CHARLOTTE–NCUA Chairman Rodney Hood told credit unions here the country is going through an unprecedented demographic transition and that CUs have a chance to show leadership in response.
“This is a time of seismic change,” Hood told the annual meeting of the African-American Credit Union Coalition, “and that dynamic creates both challenges and opportunities. I consider financial inclusion to be the civil rights issue of our time. For too long, too many people have been overlooked or locked out of the financial system. Lack of access holds working families back from climbing the financial ladder.
“I believe credit union are better-positioned than any other player in the financial sector to make a big difference when it comes to diversity and inclusion; because those are a fundamental part of our industry’s history,” he added.
Hood, who was recognized by AACUC Executive Director Renee Sattiewhite as the first African-American to lead a federal banking regulator, said a commitment to service has set the course of his life and career.
“When I embarked on my banking career, I always saw our primary mission in simple terms,” Hood said. “It was about people helping people and people serving people.”
Other Issues
Other issues touched on by Hood during his remarks included:
- “Cybersecurity is a significant concern,” Hood said. “Even the largest and strongest financial institutions have points of vulnerability. It will remain a top priority for NCUA during my chairmanship, and I recently appointed a cybersecurity advisor who reports directly to me.
- “On the other side of the ledger, financial technology is creating a different kind of challenge, in the form of new ways of doing business and new customer expectations,” he said. “Mobile banking, digital payments, artificial intelligence, data aggregation, or whatever may come next. These trends are going to change the way you engage members, analyze lending risk and market your products and services.”
- Hood said he has made a commitment to regulations “that will encourage innovation, provide flexibility, and fulfill our primary mission of protecting safety and soundness.”Two examples of this effort, he said, were increasing the threshold for requiring commercial property appraisals from $250,000 to $1 million and a two-year delay in the agency’s risk-based capital rule.
- Hood said the two-year delay in the risk-based capital rule will ensure it will be properly implemented and will give NCUA an opportunity to take “a holistic approach to the issue of capital in the credit union system. The goal is to create a regulatory system that is effective, but not excessive, so you can go about your vital work of lending and providing your members with the highest level of service and quality, affordable financial products.”
- “The key to this industry’s future success lies with staying true to the values the credit union system was founded up,” Hood said, “the commitment to people helping people by fostering greater financial inclusion, accessibility, and opportunity for all Americans.”
Hood’s full remarks can be found here.