By Jeff Russell
Innovation is my passion and has been during my two decades of work in the credit union industry. In reviewing the NCUA’s proposed CUSO regulation, I am more than a little concerned about the impact that it will have on the ability to foster innovation in our industry. Ever since NCUA started dropping not so subtle hints about this change, I have wrestled with how these new rules would likely impact the ability to collaborate and create the necessary innovative member solutions credit unions need to remain relevant now and in the future.
At this time, I just can’t see any upside to the proposed regulation.
My personal experience in working with NCUA has largely been positive. As we worked to launch TMG Financial Services in 2007, we interacted with thoughtful people at the agency who are clearly committed to the credit union industry and were helpful in working with us to change the CUSO rule to allow for credit card loan origination CUSOs. But the dynamics in a regulating innovation are problematic and often at cross-purposes – individual examiners, and the agency as a whole, are not praised when a new and innovative CUSO succeeds, but they are often taken to the woodshed when one encounters problems. Continue reading Newest NCUA Proposed CUSO Regulation Will Likely Stifle Innovation
