League, Credit Union Collaboration Is Essential to Advocacy

Credit unions have once again proved they are consumers’ best financial partners, having moved mountains for their members this year. From the $8.3 billion in Paycheck Protection Program loans that saved Main Street jobs, to loan payment deferrals and modifications that helped consumers keep their cars and stay in their homes, they fulfilled their “people helping people” mission.

To do this extraordinary work in an environment where millions of Americans were quarantined and working remotely, credit unions needed legislative and regulatory flexibilities. It is a testament to the credit union movement that its advocacy army was so conditioned and prepared to respond as thoughtfully and as rapidly as needed.

The early draft of the CARES Act did not include mention of credit unions as conduits for distributing financial relief to those who lost jobs or had to close their businesses – the very people most likely to be our members. CUNA, state leagues and credit union advocates went to work fast and reversed that.

The $2.2 trillion economic stimulus package that passed in March counted on credit unions to help consumers. Can you imagine the outcome if our members had been forced to wait their turn at a for-profit financial institution?

Advocacy also helped lead state and federal regulatory agencies in providing flexibility and adjusting policies that helped credit unions to better serve their members during the pandemic. Examples included authorization for remote exams, virtual board and annual meetings, and broader access to digital financial transactions, such as electronic signatures on refinances and remote notarization. When credit unions reported that economic impact payments and enhanced unemployment benefits resulted in an influx of deposits, the NCUA understood that credit unions would need temporary flexibility in capitalization standards.

Advocates tell the credit union story, lawmakers and regulators listen, and members’ best interests are protected. It sounds simple, but in reality, is the result of years of hard work creating disciplined, strategic advocacy from a united credit union front.

If Your Army Needs Some Inspiration, We Have it

I am honored to be part of the Northwest credit union movement, which has a proud tradition, thanks in part to many advocacy trailblazers who believed that credit unions had a story to tell and a role to play in the advocacy process.

These visionaries were among the first to focus on engaging credit union employees as advocates in a formal program where they received training. The advocates became comfortable messaging legislators directly, raising funds and campaigning for candidates who were supportive of credit union initiatives. They left with a Credit Union Advocate certificate and a hunger to do more.

The idea of raising money was one of the toughest concepts to grasp. To build momentum, leaders in Oregon established “CULAC Month,” a still-admired program that sees credit unions engage their employees in fun, competitive fundraising activities every July. Proceeds go to the Credit Union Legislative Action Council (CULAC). To this day, Oregon credit unions continue to raise over 250% of their goal year after year.

In addition, Northwest leaders pioneered a program that brings hundreds of advocates at all professional levels to meet with their legislators in the state capitol once a year. Even after 20-plus years, “Credit Union Day at the Capitol” continues to shatter attendance records in all three Northwest states. The comfort level advocates built at the statehouse has also driven strong attendance at the CUNA Governmental Affairs Conference.

As a result of this history, continuous work and credit unions’ enthusiastic support, Northwest legislators understand and support the credit union difference.

This level of advocacy, carried out in states and in the beltway, is what moves the needle for credit unions.

When we look back on all that advocacy has achieved and protected this year, we’ll be able to confidently say, “Well done.” But we cannot let up.

We must continue with intentional 360/24/7 advocacy. Elect champions. Build relationships and stay in constant contact. Educate elected officials – your county commissioners and city council members who may be tomorrow’s state representatives. Help your governors, secretaries of state and treasurers understand the value credit unions deliver to people, and the impact they have on communities and economies – that they are good for businesses and public investments. Encourage your team to contribute proudly to the CULAC, which helps elect and keep people in office who support the credit union mission.

Access to the not-for-profit, cooperative financial services model is one of the greatest gifts available in our national’s economic system.

Advocacy ensures credit unions will always be here to build brighter financial futures for people. And advocacy is everyone’s privilege and responsibility.

The Northwest Credit Union Association represents 170 credit unions in Idaho, Oregon and Washington, and affiliate member credit unions in Alaska and Hawaii.

Jennifer Wagner EVP, Chief Advocacy Officer Northwest Credit Union Association Tigard, Ore.