The vital role of credit unions globally

As a movement, we measure success not so much by the level of surpluses that we generate, but more importantly, by how much we maximise the economic benefit of our members and our communities, a principle clearly understood and embraced by the membership.

THE JAMAICA Cooperative Credit Union League (JCCUL) congratulates the NCB Employees Co-operative Credit Union (NCBECCU) Limited on its 25th anniversary and extends very best wishes to all volunteers, management, and staff as it celebrates 25 years of achievements. That this celebration should be taking place at this time is of particular significance, in that the Jamaican movement is also celebrating its own momentous occasion: 75 years of distinguished service to its members. A movement founded by the late Father John Peter Sullivan in 1942 on the principles of democracy, social justice, and economic empowerment, especially as it

FLETCHER

relates to the working class; fortified by a philosophy of service above self and a culture that demonstrates, time and again, that we are indeed our brother’s keeper, makes this occasion a rather grand

affair.

THE CREDIT UNION DIFFERENCE

So what then makes us different? As a movement, we measure success not so much by the level of surpluses that we generate, but more importantly, by how much we maximise the economic benefit of our members and our communities, a principle clearly understood and embraced by the membership.

Fundamentally, what this means is that we are memberfocused, giving ownership to our members to create greater trust and mutual understanding.

GLOBAL IMPACT

As globalisation continues to radically shift the paradigm of modern institutions and work cultures, disrupting in its wake, business models of financial institutions, both locally and internationally, in scale and scope, never before experienced, and backed by the ubiquity of global finance, new risks and vulnerabilities have emerged, creating the need for a unified response to the regulatory environment of the global financial sector. It is within this context, that in today’s regulatory environment, financial rules are set at the international level, leaving national regulators with very little discretion to deviate from these international standards.

In Jamaica’s case, advocacy takes place on behalf of the Movement at the local level through the JCCUL, regionally, by the Caribbean Confederation of Credit Unions, and internationally, the World Council of Credit Unions (WOCCU). Through effective lobbying and advocacy, the WOCCU, operating at the pinnacle of the movement’s governance apparatus, has been instrumental in influencing the reduction of regulatory burdens associated with International financial regulatory standards in areas such as prudential regulations, antimoney laundering, counter financing of terrorism, taxation and financial accounting standards.

Globally, the impact of credit unions has been

significant, if not phenomenal. According to recent statistics published by the world governing body, the WOCCU, at the end of December 2016, the movement comprised 60,500 credit unions operating in 109 countries, with a combined membership of 223 million members worldwide. The report further shows that developing and emerging economies alone account for 93 million members, who have collectively mobilised more than $1.5 trillion in shares and saving, that is used to lend to each other in funding developments at the personal and community levels.

MAINTAINING RELEVANCE

So, as the paradigm continues to shift, and the movement poised to transition into this new dispensation, a digital revolution, with its own disruptive tendencies, beckons. Against this background, it is, therefore, absolutely critical, that as leaders, we not only institute policies, systems, and processes for the movement’s survival, but importantly, to ensure that credit unions remain relevant to the changing and more sophisticated needs of their members. The World Economic Forum reminds us that the digital revolution is not about technology, in and of itself, but rather, about people. Given the statistics referenced above, we know a thing or two about people. Historically, credit unions have demonstrated their relevance to their members and the Jamaican society in general by being there for them in good times as well as bad times.

Now that the paradigm is about to shift once again, credit union leaders are called upon to navigate this uncharted course with even greater foresight and resolve. Credit unions must ensure their relevance, through the integration of technology and people by providing their members with convenient, reliable, affordable, and sustainable financial products and services in an environment of inclusivity and service excellence. For the past seventy-five years, credit unions in Jamaica have been playing a vital role in the lives of their members and communities. With foresight, transformational leadership, and commitment, this role is assured for the future.

So as the NCBECCU family celebrates the past 25 years, we once again salute them, and implore them, to make their successes and failures be their guide. Learn from the past, prepare for the future, and live in the moment by serving your members with excellence. WINSTON C. FLETCHER President JCCUL & Secretary, CCCU

Now that the paradigm is about to shift once again, credit union leaders are called upon to navigate this uncharted course with even greater foresight and resolve.