The President’s Perspective

​CFPB open banking rule’s potential impact on our industry; new CEO named at Sentinel FCU; and Dakota CU professional profiled in executive leadership magazine. 

Open Banking Rule – will 1033 rule jeopardize consumer access to credit unions?
Last week the Consumer Financial Protection Bureau introduced Section 1033 open banking rules. This certainly represents a significant shift in how financial institutions, including credit unions, handle consumer data.

This is the latest example of the bureau’s regulatory overreach beyond congressional intent. It outlines requirements for financial institutions to provide a consumer with their personal financial data for free at the consumer’s request. The CFPB has basically taken a few lines of text concerning consumer data portability in Dodd-Frank Act and have spun a rule that will reengineer financial sector competition.  

The rule demands that credit unions share, at no cost, information with fintechs and other third parties who receive permission from consumers. In doing so, the CFPB reduces one of the most valuable assets of a financial institution, its data, to a commodity, which will likely put even greater competitive pressure on credit unions to merge. Some of the possible effects include:

• Challenges in ensuring secure data sharing while complying with privacy laws.
• Increased competition from fintech companies.
• Added technology and compliance costs.
• Complex compliance and legal risks.

 
The DakCU advocacy team will be watching this carefully.
 
Now open: One Stop GAC Shop.
Dakota Credit Union Association and America’s Credit Unions invite credit unions from all around the Dakotas to join credit union leaders from around the country at our industry’s largest gathering of the year.  It is no secret that this event is my favorite credit union event each year – and I have now attended and escorted Dakotas’ delegation more than a dozen times!

The Governmental Affairs Conference  (GAC) will be held in Washington, D.C. March 2 – 6, 2025, attracting thousands of credit union leaders to our nation’s capital to rally around a united cause! As the premier event for credit union advocates, GAC empowers you to connect with industry leaders, influence policy, and drive positive change.

To assist you, DakCU has prepared a “one stop” GAC shop on our website, which you can find here. This convenience allows you to register for the conference, make your hotel reservations, and even apply for a scholarship for financial assistance. As always, don’t hesitate to contact me or any of our advocacy team with any questions about the schedule or agenda.

Small CU GAC Scholarships.
Speaking of GAC – America’s Credit Unions has just launched their 2025 Small CU GAC Scholarship Contest, where one or more lucky winners will receive full scholarships to attend, which includes registration, airfare, hotels, and incidentals. To be eligible, you must participate in the America's Credit Unions Small Credit Union Committee's Planning for Future Growth Project, which asks credit unions to share their current organizational chart with the strategies you've employed to fulfill your mission of serving members. A committee will pick the best one(s) and the winner(s) will receive the scholarship(s). All submissions will be turned into a comprehensive resource full of new strategies for your credit union to review and implement at your shops. Click here to participate. Deadline is December 20 and please contact Richard Mohr, America’s Credit Unions Director of Membership, at (608) 231-4328 with any questions.

Congratulations to Dorothy Voorhees!
Dorothy Voorhees has been officially named the new CEO of Sentinel Credit Union. Dorothy was previously the CFO and has been serving as the interim CEO since last April. I have worked closely with Dorothy over the past years, as we both sit on the board of the Dakota Credit Union Foundation. I have also witnessed her dedication, support, and advocacy efforts for all Dakota credit unions over the years. Her promotion is well deserved, and we congratulate her on the new role!  

On a positive note.
Last week, Capital Credit Union staff donated more than 40 pounds of apples to Heavens Helpers Soup Café in Bismarck. This charitable soup kitchen provides free hot meals to those in need with grace and dignity, offering homemade soup and sandwiches, a salad bar, deserts and beverages all free of charge. Best of all, it is set up like a restaurant, where people can come in, seat themselves at one of the booths while volunteers take their order and serves the food. All this is funded 100% through free will donations. Well done! 

Floyd Rummel III featured in LEADAFI.
Finally, a shout out to Floyd Rummel III, who was recently featured in an article in LEADAFI, an online magazine for executive leadership. They work for positive and motivational leadership content to inspire individuals to become the best leaders they can be by featuring articles to create a community of knowledgeable, dynamic individuals who are making a positive impact in their industries and beyond. In part, the article stated, “Floyd Rummel, III, is a highly respected executive with over 46 years of experience in the financial services industry, with a particular focus on credit unions. His career is a testament to his dedication to empowering communities and enhancing the financial well-being of individuals through sound leadership, asset management, and business development. Floyd Rummel’s character is defined by his unwavering integrity, dedication to service, and commitment to empowering others, both professionally and in his local community. His long-standing involvement in nonprofit and community organizations underscores his values of honesty, leadership, and ethical decision-making.”

Congratulations, Floyd, on this recognition! You can read the entire article here.
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Have a great week! 

DakCU President/CEO