INDUSTRY REPORT: DCUC to ICBA -- Let’s Get Together on Advocacy and Support

Anthony Hernandez

by Marc Rapport, Contributing Editor

The Defense Credit Union Council reaches out to the Independent Community Bankers of America with suggestion to work together on regulatory relief and support for military families and rural communities alike.

Some Key Points

• The DCUC represents roughly 225 credit unions serving about 45 million members.
• The ICBA represents approximately 5,000 small and mid-sized community financial institutions.
• Early conversations between the DCUC and the ICBA have begun to identify areas of agreement.

When Anthony Hernandez wrote to the Independent Community Bankers of America (ICBA) proposing collaboration, he did so with a clear goal in mind: find common ground on the regulatory pressures facing community-based financial institutions.

As president and CEO of the Defense Credit Union Council (DCUC), Hernandez represents roughly 225 credit unions serving about 45 million members. The ICBA, meanwhile, represents approximately 5,000 small and mid-sized community financial institutions across the country.

Hernandez believes credit unions and community banks are facing many of the same challenges in Washington, particularly when it comes to compliance burdens and reporting requirements. Rather than focusing on long-standing policy divides, he sees an opportunity to work together on targeted areas such as regulatory relief, financial education, rural and underserved access, and support for military families.

“While credit unions and community banks have distinct histories and structures, I believe that far more unites us than divides us. Both of our organizations are rooted in a mission to serve those who might otherwise be overlooked by larger financial institutions,” his Jan. 4 letter said. “We each prioritize local service—our institutions are deeply embedded in the neighborhoods, towns, and military bases we call home, and we understand the unique needs of the people we serve.”

Click here to see the full letter from Anthony Hernandez of the Defense Credit Union Council to Rebecca Romero Rainey of the Independent Community Bankers of America.

After retiring as an Air Force colonel with 25 years of service, Hernandez joined the DCUC as chief operating officer in August 2016 and became president and CEO in August 2017.

In an interview with CUbroadcast, he dug into what he has in mind for collaboration between his organization and what’s typically a natural rival. Here are some highlights from that mid-February phone call.

Q. What made this the right moment to reach out to the Independent Community Bankers Association and propose a new kind of collaboration?

A. I prefer an approach that looks beyond what just credit unions can do and instead asks who else is facing similar challenges. Community banks are going through many of the same regulatory pressures as credit unions, so the timing felt right.

When we saw community banks struggling under similar regulatory burdens, it made sense to at least start the conversation. I didn’t want to look back later and wonder whether we could have done more, so we chose to ask the question and explore whether like-minded partners could work together.

We’re also past some of the major legislative debates, and new proposals are moving through the House Financial Services Committee and the Senate Banking Committee. This seemed like a good moment to signal to Congress that even policy competitors can find common ground and work together for the broader good.

Q. Credit unions and banks are often competitors in policy debates. What’s the case for working together now instead of continuing that divide?

A. A partnership between us and the ICBA would get attention in Washington because it’s not something people expect. They’re more used to seeing us fight like dogs and cats. Seeing credit unions and community banks aligned on certain issues would show lawmakers that we’re serious about practical solutions.

Our relationship with the Association of Military Banks of America (AMBA) shows that this kind of cooperation can work. On military bases, both banks and credit unions serve service members and their families, and each offers products and services the other may not.

When both are present, military families benefit from a full range of options. Expanding that spirit of cooperation to the ICBA makes sense, as long as we focus on areas where we agree and leave our differences to be addressed separately.

Q. You outlined financial education, rural and underserved access, and support for military families as areas for collaboration. Why those in particular as it relates to the membership of your two organizations?

A. Financial education is a natural area for collaboration because the fundamentals are universal. Whether someone walks into a credit union or a community bank, the core advice about saving, managing debt, and planning for retirement is largely the same.

The differences come in style and specific products, but the underlying message is consistent. Working together to reinforce those basics can strengthen financial literacy across rural communities, underserved areas, and military families.

When consumers can compare options side by side, I believe credit unions will compete well. But at the same time, there’s real value in presenting a unified message about sound financial habits.

Q. You note that your strongest area of overlap is regulatory relief. What might be some specific areas of reform do you think would be particularly helpful?

A. Regulatory relief is just as important for community banks as it is for credit unions, especially smaller institutions. That shared priority creates a solid foundation for joint advocacy.

Reporting requirements are an obvious starting point, especially for smaller credit unions and community banks. The Home Mortgage Disclosure Act (HMDA) is one example, but there are many other reporting thresholds that create significant burden without clear benefit.

We need to find the right balance between collecting necessary data and overwhelming institutions with excessive paperwork. Too often, it feels like large volumes of data are required even though they’re rarely used unless there is a compliance issue.

If we can identify practical adjustments that reduce unnecessary reporting while maintaining appropriate oversight, that would be meaningful relief. Those are the kinds of proposals I believe both credit unions and community banks can support.

Q. What has been the response so far and where do you see this going?

A. We’ve already heard back from the ICBA, and their governmental affairs leader has connected with our chief advocacy officer to outline possible areas for legislative partnership. At least one meeting has taken place, and we expect those conversations to continue.

If this becomes an ongoing effort, it could develop into a regular what I like to call a “battle rhythm” of coordination each congressional session. Where we agree, we can move together; where we disagree, we can set those issues aside and stay focused on collaboration.

Q. Lastly, what would success look like?

A. In practical terms, success would look like meaningful regulatory relief achieved through joint advocacy. It would demonstrate that by asking the question and thinking outside the box, we were able to accomplish more together than we could have achieved alone.

More from Anthony Hernandez on CUbroadcast

• DCUC Brings Credit Unions’ Voice to Media Nationwide
• DCUC’s Anthony Hernandez Talks Government Shutdowns and More

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