WASHINGTON–Discussion and debate that is usually left underground was brought above ground and front and center here during a unique and fast-paced discussion of numerous issues confronting credit unions.
At the UNDERGROUND Conference in Washington, 72 executives representing two countries and 18 states came together, drawn from credit unions, associations, corporates, CUSOs and other business partners. CUToday.info is highlighting the diverse and frank discussion from the meeting as part of UNDERGROUND Week this week in The Boost.
Panel discussion at UNDERGROUND Conference with Brandi Stankovic at right.
The meeting was organized and assembled by Susan Mitchell and Brandi Stankovic, partners at Mitchell, Stankovic and Associates, who sought to create a forum where executives to get together and share ideas that were outside the mainstream.
“There are significant issues emerging for credit unions being talked about by the watercooler but not in the boardroom,” said Stankovic. “CEO networking sessions used to be a confidential place to share information and set the stage for unified positions. Today, they are more often a forum for politically correct dialogue rather than for progressive change.”
“Our goal was to conduct an honest, transparent, and challenging discussion about dynamic issues needed for credit unions to thrive over the next five years,” stated Mitchell. “We collected industry thought leaders with passionate knowledge, tools and initiatives and encouraged them to share ideas.”
The UNDERGROUND attendees spent four hours in fast paced, energized dialogue. Among the conclusions by many of the speakers and attendees:
- Now it is time for bold action and to break some rules.
- Now is the time to use the divisive rhetoric that has both engaged and enraged the population.
- Now is the time to capture market awareness for credit unions by being the solution, the alternative, the financial support that leads to a better life for members and their families.
“Credit unions are an important part of social and economic prosperity throughout the world,” declared Randy Karnes, CEO of CU*Answers in Grand Rapids, MIch. “Have we let the doctrine cast by the purpose of being a financial institution eradicate the purpose of being a cooperative? It is time to reset our relationship with those who govern us and the dogma we wrap ourselves around. When an industry picks winners and losers on scale, not creativity; on compliance, not the consumer voice. and on an agent’s career, not member needs, we lose the spirit of ownership. No one, government or external commentator, should dominate a perspective on our purpose. The dominating idea that inspires member ownership is that our organizations have the autonomy of purpose which defines the relevance to those who support and drive the cooperative.”
While credit unions are battling growing forces that make competing increasingly difficult, at the same time there has never been more need among consumers for what credit unions represent. Among the data drawn from the Center for Financial Innovation and Callahan & Associates and shared at the UNDERGROUND Conference:
- 76% of Americans are living paycheck to paycheck
- 37% of Americans have credit card debt greater than their savings
- 56% of Americans with FICO score between 500-649 will pay more than $200,000 in higher lifetime interest vs those with well qualified scores
- 52% of American households say they do not have a planned savings habit
- 47% of Americans couldn’t come up with $400 in an emergency
- 43% of Americans describe themselves as struggling to pay bills and credit payments
- Unbanked households will spend $40K in their lifetime to cash checks
“Helping members to be smarter, empowered financial consumers is how credit unions differentiate themselves,” attendees were told.