... Mr. Todd Harper, Chair NCUA.
The National Credit Union Administration (NCUA) is the federal regulator which helps "monitor and oversee" the operation and performance of SECU. A credit union board is wise to listen carefully to what a federal regulator "suggests" should be done. Best to give NCUA the same respect you would give to someone pointing a loaded gun at you. In other words, listen carefully, don't push your luck!
✅ Here's what Mr. Harper had to say about NSF's [link CUTimes 3/04/2024]: "Remember Blockbuster Video? More than 9,000 locations, nearly $6 billion in yearly revenue, and lots of late fees. Although customers hated those late fees, Blockbuster became overly reliant on that income. When Netflix's online ordering, mail-in return, low monthly fee and no-late-fees model came along, Blockbuster was then too slow to adjust. And, well, you know the rest of the story: Blockbuster withered until it went bankrupt."
"The lesson from Blockbuster's downfall is this: Profiting from consumers' problems can come back and bite you. That's because, at some point, your competition will solve your customer's problems. It's happening right now in financial services."
"With markets changing, it's time for credit unions of all sizes and charter types to reevaluate their overdraft and NSF fee programs. These programs can harm consumers, and they're also unsustainable in the long run. "
"And, in far too many instances, the most vulnerable members – people of color and those with lower incomes – are the ones paying the bulk of these fees. That's inequitable."
"The hard truth is that as more banks decrease overdraft fees or drop them altogether, consumers will expect their credit unions to follow."
"Credit unions that fail to adjust may even end up in the dustbin of history. Just ask Blockbuster Video."
"... people of color and those with lower incomes – are
the ones paying the bulk of these fees. That's inequitable." Kinda reminds you of race-based lending (RBL), doesn't it!
Funnily enough, Jim Hayes also used the Blockbuster analogy when proposing all the changes he introduced.
ReplyDeleteLike when he said he wanted to make the credit union more 'agile' and 'flexible' and then went and pigeon-holed all the MSS/branch employees into specializations that made them unable to assist coworkers with things they used to do every day?
DeleteNothing says 'flexible and agile' like paying a branch MLO to twiddle their thumbs when mortgage applications slow down, while the FSO in the office across the corrdor is snowed under with members wanting to open new STCs to take advantage of LGFCU's higher rates!
Just one of Hayes' many genius decisions...
SECU once was cutting edge---well thought out innovative policies put in place to benefit the member. those policies also happened to be strong, sound business principals that allowed SECU to grow to every county in the state. Provide much needed jobs and a career path for employees while helping the members. win win. Now? There is not a good business head amongst the eight +1. It's so sad we have to wait until October. What do you think those guys are cooking up as our surprise change to election procedures this April? You can bet they will try to sneak something else through since the creditunion commission led by Ms Ray is not doing its job.
ReplyDeleteYacht has a few holes in it and is listing badly.
ReplyDeleteFull steam ahead shouts the captain ....
DeleteNot a doubt in the world they are planning new additions to the by-laws to enhance their ability to maintain power and restrain or eliminate the competition. Sounds like some guy I read about in Russia, and every other dictator and autocrat in history. What a "Legacy"!
ReplyDeleteSurely there will be more hurdles and hoops.
DeleteIt will be up to us to see that Brinson, Fleming, Williams, and Wooten do not continue the destruction of SECU. Vote them off the board!
Devil's advocate, why hasn't Brady dropped the nsf fee?
ReplyDelete