now exceeds $174 billion, topping both total credit card lending [$85 billion] and total new car lending [$164 billion] - that's all CU card/new car loans for 142 million members!
😎 Why would the banking industry argue against "small" business loans to help folks "get by" or get started - sounds pretty hard-hearted! But that doesn't appear to be what's going on. Take a look:
✅ Here are the stats on commercial loans at the largest U.S. credit unions as of December, 2024:
NavyFed 1300 loans total balances: $820 million avg. loan amount: $630 thousand
SECU -0-
PenFed 455 loans total balances: $1.35 billion avg. loan amount: $2.96 million
Boeing 957 loans total balances: $3.27 billion avg. loan amount: $3.40 million
SchoolsFirst 88 loans total balances: $2.33 billion avg. loan amount: $ 2.80 million
😎... not exactly your small engine repair shop, lawn maintenance service, or Ebay start up, is it?
What are the parameters, controls, limits the SECU Board has approved for the upcoming business/commercial services? Why not give members an overview of what and why?
I don't understand your point about banks. We have never said we are only going to do loans that banks won't argue about. The whole point is that our members business owners are being over-charged by banks, because their coop has no solution for them. We want to be responsive to our member need (and requests) and provide a better value. I think we believe that on other products. Banks will lose business they don't want to lose. Just like on mortgages, auto loans, and everything else.
ReplyDeleteWhy are you only focused on lending? The strategy is far broader and about lending, deposits and payment services. Call reports do break out commercial deposits for credit unions. You should check it out.
ReplyDeleteBoeing’s call report shows $1.6 billion in commercial deposits, and they report on their site they have over 80,000 members, and we’re nearly 2x their size. About $20,000 in deposits per member. Don’t think they’re banking Wall Street, do you?
Few that play in small business lending lead with loans. It’s about deposits and operating accounts, and there are fee-based services that can offered. It’s about the whole relationship, not just on transaction.
I agree with a key point you are making, the Board and ELT need to educate members and stakeholders how this works and how it’s different from consumer. It’s not helpful when people don’t understand it, have no experience in it, and just make assumptions. If, when the timing is appropriate (it’s too soon now), they don’t do that, you would have a legitimate criticism.
Just another fundamentally flawed post. Very faulty assumption that DD hasn't been done, or won't be.
ReplyDelete1:19pm It's the... "...or won't be."... that worries me. Kinda implies "but hasn't yet"... although the "me too" decision has been made already.
ReplyDeleteThe membership does not need the details or inner workings of plans and historically has not been privy to them. Why now? Is it because YOU don’t agree with the current ELT?
ReplyDelete1:41 pm Don't understand your logic? You're not going to tell members interested in business accounts and loans what services you offer and how the products work?
DeleteWhy wouldn't you want SECU members to fully understand each service?
Members and employees did know the details of loans/accounts offered in the past. SECU could be trusted... there were no "no formal disclosure disclosures" in the past!
Why do some have to make it personal with negative remarks. Deflecting rather than responding with thought provoking debate like 12:37 pm's response - something positive to consider. In any case, events over past few years have left me anxious about future changes. Is the motive to stay a top dog or is the intent to offer members more so they don't have to go elsewhere with higher fees/rates? Can SECU thrive or is it the only way to survive? Hoping, it is really for the members who need help starting up. Proud I was there when SECU helped LCCU get started, and LCCU has been working for 25 yrs to provide a variety of products to help their members get started - including micro business accounts. Focusing on the needs of underserved members is soulfully rewarding. -c
Delete11:46pm Think some anonymous posts with a bit of edge also include some good points. Try to edit many and take parts and post those parts.
DeleteAnonymous commenting as we all know is not really a discussion , but at least there is some back and "froth"!
Assure you that you are glad you don't see "the best odf the worst"!
But it was LCCU themselves to decide to leave? How is that SECU's fault...
ReplyDelete