SPRINGFIELD, Va.–The leaders of three banking industry trade groups have published an op-ed in Military Times under the headline, “Why Banks Should be Treated the Same As Credit Unions on Base.”
The three execs argue steps must be taken to stop credit unions’ “growing monopoly” on military bases.
The op-ed was authored by Rob Nichols, president of the American Bankers Association; Steve Lepper, CEO of the Association of Military Banks of America; and Rebecca Romero, president of the Independent Community Bankers of America.
“The men and women who serve our country in uniform deserve the deep appreciation of the American people. Given the sacrifices they make for the nation, they also deserve every possible advantage we can provide them when it comes to taking care of their families,” the op-ed reads. “One of the biggest challenges of military service is achieving financial stability and resilience. Moving every couple of years is expensive and precludes many military spouses from developing the kinds of careers other two-paycheck American households enjoy. Add the constant threats posed by predatory financial actors — payday lenders, pawn shops, used car dealers — lining the roads outside most U.S. military installations and you have a formula for financial ruin.”
Military Must Be ‘Protected’
Writing that Congress has recognized members of the military must be protected from financial predators, the op-ed notes Congress is now debating the 2020 National Defense Authorization Act. As CUToday.info has reported, the Senate version of the bill includes language that would give banks equal access to military banks as that of credit unions. The House version did not include the language.
“Unfortunately, over the past 15 years, rising rent and other government-imposed costs have forced banks to leave over 40% of U.S. military bases. At the same time, DoD does not ask credit unions to pay rent on post even though they typically offer similar services as banks,” the op-ed reads. “It should also be noted that unlike banks, credit unions pay no federal income taxes.
“As a result of this unequal treatment, today there are just 75 banks operating on DoD installations; three-fourths of those institutions are smaller, community banks trying their best to simply serve their local customers,” the op-ed continues. “The Senate version of the NDAA, authored by Senate Armed Services Committee Chairman James Inhofe, finally ends that inequity by requiring DoD to treat banks and credit unions equally for the benefit of military members and their families.”
‘Growing Monopoly’
The three authors go on to write, “Unfortunately, the credit union lobby opposes this legislation because they know it will end their growing monopoly at bases across the country and force them to compete for service members’ business. Indeed, the DoD’s longstanding ‘one bank, one credit union’ policy recognizes that having both on military installations promotes choice and provides military families with the most comprehensive and competitive financial services possible. Military families understand the value of having both on bases as well. In a 2017 Military Saves survey, 59% of respondents regarded banks and credit unions as their most helpful sources of financial information.”
The authors state that outside of most military installations, Americans have a choice of financial services providers, but if Congress doesn’t “level the playing field,” people on base will lack that same choice.