ST. PAUL, MN (December 2, 2013) -- Minnesota Credit Union Network (MnCUN) President & CEO Mark D. Cummins was recently featured in Twin Cities Business Magazine where he addressed growth, the increasing regulatory burden, and common misconceptions about credit unions. In its December 2013 “Interview Issue,” Cummins joined other CEOs, executives and thought leaders from various industries, sharing personal and industry insight.
Credit unions nationwide have recently experienced phenomenal growth, with the National Credit Union Administration calling 2012 a “pivotal year” for the industry. In Minnesota credit union membership grew by 12,000 to reach 1,591,000 – a 0.8 percent growth rate – through the second quarter of 2013. Deposits also increased 5.35 percent year-over-year from Q3 2012 to Q3 2013.
“Minnesota credit unions grew at a faster pace [than the national average] when you look at members and deposits,” said Cummins, noting the passion exuded by staff and the trust that members have for their institutions. “The people that are choosing credit unions are doing it largely on a values-based decision—that the values that are espoused by the credit union align with the values they’re looking for.
Calling it a “fundamental difference” in how financial institutions approach members or customers, he noted that credit unions focus on maximizing benefits to members versus the benefit to shareholders.
Cummins also reflected on the work and mission of the MnCUN on behalf of its member credit unions. He spoke out about the intense regulatory pressure that is besieging all financial institutions, calling it “a huge issue” – especially for credit unions, which in Minnesota range in size from roughly $300,000 in assets to $3.6 billion.
“The regulatory burden is crushing,” Cummins said. “The scale that you need to have to deal with the regulatory burden benefits those that were the worst players that caused the biggest problems. The actual cost of [compliance] is overwhelming.”
The final issue Cummins tackled in his interview included common misconceptions about credit unions, highlighting complexity, convenience and security.
“What we provide to our members is a sophisticated list of financial services,” Cummins said, noting the expansive, nationwide credit union ATM network available through Shared Branching.
Cummins also reinforced the message that money deposited in a credit union is safe and secure, carrying the same level of insurance coverage that the FDIC provides to banks.
“Credit unions are very safe, are conservatively managed, and we take good care of people,” Cummins said.
Consumers looking for a credit union can find an online search engine at www.aSmarterChoice.org.