Maine credit union chief sees room for streamlining merger reviews
File photo / Jim Neuger
Todd Mason, president and CEO of the Maine Credit Union League, photographed at the group's headquarters in Westbrook during a 2017 interview with Mainebiz.
As Maine State Credit Union and Midcoast Federal Credit Union join forces to form the state's largest credit union, Mainebiz checked in with Todd Mason, president and CEO of the Maine Credit Union League, for his take on prospects for further consolidation and where he thinks the regulatory review process can be improved.
Mainebiz: What impact do you see the agreed merger between Maine State Credit Union and Midcoast FCU having on the sector as a whole in Maine?
Todd Mason: Credit unions are constantly evolving to meet the growing needs of their members and the communities they serve. As a single financial institution, Maine State Credit Union and Midcoast Federal Credit Union will continue making the same level of important contributions to the lives of their members and to their communities that they’ve made as separate credit unions.
MB: Even a very straightforward merger between two credit unions has quite a long timetable (up to a year) to go through all the approvals. Are there any areas where you think the regulatory process can be streamlined?
TM: The merger of two financial institutions is complicated and requires close attention to financial, technical and geographic details. Credit union members are owners, so in addition to the regulatory approval process, the members of both credit unions need an opportunity to understand all aspects of the merger to ensure it’s right for their credit union. This process is essential to ensuring the merger not only meets regulatory criteria but also is in the best interest of each credit unions’ members.
But if there was one area to streamline, it would be for field of membership expansion, which dictates who can join a given credit union. Field of membership is often geography- or community-based. As a result, field of membership expansion is a common part of mergers to ensure there is continuous access for members, which can delay the process.
MB: How likely is future consolidation in Maine and/or nationwide, and what do you see as the biggest drivers?
TM: Mergers are not uncommon in our industry. In fact, it is not uncommon to have two credit union mergers approved in a calendar year. Credit unions always are looking for ways to grow and strengthen their ability to serve their members and communities. While there are a variety of approaches credit unions can take, consolidating resources and diversifying fields of membership is one of them.
MB: What's been the biggest challenge for Maine's credit unions during the pandemic?
TM: Our credit unions are built around the importance of relationships, which is essential to providing the highly personalized service their members have come to expect. Credit union employees are not there just to open an account or process a loan; they work closely with their members to help them with various aspects of their financial lives.
When branch lobbies were forced to close in the early days of the pandemic, it was reassuring — but frankly not surprising — to see the creative approaches credit unions took to maintain those essential connections. It has been hard work, but our credit unions care deeply about their members and have done whatever they believed was necessary to continue serving their members without interruption.
MB: Any areas of innovation — technology or otherwise — during this challenging time that you would highlight?
TM: Credit unions have always offered the latest in digital banking — both online banking and mobile apps. Use of these digital banking platforms, however, increased significantly once branch lobbies closed. Members who had never previously used these tools learned how easy it is to access their money, pay bills, and even open new accounts or apply for loans online. Once branch lobbies reopened, members returned to in-person interactions at their credit unions, but they also have begun to rely more heavily on these digital tools for their day-to-day financial needs.
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