Largest PALS Workshop Inspires
Credit Unions to Serve the Underserved
Board Member Matz, Senator Clinton thank CUs for their commitment
Oct. 12, 2004, Rochester, N.Y. – The Oct. 11 Partnering and Leadership Successes (PALS) workshop on “Serving the Underserved Without Losing Your Bottom Line” turned out to be the largest of seven PALS workshops organized by NCUA Board Member Debbie Matz.
Featuring a keynote address by U.S. Sen. Hillary Rodham Clinton (D-NY), the Rochester workshop attracted 320 credit union officials from New York State and throughout the Northeast.
“This PALS workshop was a heart-warming demonstration of credit unions’ commitment to serving the underserved,” Matz related. “On a holiday weekend when they could have been enjoying time off with their families, a record number of credit union officials attended our workshop to learn how to reach consumers who are most in need of affordable financial services. And credit union leaders from across New York State not only shared innovative ideas to serve the underserved, they put together funds to do it cooperatively.”
Sen. Clinton announced two loan funds as part of her keynote address. New York State credit unions pledged $100 million to fund mortgages in underserved areas, plus another $2 million for renters who need emergency loans to avoid losing heat, electricity or other living necessities. Together these funds could help 6,000 households in underserved areas. “Credit unions are in perfect position to reach out to underserved communities and individuals,” Sen. Clinton remarked. “You have embarked on partnerships that will bear fruit.”
Workshop co-host Mike Vadala, CEO of The Summit Federal Credit Union in Rochester, announced two other contributions. New York credit unions will provide $6,400 to sponsor small business workshops around the State with a new organization called MicroBizNY.
“I helped launch MicroBizNY last December,” Sen. Clinton explained, “and I invited credit union leaders to join me because I think it’s a natural partnership… If we can connect up the lending and financial education resources of credit unions with the training and technical assistance provided by MicroBizNY, I’m convinced we can help small businesses grow.”
Vadala also presented a $3,000 check to Wilson Commencement Park, a transitional housing facility in inner-city Rochester. Executive Director Jean Howard, in her luncheon address at the PALS workshop, compared credit unions to her organization, which works to help the neediest low-income and minority families achieve self-sufficiency. “We both serve people who are underserved by others,” Howard pointed out.
Howard also shared three “pearls” of wisdom to inspire everyone to serve their own communities: “Everyone has talents to contribute to their community; everyone is responsible for the well-being of their community; and everyone should be given another chance.”
In that spirit, eight panelists from credit unions of all sizes presented successful strategies for serving the underserved in urban and rural communities. The first panel focused on meeting critical needs through services including risk-based car loans, home repairs, payday loan alternatives, and financial education. The second panel described services to build members’ wealth, including affordable mortgages, member business loans, international remittances, and volunteer income tax assistance. (See the agenda for the full list of speakers.)
Vadala challenged all credit union officials to “take at least one great idea back to your credit unions, to your members, and to your communities full of potential members. Go back to your offices and work on ways to help members find their dreams, and eventually, fulfill them.”
Sen. Clinton concluded that when credit unions reach more underserved consumers, “You will expand your market, because you can fill a market that multinational banks cannot fill. You will not only build your bottom line, you will expand your political base.”
Sen. Clinton’s keynote address and all panelists’ presentations will be posted on NCUA’s PALS website by next week. From www.ncua.gov, click PALS, then click “Workshop Presentations.”
Other co-hosts of the PALS Rochester workshop included the National Association of Federal Credit Unions, the National Federation of Community Development Credit Unions, and the New York State Credit Union League.
(Photos from this workshop are available upon request.)
Recommended by Senate Democratic Leader Tom Daschle (D-SD), Matz was named as a recess appointee to the NCUA Board in January 2002 and nominated to a seat on the Board on February 27, 2002. The U.S. Senate confirmed her on March 22, 2002. As part of the NCUA Board, Ms. Matz oversees the regulation of federal credit unions and the administration of the federal insurance fund covering approximately 9,500 credit unions in the U.S.
A public service veteran of nearly 25 years, Matz is a member of three credit unions and resides in McLean, Va. with her husband and two children. Before her appointment to the NCUA Board, Matz was appointed by President Clinton as Deputy Assistant Secretary for Administration in the Department of Agriculture.
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