National Credit Union Administration Chairman Todd M. Harper spoke at the California and Nevada Credit Union Leagues REACH 2023 Conference today. During his remarks, Chairman Harper discussed the credit union industry’s most recent performance metrics, stating that overall, the metrics indicate that credit unions remain generally well positioned at this time. He also pointed to warning signs, including stress within the system because of rising interest rates and liquidity risk.
The Chairman also spoke about technology’s role in financial services and the use of artificial intelligence by credit unions, saying that it must be harnessed in a responsible way to ensure fairness, transparency, and consumer protection. Chairman Harper’s remarks addressed overdraft programs and noted that more financial institutions are decreasing overdraft fees or dropping them altogether.
“The time has come for credit unions to do the same,” said Chairman Harper, “if they want to remain competitive and live up to the statutory mission of credit unions of meeting the credit and savings needs of members, especially those of modest means.”