Even With Present Challenges, Opportunity Can Be Found in the Middle

As large institutions work to use their ample resources to become more adaptable to ever-changing economic conditions, smaller start-ups nimbly dart to and from existing market gaps and niche demands left behind in each giant’s wake. All the while, unforgiving market dynamics, which have been further amplified by the coronavirus crisis, continue to squeeze the middle-tier from both sides – creating additional pressures in an already volatile environment.

Despite these challenges, there is ample opportunity to be had for mid-sized institutions. As such, it is possible for organizations to benefit from the best of both worlds.

To do so, executive management must have an open-minded flexibility to new approaches, new products, and a willingness to navigate untested waters. At the same time, management must leverage their organization’s existing resources to successfully execute – an approach that has proven to be difficult for large companies with lumbering processes and bureaucratic red tape, as well as for lean start-ups still working on building up their financial foundations.

At Sperry Associates Federal Credit Union ($273 million in assets), we’ve found a happy balance in maintaining the services and products our core members love such as free checking and competitive loan rates, while at the same time offering niche and specialized lending products that match emerging needs. These past few months, we’ve offered specialty loan products to those impacted by the coronavirus pandemic, and we’ve been diligently working with our small business partners to secure for them Paycheck Protection Program funding. As community-centric institutions, our responsibility is to ensure that the friends and neighbors we serve are able to weather this storm.

These products were the direct result of Sperry taking advantage of its market positioning. We’re a mid-sized credit union, member-owned and proudly serving the Long Island market for over 80 years. While we like to think bigger, we also act on the local neighborhood level.

For the mid-sized institution looking to grow and better understand the pulse of the markets, it’s critical to put your organization’s best foot forward in the community. With a strong business development team at their disposal, executive management at a mid-sized firm can accurately assess these emerging needs and adapt their scope of services to meet them, all thanks to a boots-on-the-ground approach that is often not used by larger entities.

Throughout the pandemic, which hit New York hard and is now spreading elsewhere, our team heard from friends, business owners and members that these larger events had local impacts, and using our community-rooted approached, we took action.

A larger firm would have had to schedule meetings, create committees and navigate the rough waters of corporate politics, while a smaller firm would be working to enter the market. For us in the middle, we were the right size to react appropriately, all while using our internal talents to ensure that due diligence was conducted and our solutions were beneficial to those we serve.

In the end, it comes down to approach. By seeing the unique market challenges faced by a mid-sized organization as an opportunity, one can yield larger-than-life results.

Kevin J. Healy, Esq. is the CEO of Sperry Associates Federal Credit Union based in Garden City Park, N.Y.