Corporate credit unions were created for the sole purpose of serving members. Sometimes our members need to borrow, sometimes they need a place to invest excess liquidity, sometimes they need some advice about managing risk, and sometimes they need to lower operating expenses through a wide variety of payments systems. Corporates are not interested in being the stars of the game; we take pride in knowing the good work we do contributes to the success of our members and in some way strengthens the financial stability of the credit union movement. Corporate credit unions have grown and prospered in lockstep with the growth and success of the credit union movement. The corporate credit union network has come a long way in a relatively short period of time. The foundation of the corporate credit union network was formed just about the same time that the NFL was evolving into a national power in the entertainment industry.

I have been fortunate to know and work with Jim Jukes, former president of Kansas League, president of ICU, then renamed CUNA Service Group, and a former member of the board at U.S. Central. I recently talked with Jim about the forming of the corporate network. He told me about the way corporates started out by lending to the officers of credit unions, because the regulations at that time forbid officers of credit unions to borrow money from their own credit union. So, the Kansas League formed the Kansas Central Credit Union, which ultimately received approval to expand its authority to loan to individual credit unions.

California Central Credit Union (now WesCorp) started as a part of the California League and in 1970 began soliciting members and collecting permanent capital. In the first six months, 45 credit unions became members of WesCorp and remain members today. California leaders, including Bill Broxterman and Col. Richard Johnson and many others throughout the state, recognized the need to build a second tier credit union to provide financial support for California credit unions. Over a relatively short period of time, credit union leaders in other states adopted the same model and the corporate credit union network was formed. The corporates today reflect the same philosophy, values and principles as their members. In a very real sense, corporate credit unions and their members are on the same team and are working toward the same goals.

Corporate credit unions perform the essential blocking and tackling required for credit unions to have success. Corporates share common goals with our members and are guided by the same set of business principles; one member, one vote; open and voluntary membership; focus on providing education and training; raising capital through member growth and net earning; and concern for our credit union community. These principles guide all corporate credit unions just as they guide our credit union members.

These are the things that lead to a stronger, unified credit union movement and to success for individual credit unions. When credit unions and corporates rely on one another for their success, everyone wins. As a co-operative movement, we are much stronger when credit unions and corporate credit unions develop deeper personal and business relationships.

In football terms, the credit union movement is too small of a team to successfully compete against bigger teams with more resources. Citigroup alone has almost the same total assets as the entire credit union movement. We can only hope to defeat our competitors and provide more service to the member by aligning our resources and flawlessly executing our game plan. The game plan for corporate credit unions is to have high quality products and services that provide protection to credit union balance sheets and critical investment income during times when the passing game (loan growth) is not clicking. We also play a role when loan demand is strong and our members need loans to meet their member's needs.

As credit union mergers continue and new management talent is drawn into the credit union movement from other industries, corporate credit unions deserve to hold a place of prominence on the team. Corporate credit unions should not be considered as just another vendor. Consideration should be given to the role corporate credit unions play in the credit union movement when evaluating competitive bids. I am not asking anyone to overlook their responsibility to their members. Credit unions and corporate credit unions ultimately must provide value to their members in order to maintain a business relationship. However, value can be defined in several ways–higher yields, lower costs, convenience, speed, and contribution to the credit union movement are all important values to consider when selecting a supplier.

Corporate credit unions should not be easily replaced by free agents who are primarily concerned with increasing their stock price or maximizing management bonuses in the same way that some owners run their sports teams.

When credit unions and corporate credit unions work together they will create a formidable competitor, which is focused on the same goal, the long-term success of the credit union member. And isn't that the name of the game?