CUNA Mutual Group and the American Association of Credit Union Leagues executive board said in a statement Thursday that they agreed in principle to a new three-year, $64 million marketing agreement scheduled to become effective on Jan. 1, 2016.
CUNA Mutual Group, however, said that its advocacy and marketing support for the nation's 40 state leagues represents a decrease from 2015, though the amount of the change will vary among the leagues based on a number of factors.
The Madison, Wis.-based firm indicated that the reduction, which was not quantified in its prepared statement, was necessary to make more funds available for planned, “significant investments in the company's products, technology and services for the benefit of policyholders, many of whom are credit union members.”
CUNA Mutual Group said it will invest to create a more sustainable model that enables development of innovative solutions for credit unions and their members. This includes building upon recent investments in high-priority product areas as lending, wealth management and TruStage.
In December, multiple sources told CU Times that CUNA Mutual President/CEO Bob Trunzo told league presidents CUNA Mutual would cut its support of CUNA and its affiliate leagues by as much as 50%.
Dave Adams, president/CEO of the Michigan Credit Union League & Affiliates, said in December that any speculation that CUNA Mutual Group is planning to cut revenues to the state leagues and their league services corporations was completely false. In December, Adams said he had no knowledge about any cuts in the marketing agreements. However, Diana Dykstra, president/CEO of the California and Nevada Credit Union Leagues, said there would be changes to the marketing agreement as well as reductions.
Phil Tschudy, CUNA Mutual's media relations manager, said Wednesday he could not quantify the amount of the decrease from 2015 because it varies by state league.
“The leagues have their own agreements,” Tschudy said. “They know what their amounts are. I can't go into much more detail than that.”
What's more, Tschudy also would not say the amount of the marketing agreement CUNA Mutual signed with the leagues three years ago.
“I don't want to get into a comparison because, again, because it is not representative amongst all leagues, so I don't have that figure,” Tschudy said.
In the prepared statement, Trunzo said CUNA Mutual Group is the largest financial supporter of the credit union system by far, and that will continue.
CUNA Mutual Group also said it will continue providing financial support for CUNA, Filene Research Institute, National Credit Union Foundation and The Cooperative Trust. The company will also offer targeted assistance when needed, similar to past support of Operation Grassroots, H.R. 1151, UBIT and other initiatives.
“Leagues continue to be at the forefront of advocacy efforts that create a better operating environment for credit unions,” Tracie Kenyon, AACUL Chair and president/CEO of the Montana Credit Union Network, said in the prepared statement. “League advocacy has led to many positive advancements for credit unions and CUNA Mutual Group alike, and we are committed to ensuring those advocacy efforts continue.”
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