What's Happening?
Benjamin Wickum, the Chief Financial Officer of Collins Community Credit Union, has detailed his career path and the financial strategies he employs at the institution. Wickum's journey to CFO was marked by unexpected turns, including an initial mix-up
during his application process and a pivot from aspiring lawyer to finance professional. He pursued an MBA in accounting and earned his CPA designation, which opened doors to consulting and auditing before joining the credit union sector. Wickum joined Collins Community Credit Union in August 2013 as finance director and was promoted to the organization's first official CFO two years later. Collins Community Credit Union, founded in 1940 by employees of Collins Radio, has grown significantly, now holding over $1.5 billion in assets and employing approximately 215 people across multiple branches in Iowa. Wickum's tenure has included engineering a significant transformation of the credit union's balance sheet by diversifying revenue through selling or participating in portions of loans to outside investors, creating an off-balance-sheet loan portfolio that grew to 1.5 times the credit union's total assets.
Why It's Important?
Wickum's strategic approach to financial management at Collins Community Credit Union highlights a broader trend in the credit union sector towards innovative revenue diversification and balance sheet optimization. His strategy of building an off-balance-sheet loan portfolio, which generated substantial servicing income, demonstrates how regional financial institutions can expand their revenue streams beyond traditional interest margins. This is particularly important in a competitive financial landscape where credit unions often face pressure to grow assets and serve their communities effectively. The credit union's recent affiliation with the Iowa Consumer Council, expanding its field of membership, underscores the importance of financial literacy and community outreach in the U.S. financial sector. This move allows the credit union to reach new communities and fulfill its core mission on a wider scale, potentially increasing financial inclusion and access to services for more Iowans and residents of neighboring states. The focus on 'walks, singles, and doubles' rather than 'home runs' in financial strategy reflects a prudent, long-term approach that prioritizes consistent, small gains, which can be a model for stability in regional financial institutions.
What's Next?
Collins Community Credit Union is preparing for external growth, with plans to attract new members and potentially open additional branches within the next 12 to 24 months. This expansion is supported by its recent affiliation with the Iowa Consumer Council, which has broadened its field of membership beyond traditional county-based boundaries. This strategic move is expected to provide a promising channel for reaching new communities and further fulfilling the credit union's mission. Benjamin Wickum's leadership style, characterized by setting high-level goals and trusting his team to execute, suggests a continued focus on empowering employees and fostering a culture of growth. The credit union's ongoing efforts to execute arbitrage trades to capture incremental margins indicate a proactive approach to navigating interest rate cycles and competitive environments. Future developments will likely involve the successful integration of new members and branches, alongside continued optimization of financial strategies to ensure sustained growth and stability.
Beyond the Headlines
The narrative of Benjamin Wickum's career and his leadership at Collins Community Credit Union offers insights into the evolving role of a CFO in regional financial institutions. His emphasis on making the numbers 'mean something' by participating in monthly staff calls and acknowledging employee contributions highlights a shift towards more transparent and inclusive financial leadership. This approach fosters a shared understanding of the institution's financial health and reinforces the collective effort behind its success. Furthermore, Wickum's belief in talent mobility and the value of diverse professional backgrounds within his team underscores a modern perspective on workforce development and retention. By welcoming back former employees and encouraging varied perspectives, the credit union cultivates a dynamic environment that challenges complacency and promotes innovation. This human-centric approach to financial management, combined with strategic financial planning, suggests a model for sustainable growth that prioritizes both fiscal responsibility and employee engagement, contributing to the long-term health and relevance of community-based financial services.
