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NCUA Chairman Todd Harper spoke today at the Defense Credit Union Council’s (DCUC) 60th Annual Conference in Colorado Springs. Harper discussed the current state of the credit union system, the importance of cybersecurity, NCUA’s proposed rule on charitable donation accounts, the NCUA’s legislative priorities, and the promise and perils of artificial intelligence.
"More realistically, artificial intelligence, like every new technology, offers both promise and peril,” he said. "Our role is to maximize and deliver on the former while identifying and mitigating the risks of the latter. Some of the pitfalls in relying on artificial intelligence to make important, even life-changing decisions have already come to light. So, while AI can allow credit unions to smartly automate certain functions, like member communication and loan underwriting, it must be harnessed in a responsible way to ensure fairness, transparency, and consumer protection.
“The NCUA is keeping a close eye on developments in this field and measures adopted by our peer regulatory agencies, so the credit union system can continue to innovate while remaining faithful to its statutory mission of meeting the financial needs of members, especially those of modest means.”
He also highlighted NCUA's recent proposed rule expanding the definition of “qualified charity” that a federal credit union may contribute to using a Charitable Donation Account. CUNA wrote in strong support of the rule in late July.
"The NCUA looks forward to analyzing and incorporating the feedback to finalize this rule in the coming months," he said."In fact, we currently expect to finalize this rulemaking before the end of the year, so that more credit unions can start 2024 with a resolution to increase their support for veterans and military families."
CUNA engaged with NCUA on the need for the rule dating back to June 2022.