We in credit union land like to talk about the good we do, distance ourselves from the banking community and proclaim we are the hero's in this financial crisis. Are we kidding ourselves or not? I don't believe the average consumer cares who is the villain and who is the do-gooder. They want and need responsible organizations to help them live their lives. Do we really do that much that is different for consumers than anyone else?
What is the value add we bring as CU's? If all we bring is a higher level of service, I don't really think that is a sustainable business model. Are we lending to people down on their luck who can't get a loan anywhere else? Only credit union's with 100% approval ratings can say that? Do we look at the reason for poor credit history and make an exception? Not if our regulators have any say in the matter. As an industry, we can only be as "good" as our regulators allow us to be. And our regulators have to have this stance because there are valid reasons for their concerns and limits. It is a balancing act of being good in order to be able to do good. If we did good deeds all the time, we might soon find ourselves out of business because we weren't being good in sense of fiscal responsibility and stewardship. In the end, credit union's have to balance doing good with being good in the terms of fiscal stewardship and the protection of the common good over individual needs.
No one said that being a hero, er credit union was ever going to be easy.
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