Greylock Federal Joining Credit Union Collaborative
PITTSFIELD, Mass. — Greylock Federal Credit Union is moving some of its back-office operations to a collaborative network but says customers shouldn't see any difference.
This is expected to affect a percentage of employees over the next two years.
"This is a group of credit unions sharing operational resources," said President and CEO John Bissell on Tuesday, adding these include informational technology, areas of lending and quality that are more "business to business" aspects of the credit union's operations.
Greylock will join with three other credit unions in what is called a credit union service organization, or CUSO, which will allow more resources for collaboration and problem-solving.
"I expect that number will grow in the years to come and this CUSO has been operating for 10 years," Bissell said. "We could see it growing to eight."
It doesn't mean the credit union is closing or merging with any other entity, he stressed.
"The intention is that we want to stay independent," he continued, and by sharing some costs, "over the years, we can invest more into enhancing the member experience. ...
"This is a long-term change in our business model to allow us to stay independent. We want to be strong, we've been in the community since 1935. ... We're financially super strong today so it made sense to invest in this CUSO."
Bissell couldn't pin down how many employees will be let go as the system is integrated over the next two years, saying by 2026 it will be a "few percentage points" of the 320-340 or so people who work at the credit union. The total number employed tends to ebb and flow, he said.
"I'm hopeful a lot of employees will attain other jobs at Greylock or within the CUSO," he said. "The goal is to minimize the impact on employees ... the impact on employees is a big deal for us — even one employee."
CUSO services are federally regulated and can include marketing, human resources, compliance, loan support, data processing and document management, training and payroll, according to the National Credit Union Administration.
Credit union members were apprised of the investment via email on Tuesday afternoon, in which Bissell wrote "I am committed to maintaining Greylock's independence, with local folks driving the decisions and building deep, long-lasting relationships. In keeping with this commitment, we are tuning up our business model to reach greater operational efficiency while keeping the qualities that make Greylock special."
The letter emphasized that the partnership is not a merger or an acquisition and that Greylock will retain its financial independence and local decision-making. Greylock currently has more than 100,000 members and $80 million above reserves.
"We built this strong balance sheet by having a healthy stream of net income year after year, and this new partnership will help us maintain financial strength for generations to come," Bissell wrote.
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