Risky Business – Sales culture in credit unions

Running an efficient and profitable credit union is likened to running a marathon:  It’s a long haul and your strategy needs to change with the changes in the course.   Some folks have lost sight of the course change.  Question – “Do you think that the go-go-go of the sales culture caused in some larger part, the debacle of 2007?”  Which begs the next question – “Can the practice that caused the problem be used to solve the same problem?”  America over-binged.  Most folks have seen the light of that and have taken steps to correct their wild spending.  And, at these rates, the best return on investment is to reduce debt.  Better to pay off a 8% (or higher) loan than to leave the same monies sitting in an account only paying 25 basis points.   So, now the clash.  Credit unions are to serve the best needs of their members.  What happens when the best needs of the members cause the CEO to lose out on a bonus, because the “numbers” weren’t met for his/her payout?  Unfortunately, as we’ve seen our ranks infiltrated by bankers, the most common answer is to “full steam ahead” “give me my bonus”.   Shame on these people!  Go back to your bank and get the public payout and the just deserved wrath of consumers everywhere.   Being a credit union used to mean something.  It’s time we held folks responsible for their bank-like actions.   Luckily, it’s not necessary to actually have to call these folks. NCUA is at their doorsteps as we speak; asking for a Net  Worth Restoration plan or presenting a letter explaining how XYZ cu will now be running what used to be your shop.