New York Credit Union Association

credit union industry. Historically, many credit unions were sponsored by individual employers – telephone companies, chemical manufacturers, industrial plants. As those traditionally middle- class factory jobs began to vanish, so too did the credit unions those employers sponsored. At the same time, the financial industry was becoming more complex. The products, services and technologies consumers expected from their financial institutions were changing and increasing rapidly. And with increased services comes increased regulation. The financial crisis of 2007-2008 led to a torrent of legislation and regulation – most significantly, the Dodd-Frank Wall Street Reform and Consumer Protection Act. Despite the fact that credit unions played no role in the actions that caused the crisis — a fact that has been frequently acknowledged by bipartisan legislators and regulators — credit unions were subject to many of the massive law’s sweeping regulations. The increased regulatory requirements, coupled with the technological and industry changes, led to an influx of credit union mergers both nationally and in New York. Fortunately, in recent years, the trend of mergers seems to have stabilized, and many smaller credit unions are thriving. In New York, over 75 percent of credit unions have less than $100 million in assets. But despite being relatively small in terms of assets, the credit union movement remains a critical part of the modern financial system that is uniquely positioned to help consumers navigate the coronavirus pandemic, as well as what’s to come. “The coronavirus — and all the financial chaos it’s brought with it — is the newest disruptor and the newest test, but what’s remarkable about the credit union movement is our ability to rally together in the face of adversity,” says Mellin. “It’s our secret weapon that sets us apart from other industries. Cooperation may be a buzzword at some organizations, but for credit unions, it’s a reality we live and breathe every day.” Together, credit unions across New York will continue their efforts to work with members facing financial hardship and play a key role in helping the state and communities recover from the pandemic’s fallout. And they will continue to uplift those traditionally left out of the financial system. “The credit union movement was here for New Yorkers 100 years ago, and we’re still here for them today,” said Mellin. “Credit unions are a strong, stable and sound financial partner for New Yorkers of all walks of life — in good times and bad.”