Janus-Faced Bankers Seek to Rein In CUs: Editor's Column
The bankers talk out of both sides of their mouths. As they endeavor to keep credit unions from expanding their business lending powers and reforming their 1930s capital structure, they also want to embody credit unions. Copying is the sincerest form of flattery.
A recent editor’s column in American Banker stated that reputation was the No. 1 problem for banks currently. Following the financial crisis, that is a difficult declaration to dispute.
According to the KPMG study, 38% of bankers were concentrating capital investments in mobile banking and payments but 24% were investing in branches. While some have argued the branch is dead, others see its role as merely evolving. Technology isn’t necessarily killing the branch but modernizing it. Just last week, NAFCU asked the NCUA to update its FOM regulation to consider video teller machines as a viable service delivery option; a few years back the agency removed ATMs from the permissible options.
Several credit unions now use the personal teller machines, including the $2.4 billion Tower FCU, $756 million Mid-Hudson Valley FCU in Kingston, N.Y., and the $2.1 billion Coastal FCU in Raleigh, N.C. Like never before the agency will have to keep a close eye on its regulations to ensure they keep pace with technological developments.