LONG BEACH, Calif.–After three years of hosting its biggest event virtually, NAFCU held its annual convention in person here, with CEO Dan Berger telling the assembled credit unions whether it’s been virtual or in-person, credit unions have met all of the moments.
“We were forced into isolation and we had to quickly transition our entire businesses into a virtual experience,” Berger told the meeting. “We had to continue to meet our members’ needs and expectations during a time when millions of people were facing health and financial hardships. For you and your credit unions this was a time when your members needed you and your support the most. You stepped up and you delivered.”
Fast forwarding to today , Berger said the word he believes best describes the current landscape is “chaos,” but he doesn’t see that as a problem.
Not a Negative
“You might think that has a negative connotation, but in the midst of chaos there's also opportunity. That's a quote from the Art of War. I think it's an appropriate, positive mindset for this meeting,” said Berger. “In financial services in the past several months we've seen the biggest bank failures since the 2008 financial crisis. The causes can be traced to greedy, profit-seeking bank executives chasing yields and profits and taking in too many uninsured deposits and, of course, making investments that led to losses when interest rates rose.
“We went from consumers having excess savings--bolstered by government support—to people struggling to make ends meet because of sky high inflation,” Berger said.
A Reconsideration
Berger said many credit unions have been forced to reconsider the products and services offered, and the trade group has had to respond, too.
“NAFCU exists to guide credit unions through the chaos with an incredibly responsive compliance team answering hundreds of questions each and every month, with our year-round educational opportunities to keep you and your employees well informed and, of course, our relentless advocacy team fighting daily on Capitol Hill and calming the waters among the regulators in Washington to ensure that you're not in an overcomplicated, burdensome environment,” said Berger. “We do this because we're passionate about the credit union industry, absolutely passionate about what you do on a daily basis. You inspire us with your mission. You are the pillars of strength in your communities providing peace of mind to members facing moments of turbulence and insecurity in their lives.”
Closings—& Openings
Berger cited the consolidation taking place in financial services, including the closure of some 11,000 branches during the last decade, 1,500 of which occurred in 2022 alone.
He praised credit unions for adding branches and “opening doors with communities that have been left behind. You recognize the difference you can make people's lives by offering them a little help, whether that's by offering affordable loans, working with members to repair their credit scores or volunteering the local charities in their communities,” Berger said. “You don't do these things to inflate your profits like the banks do; you do them because it's the right thing to do. That’s why the industry has seen five-million new members this past year.”
Berger said NAFCU’s “why” is to help credit unions grow to strengthen the credit union industry, which is why it is focused on “ACE”: advocacy, compliance and education.
“Unless a product or services falls in one of those three buckets, we just don't do it anymore,” said Berger.
Best Days Ahead
“This current moment in history is chaotic. It can be confusing,” continued Berger. “From around the world to around the corner, there's a lot going on. Credit unions are incredibly busy. You're facing many challenges: liquidity, competition , inflation and the list goes on and on. You continue to persevere because even in the midst of chaos there's opportunity for innovation, for collaboration, for growth and, of course, for success…I am absolutely confident the industry’s best days are ahead of us.”