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Phone: (703) 518-6330
Web Address: http://www.ncua.gov/

Matz Affirms that Kids Count

Encourages Montana Credit Unions to Invest in their Future

April 22, 2005, Billings, Mont. – Building on the theme of the Montana Credit Union Network’s Annual Convention, “Kids Count – Investing in Our Future,” NCUA Board Member Debbie Matz encouraged credit unions to invest in their future by reaching new members from all age groups and all walks of life.

“Credit unions need to attract younger members and other underserved consumers who will become the borrowers of the future,” emphasized Matz in her keynote address. “This is a critical issue for all credit unions, because membership growth is a leading indicator of future safety and soundness.”

Matz advised the attendees that “Members age 18-24, who are about to enter their prime borrowing years, represent only 5% of adult credit union members. It is unnerving that more than half of all adult credit union members have aged beyond their prime borrowing years and there are very few young members to replace these aging members. Unless more credit unions reach younger members today, there will be fewer members to sustain credit unions in the future.”

At the same time, Matz pointed out, adults with different ethnic backgrounds and lower incomes often find it difficult to establish relationships with any insured financial institutions. “Credit unions have tremendous opportunities to build membership and loan demand by attracting these underserved consumers whose only alternatives may be predatory lenders.”

Matz shared best practices from Montana credit unions that are reaching out to all of these potential members. For example:

• Trico Educational Federal Credit Union has opened branches at both community high schools in Helena. Tellers are high school students enrolled in business classes. These students not only get hands-on financial education themselves, but part of their job is to reach out and market the credit union’s services to other students. “High school branches are an innovative investment in a credit union’s future,” Matz suggested. “They go a long way toward bringing in younger members who will ensure age diversity in their credit unions for years to come.”
  
  
• Bear Paw Credit Union is gaining new members and new business by serving Native Americans. Every Wednesday for the past year, Bear Paw staff have been driving 90 miles to the Fort Belknap Indian Reservation, where most tribal members had no relationship with an insured financial institution. Hundreds have now become credit union members. They make about $5,000 a week in deposits, and apply for personal loans and auto loans. “I’m proud to say NCUA played a role in this success story,” Matz related. “All the transactions at the reservation are recorded on a computer system provided through an NCUA Technical Assistance Grant.”
  
  
• Forty-four Montana credit unions (64% of all credit unions in the state) have applied for and received a “low-income” designation from NCUA. “This designation enables credit unions to apply for Technical Assistance Grants and accept secondary capital from outside investors,” Matz explained. “Doing so brings in needed resources that can help credit unions provide affordable financial services to the people who need it most.”

“Across the state, Montana credit unions’ outreach efforts are producing real results,” Matz concluded. “Membership growth in Montana is nearly double the national average. Loan-to-share ratios are higher, and charge-offs are lower. By going the extra mile to reach new members from all walks of life, Montana credit unions are making the most important investment in their future.”

For Board Member Matz’s presentation to the Montana Credit Union Network Annual Convention, visit http://www.ncua.gov/news/speeches/speeches_matz.html

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.