By The Way
The By The Way newsletter is a great way to keep Kentucky credit unions informed of the latest updates in governmental affairs, compliance and regulations, education and training. In addition, By the Way highlights the difference credit unions are making on a daily basis.
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President's Update
Bringing Membership and Credit Union Services to ALL Kentuckians
Credit unions were founded to provide low-cost financial products and services to consumers, along with financial education to empower people to live their best lives. Despite the more widespread availability of technology, for many Americans, this access still depends on physical branch locations. A banking desert is defined as a census tract without a physical branch within it or within a certain geographic radius, and a potential banking desert as a single branch within it. Banking deserts have become a hot topic in the financial services industry, particularly for regulators.
Our friends at America’s Credit Unions just released the results of some research regarding the creation and elimination of banking deserts by financial institutions. As you can see in the table below, credit unions have done a significantly better job at eliminating banking deserts than our bank counterparts.
According to the Federal Reserve, 5% of Kentucky’s census tracts are banking desserts, and another 4% could become a banking desert. While that may seem low, that puts nearly 10% of our state in this category. (You can access the Fed tool here.)
Kentucky’s credit unions have worked hard to fulfill their mission for more than 100 years, and we have more opportunities before us. The league is excited to work side by side with our credit unions and state officials to eliminate these deserts entirely. Together we can improve the lives of Kentuckians by extending invaluable credit union membership to ALL Kentuckians.
If you want to know how the League can help your credit union capture these opportunities, reach out to us today.
Sincerely,
Jim Kasch
League President
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Governmental Affairs Update
June is always a busy month for us personally and professionally. Many people take vacations and spend time with family, while others start planning future projects. This month, Congress is working on passing the National Defense Authorization Act (NDAA), which is likely one of the last crucial pieces of legislation for the year as we approach the election season. The significance of this shift is highlighted by the upcoming presidential debate on the 27th, which may be the only one. This trend is also evident in Frankfort, where new legislative task forces and working groups are forming to prepare for the 2025 session. Kentucky’s Credit Unions remains actively involved at both levels, advocating for all Credit Unions during this time of change. I’m interested in hearing how you or your Credit Union are planning and shifting focus.
Please reach out to me with any questions or updates. I look forward to hearing from you soon.
Sincerely,
Kyle Hagerty, CUCE
VP, Governmental Affairs & Compliance
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SRCUS celebrates 42 graduates of Southeast Management School program
The Southeastern Regional Credit Union School (SRCUS) is pleased to announce that 42 distinguished credit union executives graduated on June 21 from Southeast Management School after successful completion of the three-year program on the campus of the University of Georgia in Athens, Georgia.
For over 50 years, Southeast Management School has trained graduates to tackle leadership challenges in the credit union industry. The curriculum enhances operational, managerial, and leadership skills through advanced academic instruction. Students apply this knowledge to strategic projects for their credit unions, addressing industry issues. They also develop debate and presentation skills, and a deep understanding of the credit union philosophy to contribute to their credit unions' success.
During the ceremony, which streamed live on Facebook, graduates heard reflections and words of inspiration respectively from 2nd and 3rd year class leaders, Marlena Gannon-Frament of Marine FCU and Brad Ballentine of SAFE FCU, as well as SRCUS Academic Advisor Dr. Craig Piercy.
“The networks we have built [are] invaluable and will serve as a strong foundation as we continue our careers in the credit union movement,” shared Gannon-Frament. “As we move forward, let’s carry the lessons learned … during our time at SRCUS. Let us be advocates for our members, champions of ethical practices, and pioneers of financial innovations.”
Ballentine echoed Gannon-Frament’s sentiments while also thanking SRCUS staff for all they do “to make sure this school remains relevant in our ever-changing industry.”
“Although I’m not sad about graduating, it is a little weird knowing we won’t be here together next year,” said Ballentine. “However, we will continue to help each other … take back what we learned to improve our credit unions to better serve our members … keep celebrating each other’s successes … and keep our eyes open for the next generation of leaders so we can give them the same opportunities that were afforded to us.”
In addition to completing the rigorous curriculum, testing to earn credits through the American Council on Education (ACE) and the Certified Credit Union Executive (CCUE) designation was introduced this year. First-year students completed testing on year one curriculum while second-year students and 2024 graduates have the option to take a cumulative test this summer. ACE recognizes nine continuing education credits upon completion of SRCUS.
Piercy spoke to the momentous success of all the students during the ceremony, especially the Class of 2024, saying, “You’ve worked tirelessly … taken your courses seriously … and demonstrated an unparalleled spirit of cooperation and collaboration. “Your dedication and commitment have not only earned you these diplomas but have also prepared you to face the challenges and opportunities that lie ahead.”
Graduation from Southeast Management School is recognized throughout the credit union industry as a prestigious mark of achievement. Upon successful completion of the program, students receive a graduation diploma issued in collaboration with the University of Georgia Center for Continuing Education. For more information on Southeast Management School, visit www.srcus.org/management.
Grouped by credit union association, the SRCUS Class of 2024 includes:
Carolinas Credit Union League (Dan Schline, President/CEO)
Shannon Austin, Oteen VA FCU, NC
Mandy Baibak, SAFE FCU, SC
Brad Ballentine, SAFE FCU, SC
Lana Darling, South Carolina FCU, SC
Rachel Dunn, South Carolina FCU, SC
Kenneth Pooley, Palmetto Citizens FCU, SC
Maggie Prohs, Palmetto Citizens FCU, SC
Heather Shafer, Marine FCU, NC
Angela Sprouse, Greenville Heritage FCU, SC
Sarah Stone, Excite CU, NC
Jennifer Webb, SAFE FCU, SC
Kentucky Credit Union League (Jim Kasch, President/CEO)
Joseph Staff, The Health and Education FCU
League of Southeastern Credit Unions (Samantha Beeler, President)
Cordell Donovan, Associated CU, GA
Chris Foy, Peach State FCU, GA
Mike Gibson, Credit Union of Georgia, GA
Johanna Gillispie, Go Energy Credit Union, GA
Julie Irvin, Georgia's Own CU, GA
Wendy James, WinSouth CU, AL
Brad Kindsfather, First Choice CU, FL
Kevin Lucas, Georgia's Own CU, GA
Mindy Maghupoy, The Infirmary FCU, AL
Nicole Maragh, Associated CU, GA
Rebecca Morris, LGE Community CU, GA
Tabitha Scarberry, New Horizons CU, AL
John Simpson, Peach State FCU, GA
Tiffany Washington, Alabama CU, AL
Frances Collene Wester, Alabama Teachers CU, AL
Louisiana Credit Union League (Juan F. Ceballos, President/CEO)
Desiree Gary, Heart of Louisiana FCU, LA
Mississippi Credit Union Association (Charles Elliott, President/CEO)
Matt Jackson, Singing River FCU, MS
Tori Shoemaker, 1st Mississippi FCU, MS
Tennessee Credit Union League (Fred Robinson, President/CEO)
Caroline Bays, Tennessee Credit Union League, TN
Denise Chapman, Kimberly Clark CU, TN
Stephen Cutshall, Consumer CU, TN
Jessica Grostic, Copper Basin FCU, TN
Christopher Hagans, ORNL FCU, TN
Lauren Smith, Enrichment FCU, TN
Virginia Credit Union League (Karima Freeman, Interim President/CEO)
Justin Cousins, Peoples Advantage FCU, VA
Eugene McBrayer, BayPort CU, VA
Natalie Sigmon, Blue Eagle CU, VA
Esteemed Students from Outside of the Southeast
Ashley Brownell, Michigan One Community CU, MI
Becky Pulsipher, OMNI Community CU, MI
Walter Konopski, ServU FCU, NY
About SRCUS
Southeastern Regional Credit Union School (SRCUS) is a collaboration of seven southeastern credit union leagues, including the Carolinas Credit Union League, Kentucky Credit Union League, League of Southeastern Credit Unions & Affiliates, Louisiana Credit Union League, Mississippi Credit Union Association, Tennessee Credit Union League, and Virginia Credit Union League.
Through collaboration with CUNA and Affiliates, the first SRCUS Management School was established in 1970. Since the school’s formation over 50 years ago it has graduated over 1,200 credit union management professionals from 21 states and the District of Columbia. In addition to the management school, SRCUS also hosts an annual Directors’ Conference, which provides a full range of informative educational sessions about critical issues important to today’s ever-changing financial industry for credit union directors and committee members. For more information, visit www.srcus.org.
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Filene Research Institute Celebrates 35 Years of Research and Innovation for Credit Unions
2024 also marks the 20th anniversary of the Filene i3 program and the 15th Crash the GAC.
Filene Research Institute, the credit union industry’s premier consumer finance think tank, proudly marks its 35th anniversary of incorporation this year. Since its founding on May 31, 1989, Filene has been at the forefront of research, innovation, and thought leadership, driving positive change and advancing the credit union system.
"As we celebrate this significant milestone, we reflect on the journey that has brought us here and the future we are building together," said Mark Meyer, CEO of Filene Research Institute. "Our success is a testament to the collaborative spirit of our members and the dedication of our staff. I am humbled by the lasting impact we have made together in the financial lives of millions of people."
Over the past 35 years, Filene has been instrumental in shaping the credit union landscape through its cutting-edge research and incubation testing of new ideas and viable solutions. However, it is truly the community of credit union leaders and innovators who drive impact from Filene’s body of work -- fostering growth, knowledge-sharing, and innovation -- which has empowered credit unions to better serve their members and communities.
In honor of this anniversary, Filene invites its members and the credit union community to a celebration in Boston, the birthplace of namesake Ed Filene, this July during Filene’s “Spark! 2024” event.
A few statistics in honor of this milestone include:
- Celebrating Research: Since its founding, Filene has produced 613 research reports in partnership with staff, researchers, fellows, university partners, authors and industry experts. The first report published by Filene, “Field of Membership: An Evolving Concept,” helped lay the groundwork for H.R. 1151, the Credit Union Membership Access Act, which greatly increased the potential for credit unions to serve millions of additional Americans.
- Celebrating Innovation: Since the launch of the Filene i3 program in 2004, there have been 208 new ideas and concepts developed across 20 waves of more than 350 credit union innovators. One idea in 2006 explored prize-linked savings, which in less than 10 years, led to over $70 million saved by consumers who might not have saved it otherwise. The concept's success also influenced legislative changes in more than 30 states.
- Celebrating Membership: There are 77 credit unions, leagues/associations and system partners that have been part of the Filene membership community for more than 30 years. Today, Filene’s membership serves more than 71 million credit union members and represents more than $1.17 trillion in credit union assets.
2024 also marks the 20th anniversary of the Filene i3 program, and the 15th Crash the GAC. The continued success of these efforts is a testament to the foresight of Filene's supporters as well as to Filene's hyper-relevance and lasting influence. Filene will continue to highlight and celebrate these programs and their participants over the coming months.
"We are incredibly grateful for the support of our members and community over the years," added Meyer. "Here's to another 35 years of thinking forward and changing lives."
For more information about Filene Research Institute and its 35th-anniversary celebration at Spark! 2024, please visit filene.org.
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Collections & Bankruptcy School
September 16-19, 2024 // San Diego, CA
Venue: Wyndham San Diego Bayside
Mitigate risk, maximize recovery for members
Collections & Bankruptcy School offers collections professionals the knowledge and skillsets to run a collections department and solve issues from delinquencies to bankruptcy. Starting with the nuts and bolts of collections, the curriculum moves through practices, legality and eventuality, specific nuanced details of management.
Not sure which school to attend?
Two learning options offer you the opportunity to advance your skills, regardless of your experience. Those new to collections can start with Fundamentals, while those who have a few years of experience can benefit from the Advanced track.
Who should attend?
The Intro course is best for collections staff with less than five years of experience. Compliance staff and internal auditors may also find this course beneficial. The Advanced course is for collections managers and those who have completed the intro course.
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iLead at 11
We recognize leaders are looking to accelerate their own performance through a leadership development program. iLead@11 is a virtual leadership program comprised of three main sections via two tracks, specifically curated for your leadership journey.
Take control of your development, learn more about yourself and push yourself further than you imagined.
Registration is always open! Select dates and times convenient to you!
Use promo code KCU for exclusive Platinum Partner Reward pricing!
Have questions? Contact Janet Garrett or Jenna Dye.
*The iLead@11 Emerging Leaders track differs from our existing Emerging Leaders Program.
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Vision 2024 - Welcome to the 90s!
As we gear up to celebrate 90 years of credit unions in Kentucky, excitement is building for what promises to be a truly memorable event.
From insightful speakers and top-of-mind topics to an elegant awards banquet and a nostalgic 90s-themed welcome dinner, this year's event is set to be a celebration of the rich history of Kentucky’s Credit Unions and a glimpse into the future of our industry.
Insightful Speakers
Our conference boasts a lineup of distinguished speakers who will share their expertise and insights on a range of topics relevant to our industry. From industry trends to strategies for sustainable growth, these speakers will inspire, educate, and challenge attendees to think innovatively and strategically.
Top-of-Mind Topics
The agenda for our 90th Annual Conference is carefully curated to address the most pressing issues facing our credit unions today.
Awards Banquet
One of the highlights of our conference is the prestigious awards banquet, where we will recognize and celebrate the achievements of outstanding credit unions and individuals. From innovation and leadership to community impact, these awards showcase the best of the best and inspire others to reach new heights of excellence.
90s Theme Welcome Dinner
To kick off our conference in style, we're hosting a fun and nostalgic 90s-themed welcome dinner. Dust off your flannel shirts, grab your scrunchies, and get ready to relive the glory days of the 90s! This welcome dinner is sure to set the tone for an unforgettable conference experience.
Registration Details
Registration is NOW OPEN!
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Board & Committee Leadership Conference - Save The Date!
November 7-9 | Embassy Suites by Hilton Asheville Downtown | Asheville, NC
Embassy Suites by Hilton Asheville Downtown
192 Haywood St
Asheville, NC 28801
Make plans to join your peers for an education conference designed just for credit union volunteers. The Board & Committee Leadership Conference is set for November 7-9, 2024 in the beautiful Blue Ridge Mountains of North Carolina and features a full range of informative sessions on critical, timely issues, with first-rate speakers.
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New Opportunity: IRA Training Essentials & Advanced
The Tennessee Credit Union League is pleased to offer a collaborative effort of the Ascensus IRA Essentials and Advanced Training. This training is open to Kentucky's Credit Unions and will be offered October 16-17.
Ascensus IRA Essentials, Wednesday, October 16, 9:30 a.m. ‐ 4:30 p.m. ET
Ascensus IRA Essentials gives attendees a solid foundation of IRA knowledge. Exercises throughout the day help participants apply information to job‐related situations. Attendees will leave this session able to work with IRA owners and process basic IRA transactions confidently. This is a beginner's session; no previous IRA knowledge is assumed.
Ascensus Advanced IRAs, Thursday, October 17, 9:30 a.m. ‐ 4:30 p.m. ET
Advanced IRAs build on the attendees' basic IRA knowledge to address more complex IRA issues that their financial organizations may handle. This is an advanced session; previous IRA knowledge is assumed. The instructor uses real‐world exercises to help participants apply information to job‐related situations.
Registered attendees will receive a detailed training guide for each day of study. For convenience, this training will be recorded.
Educational Investment: $299 per person per day
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Park Community Credit Union Foundation Is Set To Award $100,000 in Community Grants Through Pathways To Prosperity Program
Park Community Credit Union Foundation is pleased to open applications for the Pathways to Prosperity Grant Program for its second year. The program will award a total of $100,000 to qualifying nonprofit organizations for projects in Kentucky and Southern Indiana that align with the Foundation’s three impact areas-financial wellbeing, education, and thriving communities.
The Foundation celebrates its first year since re-launching under the name Park Community Credit Union Foundation, a natural next step for the organization that began in 2019 as NSPIRE, the philanthropic arm of Park Community Credit Union. Last year, under the leadership of Shannon Kisselbaugh, Executive Director, the Foundation contributed over $92,000 to charitable causes.
“At Park Community Credit Union, we are committed to fostering a strong foundation for financial well-being, education and thriving communities through our Foundation. Pathways to Prosperity reflects our commitment to empowering more nonprofit organizations to make a significant impact in Kentucky and Southern Indiana. Together, we will continue to build a brighter future for our members and the communities we serve.” – Jana Erny, President & CEO, Park Community Credit Union.
To emphasize dedication to the communities we serve, Park Community Credit Union and the Foundation have added an additional $25,000 to last year’s grant commitment of $75,000. The additional funds will offer more nonprofit organizations the opportunity to access a portion of the $100,000 total grant dollars to make a bigger community impact.
“We believe investing in Kentuckiana’s nonprofit sector is essential to building a vibrant community where everyone has equitable access to learn, grow, and thrive. That’s why we’re thrilled to announce this year’s
Pathways to Prosperity grant program with an increased funding pool of $100,000,” shared Shannon Kisselbaugh, Executive Director, Park Community Credit Union Foundation.
The online grant application opens on Monday, June 3, 2024, at 9:00 am EDT and the deadline is Monday, July 8, 2024 at 5:00pm EDT. For application details and additional information, visit
parkcommunity.com/foundation. The Foundation will host a Grant Guidelines Webinar on Thursday, June 6 at 2:00pm EDT. Nonprofits can register for the webinar at parkcommunity.com/foundation.
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Service One Credit Union Announces New Branch Manager- Scottsville Branch
Service One Credit Union is pleased to announce that Tammy Turner has accepted the position of Branch Manager at their Scottsville Branch.
Turner has been with Service One Credit Union since 2019, beginning her journey in the Call Center at Campbell Lane. Throughout her tenure, she has served as Branch Manager in Training at Glasgow and Branch Manager at our Bowling Green, KY branches. Turner is also a Certified Credit Union Financial Counselor, bringing over 15 years of banking industry experience to her new role.
Scottsville’s previous Branch Manager, Jonathan Turner, has transitioned to the position of Director of Wealth Management at Service One and has relocated to the Bypass Branch.
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Service One Credit Union Announces New Branch Manager - Campbell Lane
Service One is pleased to announce Ralph Addison as the new Branch Manager of the Campbell Lane branch.
Addison has been a valued member of Service One Credit Union since 2018, starting as a Senior Lender at Campbell Lane. He was then promoted to Business Development Officer, subsequently served as Russellville Branch Manager, and now returns to Campbell Lane as Branch Manager. With over 20 years of banking experience, including 14 years in business development and lending, Addison has earned numerous banking awards and is an active community volunteer and leader. When asked about the newrole, Addison stated, “I am very excited and looking forward to the opportunity
to serve the folks of this wonderful community. I believe a true measurement of our success is a reflection of the positive impact that we have on others.”
Addison is looking forward to strengthening relationships with both new and existing SOCU members.
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Service One Credit Union Announces New Branch Manager - Russellville
Service One Credit Union is excited to introduce Tara Ford as the new Branch Manager of their Russellville Branch. With a career in the banking industry that began in 1991, Ford brings extensive experience and a passion for service to her new role.
Reflecting on her career choice, Ford shared, “What I love most about my career is the opportunity it has provided to serve people and build lifelong friendships. One of my favorite aspects is guiding individuals towards achieving their goals and dreams. I am grateful to Service One for allowing me to extend these opportunities to Russellville and Logan County. I look forward to making a positive impact on this community and am honored to serve.”
Outside of work, Ford enjoys traveling, hiking, and spending time with her family.
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Abound Awarded Matching Grant to Boost Support of WKU’s Textbooks for Troops
Abound Credit Union recently received a $1,500 matching grant from the Armed Forces Financial Network® to help expand its support of Western Kentucky University’s (WKU’s) Textbooks for Troops program.
Textbooks for Troops assists eligible veterans, military students, and dependents by loaning textbooks for undergraduate and graduate programs.
“Abound’s partnership with WKU aligns with our mission to make more possible. This matching grant will help expand our impact to serve even more military-connected students,” says Ray Springsteen, President/CEO of Abound Credit Union.
“Abound is for helping our communities thrive and programs like these are vital for transitioning soldiers and their families.”
Abound’s support of Textbooks for Troops is part of its larger pledge to provide $105,000 in financial support for various WKU programs including the University’s 2023-2025 Personal Finance Summer Camps, Celebration of the Arts Title Sponsorship and M.A.S.T.E.R. Plan transition program for incoming freshmen.
More information about the credit union’s various community involvement initiatives may be found on Abound’s website.
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Commonwealth Credit Union Named Non-Profit Organization of the Year for Excellence in Financial Literacy Education
Commonwealth Credit Union’s dedication to financial literacy has earned it the title of Non-Profit Organization of the Year by the Institute for Financial Literacy Education. This recognition, presented at the Excellence In Financial Literacy Education (EIFLE) Awards in Louisville, highlights CCU's commitment to empowering members with the knowledge to control their financial futures.
The EIFLE Awards, established by the Institute for Financial Literacy, honor those who advance financial literacy education and provide effective consumer financial products and services. Karen Harbin, President/CEO of CCU, stated that the award affirms their mission to empower individuals with essential financial knowledge and tools.
CCU prioritizes the financial well-being of its members over profits, aligning with its mission of "Bettering Lives Through Our Passion to Serve." Their profits are reinvested into the community through financial education, reduced fees, higher savings rates, and competitive loan rates. This commitment has earned them accolades such as the Desjardins Adult Financial Education Awards and the YMCA Community Impact Award.
CCU's innovative financial literacy programs are comprehensive and strategically collaborative, meeting Kentucky Department of Education standards and partnering with organizations like the YMCA and Louisville Urban League. They tailor their programs to meet diverse community needs through school initiatives, community workshops, and business partnerships, ensuring financial education is accessible to all.
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2024 Credit Union Fraud Symposium
August 14th and 15th
FREE in partnership with your League/Association!
League InfoSight, in collaboration with its League/Association Partners, is excited to announce a two-day Fraud Symposium to provide member credit unions with valuable insight on fraud trends that touch every aspect of your operations!
We are excited to have Rodney Hood, NCUA's former Board Chair, kick the first day off for us!
During these two days, credit unions will learn more about internal fraud, check fraud, P2P fraud, credit reports and fraud, debit and credit fraud, recent fraud trends, and more. Speakers will also provide risk mitigation techniques related to cybersecurity, faster payment systems, sending checks for collection, and more. Credit unions will also hear directly from regulators in different states in a panel facilitated by NASCUS to learn where there are areas of concerns.
Don’t miss the last session of Day 2 to learn about the valuable fraud resources provided to your credit union through your League/Association membership!
There is no cost for credit unions to attend this symposium, so make sure to reserve your space today! Registration is limited.
Who Should Attend?
- Fraud Prevention Professionals
- Compliance Officers
- Risk Management Professionals
- Management
- Front Line Staff
- Board of Directors
Register Here: https://www.leagueinfosight.com/fraud-symposium
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InfoSight Update: Discussion Board Email Oops!
On June 26th and 27th, 2024, some of you may have received an email from [email protected], with a subject line that indicated: “Discussion Board Thread Added – Master InfoSight.”
We appreciate everyone who reached out to us and/or their League/Association to clarify the authenticity of the email. We wanted to take some space in this newsletter to clarify that although this message was sent in error as a result of our internal testing, it was a legitimate email coming from the InfoSight platform and was not a phishing attempt or virus! Our apologies for the confusion this may have caused! We have since taken down the discussion board on our “master” site, since posts in response to the original post would also generate additional email notifications.
As we prepare for the combination of all of our products, we are testing all the features and functionality we will have at our fingertips! Exciting things are on the way, pardon the construction during the process!
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NCUA Releases Annual Cybersecurity and Credit Union System Resilience Report
Report Describes Measures Taken to Strengthen Cybersecurity
The National Credit Union Administration released today its annual Cybersecurity and Credit Union System Resilience Report. The report summarizes the current cybersecurity threat landscape, highlights the agency’s key cybersecurity initiatives, and outlines the agency’s ongoing efforts to enhance cybersecurity preparedness and resilience within the credit union industry.
“In the face of an ever-evolving cybersecurity threat landscape, the need for ongoing vigilance in the credit union sector cannot be overstated,” NCUA Chairman Todd M. Harper said. “The NCUA is committed to ensuring consistency, transparency, and accountability in its cybersecurity examination program and related activities. Further, over the last several years the NCUA has made major strides in promoting a culture of cybersecurity awareness and resilience among credit unions.”
The Cybersecurity and Credit Union Resilience Report is required by the Consolidated Appropriations Act, 2021 and provides information on:
- NCUA policies and procedures to address cybersecurity risks and activities.
- Cybersecurity resilience within the credit union system.
- Current and emerging threats.
- NCUA’s collaboration with other federal agencies, industry stakeholders, and cybersecurity experts.
For 2024, the NCUA remains committed to fortifying cybersecurity resilience through targeted examinations, comprehensive risk assessments, and educational outreach initiatives. Further, the NCUA will continue to request that Congress provide the ability for the NCUA to supervise and examine third-party service providers. Said Chairman Harper, “This sensible statutory change would significantly improve supervisory oversight and bolster our ability to mitigate cybersecurity risks, ultimately enhancing the credit union system’s overall security posture and the protection of critical infrastructure in the United States more broadly.”
Source: www.ncua.gov
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A Reflection on the Past and Future Marks Federal Credit Union Act 90th Anniversary
Chairman Harper Stresses Credit Unions’ Responsibility to Members
The National Credit Union Administration commemorated today the 90th anniversary of the signing of the Federal Credit Union Act of 1934 into law by President Franklin Delano Roosevelt, which authorized the formation of federally chartered credit unions in all states.
“With the Federal Credit Union Act turning 90 years old today, it’s appropriate to consider not only where we’ve been, but also where we are now and where we’re headed,” said NCUA Chairman Todd M. Harper. “The passage of the Federal Credit Union Act was a watershed moment in our nation’s history. But, just as that law was forward-thinking when enacted nearly a century ago, it must evolve to reflect current realities with an eye to the future.”
“The Federal Credit Union Act is the rare legislation that’s still important 90 years later,” NCUA Vice Chairman Kyle Hauptman said. “Credit unions themselves have been in America for 115 years. Our job at the NCUA is to ensure that Americans can continue to have a wide array of unique options for their banking needs.”
Said NCUA Board Member Tanya Otsuka, “The Federal Credit Union Act, signed in 1934, laid the groundwork for today’s $2.3 trillion credit union system that serves millions of members. Today, we celebrate the growth of our cooperative credit system, while recommitting ourselves to making sure it lives up to its original purpose of providing savings and credit to people of modest means.”
The NCUA marked the anniversary of the Federal Credit Union Act’s signing with a gathering of former NCUA Board Members at the agency’s headquarters and a panel discussion reflecting on the federal system of cooperative credit created in 1934.
In his remarks, Chairman Harper noted the credit union system’s “bright spots” and “hotspots.” Bright spots include the system’s resilience and performance, and the dedication of NCUA employees to protecting credit unions’ safety and soundness and consumers. Hotspots include the use of fintech, including artificial intelligence, and the associated data privacy, integrity, cybersecurity, and automated bias concerns facing the credit union system and the financial services industry. The Chairman identified two blind spots he said prevent the credit union system from reaching its full potential: electronic payment losses and the NCUA’s lack of vendor authority.
“The good news is that hotspots and blind spots can become bright spots with the right measures in place,” Harper said.
The NCUA will engage in a digital outreach initiative throughout the year to mark the anniversary. A historical timeline of credit union and NCUA history is available on NCUA.gov. The NCUA is also highlighting historical content on its social media channels.
The Federal Credit Union Act also created a federal agency to oversee credit unions at the national level. The then-newly created Federal Credit Union Division was initially placed in the Farm Credit Administration but, over time, moved to other agencies until the National Credit Union Administration was created in 1970. The NCUA has evolved considerably since then, as has the credit union system, into what it is today. That includes creating the National Credit Union Share Insurance Fund in 1970, to protect the share deposits of now nearly 140 million Americans. Prior to 1970, credit unions operated without federal deposit insurance.
As of March 31, 2024, there are more than 4,500 federally insured credit unions serving more than 140 million members and holding assets of $2.31 trillion.
Source: www.ncua.gov
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