WASHINGTON—Jim Nussle kicked off the first full day of CUNA’s Governmental Affairs Conference Monday saying it’s time credit unions stop worrying about market disruptors and begin taking steps to ensure CUs once more become the disruptors themselves.
Nussle reminded attendees that in 1934 credit unions were the market disruptors to the “failed banks. And we have the opportunity to do that again.”
Referencing the disruption within the taxi industry from ride share services, Nussle pointed out that in the nation’s capital today there are 6,000 taxi drivers compared with 13,000 Uber drivers.
“Taxis were one industry we never thought would have been disrupted,” said Nussle. “And Walmart decided to stop construction on 130 new stores this year with plans to close 130 more, all due to Amazon.com”
Nussle said that all the market disruption is not bad, but asked whether credit unions will be the “Uber or the taxis? We don’t want to be the bug in the windshield, we want to be the windshield.”
Nussle emphasized that the 100 large banks are not swift movers, and that smaller, more nimble credit unions are “ripe” to steal the banks’ market share. He said that credit unions are already doing that with strong financial performance and membership growth in the past few years.
“We are already getting it done,” said Nussle. “Look at the membership growth. We were at 3% last year and we can do even better. We have enjoyed double-digit lending growth for the past two years and in 2016 we are on a similar path. Our small business lending growth now exceeds the banks,’ and with the new MBL rule the sky is the limit in serving this market even better than before.”
Nussle emphasized other critical issues credit unions and CUNA must address in 2016—one being that credit unions should be celebrating the credit union difference.
“We need to let people know of our accomplishments, and how we on a daily basis help improve the lives of our members,” Nussle said. “We need to aggregate and celebrate our successes, not only to policymakers but to the public at large.”
As Nussle said at 2015’s GAC, it will take the support of not only credit unions and their staff, but their members and directors. “We have to be a choir,” said the son of a choir director.
Nussle emphasized that lobbyists can only do so much and that elected official listen most to the voice of their constituents, asking for strong grassroots efforts from credit unions and their members.
“We need to reignite our relevance,” said Nussle about the future of credit unions, cautioning that there should be little concern about aggressive efforts from CUs “waking up” bankers. “Don’t worry, they are already awake.”