With the fate of the proposed CUNA bylaw changes now in the hands of credit unions and leagues, some industry leaders said they feel anxious and uncertain, while others noted they remain optimistic and confident about the long-term effects of membership choice on the credit union movement.

“I don't think anybody at this stage is really going to be able to make a great assessment of what it means from a membership standpoint,” Pat Jury, president/CEO of the Iowa Credit Union League, said.

He also chairs CUNA's Corporate Governance Committee, which penned the proposed bylaws.

Although the membership choice issue has triggered the most controversy, the other proposed bylaws changes would allow CUNA's board of directors to develop a dues formula that would favor neither small nor large credit unions, as well as permit the CUNA board to adjust its membership from its current maximum of 24 to a minimum of 12.

“Clearly, the most abundant issue is how can we continue to still work together and create an environment of interdependence even though we're not structurally tied that way, so we can continue to serve credit unions and their members into the future,” Jury said. “And I don't know why things need to change significantly from that. There may be some membership pickups and there may be some members you lose, but you have to carry on.”

John Murphy, president/CEO of the Maine Credit Union League, which wants to maintain dual membership, said even though it's unknown what the future credit union system will look like under membership optionality, he believes there is going to be some splintering in the system.

“Obviously, it's going to be different going forward, but only time will tell what these decisions will have on the overall strength of the credit union system,” he said. “As I look at the dual membership requirement, however, it certainly has been a significant factor for credit unions achieving such a strong state and national presences over the years, so I have seen the benefits of the dual membership requirement.”

Speculation is running high about what the future credit union landscape will look like under a membership choice model, including whether state and national advocacy will be substantially weakened, whether choice will create cutthroat competition among the leagues for credit union members and whether choice will lead to the eventual merger of NAFCU and CUNA.

Read more about what credit union leaders are saying about these issues and more in the Feb. 24, 2016 print issue of Credit Union Times.

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CUNA Bylaw Changes Draw Mixed Emotions

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