I am concerned about the future of the industry. Are we ready to serve members changing financial needs in the digital age? I think the technology exists (and will continue to be developed) that will enable credit unions and other financial service providers to work within the digital life style that younger (and some older) members want. I’m not certain the regulatory environment is there yet. Nor, do I hear encouraging discussions that make me think we’re headed there. I am concerned that Agency (NCUA) Executives are so busy analyzing industry data (past events) that they are not advising the Board about future possibilities. And, every six years there is a reconstituted Agency Board. How does a conversation about the future come to the Board?
There are two issues that I believe are holding credit unions back. Both issues will require regulatory courage, perhaps legislative courage, for the industry to recapture the status of a movement and head into the future. First, I believe it is well past time for fields of membership to move beyond geographic boundaries. The future, mobile delivery channel will know no geographic boundaries. Is the Agency ready to consider a world without brick & mortar branches to serve members? If the Agency’s leadership is ready, I don’t see evidence in the field.
Second, there is a need for secondary capital in the natural person credit union. When this subject has been brought up in the past, it has been roundly dismissed. After all, the industry has eleven percent capital. Why would any credit union need access to additional capital? Well, if the beginning of this current economic cycle portends the future, we’re in for a very bumpy ride. Unfortunately, this may be the catalyst that is needed to bring the issue to the table. Wish we, as an industry, had been more pro-active. I’d be happy to share letter’s I’ve written to sitting NCUA Board Member Gigi Hyland (2008), former NCUA Board Chairman Dollar (2003) and former US Congressman, Jim Davis (D-FL) [2004] on the subject.
Again, how do we get the conversation started? Please, may I hear from you via return email?
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Wow! What an intense discussion. I believe the concern comes from upper management and our front line staff. The question is, where are we headed? What's our focus? Since Credit Unions have been very close to being a "bank", why are we not as profitable? Why are we still holding back?
Interesting topic!!! :)
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