Editor’s Note: In response to Frank J. Diekmann’s column on the “credit unions harming credit unions” press releases many CUs send to the media, a CEO who asked for anonymity has shared this “press release”  with readers of the CU Daily using his/her own CU’s case as an example of what it occurring.

By Anonymous

Your Local Credit Union Distances Itself from Large “Non-Local” Credit Unions

ANYWHERE, America–Your Local Credit Union announced today that it  chosen to distance itself from affiliation with the large credit unions that have recently been expanding into Anywhere, America. Instead, Your Local CU is strengthening its identity as the last small credit union in town, after being chartered in 1969.
According to Your Local Credit Union, in the 1980s there were seven small credit unions in Anywhere, but now only YLCU remains. 

“Historically credit unions were all small, hyper-local institutions serving only distinct employee groups, churches, communities or geographic areas,” the credit union said. “As not-for-profit, tax-exempt cooperatives, they were established to provide superior savings and service to those limited memberships, often with a focus on underserved communities or individuals.”
Your Local Credit Union pointed out that across the nation the number of small credit unions has been rapidly declining for decades, exacerbated by the competitive pressure of “large, expanding credit unions moving into their communities.”

Your Local  Credit Union cited discussions among some that have suggested most small credit unions will be out of business or “absorbed” within the next decade.

Concern Over ‘Demise’

“While Your Local CU is financially strong, it is expressing concerned about the demise of their fellow small credit unions and how that will hurt those communities.” 

“Usually, these large out-of-town credit unions don’t bring better value when they move in, they don’t provide better products, services or pricing, and they don’t even have any connection to the new community,” said the president and CEO of Your Local CU. “What do they bring? Gigantic advertising budgets, which allows them to drive many smaller ones out of business.
While Your Local Credit Union said it is a proponent of all credit unions over big banks (“the savings are clear”), it said it also believes in what it called the significant and unique value provided only by small credit unions. 

“As the only small credit union in Anywhere, America, we fill a niche for those who don’t like being a number at larger institutions, because we give more personalized and friendly service, often for that vital auto or home loan they couldn’t get approved elsewhere,” YLCU’s president said. “Our rates are usually about the best in town, and we don’t even charge NSF fees.”

The Value in Being Small

Your Local CU added that one reason it can provide great value despite its small size is because of its small size! YLCU said its size allows it to stay focused on Anywhere, and added its not-for-profit mission of giving profits back to their members is another great value returned to members because it didn’t that money on aggressive expansion and building more branches.
Your Local Credit Union said it is hopeful other small credit unions across the nation will follow its example by disassociating themselves from large “invading” credit unions, while also re-aligning their values to give more profits back to their members. 

“Perhaps this will help remind communities of the value small credit unions provide,” the president and CEO said. “Why would you support a large outside institution anyway, when you can keep it local and get services that are usually better?”