I think it's time for the credit union world to have anintervention, that is, no-holds barred look at what's happening nowand what might happen if we don't take action to stem thediminishing number of credit unions. Credit unions today are comingto grips with the bottom-line realities of the low net marginbusiness we are in, and margins are still shrinking. I can almosthear CU presidents, CEOs and board members heaving a collectivesigh. The squeeze is on and everyone is going to feel it sooner orlater, no matter your asset size. We all know that in such anenvironment, there are not a lot of business choices you can makewhere you can afford a mistake. The average net profit of creditunions today is 1%. I think that's one reason that CUs are sorisk-averse. But business paralysis isn't the answer. And there area great number of smaller and mid-sized credit unions out therewhose CEOs and boards are not welcoming of the constant mergerfeelers they get from much-larger credit unions. They don't want togive up their identity, their hard-won history and members. Butmany feel that knock on the door is inevitable. The good news isthat it isn't. Can we please remember that we're all in the sameboat? Realizing that, we can no longer avoid making the decisionthat may offer the credit union industry the best possiblesolution: collaboration. I know you've heard it before. It's alwaysbeen with us. It hearkens back to the very premise of creditunionism: combined effort, shared expertise, economies of scale,mitigated liability, self-ownership and control and so on. Besidesall that, it allows for bold thinking, new ventures and greaterservice to members. Did I say members? You bet I did. As chairwomanof the “new” NACUSO, I'd like to tell you what makes our outlooknew again. And for all of you reading this who may think it the“same old, same old,” get ready to change your thinking. NACUSO wasalways about credit union service organizations providingnon-traditional services like investments and insurance. But we'realso about back-office support, data processing, personnel, sharedbranching, indirect lending, business loans and related servicesand a bunch more than that. CUSOs have always been the `for-profit'mirror image of the `not-for-profit' credit union that passed theprofit over to the CU. The marriage of two mindsets is sometimesnot easy (did someone say `sales culture?') But credit unions andCUSOs have never needed each other more than they do today. Why?Here's my one word answer: competition. Today, it's competitionfrom banks and other forms of financial institutions (Internetbanks, etc.) and other credit unions. Meanwhile, the cost oftechnology makes the capital outlay necessary to offersophisticated services near impossible for many CUs. Then, factorin the cost of expertise and the staffing to run such programs andit adds up to a daunting scenario. Rather than risk a CU's goodcapital standing, many boards settle on what looks like a sensiblemerger partner. While for some that makes sense, for the CUindustry as a whole it's an omen for eventual invisibility. Numbersdo matter; we are losing too many CU charters. And even if some CUsget very large, it won't be the same. We've always had the answerbefore us, hiding in plain sight, as it were. The power to worktogether. The power to pool our money. The time has come for CUs toget over whatever obstacles they think have held them back and geton with this work now, for while collaborating may have somedifficulties (all of which can be overcome) the alternative is muchworse. NACUSO has taken this effort to a higher level by going froman organization that has great meetings, great speakers, featuresgreat ideas on collaborative ventures that are working and bringsCUSO idea people together with credit union CEOs, managers, ITexperts and others. Now, we're grabbing the bull by the horns andactually making things happen through force of will. We call themFlare Projects. One is now taking shape in Michigan, where changesto the credit union law has had a liberating effect. Five CUs havemade a commitment to form a CUSO to make group purchasing power andreduced costs a reality. Everything from better quality and lowercost printing of monthly newsletters to office supplies, janitorialservices to equipment rental. Vendors who wouldn't dream of dealingwith one or two mid-sized CUs and a few smaller ones will lookdifferently upon a group that brings 10 credit unions to the table.One of our Platinum Partners, CU*Answers has already been usingthis kind of collaborative power for decades, planting littleregional seeds here and there. So from a few credit unions inMichigan coming together in 1970, here is an example ofcollaboration that now sparks others. As the core data processorsconsolidate and reduce the choices and negotiating power availableto credit unions, there now exists the option of a collaborativesolution for credit unions of all sizes. We've also got examples ofCUs banding together to provide core service needs like mortgagelending, indirect lending and collections. So CUSOs aren't only fordoing the non-traditional services, they are just as powerful athelping credit unions perform the traditional services, too. So, myinvitation is to CU presidents, managers and directors everywherein CU-land. Come, collaborate and succeed. It's worth theeffort.