CEO of One Small CU has Some Hard Questions for Other CUs, the ‘Movement,’ and the Trade Groups

By Joshua Urbick

There has been so much conversation lately in the industry and across the nation about small credit unions, large credit unions, and the persistent push for unity.  

Over the past several years, and especially in recent months, I’ve watched from the sidelines as the voices of small credit unions grow louder. And with that, so has the industry’s effort to quiet any potential upset or “revolution.” I don’t think I’ve ever seen the noise reach this volume on both sides.

Over the course of my decade-long credit union career, I’ve worked at a mid-size credit union ($600 million), a mega-size credit union ($12 billion), and now currently have the honor of leading a small credit union ($30 million) for the past two years. During my career, I’ve witnessed and participated in mergers, understood the perspective of the largest credit unions, lived the daily reality of a small one, and seen firsthand the struggles we all face.

How Big is Too Big?

The largest credit unions are grappling with a question that’s been roaring lately in the industry: How big is too big? Do they still hold to their roots? Are they even credit unions anymore? It’s hard for many of us, especially the smallest, to understand how multi-million-dollar stadium naming rights and NFL partnerships connect to our founding ideals of People Over Profit and People Helping People. 

Meanwhile, small credit unions are simply trying to stay profitable, relevant and serve their members as best as possible.

For example, I’ve been in countless meetings in recent months with vendors trying to find the absolute best deal possible to update our very old website. Hours of research, shopping around, and making sure we’re being responsible stewards of our members’ money, because after turning around a struggling credit union, every dollar matters. A new website could cost us between 5-10k. That’s huge for us. It has taken months of planning and convincing ourselves that we are finally in a financial position to afford it. 

These are the realities facing the “small guys.”

‘Downright Disrespectful’

Meanwhile, we watch mega-credit unions attempting to strengthen their brand, expand their footprint, and pursue mergers with smaller institutions through propositions that often feel aggressive, and at times downright disrespectful. And if the small credit union refuses? The mega-credit union simply targets their members directly, forcing them out of business. It’s vaguely reminiscent of old-school mafia tactics.

So, yes, it can be difficult for small credit unions to embrace the “unity at all costs” messaging directed at us.

Yet here’s the irony: when the industry needs a powerful credit union story to sway legislators or tug at heartstrings, they often call on us–small credit unions. Because we’re the ones deeply connected to our communities, tied to our local members, and able to clearly articulate how we support people and why we do it.

A Dinner Conversation

I was at a dinner recently with someone highly influential in the community banking world. They told me, in essence: “Our problem isn’t with small credit unions still doing the work credit unions were created to do. We’re on the same side. Our issue is with the massive credit unions (ten billion and up), who have lost their mission and strayed from the credit union ideals. Those are the ones we take issue with.”

Yes, regardless of asset size, we share the same last name of “Credit Union.” Yes, we share a history. And yes, our goals often align. This article is by no means against big credit unions. Like I said, I have worked at big credit unions the majority of my career and, before that, a bank. The goal is merely to point out that in summary, we are no longer the same. Both are good. And both have their place. But we are not the same anymore. Our struggles are not the same. Our frustrations are not the same. Our realities are not the same. 

As mergers accelerate, the big get bigger, and too many small credit unions get consolidated or disappear, the divide widens. The differences become impossible to ignore.

The Questions Facing Us

We have held onto our roots and our mission. Have they? 

So, the questions facing us now are: How do we move forward? And, What does the future look like for the small credit unions of America? Can we survive?

Time will tell. But I remain hopeful and optimistic that we can find a path that works for all of us, both large and small. The situation is not hopeless. But the impending extinction is drawing ever nearer, with over a hundred credit unions disappearing every year, how long is it until there are only a handful of massive credit unions left? Tell me how that supports the best interests of Main Street and the every day member? The farmers? The union laborers? The school teachers? 

Taking Action Now

I’ve watched several leagues and associations across the country make an effort to show support and provide resources for small credit unions, and for that, we are genuinely grateful. But the question remains: Is it enough to stop the extinction of small credit unions, or is it simply too little too late? I don’t know. What I do know is that the future will be shaped entirely by the actions we take right now.

Take the small credit unions of Maryland and D.C., for example. We are fortunate to be strongly supported and truly respected by our local league. The DMV is heavily saturated with small credit unions, and our collective voice is heard and respected in the halls of Congress. Our advocacy is strong, and we are given the resources and support needed to grow and thrive.

But many small credit unions across the country are not as lucky. I’ve had countless CEOs from various parts of the country come to me in frustration over the disrespect and lack of meaningful support. They are drowning, screaming for help, and it feels like no one is coming to their rescue.

A Question for Leagues & Associations

To the leagues and associations that do show up for us, I applaud you. To the ones that don’t, why not?

If the only institutions that matter are the ones paying tens of thousands of dollars in annual dues, then just tell us so we can stop wasting time and move along.

To the small credit unions of America, remember: Together we are stronger, and united we are indeed a force to be reckoned with. Your voice Is heard. Your frustrations are valid. 

And to the small credit union leader out there that feels unseen, and wonders if what they are doing is even worth it: We see you. What you do matters. You are not alone! 

Joshua C. Urbick, who says he is “proudly a small CU CEO,” leads IBEW 26 FCU, which serves six labor unions in Washington, D.C. and has 2,800 members across Washington, D.C., Maryland, Virginia and West Virginia. Urbick also serves on multiple small credit union committees, advocating for small credit unions at local and national levels.