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This sponsored content article is provided to the credit union community for shared insights and knowledge from a recognized solutions provider in the industry. Please note that the views and opinions offered here do not reflect those of Callahan & Associates, and Callahan does not endorse vendors or the solutions they offer.

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February 13, 2006


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Anonymous

7/26/2012 04:09 PM

Another dispassionate perspective from Mr. Karnes on a difficult issue for the credit union industry. He is to be commended for asking tough questions without any of the rhetoric that usually infects the conversion discussion.

Anonymous

7/26/2012 04:09 PM

Credit union conversions will have a domino effect on the ownership structures, customer bases, and business plans of credit union service corporations, corporate credit unions, and other vendors. Credit union trade associations will have the gut-wrenching decision whether to serve former credit unions or see some of their best members leave the fold. Credit union regulators are already wrestling (some say meddling) with the public policy and safety & soundness issues surrounding these conversions. The strategic implications for the credit union industry are enormous. The marketplace forces driving these conversions are real, compelling, and evolutionary (de-evolutionary?). Despite wishful thinking by some in the credit union industry who hope that these conversions simply go away, a strategically significant number of the largest 1,000 credit unions will inevitably seek conversion to the savings bank structure in the near future. I’m not Nostradamus, but I am convinced that the credit union industry is on the verge of a cataclysmic cultural shift. Change can be scary, but not recognizing and embracing compelling change borders on insanity. I swear to all of my friends on both sides of this issue that I am not crazy, just clairvoyant.

Anonymous

7/26/2012 04:09 PM

The usual high-level, thought provoking, ahead of the curve, require that you take a position type stuff, that we are used to getting from RK. Well said.

Anonymous

7/26/2012 04:07 PM

Interesting perspectives. As part of an organization that services both banks and CU's, it's true that for-profit companies have an obligation to their shareholders to maximize shareholder value, and that generally means trying to service that institution no matter its charter.

Anonymous

7/26/2012 04:07 PM

Ahh, yes... whether to bite the hand that feeds us or not, that is the question? The board of directors and management of the CUSO must leave their philosophical hats at the doorstep and act in the best interests of its shareholders. As for the credit union, I'm not convinced members do business for us because they buy into the ownership hype. I think it is more about convenience, price and more often about relationships and comfort levels. That having been said, it is up to the board and management of the credit union to decide what is in the best interests of their members. However, making members pay more in order to be classified a profit -vs.- non-profit model somehow just doesn't balance in my GL.

nick_roeler

7/26/2012 03:57 PM

http://www.message_vargetzelb.com/

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