3 Takeaways From Day 1 Of GAC 2024

Greetings from Washington, DC, and the 2024 Governmental Affairs Conference from America’s Credit Unions (more on it later). The proceedings officially got underway on Monday, and the day was a burst of keynotes, insights, networking, and more.

If you’re not there, here’s what you missed.

The War On Junk Fees Isn’t Ending Soon

The Biden administration’s war on junk fees — hidden charges attached to goods and services — continues, and the topic will be top of mind for consumers in the months to come.

“It’s going to be on every commercial you see as this election goes forward,” warned Jim Nussle, president and CEO of America’s Credit Unions, during a keynote address Monday. “They’re running on junk fees, and every penny of fee income is under attack.”

Limiting or outright banning certain fees could have a dramatic impact on credit union balance sheets. The key for credit unions, Nussle said, is to keep explaining that credit unions fees are transparent and provide value. Plus, members opt in.

“It’s just plain different than concert fees or gym fees or even the fees you probably had to pay to put your luggage on the plane to come to GAC,” Nussle said.

During a panel discussion, Jeremy Pinard, chief lending officer at Vantage West Credit Union ($2.8B, Tucson, AZ) and chair of America’s Credit Unions Lending Council, said every CEO, executive team, and board should be thinking about the proposal and what they’ll do in response to it.

AI’s Ups And Downs

It’s been fewer than six months since the launch of ChatGPT, but the message on Monday was users have barely scratched the surface of what artificial intelligence tool can do.

In a keynote address, Jennifer Golbeck, director of the Social Intelligence Lab at the University of Maryland, said AI can transform businesses in really specific ways. However, leaders must determine where opportunities lie, where AI is overpromising, and where are the potential pitfalls as AI is incorporated into business.

Generative AI use cases are emerging. So are its risks. What can credit union leaders learn from one another? Read more in “The Promise And Pitfalls Of ChatGPT,” exclusively for Callahan clients. 

Although generative AI — such as ChatGPT or image generator Dall-E — have gotten the biggest headlines, Golbeck says predictive AI is likely to have a much bigger impact in the long run. Netflix and Amazon have used next-best action technology for years — according to Golbeck, as much as 35% of Amazon’s gross revenue comes from AI’s suggested purchases — and tools for other industries are coming down the line fast.

“If you do it right like Netflix and Amazon, it can be transformative,” she said.

And because the technology still needs a human element, Ai isn’t likely to take anyone’s job anytime soon.

“It’s good technology, but it’s soulless and it misses things,” Goldbeck said. “It’s not very good at depth, but it’s great as a companion to people.”

The Credit Union Industry Is Getting Smaller

This year’s conference marks the inaugural event under the banner of America’s Credit Unions — the combined organization resulting from the merger of the Credit Union National Association and the National Association of Federally-Insured Credit Unions — and the trade association has lofty goals for its first year.

“We have outdated legislation we’ve got to get changed,” said Lisa Ginter, president and CEO of CommunityAmerica Credit Union ($4.7B, Lenexa, KS) and vice chair of America’s Credit Unions.  “We’ve got to be sure everyone has a seat at the table when drafting legislation or sitting with policymakers. We have a voice, so it’s important for us to keep it at the front and center.”

Less noted but equally impactful is the recent merger of CO-OP Solutions and PSCU. Operating together under the PSCU brand, the new organization is expected to impact roughly 4,000 credit unions — in other words, the lion’s share of the industry.

Your Thoughts? What were your takeaways from GAC? Have I missed something important? Email me and let me know. Or, if you’re reading this on Tuesday, track me down. Either way, be sure to drop by the Callahan & Associates booth in the exhibition hall before the show wraps up.