Royal Credit Union and Rodney Hood: A Fireside Chat on the Credit Union Deposit Landscape

June 11, 2024 | ModernFi Insights

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To support the strength and scale of America’s credit union ecosystem, ModernFi is focused on powering the growth of deposits and member relationships at credit unions across the country. Working alongside partners with deep experience and expertise, ModernFi supports the first deposit network for credit unions, allowing institutions to provide accounts with additional NCUA insurance* to attract and retain large-value members across business, high net worth, public funds, and other areas.  

Last week, the company was thrilled to host esteemed industry leaders Rodney Hood, the former chair of the NCUA and ModernFi board member, and Mickey Noone, the VP of Business Lending at Royal Credit Union, for a conversation on the evolving landscape of credit union shares and deposits. Royal, a Wisconsin-based credit union with over $5bn in assets and over 300,000 members, is a distinguished leader in the credit union ecosystem, known for its exceptional member-focused approach, business banking, and innovative financial solutions. The engaging conversation highlighted that credit unions are still facing increased deposit pressure and competition, driven by higher interest rates, and are looking for non-rate solutions to drive growth and serve members. The panelists discussed the value a deposit network can deliver to individual credit unions as well as the ecosystem as a whole.

“Everybody’s running to find a resource to get some level of NCUA coverage on deposits so finding ModernFi was literally a gift. We’re very fortunate to stumble across [ModernFi] and you’ve been very helpful for us as we look to extend coverage to our depositors here at Royal,” shared Mickey Noone. Noone shared his perspective on the impact of ModernFi on Royal Credit Union’s commercial offerings, highlighting Royal’s plan to utilize accounts with extended insurance to grow business deposits to match their lending. With the accounts in hand, Royal can also target, compete for, and win public funds and municipalities that often require insurance or collateral.

The value ModernFi brings to the safety and soundness of the credit union ecosystem is what stands out most to Rodney Hood as a former regulator. Hood urged credit unions to enhance their resilience and preparedness by providing extended deposit insurance to their members, noting the added benefit this offering provides in increasing member value and attracting new members. Hood explained, “We’ve never had a tool or technology like ModernFi within the credit union system before. Deposit insurance is now important. [March 2023] was a wakeup call for folks. I look at deposit insurance like oxygen; you don’t really realize it’s there until it’s gone.” 

For those who couldn't attend or wish to revisit the conversation, we invite you to watch the webinar recording. The session provides valuable insights into managing deposits and strengthening member relationships.

• Watch the Webinar Recording

ModernFi is dedicated to empowering credit unions with the tools needed to thrive in today’s financial environment. Discover how ModernFi can support your institution’s growth and stability. Let’s continue building a stronger, more resilient credit union ecosystem together.

Best,

The ModernFi Team

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* Insurance provided by program credit unions

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Neither ModernFi Advisers LLC (ModernFi) nor any of its affiliates are a bank, nor do they offer bank deposits and their services are not guaranteed or insured by the FDIC or NCUA. ModernFi’s deposit network is not a member of the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA), but the banks where money is deposited are FDIC members and the credit unions where money is deposited are NCUA members. The maximum FDIC or NCUA insurance per Tax ID at each institution is $250,000. If customers have additional deposits at any depository institution that is in ModernFi’s network, then they may not receive full FDIC or NCUA-insurance coverage on the deposits at those institutions. The FDIC is an independent agency of the U.S. government that protects the funds depositors place in FDIC-insured institutions. The NCUA is an independent agency of the U.S. government that protects the funds depositors place in NCUA-insured institutions. FDIC and NCUA deposit insurance is backed by the full faith and credit of the U.S. government.

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