I apologize for the delay between this post and the previous. I left town again, but now perhaps to the disappointment of the Greater Dallas Area, I’m here to stay.

Quick Recap

Thanks in large part to a recent partnership between the Texas Credit Union League and the Jamaican Credit Union League (and specifically a partnership between Energy Capital Credit Union and Kirkvine Co-operative Credit Union), I had the opportunity to travel to Jamaica for a week, visit several of its credit unions, and meet with the president of the League, Mr. Glen Francis.

My previous post discussed the unity of the Jamaican culture, and specifically how unity and great economic need have translated into a powerful national Credit Union Movement. Fifty percent of all Jamaican adults are credit union members. That’s half, for those of you reaching for your calculators.

Stifling the Movement

The Movement, however powerful and however important to the people’s economic welfare, is not without its share of struggles. In 1999, Jamaican credit unions were designated as “specified financial institutions” by the government. What exactly does that mean?

It means credit unions could end up being no different than any number of commercial banks across the nation. It means they could lose their abilities that have made them such an empowering force for the people. The Bank of Jamaica is their new boss, and is continuing to try and “level the playing field,” which translates into less ability to help those who really need it.

New regulations could put a cap on what credit unions can do for the sake of low-income members. Those for whom credit unions are a saving grace will have nowhere to go.

Remember in the last post when I mentioned the guy who made $400/month? Given some of these potential regulatory changes, his options (and those of many like him) will quickly evaporate.

Close to Home

This issue strikes a chord here at home, too. For years, banks have been lobbying for credit union taxation, in their own attempt to “level the playing field.” Bank employees in Utah have been given time off to lobby against credit unions (Credit Union Newswatch 18 Feb 2003). Michigan banks sent toy ducks to all of the Michigan U.S. House members in an attempt to say “if it walks like a duck…” (read more about that here). On several occasions, credit union grassroots lobbyists have rallied in Washington D.C. in opposition to banks to retain current credit union standards.

The point is this: although credit unions resemble banks in many ways, they are a very different kind of institution. They cannot be treated and regulated in the same ways.

Fanning the Flames

Fortunately, at this point all of those high-stakes regulations are only in speculation mode, giving Jamaican credit unions some time to rally their troops. And this Movement certainly has troops.

“We have members who are ready to go march,” said Cynthia Briscoe, General Manager of Manchester Parish Co-operative Credit Union.

The key to fighting this successfully is going to be reinforcing the passion Jamaican citizens have for their credit unions. No matter what financial changes are made, the credit union will always be the financial instition for the people and by the people.

Niche marketing and establishing a strong brand to play avatar to that emotional connection are going to be crucial. In my next and final post on this topic, I’ll discuss some of the branding strategies the Jamaican League has implemented as a whole, and how one credit union in particular has taken their credit union brand to the next level.