Sumary of More states poised to overhaul their credit union charters:
- Massachusetts passed a law earlier this year, modernizing its credit union laws for the first time in nearly 30 years, and Maryland is also looking at making changes..
- Modernization of credit union statutes has been a focus for several states in recent years, including Michigan, Missouri, Kansas, and Washington..
- Industry advocates in Massachusetts were prepared when the opportunity arose to update the state’s statues, said Ron McLean, president and CEO of the Cooperative Credit Union Association, which serves CUs in Massachusetts, New Hampshire, Rhode Island and Delaware..
- The Massachusetts bill, which modernized rules around credit union governance, was able to move in part because of some staffing changes at the Cooperative Credit Union Association..
- “We revamped our external lobbying team and brought in two individuals who were in our state legislature, and within a month or two of that happening it was myself, my team, some of our credit union CEOs and our counterparts from the Massachusetts Bankers Association, and we both came together to meet with the chairman of the financial services committee,”.
- The big question now is how quickly other states, and the National Credit Union Administration, will follow suit..
- “I do think the pandemic led to all of us — not just credit unions — realizing what can be done virtually, and that probably going to lead to more states thinking about how members access services,”.
- “The pandemic has just accelerated everyone comfort level with doing things remotely and doing transactions remotely,”.
- “The trend was already there, but the pandemic accelerated consumer acceptance and, frankly, also regulator acceptance on the examination side.”…