The other day, as I was riding to the Treasury Department to outline credit union and CUNA financial education and literacy efforts before the meeting of the Treasury's Financial Literacy and Education Commission, I got to thinking about contrasts-particularly between credit unions and banks.
Here I was on my way to deliver some comments, at the invitation of then Secretary John Snow, about what credit unions are doing to ensure their members, and their children, understand the vital role that money and financial services play in their lives. I was invited, I was told, because credit unions have a reputation for taking on this role and performing it, quite well.
Here are two contrasts that occurred to me: Priorities: Credit unions have made financial education and literacy a priority. In fact, it is one of the reasons that CUNA was founded and remains central to our mission.
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For example, CUNA and credit unions have: wEnrolled more than 400,000 high school seniors in the High School Financial Planning Program over the last six years; wDeveloped education materials for parents to use in helping their pre-K children understand the meaning-and use-of money. In fact, more than 66,000 downloads of these materials have occurred from our Web site since we introduced them last year. wEncouraged credit unions to reach out to the burgeoning Hispanic market, releasing our "Quick-Start Kit" for credit unions to use in serving this underserved market. Since its introduction in March, more than 15,000 kits (or its components) have been downloaded from our Web site. Given all of this, it's clear that financial education and literacy is a high priority for CUNA. Some might say financial education and literacy are part of the "culture" of credit unions.
Some have. None other than chief credit union basher of the American Bankers Association, Keith Leggett, recently wrote in one of his columns for the ABA's Web site that "credit unions and their trade associations are doing a good job in financial education." It is, he wrote, "part of the culture of credit unions."
Contrast the credit union approach (and acknowledgement) to the American Bankers Association's priorities. A couple of years ago, the ABA listed as a "superpriority" the following: "Oppose credit union efforts to expand unfairly and support taxation of expansionist credit unions." Listed under that, as merely a "priority" was this: "Fighting terrorism: working with law enforcement authorities, the Administration and Congress to effectively fight terrorism."
Since CUNA pointed out that misguided prioritization, the ABA has moved credit unions lower (in fact, they have also removed their "priorities" from public view). Nevertheless, we understand-if only by their actions-that "credit unions" remain a high priority for the banking group.
This is clearly a contrast in what is most important between credit unions and banks. Leadership: Some may have noticed that CUNA Chairman Juri Valdov has taken it upon himself during his tenure to make financial education and literacy, particularly for youngsters, his primary focus. Juri believes strongly in this theme, because he sees it as a way for supporting credit unions into the future.
To that end, Juri travels around the country giving his pitch-that the place is here, the time is now. He notes that the need is great: Advertisers spend $12 billion a year targeting the youth market. Yet almost 55% of parents admit they do not set a good example for their children when it comes to handling money.
He encourages credit unions to keep it up-and do more whenever they can.
Juri realizes this is a natural purpose for credit unions and their leadership.
Now, contrast that approach with that of ABA Chairman Harris Simmons.
Simmons, as we all know, has a burr under his saddle about credit unions. He doesn't like them, thinks they should not grow and prosper and, for the most part, should just go away.
He travels the country talking to banking groups, policymakers and the press, criticizing credit unions and urging them to take a similarly critical view. He jawbones lawmakers to remove the tax-exempt status of credit unions, and cajoles regulators to support his viewpoint (even though it has nothing to do with safety and soundness, the regulator's primary role). He claims he only wants to curtail "bank-like" credit unions, but he must know his real purpose is transparent: To eliminate credit unions as a viable alternative for consumers' financial services needs. That is his focus as ABA chairman. Clearly, there is a contrast in leadership between the CUNA leader, and that of his banking counterpart. One focuses on self-interest and eliminating competition; the other focuses on making this world a better place for consumers. Once I arrived at the Treasury Department, I left my thinking of contrasts behind me, and focused on the task at hand. When I was done, a number of those in the audience, and members of the commission, asked me for more information on what I described that credit unions are doing in the way of financial education and literacy.
I was filled with pride at that moment-for the work that credit unions are doing, for the leadership credit unions have chosen, and for the marked contrast credit unions are offering as financial alternatives.
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