BankThink

They came, they saw, they spent. But what did credit unions get for it?

The credit union industry has not addressed the potential value of the elusive younger demographic in a long time. Instead, the discussion implicitly assumes the market is still attractive, skipping ahead to focus on market penetration. Industry analysts, journalists and outside experts reiterate the value of attracting younger members, providing anecdotal sound bites on the habits of young consumers as suggestions for ways to reach them. Credit union executives should reassess the return on investment (ROI) potential of the younger demographic for their specific market; the potential of this market diminished for the majority of the country over the past 20 years and will continue to decline modestly through 2015.

I think NCUA’s proposal for more disclosure of credit union executive compensation it is a bad idea. The board is responsible for such decisions and I feel that there is plenty of oversight both internally and externally.

After the long, difficult build up, the news came with sudden, short notice. President Clinton would be signing the Credit Union Membership Act on a Friday, just days away.

I dedicate this article to all the vendors that choose to focus on credit unions.

When the economy struggles, the charitable world collectively shivers. Investment returns from endowments shrink, reducing foundations’ ability to make grants and provide needed programs. Corporate giving takes a hit as budgets are scrutinized.

There it was in black and white: The real difference between credit unions and banks.

The recent upheavals in the mortgage market and the credit markets broadly have garnered an extraordinary amount of attention in the media, and with good reason. Ripple effects throughout the economy are now being manifested by slower growth and a dramatic drop in consumer spending. On the housing side of the ledger, increases in the number of foreclosures, volatility in interest rates and sharp declines in housing starts and, in some markets, housing prices, have all contributed to greater awareness of the need for careful and prudent mortgage lending by all participants in the market, including credit unions.

During my tenure as chairman, one of the most difficult and contentious issues facing NCUA has been the rights of credit union members to decide on the structure of the member-owned financial cooperative. This issue has received attention on Capitol Hill and in the media through credit union conversions.

As Congress continues to search for the best strategies to jump-start a stalled economy, our elected officials need to fully recognize the significant potential of credit unions to serve as a catalyst in helping businesses and consumers regain financial momentum. And with more than 4,000 credit union leaders here in Washington for CUNA’s Government Affairs Conference, the timing could not be better for each of us to send a clear message to our respective federal legislators and their staffs: it’s time to quickly remove the unnecessary regulatory shackles that restrict credit unions from helping our nation’s economy move forward.