CUNA is now America's Credit Unions.
A stronger voice to advance the credit union industry.
Member loyalty
Likewise, County-City isn’t letting today’s challenges keep it from serving members.
Jefferson County, for example, has a growing Hispanic population, and Krahn prides herself on the credit union’s inclusiveness, led by a bilingual staff and community outreach. But regulatory burden is making it difficult, if not impossible, to give members what they need.
“Lending to undocumented individuals is a compliance nightmare,” Krahn says. “So here we are, a credit union that wants to do good in the community and wants to offer new services that will help people coming into our community. But compliance is stopping us from being able to what credit unions were designed to do. That’s so frustrating.”
And even though County-City is just 10 miles from the University of Wisconsin-Whitewater and 30 miles from the University of Wisconsin-Madison, “we got out of student loans because of all the regulations. That’s something our younger members really need,” she says.
The hit compliance makes on earnings also affects the credit union’s ability to roll out new products and services.
“I would love to have remote deposit capture and more services for our younger members,” Krahn says.
What’s more, she says, regulations that were designed to check the bad actors that created the financial crisis are instead undermining financial institutions that help small communities thrive.
“The regulations that are in place weren’t even needed here,” Krahn says. “We already had those safeguards in place for our members and the financial health of the credit union. We wouldn’t do a loan unless it was in the best interest of the member and they had the ability to repay.”
Krahn fears the loss of community-based financial institutions as more small credit unions seek mergers due to regulatory burden.
“Even though there are other places to get loans and savings accounts, [other providers] don’t offer them the same way we do,” she says. “We will do loans for people who are in dire need. We’ve made loans for people who need money for groceries. We’ve had people who come in because their glasses are broken—people who literally can’t see to do their jobs.
“Those loans don’t make us money,” Krahn continues. “But I can’t see those same people going to a bank and getting a loan for groceries or glasses. We know our members so well, we know they’re going to pay us back. They’re loyal to us, just as we’re loyal to them.”