4 top management challenges

Cybersecurity threats, staffing challenges, fintech partnerships, and falling fee income are among the top challenges facing credit union leaders, according to a panel of CUNA Councils Executive Committee members who addressed the 2022 CUNA Governmental Affairs Conference Monday. 

The panel was moderated by Mia Perez, chief administrative officer at Louisiana Federal Credit Union, La Place, La. 

Four of the top issues the group identified: 

1. The war for talent 

The war for talent will be a long-term issue affecting all areas and levels of the credit union. Other organizations are paying more and are recruiting employees away. 

Employees who perform security functions are especially difficult to find, and they take a long time to train. 

Remote work can provide an opportunity to find talented employees from new geographical areas. Creating career paths, fostering a sense of belonging, and reinforcing credit unions’ mission alleviate this issue. 

“Our advantage is our mission,” according to one panelist. “It resonates with younger employees. The credit union movement has so many amazing things to offer.”

2. Fintech partnerships 

Record-low mortgage rates led to lower returns and cannibalization of other loans due to refinancings.  

One way to boost margins is to provide alternative products, many of which are in the fintech space.

While fintech partnerships can allow credit unions to improve the member experience, don’t just add products to create more offerings. Consider your strategy, why you want to offer a new product, and how you’ll go about doing so. 

3. Cybersecurity threats 

The war in Ukraine has increased the threat of cyberattacks exponentially. This is an issue that affects credit unions of all sizes. 

The best defense may be partnerships and collaboration among credit unions. 

4. Fee income 

While many large banks have stopped charging overdraft and other fees, they’re making up for that income in other ways. 

Educating members about banks’ actions and focusing on members’ financial well-being will attract and retain new members. 

Panel members included: 

• Faith Anderson, senior vice president and general counsel at American Airlines Federal Credit Union, Fort Worth, Texas, and chair of the CUNA Compliance & Risk Council.
• Brad Barnes, chief financial officer at Air Academy Federal Credit Union, Colorado Springs, Colo., and vice chair of the CUNA Finance Council.
• Leigh Brady, chief operating officer at State Employees Credit Union, Raleigh, N.C., and chair of the CUNA HR & Organizational Development Council.
• Kevin Kesecker, executive vice president and chief administrative officer at SECU of Maryland, Linthicum, Md., and CUNA Lending Council executive committee member.
• Jim Phillips, senior vice president and chief information officer at SchoolsFirst Credit Federal Credit Union, Santa Ana, Calif., and CUNA Technology Council executive committee member.
• Jason Rogers, senior vice president of member service at Mountain America Credit Union, Sandy, Utah, and chair of the CUNA Operations & Member Experience Council.
• Michelle Shelton, chief experience officer at Great Lakes Credit Union, Bannockburn, Ill., and vice chair of the CUNA Marketing & Business Development Council.

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