VIENNA, Va.–More than 1,500 people representing nearly 60 countries from around the world kicked off the World Credit Union Conference here with the sound of caution and encouragement, as well as a little Sound of Music.
The Austria Center in Vienna, home to WOCCU meeting.
The World Council of Credit Unions will be hosting the conference through Wednesday evening in Austria’s famed city on the Danube. CUToday.info will have complete coverage.
In opening remarks, World Council of Credit Unions’ Chairman Daniel Burns told the meeting that credit unions around the globe have been brought together by more than a common mission, they’ve had to band together in response to a common threat: the after-effects of the financial crisis of a decade ago.
It was a crisis, stressed Burns, who represents Canada’s credit unions on the WOCCU board, that was caused by the world’s banks.
“The great banking crisis pout in motion two great forces that are threatening credit unions,” Burns told an audience of nearly 1,600 delegates from 58 countries. “Whether we like it or not, we are now seen under a completely different regulatory regime. We now have regulators around the world who treat us like for-profit banks, and regulators who don’t treat us like for-profit banks are regulators who are about to treat us like for-profit banks.”
What 'Purpose' Should Do
Purpose, said Burns, “should determine regulation.”
Daniel Burns speaking to WOCCU meeting.
“The pursuit of profit caused the banking crisis, not banking,” he said. “Leverage drives risk, and even the micro-loan business has been sullied by profit. We are different. A bank CEO’s interests are aligned with the shareholder’s best interests. That was the root of the last crisis, and will be the root of the next one. We align our CEOs’ goals with our members’ goals. We do not require regulation to control greed, we require regulation to control stability.”
Burns said regulators around the world are “ignoring” the differences credit unions represent. He said one of the achievements he is most proud of while on the WOCCU board is a doubling of advocacy efforts by the association with regulators around the globe. The result has been a number of what Burns said are “victories” with the Basel Committee as it makes its rulings.
The second force affecting credit unions, according to Burns, is financial technology, most often referred to as fintech.
Threatening & Empowering
“It is both threatening and potentially empowering,” Burns said. “When the great bank crisis began, the banking sector began to consolidate.
Traditional Austrian dancers, plus a little Sound of Music open the WOCCU meeting.
And that is when fintech start-ups entered the market hoping to change the way people bank, much the same way we did 100 years ago. These fintechs are now starting to partner with the banking sector, and we must partner with them, as well. That is why WOCCU has made technology one of our focal points. Technology is the great leveler. It allows us to breathe life into our cooperative principles in better ways.”
Burns told credit unions they should remember they are the “original sharing economy.”
“Our purpose is timeliness,” he said. “We help people achieve decent and fulfilling lives through financial empowerment and security. A higher purpose brought us together and that higher purpose will keep us together.”
Distinguished Service Awards
During the WOCCU meeting, four people/organizations were recognized with the association’s highest honor, its Distinguished Service Awards.
Grzegorz Bierecki accepting award in Vienna.
The winners included:
Grzegorz Bierecki, Poland
Bierecki was a pioneer in credit unions when Poland’s fledgling movement was seeking to find its legs following the collapse of Communism nearly two decades ago. Poland formed a partnership with Georgia Credit Union Affiliates in the U.S. that has become a model for many other similar partnerships. Today, he is no longer an active participant in that country’s credit unions and instead serves in Poland’s Senate.
“My wife has been a credit union widow for last 27 years. My kids grew up at WOCCU conferences,” Bierecki said. “Credit unions offer answers to many of today’s challenges. We have this migration challenge in Europe. People travel across the sea, and it’s not a privilege to leave your house and travel to unknown place in a little boat. If these people had credit unions, to fair credit, to help them to build their lives, they would certainly stay home with their friends and families and nations.
Dean Mahon, United States
Dean Mahan was active in credit unions and microfinance projects around the world for nearly 40 years, working with the World Council of Credit Unions and with US AID. Sadly, Mahon died while doing work in Asia earlier this year. The award was accepted by his daughter, Elizabeth.
ue Mitchell and Calyn Ostrowski accept award for GWLN.
Ukrainian National Credit Union Association, United States
The UNCUA is headquartered in Chicago and represents 13 Ukrainian credit unions in the U.S. It has been actively working to help credit unions in the Ukraine to build their organizations.
Global Women’s Leadership Network, United States
Launched a decade ago at the suggestion of WOCCU President Brian Branch, the Global Women’s Leadership Network has now topped 2,000 members from more than four-dozen countries around the world. The award was accepted by its chairman, Sue Mitchell of Mitchell Stankovic, and by Calyn Ostrowski of the World Council. CUToday.info has coverage of the Global Women’s Leadership Council elsewhere.