When asked if he had any products or services that cater to small credit unions, he replied, "yes, all of them." But he added that open lines of communication and frank advice go further in helping small credit unions utilize corporate services.

"Our biggest advantage is members can call and speak to any representative and get 95% of their questions answered with one phone call to one person. Usually, they need an answer right away, and they're more comfortable with someone they know," he said.

Wolf believes there is a future for small credit unions, if they employ the right strategy.

"They're constantly being told they're not big enough to survive, but I don't believe that's true. They just need to figure out what their market niche is. Not every credit union needs to be everything to everybody," he said.

Bill Walby, president of Central Corporate Credit Union in Michigan agrees. Though CenCorp counts industry giant Navy Federal among its members, the mostly Michigan-based membership includes credit unions as small as $200,000 in assets.

"It all comes down to adding value, and whether you're a small or large credit union, you've got to find a way to deliver more value on a day to day basis," Walby said.

CenCorp assists its small credit unions by not requiring minimums for services like check processing and overnight accounts. The corporate also believes financial education and a healthy balance sheet are keys to small credit union survival, and hosts a financial education seminar that is free to small credit unions.

"We're trying to educate them not just on our specific products, but on the investment market as a whole, so they can make the right choices for their own portfolio," he said.

Phoenix-based First Corporate Credit Union also believes financial expertise and growth vehicles are the most important services small credit unions need. FirstCorp Executive Vice President and Chief Investment Officer Greg Harden said representatives not only spend time explaining investment options to members, they even provide charts and graphs that track corporate investments that credit union managers can use for board meetings. When possible, the corporate gives small credit unions special rates on CDs it couldn't afford to offer across the board.

Give the Members What They Want

Harden agrees with Wolf and Walby that small credit unions can thrive if they focus on meeting the specific needs of their members.

"You've got to watch the bottom line, and pick the things you know you do right. Do a few things very well and stay in front of your members. Efficiency is a good way to differentiate your credit union from the competition," he said.

With some of the largest credit unions in the country counted among its 1,050 members, WesCorp is challenged to provide the kind of one-on-one financial counseling available at smaller corporates.

But for the past three years, WesCorp Account Consultant Amy Rapp has been pounding the pavement, calling on WesCorp's 700 small credit unions to review their financials and lend her Wall Street expertise. Rapp agrees that financial education is a major issue, saying many small credit unions limit their success potential by adhering to outdated or overly simplistic investment strategies.

"For small credit unions, more likely than not, they don't have a CFO or VP of Finance, and can't afford to pay for those advanced degrees and experience. Many of them realize they need to create more competitive situations for themselves, but they don't have the financial resources or time to study ALM or investment laddering, or attend portfolio development classes. What often happens is they end up not doing anything at all," Rapp said.

So one by one, Rapp has been convincing her clients to expand their investment strategies, most often by laddering CD maturation dates to create cash flow.

WesCorp also encourages small credit unions to shift some of those investment dollars over to the lending side through loan participation. The corporate offers participation opportunities for small credit unions in increments as low as $100,000.

"These loans are all A paper or very close. It's huge for a small credit union to come in and get $100,000 worth of A paper within only one or two hours," Rapp said.

Like CenCorp, WesCorp hosts educational events designed to be as accessible as possible for cash and time-strapped small credit union leaders.

Leading the way are financial workshops designed for small- to mid-sized credit unions that encourage attendance by scheduling Saturday dates and providing free childcare. Three have already been held in California, and a fourth is scheduled for Oct. 20 in Seattle.

WesCorp also champions their lunch hour Webcasts as good sources of information and education for small credit union leaders. Rapp has developed programs specifically geared for small credit unions, and encourages small credit unions to participate in all Webcasts, regardless of topic.

"They can watch on their own computer over their lunch break if they have to, and they can also share it with younger employees and start educating the next generation of credit union leaders. It's interactive, so they can participate and ask questions, and if they miss it, it's archived. They can also email questions after the fact," Rapp said.

WesCorp's ability to understand the needs of small credit unions increased this spring, when members elected California Agribusiness Credit Union President/CEO Adam Denbo to the board. The $24 million CalAg is SEG-based, serving employees of the state's expansive agricultural industry.

Denbo is the corporate's only small credit union representative, and was elected to represent the needs of his peer group. He agrees that balance sheet education is one of the best ways the corporate can assist small credit unions, which struggle with liquidity while attempting to maintain a positive ROA, keep as current with technology as is practical, and deal with regulators.

Denbo also agrees that serving niche markets is the key to small credit union success.

"Diluted charters have it most challenging because others may be able to enter that market easily. Differentiation is a key marketing concept that has proven to be successful in all business lines," he said.

However, credit unions must remain mindful that even though they may offer unique niche products and services, members still expect some technology-based services and a basic product line.

WesCorp's Public Relations Director Walter Laskos compared small credit unions to boutique hotels, saying, "Some people want the boutique hotel or bed and breakfast experience. Not everybody wants the Hyatt or even the Ritz-Carlton. But they still want to make their reservation online."

Rapp agreed, saying she encourages credit unions to use monies gained from better investment strategies to invest in technology and infrastructure, while focusing on their field of membership's specific needs.

"If you maintain a bread and butter shop, get your balance sheet in order, find that niche market, and deliver it all with hand holding and a winning attitude, members will respond. Now clearly, they'll go elsewhere for the products and services you can't provide, but if you do what you do best, they'll come to you," she said.

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