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NCUA Board Vice Chairman Kyle Hauptman Wednesday joined NAFCU President and CEO Dan Berger during the association’s Congressional Caucus for a fireside chat where the pair discussed financial inclusion, the NCUA's role in the creation of new credit unions, and the management of the agency's budget.

During the discussion, Hauptman expressed a strong belief that the NCUA should be encouraging the chartering of new credit unions. "We don't want in the long run credit unions to go the way of blockbuster video because their regulator was too slow to give them the clarity to compete with fintechs," remarked Hauptman.

On the topic of fintechs, artificial intelligence, and modernization, Hauptman stated he believes credit unions are “in a better position than most.” This, he believes, is because of the way "credit unions work with each other."

Of note, the NCUA currently has an open request for information (RFI) on digital assets and related technologies; credit unions are encouraged to submit feedback to the association which will inform NAFCU’s comments to the NCUA. NAFCU has previously met with both Hauptman and NCUA Board Member Rodney Hood separately to discuss allowing credit unions the flexibility to partner with fintech companies, while also balancing the potential risks associated with them.

When asked by Berger about what initiatives can be implemented at the NCUA to foster financial inclusion, Hauptman reiterated his earlier point about encouraging the chartering of new credit unions. "Letting groups create their own credit union – that's true inclusion," he said.

In addition, Hauptman specifically noted the agency should focus on keeping smaller or struggling credit unions alive.

"We need to encourage examiners to not take the easy way out and suggest a merger," added Hauptman. "Especially in cases where the membership is against it."

On the topic of the NCUA's budget management, Hauptman explained the agency must learn to "do more with less" and make an effort to restructure where needed.

NAFCU has consistently cautioned against annual budget increases and in testimony during the 2021-2022 public hearing the association offered recommendations for cost saving measures and ways to improve overall budget efficiency. 

Dozens of lawmakers, administration officials, and regulators attended this year's NAFCU Congressional Caucus; find coverage in NAFCU Today and on Twitter with #NAFCUCaucus.