STOCKHOLM, Sweden–One credit union CEO said she so believes in a shared management service model and the need to staunch all the mergers in credit unions that she’s willing to drive across long distances of New Mexico to play a role. 

Karen Griffo is CEO of Roswell Community FCU in the Land of Enchantment, but also is at the helm of two other small credit unions. Griffo shared her thoughts and experiences with the World Credit Union Conference. 

Griffo, who began with what was a $2.7 million CU that has grown to about $50 million in assets, called the loss of about one U.S. credit union per day “alarming” and “heartbreaking.”

Griffo told the audience she had been contacted by regulators about a smaller CU that had attempted a merger that the members had rejected and was told it lacked a manager and needed  “help.” She said she drove 3.5 hours to visit with the $5 million CU in a small town. Now, with the help of what she called a “very active” supervisory committee, the credit union is healthy and serving members–and she is leading it.

Five-Hour Drive

Griffo, who credited her own board’s support and that of her staff for allowing her to also work with other small, struggling CUs in New Mexico, said she later drove five hours to visit with another CU where she encountered a board asking how much longer they would need to hang around.

“The government was definitely breathing down their necks and the two employees they had walked out the door that day because they were absolutely exhausted,” Griffo said. “They had been put through the ringer. They had a person in a management position who had no training and she just couldn’t do it any longer.”
The big difference between the two CUs was the support from the respective boards, she said.

Sadly, Griffo related, that second board didn’t need to hang around much longer as the credit union was not in any condition to survive and it was eventually merged into Roswell Community FCU. 

Sharing a ‘Plea’

“My plea and my goal now is to try to get into these credit unions,” Griffo said, noting she asked to serve as the chairman of the league’s foundation and the association itself. A pillar of the foundation, she explained, is working to save credit unions through the shared service model.

She urged credit unions to think about people inside their own shops who are seeking more management experience and to make them available to work in the smaller CUs. To that end, the Credit Union Association of New Mexico is actively giving scholarships to help make this kind of in-CU training available.

The experience provides many CU employees with the kind of broad credit union management experience they would not otherwise be able to get, she said. 

Three People Now Taking on Challenge

Griffo said in New Mexico there are now three people playing a similar role as her. In addition, credit unions have also turned to a shared CFO model, which has helped to reduce costs. 

“I have found the way to save these credit unions is to get in there early to train staff members and other people in our communities,” Griffo said. “My challenge to you here today is when you get the calls, roll up your sleeves, dig in and help me train that next generation of credit union leaders so that we are not losing a credit union a day.”

Her work isn’t finished and she’s headed back on the road.

“I got a call last week that says we have another credit union. We’re not Texas, but we have some land to cover, so that’s probably where I’m going next