Advocacy should be part of your job description
We just ended a brutal election season. No matter which candidate you voted for, most people agree that this election cycle was a tough one. In spite of all that has happened over the past year, we still have the privilege of living in a country with a democracy. We live in a country that believes people should have a voice in our government. And we have chosen to work for cooperative financial institutions that believe the same about our own accountability structure. One member has one vote, no matter how large or small the amount of money in their depository accounts. As credit union leaders, we should understand that it is built into the character of our organizations to participate in the political process. It also matters because the principles our institutions were founded on should be part of our organizational culture. We cannot forget our history. We cannot forget that even when our operating environment becomes challenging, our voices still matter.
It would be easy to write a whole article on what to get involved in, but the credit union industry has organizations like CUNA, NAFCU, and state leagues that keep us well informed on regulatory changes and decisions that affect our operations. Sometimes how to get involved is the bigger challenge, especially when credit unions have plenty on their plate just managing daily operations. Here are just a few places to start getting involved in advocacy, although there are a variety of other ways to be involved in large scale issues.
Build relationships with local officials: Relationships with local decision makers matter. Knowing the leaders in your town or county can make a big difference. Connections give your institution the opportunity to be a sounding board when local issues are brought to the table. Government officials know you have the interests of your members in mind and that you are comfortable dealing with complex financial situations. Call your local official’s office to introduce your credit union, and attend events where local officials will be present. However, be cautious not to promote a particular partisan group over another.
Get involved with the advocacy arm of a trade association: As mentioned previously, credit union trade associations are involved in policy work, and are very familiar with legislation and regulation that affects credit unions. Support their work and have conversations with people working on those teams. They are there to support the industry and ensure we work in a favorable operating environment. You may be able to sign on to a comment letter they have already prepared. Keep in mind that if you are commenting on a regulatory proposal, personalization helps.
Engage with consumer policy groups: There are many reputable organizations working on both local and national levels around policy proposals related to consumer finance. While they may sit at a different side of the table, they have the shared interest of helping shape policy in a way that is beneficial to consumers. Many tap into credit unions to find out how we do our work since we have a reputation of concern for our members. These organizations can sometimes provide research to you about trends in the consumer market.
It is also worth mentioning that credit union policy issues aren’t the only area of policy to participate. There are larger decisions happening on both the local and national scale that affect your membership. For those credit unions like North Side that serve underserved communities in any capacity, the challenges that keep people in poverty are complex and it is worth advocating for policy level changes that help address these issues. Don’t just limit your involvement to issues effecting only your own institution.
An industry leader recently asked me how I justified participating in advocacy in my daily activities when there are so many other responsibilities involved in running a small credit union. I responded that even though the effect to our bottom line may be indirect, there are tangible results. If unintended consequences of a policy causes members to lose sources of income, our delinquency and charge-off rates go up. If CDFI Fund appropriations are reduced, our ability to access grants, secondary capital or non-member deposits may be reduced as well. If regulation is overly burdensome, our efficiency goes down, and more time and resources have to be spent on compliance. If we don’t do something when it matters, someone else will make the decisions for us.
