PayThink

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.

When I travel around the country and speak at conferences, one question I always get asked by credit unions is: “What are the hot examination issues this year?” Recently, I moderated a webinar with NCUA staff squarely on this topic. Two issues were discussed: the evaluation of third party relationships and strategic planning.

The issue on everyone’s mind today: Growth. Credit unions of all sizes, CUSOs, and even consultants and vendors serving the credit union industry are all wrestling with the struggle to grow. I am not going to recount overall industry growth rates or trends in the financial services industry. The growth challenge is most acute at the personal, individual credit union level among credit union CEOs, board members, branch managers and marketing people. Everyone is feeling the heat.

Bachelor’s degree required, MBA preferred.”