TALLAHASSEE, Fla.-Running a corporate credit union is a thankless job these days, but Brad Miller is embracing his new role as the head of Southeast Corporate FCU here.
The former executive director of the Association of Corporate Credit Unions accepted the CEO post in January and told Credit Union Journal that he's energized by his new position and not fearful of the challenges that lie ahead
"I came into this position eyes wide open and understanding that we have a lot of challenges, but also a lot of opportunities at Southeast Corp to bring about positive change that we need in the system," said Miller. "While my experience at ACCU was very valuable and I wouldn't trade it for anything, I felt the need to get back into the corporate system and be on the front lines of a corporate."
The most obvious challenge the institution faces is dealing with NCUA's pending regulation changes; Miller said that adapting to the new regulation will take a "tremendous amount of effort" by corporates, their partners and their member credit unions. Miller was somewhat critical of certain provisions in the regulation regarding risk, saying that NCUA needs to strike a better balance between limiting risk and allowing corporates to remain viable and a valuable resource for natural person institutions.
"Changes are absolutely necessary to address the issues that caused the losses that CUs are paying the tab for," he said. "Overall I think there are a number of sound recommendations, and conceptually I agree with many of the changes, but in some cases credit unions would benefit for some adjustments of the proposed reg."
Faced with pending investment restrictions, capital requirements, continued losses and a weak economy, Southeast Corporate is in the process of changing its business model to adapt to new realities. Miller argued that while a massive consolidation in the corporate system is unnecessary, all institutions have to get back to the basics of cooperation. His corporate plans to work with regional partners to consolidate back office functions and bring in best of breed services for member credit unions. Miller also sees new roles for corporates emerging in the near future-providing risk management, compliance and technology services.
Southeast Corporate has also hosted a number of town hall meetings in the region and created the concept for a new structural model in the post-regulatory change era. Though he did not delve into specifics, Miller insisted that the corporate would not be asking for additional capital from member CUs.
"But like all corporates we have these new capital hurdles that we're all going to have to hit," he added. "The existing capital that is with us will [have to be converted] to perpetual capital because once that rule goes into place you don't get credit for that MCS."
