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June 15, 2005, Jackson Hole, Wyo. – “Increasing the growth in membership has to be credit unions’ number one priority,” emphasized NCUA Board Member Debbie Matz in the keynote address at the 21st Annual Mountain Regional Credit Union Roundtable.

Speaking to nearly 100 credit union officials from Wyoming, Idaho, and Montana, Matz pointed out that while credit unions in the Mountain Region increased membership by 2.8% in the past year, the national membership growth rate dropped to just 1.4%. “Your membership growth was double the national average,” Matz noted, “but there is still plenty of room for credit unions to grow. And although some credit unions may be growing at a faster pace, these averages also include credit unions which are actually losing members.”

“Credit unions cannot sustain safety and soundness without growing membership,” Matz maintained. “Slow membership growth means that the vast majority of asset growth is coming from existing members. Between businesses downsizing and members aging, existing members will not be around forever.”

To address this concern, Matz encouraged credit union officials to “reach out to ‘un-banked’ consumers – especially young people, recent immigrants, and people with low incomes who often find it difficult to establish relationships with insured financial institutions. Credit unions can attract more members by providing alternatives to predatory lending: small loans, risk-based loans, financial education, and affordable mortgages.”

Matz urged credit union officials to share best practices not only to increase membership growth, but also to address other important concerns – such as the disappearance of small credit unions, reputation risks, and the threat of taxation. “When you adopt best practices and share them with others, you can overcome all of the concerns for the future of credit unions,” Matz concluded. “You can reach new members of all ages and all ethnic groups, help small credit unions grow and thrive, uphold credit unions’ pro-consumer reputation, and continue to earn your tax exemption by serving people of modest means.”

A public service veteran of 25 years, Matz was named as a recess appointee to the NCUA Board in January 2002 and nominated to a seat on the Board on February 27, 2002. The U.S. Senate confirmed her on March 22, 2002. As part of the NCUA Board, Matz oversees the regulation of federal credit unions and the administration of the federal insurance fund covering approximately 9,000 credit unions in the U.S.

Matz is a member of three credit unions and resides in McLean, Va. with her husband and two children. Before her appointment to the NCUA Board, Matz was appointed by President Clinton as Deputy Assistant Secretary for Administration in the Department of Agriculture.

Source: NCUA