Ep. 67: The Changing Credit Union from the CFO Chair
Steve Arbaugh
Chief Financial Officer and Executive Vice President of Finance and Accounting
SECU
On This Episode
Steve Arbaugh, CFO and EVP of Finance at SECU, has a long background in the finance world. Steve shared some of the key aspects of his job, and of the financial industry as a whole, that he’s seen change and develop in recent years. Technology is bringing the biggest changes for credit unions, as it is constantly evolving and progressing. However, for credit unions, the money that goes into acquiring new technology can be a difficult task to manage.
Steve explained that credit unions can embrace this challenge by focusing on “technology that's going to do the most and improve our member experience.” Credit unions value the community aspect of finance and strive to have a close relationship with their members, and this was harder to maintain during the Covid-19 pandemic. However, through technology, institutions could take advantage of virtual capabilities that allowed them to maintain close communication.
Another aspect of ongoing transformation is the evolution of data management software. Data management, which involves analyzing, evaluating, and organizing data into usable information, can help a credit union be more effective at serving its members’ needs, but requires the right people and culture built from the top-down.
Having more access to readily usable and accurate data also helps companies make better decisions for their clients. Steve explained, “Data management at credit unions needs to continue to be high on their priorities because I think it’s going to give them the advantage to know their members.” Knowing members is something on which the CU industry has long prided itself, but as more members move to digital channels, the challenge to know and understand member needs becomes more data-driven.
Looking forward, Steve is excited to see how else technology will change the financial industry. Steve also encouraged future generations to sharpen their technical skills and embrace the digital revolution. Listen to this episode to hear more about how the financial industry is adapting to the digital revolution with Hunter and Steve.
More About Steve
Steven L. Arbaugh is the Executive Vice President of Finance and Accounting and the Chief Financial Officer of SECU, the largest credit union in Maryland. He graduated from Towson University in 1978 with a Bachelor of Science Degree in Business Administration and from Loyola College in 1983 with a Master’s Degree in Finance. Prior to joining SECU in 2008, Steve spent 30 years in commercial banking working for Provident Bank of Maryland, starting as an accounting clerk in 1978 and working his way to the position of Director of Asset/Liability Management and Treasury Operations. Utilizing the fundamental principles of business, he learned while at Towson and Loyola, Steve developed leadership skills in strategic planning, enterprise risk management, asset/liability management, mergers and acquisitions, investment and derivative portfolio management and organizational change management.
Steve is a past Chairman of the CUNA Finance Council (2018-2020) where he also served as Chairman of the Membership and Regulatory Committees and on the CUNA Councils Executive Committee. He worked directly with the NCUA in restructuring the 5300 Call Report and the Financial Accounting Standards Board in the development of CECL standards and on accessing the potential impact on credit unions. He co-founded the Maryland/DC Credit Union Association CFO Roundtable, along with Bill Kennedy, which meets quarterly with CFOs from Maryland/DC and surrounding states to share ideas and discuss challenges in maintaining the safety and soundness of their respective financial institutions.
Steve served as Chairman of Maryland Council on Economic Education and on the Board of the Maryland Coalition on Financial Literacy, whose purpose is to educate teachers and promote financial literacy throughout the state of Maryland. He served as Treasurer on the Board of the Credit Union Foundation of Maryland and the District of Columbia, responsible for providing resources to credit unions and the communities they serve with an emphasis on financial literacy, small credit union support, leadership development and education. Steve served on the Towson University College of Business and Economics Advisory Board and was Chairman of the Fund-Raising Committee. He was a volunteer for Big Brothers of Central Maryland where he mentored young men to improve their well-being and safety.
Steve was the Smart CEO Magazine CFO Executive Management Award winner in 2014, is an honorary member of the Beta Gamma Sigma International Honor Society and was the 2016 Towson University Alumni Volunteer Service Award winner. In 2019, Steve was awarded the Best in Finance: CFO Award by the Baltimore Business Journal.
