Newsroom
NAFCU, DCUC affirm CUs are best alternative to postal banking in new op-ed
As JPMorgan Chase held preliminary talks with the U.S. Postal Service (USPS) to offer banking services at community post offices, NAFCU President and CEO Dan Berger and Defense Credit Union Council (DCUC) President and CEO Anthony Hernandez penned a joint op-ed in American Banker to offer a more consumer-friendly solution: Credit unions.
"Allowing Wall Street megabanks free reign to solicit customers from community post offices is not the answer. Plus, any process in selecting a financial provider for this type of postal banking agreement must be open and transparent," wrote Berger and Hernandez. "There are many other alternatives through regulated financial institutions that are ready and willing to serve these underserved communities."
Given credit unions’ not-for-profit status and service-focused ethos, Berger and Hernandez argued that policymakers should empower credit unions to serve unbanked and underbanked communities via the U.S. Postal Service.
In addition, Berger and Hernandez said that the "NCUA could also establish a process that allows credit unions to bid to provide these services at a post office, much in the same way the Defense Department selects a defense credit union."
NAFCU has long advocated against postal banking proposals and holds that credit unions already offer loan products and savings mechanisms for their members. The association argues that consumers are best served by institutions that can offer a full range of financial services and develop relationships with their members.
The House-passed version of the fiscal year 2021 financial services and general government appropriations bill included funding to establish a pilot program for postal banking, which NAFCU and other financial services trades advocated against. NAFCU has urged the Senate to not include such a provision in its spending packages.
Read the full op-ed in American Banker here.