Credit Union Exam Solutions Presents With Flying Colors

Hey everyone, this is Mark
Treichel with a breaking news

version of With Flying Colors.

It was announced yesterday by Treasury
Secretary Scott Besant, that he is making

an appointment to, for someone familiar
to all of you in credit union land, who

will be the acting director of the Office
of the Comptroller of the Currency.

The press release that came out yesterday,
February 7th, states that Secretary

of the Treasury, Scott Besant today
announced his intention to appoint

Rodney Hood as a Deputy Comptroller
and to designate him the first Deputy

Comptroller of the Office of the
Comptroller of the Currency, aka OCC.

In this role, Mr.

Hood will also serve as Acting
Comptroller of the Currency.

Quote, the strong leadership and
career experience of Rodney Hood

will strengthen the OCC's effort to
ensure the safety and soundness of the

banking system, while also enhancing
economic growth, said Secretary Besant.

I remain steadfastly committed to
serve the American people and the

banking system by creating a regulatory
structure that fulfills our obligations.

fosters innovation and promotes
financial inclusion, including

those Americans who have been
debanked and underserved, said Mr.

Hood.

Chairman Hood, former NCUA Chairman
Hood, was previously confirmed by the U.

S.

Senate in 2005 and again in
2019 to serve on the NCUA Board.

In 2019, President Donald Trump designated
him as Chairman of the NCUA Board.

Before entering public service, Mr.

Hood held senior roles in retail
, finance, commercial banking, affordable

housing, and community development at
JPMorgan Chase, GE Capital, Bank of

America, Wells Fargo, and the North
Carolina Mutual Life Insurance Company.

All right, this is interesting news.

I know former NCOA Chairman Rodney
Hood well, and I interviewed him on

the podcast last April about what
he was planning on doing now that he

was no longer working for NCOA and
at the pleasure of of the President.

And lo and behold, here he is coming
back to do the same in an acting role.

Now without further ado for those
of you who are in the credit union

land, you might want to listen to this
to see what makes Rodney Hood tick.

It's a great interview, a lot of energy.

He's got the most energy, I think,
of any person I've ever met.

And if you're new to the channel,
because you follow the OCC and not

credit unions, you can get a little bit
of a flavor of the leadership role and

how Rodney Hood will approach things.

All right, here we go.

Here's the episode from last April
on Rodney Hood and Chairman Hood, if

you're listening, congratulations.

This is very well deserved.

Treichel: Hey everyone.

This is Mark Treichel with another
episode of With Flying Colors.

I'm very excited.

I got an extra special guest
for this week's episode.

I have former NCUA board
chairman Rodney Hood.

Mr.

Hood, how are you doing today?

Rodney Hood: I am great.

Mark.

It is great to be with you and flying
colors and what an honor to see you.

I haven't seen you since
you're retired, sir.

So what a treat to spend
time with you this afternoon.

Treichel: Yeah, it's nice to see you.

I, I've watched you on video at NCUA
board meetings there before you took off.

And I really enjoyed working with
you there at the end of my career.

Now you had two stints.

You're one of the Small handle,
small handful of people who've

served on the NCUA board twice.

And and maybe we can speak a little
bit to how all that came up about,

but, again, we appreciated your
leadership when I was at NCUA and.

I want to give you an opportunity
to maybe give a little bit

more of your background, right?

Cause I know you from NCUA, but so how
did you get, give us a little bit of

your background, how you got involved
in credit unions, what led to, your

public service side of of your career.

Rodney Hood: Mark, you've given me
quite a bit to unpack there, but

first and foremost, before I dive
in, I wanna thank you for your stead

desk leadership that you exhibited
the agency for well over 30 years.

You worked together with me when I was
Vice chairman from oh five to oh nine,

and then when I came back in 2019.

But Mark.

A lot of the success that I was
able to experience came directly

from you, your leadership.

You manage that agency out of
really an inclusive environment.

You practice a leadership style
that gave everyone an equal voice.

And I needed to remind you or
anyone from the agency that

that wasn't always the case.

Perhaps when I was there over a decade
ago, it was a different leadership

style, but you brought a Grace, and
you brought the dignity with you to

the role, but more importantly, you
built a team of individuals who were

there with me during my chairmanship
and also even when I was on the board,

you, through your leadership, were
able to really leave a legacy through

the talented people that you hired.

So.

First, I want to thank you for working
with me in partnership, and it wasn't

just you, but it was those other people
that you worked with along the way.

And I would be remiss if I didn't
thank them now publicly, because I

wasn't able to say goodbye to them.

There was a huge snowstorm that
prevented me from thanking a lot of

the folks with whom you worked when
I was to have had my farewell party.

So I want to now begin by thanking
Larry Fazio for his status.

I was so thrilled that I was on
the board and we made him the new

executive director also thanking
and a shout out to, to wander Brooks

from the office of human resources.

Again, another person that we were
able to promote Rendell Jones who

functions as the chief operating
officer again, did yeoman's work there.

And I want to thank him
and give him a shout out.

And.

In addition to work with a lot of the
leaders I've just mentioned, I'd be

remiss if I did not mention the hard
work of Joy Lee, who retired a little

bit before you did, but she was just
a wonderful colleague and a partner

who really welcomed me back to the
agency with open arms and really served

me well when I was vice chair, Mark.

So certainly want to thank her.

And the regional managers, I get weekly
calls with them in some instances,

sometimes just to touch base.

And again, Sherry Freed, phenomenal.

Also having the chance to work
with Keith Morton and John Cudgy.

I certainly want to thank our regionals.

The crux of why we exist is around
examination and supervision.

So I certainly want to thank Kelly Lay.

I also want to thank Amanda Parkhill
for the great work that she did.

I know you and I are going to
spend some time talking about

innovation and I can't wait for that.

But the person who gave me that
legal guidance that I needed

for that was Kevin Taninga, who
really did a yeoman's job there.

Other people who worked that I want to
thank are Charles Weiss for standing

up that new office of innovation
and for the access piece as well.

I want to take, thank Natasha
McAdoo for her, Wonderful work

in the example that she's left.

Malayna is the board secretary.

We could not have done a lot of the
great work we did, especially in having

to pivot and have our board meetings
all virtually during the pandemic.

So certainly want to have a
special shout out to her because

again, she did Yeoman's work.

Matt Belarus again with what his work
was around consumer protection and

really making sure that our credit unions
knew that they had an advocate in him.

And my goodness.

Martha Nenichuk and really in
helping me create the new charters.

I certainly cared about creating new
charters, whether it be MDI, CDFIs,

but again, the work that she was
able to put forth, not only with that

but also in giving me the guidance
and support that I needed when I

chaired the NeighborWorks board.

And also I want to thank my Former
Chief of Staff Linwood Brooks, and

then the gentleman who came after him,
Nagi Collett, who was just amazing.

And I look at people like Nagi as
probably the future of the agency.

And last and not least, I want to
thank all of the new examiners.

I, Mark, you may not know
this, but I had an opportunity

to every class of examiners.

Since I returned to the
board, I spoke with them.

I either met in person or via zoom
to welcome them and talk about

the bright future that they all
have in the credit union industry.

And I always hold out people like you
and Larry Fazio who like them 30 years

ago, they you all were examiners and
I want them to know that you can have

a bright, bright future within the N.

C.

U.

A.

So the examiner folks
that I got to welcome.

Already know that they were
doing great and abundant things.

So thank you for giving me an opportunity
to say a bit of a farewell, but most

importantly, expressing my gratitude
to the people who helped me have a

successful chairmanship and I would say
an also successful time on the board mark.

So thank you.

And I now know you wish to
pepper me with a few questions.

Treichel: You got it.

You got it.

Well, and that's an all star list of N.

C.

U.

A.

There, by the way, Nagi.

I hired Nagi as an examiner when I was
a regional director, and you're right.

He's he is an up and
cover there at the agency.

And again, a lot of great people.

You just think there and I want to thank
you for your you know, when you were.

When you were chair, uh, when you
came back round two and I served

as executive director you created
a really good environment for staff

to bring you ideas or you would pose
questions to us with ideas and, move

the agency, move the industry forward.

So I know already that the staff that
you mentioned are missing you and and,

but time goes forward and we can talk a
little bit about what the new board member

can do now that Tanya Otska is here.

Is on board, but so yes, so background
wise you what led you to public service?

I know you, I know it, but I don't
and unless somebody's read your

bio particularly, but give me a
little bit of background of what you

did before you came to NC way the
first go around and what made you

want to come back the second time?

Rodney Hood: Really good question, Mark.

Really good question.

I know you wanted me to
talk about that earlier.

I started my career in financial services.

In fact, I'm a little unique in that
I, in high school, I was an accounting

intern at a firm called Arthur Anderson.

I don't know if a lot of the
younger folks, but Mark and

others are shaking their heads.

In the good old days, there were eight
really huge public accounting firms.

And I, and high school thought I was
going to go into the accounting route.

So I, from junior year in high school
through college, I interned there and just

as it was time to get ready to graduate
from UNC Chapel Hill, I decided that I

did not want to be a public accountant but
I thought, you know what, the skill set

really trained me and prepared me well.

I did do a short term stint as a
missionary thinking I was going

to become an Episcopal priest.

And while I did it Sort of get
that, that bolt of lightning.

I was living in Africa.

I was in Zambia and Zimbabwe and Mark.

I never felt called to be a priest,
but I felt called to help people.

So I did what naturally happens.

I went into banking and finance.

So I went into financial services
after having the stints again in

Africa and at Arthur Anderson.

But I focused on commercial lending.

I was a banker where I was able to help
small businesses reach their potential.

I was able to do community
development, economic development.

I focused as a CRA officer, so in my
career, I've worked with three Wall

Street firms over the course of my
nearly three decades, but all of my

career in financial services has always
been around helping the least amongst

us as the scriptures call us to do.

And in fact, Even my priest said first
Rodney, it's only in the movies that the

person has the bulge of lightning that
tells him that there to be a priest.

And then secondly, he wanted me to know
that I needed where the clerical caller to

effectuate change in communities in need.

So in fact, he applauded me for the fact
that I was able to do even greater good

and financial services because again,
I'm helping marginalized communities.

Low to moderate income communities,
the tribal lands, rural justice

involved, differently abled.

So all of the people that I could perhaps
help as a clerical staff member, I

could also help in financial services.

So with.

My ecclesiastical interest.

I think it comes with a bit of
volunteerism and public service.

So I will tell you, I was sitting
in my office the first time the

Bush administration called and they
invited me to join the administration.

And I don't advise anyone to do this.

When the white house calls you, I hung up
the phone because I thought it was a joke.

So then they call back.

And they asked if I would want to join
the administration and mark my first

political appointment was not at N.

C.

U.

A.

I was the deputy
administrator of housing at U.

S.

D.

A.

Rural development.

So I oversaw like a 40 billion housing
portfolio, which that was a lot of money

in 2000 and four looking at single family
multifamily housing in real America.

The crux of what that job was for me to
travel around the country and working

with banks and credit unions to get
them to see the need and the importance

of using the loan guarantee product.

So I has, as having been a
commercial lender, I always

cared about safety and soundness.

And we always love loan guarantees.

When you work either as a regulator
or as a banker or credit union

executive, we'd like the, what we would
call it as an abundance of caution.

So I was really selling and promoting
The USDA real development insurance

products to banks and credit unions.

And year into that, there was
an opening on the NCRA board.

I met a young man who's
no longer with us to date.

He sadly passed away, but
his name was Nick Owens.

Nick worked at NCUA.

He met me at just a regular restaurant
and started talking about the work that I

was already doing in the administration.

He goes, Hey, the white
house just let us know that.

We need someone to join the board.

Why don't I give them your name?

First of all, Nick had
to tell me what NCOA was.

So I had worked in financial
services, but I had never really

become part of the credit union
world and, or anything like that.

So once I learned about NCOA
and how it was a peer of all the

other financial regulators, I
jumped at the opportunity and.

The next thing you know, you have FBI
agents going through your personal history

and you get confirmed and taking that oath
of office and joining the agency more.

When you were there, I was
there from 2005 to nine.

You may recall that I cared a lot then
about enterprise risk management, working

on some of the tennis of looking at risk
management holistically, getting it away

from being siloed and really getting
folks around the credit union movement.

And also within NCRA to look at
some of the stances that it takes

to really have an effective.

tool as was promulgated by the
Treadway commission and all the

folks from Pricewaterhouse who
really played a leading role in

creating today's ERM landscape.

So I was really happy to champion a
number of those enterprise risk management

summits, which you participated in.

And, and I'm so thrilled that
some almost 20 years later,

the ERM model still exists.

NCUA is still continuing to fine
tune and tweak the ERM mindset.

So I was able to be vice chair during
the dark days of the recession.

But we were able to keep the
credit union system safe and sound.

We've always had great board members
and I'll never forget that, the

agility and the resilience that
the credit unions showed, and it's

still paying a dividend today.

So I left NCUA in 2009, and that's
when I went to a wall street firm

where I was there for a decade.

And then Mark in 2019.

White House calls again
under President Trump.

I'm pleased to tell you, I didn't
hang up the phone that time when the

White House said they were calling to
invite me to join, but Mark, I don't

know if any of your friends or anyone
at the agency knows this, but when the

White House called me in 2019, they
did not ask me to go return to NCUA.

They wanted me to head up CFPB.

They said we would like some of
your background and your abilities.

Would you mind taking over the CFPB?

And I said I don't feel
called in that direction.

I certainly believe in consumer
protection and compliance.

But I think that there are thousands
of people out there who probably

care about that issue more than I.

I don't want to rob them of
that opportunity, so maybe you

should talk to some of them.

So they called back three days later, and
that's when they said, we'd love for you

to return to NCUA as its 11th chairman.

So that is what brought me back, and
I came back because, as I mentioned,

I enjoyed introducing ERM tenants
to the accrediting community.

I enjoyed hosting the roundtables
around the country, but we had that

pesky global recession that sort of
thwarted a lot of efforts there, and

I felt that I had unfinished business.

business.

I still wanted to be a part
of the credit union community.

I still wanted to continue to give them
a regulatory agenda of one of empowerment

and flexibility where they could continue
to serve their hardworking members.

So I returned because I wanted to Continue
the work that began nearly a decade

prior and a chance to really continue
to just learn more about the industry.

And I think it's safe to say, because
I've been at the agency before, I

was able to hit the ground running.

And that's why we were able to see a
number of initiatives such as subordinated

debt, such as the service facility
rules, such as the office of innovation,

all those things that, again, Came to
your leadership because you're able to

help me work with the appropriate staff
members to do all the due diligence.

But again, I returned because I felt
there was unfinished business and I

hope that those of you who now are
following what was able to take place,

I hope you agree that we were able to
accomplish a lot in a very short time.

Treichel: That's a fact and
hitting the ground running.

There's definitely I've seen it.

There's a definite value when someone
comes back to serve on the NCA board the

second time, it doesn't take, X amount
of months or time for the board member

to understand the nuances of credit
unions, understand the trade associations,

more importantly, understand how that
how the building works, how NCA works.

You can hit the ground running and
start being effective on J day one.

And you certainly were.

And also, so you mentioned
enterprise risk management.

You're introducing that and having those
discussions at the time that ERM was

starting to develop at, in, around the
world, raise the bar and credit unions,

and then I believe you also established
or allowed us to establish the ERM risk

council within SUA during the year.

Exactly.

Rodney Hood: And that came to
me as a result of Susan Bice.

Remember, she was one of the Federal
Reserve Governors, and as I was

assuming the vice chairmanship, I got
to know all of my peer regulators.

And she mentioned that was something
that credit unions and banks

alike should all be mindful of.

So it was because of her guidance on that.

And that's why she was my
first ever keynote speaker.

When I launched the N.

C.

U.

A.

E.

R.

M.

Risk Summit series, we
did it there at the U.

S.

Chamber of Commerce, and we had a packed
house and it worked out really well.

But again, it was you and your leadership.

And you know who also helped me with that?

Owen Cole, who also served as
my temporary chief of staff

before Linwood Brooks and Owen.

When he was running capital markets,
he did a great job in helping me with

speakers and looking at some of the
other implications of what happens when

you don't have a good ERM strategy.

So I'd be remiss if I didn't think Owen,
and also Mark, all the things that we were

able to do when you were there and when
I was there would not have been possible

without the support of Fred Hayes from it.

Good luck doing anything
without a good IT profession.

I tell you

Treichel: what.

You got that right.

Fred just retired too.

I heard he recently, or he's about
to, or he just did one of those two

Rodney Hood: he's announced it.

I think he's has a few days
left, but again, we could

Treichel: do around any of this

Rodney Hood: would have been possible
without it, but yeah, the ERM framework

still lives on today and again, as I
always tell folks, it's not about risk

avoidance, but it's about risk management
and risk mitigation, embracing it head on.

Treichel: Very good.

Very well said.

Very well said.

So you mentioned in the Office of
Financial Technology and Access,

you were a champion for that.

You mentioned Charles Weiss, I
believe, who now is in charge of

that, that you, who you brought in.

Explain a little bit about why you were
so passionate about bringing that to N.

C.

U.

A.

And what maybe you think the credit
unions can expect to see coming from

that arena and that office in the future.

Rodney Hood: Really good questions.

So I mentioned that I spent a decade
working for a Wall Street firm,

which actually now is, I think, the
largest bank in the United States.

And when you had a bank of
that scale, looking at fintech

as How do we serve clients?

How do we get better and more
nimble to the use of technology?

I learned I sat in a
lot of those meetings.

I was in a lot of the outreach
sessions with Silicon Valley social

entrepreneurs and mark what happened.

I mentioned I wanted to come back
to the agency because I thought

there was some unfinished business.

I wasn't hearing networking.

Credit union leaders.

I wasn't hearing credit union
executives talk about fintech.

I think if anything, at that point
in time to 2019, people were still

looking at fintech as the boogeyman.

But yet you have large Wall
Street firms looking at fintech.

Is that accelerant?

Is that ability for them to grow
and grow deeper with their clients

or in our parlance members?

So I recognize that.

Hey, There's a bit of a disconnect.

And I'd like to look at myself as
someone who's trying to think about

not what's happening next week, but
what's happening next year, next decade.

And I thought there was a bit of a
gap that we weren't seeing credit

unions readily, embrace a lot of the
tools by way of partnerships with

fintechs and things of that nature.

So that's why I recognize that NCUA needed
to have an office of innovation so that

they could be really up to date with
what are the things that the 138 million

members of crediting today are using
faster bill pay remote deposit capture.

What about the other tools that
it's going to take around data

aggregation, data analytics to go
deeper with the member relationship.

So I wanted to have an environment
and I guess it's kind of selfish.

I wanted to have an environment
that credit use were going

to thrive and succeed.

I'd look at fintechs where I think
before the pandemic, we thought of

it as a shiny tool or as a luxury.

Post pandemic, I think it's
a strategic imperative.

Unless Bentex and credit unions work
together in partnership, will we even

have a credit union industry to regulate?

So I looked at it as a tool that they
need it not just to survive, but to

also meet the needs of their members.

And I was very proud of the fact
that we were very thoughtful

and very results oriented.

All of the other
financial regulators in D.

C.

They have in tech offices.

The F.

D.

I.

C.

The O.

C.

C.

Federal Reserve CFPB.

But none of them have
one similar to the N.

C.

R.

A.

Office of Financial Technology and Access.

A lot of the other regulatory in text.

They exist in theory.

They do Some really good work,
but I think they exist more for

those internal regulatory bodies.

The insidio a goal for me when I
created it with the help of Todd

Harper and Cal Helpman, I did not do
any of these activities unilaterally.

So I want to thank Chairman Harper for his
imprimatur and moving the ball forward.

N.

C.

R.

A.

Is more external facing.

There's a pin tech discussion
series that I launched.

So Mark, every other week Charles
Weiss, when he was hired for that

job, he's continuing with that
tradition, bringing in a different

fintech to talk to the agency.

That's the examiners, that's the
folks at risk, compliance the regions.

So for them to know what are these
fintechs all doing, so that when that

credit union that's using that fintech
is examined, there's a familiarity.

That means that they know that
fintech knows about compliance,

resp, respa, Reg B, Reg E.

They know about all the other things
that one needs to know to operate in a

safe and sound and secure environment.

So the FinTech discussion
series is important.

None of the other
regulators are doing that.

The fact that I think Charles
is looking at doing a tech

sprint where you're going to it.

Have a social entrepreneurs and fintech
solving an issue that perhaps N.

C.

U.

A.

Finds relevant.

Maybe it's modernizing the call report.

Maybe it's coming up with
some augmentation to the merit

system, which, by the way, I
believed in merit from day one.

So I certainly want to thank Kelly
Lay and Amanda for all the work

that they did or Amber for the work.

They did a mirror.

That's right.

Treichel: Yeah.

Rodney Hood: This is I talk about
innovation for credit unions.

I also believe that there
needs to be reg tech.

So I'm not just out about
preaching credit use, embrace it.

NCUA needs to embrace it as well.

And I think you all who have gone through
the merit program and that's the modern

examination, risk identification tool
replaces that integrated airy system.

I think you were seeing that NCUA is
being a forward thinking, positive

body as it relates to technology.

And I think the main thing
you all about that office.

I wanted to signal to the industry that
NCRA is not looking away from technology,

but by creating that office, it means
that we want the credit unions to know

that it is permissible, provided they're
doing their third party due diligence,

they're doing the vetting, and as long
as they're Really being strategic.

I wanted folks to know
that they can come to us.

I know the agency has already
issued guidance on digital assets

distributed ledger technology.

There was a, an interagency request
for information on how banks and credit

unions are using technology to help with
compliance, whether it be BSA and AML.

So the whole point in a nutshell,
technology is not going anywhere.

We need to embrace it head on.

I think early days it was
presented as the boogeyman.

I think now we're seeing use cases
where member value is enhanced, credit

union scores and the Gallup polls
are going up now marginally because

they are embracing the tools that the
138 million members that use these

credit unions rely on every day.

So I think that Fintech has a bright
future, and I'm glad that we have someone

with the expertise of Charles Weiss,
having been the state regulator for

Kentucky for banks and credit unions,
having worked with other entities.

So it's a bright, bright future ahead.

Treichel: No, that's great.

You think about, the blockchain letter
that you mentioned, which encourages the

exploration of the fintech side of things.

And, when that came out in the
whole discussion of fintech,

Over the last several years
with your leadership, et cetera.

And now we're talking about
artificial intelligence, right?

You can't get away from
conversations relative to that.

And if you don't have the foundation
of the other learning tools in FinTech,

where does that position you for how AI is
going to influence banking and influence

credit unions and your service centers
that, your call centers and all that.

So it's great.

That you put that office in place and that
Charles is continuing, those important

conversations and leadership there.

So I want to pivot now to
another one of your passions,

which is financial inclusion.

You talked about it a little
bit, the importance of serving

people of modest means, and it was
such a priority for you at NCUA.

Could you share a little
bit of the progress?

You touched on it a little bit.

The progress that was made in this
arena and maybe, where you'd like to

see things go relative to financial
inclusion in credit unions and in general

Rodney Hood: or in general, exactly.

1st of all, as you've all heard me say,
you can't have a meeting with Rodney who,

without my saying financial inclusion is
the civil rights issue of our generation

and I say that repeatedly because.

We still have 40 percent of American
households unable to obtain 400

in the midst of an emergency.

We still have 26 million households
that are credit invisible.

And then we have another 74 million
who may have a modicum of a credit

score, but not enough to really get
them into the financial mainstream

where they're getting a paper.

So when you have numbers of that
magnitude, it means that Banks and

credit unions need to unite to find
ways to bring these individuals into

the financial mainstream, because if we
don't, who's waiting on the wings and on

the periphery, it's those pernicious and
predatory payday lenders, they're the ones

who are providing those emergency loans.

So that is why I am so delighted
that when we were looking at that

office of financial technology,
I was very intentional about

wanting to marry that with.

And that is the group that Natasha
McAdoo is running using artificial

learning, using fintechs to bolster
greater financial inclusion.

And that is how credit unions can
use the data analytics to go deeper

into the loan decisioning process,
how they're able to really still use

cash flow analysis and other core.

Data in terms of how folks
are paying their bills.

Maybe they're doing money advances and
money orders, but they're still able

to have some modicum of an ability
to look at the ability to repay.

Those are the things that I'm
seeing that credit unions are

now using some of those tools.

Natasha has been a wonderful
resource for the I 10.

Lending what happens in some of the border
states where we're having folks who are

coming in and able to help them get a
legitimate access to financial services

through those information that they're
providing through the I 10 loan product.

Or the account opening, I should say.

Also, the fact that credit unions
are doing financial counseling.

In fact, I'm here today in South
Carolina, getting ready to give a

speech to accrediting his annual
meeting mark, they're going to

have their 65th annual meeting.

This is accrediting.

That's a little shy of
2 billion in assets.

And I'm going to talk about how they
are partnering with high schools, where

if you have this credit union's credit
card or debit card, you can have a

certain high school partner with you.

And that means that that high school
gets proceeds from that interchange fee.

So they've already raised almost half
million dollars over the past year.

And those high schools get to use it
for Whatever the needs are, there are so

many funding gaps and funding shortages,
but a lot of the schools are using it to

teach financial literacy and financial
education, who other than credit unions

would ever be that innovative when
it comes to giving resources back.

So credit unions are
stepping up to the plate.

There's another credit union
that I visited in Delaware,

where that individual had a.

member who had a five 40 FICO score,
but she couldn't get any other

credit because she was ladled.

She was saddled with
debt from payday lenders.

So they were able to get
her a financial coach.

We're now a year and a half later,
she's seven 40, a paper for a mortgage.

So credit into being innovative.

So I really want to unleash a
lot of innovation because credit

Ian's grew out of adversity.

They grew during the
times of the depression.

So I think they know what it's like to
really, Thrive in times of difficulty

and I'm seeing credit unions now looking
at financial inclusion as access as that

strategic imperative So I just hope that
ncua through the office of financial

innovation and access continues to
unleash it Continues to showcase it and

I for one i'm just proud of The work that
credit unions are doing in this space

and I can't wait to hear more stories.

But again, i'm happy Talk about it.

Treichel: Yeah, that's exciting.

I love those stories about individuals,
the anecdotal stories of people being

helped, but also those large dollars
going to high schools, certainly

funding at high schools, funding
in a lot of areas is difficult.

So if credit unions can make
a difference at a high school,

they're making a difference in
the future of that community.

That's fantastic.

So I was going to ask a question about
technology, another question about

technology, but we tiptoed into that.

So I'm going to jump to so you're
gone now we have a new board member

taking your place, Tanya Otska,
who is now on the NCOA board.

And there's, we talked
about cryptocurrency, I know

cybersecurity is always a risk.

There's NCUA's priority
list and things like that.

But if you were to sit down and give
a new board, any new board member

at NCUA, but right now it's Tanya's
turn to be the new board member.

What kind of advice would you offer
to a new person serving on the

NCUA board in this environment?

Rodney Hood: First of all, I want to
congratulate Tanya on her confirmation.

She is just a gracious and
delightful young professional.

She was very kind and coming to my
farewell celebration that I was able

to have a public facing farewell.

So I got a chance to spend a little
bit of time with her and I left her

a note and just encouraging her to.

Just do a number of things and my
encouragement to her that I can share

publicly is visit the credit unions.

When you get an opportunity, get to
know them and what are their issues.

I think it always behooves the NCA
board members to sometimes mark,

leave 1775 Duke Street to hear what's
going on in Kentucky or South Dakota

because you get to really realize.

What will be the impact of your
regulation on their operations and their

ability to serve their member owners?

I would also encourage Tanya.

And in fact, a lot of the advice
that I would give her, I would give

also to some of the staff members.

And that is continue to read.

You've talked about cyber security.

You've talked about digital assets.

These are emerging.

Technologies every day.

We are reading about new
tools and new platforms.

So continue to study I wake up most
mornings at six o'clock and after doing

my devotion I'm reading about what's
going on with technology in singapore.

What's going on in hong kong What's
going on also in the uk when I was

with the agency I spent a lot of
time meeting with the bank of england

and the financial conduct authority.

I am voraciously reading What
are the new technologies?

What are these new risk
insurance into our system?

And how do we look at
mitigating that risk?

As much as we think about digital
assets, are they following BSA?

What are we doing around KYC models?

You, Mark, recall that there
were a number of outflows from

credit use into digital wallets.

We didn't quite know.

Was it going into Bitcoin or Doja or
what any of the other thousands of

cryptocurrencies that are out there.

But I would encourage anyone on
the NCRA board or even on the NCRA

staff, continue to learn, read.

I do podcasts every day in which it's
educational like the Mark Stryko podcast.

So continue the learning.

In fact, Mark, You may have already
retired by then, but I took an in depth

FinTech course at one of the Ivy League
schools to really help me get the

foundational skills around understanding
FinTechs and how it operates.

I think one of the things that I would
encourage Tonya and others to do as

well is let's look at what's going
on around the general data protection

rules that emanated from Brussels.

I do think the United States and some
pockets are all looking at national data.

Privacy rules.

I know Texas and California and
others are looking at during their own

rulemaking around data privacy, and
it's even a little bit more onerous

than what originated in the EU.

So that may mean that perhaps if a yak
and our credit union, the bank regulators

and into a need to look at Will there be
national privacy and data standards for

the U S before we have this Balkan nation,
Balkanization of other States, again, like

Texas and California are doing their own.

So I would just say
voracious reader podcast.

I also through LinkedIn, I have a
vast network of acquaintances there.

And what I like is I, if I see someone
that's an industry expert, I call them

up or I email them And let them know
that, Hey, do you have 30 minutes to talk

about what are some of your discoveries
before we conclude this segment, there is.

A new digital currency off
the island of Honduras.

There is a group there that has
gotten special permission to create

a whole new central bank currency
that is going to stand alone.

It's gone, not going to have the
American dollar as it's back.

Stop of source.

It is a new currency using everything
from digital tokens to vaulting the

deposits and things of that nature
that they're doing this as a test.

Well, I'm really interested
in what's this gonna pretend

for the future of the economy.

So.

I know what may sound odd today.

They're thinking what someone's
creating a new island and they've

gotten permission is now going
to be all digital based currency.

You know what?

We probably all thought the
ride sharing apps of yesteryear

were kind of odd as well.

So it just means that some of
the things that may strike you as

odd today may be worth studying.

So again, I am making sure that I'm
trying to stay as current as possible.

Treichel: I love the idea and the
recommendation to keep reading.

It reminds me of two.

Two different quotes.

One was well, one concept is
Stephen Covey sharpening the

continuing to sharpen the saw.

Right.

Continuing to learn.

But it also reminds me of the, of
a quote that goes something like

the man who doesn't read isn't any
different than the the man who can't.

Rodney Hood: Exactly.

If you don't,

Treichel: if you, if it's all out there
and it's all available, particularly now

with the internet and all the information.

So that's a fantastic recommendation.

To the board member to anybody
continue to learn and read.

So well we've talked a lot about FinTech.

Is there anything else you'd
like to add relative to what

on the horizon for financial
institutions the next, 5, 10 years?

Rodney Hood: Yes, I think on the
horizon as it relates to financial

institutions, I think we're going to
continue to see some strong use cases.

As I mentioned earlier, I think
that the news media was presenting

a I and some of these tools as the
boogeyman that was out to wreak havoc.

And I do think there's some bad
actors, but that goes back to

having a strong defense posture.

I think we're going to see artificial
intelligence really helping credit unions

really go deeper in understanding their
members needs, and I know we keep thinking

about jobs that are going to be replaced.

No, the jobs are going
to be really realigned.

It means that you're going to
use the machine learning and

artificial intelligence to do
those mundane things that Who

really wants to spend time with C.

T.

R.

S.

Currency transaction reports
and suspicious activity reports.

Let's use technology.

So then that technician can then use
the more technical skills so they

can bring in that judgment piece.

And I think we're going to see
that with member engagement.

I love the fact that future as they
use these going to be able to not

j of the members, but they them.

They're gonna be ab trends and say,
oh, perha person a pre approved mor

home equity because it se getting a
lot of things t Home Depot, but maybe

let's give them a line of credit.

How do we use those tools to go deeper
and to really delight the members?

I think we're going to continue
to see an uptick and members

loving the credit unions.

I think we're going to see
also mark that technology.

I think it's going to help
credit unions do cross sale.

I've never really seen a number of credit
unions looking at how do you really

Provide opportunities for the members to
use other services within your credit,

whether it be the checking account,
the savings account, the credit card.

Are you using some retirement services,
the lead line of credit really?

How do you really have that full on
relationship with the credit union?

I think we've.

Talk about the 138 million members,
but some of those 138 million still may

have other financial service accounts.

How do you really get
that deeper engagement?

I think the technology is
going to play a part there.

I think the future as it relates again,
it's going to be use cases around.

engagement, high customer or in our case,
member sa scores, credit needs have the

other financial servi terms of their
high engag I think we're going to co

Engagement again, that credit union
sales rep or that loan officer, they

now have time to better understand
the needs of that member in real time.

And another area that I would say,
if I were to predict, I think we're

going to see more credit unions.

Also getting more involved
with business lending.

And I know we're going to talk a little
bit about my percent, my prediction

for the future, but I will save that
for later, but I do think they're

going to use a lot of these tools
to see which of their members are

also engaged with member businesses.

Treichel: Yes, all great points on
where we're heading in the future.

A couple things.

AI, and there's a lot of fear
about AI out there right now, just

like you said, and linking that
to continual learning and podcast.

There's a podcast out there.

You may be aware of it called Odd Lots.

It's hosted by a couple
of folks from Bloomberg.

And it's one of my favorite podcasts.

They talk a lot about economics
and they look at it in different

lights, but they just had a.

Every Monday they have an episode and they
had a economist who came on talking about

how he really thinks that AI is gonna
be very positive for the middle class

and is gonna help grow the middle class.

I would encourage you to listen to it.

I'd encourage anybody
to give odd lots a try.

But also the other point I wanna
highlight there is you talked about member

satisfaction and customer satisfaction.

And how that can, and oftentimes
is the credit union difference.

I don't know about you but it seems like
sometimes customer service today, isn't as

good in general, just not talking credit
unions, just in general in the world,

it's not as good as today as it might've
been pre pandemic or, 10 years ago.

But when I do get really good customer
service, I'm like wowed more than

I ever was, and I make sure I point
out to them how excited I am to be

able to work with that individual.

And when credit unions can do that anybody
can do that, whether it's, it's the it's

the it's the person at the restaurant.

But it really can be the
differentiation point today.

Rodney Hood: It really is.

And again, that is how credit units
are going to be able to differentiate

themselves from banks in the days to come.

Think about it.

All things been equal
other than charter types.

I mean, Banks and credit
unions are offering loans.

They're offering deposit accounts.

The one thing that credit unions
have, though, is that relationship,

that service commitment, that, that
fidelity to really seeing that member

through thick and thin, which is why
I was so proud of the fact that over

the pandemic, credit unions did not
abandon their members, but they did it.

debt forgiveness, loan modifications,
interest rate reductions and

credit unions because of that.

And again, they grew during the depression
that people helping people, helping people

eat those continues to manifest itself.

And I think that this credit
unions now can, I think, avail

themselves of these tools.

They're gonna really have time to get
back to the basis of that engagement.

But I think that credit unions is
going to be Incumbent upon them to

differentiate themselves from the
banks, because if they don't do then

why do we need a separate regulator?

What do they need to have all the
other flexibilities that they enjoy?

So I want them to continue to
make that member engagement piece

that helping piece that needs to
continue to be front and center.

Otherwise, why have the separation?

And I think credit unions, if they
tell their story, they can do that.

I want to give you a quick
story from last night.

So the credit union that I'm about
to speak at their 65th annual meeting

in a few hours this evening they
do what's called a spot campaign.

So that means that they're around the
community and they'll just randomly

ask people, do you have a credit
union account with my credit union?

And if the person says yes, they have
to show their debit or credit card.

And that Senior executive gives
them a hundred dollars on the spot.

It's called a spot.

So anyway, so I've never
seen that done before.

So you want to get a group of
people in a restaurant excited.

So everyone is like, Oh my
gosh, what's this credit union.

And anyway, so I shared that story
with the hotel where I'm staying here.

And of course the staff kind of
thought that I worked for this credit.

It's like, no, I'm just
telling you the story.

I don't carry a hundred dollar
bills to do spot awards.

But again, that creates excitement.

That creates, it's a marketing tool,
but again, I love seeing the things

that credit unions are doing that
differentiate themselves from the

other financial services providers.

And those, that's just one
example of member excitement.

Treichel: Very good.

Very good.

So we've talked a lot about credit unions.

We've talked a lot about your journey,
to credit unions and time at NCUA.

And, we had a little bit of pre chat and
I know a little bit about what you're

doing and I, you mentioned LinkedIn,
I'm on LinkedIn a lot and I've seen you

that you're now serving on a couple of
boards of directors on LinkedIn that

you've announced there let's speak a
little bit about that process, what

you're doing there and then everything
else you're doing now that you've

left NCUA from a career perspective.

Rodney Hood: It's hard to believe
that it's been almost what seven

weeks or so now that I said
goodbye to the agency and whatnot.

And I not only left the board
seat and chairmanship of NCOA,

but I also retired from being
chairman of NeighborWorks America.

So in that short time, because of the
passion that you all know that I've had

for financial technology, it's natural
that a lot of the FinTechs that I got

to meet when I was at the agency I
got a chance to see their businesses

continue to grow and evolve and reach.

a modicum of maturity, and many
of them have asked that I advise

them as an independent director.

There are some venture capital firms,
Marcus so it's not the fintechs directly

invited me to join their boards.

It's the venture capital firms
that have invested millions or so

in dollars in these entities, and
they want to have someone with my

expertise around corporate governance.

knowledge of consumer protection and
compliance and also regulatory affairs.

So I've been asked to join a few
FinTech boards where I'm giving

them guidance on how to navigate
the regulatory regime in Washington.

How do they understand
what's what takes place?

Because Mark, when you have a FinTech,
they just have an idea and a tool.

They don't realize that their tool has to
go through a number of regulatory hurdles.

So how do they understand
Washington one on one?

So I'm excited about being an advisor
where they are gracious and providing

a compensation and other sort of things
that go with being a board member of some

of these venture capital based firms.

The one thing I want you all to know
that as I joined some of these boards,

I'm only joining boards of entities that
align with my mission and my purpose.

If it is a FinTech that doesn't
adhere to what I believe is the

crediting and ethos of people
helping people, I'm, I've said no.

I've said no.

I've said yes to maybe three
boards, but you all don't know.

I've said no to a hundred if they
don't align, if they're just looking

to come into accrediting because they
want a mass market, I'm like, no,

what's your fidelity to the ethos?

What's your fidelity to them wanting
to serve their members and especially

helping people of modest means.

So I have a litmus test as I do for.

Anything it is, does it align with my
purpose, my passion and my mission?

And the boards that I've served
on to date are doing just that.

I'm also doing quite a bit
of speaking engagements.

I probably have about 15 speaking
engagements where credit union

leagues and credit unions are either.

Invited me as a paid speaker to
come and talk about issues of

the day, lessons learned from
NCUA and things of that nature.

So between board service and public
speaking events and staying pretty

busy, it's only been about six weeks.

There are a number of things
that are brewing on the horizon

regarding what I would call the
next, what I would call full time.

But full time in today's world is a little
different, but there will be another

thing that I hope to announce soon.

Maybe in a year when we get together,
mark, we can talk about the new endeavor

that is on the horizon of being announced.

But for right now I'm passionate
about making a difference.

Public service really prepared me
with a lot of the relationships that

I've cultivated the world council.

I still stay engaged.

I was at the recent GAC was out
where I was able to speak on

a financial inclusion panel.

I've been invited to meet with
some of the African regulators

that are no stranger to NCA.

I know they've met with the
agency on numerous occasions.

So I will continue to be a part
of this industry because it aligns

with my ecclesiastical interests.

Treichel: That's fantastic news
for the industry the credit

unions, NCA, the fintechs.

I'm excited that you're staying on
the involved in all this because

it does match so well with your
passions and your core beliefs.

And it's funny I'm enjoying this hour.

I got a smile on my face because, Your
passion, your energy, your enthusiasm.

When you walk into a room and you
start talking, you stir people's

thoughts and ideas just because
you're such a positive person.

And you add so much to what's
happening in that room.

And I know NCWA is going to miss that.

It's a nice reminder for me to be able
to spend an hour with you here today.

And now if there was a question I
should have asked that I didn't ask

yet Chairman Hood, what would that
be as we wrap this up here today?

Rodney Hood: I think if there's
a question, what do I see the

future landscape as it relates to.

Credit unions, 357 years from today.

And I know I touched on
a little bit of this.

I think the landscape is bright and
bold as it relates to credit unions,

not only impress embracing technology.

I mentioned the business lending as I
travel and I'm here in a rural area,

and I've noticed that there are a number
of Banks that have left this local area

and these local main street merchants.

In fact, I just walked down this
local main street and there are a

lot of empty buildings and I think
credit unions are going to be uniquely

positioned to acquire some of those
banks and assume the liabilities

that are leaving these rural areas.

So I do think we're going to continue
to see credit is one able to grow

and take advantage of what could
be perceived as financial deserts.

I think credit unions are uniquely
positioned to come into these markets

and Continue to invest in serving
their members less, they then be

served by pet predatory payday lenders.

So I'm seeing that we're gonna see more
credit unions able to be in that arena.

And again, they're not nefariously buying
banks, but they're leaving the market.

I know that gets into a lot of
contention when people think that banks.

Are getting calls from credit
unions with bags of cash.

No, it's that they are
fleeing these markets.

So I do think we're going to see more
of that on the horizon as regional

banks and money center banks have
to navigate not only Cecil, but also

the Basel three risk capital regime.

So I do think that's going to open up
opportunities for credit unions to, to

really continue to grow and so doing,
I think credit unions are going to

be more of those providers of cash.

Small business or in our parlance
member business loans, credit unions

doing the PPP program originated 310,
000 paycheck protection loan products.

And I think that was a good
foray into credit unions,

being able to really provide.

Business lending, helping
those American businesses have

access to affordable capital.

I think we're going to see more of that.

And as banks are being sold or purchased
by creditors, I think the creditors

are going to have that expertise.

Now I don't want to encourage credit
use or acquire banks thinking that

they're going to learn about commercial
lending overnight does require some

technical skills and proficiencies.

But the thing is I think credit unions
are going to feel that void that is going

to be left as banks leave main street
and some of those market opportunities.

Credit unions.

I want you to be aware of those
opportunities, making sure that you are

fine tuning your risk management profiles
so that you can really harness the needs

that are going to come from the business
lenders business owners, and meaning not

just offering the lowest loan product, but
are you offering check box loan management

services, treasury management services,
all the things that business owner needs

to be really satisfied by the credit use,
I do think that's going to be a trend.

That we're going to see more of in
the years to come another area, you

know, Mark, we didn't talk about
this, but I was a proponent for

cannabis banking is legalization
because that is an underserved market.

I cared a lot about diversity, equity and
inclusion, and I looked very expansively

at diversity, equity and inclusion.

Yes, it's minorities ethnicity,
but it's also low to mod.

It's also tribal, rural.

Differently able and cannabis businesses,
the cannabis businesses, you all,

it's legal in 39 States, but yet,
and some issue in some instances,

it's still considered a taboo to bank
them when it's legal in 39 States.

So the 200 credit unions that are
engaged now in legally serving the

cannabis businesses through providing
them with an a tool for deposits.

I think that we're going to
see more of that tool, credit

is embracing the as Congress.

I hope pass Act.

I tell folks it's no but now when I think
that to see bipartisan support I just

did an interview w magazines around the
lega association, the comp To date, N.

C.

U.

A.

Has never closed down a credit union
that is following the Benson and B.

S.

A.

Guidance that are legally
operating in the business.

So I do think that the
taboo is being removed.

The 200 so credit unions
are engaged in it now.

And I do think that there's A bright
opportunity, but I do recognize

folks are waiting for Congress to
act, but I do think that's another

emerging tool that we're going to see
credit unions taking advantage of.

So I would say cannabis banking and member
business lending are those two things that

would continue to sort of equip credit
unions for future and long term success.

Treichel: Great point.

I agree wholeheartedly on both.

You you summarize that fantastic member
business lending is indeed the future.

And it's a matter of if not
a matter of if, but when I'm

cannabis banking for sure.

And it's great that, that Credit
unions are going into that.

Hopefully Congress comes around
and it can be legal everywhere.

So that the safe back bank acting
safe bank act can be passed would

be a great step towards that.

Chairman hood if if someone's listening
to this and their credit union, they're

going, you know what, I've got my annual
meeting coming up, or we're starting to

schedule for our next annual meeting,
and they want to reach out to you And

see how you might be able to help them
or just have a conversation with you.

What's the best way for someone
to get in touch with you?

Rodney Hood: A number of ways, Mark.

First and foremost, LinkedIn.

I love LinkedIn because it is
that very professional network.

So Rodney E.

Hood at LinkedIn, you'll
see my smiling picture.

And I really look forward to a
dialogue there or don't laugh,

but I still am Rodney Hood at AOL.

com.

And I've had it for so many years
now, probably since AOL was created.

And that's Rodney, R O D N E Y.

Hood H O O D at AOL.

com.

No dots necessary.

We weren't doing dots then
it was just our names.

So those are two things, but
LinkedIn, I try to respond to,

to every one of those requests.

And again, I'm enjoying the strategic
sessions where I've been speaking.

I've been enjoying like the keynote that
I'm going to give tonight, where I'm going

to talk about the credit union ethos.

And I just look forward to
continued engagement and Mark.

Thank you for your time, your leadership.

I know you've built a very
successful consulting business

and that's because of your great
track record there at the agency.

You've surrounded yourself with leaders
and I know in the credit union industry,

they are, there are a lot of folks who
want to provide credit union solutions.

You are doing more than that because
you know the industry so well and

intimately because of your work as being
an examiner and being the head of a

region and being the executive director.

So I don't know if there's anyone
else in the business who has your

track record, your personal capacity,
and the ability that you have to

really work on behalf of the credit
unions that you are partnering with.

So I just.

I, by the way, when I go to events
and people tell me that they've

worked with you, so you are
using real world best practices.

And most importantly, I don't know if any
of the other consultants who really have

embraced technology the way you have.

So you're able to help them
navigate a digital format

or a digital only existence.

And none of the others, I think
many of the others are tethered

to maybe things that may have
been popular 20 or 30 years ago.

You are current mark.

And that shows that you are
listening just as we were all seeing.

Continue learning, continue outreach and
education called the industry experts.

You're doing just that.

And that's what makes you so successful
and what separates you from the other.

So that's why I applaud you and
look forward to seeing you soon.

Treichel: Thank you so
much, Chairman Hood.

I really want to thank you for your
time this and again, your energy.

It It lights me up.

It fills me up.

And I know this is going to
be it is a great episode.

I'm looking forward to getting out
there so people can listen to it.

And thank you so much for your time.

You are welcome.

Thank you for having me.

You bet.

And listeners, I want to
thank you for listening.

I hope, and you'll hope
you'll listen again soon.

This is Mark Treichel signing
off with flying colors.