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?
