cuworldv8i1.indd - World Council of Credit Unions

Transcription

Volume 8, Issue 1 • April 2006
The Source for International
Credit Union Information
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World Council of Credit Unions, Inc.
Board of Directors
Executive Forum
Growing the International
System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Feature Article
Credit Union Mergers:
Who is More Competitive in
the Long Run? . . 2 – 3, 14 – 15
International Partnerships
Cooperation Knows
No Borders . . . . . . . . . . . . . . 4 – 5
Governance
Recruitment & Selection
Practices in International
Credit Union
Governance . . . . . . . . . . . . . 6 – 7
Spotlights on Development
Expanding Access to
Financial Services. . . . . . 8 – 9
Pilot Program Propels Credit
Union Staff to the Front Lines:
HIV/AIDS in Kenya . . 12 – 13
Platform
Changing Global Inequity:
How Credit Unions
Help . . . . . . . . . . . . . . . . . . . . . . 10 – 11
Global Trends
Building Inclusive Financial
Sectors: UN Recognizes
the Role of Credit
Unions . . . . . . . . . . . . . . 16 – 17, 19
Worldwide Foundation
WOCCU’s Unique Funding
Source to Strengthen
Sri Lanka . . . . . . . . . . . . . . . . . . . . . . . 18
Supporters Corner
Empire Corporate FCU . . . . .20
Supporters Listing . . . . . . . . . . . . .21
Products & Services
2006 World Credit Union
Conference in
Dublin, Ireland . . . . . . . . . . . . . .22
Special Insert
World Credit Union Conference
— Register Today!
Credit Union World
Published by World Council
of Credit Unions, Inc.
Publishing and Editorial Staff
Publisher: Kimberly Johnston
Marketing & Communications Officer
Designer: Denise Knudsvig
Desktop Publishing & Graphic Design Specialist
Publishing Information
Credit Union World is published two times
a year by World Council of Credit Unions, Inc. World
Council reserves the right to edit letters
to the editor and all submissions. Send
submissions, requests for subscriptions and address
changes to Kimberly Johnston, Editor.
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Madison, WI 53701-2982 USA
Telephone: (608) 231-7130
Fax: (608) 238-8020
E-mail: [email protected]
Website: www.woccu.org
©2006 World Council of Credit Unions, Inc.
Printed with Soy-Ink on Recycled Paper
cuworldv8i1.indd 2
Gary Plank
Chairman; USA
Credit Union National Association (CUNA)
Melvin Edwards
1st Vice Chairman; Caribbean
Caribbean Confederation of Credit Unions
(CCCU)
Barry Jolette
2nd Vice Chairman; USA
José Manuel Rabines
Treasurer; Peru
National Federation of Credit Unions of
Peru (FENACREP)
Grzegorz Bierecki
Secretary; Poland
National Association of Cooperative Savings
& Credit Unions (NACSCU)
Mark Bailey
Director; Ireland
Irish League of Credit Unions (ILCU)
Síncrito Cifuentes
Director; Guatemala
National Federation of Credit Unions
(FENACOAC)
John Gilbert
Director; Australia
Credit Union Services Corporation
(Australia) Ltd. (CUSCAL)
Ron Hance
Director; USA
Sylvester Kadzola
Director; Malawi
Malawi Union of Savings & Credit
Co-operatives, Ltd. (MUSCCO)
Neil McDonald
Director; New Zealand
New Zealand Association of Credit Unions
(NZACU)
L.R. (Bobby) McVeigh
Director; Canada
Credit Union Central of Canada (CUCC)
Wayne Nygren
Director; Canada
Catherine Roberts
Director; USA
General Assembly
Members
Juan Altamirano
Delegate; Nicaragua
Financial Credit Unions Central of
Nicaragua (CCACN)
Salvador Gonzáles Alvarado
Delegate; El Salvador
Federation of Credit Union Associations of
El Salvador (FEDECACES)
Lázaro Simental Ballona
Delegate; Mexico
Caja Popular Mexicana (CPM)
Modesto Segovia Boltes
Delegate; Paraguay
National Credit Union Confederation, Ltd.
(CENCOPAN)
David de Jong
Delegate; South Africa
Savings & Credit Cooperative League of South
Africa (SACCOL)
Arnulfo DeLeón
Delegate; Panama
Credit Union Guaranty Fund Corporation of
Panama (COFEP)
Virginio Rafael Gerardo
Delegate; Dominican Republic
Association of Rural Credit Unions (AIRAC)
Mary Henderson
Delegate; Great Britain
Association of British Credit Unions, Ltd.
(ABCUL)
Vadim Kalinichev
Delegate; Russia
Russian Credit Union League (RCUL)
Innocent Kayitare
Delegate; Rwanda
Union des Banques Populaires du Rwanda
(UBPR)
Rolando LaFuente
Delegate; Bolivia
The Technical Association of Credit Unions
(ATC)
Eugene Ihor Laszok
Delegate; Ukraine
Ukrainian National Association of Savings
and Credit Unions (UNASCU)
John Long
Delegate; Ireland
Harriet May
Delegate; USA
Gerry McGee
Delegate; Ireland
Edward Mudibo
Delegate; Kenya
Kenya Union of Savings & Credit
Cooperatives, Ltd. (KUSCCO)
Okello N’Jaramba
Delegate; Kenya
Kenya Union of Savings & Credit
Co-operatives Ltd. (KUSCCO)
Rob Nicholls
Delegate; Australia
Alcenor Pagnussatt
Delegate; Brazil
Confederação SICREDI (SICREDI)
Neville Parsons
Delegate; Australia
David Phillips
Delegate; Canada
Christopher Samuda
Delegate; Caribbean
(CCCU)
Florin Simion
Delegate; Romania
Central Federation of Romanian Credit
Unions (FEDCAR)
Michael Tarr
Delegate; Canada
Ashton Turney
Delegate; Caribbean
(CCCU)
William Villalobos Umaña
Delegate; Costa Rica
Federation of Costa Rican Credit Unions
(FEDEAC)
Associate Members
Susan Albrecht
Delegate; USA
CUNA Mutual Group
Paul Armbruster
Delegate; International
International Raiffeisen Union (IRU)
Maria Elena Chavez
Delegate; International
International Co-operative Alliance (ICA)
Dr. Augustine K. Lim
Delegate; Asia
Association of Asian Confederation of Credit
Unions (ACCU)
Ramón Imperial Zúñiga
Delegate; Latin America
Latin American Confederation of Credit
Unions (COLAC)
Senior Management Staff
Pete Crear
Chief Executive Officer
Brian Branch
Chief Operating Officer
Julie Allen
Senior Accounting Manager
Mark Cifuentes
Senior Manager Latin America
Caribbean & Africa
Anna Cora Evans
Senior Manager Development Finance
Dave Grace
Senior Manager Association Services
Dave Richardson
Senior Manager Technical Development
Curtis Slover
Technical Services-Project Development
Senior Manager Asia/Europe
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Pete Crear
Chief Executive Officer
Gary Plank
Board Chairman
What does credit union development
mean around the world? For each of
our member countries, development
has a different face—just as every
nation has a different culture and
history—and requires the involvement and cooperation of many different entities. Development is the
overriding theme of this issue of
Credit Union World and we are proud
to bring you updates on our newest
development initiatives—and our
latest successes—around the world.
Development takes on new meaning
in Africa, as we address the ongoing
tragedy of the HIV/AIDS crisis. In
areas where the disease has hit epidemic proportions, it is taking its toll
on all of society, including the credit
union community. World Council of
Credit Unions Inc., (WOCCU) recognizes that credit unions, with close
ties to the community, are in unique
positions to help. We launched our
pilot HIV/AIDS education project
in Kenya, which disperses vital information on the disease, prevention
and treatment. Using credit unions as
information distribution centers, we
have the ability to save lives in the
credit union community and beyond.
The credit union community in Sri
Lanka faces very different, but no
less difficult obstacles. After the successive blows of a decade-long civil
war and the 2004 tsunami, extensive
rebuilding is imperative. In Sri Lanka
we have developed an innovative
program that obtains development
funding in a non-traditional way.
Sponsored in part by the United States
Department of Agriculture (USDA),
the initiative involves WOCCU selling wheat in Sri Lanka to generate
revenue for a credit union development program. Sri Lanka’s credit
union league, SANASA, is working
side by side with WOCCU to implement this development program.
The International Partnership Program
provides an important vehicle
for growth in the global credit
union movement and is an excellent
example of the power that can
be harnessed when partner credit
unions and credit union organizations share knowledge, experience
and resources. A partnership that has
continually exceeded our expectations is the one between the Texas
Credit Union League, California
Credit Union League, Caja Popular
Mexicana (CPM) and World Council.
The work of this team, explored
in-depth in this issue, includes a
number of initiatives implemented
on both sides of the border to benefit
Mexico’s fast-growing credit union
community. We consider this to be
a best practices example of World
Council’s International Partnership
model and congratulate our partners
in receiving the 2006 Herb Wegner
Award for outstanding program.
Looking to the future, at this year’s
World Credit Union Conference in
Dublin, Ireland, WOCCU is proud
to welcome a distinguished keynote
speaker who is well-versed in global
development: former President of
Ireland, Mary Robinson. In this issue
of Credit Union World, we report on
a recent conversation with Robinson
about her Ethical Globalization
Initiative, her thoughts on credit
unions and her belief in the significance of microenterprise.
We’d like to draw attention to World
Council’s involvement in the United
Nations 2005 Year of Microcredit
efforts. The culmination of this project
was the publication of “Building
Inclusive Financial Sectors for
Development,” also known as The
Blue Book. Credit unions are recognized for their ability to effectively
provide microcredit services to the
impoverished. WOCCU representatives were amongst a handful of
microcredit experts invited to participate in key stakeholder sessions in
New York and Geneva.
In this issue we also address a
“macro” issue at the other end of
the spectrum: credit union mergers.
In the United States, Australia and
Canada, changing technology, downward pressure on pricing and the
lack of succession planning has led
to an increasing number of mergers.
Mergers have not swept into developing countries at the same rate,
but the trend has begun in Mexico
and Poland.
As you flip through the pages of
Credit Union World, we hope the
stories you find here fill you with
a sense of excitement and pride.
You—WOCCU’s members, partners
and volunteers—play a vital role in
supporting the modern day pioneers
of credit union development. As
we look to the future, we know it
is only with your ongoing support
that we will continue empowering
credit unions to lead the way to a
brighter tomorrow.
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“It was just here.” Is that
phrase familiar to you these
days? It might be, given
the speed at which credit
unions are disappearing in
some markets as a result
of mergers. According to a
recent poll of credit union
professionals and volunteers in the United States
(U.S.), the decreasing number of credit unions was
the biggest news topic in
the credit union movement
in 2005. As fast as credit
unions are disappearing in
the U.S., they are disappearing twice as fast in
Australia and Canada. Over
the past decade, 18 percent
of U.S. credit unions were
lost in mergers, compared
to a 35 percent loss in
Canada and a 47 percent
loss in Australia.
This is not a new trend in
any of these markets. In
fact, in the United States
there are only 8,978 credit
unions today—down from
a high of more than 23,000
credit unions in the 1970s.
Today, the difference is
who is doing the merging
and why.
Year and number of credit unions in these regions:
Canada (CUCC)
2000
2001
2002
2003
2004
715
694
657
622
584
Australia
United States
187
181
169
157
148
10,684
10,355
9,935
9,480
9,209
Giving Context to the
Broader Marketplace
Very similar patterns have been occurring in Australia, Canada and the
United States over the past five years:
between two and seven percent of
credit unions are disappearing each
year. Annual asset growth rates for
the movements average a healthy 9.5
to 25 percent annually, but membership is stagnant with average growth
rates of 1.3 to 3.3 percent—slightly
ahead of the population growth.
In each market few new credit
unions have formed, while the existing credit unions are successfully
solidifying their relationship with
existing members.
Mergers may be making it possible
for credit unions to survive, but they
don’t appear to be fueling much
membership growth in any of these
movements. In fact, over the past
decade credit unions’ share of the
consumer loan market has shrunk
from 11.3 percent to 10.6 percent in
the United States.
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Presumably, large credit unions have
the depth of staff and resources to
hire new CEOs when existing CEOs
step down. In 2004, merged credit
unions had an average of US$9.3 million in assets.
Technology and Modern Products
Reasons for Mergers
The vast majority of credit union
mergers in these countries are voluntary—not failures, assisted mergers
or demutualizations. Credit unions in
each of these markets maintain strong
financial positions with generally
healthy economies. The reasons
for these mergers typically revolve
around a constant set of themes
including: 1) lack of succession planning for retiring chief executives,
2) need to keep pace with technology and offer a modern product, and
3) desire to improve efficiency.
Lack of Successors
As long-time managers of credit
unions retire, boards face difficulties replacing them at the low salary
levels currently being paid. A recent
survey from Credit Union National
Association (CUNA) in the U.S.
indicates 24 percent of American
credit union CEOs will retire in the
next five years, and seven percent
will retire in the next two years. In
the smallest credit unions—those
with assets of less than US$2 million
—one in three CEOs will retire in
the next three to five years, in addition to the 10 percent retiring by the
end of this year. At the largest credit
unions—those with US$1 billion or
more in assets—17 percent will retire
in 2006, and another 17 percent will
retire by the end of 2009.
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In the U.S., small credit unions often
merge with mid-sized credit unions.
It’s challenging for small credit
unions to keep up with technological
advances and offer needed competitive banking products. Consumers
increasingly expect their financial
institutions to offer a minimum level
of transactional services and products
including debit cards, access to automatic teller networks, credit cards,
mortgages, on-line banking services,
electronic transfers and bill payment.
Either through national or regional
associations, credit unions may be
able to access some or all of these
products without losing relationships
with their members.
Push for Economies of Scale & Scope
Conventional wisdom suggests one
way to compete in the marketplace
is through price. Credit unions have
historically low operating expense
ratios. This is not to say the only
“real” credit unions are those run
exclusively by volunteers and open
only twice a week. Credit unions
should offer their members a rich
array of products and services at
attractive rates, reasonable fees
and in a manner uniquely focused
on members.
In Australia and Canada there is
a greater tendency for mergers
among larger credit unions seeking
to become even larger and more
competitive. As indicated above, most
mergers in the United States have been
among comparatively small credit
unions. This could be attributed to
the fact that larger U.S. credit unions
Continued on Page 14
3/16/06 2:39:37 PM
CPM representatives,
pose for a photo with
West Texas Credit Union
in El Paso.
On February 26th, the California-Nevada Credit Union
League (CCUL), Texas Credit Union League (TCUL), Caja
Popular Mexicana (CPM) and World Council of Credit
Unions, Inc. (WOCCU) received one of the highest
distinctions in the United States credit union system, the
Herb Wegner Award. This award serves to highlight the
accomplishments, impact and differences made by these
four credit union institutions who joined forces to create
a successful partnership program.
Formed in 1995 through the consolidation of credit
unions, state federations and a national federation, CPM
is the largest credit union in Mexico. This merger of more
than 60 credit unions into one institution came with great
challenges to overcome: widespread inefficiency and
lack of centralization. Many processes were redundant;
most branches continued to operate as though they
were stand-alone credit unions. In September, 2001, after
reviewing CPM’s situation and receiving funding from
the United States Agency for International Development
(USAID), WOCCU began implementing a US$4.8 million
project that focused on increasing CPM’s financial selfsufficiency and viability, institutional efficiency, range of
services and outreach.
The scope of the project moved WOCCU to approach
the California and Texas credit union leagues to help
strengthen CPM. As both Texas and California have strong
cultural and economic ties to Mexico, it was only natural
to bring these credit union movements together. In
February, 2002, CCUL, TCUL, CPM and WOCCU signed a
partnership agreement.
financially sound credit
unions can do, become
and achieve. With their
help CPM established a
call center, enhanced marketing services and website
presence, selected a US$10
million software solution
for operations, as well as
drafted manuals containing policies, procedures,
internal controls and auditing concepts. Through
more than 25 exchanges,
representatives from CPM
have visited credit unions
in California and Texas,
allowing them to work with
CPM in a variety of areas,
including business lending and marketing operations. This commitment to
cross border cooperation
has given member credit
unions in both states the
notion of having a vested
interest in the continued
success of CPM.
WOCCU’s strengthening
project and international
partnership efforts have
greatly improved CPM’s
financial health, which has
produced many additional
benefits, most favoring
poorer members and youth.
CPM’s delinquency rate,
18.65 percent in December
of 2001, has been successfully reduced to five
percent as of August, 2005.
CPM now has a net profit.
As CPM’s position
strengthened, its membership grew from 477,396
in December, 2001 to
1,074,469 in August, 2005.
This 125 percent increase
in membership shows the
general public’s restored
faith in credit unions.
One program that ensures
this healthy membership
growth is youth financial
literacy. The number of
savings accounts among
youth grew from 2,336 at
the project start to 175,051
in June, 2005. This sizeable increase was due to a
number of improvements
to savings products focusing on these members.
Flagging
Ceremony
at San Antonio
City Employees
Federal
Credit Union.
Since then, California and Texas credit unions have
opened their doors to CPM management, staff and
board to provide a model of what strong, well-run and
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s
In October, 2004, 12 California credit union CEOs traveled
to CPM to learn about marketing and outreach programs.
From the ideas gathered in Mexico, their credit unions
have perfected outreach and marketing materials targeted
at Spanish-speaking members and new immigrants. The
U.S. partners have reported the partnerships contributed
to their staff’s professional development from both
credit union philosophy and technical perspectives. This
delegation also learned how important money transfers
are to Mexico’s economy.
California
Picture
On an international scale, WOCCU has used this relationship to showcase how credit unions can lead the
globalization of today’s economies in a way that perfects
services to members and improves their ability to increase
their income, build wealth and improve financial literacy.
This partnership has served as a model in taking the
International Partnership Program to the next level to
include sophisticated assignments, such as purchasing
software, establishing a call center, conducting risk
management and drafting operational manuals.
Ramón Imperial Zúñiga, CEO of Caja Popular Mexicana (far left) welcomes
visitors from the US Congress.
The success of the project is also evident in the growth
of CPM’s assets. Assets increased from US$472 million in
December, 2001 to US$1 billion in August, 2005, a boost
of 115 percent.
The California and Texas leagues initiated the partnership
because they felt compelled to help WOCCU improve
CPM in the traditional cooperative spirit of “people helping people.” As the exchange became more intense,
constant contact spawned greater understanding of retail
financial services in Mexico, which in turn sparked an
interest in fine-tuning California and Texas credit unions’
marketing efforts to attract Mexican immigrants to U.S.
credit unions.
Both leagues have expressed how invaluable this
relationship has proven to be for them, especially when
it comes to understanding the Hispanic market, increasing
awareness of the credit union difference, and creating
a fresh message to take to both state and federal legislators and other governmental bodies. “The opportunity
to be involved in the International Partnership Program
has increased passion for and the belief in what a credit
union should be,” said Linda Webb-Mañon, TCUL’s
communications director, when asked how TCUL has
benefited from the partnership with CPM.
Ramón Imperial Zúñiga, CEO of Caja Popular Mexicana and Mario
Galarraga, project director of Caja Popular Mexicana are being interviewed
by the trade press.
Webb-Mañon, who is also the partnership liaison for
TCUL, has been involved in a recently launched initiative
at TCUL, the Juntos Avanzamos (Together We Advance)
program, which seeks to equip Texas credit unions to better serve their Hispanic market. The league first identifies
credit unions it believes to have the “capacity to serve”
and then channels its resources to these specific credit
unions to increase their outreach programs. A flag with
the program logo is raised at each credit union awarded
the distinction. In January, three credit unions achieved
the designation. Ramón Imperial Zúñiga, CPM’s CEO
traveled to Texas to raise the flags. Webb-Mañon adds,
“Having a representative from Mexico come and literally
raise the flag at the credit union not only legitimizes
the program, it demonstrates the cooperative nature of
credit unions.”
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After first asking—with some unease—why Americans
were coming to Mexico, CPM officials have come to
rely on Texas and California credit union officials as
colleagues and partners in mutual endeavors. The partners have achieved a level of trust and confidence that
facilitates the exchange of advice and support. The
international nature of the credit union mission and its
uniqueness has overcome cultural, geographical and
language impediments.
World Council is pleased to be the bridge linking the
California, Texas and Mexican movements together.
Their progressive vision has improved and strengthened
the credit union system while overcoming cross-national
limitations and obstacles, helping each other and ultimately their own members.
–by Victor Corro
International Partnerships Manager, WOCCU
3/16/06 2:40:05 PM
In 1950, U.S. President Truman dedicated a building in
honor of credit union pioneer Edward A. Filene and said:
“In whatever country they may be found, these [cooperative] activities speak a common language... Their common
language may be found in the principles of self-help,
mutual assistance and democratic control.”
program that integrates all credit union members in
frequent meetings to discuss issues and nominate members,
resulting in more potential candidates, more diversity and
stronger member involvement in the recruitment process.
Pagnussat states, “This program provides Brazilian credit
unions with good board members.”
One of the most distinctive features of credit union
democracy is a board of directors which plays an
essential role in the success of the credit union. The
elected board represents the interests of the membership,
selects the CEO and has ultimate authority over the credit
union. Therefore, the manner in which it is determined
who will be sitting on the board can make a fundamental
difference in the governance and performance of the
credit union.
Board Elections
In a recent study published by the Filene Research
Institute, entitled Recruitment and Selection Practices at
Credit Unions Boards, author William Brown, assistant
professor at Arizona State University collected surveys
from 713 credit unions across the U.S. to find out how
credit unions recruit and select qualified board members.
In order to evaluate practices in countries representing
credit union systems along different stages of growth,
World Council of Credit Unions (WOCCU) compared
responses from the U.S. movement by asking similar
questions to credit union representatives from Ireland,
Peru and Brazil.
Recruitment of Board Candidates
Brown discovered that U.S. credit unions use fairly limited
board recruitment strategies. The most prevalent practices
include:
• networking and word of mouth,
• relying on the existing volunteer network, and
• using a nominating committee often dominated by
existing board members.
As a result, credit union board candidates in the U.S.
tend to be similar to current board members. The Filene
study suggests developing board member profiles and job
descriptions and adopting more comprehensive recruitment systems.
A nomination committee is the most common way to
attract board candidates in both Ireland and the U.S.
In Peru and Brazil board candidates are nominated at
annual meetings. Mr. Alcenor Pagnussat, president of
Confederaçào Interestadual das Cooperativas Ligadas ao
SICREDI in Brazil explains that SICREDI has a specific
In all four countries, board directors are elected based on
the one-member, one-vote principle. However, responses
to Filene’s survey paint an unenthusiastic view of board
elections in U.S. credit unions:
• Most board positions are uncontested, and
• 92 percent of smaller credit unions (assets US$25
million or less) and 46 percent of larger credit
unions (assets US$500 million or more) hold
board elections only at annual meetings.
As a result, the process of open elections is limited in
the U.S. because board elections are generally open only
to those attending annual meetings. Relatively few U.S.
credit unions use mail ballots or Internet voting which
would provide a more open process to elect the board.
Manuel Rabines, CEO of the National Federation of Savings
and Credit Cooperatives explains that in Peru candidates
are nominated at the annual meeting and because of the
spontaneity of the nomination procedures “sometimes
people with less training win the elections.” Brazil and
Ireland have different nomination procedures, but voting
is also held at annual meetings; however, credit unions in
these countries rarely have uncontested board elections.
WOCCU’s International Governance Principles state that
the annual meeting of the general assembly should be
adequately promoted to ensure sufficient member participation. Credit unions should also consider having more
candidates to choose from and giving every member the
opportunity to vote for their representatives in a variety
of ways: attending the annual meeting, by mail or via
the Internet.
Board Representation and Terms
The Filene study confirms most credit union boards fail
to reflect the changing demographic composition of their
memberships. According to the survey, the make-up of
U.S. board members is typically white (89%), male (75%)
and over 50 years old (75%). Moreover, the study suggests
this will continue until different practices are instituted.
Only 15 percent of surveyed credit unions use term
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limits for board
members, although
the majority of U.S. CEOs
and one-third of board
chairs feel there should be a
limit on the number of consecutive terms a director may serve.
Credit unions must strike a
balance between diversity
and efficiency in designing the
structure of their boards. John
O’Halloran, head of legal & secretariat at the Irish League
of Credit Unions observes that in Ireland there is no term
limit either, but the board turnover is high: “It is difficult
to attract volunteers in today’s affluent society (not just for
credit unions). Some credit unions have reduced the number of directors required to serve on a board,” O’Halloran
adds. Despite having smaller credit unions than the U.S.,
Irish credit unions have much larger boards, 13 on average.
Across the four provinces, board sizes typically range
from 4-15 individuals. In the U.S., board sizes average
seven for smaller credit unions and nine for larger ones.
Some countries use board rotation techniques. In Brazil,
the law states one-third of credit union board members
must be replaced at each election. In Peru, the maximum
number of consecutive terms that may be served is two.
Rabines adds, “The admittance of young members
with new ideas onto the board should be taken
into consideration.”
WOCCU recommends rotating directors to encourage
fresh viewpoints in the boardroom. Unlike for-profit
institutions, credit unions should strive for a board that
responds to the demands of the general membership. By
having a representative board, credit union members are
more likely to have a voice and feel a stronger connection
with their credit union.
Quality of Board Members
An area of concern, according to most surveyed CEOs and
a minority of board members in the U.S., is that boards
tend to re-nominate any incumbent who wants to serve
another term, even if the director did not contribute much
during the previous term. In Brazil, “If a director does
not attend two consecutive or four alternated meetings,
he or she is removed from the board,” notes Pagnussat.
The assessment of individual board member performance
could be an effective but difficult strategy. Implementation
of term limits might be a more practical solution.
Training is another key component of the quality of board
members, especially in developing credit union systems.
Rabines agrees, “Generally the achievements of the board
of directors in Peru are acceptable, but they could be better. In this sense, better training is necessary for directors,
which would allow them to make adequate decisions
for the benefit of the institution.” WOCCU’s Governance
Principles suggest expanding training opportunities to
Board Characteristics in Select Countries
U.S.
Ireland
Peru
Brazil
Board Size
4-15
(average 8.16)
7-15
(average 13)
5-7
n/a
5-12
n/a
Average credit union
membership
9,250
4,670
2,830
2,209
Typical term for
board members
3 years
3 years
3 years
3 years
Maximum number of
consecutive terms
Unlimited
Unlimited
2 terms
1/3 of the board
should change
every election
Compensation paid to
board members
No
Only for the
treasurer
Yes
Only for the president
and vice-president
For more details please visit www.filene.org and www.woccu.org
develop more qualified board members and to prevent the
loss of organizational knowledge as directors are rotated.
In Conclusion
Good credit union governance begins with board
recruitment and selection practices. WOCCU strongly
believes credit union boards are in a unique position to
add great value to their institutions and help better serve
members. Credit unions across the globe have many
differences. However, we all share common guiding
principles of democracy and self-help, and we can
learn from each other by engaging board members and
executives in conversations about best practices in credit
union governance.
WOCCU’s International Credit Union Governance
Principles help credit unions worldwide address the
spectrum of duties and responsibilities needed to efficiently and effectively operate a credit union: “...board
members and managers have an obligation to maintain
ethical conduct and professionalism and to speak with a
single voice once board decisions have been made.” The
Filene research and WOCCU’s Governance Principles can
help us to reach a common language in improving credit
union governance.
–by Liliana Tangwall, Credit Union Analyst, WOCCU
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WOCCU’s Most Diverse Program Translates into Many Languages
Funded by the U.S. Agency for International Development
(USAID), the World Council of Credit Unions’ Cooperative
Development Program (CDP) aims to support environments in which savings and credit cooperatives, credit
unions can grow and thrive. Working in partnership with
USAID, WOCCU’s current CDP project is designed to
address four development challenges: building national
and international cooperative business networks,
advancing legislative and regulatory change, building
human capital and adapting model credit union
building to challenging operating environments. The
US$3.7 million program runs for five years, June 2004–
May 2009. CDP focus countries include: Afghanistan,
Ecuador, Kenya, Nicaragua and the Philippines.
Outreach to Underserved Populations
In both the Philippines and Ecuador, WOCCU has worked
with Freedom From Hunger to develop and implement
Savings and Credit with Education (SCWE) technology
in credit unions. Through SCWE, credit unions reach far
into the underserved community through field agents
who conduct transactions and deliver training modules
to groups of poor women. The transfer of SCWE
technology from the Philippines to Ecuador allowed
WOCCU to increase its knowledge of the product and
investigate its sustainability in credit unions operating in
different types of environments.
What makes the CDP unique are its global activities,
flexibility to develop innovative methodologies tested in
WOCCU selected focus countries, coordination with other
U.S.-based cooperative development organizations, and
overall design to advance
World Council’s vision,
mission and strategic
objectives. Through the
CDP, World Council’s work
is impacting credit unions
throughout the world.
Creating Credit UnionFriendly Environments
In coordination with seven
other U.S.-based cooperative development organizations (ACDI/VOCA,
Americas Association of
Cooperative and Mutual
Insurance Societies,
Community Housing
Foundation International,
Land O’Lakes, National
Cooperative Business
Association, National
Rural Electric Cooperative
Association and National
Telecommunications
Cooperative Association),
WOCCU is involved with
an examination of worldwide cooperative development laws and regulations.
The goal is to identify types
of laws and regulations
that enable cooperatives
to thrive and avoid those
that do not. Findings and
tools from the collaborative program, known as
CLARITY (Cooperative Law
and Regulation Initiative),
will be made available to
international organizations,
development
advisors,
governments and grassroots level cooperatives
to support local reform.
The CDP funding also supported the production and
distribution of the second
edition of WOCCU’s Model
Law for Credit Unions and
the Guide to International
Credit Union Legislation,
available and distributed in
both English and Spanish.
WOCCU has negotiated a
formal agreement with the
Ecuadorian Superintendency
of Banks to provide an
advisory reference for
credit union standards,
regulations and supervision. Through the separate
WOCCU-Ecuador project,
WOCCU is assisting 10
credit unions to become
licensed and supervised by
the Superintendency.
In Kenya, WOCCU staff has
worked to prepare for the
passage of a credit union
specific law, to conduct
an impact study to assess
the current financial condition of credit unions, and
to provide a recommendation of systems, tools and
methodologies required
to design and establish a
r egulatory agency for
credit unions.
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Kenya • Nicaragua • Philippines • Ecuador • Afghanistan
Collaborating with the credit union
movement and legislators in
Nicaragua, WOCCU has refined a
draft of the proposed general cooperative law.
Joining Together for the
Common Good
WOCCU is working with credit unions
to develop cooperative business
networks to provide new services,
increase membership and achieve
economies of scale.
In Ecuador, WOCCU has led the
construction of a network in which
members of one credit union can
access the services of another credit
union (known as shared branching). Of the 13 credit unions in
this RedCoop network, 10 are also
attracting unbanked remittance recipients by becoming payers through
WOCCU’s International Remittance
Network (IRnet).
Opening the United States-to-Africa
remittance corridor for credit unions,
WOCCU has joined three large,
progressive credit unions and their
league in Kenya to form a joint
venture to offer remittance services
to credit unions across the country.
Strengthening Informed Participation and Governance
By training credit union managers
and board members in technical
areas, such as financial accounting,
marketing and policy development,
WOCCU is able to extend its expertise to support safe and sound credit
unions through better managers and
boards—even in countries where
WOCCU does not currently have any
development projects.
In November, 2005, the first class of
Certified SACCO Professionals—20
managers and 18 board members
—graduated from the StrathmoreWOCCU African Management
Institute (SWAMI). Held at Strathmore
University in Nairobi, Kenya, SWAMI
is a three-tiered accreditation program designed to equip credit union
managers and board members with
the necessary tools, training and
understanding of policies and governance procedures to safely manage and operate credit unions.
SWAMI has drawn participants from
eight different countries including
Kenya, Uganda, Seychelles, Malawi,
Ghana, Botswana, Swaziland and
South Africa. The SWAMI program is
supported jointly by CUNA Mutual
Foundation.
leagues and
generously
and funding
Many U.S. credit union
credit unions have also
provided scholarships
for this program.
CDP funds have also supported
development of a credit union board
member training program in Ecuador.
The seven-weekend training program
was launched in October, 2005 with
34 board members attending from 15
credit unions around the country.
Starting from Scratch
In Afghanistan, where credit unions
have never before existed, WOCCU
has drawn from its experience in
other parts of the world and a number
of funding sources, including the
CDP, to establish two credit unions
in the northern part of the country.
Adapting to the environment, WOCCU
has incorporated both traditional
and Islamic banking principles into
its Model Credit Union Building
methodology. Each credit union is
operated by democratic governance
principles and has given women equal
opportunity to join and participate in
the governance of the credit union.
With such a diversity of activities
and locales, the CDP is cooperative
in every aspect—linking WOCCU’s
work with that of other cooperative
development organizations, joining
field activities with headquarters’
best practices staff, and facilitating an
exchange of information and experiences to ensure the vibrancy of the
global credit union movement.
Strathmore-WOCCU African Management Institute
(SWAMI) First Graduating Class – November 2005
–by Molly Schar
Public Affairs Manager, WOCCU
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The Role of Credit Unions in Globalization
Mary Robinson epitomizes what it
means to care. A lifelong human
rights advocate, this first female
President of Ireland was the first
Head of State to visit Rwanda after
the 1994 genocide and Somalia after
the 1992 crisis. She has received
many awards and honors for her
work in human rights, including the
CARE Humanitarian Award for her
work in Somalia. In 1997, Robinson
resigned as President to serve as
United Nations High Commissioner
for Human Rights for five years,
visiting over 80 countries to fight for
the underprivileged. She argues that
with the rise of technology, a shared
value and accountability system
must be intact in the global landscape. Hence, in October, 2002, she
founded Realizing Rights: The Ethical
Globalization Initiative (EGI) “to
integrate concepts of human rights,
gender sensitivity and enhanced
accountability into efforts to address
global challenges and governance
shortcomings,” noted Robinson. In
recent years she took a seat on the
Commission on Legal Empowerment
of the Poor, a new independent
global initiative that explores how
countries can reduce poverty through
legal reforms. President Robinson
took a couple moments out of her
busy schedule to share with Credit
Union World her views on ethical
globalization, the role of credit
unions in ensuring human rights,
gender equality, and the importance of financial access for people
around the world. Projects closest to
her heart include bettering the lives
of women and children. She aligns
many of her views with the missions
of World Council of Credit Unions,
Inc. (WOCCU) and has been quoted
as saying, “We must put into practice
the values of freedom, equality,
tolerance, respect and shared responsibility which can unite the north
and south, left and right, rich and
poor, and the us and them.”
The 2003 United Nations Development Report states 54 countries were
poorer that year than they were
in 1990. One billion people were
without access to clean water and
another 2.4 billion lacked access to
even basic sanitation. Every day,
30,000 children under the age of five
died of preventable diseases, such
as dehydration, diarrhea, respiratory infections, measles and malaria.
Robinson compares this sad reality
with “a silent tsunami every five
days; 70 relentless tsunamis every
year.” Could globalization account
for this downward spiral in developing countries?
“Can globalization work for the
world’s poor?” Many do blame the
negative effects of globalization—
such as trade disparity—for exacerbating these problems. Robinson,
on the other hand, takes a different
stance. She believes we should not
fight globalization but reform it.
By creating EGI, which advocates
“Credit unions
help people
become actors
in social change.
I believe one
great principle
of life is
participation.”
morally responsible business practices globally, she demonstrated her
dedication to this cause. Collaborates
of EGI include The Aspen Institute,
Columbia University and the International Council on Human Rights
Policy. Under the umbrella of EGI,
these powerful institutions are committed to form alliances with key
stakeholders to address issues such as
human rights and gender sensitivity.
EGI prides itself on playing three
important roles: catalyst, convener
and communicator.
In addition to her work with EGI,
Robinson is also passionate about
the global impact of the credit union
difference. Robinson’s first exposure to WOCCU and its missions
was during the World Credit Union
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Former President of Ireland and Founder of Realizing Rights: The Ethical Globalization Initiative
Conference in Cork, Ireland in 1994.
At this conference she learned more
about the advantages of credit unions
in underprivileged communities. She
was impressed by the solidarity of
the group and views World Council
as a positive example of worldwide
economic development.
She shares WOCCU’s belief in the
importance of credit unions in the
fight against global poverty: “Look
at the reality of poverty. It means
a lack of access to credit and ways
to benefit from assets.” Robinson
also believes credit unions help staff
and credit union members become
actors in social change. “One great
principle of life is participation,”
she stated, adding that freedom is a
necessary precursor to participation.
“Both while I was the President of
Ireland and as the United Nations
High Commissioner I saw the importance of having access to financial
services,” said Robinson. “When I
met with groups I often asked about
access. Poverty is associated with
lack of power.”
Moreover, Robinson sees cooperative
financial services as a vital tool in
transforming women’s roles in society.
In March, 2002, she attended a
meeting of women’s groups seeking
access to small amounts of credit
in Kabul, Afghanistan. Gaining
credit was “particularly important to
them,” she said, “because microenterprise opens the doors to education
and power.” Through the financial
services credit unions offer, women
can support their families with their
own microenterprises—and are no
longer disenfranchised.
Championing
another
issue affecting women,
Robinson also visited
Tanzania to speak on the
poverty and HIV/AIDS
impact with women
having a higher occurrence of transmission
and often paying
the highest price.
Women and girls
comprise nearly
half of the 39 million people living
with the disease. In sub-Saharan
Africa alone, over three-quarters of
all people aged 15–24 living with
HIV are young women. HIV-positive
women are treated like second-class
citizens. Shunned from society, they
are subjected to sexual violence and
must engage in “survival sex” to
afford to eat. EGI is one of many organizations determined to empower
women with education and to form
powerful alliances with female corporate leaders.
Robinson’s unique proactive stance
on combating globalization comes
from her roots. As President and
Senator, she visited many Irish institutions to recall a time when Irish
people died of hunger and disease
in the potato famine of the 1800s.
She encouraged them to see the
link between Ireland and developing countries. Because of her influence, many Irish residents realize
the importance of financial empowerment through credit unions in
Ireland and throughout the world.
Whether she is considered an academic, lawyer, campaigner, Senator,
Commissioner, President or global
humanitarian, there is no question
that Robinson’s innovative approach
to ethical and responsible globalism
will impact those who have less for
generations to come.
Robinson noted, “I would like to
challenge the members of World
Council of Credit Unions to explore
ways of widening knowledge of
small countries. Encourage business
and make it part of your corporate responsibility and community.
Nationally, I would like to compliment World Council for the intelligence of having the conference in
Ireland. Credit unions are part of the
success story—agents for change in
my home country and in developing
countries around the world.”
Former President Robinson is presiding as one of World Council’s
keynote speakers at the 2006 World
Credit Union Conference in Dublin,
Ireland. She will address the conference participants on the topic “Roles
of Credit Unions in Globalization.”
–by Kimberly Johnston
Marketing & Communications Officer, WOCCU
Dublin, Ireland
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reach credit union members through the strong and
trusted networks of subSaharan Africa’s Savings
and Credit Cooperatives
(SACCOs).
AFYA credit union and SACCO staff members participating in two weeks
of intensive training are now known as peer leaders (December, 2005).
Imagine you manage a credit union branch in a rural
community in Kenya. The reality of HIV/AIDS in your
country is hard to miss—people are dying in record
numbers and the government has declared a state of
emergency. Your credit union members are dying; you
worry about the future of the credit union because you
are paying out costly death benefits every month and
losing savers and borrowers. Other credit union members
are taking in orphaned children and must borrow more
to provide their new charges with adequate food, shelter
and school fees. Still other credit union members are getting sick and can no longer work. They come to the credit
union to withdraw savings and seek emergency loans.
They can no longer make loan payments. Furthermore,
your own staff members are affected themselves, taking
in children, getting sick and even dying. These people
are your friends, your family, your neighbors, and you
don’t know how to help.
In 2004, a United Nations AIDS Report on the Global
AIDS Epidemic showed that in Kenya—a country where
an estimated 1.2 million adults and children were
living with HIV—150,000 died leaving 650,000 children
orphaned in 2003 alone.
Through the CDP, World
Council launched a pilot
program designed to
address the impact of the
pandemic in credit unions.
Working with JHPIEGO
and AFYA SACCO, a
Kenyan credit union with
branches all over the
country, including some
extremely rural settings,
WOCCU is facilitating a
peer leadership program.
Credit union staff members
volunteer to be trained and
later conduct training of
other staff members and
credit union members on
HIV/AIDS prevention and
treatment options. In a
complementary program,
WOCCU is working with
AFYA to strengthen its
operations so it will remain
strong despite the financial
obstacles created by members taking in orphans,
getting sick, losing their
jobs and dying. WOCCU
Credit unions are poised to play a critical role in helping their members through the devastating HIV/AIDS
epidemic. In 2005, World Council of Credit Unions
(WOCCU) partnered with JHPIEGO, an international
public health organization, to develop and conduct the
training program and certification process of the peer
trainers. Through this small pilot program, funded by
the U.S. Agency for International Development (USAID)
and World Council’s Cooperative Development Program
(CDP), WOCCU created a replicable and scalable tool to
is also developing specialized credit union products
and services tailored for the
HIV/AIDS environment.
When Dionne Mulumba, 24,
stepped into the airy conference room at the Jacaranda
Hotel in the Westlands
section of Nairobi, Kenya,
she began giggling almost
immediately and didn’t
stop for nearly a week. Part
of a group of 14 from her
credit union, AFYA SACCO,
Mulumba probably was
not any more uncomfortable with the sensitive topics being discussed in the
training than her peers. She
just didn’t hide it as well.
The group, selected from
the credit union’s 279 staff
members, came from the
Nairobi headquarters and
three branch offices to
take part in a new program designed to disseminate HIV/AIDS prevention and treatment to the
SACCO’s 45,000 members
by “cascading” the information through peer trainers.
The 14 who participated
in the initial two week
During the closing
ceremony, a participant
passes the flame—
representing hope
and knowledge—
from his candle to
that of his colleague.
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training held from November 28 to
December 9, 2005 will teach the
material they have learned to a number of their colleagues, who will in
turn share with credit union members
through community educational sessions and one-on-one consultations.
“The training can reduce the spread
of HIV/AIDS because SACCOs reach
the common person in the village
unreachable by other organizations,”
explains Mulumba. Kenya’s 2,767
credit unions, with 2.1 million
members, have a penetration rate of
more than 11 percent.
The first week of the pilot training
program focused on how to effectively educate peers with sessions
on planning presentations, creating
a positive learning climate, using
audio-visual aids, delivering interactive presentations and understanding
peer leadership and the participatory
processes. The program also included
an introduction to condom usage with
anatomic models, basic HIV/AIDS
facts and comprehensive HIV/AIDS
care—including infection prevention,
psychosocial support, socioeconomic
support, human rights and legal
support, and referrals and linkages.
As flip-chart paper began to cover the
walls in the conference room, participants became more comfortable
with the subject matter and began to
speak frankly about sexual relations.
In the second week, the workshop
was turned over to the participants
to conduct training exercises with
coaching from the JHPIEGO facilitators. Participants’ presentation skills
developed as they learned about risk
assessment, the link between alcohol
use and HIV/AIDS and how to negotiate for safer sex, as well as become
more familiar with condoms.
“The training has gone beyond basic
HIV/AIDS knowledge and shared
real life knowledge to enable us
to open our eyes beyond what we
might otherwise see,” says Francis
Macharia, a 28-year-old participant
who works in AFYA SACCO’s planning department. “I hope to share
information to reduce the ignorance
Part of the required training is that every participant
become comfortable leading group exercies.
and stigma associated with HIV/
AIDS. There is a need to spread the
word about HIV/AIDS as its effects
are touching us personally and the
society in general.”
In countries where the prevalence of
HIV/AIDS has dropped, researchers
attribute the decline to behavior
change—informed people making
decisions about their sexual behaviors
to manage risk. The most dramatic
drops, as evidenced in Kenya, have
been within the urban populations,
stressing the need for increased informational outreach to rural areas.
Implementing a peer leadership program provides more than a low-cost
alternative to dispatching experts.
Because peer educators are members
of the communities themselves, they
are trusted sources of information
and able to break through barriers
to discuss sensitive matters in confidence to bring about sustainable
behavior change.
“I want to be equipped with skills so
that I can train others on how to help
stop this disease,” says participant
Beth Mukiri Muthuuri, a 31-year-old
mother of two and AFYA SACCO
customer care officer.
For these peer leaders, spending
two weeks getting comfortable with
training methods and HIV/AIDS
information was the beginning of
a long process that will take them
away from their home offices and
regular job duties down long, dusty
roads to rural credit unions and the
front lines of HIV/AIDS—all on a
volunteer basis with no extra compensation for the additional work.
Yet an effective peer education program is only part of the solution.
A 2002 WOCCU study of Kenyan
credit unions found they can play
an important role in mitigating the
economic impact of the HIV/AIDS
epidemic by providing members
with savings, credit and insurance
products to answer needs created
by some members falling sick and
dying, and other members caring
for sick family members or taking
in orphaned children. To do this,
credit unions must become stronger,
building loan loss provisions and
institutional capital and decreasing
delinquency in the face of increased
deaths and inability to repay loans
due to HIV/AIDS. The same staff who
will interface with members to share
HIV/AIDS information and referrals
must be equipped with information
about credit union products and
services that can respond to the
financial needs of affected members.
“People are dying. It is so sad,” says
Mulumba. “But we are coping.”
–by Molly Schar
Public Affairs Manager, WOCCU
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Continued from Page 3
tend to have affinity fields of membership (state employees, military,
large employers, etc.) as opposed to
being community-based, in which
case a merger could potentially
create greater integration.
Recent Mergers and Acquisitions
• In the past year, two Canadian
credit unions, Niagara CU and
HEPCOE CU, merged to create
the third largest credit union in
Canada, Meridian CU, with combined assets of US$3 billion and
43 branches.
• On January 1, 2006, Australian
National Credit Union and Credit
Union Australia merged to create
the largest credit union in Australia,
with US$3.8 billion in assets and
76 branches.
• Adelaide-based CPS Credit Union
and Canberra-based Community
CPS merged to create the fifth
largest credit union in Australia
in 2005, with combined assets of
US$1 billion and 19 branches.
• The largest U.S. credit union merger
occurred in May, 2004 between
Portland Teachers Credit Union
and Oregon Community Credit
Union. The combined entities held
US$1.8 billion in assets, making it
the 33rd largest credit union in the
United States.
• The second largest credit union in
Canada formed in May, 2002 when
Surrey Metro Savings Credit Union
and Coast Capital Savings merged
to create what was at the time a
US$4 billion credit union.
Richard Thomas, vice president of
trade services and corporate secretary of Credit Union Central of British
Columbia notes, “In the ‘80s, consolidations occurred among small credit
unions that were weak and unstable. In the 1990s, mergers occurred
among large credit unions seeking to become larger and
gain efficiencies. In recent years the number of mergers
in British Columbia has slowed because all of the
obvious mergers have already occurred.”
There remains a sense among some in Canada that the
primary path to growth is either through mergers or
expansion across provinces.
Internal Growth
The largest credit unions in the world achieved their
size not through mergers but through internal growth.
Navy Federal Credit Union with US$24 billion and
State Employees Credit Union with US$12 billion in
assets have had mergers in their past, but those that
occurred have been small. For example, in 1998 Navy
Federal which had US$10 billion in assets and 1.7 million members merged with Joint Services Credit Union,
which had US$7.4 million in assets and 3,095 members.
While VanCity Savings Credit Union in Vancouver, Canada
has merged with over 20 credit unions throughout its 60year history, mergers have not been its engine of growth
in recent years. Chris Dobrzanski, senior vice president of
risk management states, “In the past decade approximately
10 percent of our growth has come through mergers. The
other 90 percent has occurred internally.” Dobrzanski
continues, “In the last year alone, we grew by US$800
million—all of which was internal organic growth.”
Today VanCity has over US$9.2 billion in assets.
Alternative View
Competition for credit unions is real. Credit unions
compete against banks, other credit unions and
increasingly, non-bank finance companies. Is it
realistic or even desirable for credit unions to
try to compete against banks in a marketplace based on cost efficiencies achieved
through scale? Given the disproportionate
size advantages banks maintain in all three
markets, it’s hard to argue that merging
should be a principle vehicle of competition
for credit unions.
In 1998, Alan Greenspan, chairman of the Federal
Reserve stated, “There are no clear-cut findings that
suggest bank mergers uniformly lead to efficiency
gains. However, the evidence suggests that there
are considerable differences in the cost efficiencies of
banks within all bank size classes, implying that there
is substantial potential for many banks to improve the
efficiency of their operations, perhaps through mergers.”
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Credit unions are typically able to offer the basic transaction and product needs most consumers desire from
their financial institutions, whether they do it themselves
or in partnership with other credit unions. In fact, across
Australia, Canada and the United States, credit unions
consistently outperform banks in independent customer
satisfaction surveys. Recognizing this, it is hard to understand why some credit unions feel the urge to merge.
A drive for size could even backfire on some credit
unions. They could find themselves so large that
they lose aspects of individualized service, support and
connections to local communities and become viewed as
big box retailers, yet without the efficiency of their larger
bank competitors.
If the financial industry evolves as some have projected,
there will be only a few large and small successful
financial institutions—with those in the middle struggling
to carve out a niche.
Another Model
Recognizing the limitations of traditional mergers, VanCity,
in November, 2005, piloted a new genre of mergers,
which they call their Partnership Growth model. Eightyseven percent of voting members of Squamish Credit
Union in British Columbia voted to be included under the
VanCity umbrella. Under the arrangement, Squamish will
operate as an independent business unit within VanCity,
retaining its brand, its management team and an elected
partner board that will continue making decisions about
how to operate in the community. VanCity will provide
core banking services, including accounting, a treasury,
foreign exchange and technology functions for the US$53
million operation.
Squamish’s 7,000 members will enjoy dual membership, with all the privileges of VanCity’s members, while
maintaining involvement in decisions affecting Squamish.
The assets of Squamish are represented on the balance
sheet of VanCity, and VanCity is legally responsible for
the entity.
To move beyond low single digit membership growth
figures, credit unions will need to continue to look at
strategies for how they can compete. While a merger
may produce efficiencies it does not add any new
members to national credit union movements, it just
combines members into fewer institutions. As the
market consolidates, the organizations that grow will
likely do so on the basis of one factor alone: the
quality of management which can serve as the ultimate
driver of growth.
–by Dave Grace
Senior Manager, Association Services, WOCCU
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As the United Nations (UN) concludes its 2005 Year of Microcredit,
there is ample evidence to show that
credit unions are one of the best
providers of innovative, cost-effective
microfinance products and services.
In the UN’s recently published report,
“Building Inclusive Financial Sectors
for Development,” known to most
as The Blue Book, credit unions are
recognized as early innovators in
microfinance and “continue to show
lower costs and higher efficiencies
in delivering services than many
other institutions and often target
rural areas.”
The UN created The Blue Book in a
collaborative effort by a consortium
of international players including
the World Bank, the International
Monetary Fund, the International
Fund for Agricultural Development
and the Inter national Labour
Organization. In addition, the UN
held regional multi-stakeholder
consultations in the Middle East,
Africa, Asia and Latin America, and
also gathered information during a
global e-conference in the spring of
2005, through in-depth interviews
with experts in the field and during seminars organized by partner
organizations. World Council of
Credit Unions (WOCCU) participated
in two invitation-only stakeholder
meetings held by the UN in Geneva
and New York.
cuworldv8i1.indd 16
Designed to offer a “vision of what
inclusive finance can be,” The Blue Book
is a guide, not a blueprint, for nations
who hope to create a more inclusive
financial services environment.
“This is food for thought for policy
makers and other stakeholders as
they work to establish policies that
create inclusive finance,” said Kathryn
Imboden, senior policy advisor for
the United National Capital Development Fund (UNCDPF) and The Blue
Book project leader.
Not surprisingly, many of the publication’s findings support core credit
union principles.
Providing Financial Services to
the Poor is More than a Social
Policy Issue
When the poor have access to safe
savings, loan products designed to
meet their needs, and affordable
financial services, they contribute to
their own economic stability and the
economic stability of their community
and country. Credit unions have long
recognized this fundamental truth.
Economies of Scale and Scope
Drive Sustainability
Cost reduction is critical to the longterm success of any financial institution, but especially to those that serve
the very poor. Because the poor
typically conduct a high volume of
small transactions, it’s crucial that
financial institutions achieve economies of scale. Economies of scope
can also help to lower and spread
costs and can be achieved through
accessible products that increase
demand, technological and operational improvements that decrease
cost, and alliances that allow for a
broader range of services.
World Council is achieving these
needed economies of scale and
scope by helping credit unions to
provide services tailored to their
members—which drives credit union
demand—and to create partnerships
between developed and emerging
credit union systems that lead
to technological and operational
improvements. For example, the
partnership between the California
Credit Union League, Texas Credit
Union League and Caja Popular
Mexicana led to a host of time- and
money-saving technological upgrades.
“Self-standing microfinance institutions don’t always create sufficient
growth to serve the vast needs of the
unbanked,” says Imboden. “Credit
unions can be a viable way to deliver
microcredit and deserve a closer look.”
~ 16 ~
3/16/06 2:41:44 PM
Savings Mobilization Can be a CostEffective Way to Fund Loans
“The ability to mobilize savings is a
very powerful tool for poverty eradication,” says John Tucker, deputy
director of inclusive finance within
the UNCDF. “When institutions
design customer-friendly products
and services where people have a
stronger propensity to save, rather
than take on debt, it provides a very
important tool for poor people to
work their way out of poverty. One
of the key benefits of credit unions is
their ability to offer savings services
to the poor.”
Funding loans through savings
also encourages independence and
eliminates concerns about taking
on unacceptable levels of foreign
exchange risk.
Serving a Diverse Membership
Base Can Improve Service to
the Very Poor
“By serving a diverse group of people
from different social and economic
strata, credit unions can help more
poor people than if they only focused
on the poorest of the poor,” cites
Dave Richardson, WOCCU’s senior
manager, technical development.
An excellent example of this occurred
in a WOCCU program in Guatemala.
In 1987 credit unions in that country
had mobilized only US$2.8 million
in savings deposits and member
share accounts. By broadening their
service offerings to appeal to poor
and lower-middle class members—
in addition to the very poorest
members—these credit unions were
able to grow their total portfolio
to US$207 million by 2004. Lower-
middle class depositors made up just
16,064 of the credit union’s 345,000
accounts but represented 69 percent
of the savings/share account volume;
302,000 accounts had an average
balance of US$37. The deposits of
the lower middle class provided the
liquidity the credit union needed to
lend to the very poor.
Government Must Play an
Appropriate Role
Governments can be both a help
and a hindrance when it comes to
successful microfinance. Government
involvement in creating a prudent
regulatory framework can help ensure
the security of members’ funds and
increase their willingness to deposit.
But governments can also compromise the success of microfinance
efforts with interest rate controls that
limit access to funds, excessive documentation, balance requirements
that are difficult or impossible for
institutions/members participating in
microfinance to achieve, or policies
created for short-term political gain
that impede long-term efforts to
create financial inclusion.
“Regulation and supervision are
crucial once savings are involved,”
says Imboden. “World Council has
been a driven stakeholder when it
comes to appropriate regulation.”
During its more than 30-year
history, World Council has gained an
excellent understanding of the role
effective government policy can play
in improving microfinance opportunities, and has worked in countries
as varied as Ecuador and Kenya to
assist in putting appropriate regulatory policies in place.
Financial Institutions Must
Create and Follow Standards of
Transparency and Good Governance
Consumers will only participate in
a microfinance opportunity if they
believe they can trust the financial
institution to protect their deposits.
Recognizing this, World Council
created the PEARLS operational and
performance standards. These standards require participating credit
unions to meet baseline levels for
various measures—such as asset
quality, liquidity and growth—and are
recognized around the world for their
ability to ensure financial stability.
As community organizations, credit
unions generally gain the public’s trust
fairly easily. “Many countries have a
tradition of cooperative organizations. Credit unions have the advantage of community,” says Imboden.
Financial Institutions Must
Offer Needed Services
The financial realities of the poor
are unique: the poor are likely to
deposit and borrow very small sums
of money; they may require flexible
loan payment schedules that
reflect crop cycles; and they may
not have the official identification
documentation expected in developed countries. Credit unions have
long recognized and responded to
these diverse needs in their product
and service offerings.
For instance, in Ecuador, World
Council recognized that many credit
union members were field workers
who followed the harvests. They
were away from home for months
at a time and were paid in cash at
the end of each day. Theft was a
Continued on Page 19
~ 17 ~
cuworldv8i1.indd 17
3/16/06 2:41:59 PM
COUNTRY INDICATORS
National Capital: Colombo
Government Type: Republic
Population: 20,064,776
(July 2005 est.)
Area: 65,610 sq km
Inflation Rate: 11.2% (2005 est.)
Exchange Rate: 100.19 Rupees/US$1
(2005 est.)
GDP:US $86.72 billion (2005 est.)
GDP per Capita: US$4,300
(2005 est.)
World Council of Credit Unions, Inc. (WOCCU), with
the help of the United States Department of Agriculture
(USDA) Food for Progress Act, is funding credit union
development in an innovative way. The USDA donated
bread flour—or processed wheat—to the WOCCU-Sri
Lanka project for WOCCU to sell in the local commodity
market in Sri Lanka. WOCCU then used the proceeds—
over US$2.7 million—to carry out its “Credit Union
Finance Facility Restructuring” program.
The Federation of Thrift and Credit Cooperative Societies
of Sri Lanka (SANASA) signed on as WOCCU’s local
project partner, lending technical assistance through its
Institutional Development Unit (IDU). WOCCU employed
a private U.S. company to transport the wheat in three
shipments from December, 2005 through January, 2006.
In the past several years there has been a steady increase
in the consumption of flour in Sri Lanka as its people
consume at least one flour-based meal per day. The monetization of wheat flour will assist the country in meeting
nutrient and quantity demands, while also decreasing the
country’s wheat flour deficit.
Sri Lanka has also recently emerged from nearly two
decades of civil war, and the vast destruction from the
tsunami of December, 2004 wreaked further havoc on
the struggling society. Redevelopment is sorely needed
to heal Sri Lanka’s wounds. Credit unions can aid in that
redevelopment, but first they need to rebuild themselves.
District Credit Union Financial Facilities (DFFs) were
once a major source of liquidity for Sri Lankan credit
unions. However, many DFFs ceased operations during
the war and now struggle to catch up with credit unions’
demands. Thus, phase one of WOCCU’s program is the
restructuring and recapitalizing of four DFFs. These four
facilities represent 80 credit unions, 25,000 members and
US$3.6 million in loans. DFF success is crucial to the
success of their credit unions.
As part of the program,
each DFF is assigned an
internal auditor to perform
continual onsite supervision and provide technical
assistance. Restructuring
includes measures such as
revising lending policies
and installing an acceptable
system of records, while
recapitalization involves
issuing the DFFs subordinate debt.
During phase two, the
WOCCU-Sri Lanka Project
will turn its attention to the
credit unions themselves,
focusing on rehabilitation.
WOCCU’s previous work
in the country has identified several areas in need
of improvement, including accounting practices,
management systems and
credit administration. One
IDU role is to provide
training in these and other
key areas. Finally, in the
third stage of the project,
a supervisory framework
will be established to protect against future credit
union failure.
Sri Lanka’s primarily agricultural economy is growing, but it struggles with
the repercussions of a
Source: CIA World Factbook
CREDIT UNION INDICATORS
CUs: 8,444
Members: 865,230
Assets: US$56 million
Loans: US$38 million
Shares & Savings: US$27 million
Project Data July 2005
long conflict. Fortifying the
country’s credit unions is
a necessary step towards
rebuilding the economy, but it will take time.
Fortunately the effects of the
WOCCU–Sri Lanka project
will last beyond WOCCU’s
presence in the country.
“We are proud of our
accomplishments in Sri
Lanka, not just in this threeyear period, but for future
generations,” says Pete
Crear, WOCCU chief executive officer. “We’re working
side by side with Sri Lankan
credit union professionals,
training them and giving
them the tools to continue
with their own initiatives
once the project is completed. An added bonus
of this program is that
through practice, the IDU
will continue to enhance
its capability to restructure
other District Credit Union
Finance Facilities.”
~ 18 ~
cuworldv8i1.indd 18
3/16/06 2:42:12 PM
Continued from Page 17
constant threat and these members
had no way to send money to
their families. World Council created
a shared branching system among
Ecuadorian credit unions that allowed
workers to deposit funds in any
participating credit union. This gave
members’ families instant access to
their income and ensured its safety.
Remittances are another area where
World Council has helped to optimize resources for the very poor.
Remittances have become a critical
source of income for the impoverished of the world and help to fund a
variety of microfinance ventures. But
costly remittance fees—sometimes
as high as 20 percent of the transaction—greatly compromise the real
value of these funds. In 1999 World
Council launched IRnet, a costeffective remittance alternative that
has generated millions of dollars in
savings for its users.
Services Must Be Provided in
Challenging Areas
Those living in remote, rural areas
and under the threat of insurgency
and political upheaval still have need of
financial services. Providing services
in these areas can be difficult, and
even dangerous, but credit unions
have made a commitment to do
just that. In the rural areas of the
Philippines, WOCCU funded traveling credit union representatives who
brought the credit union to the countryside. WOCCU has also helped
to fund successful microfinance
opportunities in unstable areas like
Rwanda, Colombia and Afghanistan.
Education is Critical
Around the world, the poor are
frequently hampered by illiteracy,
particularly financial illiteracy. They
don’t understand their rights and
are intimidated by complex financial
documents they can’t read or understand. Credit unions, because they
are run for and by their members,
have achieved a position of trust and
are often able to reach out to consumers who would hesitate to join
another financial institution.
Women Must Be Allowed
to Play a Role
According to the State of Microfinance
Summit Campaign 2001 Report
(http://www.microcreditsummit.
org/papers/empowering_final.doc),
women made up nearly 74 percent
of the 19.3 million poor who were
served by microfinance institutions
that year. Women have an excellent
track record of effective microcredit
usage and repayment, but cultural
limitations often restrict their access
to microfinance and credit opportunities. In some countries women don’t
hold title to land or assets, may not
have control over their finances and
are more likely to be illiterate. Credit
unions have a long history of reaching out to women and creating products and services that address their
financial needs. In the Philippines,
for instance, World Council created
the Savings and Credit with Education
Program (SCWE), which was designed
to provide microfinance opportunities, business management skills
and health and wellness tips to the
extremely poor—especially women.
The program was embraced by the
women of many communities, a
number of whom are now owners
of thriving small businesses. A
similar program has been successfully
launched in Michoacán, an extremely
impoverished area of Mexico.
Improved Technology and
Infrastructure is Needed
In today’s world, technology is a
critical component of effective
microfinance, but its cost puts it
beyond the reach of many providers.
Solutions include public-private
initiatives to fund technology
upgrades and partnerships with
larger financial institutions. World
Council’s International Partnership
Program, which partners developed
and emerging credit unions, has
included a number of partnerships
where technology updates have been
a fundamental goal.
“We are pleased that credit unions
are so prominently discussed in such
an important U.N. document,”
said Brian Branch, WOCCU’s chief
operating officer. “As government
officials around the world look to
increase access to financial services,
they will reference The Blue Book for
years to come and acknowledge the
important role that credit unions play
in facilitating this goal.”
Savings and Credit
with Education
Program (SCWE)
members learn
about Financial
Education.
~ 19 ~
cuworldv8i1.indd 19
(above) This credit union member from Mexico started
her small business with the help of her credit union,
Caja Popular Mexicana.
3/16/06 2:42:33 PM
CU World: I understand that you’ve
also worked with a group from Russia?
Herbst: The Russian Credit Union
League wanted to meet with a large
U.S. league and came here to New
York. Like Puerto Rico, Russia doesn’t
have corporate credit unions, and
we were able to help them understand why corporate credit unions
are valuable to both established and
emerging credit union systems.
Joseph Herbst
President and CEO
Empire Corporate Federal Credit
Union was founded in 1977 with
a handful of employees, a volunteer board of directors and just a
few hundred dollars in assets. From
these humble beginnings Empire
has grown to become one of the
largest corporate credit unions in
the United States. Today Empire has
a national field of membership and
provides services to more than 1,000
credit unions in the United States
and its territories. It has US$4.2 billion in assets and is headquartered
in Albany, NY.
For the last five years, Empire has
been a committed World Council
Supporter. World Council spoke
with Joseph Herbst, Empire’s president and CEO, and Dirck Van
Deusen, senior vice president, corporate relations.
CU World: Why did Empire choose
to become involved in international
development?
Herbst: Empire is committed to
reaching out to those in need. Taking
our efforts to the international level
was a natural extension of what
we were already doing in the U.S.
We were hearing excellent reports
about World Council’s projects, and
Michael Connery (president and CEO
of U.N. Federal Credit Union and an
Empire board member) encouraged
us to get involved.
Through our work with World
Council, we’ve seen firsthand that
international development benefits
everyone. It strengthens the entire
credit union movement and gives us
the chance to learn from one another.
CU World: Is there anything else you’d
Van Deusen: Financial security is
critical to economic stability.
Everyone deserves a safe place to
save and access to affordable financial services. We have the resources
and experience to help others, and
World Council provides an excellent
way for us to do that.
CU World: Tell us about your work
with the New York State Credit Union
League, which recently partnered
with Puerto Rican cooperatives
(credit unions) in WOCCU’s International Partnership Program.
Van Deusen: I worked with Diane
LaVigna-Wixted, executive director
of the New York Credit Union
Foundation, to offer our Puerto
Rican counterparts an overview of
how credit unions, leagues, foundations and corporate credit unions all
work together. There are no corporate credit unions in Puerto Rico, so
I discussed the types of services a
corporate credit union can provide:
electronic services, check processing, technological assistance, as well
as the role we can play in corporate
deposits and borrowing, etc. After
learning about our services and benefits, four credit unions decided to
become members of Empire.
Herbst: Being part of this project
was a natural fit for us on two levels.
Puerto Rico is a U.S. territory, and
because they’re in the second Federal
Reserve district, their checks actually
clear through here. Plus, many of
our credit unions serve a predominantly Hispanic clientele. Through
this relationship we’re learning more
about the types of services and products that best benefit our members.
like to share about being involved
with international development?
Herbst: In the United States we
take a lot for granted. When you
hear what it takes to set up and
run a credit union in a developing
country—the commitment and the
sacrifice involved—it gives you a
new appreciation for how important
credit unions are and the true difference they can make.
Credit Union Highlights
International Partners—World Council of Credit
Unions, Texas Credit Union League, California
Credit Union League and Caja Popular Mexicana
accept the Herb Wegner Partnership Award for
outstanding program.
l-r: Gary Plank, WOCCU board chairman;
Vadim Kalinichev, Russian Credit Union League
president; and Pete Crear, WOCCU chief executive
officer greet guests at the WOCCU International
Reception held in The Russian Embassy to the
United States in Washington, D.C.
Members of the Caja Popular Mexicana
Delegation pose with Pete Crear, WOCCU
chief executive officer at the International VIP
Reception in Washington, D.C.
~ 20 ~
cuworldv8i1.indd 20
3/16/06 2:42:41 PM
World Council of Credit Unions, Inc. (WOCCU) thanks the many individuals, credit unions,
credit union organizations—such as corporate credit unions, leagues, foundations, credit
union suppliers—and non-credit union related organizations that have chosen to become
Supporters. Your desire to commit, connect and engage directly with World Council enables
millions of people to grow.
BRONZE INDIVIDUALS
Breunig, Valerie & Tom, USA
Chatfield, David & Rebecca, USA
Cutter, Dennis & Shelby, USA
Jolette, Barry & Carole, USA
Nicholls, Rob & Chris, Australia
Quinn, Col. James F., USA
Ray, Bernie, USA
SILVER INDIVIDUAL
Mapother, William, USA
DIAMOND
Credit Union Executives Society, USA
CUNA Mutual Group Foundation, USA
PLATINUM
New York Credit Union Foundation, USA
PSCU Financial Services, USA
U.S. Central Credit Union, USA
SAPPHIRE
Kula Community Federal Credit Union, USA
Newbridge Credit Union, Ltd., Ireland
Texas Credit Union League & Affiliates, USA
Washington Credit Union Foundation, USA
GOLD
Alabama Credit Union League, USA
America First Credit Union, USA
American Association of Credit Union Leagues, USA
Arizona Credit Union System, USA
California & Nevada Credit Union League, USA
Colorado and Wyoming Credit Union League, USA
CO-OP Network, USA
Empire Corporate Federal Credit Union, USA
Honda Federal Credit Union, USA
Indiana Credit Union Foundation, USA
Liberty Enterprises, USA
Michigan Credit Union League, USA
National Association of Co-operative Savings &
Credit Unions, Poland
National Credit Union Foundation, Inc., USA
New York State Credit Union League, Inc. &
Affiliates, USA
New Zealand Association of Credit Unions, New Zealand
North Island Credit Union, USA
Ohio Credit Union System, USA
Pacific Service Credit Union, USA
Pennsylvania Credit Union Association, USA
Pennsylvania Credit Union Foundation, USA
State Employees Credit Union (NC), USA
VanCity Savings Credit Union, Canada
Wescom Credit Union, USA
WesCorp, USA
SILVER
Aberdeen Proving Ground Federal Credit Union, USA
Andrews Federal Credit Union, USA
BECU, USA
Bishopstown Credit Union Ltd., Ireland
Credit Union Central Alberta Limited, Canada
Credit Union National Association, USA
Credit Union Service Corporation, USA
Dundrum Credit Union Ltd., Ireland
Kinecta Federal Credit Union, USA
Louisiana Credit Union Services, USA
Merck Sharp & Dohme Federal Credit Union, USA
Mission Federal Credit Union, USA
Navy Federal Credit Union, USA
Northwest Federal Credit Union, USA
OCUL Services, Inc., USA
Orange County Teachers Federal Credit Union, USA
Orange County’s Credit Union, USA
SCE Federal Credit Union, USA
State Employees Federal Credit Union, USA
Suncoast Schools Federal Credit Union, USA
Travis Credit Union, USA
United Nations Federal Credit Union, USA
University of Wisconsin Credit Union, USA
Virginia Credit Union League, USA
List current as of February, 2006.
BRONZE
66 Federal Credit Union, USA
AEA Federal Credit Union, USA
AEDC Federal Credit Union, USA
African American Credit Union Coalition, USA
AFYA SACCO Society Ltd., Kenya
Agriculture Federal Credit Union, USA
Allegany County Maryland Teachers
Federal Credit Union, USA
American Heritage Federal Credit Union, USA
Arizona Central Credit Union, USA
Arkansas Credit Union League, USA
Arrowhead Central Credit Union, USA
Atlantic Federal Credit Union, USA
Atlantic Regional Federal Credit Union, USA
Australian National Credit Union Ltd., Australia
Bahamas Co-operative League, Bahamas
Bayer Federal Credit Union, USA
Bethpage Federal Credit Union, USA
BFG Federal Credit Union, USA
Bluepoint Solutions, Inc., USA
BOND Community Federal Credit Union, USA
Boulder Dam Credit Union, USA
California Bear Federal Credit Union, USA
California Credit Union, USA
Centris Federal Credit Union, USA
Chetco Federal Credit Union, USA
Chinook Credit Union, Ltd., Canada
Christian Community Credit Union, USA
Clackamas Community Federal Credit Union, USA
Coast Central Credit Union, USA
Coastal Federal Credit Union, USA
Comhar Linn INTO Credit Union, Ireland
Community One Federal Credit Union, USA
Connecticut Credit Union Association, Inc., USA
Consumers Co-operative Credit Union, USA
Coolock Artane Credit Union, Ltd., Ireland
Co-op Services Credit Union, USA
Co-operative Bank of Kenya Ltd., Kenya
County Educators Federal Credit Union, USA
CPM Federal Credit Union, USA
Credit Union 1 of Kansas, USA
Credit Union Central of British Columbia, Canada
Credit Union Central of Canada, Canada
Credit Union Central of Nova Scotia, Canada
CUF of British Colombia, Canada
Dalmuir Credit Union, United Kingdom of Great
Britain and Northern Ireland
DPS Credit Union, USA
Dubco Credit Union, Ltd., Ireland
Dutch Point Credit Union, USA
E1 Financial Credit Union, USA
Eastman Credit Union, USA
Educators Credit Union, USA
ENT Federal Credit Union, USA
Envision Financial, Canada
Fairfax County Employees Credit Union, USA
Farmers Insurance Group Federal Credit Union, USA
Federación Uruguaya de Cooperativas de
Ahorro y Crédito, Uruguay
FENACOAC, Guatemala
Financial Service Centers Co-operative, Inc., USA
First Entertainment Credit Union, USA
First Northern Credit Union, USA
First South Credit Union, USA
First Tech Credit Union, USA
Fitzsimons Community Credit Union, USA
Florida Central Credit Union, USA
Florida Commerce Credit Union, USA
Florida Credit Union League, USA
Foothill Federal Credit Union, USA
Fort Knox Federal Credit Union, USA
GECU, USA
Georgia Credit Union Foundation, USA
Great Wisconsin Credit Union, USA
Greater Nevada Credit Union, USA
GTE Federal Credit Union, USA
GVC Credit Union, Canada
Gwinnett Federal Credit Union, USA
Harbor One Credit Union, USA
Please contact us with any updates.
~ 21 ~
cuworldv8i1.indd 21
Heritage Credit Union, USA
Southern Oregon Federal Credit Union, USA
Heritage Family Federal Credit Union, USA
Southwest Airlines Federal
Houston Postal Credit Union, USA
Credit Union, USA
IBM Southeast EFCU, USA
Spectrum Federal Credit Union, USA
Illinois Credit Union System, USA
St. Agnes Credit Union Ltd., Ireland
IWS, USA
St. Mary’s Navan Credit Union, Ireland
Jeep Country FCU, USA
Strathmore University, Kenya
Jefferson County Employees Credit Union, USA
The Credit Union of Alabama FCU, USA
Kansas Credit Union Association, USA
The Tennessee Credit Union, USA
Keesler Federal Credit Union, USA
Thurles Credit Union, Ltd., Ireland
Kenya Bankers SACCO Society, Ltd., Kenya
Tremont Credit Union, USA
Killarney Credit Union, Ltd., Ireland
Tricorp Federal Credit Union, USA
Kilrea, Rasharkin & Dunloy Credit Union Ltd., Ireland Tropical Financial Credit Union, USA
Library of Congress Federal Credit Union, USA
Truliant Federal Credit Union, USA
Magnolia Federal Credit Union, USA
TruWest Credit Union, USA
Maine Township Schools Credit Union, USA
Tullamore Credit Union, Ireland
Maryland Credit Union Foundation, USA
Ukrainian Federal Credit Union, USA
Maryland Credit Union League, USA
United Credit Union, USA
Matanuska Valley Federal Credit Union, USA
US Federal Credit Union, USA
MECU Ltd., Australia
Vantage Credit Union, USA
Medical Area FCU, USA
Veridian Credit Union, USA
Melrose Credit Union, USA
Verity Federal Credit Union, USA
Metropolitan Credit Union, USA
Visions Federal Credit Union, USA
Mid-Atlantic Corporate Federal Credit Union, USA
Water & Power Community
MinnCo Credit Union, USA
Credit Union, USA
Missouri Credit Union Association, USA
Waterford Credit Union, Ireland
Mitchell & District Credit Union Limited, Canada
Westerly Community Credit Union
Motorola Employees Credit Union, USA
Employees, USA
Mullingar Credit Union Ltd., Ireland
WestStar Credit Union, USA
Municipal Credit Union, USA
Woodslee Credit Union, Canada
Municipal Employees Credit Union of
Xerox Federal Credit Union, USA
Baltimore, Inc., USA
Mwalimu SACCO, Kenya
National Credit Union Association Inc. (Australia),
Australia
New Credit Union, USA
New Mexico Educators Federal Credit Union, USA
New South Wales Teachers Credit Union, Australia
Northwest Corporate Federal Credit Union, USA
Numerica Credit Union, USA
Ohio CU Foundation, USA
Oregon First Community Credit Union, USA
PaulJLucas.com, USA
Pentagon Federal Credit Union, USA
Peoples Trust Credit Union, USA
International
Point Loma Credit Union, USA
Development Fund (IDF)
Postal Credit Union, USA
Investors
Power 1 Credit Union, USA
Provident Central Credit Union, USA
First Credit Union, AZ
Queensland Teachers Credit Union, Australia
Greater Nevada Credit Union, NV
Redstone Federal Credit Union, USA
Snohomish County PUD Credit Union, WA
Research Federal Credit Union, USA
Rowlagh Credit Union Ltd., Ireland
Motorola Employees Credit Union, IL
RTE Credit Union, Ltd., Ireland
Florida Central Credit Union, FL
Rush Credit Union, Ireland
Washington Credit Union Foundation, WA
San Mateo Credit Union, USA
Heritage Family Credit Union, VT
Seattle Metropolitan Credit Union, USA
San Mateo Credit Union, CA
SELCO Community Credit Union, USA
Worcester Credit Union, MA
Selfreliance Ukrainian American
Oakland County Credit Union, MI
Federal Credit Union, USA
Service 1st Federal Credit Union, USA
USA Federal Credit Union, CA
Service One Credit Union, USA
Research Federal Credit Union, MI
Shreveport Federal Credit Union, USA
Desert Schools Credit Union, AZ
Silver State Schools Credit Union, USA
Southern Mass Credit Union, USA
Get involved—see our website at:
www.woccu.org
or contact:
Valerie Breunig
Madison, WI 53705 USA
Telephone: (608) 231-7353
E-mail: [email protected]
As part of becoming a WOCCU
Supporter, you will receive our
current Supporters Report on
CD-ROM to show the many
accomplishments which are a
direct result of your contributions!
3/16/06 2:42:47 PM
Madison, WI 53705-4493 U.S.A.
cuworldv8i1.indd 22
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3/16/06 2:43:02 PM

cuworldv8i1.indd - World Council of Credit Unions

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The NEA Pays to Play: Buying Influence With