Understanding Common Buzzwords in Credit Union Advocacy
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By Sophie Freeman, AVP, Training and Development, Rave Financial
It’s not uncommon to feel overwhelmed when you first start in this industry, especially regarding advocacy. Fellow YP Advisor Kaysha Cohen, can empathize with the sentiment. “I used to think advocacy was reserved for policymakers,” said Cohen. “Now, I know it starts with us standing up for financial inclusion and member-first solutions.”
Three Common Terms
Credit unions are part of a fast-paced industry that continues to evolve. To stay ahead with our members’ best interests in mind, advocacy is key. But what is advocacy? And what are other buzzwords we’ve heard often in discussions with our credit union friends? As a credit union young professional, it’s vital to be informed on what’s happening in the industry, so let’s break down some credit union jargon.
Advocacy: Credit union advocacy involves actions taken by individuals to promote and protect the interests of credit unions and their members. This is important because credit unions are not-for-profit financial cooperatives that prioritize members’ needs over profits. We need folks to speak out and help ensure that policies and regulations are in line with the best interests of consumers.
Interchange Fees: These are fees paid by merchants to financial institutions when customers use credit or debit cards. Credit unions advocate for maintaining fair interchange fees, which help cover the cost of offering convenient and secure payment methods to members. Interchange invests in technology, education, and cybersecurity to protect consumers from the ever-growing fraudsters.
Political Action Committee (PAC): PAC is an organization that pools funds together and donates them to campaigns or candidates that support credit union causes and efforts. PACs allow credit unions to have a greater impact with candidates than they could as individuals, contributing to protecting an environment in which credit unions continue to thrive.
Advocacy Starts with Us
By understanding these terms, credit union professionals can better engage in advocacy efforts, ensuring that the movement continues to flourish and serve the needs of our communities.
If you’d like to learn more, visit Cornerstone League online. Additionally, subscribe to the Legislative Reporters to stay informed on advocacy-related news and updates.