Matz: Increasing Membership Growth Should
be “Number One Priority”
NCUA Board Member Keynotes Roundtable for Credit Unions
from Wyoming, Idaho, and Montana
June 15, 2005, Jackson Hole, Wyo. – “Increasing the growth
in membership has to be credit unions’ number one priority,” emphasized
NCUA Board Member Debbie Matz in the keynote address at the 21st Annual
Mountain Regional Credit Union Roundtable.
Speaking to nearly 100 credit union officials from Wyoming, Idaho, and
Montana, Matz pointed out that while credit unions in the Mountain Region
increased membership by 2.8% in the past year, the national membership
growth rate dropped to just 1.4%. “Your membership growth was double
the national average,” Matz noted, “but there is still plenty
of room for credit unions to grow. And although some credit unions may
be growing at a faster pace, these averages also include credit unions
which are actually losing members.”
“Credit unions cannot sustain safety and soundness without growing
membership,” Matz maintained. “Slow membership growth means
that the vast majority of asset growth is coming from existing members.
Between businesses downsizing and members aging, existing members will
not be around forever.”
To address this concern, Matz encouraged credit union officials to “reach
out to ‘un-banked’ consumers – especially young people,
recent immigrants, and people with low incomes who often find it difficult
to establish relationships with insured financial institutions. Credit
unions can attract more members by providing alternatives to predatory
lending: small loans, risk-based loans, financial education, and affordable
mortgages.”
Matz urged credit union officials to share best practices not only to
increase membership growth, but also to address other important concerns – such
as the disappearance of small credit unions, reputation risks, and the
threat of taxation. “When you adopt best practices and share them
with others, you can overcome all of the concerns for the future of credit
unions,” Matz concluded. “You can reach new members of all
ages and all ethnic groups, help small credit unions grow and thrive,
uphold credit unions’ pro-consumer reputation, and continue to
earn your tax exemption by serving people of modest means.”
# # #
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.
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