One frequent argument for cooperation focuses on compliance. As the argument goes, this function, while critical, is really not a core function. In other words, success as a credit union is not mandated by a high-functioning compliance department. Success is really defined by being in touch with member needs, and offering competitive rates and terms on both deposit and loan products - not by completing suspicious activity reports. Rather than devote precious resources to compliance personnel, the argument continues, share the burden and costs of compliance with other credit unions.
I've heard the same argument related to human resource and information technology departments.
I am really looking forward to this session, which I am told is gaining serious traction for a pre-conference workshop. I plan to work with session participants in getting to the root drivers of cooperation, and to discuss if these drivers strengthen the competitive advantage for cooperating credit unions. I believe there are compelling reasons for cooperation, which is truly good news for credit unions feeling competitive pressures or looking for greater efficiency without going through a merger. I think you can gain a 50bp advantage, or more, with specific cooperative efforts.
Sorry, but I won't divulge the contents of the session and the support for cooperation. For that you will have to register to attend the workshop! Suffices to say, it will be a dynamic session with active participation for all who attend. I hope to see you there.
