The President’s Perspective

Voting packets arriving this week for proposed CUNA/NAFCU merger! Plus, credit card debt is on the rise, but credit unions continue to help consumers. 

Greetings. Voting packets are here! This week, members of CUNA and NAFCU are receiving their ballots to vote on the proposed merger of the two associations to form America’s Credit Unions. Your packets may have already arrived, or will be arriving soon. The vote will remain open for 60 days. Don’t hesitate to contact me if you have any questions or concerns about the proposed merger.

Credit card debt is on the rise.
As prices continue to rise, so does credit card debt, as middle income families continue to struggle. Many don’t have any funds left at the end of the month and have turned to credit cards to make ends meet, meaning credit card balances are up, as are delinquencies.

One thing for certain: Americans are turning to credit unions for help with their financial services. Credit unions in the past decade have increased their presence in rural and underserved areas by +2.4%, while banks have closed branches; in fact, in just that last five years, banks have closed over 7,000 branches in rural underserved areas (-10.8%).

How are credit unions helping? We want to know. Please share your stories about what your credit union is doing to help members during tough economic times, as these stories help us to deflect attacks on our industry. Just in time for our fall Hike the Hill Visits in Washington D.C., banks are dusting off their old arguments and are once again asking Congress to investigate the industry’s tax-exempt status.

As we counter the bank rhetoric, the facts speak for themselves. The credit union tax exemption benefits the economy by nearly $25 billion each year. And, as banking groups call on Congress to change the tax status of credit unions, they fail to disclose that the banking industry received tens of billions of dollars in annual tax breaks from the Tax Cuts and Jobs Act. They also fail to point out that nearly one-third of all banks are Subchapter S corporations and do not pay corporate income taxes themselves. These annual tax breaks for banks far outpace the annual tax expenditure of the credit union tax exemption, which would be less than $3 billion annually.

Kickstart your strategic planning!
If you missed the Discovery2023 Conference on August 10, you can still lean into the core strengths of the credit union digital ecosystem – an ecosystem that is continuously evolving to serve members as they navigate an increasingly digital world. The recent TruStage conference was geared toward assisting in your strategic planning discussions as we move into 2024. Now, for the first time, sessions from the conference can now be viewed at the complimentary On Demand Hub. This is a great way to get all the information at your convenience.

75th ICU Day is coming in October.
Credit unions across the Dakotas and indeed, around the globe, are being called to join in the celebration of the 75th International Credit Union (ICU) Day. The broadly observed event, set for Oct. 19, 2023, underscores the spirit and accomplishments of the credit union movement, and offers a platform to reflect on the credit union movement's rich history and to highlight current achievements and future aspirations. Be sure to mark your calendars now and start planning your events – whether it be as simple as social media posts or an open house for your members. You can find some free resources compliments of CUNA here.

Join us for some New Ideas in Deadwood.
I want to remind you to register soon for our fall New Ideas Conference, as early bird pricing ends on September 7. You can save $50 per person if you register before then! This year, we are heading to Cadillac Jacks in scenic Deadwood, SD on October 10 – 11. If you are ready to delve into new ways to embrace our cooperative principles within your own credit union, in addition to the latest industry trends, disruptors, innovation, and more – this is one event you do not want to miss. DakCU’s New Ideas Conference will leave you excited, invigorated, and inspired with new concepts, as well as actionable steps and key takeaways that you can implement at your organization immediately. Check out the great lineup of presenters and register here today.

GoFundMe established for Charlie Murano
One of our Dakota credit union friends needs our help now, so I am sharing this information today hoping that it will generate some donations. Abby Murano is a staff member at Dakotaland Federal Credit Union and is also a member of the Dakota Credit Union Foundation Board of Directors. Her youngest son, Charlie is just a toddler, and he is in a fight for his life with a very rare form of aggressive cancer. KELOLAND did a full story that explains the severity of the situation, which you can see here.

A GoFundMe page has been established by a family relative. Any and all donations will be sincerely appreciated. An account has also been established at Dakotaland FCU, if you wish to donate locally. Abby, we are thinking of you and your family at this trying time.

Have a great week,

DakCU President/CEO