In what is expected to step up the competition for credit unionmembers between NAFCU and CUNA, NAFCU said Tuesday its boardunanimously voted to amend the national trade group’s articles ofincorporation to give federally-insured, state-chartered creditunions full membership.

A vote will open to NAFCU’s membership Wednesday and close Sept. 9; if approved,state-chartered NAFCU members would have full voting rights and beeligible to vote on all NAFCU matters, including elections. Inaddition, full membership would allow state-chartered members torun for and serve on the NAFCU board.

This announcement came while state leagues encouraged theircredit unions to remain members of both CUNA and leagues, becausein 2017, credit unions will have the choice to decide whether tojoin CUNA, their state leagues or both organizations.

Last week, for example, CUNA and the League of Southeastern Credit Unions launched anew website, CUstrong.com, as part of a strategic membership andmessaging campaign to drive home the benefits of credit unionsmaintaining their membership with CUNA and the Southeasternleague.

In March, after a fierce, months-long, industrywide debate, morethan 90% of CUNA’smembers voted in favor of historic bylaw changes thatincluded eliminating the dualmembership requirement.

The membership optionality now frees credit unions to keep theirstate league membership and join either NAFCU or CUNA. However,many credit unions may not be able to afford to join both nationalorganizations, which is expected to create competition for membersbetween CUNA and NAFCU.

Dave Adams, president/CEO of the Michigan Credit Union League,said while some may view competition between NAFCU and CUNA to be agood thing, he fears it will only fracture the credit unionmovement. “Why not have three or four [national associations],because if competition is so good, it ought to be really good tohave lots of national associations,” Adams said. “The problem isthat in the association world, it doesn’t work that way in anyindustry, and the reality is that multiple national associationscause those national associations to compete against each other,and by design it fractures the message. When you divide theindustry with fractured, diverse messages, it affects your abilityto be effective as an industry.”

NAFCU, however, said it is very common in Washington forindustries to have several trade associations, pointing out thatthe banking and insurance industries have multiple nationalassociations.

In reaction to the NAFCU board’s decision, Ohio Credit UnionLeague President/CEO Paul Mercer said he thinks NAFCU should dowhatever it thinks is right.

“The Ohio League is focused on building strength through athree-tier system of unity, advocacy and support that CUNA and theleagues bring to every credit union in every corner of America,”Mercer said. “Together we catalyze success for all credit unions,as we always have. Jim Nussle has CUNA beautifully positioned.”

Adams said he has heard some credit union leaders say for sometime that the movement shouldn’t have more than one national tradegroup with one united front.

Ed Templeton, a former NAFCU chair who recently retired aspresident/CEO of the $777 million SRP Federal Credit Union in NorthAugusta, Ga., said in an interview with CU Times earlierthis year that he likes having two national trade organizationsrepresenting the credit union movement.

“I like being represented by two organizations in D.C. because Ilike that one can work one side of the aisle and one can work theother side of the aisle,” Templeton said. “We’re on the same page,but we have different skill sets, different abilities, differentstrengths, different weaknesses. So each has a role to play.”

While CUNA and NAFCU may each have a role to play, the relationship between the two organizations has soured.

In March, Templeton said he and the NAFCU board were not happywith a decision by the executive committee of CUNA’s board tocancel a meeting with the executive committee of NAFCU’s board atthe 2016 Governmental Affairs Conference – a longstanding gatheringfor the nation’s two national credit union trade organizations.

According to Templeton, Susan Streifel, former CUNA board chairand president/CEO of the $95 million Woodstone Credit Union inFederal Way, Wash., canceled the GAC meeting because she said theCUNA executive committee would be too busy and that it was nolonger getting any valuable takeaways from the meeting.

Richard L. Harris, NAFCU board chair and president/CEO of the$1.4 billion CalTech Federal Credit Union in La Canada, Calif.,said the trade group announcement to give full membership tostate-chartered credit unions is a natural evolutionof NAFCU’s mission and supports the organization’s goalto help all federally-insured credit unions.

“As NAFCU continues to grow, state-chartered members should havean equal vote and seat at the table, for the benefit of ourmembership and the industry,” Harris said. “One member – onevote.”

For nearly half a century, NAFCU said in its prepared statementthat it is the only national trade organization that exclusivelyfocuses on federal issues affecting federal credit unionsnationwide and advocates on their members’ behalf before keypolicymakers and regulators in Washington, including Congress,the NCUA and the CFPB.

“If our membership votes in favor of the board’s unanimousrecommendation, NAFCU member credit unions would benefit from aneven stronger and more influential partner in Washington, D.C.,”NAFCU President/CEO Dan Berger said. “This change wouldstrengthen the voice of all NAFCU member credit unions and ourindustry at the federal level.”