July 2001

Change is a big part of our everyday life. At Sierra Point Credit Union, it isn't much different. Our job is to adapt to your changing needs, revising and reviewing current services, as well as developing new products to enhance your financial future. To accomplish this task, the SPCU Board and Management conducted a planning session to assess our current value to you and plan to discuss how we will meet your changing needs.

Several areas have come to the forefront. They include computer-based services, enhanced staff training, partnerships and alliances with other organizations to provide non-traditional credit union products and cultural diversity among staff, volunteers and members. Furthermore, to ensure we are meeting your present and future needs, SPCU is currently conducting a member survey. While we can make educated guesses about your needs, input from you is essential so that we don't miss the mark. I ask you to please take the time to complete and return the survey to help us meet your future financial needs.

The political arena has become a major component in our environment. Years ago, credit union leaders did not understand the necessity of political involvement and when bankers attached the entire credit union movement, we rallied together and won some small battles. However, we still find that many of our political leaders don't understand the difference between a bank and a credit union. For that matter, many of our members don't understand that our structure is built on membership-you own Sierra Point Credit Union. While we may look like and provide the same types of financial services that other banking institutions offer, we are not for profit; owned and operated by the members; democratically driven - one vote, one member - no matter how much money you maintain in your account. Our structure, not our services or whom we serve, distinguishes us from other financial institutions. For this reason, credit unions are tax-exempt cooperatives.

This is an important difference because many regulations and legislation are forced upon the credit union industry that is really aimed at banks. One such area is the privacy issue, which is a hot topic in Washington D.C. and in Sacramento. Credit Unions have always held our members' privacy in high regard. SPCU has never sold your information to any organization. When we use outside companies to process your accounts, we require that they sign a non-disclosure clause to ensure your information is used only for what it was intended. As an owner/member, you have a responsibility to use products and services that meet your needs and to maintain your accounts without loss to SPCU. However, our size limits our ability to directly offer many products and services, hence, our need to partner with other companies and credit unions.

For example, SPCU partners with Telesis Community Credit Union to provide mortgage lending services to you. SPCU also partners with our credit union owned insurance company, CUNA Mutual Group, to provide insurance and, very soon, stock purchase products. Without these partnerships, you would be forced to deal with profit driven financial institutions, at a much higher cost to you.

Currently, there is pending privacy legislation that would require additional disclosure and possible changes in how we offer our products and services. While I very much believe in protecting your privacy, the cost to you for unnecessary regulations will only limit our ability to serve you. Remember, you own your credit union - you do NOT own your own bank. Banks are stockholder driven and Credit Unions are member driven. So, when you speak with your legislators or I ask you to help by writing to legislators about these issues, please know that overkill regulations only impede us from helping you build and maintain your financial future.

As always, thank you for your business and support of Sierra Point Credit Union, where people mean more than money.

Deborah Trapani, CEO