PALM DESERT, Calif. – The heads of CUNA and the California and Nevada Credit Union Leagues argued now is not the time for CUs to break up the CUNA/state league system that works well together.
Jim Nussle, president and CEO of CUNA, and Diana Dykstra, president and CEO of the CCUL/NCUL, on Wednesday addressed one of the hotter topics in credit union land on the opening night of the California/Nevada CU Leagues' Annual Meeting and Convention here. While there has been a drumbeat for giving credit unions the option to
Nussle said he has been told by the CUNA board throughout his first year on the job there are three important topics on which to focus: One, modernize the association. "This will take time, leadership and buy-in from credit unions across the country," he said. Second: Focus, and "focus needs focus," he quipped. "Job One has to be advocacy. Advocacy is the one thing credit unions cannot do by themselves, leagues cannot do by themselves and CUNA cannot do by itself." Third: Being united. Nussle offered his perspective as a former Congressman from Iowa, stating the credit union world looks "united from the outside, but on the inside we have some uniting to do. There needs to be bold new agendas not just for survival, but for growing. To me, victory is growth."
Dykstra referenced CUNA's System Structure and Governance Task Force, and its
But she also emphasized the Task Force's oft-overlooked third recommendation, that advocacy be CUNA's chief focus. "Offering choice without considering the ramifications could lead to loss of unity," Dykstra predicted. "The winner would be American Bankers Association. They are waiting for the breakup of this powerful system. The CUNA/league system works well together."
Dykstra acknowledged several CUs have been asking the California and Nevada CU Leagues about the issue of affiliation choice. She said the leadership of the CCUL/NCUL supports interdependence. "In January there will be serious dialogue on what choice would look like," she said. "We are not ignoring you, but we only have one chance to get it right. I welcome continued dialogue, so please call me. I apologize if my communication before today was not clear. I promise communication will be better going forward. I hope we do not tear our system apart."
Nussle said the Task Force on Structure and Governance "was a great learning experience," and he agreed the structure of CUNA needs to be modernized. He said the trade association will be introducing new structure in December. "Associations are cursed sometimes trying to be all things to all people," he said. "We need to focus on what we are good at and what makes us unique. In the case of CUNA, we need to have 360-degree advocacy. This consists of three main parts: one, a bold agenda, something to be able to talk about. Second, have a strategy that can actually get success. Third, we have to sharpen the tools in the toolbox of advocacy. All three are needed. My job is to make sure all three happen."
Nussle said he has a "bold agenda" for the future. "We have got to attack the regulatory burden that is crippling us and hurting our ability to serve our members," he offered as the first item. Second: when working with Congress and/or regulators, CUs have to give them data. "Every industry comes to Washington talking about their burden. We have to show the burden." He said CUNA has a study underway that will monetize the regulatory burden, credit union by credit union. "We need evidence, not just complaints."
To protect the credit union difference, which he said includes the tax exemption, Nussle said the movement must get board members and employees of CUs involved. "They need to be engaged in advocacy. Then, the 100 million members. I do not want a fair fight with bankers – 6,000 credit union CEOs versus 6,000 bank CEOs – I want to get millions of people engaged in advocacy. I want to be like AARP in the ability to activate members across the country."
Dykstra said credit unions do not always realize the advocacy efforts their state leagues engage in. She said CUs in California benefitted from two "significant wins" in the form of bills that were stopped by the CCUL's team in Sacramento. One was a bankruptcy bill that would have raised the exemption. The second related to earthquake insurance. In Nevada, credit union advocates are fighting the ability of homeowners associations to initiate foreclosures that supersede mortgage liens. "NCUA will be taking up member business lending and field of membership soon. When these rules come out, the American Bankers Association will flood NCUA with comments. Credit unions need to rise up and write comment letters. These are good rules that are about removing restrictions."
Nussle listed four tasks he wants CUs to do: One, tell your story. Every day credit unions live the credit union difference and the regulatory burden. Tell this story everywhere.
Two, commitment. Engage with policy makers. Attend a town meeting with your staff. Invite local lawmakers to visit the credit union. Tell them what the credit union does.
Third, contribute to political action committees. Monetary contributions make a difference.
Fourth, encourage people to get engaged. Our credit union movement did not develop and succeed with apathy. Need even more to get the tool to be sharp.
