From: "Michael E. Marotta" <MERCURY@lcc.edu>
Date: Tue, 12 Oct 93 05:29:54 PDT
To: cypherpunks@toad.com
Subject: Summa Pro Credit Union
Message-ID: <624CCE1380A01E6B@sleepy.egr.msu.edu>
MIME-Version: 1.0
Content-Type: text/plain


Tangential to the "Credit Union" Question
by Michael E. Marotta
   mercury@well.sf.ca.us
 
Most of this "Bank of the Internet" stuff blew past me, but I was 
stopped short by Perry Metzger's assertion that credit unions are 
not innovative. 
 
Here in Michigan, we have World Computer Corporation, a Data 
General VAR.  They serve the largest and smallest credit unions.  
I have written about them twice for FOCUS, a DG user magazine.  
The first time, I spent 30 hours onsite with customer service.  
In fact, our household does most of our financials through a 
credit union, having been members of one since 1985. 
 
In truth credit unions are light years ahead of banks in 
innovation.  For instance, we have long enjoyed voice-response 
and touchtone dial-in account services.  I never use my 
statement. I dial in and reconcile.  Banks are only now coming 
online.
 
Banks are IBM mainframe environments.  Credit Unions go with DG, 
NCR, Digital, anyone who can give them an edge.  Banks argue 
about "outsourcing."  CUs have been doing this all along.  Most 
CUs don't even have data processing departments any more than 
they plow their own drive ways.  You contract services that are 
not in your line of business.  Credit Unions borrow and lend 
money.  Data processing can be done inhouse and often is, but no 
one's brass plate gets polished as a result.  
 
CUs are small.  They don't have (other people's) money to throw
around. Credit Unions are member-owned.  They can't by law lend 
money they don't have. They must by law have a defined (sometimes 
CLOSELY defined) market which restricts them.  As a result of all 
of this, they look to _technology_ for wins.
 
All the nay-saying here has come from the pudknockers while those 
who do, did.
 
Good luck. You deserve it.