World Council of Credit Unions leads a delegation of U.S. credit union industry executives to Australia this week for a deep-dive examination of how financial cooperatives there are working to overcome regulatory, taxation and branding challenges to grow membership and lead the way in developing innovative digital solutions.
Joining World Council President & CEO Brian Branch on the week-long visit are Credit Union National Association (CUNA) President & CEO Jim Nussle, Utah Credit Union League CEO Scott Simpson, Maine Credit Union League CEO Todd Mason, and executives from credit unions and credit union leagues spanning six more states: California, Washington, Oregon, Indiana, Florida and South Carolina.
Executives from the Customer Owned Banking Association (COBA), World Council’s member organization in Australia, will guide the delegation through the country’s complex financial system—where credit unions are subject to the same strict regulation and high taxation as banks.
Participants will study the interaction and impact of Basel applications, corporate taxation, and digital disruption in a highly concentrated and competitive environment. They will look into capital growth under taxation and an aggressive Basel regulatory framework, including the use of secondary capital. The group will explore how cooperative banks, credit unions, mutual banks and friendly societies all operate under the same umbrella as one voice for customer-owned banking—and the implications that has on the financial cooperative/credit union brand. The number of Australian credit unions has decreased from nearly 400 in 1990 to fewer than 80 today. The team also will be exploring the success Australian credit unions have had in collaboratively developing innovative digital payment systems to respond to the demands of their members in a highly digital market.
COBA will host presentations and foster discussion on several key topics facing Australian credit unions, including:
- Managing credit union growth and capital without tax-exempt status.
- Operating under a strict interpretation of Basel III regulations.
- Credit-union branding challenges and lessons.
- Board governance and best practices.
- Payment systems and digital innovation.
The U.S. delegation also will make field visits to COBA-member credit unions in Melbourne and Sydney to learn how the challenges are being addressed at the branch level.
“The Australian system is one of the world’s leading systems of the international network and it provides many comparative lessons for the credit union industry in the United States. Members of our delegation will learn firsthand the impact of alternative taxation and regulation regimes for credit unions,” said Branch. “They will also experience in person what can be gained by advancing digital innovations for their members.”
