NCUA Vice Chairman Rodney Hood said although there are already "good examples" of CUSOs providing payday lending alternatives, he is hoping credit unions will create a national solution to payday lending alternatives.

Payday lending customers comprise an industry worth more than $50 billion, Hood said at NACUSO's annual conference in Las Vegas this week. The average age of a payday customer is 39, with 59% of customers between the ages of 18-44.

"We must recognize this as a growth market for credit unions and, partnering with CUSOs, find a way to turn payday customers into credit union members," Hood said.

The vice chairman went on to note that it is not only vital for consumers to be able to access affordable short-term emergency loans, but also to have credit union members produce a revenue stream; particularly in today's economy when fee income is critical to the credit union balance sheet.

"By taking the initiative to head a national solution to payday lending, America's credit unions and CUSOs can play a vital role in ending the downward cycle for consumers involved in payday lending, and emerge as the dependable and honest partner on which the public can rely," Hood said.