MADISON, Wis. -- Two CUNA economists say that their volunteerwork at credit unions gives them a better handle on what is reallyimportant to those on the front lines of the movement.

"I probably got into it in the first place for the same reasonmost directors get into it," CUNA Vice President of Economics andStatistics Mike Schenk said. "My impression is we want to behelpful." He wanted to go in and help solve problems. He has servedon the board of Great Wisconsin Credit Union for five yearsnow.

However, Schenk added, "It becomes clear...solving problems isbest left to management." Instead, serving on a credit union boardmeans being "visionary and thinking about the future rather thanoperational stuff." This was something Schenk learned fromvolunteering at the credit union, even after working in financialservices since the 1980s and belonging to a credit union since the1960s.

CUNA Senior Economist Steve Rick observed that he brings hisexpertise in volunteering on the board of University of WisconsinCredit Union, but it also helps him with his work for CUNA to "seewhat real credit unions care about," he explained. "I think it hasmade me better as a trade association economist." Rick is also abanking and macroeconomics lecturer at the University of Wisconsin,his alma mater. The credit union serves staff and students of theUniversity of Wisconsin plus anyone within a five-mile radius ofone if its branches, according to Rick.

Both economists said that given their skill set they tend togravitate toward the asset liability management-related work in thecommittees. "It's interesting. Everybody has a unique point of viewand we bring something different to the table," Schenk noted. He isan economist and brings a national perspective or look at localtrends, other board members have expertise in business lending ortechnology.

Rick, who was just elected to his second three-year term,agreed, "It was surprising. The level of expertise on the board wasvery impressive. Everyone else on the board was well-read on allthe topics...It was a little humbling."

"The other surprising thing," Rick continued, "is the range oftopics a financial institution has to deal with today." From theBank Secrecy Act to the yield curve, he said, and the board has tolook at it all.

But what these volunteers take away from their experiencevolunteering at their respective credit unions is also valuable.Though they need to look at the credit union in the bigger pictureas board members, sometimes they must zoom in when looking at theeconomics side of things for the Great Wisconsin CU and Universityof Wisconsin CU.

Schenk said his experience with Great Wisconsin allows him todiscover credit unions' real issues. "It gives a better indicationof what the concerns are and what really matters. As an economist,you tend to focus on national economic trends," he acknowledged.However, he added, "When push comes to shove...the national economydoesn't matter all that much. The state economy doesn't mean allthat much. In some cases the local economy doesn't matter all thatmuch."

Sometimes, he said, it is more about a particular field ofmembership. Great Wisconsin has "one of the most open fields ofmembership in the world," Schenk pointed out, but the credit uniontends to focus on south central Wisconsin.

Rick has been with CUNA since 1992. "Being in the movement andvolunteerism, it's the back bone of the whole movement," he said ofhis involvement. He views the role of UWCU's board as "providingoversight management and to make sure members' interests are lookedafter." University of Wisconsin CU, he said, "is a very progressivecredit union. Fast growing. Great management. It's just a verydynamic credit union around the city." UWCU is closing in on $1billion in assets.

He joked about Schenk volunteering for a "competitor," butadded, "We actually think the banks are more our competitors...notso much the credit unions in town."

Competition is one of the many things Schenk said the board ofGreat Wisconsin CU has to think about in addition to the bankattacks, interest margins, and the flat yield curve. He added thathe feels his participation on a credit union board makes him "morecredible" now when he goes out speaking to various credit unionsabout the economics impacting them.

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