PALM DESERT, Calif.—For the first time in a long while, credit unions have the opportunity to go on the offense when it comes to regulatory relief.
That was the message from Jim Nussle, president and CEO of the Credit Union National Association. Nussle was a member of the House of Representatives from 1991 to 2007. Later in 2007 he was appointed in 2007 by President George W. Bush as the 36th director of the White House Office of Management and Budget. As OMB director, Nussle was a member of President Bush's Cabinet.
Speaking on the second day of PSCU’s 2017 Member Forum here, Nussle said that if there’s one lesson that can be taken from the 2016 election, it is the “voice of the people” matters, and matters more this year than ever before, Nussle assessed.
“We are a split nation, no question, but looking at [credit unions’] ability to move the needle, the most important thing we can do is connect with people,” he said.
There is a “favorable” environment for CUs following the November election, Nussle said, thanks in part to a Congress and administration intent on reducing regulations.
“However, the inertia in Congress is to do nothing,” he declared. “We need to get on the agenda, and disruption requires a unique approach to advocacy. We need to coordinate the national trade association with the state leagues. We need to address public policy issues from all angles. We need to blanket the Hill with our message.”
Speaking from his experience in D.C., Nussle said it is “difficult” to get on to the agenda of lawmakers and regulators because there is so much going on in Washington.
“You don’t get on the agenda by complaining about the regulatory burden from the institution standpoint. This is politics. They care about voters. You have to explain how it affects your ability to serve your members, who are voters.”
Goodbye CFPB?
With the two parties fighting tooth-and-nail over the future of the Consumer Financial Protection Bureau, Nussle said credit unions can take heart in lawmakers’ inexperience, of all things.
“I have a confession: these people don’t know what they are doing,” Nussle said of Congress. “I spent 16 years there. Part of the reason they are having so much trouble is they don’t have much experience.”
According to Nussle, a group of inexperienced lawmakers is the end result of voters taking the “throw the bums out” mentality and voting against incumbents. Since the Dodd-Frank Act was passed in 2010, 54 percent of Congress has turned over.
“This is a new group of people who did not roll up their sleeves and work on Dodd-Frank,” he said. “Look at HR 1151 in 1998. There was a big fight and credit unions went on offense to get it passed. But only 18 percent of [that] Congress is still in office. That is why relentless offense is so important. We need to inform members why they have skin in the game when it comes to public policy.”
He pointed out that Congress is getting ready to adjourn for a two-week recess soon. “Call your Congressman and invite him/her to visit the branch,” he urged.
‘Brand platform’ needed
Nussle said it has been a “long time” since there was a coordinated effort to communicate with members, but it is important. “We need to have a brand platform for the credit union category. This is not a marketing campaign or a retail brand. It is who we are as an industry. A foundational definition that will supplement existing league and credit union marketing efforts.
How can we sing off the same song sheet?”
For starters, he said, it’s time to dispel a few myths about CUs: One, people think they cannot join a credit union. Two, they think CUs are more for those in need. Three, they believe accessing their money may be difficult. Four, they think CUs are too small.
“If we are going to do this, we have to break down these myths,” Nussle said. “We need to show we are savvy, successful and for successful people, not fools, in the know, in control. The most receptive audiences are parents ages 35 to 49. A strategy for millennials is down the road. This is for today.”
One other way to smooth the road forward? Stop using confusing language, he said, like the phrase “not for profit.” According to a CUNA study, that phrase “causes anxiety,” he said. “We should still use it, but we should explain it.”
