Egan: Put Members’ Interests First

Massachusetts League president addresses HarborOne CU’s conversion plan.

February 16, 2012
/ PRINT / ShareShare / Text Size +

Massachusetts Credit Union League President/CEO Dan Egan defended the credit union charter while responding to an announcement [pdf] that $1.8 billion asset HarborOne Credit Union, Brockton, Mass., may convert to a mutual cooperative bank.

“The league strongly believes the member-owned, not-for-profit, credit union charter is the charter of choice for providing the public with consumer-friendly financial products and services, and [allowing] credit unions to offer a far better economic return,” Egan says. “Credit unions now have 2.5 million members in Massachusetts and 92 million members nationwide because they put the interests of consumers first. In the last quarter of 2011, credit unions grew dramatically as consumers searched for a financial institution that would best serve their needs.

“While a credit union’s management may appreciate the operational advantages of a bank charter, those benefits must extend to the credit union’s members,” Egan continues. “Any charter conversion should be approached from the perspective of what is best for the credit union’s member-owners.”

Egan acknowledged the restrictions credit unions face including business lending restrictions, lack of access to alternative capital, higher net worth requirements, and defined fields of membership.

“These issues are real and indicative of the challenges that credit unions face as they seek to meet the modern needs of today’s consumers,” he says. “It is vitally important that legislators and regulators pay heed to these challenges and work to adopt new laws and regulations which keep the credit union charter viable.”

Egan says the historical foundation of the credit union movement provides the rationale for modernizing credit union laws. “The credit union charter was first established by the Massachusetts Legislature in 1909 as a means of creating a parallel system of nonprofit banking for consumers to balance the interests of the for-profit banks. That mission is more vital than ever, and lawmakers must give credit unions the tools they need to accomplish that mission.”

Post a comment to this story


What's Popular

Popular Stories

Recent Discussion

Great article! Unfortunately, most employees don’t feel valued or appreciated by their supervisors or employers. In fact, research has shown that the predominant reason team members quit their jobs is because they don’t feel valued. This is in spite of the fact that employee recognition programs have proliferated in the workplace – over 90% of all organizations in the U.S. has some form of employee recognition activities in place. But most employee recognition programs are viewed with skepticism and cynicism – because they aren’t viewed as being genuine in their communication of appreciation. Getting the “employee of the month” award, receiving a certificate of recognition, or a “Way to go, team!” email just don’t get the job done. How do you communicate authentic appreciation? We have found people have different ways that they want to be shown appreciation, and if you don’t communicate in the language of appreciation important to them, you essentially “miss the mark”. Additionally, employees need to receive recognition more than once a year at their performance review. Otherwise, they view the praise as “going through the motions”. A third component of authentic appreciation is that the communication has to be about them personally – not the department, not their group, but something they did. Finally, they have to believe that you mean what you say. How you treat them has to match the words you use. If you are not sure how your team members want to be shown appreciation, the Motivating By Appreciation Inventory ( will identify the language of appreciation and specific actions preferred by each employee. You then can create a group profile for your team, so everyone knows how to encourage one another. Remember, employees want to know that they are valued for what they contribute to the success of the organization. And communicating authentic appreciation in the ways they desire it can make the difference between keeping your quality team members or having a negative work environment that everyone wants to leave. Paul White, Ph.D., is the co-author of The 5 Languages of Appreciation in the Workplace with Dr. Gary Chapman.

Your Say: Who should be Credit Union Magazine's 2014 CU Hero of the Year?

View Results Poll Archive