Every decision requires weighing the benefit of the member convenience versus not only the fraud exposure but the cybersecurity risks, ALM impact, privacy, data sharing, as well as what each auditor or examiner will expect to see and the employee time to implement and audit it as well as the expense and vendor due diligence requirements.

The amount of time spent on one project is immense. When I select a vendor, I am effectively entering into a partnership where their mistakes become my mistakes. A member does not care whether the breach or failure was a third party’s fault, they care that I let it happen. Regulators see it the same way.
Leadership of how to cross sell has been replaced with how to be compliant so that I can jump from an IT audits, to an NCUA exam, ACH audit, BSA audit, Internal Audit, Loan audits, vendor reviews, staff oversight, compliance changes in every area from human resources, lending, operations, and accounting to government and global levels.

As soon as one concludes, preparation for the next begins. With my last name being Audette, I am frequently jokingly called “Audit” because it often feels like I am always preparing for one.
Regulatory oversight today does not differentiate as much as one might assume between a three-person credit union and a 1,000-person institution in terms of expectation. The burden of compliance scales poorly for smaller credit unions, and keeping up with policy updates, training, implementation, and board reporting requires constant attention. Sometimes I barely have time to PDF a policy update before it needs to return to the Board due to another regulatory change. That’s just a small part of what happens throughout your day. It would be nice to show my leadership style in how I know each member by name and have the time to sit down and hear their stories more than I am able to.

I want to inspire the love of credit unions and the continuation of what an amazing mission we have and I think that often has taken a back seat for me so that I can prove the work we are doing and have audited can be reaudited by multiple examiners and I can defend a decision that was made 9 months prior when I’m working on a project currently two years into the future. Technology advances quickly and so it’s a balancing act.

With that technology, often comes fraud. AI voice takeovers, synthetic identity risk, account takeover schemes are what our staff meetings encompass. The leadership focus has shifted from growth conversations to defensive strategy. We must focus on our future as well as be compliant and relevant in the present.
Simultaneously, legislation and regulatory proposals continue to add layers of responsibility. Advocacy has become part of leadership because without relief or proportional regulation, smaller credit unions struggle to allocate the resources needed to learn new requirements, train staff, implement the changes, research and monitor compliance and document, document, document.


Perhaps the most personal change is how regulation affects day-to-day leadership presence. Earlier in my career, I had more time for lunch in the breakroom, employee group visits, staff development conversations and coaching as well as strategic creativity. Building that one-on-one relationship where you lead by example. Now, many lunches are spent at my desk reviewing guidance from the league, analyzing regulatory updates, or preparing documentation for examiners.
I am fortunate to have a strong professional network, but the emotional weight is real because ultimately, it is my responsibility to safeguard our members’ financial security, and I take that very seriously with every decision I make.

I’ve been in the industry long enough to remember the rumors of what this CECL “thing” could mean for us. I did an early adoption for POLAM.

Hey, let’s be ahead of the game I thought. The regulators didn’t like that. CECL isn’t an accounting change and that makes it very difficult to stand up at an annual meeting and try and explain. It directly impacts our net income, capital ratios, lending capabilities, how I am able to price and my growth strategies. Because expected losses are booked upfront, it can essentially reduce capital and restrict balance sheet growth even with the loan portfolio is healthy.

For a small credit union, it required a complete overhaul of our accounting processes and a lot of extra burden on the accountant. With changes come price increases as well. Our core prices went up, our analysis and audit fees went up, training expenses went up. I recall having so many conversations with the loan department about how I MUST have that loan pipeline. I was on them every couple of days to know what was going to fund.

With loan growth comes immediate reserve build up. If we have a time when the economy takes a hit, we in turn will need to recalculate and increase reserves. It’s a decision-making process every quarter. There isn’t a calculator or formula to plus into, it requires historical analysis, qualitative factor adjustments, model validations, more of that documentation, auditor, and examiner scrutiny. You need to be able to prove your numbers. It isn’t a magic formula.

At POLAM, putting the member first is not a slogan, it’s a decision filter. There are times we accept measured risk because we believe the value delivered will meaningfully improve the financial lives of our members. When we do that, we don’t ignore compliance; we engineer around it thoughtfully.
We determine the safest way to implement the idea. We consult peers. We leverage trusted CUSOs.
We partner with organizations aligned with our values and mission. Compliance provides guardrails. Mission provides direction. The balance comes from disciplined execution of a member-centered strategy — not from choosing one over the other. In the end, strong compliance protects the institution but also carries significant burdens. Strong mission focus protects the purpose. And when both are respected, the member wins.

For POLAM, the starting point is simple: every decision begins with the member. Just like asset size varies amongst credit unions, so does our field of membership.

Our fields of membership are unique, and that uniqueness shapes everything from risk tolerance, product design, delivery channels, and even how we interpret data. I often smile when someone draws conclusions based solely on a call report. Numbers tell part of the story. Membership tells the rest. I am fortunate to have a very Member driven board who is forward thinking and has diversified knowledge that makes us extremely strong.
Each credit union I’ve worked at has served a distinctly different community. When I arrived at POLAM, I initially saw things I thought were oversights — opportunities for immediate change. Instead of acting quickly, I chose to sit back, observe, engage, and listen. That approach was the complete opposite of my prior institution of 15 years, but POLAM’s membership had different needs, different expectations, and a different rhythm. Understanding that was essential before making decisions.
Balancing compliance and mission is not a conflict but it’s a sequence.

First question: Will this benefit the member?
If the answer is yes, then we evaluate:
• Regulatory impact
• Compliance requirements
• Financial cost
• Operational risk

Wow, it’s hard to imagine what the next few years will bring. On a broad level, the entire financial system may undergo a structural change. The continued reduction of cash is shifting us towards a fully digital industry. That increases our reliance on technology, heightens cyber risks, but my hope remains that credit union members will continue to see the benefit of the traditional service model where you have a balance of the human element with the technologic element.

We face challenges with specialized areas like IT and it’s every changing environment alongside the risk assessment and analysis side, the expense as well as the demand from our members. With each change comes regulatory expectations. The average consumer has no idea what goes on behind each change; regulatory, documentation, vendor due diligence, research, reputational responsibility, security, compliance…it’s endless. Gone are the days of “that sounds like a good idea” and leaving the board room with a vision easily implemented.

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