2 minutes
When Mark Rosa visited a branch of GESRO Co-operative Credit Union in Ghana a couple years back, he was greeted with a touching tribute—a flag emblazoned with the logo of his own CU, Jefferson Financial Credit Union, flying overhead.
GESRO Co-operative CU managers had the flag specially made in appreciation for Rosa’s mentoring and financial support from Jefferson Financial CU, Metairie, La., including a $100,000 long-term loan the $4 million Ghana cooperative uses to extend its micro business lending program.
“They understand the importance of cooperatives and the people helping people philosophy, and they’re happy to be doing this work,” says Rosa, CEO of the $420 million Jefferson Financial CU serving 43,000 members. “They provide seed money for people starting a dress shop or fruit stand, and their loan officers go out every day to collect small loan payments out of their members’ daily receipts.”
Rosa, a CUES member, met the former GESRO Co-operative CU manager when he came to the United States to attend training. That manager accepted Rosa’s invitation to visit Jefferson Financial CU. Later, Rosa was invited to visit Ghana to see firsthand how the country is making economic gains through GESRO Co-operative CU’s efforts.
Without access to credit reports, GESRO Co-operative CU’s lending practices harken back to the early days of American CUs, Rosa notes. “They focus on the character component: What do I know about you? How much are you going to earn, and how much can you afford to pay back from your daily or weekly receipts? With our loan, we put our money where our mouth is so they can loan that money out at between 10 and 15 percent and make a reasonable return with that seed money.”
Rosa also consults with the Russian Credit Union League. Jefferson Financial CU has provided grants “of a few thousand dollars annually” to support conferences so managers of small financial cooperatives across that country can gather to share strategies. Though many Russian CUs are larger than those in Ghana, they still lack the infrastructure that supports their counterparts in more developed nations. For example, their credit bureau system is relatively new, and many remain suspicious about sharing information about their members’ accounts, Rosa notes. In addition, they are dealing with sometimes harsh anti-money laundering enforcement.
Rosa encourages others who want to be supportive of credit unions around the world. “It’s work, and it takes money and time, but this type of support and the opportunities to learn from mature CU systems offers extraordinary value.”
Karen Bankston is a longtime contributor to Credit Union Management and writes about credit unions, membership growth, marketing, operations and technology. She is the proprietor of Precision Prose, Portland, Ore.
