By Dean Young
Credit union professionals face the daily challenge of educating not only the consumer population but also lawmakers and politicians on the “credit union difference.” Since the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, less than 50% of politicians in office at that time remain in office today. This statistic creates a challenge for industry leaders today.
During PSCU’s Member Forum 2017, CUNA CEO Jim Nussle delivered an urgent message about the need for a strong industry advocacy initiative he dubbed the “Credit Union Advocacy Offense.” Nussle stressed that credit unions have a collective opportunity like never before to build a united campaign based on a five-point strategy that includes:
- A 360-degree approach to advocacy to remove barriers to service and improve the operating environment for credit unions
- Promotions that create better awareness of the credit union difference
- Credit union relevance and solutions in a disruptive financial services market
- An interdependent CUNA/league value proposition
- Increased credit union market share, which has remained relatively flat since 1992 at about 6.8% of total consumer assets
Impressive Statistics
The credit union movement itself touts some impressive statistics, which speak to the potential power of the industry to prevail with an advocacy campaign. In the United States, there are 111 million credit union members and just over 5,900 credit unions. At 111 million, credit union members far outnumber the member bases of some of the country’s most successful advocacy organizations, including the National Rifle Association and AARP, with nearly five-million members and 38-million members, respectively. These numbers give credence to the argument that the time is now to act as an industry to convey the benefits of credit unions to government leaders and other influencers.
Challenges and opportunities facing credit unions in 2017 and beyond include reducing regulatory burden, expanding consumer access to credit unions, taking the lead on payments and data security, protecting the current tax-exempt status, and leveraging industry supporters in D.C.
According to Nussle, disruption requires a holistic approach to advocacy. By marshaling the power and voices of the national trade associations and state leagues, addressing public policy issues and blanketing the Hill with the credit union message, credit unions can “get to the table” and earn a spot on the legislative agenda.
PSCU provides the national trade associations with payments-related data as needed for specific lobbying initiatives, and PSCU representatives serve on various financial services advocacy committees and boards, bringing an industry perspective to important initiatives.
An Equal Opportunity Initiative
PSCU and CUNA Mutual, along with many others in our space, actively support the annual Credit Union Cherry Blossom Ten Mile Run. This event, a prime opportunity for advocacy, is held each year in Washington, D.C. What better way to showcase the credit union difference to legislators on Capitol Hill than bringing together credit unions from across the country in a shared effort to give back, as the proceeds support Children’s Miracle Network Hospitals?
Educating credit union members and nonmembers alike on the credit union difference is an equal opportunity initiative. Let us find creative ways to leverage the nearly one-third of the U.S. population who are credit union members to advocate on behalf of America’s credit unions. A healthy and sustainable credit union movement is dependent on the continuation of a proactive advocacy campaign. It is incumbent on all of us to push forward and fight the good fight.
Dean Young leads PSCU’s strategic direction on how to best leverage the cooperative’s scale to advocate on behalf of the credit union industry. He works collaboratively with key national industry partners to ensure there is alignment on hot topics and a cohesive voice. Dean currently sits on the board for the National Association of Credit Union Service Organizations.