CEOs, regulators take on cutting-edge issues

(Clockwise from top left) Moderator George Hofheimer (Hofheimer Strategy Advisors), left, NASCUS President and CEO Lucy Ito and NASCUS EVP and General Counsel Brian Knight take in the Exchange discussion; Mike Williams, CEO of Colorado CU and chairman of the NASCUS Credit Union Advisory Council, enjoys the discourse; Participants are both face-to-face in Phoenix, and by virtual means.

(Nov. 5, 2021) Payment preferences, “buy-now-pay-later,” field of membership (FOM) barriers and more were all on the table at the meeting of CEOs of very large credit unions with state regulators held this week in Phoenix, sponsored by NASCUS.

The discussion was held at the two-day 2021 Exchange, an invitation-only event for regulators and leaders from credit unions with more than $10 billion in assets. The event is sponsored by NASCUS through the Dual Charter Resource Initiative (DCRI). The DCRI is a partnership, fostered by NASCUS, between the state system and key organizations within the credit union system at large. The program is committed to strengthening the state credit union charter by pursuing progressive legislation and regulation, building relationships to foster charter innovation, guarding against unnecessary federal pre-emption and expanding awareness of options available to state-chartered credit unions

Among the topics discussed by the participants were:

• Consumer behaviors with payment alternatives Venmo and PayPal and the growing tendency for Millennials and Gen Z to use their primary financial institutions as “paycheck motels” before transferring funds to a third-party payment app.
• Exploring alternative short-term loan options through “buy-now-pay-later” arrangements through payment alternatives that break payments into small installments to thwart high-interest short-term lending.
• Growing social acceptability of crypto currency as a primary payment method (particularly in Miami, Fla.) and associated risks.
• FOM barriers with digital banking and disruptions to traditional banking models.

Credit union CEOs participating included: Benson Porter, Boeing Employees’ Credit Union (BECU); Mike Ryan, Boeing Employees’ Credit Union (BECU); Mike Williams, Colorado Credit Union (and NASCUS Credit Union Advisory Council chairman); Mary McDuffie, Navy Federal Credit Union; Emily Troncoso, Navy Federal Credit Union; Bill Cheney, SchoolsFirst FCU; Gary Rodrigues, Star One Credit Union; and Brian Wolfburg, Vystar Credit Union.

State regulators participating were: Joni Kimbrell, California Department of Business Oversight; Ben Brinkley, Florida Office of Financial Regulation; Steve Pleger, Georgia Department of Banking & Finance (and NASCUS Regulator board member); Francisco Menchaca, Illinois Department of Financial & Professional Regulation; Charles Vice, Kentucky Department of Financial Institutions (and NASCUS Regulator board member); Melanie Hall, Montana Department of Administration; and Rose Conner, North Carolina Credit Union Division, (and NASCUS Regulator Board Chairman).