Does field of membership definition matter to a financial cooperative?

first_imgOn Tuesday, I read an opinion piece from CUNA President/CEO Jim Nussle suggesting that we eliminate field of membership (FOM) requirements. This was based upon the Supreme Court upholding the NCUA’s 2016 field of membership rule.Nussle goes on to point out that the Federal Credit Union Act focuses more on our overall mission “to promote thrift and provide access to credit for provident purposes” than field of membership.  He also suggests that FOM definitions were directly tied to credit-worthiness, at a time when we didn’t have the tools we have today. When I was explaining what a credit union really is to a marketing friend of mine that knew nothing about our structure he summed it up pretty nicely “It’s like borrowing from your friends, co-workers, family or neighbors, only in a less awkward way.” Precisely! That is what field of membership did for us. I started my career in credit unions 40 years ago, and I can tell you that “common bond” matters when it comes to the success of a credit union, especially in the early stages. Early on I worked for United Grocers Credit Union, $4 million in assets. It was really a co-op for co-ops. United Grocers was designed to help independent grocers (mom and pop shops) compete with the big chains by pooling resources and leveraging buying power with volume. When a new employee started at UG they were instructed to open an account at their credit union so they could deposit their paycheck automatically. You can’t get better marketing than that. We promoted thrift by encouraging new members to “pay themselves first” before dumping their entire paycheck into checking. We had a credit committee (a kind of jury of their peers) that reviewed loans outside of our guidelines and decisions were indeed made based on their employment history, their probability of future employment, what they were purchasing (was it a provident purpose?), what is their history with the credit union? By his argument FOM definitions have become obsolete because we have this great tool called the credit score now so we can manage risk another way. Let me first say that I’ve always admired Mr. Nussle and don’t envy his position today as the leader of the trade association that is charged with representing all credit unions in the United States. However, I was really taken aback at the notion that we should eliminate completely one of the few differentiators left to help define our unique cooperative structure. There are two points of contention in my view. First is the notion-the credit scoring system we use today is sufficient. Under the old system (clearly defined common bond) we would make a 20-year-old a loan to buy their first car in a heartbeat. We knew them, we knew where they worked, the likelihood they would be able to pay off the car based on that information. They had no credit, they were just starting out. We also knew that by taking a chance on this young kid starting out, we were likely building lifetime loyalty. Today we won’t touch that loan because everyone is born with a credit score of zero. If you look at most credit unions’ balance sheets, their loan yields are woefully low because they are primarily loaning to A and A+ paper (older people with established credit history). The average age of a credit union borrower is 3 – 5 years OLDER than the average age of the credit union member (which nationally is still 47, or too old). Credit scores, in my opinion, are flawed and have hurt us more than helped us. They were originally intended to help “price” the risk, but were used to judge and deny, especially by the banks who did not have the type of relationship with a customer that a credit union has with a member. I have argued that the loosening of common bond has interfered with the true definition of a target audience (from a strategic marketing perspective). When it was teachers, that was pretty specific and easy to market. When you have a FOM description that states “Anyone who lives, works or worships in a five county area”….well, not so much. Thus the proliferation of “shiny happy people stock art” on most credit union’s websites. They all pretty much look the same. The second notion I’m not a fan of is eliminating our history. In other words, many times I’ll go to a credit union’s website and click on the “About Us” page only to read this rhetoric “We are a not-for-profit financial institution owned and operated by our members with a volunteer board of directors.” What I love to read is “In 1936, five school teachers deposited 6 dollars each to charter the credit union.” This was field of membership, the founders, our history. Let’s not erase it. Also, we need to START new credit unions and the timing couldn’t be better. History is repeating itself and we are dangerously close to mirroring the Great Depression in terms of overall unemployment rates. Credit unions BOOMED after the Great Depression. Why? Common bond. People really needed to help other people. I do see a great opportunity with the looser common bond definition but still see it is a critical piece to defining the market, or the cause if you will.Consider this…one of the hardest hit industries in America right now is hospitality. Restaurants, hotels, transportation. They are bonded in this crisis. And credit unions in their purest form can be summed up in this way: those that are able to deposit money in the credit union will get a reasonable rate of return so that those members that need to borrow money can get a loan (regardless of their score) also at a reasonable rate. If a new credit union were to start today, say the National Restaurant Association CU, I would imagine with our financial cooperative structure that it could be very successful and a wonderful way to tell the REAL story of the financial cooperative movement. All tied to a common bond and people helping people in a time of financial crisis. 4SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Denise Wymore Denise started her credit union career over 30 years ago as a Teller for Pacific NW Federal Credit Union in Portland, Oregon. She moved up and around the org. chart … Web: Detailslast_img read more

Moore is too much for opening night Arizona IMCA Mod Tour foes

first_imgBob Moore won the opening night Arizona IMCA Mod Tour main event, and $1,250, Friday at Cocopah Speedway. (Photo by Melissa Coker)By Mike SpiekerYUMA, Ariz. (Feb. 10) – Bob Moore scored the opening night Arizona IMCA Modified Tour win after a couple spirited battles with Shawn Strand and Hunter Marriott.The first annual tour commenced Friday night at Cocopah Speedway with an outstanding field of 85 Modifieds in attendance. Moore’s victory paid $1,250 and put him on the ballot for the upcoming Fast Shafts All-Star Invitational.After taking the lead away from polesitter Strand, on lap two, Moore opened up a sizeable lead and checked out from the field. As the race advanced, however, Strand’s machine got faster and he was able to reel in and pass Moore to reclaim the lead.The race was slowed at halfway as seven cars tangled in turn one to bring out the caution. When the race resumed, Moore went to the low side of turns one and two to grab the lead away from Strand. Marriott followed suit and rode in Moore’s tire tracks to take the second spot.In the closing laps, lapped traffic allowed Marriott to close the gap between himself and Moore, with only three car lengths separating them at the white flag. Moore carefully maneuvered his way around the slower cars and held off Marriott to secure the win.“I didn’t even know [Marriott] was there,” Moore said after the race, when asked if he felt any pressure from Hunter. “I knew the top was the place to be and I kept inching my way up there throughout the race. You had to be way up there to be fast.”Jason Rogers, who started outside of the front row, took the win in the 20-lap IMCA Sunoco Stock Car main event. Kyle Frederick came home second, followed by polesitter Andrew Altenburg.Mike Tanner found victory lane in the Karl Chevrolet Northern SportMods. The Missouri driver started on the pole and topped hometown driver Cory Hemphill.Cory Tharp collected the IMCA Sunoco Hobby Stock checkers, ahead of Craig Ebers.Feature ResultsModifieds – 1. Bob Moore; 2. Hunter Marriott; 3. Shawn Strand; 4. Lance Mari; 5. Ryan Gaylord; 6. Cody Laney; 7. 
Sean Jerovetz; 8. Lucas Schott; 9. Jimmy Gustin; 10. Jesse Sobbing; 11. Spencer Wilson; 12. Tyler Peterson; 3. Tripp Gaylord; 14. Jeff James; 15. Jacob Hobscheidt; 16. Jesse Williamson; 17. Ryan McDaniel; 18. Jason Wolla
; 19. Chase Allen; 20. Josh McGaha; 21. Collen Winebarger; 22. Austin Kuehl; 23. Troy Gemmill; 24. Bricen James; 25. Jeff Taylor
; 26. Justin Zeitner; 27. 
Nick Decarlo; 28. Bobby Horton; 29. Jeremy Thornton.Stock Cars – 1. Jason Rogers
; 2. Kyle Frederick; 3. Andrew Altenburg; 4. Jody York; 5. 
Race Fisher
; 6. Tony Hill
; 7. Brendon LaBatte; 8. Steven Kihle; 9. George Fronsman; 10. Thomas Daffern; 11. Larry Brigner; 12.  Micheal Mabbitt; 13. Jake Smith
; 14. Joe Haines
; 15. Elijah Zevenbergen; 16. Joe O’Bryan; 17. Manny Baldiviez; 18. Aaron Spangler; 19. Jimmy Davy.Northern SportMods – 1. Mike Tanner; 2. Corey Hemphill; 3. Nick Spainhoward; 4. Kyle Smith; 5. 
Brady Bjella; 6. Corey Clayton; 7. Miles Morris; 8. Joshua Cordova; 9. Clint Clausen; 10. Dennis Gates; 11. Chris Toth
; 12. Kenny Wyman Jr.; 13. James Dupre; 14. Tyler Mecl
; 15. Allen Webb; 16. 
Dale Kunz; 17. Dwayne Melvin; 18. Tate Johnson; 19. Austin Kiefer; 20. Adolfo Noriega; 21. Brandyn Johnson; 22. Brian Roode; 23. Jason George; 24. Mark Madrid; 25. Ron Pegues.Hobby Stocks – 1. Cory Tharp; 2. Craig Ebers; 3. Jason Beshears; 4. Joshua Cordova; 5. Scott Shaw
; 6. Jim Robinson; 7. Tim Clayton; 8. Harvey Quinn.last_img read more

No. 4 Syracuse shuts out UC Davis in 4-0 win

first_img Comments Published on August 29, 2015 at 11:25 pm Contact Sam: [email protected] | @Sam4TR Facebook Twitter Google+center_img The second night of Syracuse field hockey’s season-opening California road trip went much like the first. It ended in a win. This time, the No. 4 Orange (2-0) rolled through the University of California, Davis (0-1), in a 4-0 victory.Roos Weers, who scored the first goal of Syracuse’s season Friday night, wasted no time in continuing what she’d started. Two minutes, 32 seconds into the contest, Weers received a backward pass from Alyssa Manley and beat UC Davis goalie Erica Cohen to the far post. Weers contributed again at 30:16, setting up Emma Tufts for a one-timer that snuck inside the far post.Syracuse went on to score two more goals, but it seemed the two-goal cushion was all the Orange backline needed. It stifled any UC Davis attempt at offense, limiting the Aggies to a single shot on goal through 70 minutes, which goalie Jess Jecko saved.Syracuse dominated on Friday like it had on Thursday. The Orange outshot Stanford and UC Davis by a combined 37 to nine margin. SU also held a 4-1 penalty corner advantage against UC Davis.And while the defense stopped UC Davis, Syracuse’s Manley added to Syracuse’s lead at 39:04 when her penalty shot found the net, giving SU a 3-0 advantage. The final goal came from SU standout Emma Russell, who beat the goalie to her left side off a feed from Laura Hurff.AdvertisementThis is placeholder textSyracuse will conclude its three-game California road trip with a 3 p.m. EST game at Pacific on Aug. 31.last_img read more

Iowa’s snowfall for February was far shallower than average

first_imgDES MOINES — Rain and snow were much more scarce than usual in Iowa over the past month. State climatologist Justin Glisan says it was a far cry from what we usually see during February.“Typically, we expect about an inch of precipitation across the state. What we had on statewide average was about four-tenths of an inch, so six-tenths of an inch below average,” Glisan says. “The driest part of the state is across the southern part, anywhere from an inch to an inch-and-a-half below normal.”When it comes to snowfall, this February was way off base with less than four inches statewide. That’s especially paltry when compared to all the snow a year ago.“Typically, we, across the state, have about seven inches of snow for February, we had about half that,” Glisan says. “Last February, the statewide average was about 26-inches of snow. That was the snowiest February in 133 years of records.”Temperatures were very near normal for February. The average temp is 24-degrees and the statewide average came in at 24-point-three.Early indications are the winter overall will produce warmer-than-average temperatures and below-normal precipitation in Iowa.“We are seeing a higher probability of being warmer than average,” Glisan says. “If we look at the month of March, in general, the outlooks do also show us with higher probabilities of being warmer than average and not a really clear signal precipitation-wise.”Spring arrives March 19th.last_img read more