Unfortunately, it seems as though most of the good credit union headlines we read about feature larger credit unions. Though smaller in number, it's the large credit unions that get the most attention from the media, consultants and perhaps even our trade associations. I get it: Individually, smaller credit unions represent less revenue for consultants and some trade associations. They are overlooked because of their size and because far too many people have bought into the fairy tale that small credit unions are doomed. If you're reading this and you disagree with my assessment, do some research on your own and have a few honest conversations with small credit union leaders. I hear from so many that are just fed up and tired of hearing that small credit unions don't matter. They are tired of being overlooked.

Smaller credit unions are frequently characterized as inefficient, declining, resistant to change, lacking technology, non-innovative, unprofitable, not knowing how to grow and not strategic. My experience is that while there are many small credit unions that could be justifiably characterized this way, far too many deserve more of our attention for their success in these and many other areas.

Tales Worth Sharing

My team witnesses small credit union innovation and success every single day. Newsworthy small credit union best practices that are relevant to our movement regardless of their size. Stories that are amazing and inspiring. Collectively, I believe we need to tell more of these stories. Here are some examples:

• Leveraging technology:Mobile technology, remote underwriting and digital advertising is alive and well in many small credit unions. Smaller credit unions such as Greater Abbeville and Spartan Federal Credit Unions are leveraging digital media for double-digit loan and membership growth. Credit unions such as Cove and Lion's Share Federal Credit Unions are leveraging technology to remotely underwrite and disperse up to 99% of all loans and new memberships. These credit unions are thriving and relevant, and managing to stay on top of technological advances. They know they don't need to be bleeding edge, they just need to catch up as quickly as possible.
• Underserved market development: The list of small credit unions adapting and innovating to serve large underserved market segments is large. Credit unions such as Lower Valley and Point West Credit Unions are expanding and making significant inroads to a huge (and growing) Latino market. Small credit unions such as North Side Community Federal Credit Union and Olympia Credit Union are reaching out to the overlooked LGBTQ communities. Regardless of your political leanings, it's hard to argue against the potential opportunity for serving these growing demographics.
• New product development: There are many small credit unions currently partnering with the National Federation of Community Development Credit Unions and Filene to innovate and incubate new innovative products and services. We also see many small credit unions innovating their own special tailored products that could revolutionize the way credit unions reach and serve new markets. Consider Lower Valley Credit Union's Affordable Accident Insurance for Hispanic non-citizen laborers and North Side Community FCU's Transgender Life Style tailored products. These credit unions are innovating and investing in products or services that could one day become mainstream credit union offerings.
• Single SEG success: Smaller (but growing) credit unions are also demonstrating that it's possible to profitably grow by serving single SEG groups. Just ask PNW Ironworkers and Lion's Share Federal Credit Unions. While you're at it, check out their FPR numbers. You'll see that both credit unions are thriving with single SEG sponsor groups. Their secret: They have found their niche in a SEG workforce that still needs them, and they serve them very well.
• Community development: I could spend days here, but I'll take a moment to mention two very successful smaller credit union innovations in the area of community development. First, Hawaii First Federal Credit Union developed its first Community Resource Center in 2009 to provide financial education and other human resources to its lower-income Native Hawaiian population. Since 2009, the credit union has reached out and served thousands of lower-income consumers who have visited the resource center (3,600 in 2016, year-to-date). Second, Tuscaloosa Credit Union developed an innovative affordable housing program. Working with community leaders, the credit union has helped create affordable housing opportunities, developing nice housing developments for hundreds of deserving consumers. Both credit unions demonstrate the innovation, community development and impact results that smaller credit unions can have.

Why the Story Matters

When we focus only on asset size, we risk further polarization between the small and the large. There is significant value in telling more of the good stories about smaller credit unions. Many times, its these stories that can be most impactful at the individual and community level. Sharing more small credit union success stories may also encourage more small credit unions to change and evolve. It beats a depressing story where all are doomed. Many of these best practices can be shared and taken to the next scalable level by our large credit union brothers and sisters. Sharing more of the best practice stories coming from our small credit unions will also help us tell our collective and unique story to our elected representatives to help ensure a viable long-term credit union option.

After all, not all of our small credit union stories are Grimm; far more are Cinderella than we may think.

Scott Butterfield is the principal of Your Credit Union Partner, PLLC. He can be reached at 253-507-2443 or [email protected].