SAVANNAH, Ga. — Last year nearly mirrored 2005′s data when it came to the number of members and credit unions in Georgia, but the peach state is poised to take advantage of a number of areas that could open up more growth opportunities.
Mike Mercer, president/CEO of Georgia Credit Union Affiliates, gave a state of the state address at the league's annual convention here at the Westin Savannah Harbor Golf Resort & Spa held May 16-19. Georgia has approximately 180 credit unions with 1.7 million members comprising 18% of the state's population. Combined, Georgia's credit unions have $12 billion in assets. Capital is "a tad heavy" at 14.6%, Mercer said. Loans topped the $7 billion mark in 2006 while savings totaled $10 billion.
Even though community banks and other credit unions are the most talked about sources of competition, Mercer said players like ING and "super banks" like Bank of America are in the background.
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"We cannot out-branch or ATM Bank of America or Wachovia if we do it independently," Mercer said. "We must be driven to solve members' needs and avoid trying to be like others."
Mercer said spread income will continue to decline, members will continue to increase their use of the Internet and fee income probably won't see any steep inclines, but "credit unions can be still be trusted to do what's in the member's best interest."
"The idea is that we can imbed the belief that members can win with credit unions. We can't do it by doing the same things over and over," Mercer told attendees. "We must accept that things can't stay the same."
Mercer said surveys show that people who know about credit unions like them better than banks, but these same respondents still use banks for their financial needs. Only 50% are actually willing to move their business and the other 50% stay because they are getting what they expected. What could those percentages lead to? "Mass marketing fall on many deaf ears," Mercer said.
Credit unions have a unique message and experience, but it won't filter through if the industry isn't doing all it can to reach a wider audience, said Phyllis Cochran, chairman of the Georgia Credit Union League.
"Regardless of what happens in the state house, the White House, hen house or outhouse, we help members win," said Cochran, who shared a video presentation of members of credit unions in Georgia speaking about their individual experiences.
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