The nation’s credit unions gathered in Boston early this summer, in the form of the Credit Union National Association’s (CUNA) sponsorship of America’s Credit Union Conference. While the current economic environment and uncharacteristically unfriendly Boston weather may have tried to dampen our enthusiasm, credit union leaders found that there is still much to celebrate and many reasons to be optimistic about the future of our industry.
Massachusetts Credit Union League President Dan Egan welcomed delegates from around the country to his home state and spoke of the origins of our industry in the local area. While the purpose of the Boston location was to indeed celebrate our centennial anniversary in the place where it all started, attendees quickly learned that while the current recession has clearly created challenges, credit unions leaders find themselves well positioned to capitalize on the opportunities that have been presented.
Much of this is due to the fact that as our industry has matured, credit unions have managed to stay true to the original ideals of Roy Bergengren and Edward Filene. We exist only to serve our members and to provide them with the services that they need in order to successfully manage their households and small businesses. This strategy has kept us financially strong and well positioned for continued success.
Practiced And Poised
Certainly, the financial services landscape has changed and appears to be headed for further change, especially in the form of new regulation. Credit unions, however, will not need to significantly change their business practices in order to conform under the new rules. Take credit cards as an example. While listening to CUNA President Dan Mica’s remarks, credit unions were informed of a recent New York Times op-ed piece that stated “credit unions have long been able to turn a profit without charging high fees and/or penalties to their members.” The article goes on to point out the practices followed in the credit union industry will become a model for credit card banking under the new federal regulations.
During the Annual Meeting of the Massachusetts Credit Union League – hosted as part of the larger CUNA meeting — House Financial Services Committee Chairman Barney Frank told credit unions that we will not hear our name mentioned often in the coming months as Congress attempts to re-regulate the industry. He indicated that Congress realizes that we were not the problem and will not need to be part of the solution. He further commented that “if people put all of their money into credit unions, they would be very happy today”.
CUNA economists Bill Hampel and Mike Schenk delivered a message of realism combined with optimism and hope that better days lie ahead. Schenk indicated that “we see that the light at the end of the tunnel is actually the end of the tunnel and not a train. We still have a long, difficult, and uncomfortable time ahead, but we’re on the way out.” Hampel urged credit unions to be restrained in their responses and let their capital cushion do its work.
As the event came to a close, credit union executives and directors returned to their offices across the country. We were physically saturated from four days of nonstop rain but mentally saturated with enthusiasm, new-found optimism and the realization that our model is alive and well and that we are firmly positioned to grow and prosper as our economy recovers.
