MONTREAL, Quebec– NAFCU is opening its membership to federally insured, state-chartered credit unions effective immediately. The trade group told CUToday.info it will not in any way change its focus on federal issues and it will not be doing any work at the state level. NAFCU already has approximately three-dozen federally insured, state-chartered CUs as members, representing former federal charters that converted.
“The NAFCU Board made this unanimous decision because our industry is rapidly evolving, and in a changing marketplace, credit unions are seeking more from their advocacy organizations,” said NAFCU CEO Dan Berger at the trade group’s annual meeting here. “We’ve heard that message and are ready to rise to the challenge.”
The move was officially approved by the NAFCU board when it OK’d the bylaws change on June 5.
NAFCU Chairman Ed Templeton said the trade group has not rushed into the decision to expand, noting that discussions over the issue have been going on for at least a decade.
Both Templeton and Berger stressed NAFCU will not in any way be taking its eye off the “federal” in its name.
“The board made a very clear, very deliberate decision that we remain focused like a laser on federal issues,” said Templeton. “We are not going to engage in any way on the state level or in state advocacy. We will never, ever, ever lose our focus on federal issues.”
Dan Berger
When asked whether he thought some CUNA-affiliated state charters might drop their affiliation in favor of joining NAFCU, Templeton said he didn’t think of NAFCU. He noted that his own credit union, the North Augusta, S.C.-based SRP FCU, is federally chartered but still belongs to CUNA and the Carolinas Credit Union League.
“Each credit union will have to decide on what to do,” said Templeton.
Berger said NAFCU will continue to be the “best” in federal advocacy, training and compliance assistance.
'Not a Reactionary Move'
Both Berger and Templeton said the move is not a reaction to the shrinking number of credit unions, and the resulting shrinking number of dues-payers. But Templeton acknowledged, “NAFCU is looking to the future and evolving. How we can play a role in that evolution is where we are focused.”
Berger said state charters have consistently asked him and others at NAFCU about when they might be able to join the association. “I probably get that question about once a week,” said Berger.
Berger said that not only will the addition of state charters not dilute NAFCU’s message on Capitol Hill, it will actually “make us more powerful” by representing a greater number of CUs.
NAFCU will likely roll out some sort of marketing campaign around the expanded membership, but has no official plans at this point, according to Berger. Instead, he said its marketing will continue to emphasize advocacy, compliance and training. In addition, he said there are no current plans to add personnel.
NAFCU noted that for half a century it has represented federal credit unions nationwide before key policymakers and regulators in Washington, including Congress, NCUA and the CFPB. Having led the fight for federal share insurance for credit union members, NAFCU said it has long recognized that its advocacy efforts at the federal level have an impact on all credit unions, both federal and state-chartered.
“This announcement is a natural evolution of NAFCU’s mission and supports our goal to help all credit unions with federal issues by becoming a stronger, more impactful organization,” said Ed Templeton, chair and director-at-large of the NAFCU Board of Directors. “This unanimous decision included enthusiastic support from our board because it will further NAFCU’s ability to provide the absolute best in member service and choice to all federally insured credit unions.”
Berger said state charters have regularly asked about joining NAFCU but were unable to until the recent bylaws change. NAFCU has posted a video related to the expansion here.
Annual Meeting Kicks Off
Meanwhile, has kicked off its Annual Conference and Solutions Expo here, drawing a crowd of several thousand. The meeting is officially starting today, which also happens to be Saint Jean-Baptiste Day in Quebec, a public holiday celebrated as the province’s birthday. The meeting will run through Friday.
“We’re thrilled to host our Annual Conference this year in Montreal,” said CEO Dan Berger. “This conference will provide all attendees critical industry information, valuable networking opportunities and new ways to help improve their bottom lines.”
Yesterday Berger led a “Private Conversation” for attendees with NAFCU’s senior staff, and a number of pre-conference workshops were held as well.
Among the speakers on tap for the meeting this week are MasterCard General Counsel and Chief Franchise Officer Tim Murphy, former U.S. Navy captain Mike Abrashoff, and TrendHunter.com founder and CEO Jeremy Gutsche.
Winners of NAFCU’s 2015 Annual Awards will be recognized on today. The awards recognize association member credit unions and individuals for excellence and achievement in the industry.
MasterCard is the Annual Conference’s Signature Sponsor. Additional sponsors of the 2015 conference include NAFCU Services Corporation, Allied Solutions, CO-OP Financial Services, CUNA Mutual Group, Vantiv, LLC, and VISA.
The conference coincides with Montreal’s world-renowned International Jazz Festival.