NEW ORLEANS—There are trying times ahead for consumers, which means It’s never been a better time to be a credit union to not just lend a hand, but to play a role in the “trust crash,” according to NAFCU President Dan Berger.
Berger kicked off the trade association’s annual conference here by saying credit unions, especially when compared with banks, are prepared to help millions of Americans face their financial challenges—balancing the family budget and simply making ends meet.
“There’s never been a better and more rewarding time to make a big difference in people’s lives,” said Berger. “Why do I say that? Watch the news; the world is chaotic, people are living in stressful times and they are feeling insecure about their financial future. A majority of Americans feel they won’t be better off in five years than they are now. And most are living paycheck to paycheck.”
A ‘Trust Crash’
Americans are losing trust in many things, according to Berger.
“We are facing a trust crisis—a trust crash,” he said. “Millions of Americans feel let down by the government and violated by the big banks. The good news is people are not losing hope, they are just looking for things to trust.”
Berger emphasized to attendees that Washington, big business and big banks have jaded many consumers’ outlook on America. Berger said people are looking closer to home—within their communities—for organizations to trust.”
“They don’t trust big business, they don’t trust Washington, and they don’t trust banks. But they do trust credit unions,” Berger said.
He said people trust CUs because they treat members fairly, with respect, and help them manage their lives every day.
Help During Crises
Berger noted credit unions have proven how they respond in times of crisis over the years, pointing to the numerous natural disasters that struck the U.S. in 2018—the California wildfires, flooding in Nebraska, tornadoes across the Midwest and others events. He talked about how CUs are an integral part of the communities they serve and respond quickly and effectively in times of trouble—with physical and monetary assistance to help towns rebuild, emergency no-interest loans, loan payment deferrals and other services.
“We have proven ourselves worthy of gaining people’s trust,” Berger said.
Helping During Shutdown
Sometimes the trouble people face is not from the environment, but from the leaders of the country, added Berger, who referenced the government shutdown last year.
“Arkansas Federal Credit Union issued interest-free loans to replace federal paychecks, and offered free financial counseling to members, and potential members, to help find additional savings,” shared Berger. “In California, Logix Federal Credit Union offered unsecured loans for up to five thousand dollars with a 12-month repayment, a credit card line increase of 10%, modifications to existing consumer loans, and more, all to help furloughed workers make ends meet. And in Florida, JetStream Federal Credit Union granted numerous payment extensions and offered Furlough Relief Loans, with 0% interest and no payments for 60 days.”
Berger said that is the kind of flexibility, fair treatment, and honest service, with a human touch, that can make a real difference in times of need.
“It doesn’t just inspire trust. It’s the kind of thing that’ll earn you a member's lifelong loyalty. Because when you show up for people, when you extend a helping hand, they never forget it.”
The Cure
Berger quoted former president Bill Clinton who said there is nothing wrong with America that cannot be cured by what is right with America.
“Credit unions, are just one of the many things that’s right with America,” said Berger. “Which means that, when something goes wrong, whether it’s an act of God or government, this community can be part of the cure.”