MONTREAL, Quebec–NAFCU CEO Dan Berger is calling on credit unions to play more offense than defense, while also outlining for its membership where the trade group has focused its efforts, why it has expanded to allow state charters as members, and why it has entered into a new strategic alliance.
In remarks before the trade group’s 48th Annual Conference and Solutions Expo here said that ““It’s not always easy to be a credit union, as you all know,” said Berger. “With the number of challenges facing us, it would be reasonable for us to always be on the defensive, trying to push back at forces seeking to keep us down or put us out of business. But at NAFCU, we’re playing offense.”
NAFCU CEO Dan Berger speaking to trade group's annual convention in Montreal.
During the meeting, NAFCU also announced a new strategic alliance with CBANC, a free and secure online network for financial institutions that will allow NAFCU member credit unions to share policies, procedures, agreements and best practices in real time.
Berger told his audience that NAFCU will continue to demand more “real transparency” in their budget, including backing the NCUA Budget Transparency Act that is currently before Congress. That bill would require GAO to conduct an in-depth review of the Share Insurance Fund, the Corporate Stabilization Fund, the Central Liquidity Facility and NCUA’s annual operating budget.
Furthermore, noted Berger, NAFCU is also backing a bill introduced from Sen. Dean Heller from Nevada and Sen. Mark Warner from Virginia that would require public hearings on NCUA’s annual budget.
“It's time for the NCUA to have real checks and balances that bring the costs down for the credit unions that fund that agency’s existence, with your members’ money,” said Berger.
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Other points made by Berger during his remarks:
- NAFCU will continue to oppose the “ unnecessary, very expensive, risk-based capital proposal.” Berger said there were a “number of wins for credit unions in the revised rule” that NAFCU had pushed for, but he said all the changes are “not enough.“ We still have serious questions about NCUA’s legal authority to divide the credit union system into two tiers as proposed,” he said.
- NAFCU is also “extremely concerned” about the estimated $4 million it will cost to adjust its Call Report, update its examination systems, and train staff.
- NAFCU remains very concerned over the growth and budget of the CFPB, which now has a budget of $606 million, up from $498-million in 2014. It also had almost 1,400 employees in 2014 will have almost 1,700 in 2016. “The NCUA and CFPB seem to have a lot in common right now: spending a lot of money on things the credit union industry doesn’t need,” said Berger.
- Berger outlined what he called a “never-ending parade of stories about big things coming from small places,” citing growth like that seen by CUs such as Services Center FCU in South Dakota; San Antonio FCU, which recently introduced a cashless kiosk, where members can do all their cashless transactions in real time; and Mission Federal Credit Union in San Diego, which donated $1 million dollars to the Mission Fed Junior Achievement Finance Park – which will work with San Diego high school students to teach them financial literacy, and good saving and budgeting habits.
- Berger said credit unions continue to focus on small business loans, and NAFCU has worked with the SBA to ensure credit unions know what is available. “There are some misconceptions out there that SBA loans are too complicated and difficult from a compliance standpoint – but the agency has streamlined the process in a way that makes these micro loans perfect for credit unions,” said Berger. “Big banks think it’s beneath them to do loans for less than a quarter million dollars. But a $50,000 loan, or an even smaller one, can make a big difference for a small business.”
- Berger said that while “big banks are being hit with astronomical fines because of their gross misconduct,” and with Federal Reserve Chair Janet Yellen recently implying that there is a culture of bad values at big banks, credit unions have been symbols of ethical behavior. “That’s why it’s a great time to be a credit union – we can offer consumers a real difference in terms of service, products, and our culture of cooperation and community-building,” said Berger. “Consumers trust us. Our industry could not be more different from the big banks that have done so much damage. If we remember to focus on the future, work together in a cooperative manner, and to use technology and other innovations to make ourselves a visible alternative, we can only gain more ground and do more good for the people who need us. We may be small, but we can make sure that the work we do and the service we offer is visible to members and potential members, everywhere – from advertisements that feature all the faces from around our communities, to technology that reaches members where they live, and programs that offer their children a head-start on building their financial futures.”
- Berger told the meeting’s opening keynote session of NAFCU’s decision to allow federally insured state charters to join, which CUToday.info earlier reported here.