Web site marks CUNA 100 year anniversary
MADISON, Wis. - Historical information and campaign materials for the 100-year anniversary of credit unions is now available on a new Web site from CUNA.
The year-long celebration marks the U.S. credit union movement’s 100th anniversary, along with the 75th anniversaries of CUNA and the signing of the Federal Credit Union Act. CUNA recently launched a public relations campaign and media outreach effort devoted to the anniversary celebration, how far the movement has come in a century, and where it is headed in the future.
Campaign materials and additional resources were created for credit unions to use while promoting the celebration. At cuna.org/100years, credit unions will find:
* History - including an interactive timeline and highlights from the past 100 years credit unions.
* Video clip - CUNA President and CEO Dan Mica talks about credit unions’ 100 years of success.
* Campaign materials - credit unions can download free public relations and marketing materials, including a model speech, proclamation, celebration ideas, newsletter, press release, letter to the editor, logos, and ads to help promote the anniversary celebration.
* Online store - various promotional items and print materials for the celebration are available for purchase.
* Credit union stories and pictures - an area of the Web site was created for credit unions to share their pictures and stories.
“We couch the celebration in terms of the 100 years of growth and evolution that credit unions have undergone in order to continually improve service to members and further our tradition of People helping People,” said Dan Mica, president and CEO of CUNA. “The Web site is just one of a number of activities that CUNA has planned for the celebration.”
For more information, go to cuna.org/100years.
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About CUNA
With its network of affiliated state credit union leagues, Credit Union National Association serves 90 percent of America’s 8,500 credit unions, which are owned by more than 90 million consumer members. Credit unions are not-for-profit cooperatives providing affordable financial services to people from all walks of life. For more information, visit www.cuna.org.
The Power of Association
Choice. Value. Power.
Credit unions embody these principles for America’s working families. For America’s credit unions, membership in the Credit Union National Association (CUNA) and the state leagues represents those same high values and combines them with the practical tools that let credit unions take charge of their futures.
Close to 90% of the nation’s credit unions support the goals and efforts of CUNA through membership. And for good reason. With membership, you sign on with the nation’s most experienced team of credit union advocates. You participate in the most comprehensive credit union political action program ever seen. You receive timely infor mation from the most sophisticated credit union communications program. You obtain fresh techniques and the most innovative methods for keeping your credit union at the forefront of the fast-evolving financial services industry.
For sheer political strength, the three-tier system of CUNA, the leagues, and credit unions makes CUNA membership the triple threat of the credit union movement. There are those who think that if they are louder, or bigger, or meaner, they’ve earned the right to push credit unions around. But it is only true if you let it be true. Shaping your own destiny now that’s the power of association.
Dan Mica
President and CEO
Read more about it in the Power of Association brochure.
Scholarships available
SCHOLARSHIP CRITERIA SHEET FOR APPLICANTS
SCHOLARSHIP DEFINITION
• An annual scholarship in an amount to be determined by the Foundation Board of Directors
• Paid directly to a New Mexico institution at the beginning of the fall semester
ELIGIBILITY
• Applicants must be New Mexico residents (NM state residency requirement is 1 year)
• Graduating high school seniors must have a 2.8 cumulative grade point average (on a 4.0 scale)
• Undergraduate students must have a 2.8 cumulative grade point average (on a 4.0 scale). Only
undergraduate students are eligible
• Must be enrolled as a full-time student (no less than 12 credit hours)
• Must submit a copy of a recent transcript (does not have to be an official copy)
• Applicants must provide at least one letter of recommendation
• Applicants must use the scholarship to attend an accredited vocational, technical school, college or
university in New Mexico
• Applicants must submit a completed application (note there are 2 pages to be completed for this
scholarship application to be eligible), which must be postmarked no later than Friday,
February 27, 2009, for consideration for the 2009-2010 academic year. Scholarship recipients
will be notified within 60 days of the deadline.
This is a one (1) time scholarship. Persons who wish to receive additional scholarships must
re-apply each year. Scholarships will be awarded on the basis of funds available and the
applicant’s eligibility.
APPLICATIONS MUST BE POSTMARKED BY FRIDAY, February 27, 2009.
Send Applications to:
NEW MEXICO CREDIT UNION EDUCATION FOUNDATION
4200 Wolcott Ave. NE
Albuquerque, NM 87109
Download application here.
The New Mexico Credit Union Education Foundation does not
discriminate on the basis of age, race, creed, national origin or gender.
CUNA economist advises Bloomberg about economy
NEW YORK (10/27/08)--The strength of the rise of existing housing sales accompanied by continued price drops announced Friday is “somewhat surprising, but it’s only one good number and we’re not out of the woods yet,” Credit Union National Association Senior Economist Mike Schenk told Bloomberg Radio Friday afternoon.
Schenk was interviewed on the nationwide broadcast about the Federal Reserve’s meeting next week, housing numbers and the broad economy in light of Friday’s market activity, which reflects the notion of global recession.
The prices “won’t fall a whole heck of a lot more to get the market moving,” he noted, cautioning it is “better to wait a month to confirm whether it’s a trend or an aberration.”
The National Association of Realtors had reported Friday that sales of existing homes jumped in September--up 1.4% from a year ago and the first time that sales rose compared to the previous year since November 2005 (CNN Money Oct. 24). It also reported prices were down.
Foreclosures are a driving force in the market but Friday’s figures reflect sales two months ago, he said. “A lot has changed.”
Schenk said he is not as concerned about prices as about consumer confidence. “That’s more bad news. It means it will be less likely that people will jump into the market.”
The length of the downturn is more worrisome than the recession, he noted. “The Treasury and the Fed are throwing everything at it to solve the (credit market) problem. If it works and eases up, the recession likely will continue to the middle of next year. And it will look like previous recessions but it won’t be a V shape, where you hit the bottom and then go back up,” he said.
As for access to mortgages, there are problems on both the supply and demand sides, he said.
“On the supply side are foreclosures but a bigger problem is that people expect prices to go down more. In the audiences I’ve presented to, almost all the hands go up when I ask if they expect prices to go down,” Schenk said.
“The opposite is true on the demand side. You wait. You sit on your hands. It’s not expectations but the pricing. The pricing is different, the underwriting is different and there are fewer speculators today. In the past 20% of the mortgage activity was speculation. It’s not there today,” Schenk said.
Southwest Corporate to launch new service at economic forum
New product is fully-integrated, allowing CUs to use a single source
with a centralized database for all remote deposit solutions
Plano, Texas - Southwest Corporate Federal Credit Union has announced it is targeting Tuesday, Oct. 28the opening day of its 31st annual Economic Forumto unveil its consumer-oriented remote deposit product, Member Capture. The two-day Economic Forum, which typically draws around 400 participants, is being held at the Westin Galleria Hotel in Dallas.
“Credit unions have been anxiously awaiting the release of this product. Not only will it provide additional convenience to their members, but also it will give them a competitive edge over other financial institutions,” said Brad Ganey, Southwest Corporate’s Vice President, Item Processing Services. “There’s not a credit union in the country that has the ability to match the number of brick-and-mortar branches of a Chase Bank or a Bank of America. Member capture allows credit unions to do one better by taking the branch into their members’ homes.”
Southwest Corporate will roll out Member Capture at the Economic Forum with live demonstrations and the opportunity to dialog with Southwest Corporate’s remote deposit services management and support team. Product pricing will be available and credit unions can sign up to begin the implementation process.
Member Capture is the electronic imaging and transmittal of check deposits for processing from a member’s home. Southwest Corporate’s product is fast, easy to use and requires only a PC, Internet connection and flatbed scanner to operate. And software downloads are unnecessary, because the web-based program is accessed through the credit union’s home banking program.
“Member Capture is a membership growth and retention tool. It will immediately appeal to tech-savvy individuals, but it is intuitive enough for all members to use. The guiding principle in product design has been simplicity,” Ganey said. “We mapped it to the lowest-tech user with the slowest Internet connection and incorporated an online tutorial to guide users through the three-step deposit process.”
Southwest Corporate has been providing remote deposit services since 2002. Its Branch Capture, Teller Capture, Business Capture, Member Capture and soon-to-be-introduced ATM Image Capture are fully integrated, allowing credit unions to use a single source with a single, centralized database for all remote deposit solutions. This feature ensures that duplicate deposits – regardless of where they are made – can be detected and prevented.
A unique benefit of all Southwest Corporate remote deposit services is that Southwest Corporate staff performs all MICR correction for the credit union and, in the case of Member Capture, for the member. In addition, Southwest Corporate has a dedicated support team of 11 individuals, committed to assisting credit unions with implementation, training and free ongoing support, including balancing, software and hardware.
“Over comparable timeframes, the adoption rate of remote deposit has been three to four times higher than that of Internet home banking. Member Capture is likely to become a financial institution commodity, and credit unions have the opportunity to beat banks to the punch on this product,” Ganey said. “And for those members who enjoy coming into the credit union, you can actually improve their experience. Member Capture reduces branch traffic, shortening lines and allowing your tellers to spend time with members who need extra care.”
For more information on Member Capture, call 800.442.5763 or email .
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Southwest Corporate Federal Credit Union is an $11 billion Plano, Texas-based institution that serves nearly 1,500 member credit unions nationwide. Southwest Corporate’s broad financial service portfolio includes item processing and remote deposit services, investment services, ACH origination and electronic bill payment, ALM services and advisory service through its subsidiary, Southwest Corporate Investment Services.
CUES® and JMFA form partnership
MADISON, Wis. (October 14, 2008) – The Credit Union Executives Society is pleased to announce a partnership with John M. Floyd & Associates Executive Search Group (JMFA ESG), Baytown, Texas, to offer a new service that leverages the reputation, insights and experience of the two organizations to provide credit unions with exceptional talent recruitment at an affordable cost.
With more than 30 years of experience in financial services consulting, JMFA ESG has a vast network of more than 80,000 credit union contacts, and employs a number of consultants who are former financial institution executives themselves. This coupled with its up-to-date industry insight and proven, proprietary executive search and recruitment methodologies make JMFA ESG uniquely suited to find quality senior level professionals for today’s credit unions.
“Over the past several years, JMFA ESG has become a household name among credit unions,” said Mark Hawkins, president/CEO, Altura Credit Union, Riverside, Calif. and CUES chairman of the board. He praised the decision to partner with JMFA ESG, citing “an extensive referral network and database that will ensure credit unions have access to a variety of highly qualified executives. Plus, they do much of the time-consuming preparatory work, which saves credit unions time and money.”
Fred Johnson, CUES’ president/CEO, said “CUES’ commitment to executive leadership and development along with JMFA ESG’s industry experience makes our combined effort one that will provide the preeminent recruitment services to our members.”
According to Steve Swanston, JMFA executive vice president of business development, JMFA does more than just rely on classified advertising to fill executive positions. “We have worked with credit union leadership long enough to bring a unique understanding to their search for experienced, quality executive talent,” he said.
To learn more about CUES Executive Search in partnership with JMFA Executive Search Group, and the methods and strategies they use to ensure the “perfect fit” for credit unions and executive candidates, visit cues.org/jmfaexecutivesearch/.
CUES is a Madison, Wisconsin-based independent membership association for credit union executives worldwide. Its mission is to educate and develop credit union CEOs, directors and future leaders. For more information, contact Jessica Hrubes, VP/Marketing; 800.252.2664, ext. 5362; jessica@cues.org; cues.org
JMFA ESG is a Baytown, Texas-based firm specializing in recruitment searches along with outplacement services and succession planning. JMFA ESG is a division of John M. Floyd & Associates which is a profitability and performance improvement consulting firm serving the financial services industry for more than 30 years. For more information, contact Steve Swanston, Executive Vice President; 866.264.5017; ; www.jmfaesg.com
Frank: CUs not to blame for crisis
WASHINGTON (10/22/08)—As he opened yesterday’s hearing on financial regulatory oversight in light of the country’s economic upheaval, House Financial Services Committee Chairman Barney Frank (D-Mass.) noted that credit unions “have absolutely no responsibility” for creating the current economic crisis.
He said they deserve to be recognized for it.
From there, the hearing went on for five hours to take a broad look at regulatory issues that broached the span of topics from the creation of the mortgage and housing crisis, the proper regulatory structure for the country’s financial institutions, the mortgage securitization process, and much, much more.
The hearing was a continuation of an investigation begun by the committee in July, when the panel conducted two hearings focused on regulatory restructuring and systemic risk, during which the committee heard from regulators.
Mica on bailout bill
Friday, October 3 — President Bush has this afternoon signed into law the financial rescue bill (the “Emergency Economic Stabilization Act,” HR 1424), following the House’s approval just after 1 p.m. today. With the President’s signature, the bill is now law of the land.
Some thoughts:
*Perhaps the most significant item for credit unions in the legislation is the increase in deposit insurance coverage to $250,000 (from the current $100,000). The increase, according to the legislation, will be temporary; in effect from today until Dec. 31, 2009.
By being included in this provision, credit unions remain on the same level as FDIC-insured banks in terms of deposit insurance coverage. This is vital to maintaining member and public confidence in credit unions as safe, sound and solid financial institutions.
Congress will next year address the question of making the insurance increase permanent. This, of course, would have implications for how credit unions would pay for this additional coverage.
For now, however, credit unions will pay nothing. The legislation states clearly that the temporary increase in the standard maximum share insurance amount shall not be taken into account by the NCUA Board for purposes of setting insurance premiums or share insurance deposit adjustments.
*Regarding credit union involvement in the $700 billion “Troubled Assets Relief Program” (TARP), meant to assist financial institutions (including credit unions) in selling off troubled loans and/or securities, let me suggest this (and be clear):
** BEFORE INVOKING “TARP,” PLEASE TRY TO WORK WITHIN THE CREDIT UNION SYSTEM TO RESOLVE YOUR ISSUES. TALK TO YOUR CORPORATE, YOUR LEAGUE OR US AT CUNA IF YOU NEED GUIDANCE IN WORKING WITHIN THE COOPERATIVE CREDIT UNION SYSTEM TO HELP.**
The fact is, credit unions were not at the root cause of the problems that ultimately led to this legislation; they have been – and continue to be – responsible lenders. With that in mind, the credit union movement can reinforce its image as continuing to be responsibly self-sustaining by solving our own issues.
*Along those lines, please be reminded that President Bush earlier this week signed legislation (a “continuing resolution” to keep the government funded and in business during the upcoming congressional recess). That legislation allows the NCUA’s Central Liquidity Facility to access up to $41 billion in borrowing authority from the Treasury (in other words, the bill lifted any caps on the borrowing authority).
Before going outside of the system, credit unions should consider that we do, indeed, have this additional source of funding waiting to be tapped should it be needed.
*Regarding the more practical aspects about the increase in deposit insurance coverage; Namely, what will credit unions have to do?
Chances are, credit unions will want to get the word out as quickly as possible about the increased coverage. Today, NCUA announced it is changing all of its information related to share insurance on its website, including an updated version of the official “insured status” sign. CUNA is coordinating with NCUA on this. We will be providing additional information about it and other aspects of the bill to our members this afternoon.
Three related points from our compliance staff:
--The increase to $250k is temporary (as noted, running until Dec. 31, 2009). But we are sure the regulator will not expect you to advertise this temporary status (understandably causing confusion among members). Further, as indicated, Congress will likely be revisiting the “temporary” issue.
--Insurance coverage can actually be much more than $250k. The rules on how account ownership can increase coverage – such as by use of joint accounts and trust accounts – are not being changed.
--Finally, be reminded that the $250,000 separate insurance limit on IRAs is unchanged.
Let me close with this information I came across today:
Apparently, the auto dealers have been fanning out over Capitol Hill complaining that no money is being made available for car loans (it is one of the points they made in urging “yes” votes on the bill). There may be an opportunity for credit unions to focus some of the lending/marketing dollars toward auto lending, to fill the breach described by the dealers.
I hope this information is helpful to you. Later today we will post a summary of the bill’s contents and key information on the CUNA website. Further, in the coming days, and weeks (no doubt), we will have more to share with you.
In the meantime, enjoy your weekend!
Dan
Bancography: White Sands FCU among top CUs
BIRMINGHAM, Ala. - Financial institutions that stay true to their core values and deliver for their customers have the strongest brands, an analysis of all American banks and CUs revealed. Among the top 10 credit unions, divided into five with assets less than and five with more than $1 billion, was White Sands Federal Credit Union in Las Cruces, NM. White Sands President/CEO William Jacobs is also the chair of the Credit Union Association of New Mexico board of directors.
In the first of its biannual brand value index report, Bancography determined the top banks and credit unions in the country based on a mathematical formula that backed out all tangible assets, and adjusted for franchise values such as affluence, competition and market, leaving only the strength of the intangible values, which it refers to as the brand.
“It is a quantitative ranking of brand and we were able to examine every bank and credit union in the US,” said Bancography president Steve Reider. “If we can’t attribute the value to the tangible assets and we can’t attribute it to the franchise location, then how are you getting this income, how are you getting these deposits? And the answer has got to be brand.”
Reider explained further that the brand is far more than logos, advertising strategies or how branch buildings look, and are instead the “values that the institution stands on.” Commerce Bank of Missouri, which made it into Bancography’s top 10 mid-sized bank rankings, Reider pointed out, also recently won the J.D. Power and Associates award for highest customer satisfaction at a financial institution. “That can’t be a coincidence,” he concluded.
Financial institutions that proved they have a personal relationship and rapport tended to score very highly, especially those that served a particular niche.
“They don’t play the rate game. They are absolutely competing on relationship attraction rather than pure rate-based premises,” said Reider. “If there is one way I can unite the top ranking banks, [it] is that the overwhelming majority of them have pretty focused marketing strategies from a segmentation standpoint. They aren’t trying to be all things to all price points to all people.”
But as the merger frenzy continues in the financial world, Reider sees an interesting dichotomy between growing to survive and establishing a strong brand.
“It raises a question, I believe, about how you maintain that service promise and that focus even as you expand to new line of business segments or new geographic segments,” Reider said. The rankings did not include institutions that have averaged negative operating earnings over the past three years, those operating below regulatory capital adequacy thresholds, and those without traditional retail banking operations. It also only examined financial institutions that have been in operation for three years or more.
“One of our goals in deriving this is to promote some discussion about what it really means to have a good strong, brand out there,” said Reider. (c) 2008 The Credit Union Journal and SourceMedia, Inc.
Strong brand ranking doesn’t surprise White Sands CEO
(from September 8 edition of Credit Union Journal)
Word of mouth has been White Sands Federal Credit Union’s best marketing campaign as nearly three quarters of its new accounts have been generated by referrals, CEO William Jacobs said.
“That’s really become our business development — we take care of our members and they refer people to us. That’s as simple as it’s come down to.”
Its service quality has not only earned additional accounts but also a strong reputation in the area has it has been ranked as the fourth strongest credit union (under $1 billion in assets) brand in the United States, according to a Bancography study. Jacobs took the accomplishment in stride, noting the credit union has always kept its eye on the ball when it comes to taking care of its members and establishing a positive presence in the community.
“It really doesn’t surprise me and the reason it doesn’t surprise me because a lot of credit unions try to find that new business, and we made a decision years ago that we were really going to take care of the business we had and let it grow from there,” he said.
There have been a number of bank mergers in the area, Jacobs noted, but those changes have only served to make White Sands stronger as it became better known as an establishment within the community.
“We became very service oriented,” he said, noting the credit union’s policy of opening its doors a few minutes early and closing a few minutes late to accommodate any members who might be on a tight schedule. “That sounds really kind of basic but it really made a difference for us.”
To give back to its members further, and increase the probability of them spreading the good word about White Sands, the credit union set up a number of rewards programs for repeat processes. Those rewards, combined with an increased focus on customer service, helped to gin up more loyalty, Jacobs believes.
“We really went back to basics and took care of people in the lobby. Nothing is worse than walking into any financial institution than seeing this beautiful lobby and there are two people there,” said Jacobs.
Building up a brand is the exact same way one would go about building up a reputation and a strong rapport with the community, according to Jacobs. He urged other institutions that are looking to grow and expand their reach to look first at their existing membership and how to better serve them.
“I truly believe that we tend sometimes to take our eye off what we currently have as we search for that new book of business,” he said. “Build that business from what you have and the other will come with it, but neglecting what you have will get you in trouble.”
CUANM on TV: CUs insured, in good shape
Credit Union Association of New Mexico CEO Sylvia Lyon was interviewed Friday morning on local TV about the status of credit unions during the recent financial shakeups. During her interview with Albuquerque news anchor Mike Powers, Lyon assured listeners that credit unions in New Mexico and nationwide are in good financial shape, are ready to help members and are open to new members.
The video segment is available on the KRQE Web site.
In the 2 1/2 minute segment, Lyon discussed how credit unions are performing in the current economy and the financial crisis. Credit unions are in good financial shape because they didn’t take on risky sub-prime mortgage lending, she said, and have always made responsible loans.
Lyon emphasized that federal insurance coverage through NCUA for the same amount that bank accounts are insured. And, she noted, if lawmakers raise federal insurance on bank accounts to $250,000, as recommended in the current financial rescue plan, credit union accounts will get the same extended coverage from the NCUA.
Powers asked if government employees were the biggest bloc of credit union members. Lyon replied that while that was the case in the past, now more credit unions are opening their membership to more people. She pointed interested listeners to the credit union directory on the CUANM Web site or told them to call the CUANM office and staff would help them to determine if they are eligible for membership.
“My goal was to send a clear message about the share insurance coverage. I hope this segment reaches many New Mexicans and helps create greater awareness for all consumers about credit union insurance coverage,” Lyon said about the TV interview.
Credit unions are safe, secure
In today’s financial marketplace, consumers are becoming increasingly concerned about the safety and soundness of their money. The recent failure of several financial institutions and current financial crisis, as well as the overall economy, have people very anxious. It is critically important for consumers to have confidence in their financial institution and the regulatory safeguards that are in place to help protect them.
The public should know that New Mexico credit unions are safe and sound financial institutions. The deposits of New Mexico’s 615,630 credit union members are federally insured by the National Credit Union Administration (NCUA) and backed by the full faith and credit of the United States government. Every member’s account is federally insured up to $250,000 and retirement accounts are insured up to $250,000. And as some lawmakers recommend raising that coverage to $250,000 for bank accounts, national credit union representatives are working to make sure the coverage will extend to credit unions.
In the history of the insurance fund, not one penny of insured savings has ever been lost by a member of a federally insured credit union. In addition New Mexico credit unions as a whole are in very strong shape and very well capitalized. Credit unions set aside extra capital to serve as a safety net should any losses occur. New Mexico credit union members can rest assured that their deposits are safe and sound.
In economically challenging times, consumers not only need a good deal, but also a provider they can trust. Who better to help them than an organization whose mission is people helping people?
To learn more about your insured savings, visit the following websites:
NCUA Share Insurance Estimator
NCUA ad campaign focuses on share insurance
ALEXANDRIA, Va. (10/1/08)--The National Credit Union Administration (NCUA) said yesterday it will embark on a national advertising campaign to ensure members know their money at federally-insured credit unions is backed by the full faith and credit of the U.S. Government.
A media campaign featuring “Uncle Sam” will kick-off Thursday with advertisements in the USA Today and other major U.S. newspapers. The campaign’s message is “to assure credit union members and the general public that most credit union member accounts are federally insured,” said the agency.
In addition, NCUA said it begins distributing this week to each federally-insured credit union three large lobby posters that feature “Uncle Sam” and accompanying text, “This Credit Union Is Federally Insured.”
NCUA also said Chairman Michael Fryzel plans to assure credit union CEOs via video that federal insurance remains safe and secure. He will highlight the NCUA’s electronic Insurance Tool Kit, which is designed to help members understand their federal insurance protection.
“Understandably, consumer confidence in our financial structures has been shaken by recent turmoil in the markets,” said Fryzel. “Federally insured credit unions remain a safe and sound alternative, and I will do everything in my power as chairman of the National Credit Union Administration to make certain that accurate and useful information about the National Credit Union Share Insurance Fund is available.”
Fryzel called upon credit union volunteers and professionals to “do their part to help members understand how their credit union funds are federally insured.”
Download a copy.
Credit unions assure members they're weathering financial crisis
In light of recent financial events, CUNA and the Credit Union Association of New Mexico are working to get out the word to credit unions and their members about the safety and security of credit unions and what they’re doing to weather this financial crisis. Below are some features from CUNA that will help your credit union understand what’s being done and assure your members their accounts are safe.
More details, videos and information can be found on the CUNA Web site.
• Special message from Dan Mica
Addressing the financial turmoil
It is a very busy and hectic time in Washington this week, what with the financial turmoil, the continuing wrangling over the legislative package to provide relief for the nation’s financial system, and our own struggle to make sure EVERYBODY understands credit unions have federal insurance for consumers savings too. Mica has recorded a special message to credit unions addressing concerns over what is happening to the nation’s financial system, and the ultimate impact on credit unions.
• Dan Mica has recorded a video for credit union members explaining federal savings insurance for credit unions, saying credit unions are “probably the safest depository institutions in the country right now.” The video can be embedded onto your credit union Web site from the CUNA page. Left click on the far right box and follow the directions to embed the video.
• CUs have federal savings insurance
WASHINGTON (9/25/08, UPDATED 11:30 ET)--Following President George W. Bush’s Wednesday night speech on an economic rescue plan, the Credit Union National Association (CUNA) in a national press statement today reminded consumers the money of virtually all credit union members is protected by federal insurance at their credit unions--insurance coverage that is similar to that provided to banks by the Federal Deposit Insurance Corp. (FDIC). Read more.
• Credit unions in the news during market crisis
CUNA features a list of various news stories regarding credit unions — and their stability and security — during the current market crisis. See the full list.
• Paulson says CUs included in federal rescue proposal
WASHINGTON (9/25/08)--U.S. Treasury Secretary Henry Paulson, Jr. in testimony before the House Financial Services Committee yesterday said credit unions would be included in any federal plan to rescue the financial services sector. Read more.
• President Bush asked to note NCUSIF
WASHINGTON (9/25/08)—President George W. Bush was asked by the Credit Union National Association (CUNA) Wednesday to instruct those within his administration to included federal credit union share insurance in messages meant to reassure Americans about the safety of their federally insured deposits. Read more.
• Brochure available from NCUA
The National Credit Union Administration, commonly referred to as NCUA, is the federal government agency that charters and supervises federal credit unions. NCUA also operates and manages the National Credit Union Share Insurance Fund (NCUSIF). Backed by the full faith and credit of the U.S. government, NCUSIF insures the accounts of millions of account holders in all federal credit unions and the majority of state-chartered credit unions. This brochure explains how.
September CUANM Network newsletter
In this month’s CUANM Network newsletter...
• CUs attend Dems’ convention
• Iraq vet recipient of new home
• CUs thriving in shaky market
• Red Flag requirements
• JMFA offers no-cost reviews
• Compass program improves productivity
• CUs in the news
And more…
cuanm_e-newsletter_September_2008.pdf
Southwest Corporate to launch new service at economic forum
New product is fully-integrated, allowing CUs to use a single source with a centralized database for all remote deposit solutions
Plano, Texas - Southwest Corporate Federal Credit Union has announced it is targeting Tuesday, Oct. 28, the opening day of its 31st annual Economic Forum, to unveil its consumer-oriented remote deposit product, Member Capture. The two-day Economic Forum, which typically draws around 400 participants, is being held at the Westin Galleria Hotel in Dallas._thumb.jpg)
“Credit unions have been anxiously awaiting the release of this product. Not only will it provide additional convenience to their members, but also it will give them a competitive edge over other financial institutions,” said Brad Ganey, Southwest Corporate’s Vice President, Item Processing Services. “There’s not a credit union in the country that has the ability to match the number of brick-and-mortar branches of a Chase Bank or a Bank of America. Member capture allows credit unions to do one better by taking the branch into their members’ homes.”
Southwest Corporate will roll out Member Capture at the Economic Forum with live demonstrations and the opportunity to dialog with Southwest Corporate’s remote deposit services management and support team. Product pricing will be available and credit unions can sign up to begin the implementation process.
Member Capture is the electronic imaging and transmittal of check deposits for processing from a member’s home. Southwest Corporate’s product is fast, easy to use and requires only a PC, Internet connection and flatbed scanner to operate. And software downloads are unnecessary, because the web-based program is accessed through the credit union’s home banking program.
“Member Capture is a membership growth and retention tool. It will immediately appeal to tech-savvy individuals, but it is intuitive enough for all members to use. The guiding principle in product design has been simplicity,” Ganey said. “We mapped it to the lowest-tech user with the slowest Internet connection and incorporated an online tutorial to guide users through the three-step deposit process.”
Southwest Corporate has been providing remote deposit services since 2002. Its Branch Capture, Teller Capture, Business Capture, Member Capture and soon-to-be-introduced ATM Image Capture are fully integrated, allowing credit unions to use a single source with a single, centralized database for all remote deposit solutions. This feature ensures that duplicate deposits – regardless of where they are made – can be detected and prevented.
A unique benefit of all Southwest Corporate remote deposit services is that Southwest Corporate staff performs all MICR correction for the credit union and, in the case of Member Capture, for the member. In addition, Southwest Corporate has a dedicated support team of 11 individuals, committed to assisting credit unions with implementation, training and free ongoing support, including balancing, software and hardware.
“Over comparable timeframes, the adoption rate of remote deposit has been three to four times higher than that of Internet home banking. Member Capture is likely to become a financial institution commodity, and credit unions have the opportunity to beat banks to the punch on this product,” Ganey said. “And for those members who enjoy coming into the credit union, you can actually improve their experience. Member Capture reduces branch traffic, shortening lines and allowing your tellers to spend time with members who need extra care.”
For more information on Member Capture, call 800.442.5763 or email .
CNN, Forbes on CUs: 'Grab them while you can'
ATLANTA (9/19/08)--"If there’s a calm in the economic storm, it may be credit unions, whose investors are sleeping through the night,” reported Susan Lisovicz of CNN Thursday during an interview with Neil Weinberg, senior editor of Forbes Magazine.
“We’ve had mergers and bailouts and a lot of us are nervous. Tell us why we should take a second look or in some instances a first look at credit unions,” asked Lisovicz, amid banner headlines that said, “Credit unions weather rough seas.”
Weinberg’s answer focused on two reasons why “credit unions are a safe harbor”:
* Credit unions are operated as a “stable and profitable business, taking deposits from you and me through our savings and checking accounts, and lending out money for car loans, which earns a spread that is profitable.”
* Most credit union accounts are federally insured by the government up to $100,000.
“They tend to be conservatively managed and federally insured, which in this day and age is what you want,” advised Weinberg.
He explained that through lobbying in Washington, credit unions have “managed to open the doors of membership quite a bit” and in many cases a person related to someone in an affinity group can join a credit union.
“You want to jump on board,” Weinberg advised.
When asked what is it about credit unions that doesn’t lead to the same kind of forecast for other commercial institutions, Weinberg said credit unions haven’t got into the same trouble as commercial banks that specialized in mortgages and made risky home loans.
“Typically, credit unions have federal charters and federal inspectors, with strict, tougher rules. Because they began as agricultural cooperatives, they are run conservatively. You want to go for those credit unions.”
“I got the message,” said the Lisovicz. “You want to go for a credit union. Grab them while you can.”
Hampel: CUs should 'ride out' the economy
WASHINGTON (9/17/08)--Economic news that’s bad for households will translate to pressure on credit unions, but most credit unions should “ride it out,” according to Bill Hampel, Credit Union National Association chief economist.
He noted that the government’s intervention with Fannie Mae and Freddie Mac is a good thing for the economy and households: “It removed a huge negative regarding the credit crunch, and removed some uncertainty.
“This is not to say that the economy is in for bright sailing. We are still looking for a weak economy well into next year. But, the government’s intervention with Fannie Mae and Freddie Mac at least removes one of the heavy weights on the housing market.”
With a weak economy and falling home prices, “credit unions are under enormous pressure, with the lowest earnings or net income that many boards have ever seen,” he said.
“But our message is: If you make a mistake, fix it. If it’s outside economic factors, ride it out,” he said. “For most credit unions, the recent bad numbers are the result of external factors, not bad decisions by the credit union.”
Credit unions have become collateral damage in the housing crisis. “Decent credit unions making decent lending decisions with decent policies can run into problems. That does not necessarily mean the policies have to change.”
In the “big game of chicken between Wall Street and banks” as to who pays for the Lehman Brothers’ problems, the Treasury didn’t blink, he said. “It’s way too early to see what will happen. However, investors and consumers are more nervous, he said.
“It’s important for credit unions to explain deposit insurance. It’s really important to explain that NCUA insurance works just like FDIC insurance. Credit unions without federal deposit insurance will have to make the case as to why they are safe,” he added.
“Credit unions are still in very good shape. The economic environment is not pleasant, but credit unions are well-capitalized. Still, even though credit unions aren’t responsible for the credit crunch, the low ROAs (return on assets) will be wrenching.”
Credit unions have seen increases in loan demand--almost all in mortgages, largely because the securities market, which funds the housing market, is paralyzed, he said.
“Credit unions have incredibly low delinquency rates. Charge-offs for the first half of the year tripled, but they are still low. Last year they were 0.02%--essentially zero. This year, they are three times that, at 0.06%, but that is still very, very low zero,” Hampel noted.
CUAid activated for Hurricane Ike victims
National Credit Union Foundation, Texas Credit Union Foundation Appeal for Donations from Credit Union Supporters Across America
Please click here to help survivors of Hurricane Ike.
The National Credit Union Foundation (NCUF) and the Texas Credit Union Foundation have activated the online disaster relief system CUAid.coop to raise money for credit union people affected by Hurricane Ike.
Credit union supporters in every state can now make donations through a secured website that accepts credit cards and wire transfers. While Texas credit unions can donate directly to the Texas Credit Union Foundation, individuals in Texas are encouraged to donate online via http://www.cuaid.coop/texas. Credit union supporters everywhere else can donate via www.cuaid.coop.
“We are encouraging credit union leaders all across the county to use CUAid.coop as a channel to collect donations from their employees, volunteers, and members,” explained NCUF Deputy Director Steve Bosack.
“It never ceases to amaze me how willing the credit union movement is to open their hearts to one another in times of disaster,” noted Texas Credit Union Foundation Executive Director Jill Pharr. “Often times, consumers want to help in disaster situations, but they don’t always know how to channel their desires. CUAid is a wonderful tool to facilitate a relationship between donors and a reputable charitable organization. We are encouraging credit unions across the Lone Star State to make the CUAid link available on their website, so employees and members alike can contribute to disaster relief efforts.”
As donations are posted through CUAid.coop, NCUF will coordinate with the state credit union foundation to distribute money efficiently to those who need it in the affected areas.
“We will work closely with affected credit unions and the Texas Credit Union League to assess the needs in the affected areas,” confirmed Pharr. “We will also serve as the repository for Texas credit union disaster donations, which will then be provided in the form of emergency grants for credit union employees.”
The Texas Credit Union Foundation has a two-phase support system, beginning with emergency grants of up to $500 to assist affected credit union employees with their immediate needs. The second phase will provide support for credit union employees with unmet needs after other relief has been exhausted.
All donations via CUAid.coop will go toward grants as well. Donations will be forwarded in their entirety to credit union organizations in affected areas through NCUF, which is tax-exempt under Section 501(c)(3) of the US Internal Revenue Code.
“CU Aid is one of many ways our Foundation gives back to the credit union movement to thank donors for all their generosity,” Bosack concluded.
About CUAid:
CUAid was developed by NCUF in cooperation with state credit union foundations, state credit union leagues, and the Credit Union National Association’s Disaster Preparedness Committee.
The secure online tool links the entire credit union system to raise money for disaster relief, most recently after the Iowa floods and California wildfires.
CUAid is the only program of its kind that enables credit union employees, volunteers, and members, as well as credit unions and state credit union foundations across the US, to contribute directly to support other credit union people.
CEO’s uncle evacuated in flooding
The effects of flooding from Hurricane Ike has hit close to home in New Mexico. Everyone’s CEO Andi Baum reports that her elderly uncle was among those evacuated in Louisiana. Read more.
CUNA Mutual risk managers list common scams
Tellers can be a strong line of defense against fraud
Fraud, con games, scams, and other criminal activities pose a daily threat to financial institutions. Some marvel at the ingenuity of these criminals. But until you’ve been at the losing end of the transaction, it’s difficult to feel the impact on members’ finances and lives.
The following are a few of the top scams currently targeting credit unions and members, according to CUNA Mutual Group’s risk managers:
• Counterfeit money orders and bank/credit union checks with high quality paper, graphics, and printing used to obtain funds from unsuspecting members.
• Several forms of overpayment by check—typically for several thousand dollars—with a request to wire-transfer the excess to another financial institution. These scams often begin on the Internet. Another form of this scam, called the “secret shopper,” involves members being asked to cash a check at their own bank/credit union and then wire the funds back to the scammer.
• Mailings telling members they’ve won the “International Lottery” and are now required to pay taxes and/or fees to claim their winnings.
• Funds transfer scams involving large HELOCs. Posing as a member, the fraudster requests large-dollar draws to be wire-transferred to other financial institutions. To prepare, fraudsters often request a change in the member’s callback phone number, and later request various account information that will help them impersonate the member.
The good news is, credit unions can often thwart these scams. Start by staying in touch with current scams. An excellent resource is CUNA Mutual’s RISK Alert program which provides just-in-time emails that include fraud headlines, brief summaries, and a direct link to loss prevention recommendations. (See sidebar.)
Fraud prevention tips for tellers
Training is critical, especially for front-line employees such as tellers, who play a pivotal role in deterring fraud. Here are some techniques and ideas for detecting a scam before it causes a loss to the credit union or a member:
• Trust your instincts when something seems out of the ordinary. If it looks like a duck, walks like a duck, and quacks like a duck . . .
• Don’t be afraid to ask questions. Explain to members that you’re not doing so to inconvenience them, but to ensure that their finances are secure and protected.
• Review the member’s account history and average balances to help identify unusual and suspicious transactions.
• Always know and follow your credit union’s policies and procedures (e.g. check holds and member verification). Good habits are easy to follow and hard to break. Also, your members will learn to expect them.
• Seek training in how to spot counterfeit checks and forgeries. Discuss best practices with your supervisors, branch managers, and office peers.
Fraud perpetrators continue to refine their methods of compromising and draining accounts—always trying to stay under the radar. They are experts at blending in as they accumulate credentials, identities, and eventually assets.
The first mistake credit unions make is believing that it hasn’t or won’t happen to them. It happens everywhere.
For more risk management information and access to CUNA Mutual’s Protection Resource Center, a comprehensive suite of educational resources, visit www.cunamutual.com or contact your CUNA Mutual Sales Executive at 800-356-2644.
Get e-mail alerts as new scams hit the market
Scam artists continually deploy new techniques and new frauds to extract money from credit unions and members. In the face of such “innovation,” it’s essential for credit unions to keep abreast of the latest scams and fraudulent activity.
CUNA Mutual’s RISK Alerts program serves as an online resource for the latest fraud-related information. Sortable by date or topic, the program allows you to track emerging threats and provides recommendations to help your credit union best protect itself from new risks.
Even better, you can subscribe to receive RISK Alerts e-mails featuring headlines and summaries of the latest protection news. Access to RISK Alerts is included as part of CUNA Mutual’s Credit Union Protection Resource Center, an online repository of protection and risk management information.
CUNA Mutual customers may visit the Protection Resource Center by logging in at www.cunamutual.com.
Southwest Corporate seminar designed to help CUs consider business member market
No-cost sessions aim at attracting, serving new members
sw_corporate_9-08.pdf
E-mails from 'NCUA' a scam
Some credit union members have reported receiving a phishing e-mail. Phishing is the criminally fraudulent process of attempting to acquire sensitive information such as usernames, passwords and credit card details, by masquerading as a trustworthy entity — such as a credit union — in an e-mail.
The scam e-mail purports to be from the National Credit Union Administration (NCUA) and asks ‘FCU holder account’ to click into a link and fill in a form. The scam e-mail says the action is designed to protect the recipient’s account and threatens that if the recipient doesn’t comply, account access will be limited or denied.
The fraudulent e-mail was not sent by the NCUA or any credit union or other financial institution. No reputable financial institution, such as a credit union, will ask for personal information — account number, usernames, passwords or Social Security number — in an unsolicited e-mail.
Members should contact their credit unions if they have questions or have received a similar e-mail. A credit union directory, including phone numbers, can be found on the Credit Union Association of New Mexico Web site.
FIS provides comprehensive solutions to credit union market
In any given hour, 3 million transactions are being processed through ATMs, online, by phone or in financial institutions around the globe. 
Credit unions optimize efficiencies, mitigate risks and maximize revenues using FIS’ core-processing and business- intelligence solutions — solutions that are comprehensive, fully integrated and delivered via a single point of contact. FIS provides comprehensive solutions to a variety of markets.
Read more...fis_september_2008.pdf
JMFA offers no-obligation reviews
Overdraft Privilege Compliance and Performance Review
BAYTOWN, TX (August 28, 2008) – John M. Floyd & Associates (JMFA) is offering Credit Union Association of New Mexico members a way to determine if their existing overdraft privilege program is compliant and performing at its peak with a no-obligation JMFA Overdraft Privilege Compliance and Performance Review.
“With current economic conditions, many credit unions are relying on non-interest income provided by overdraft privilege programs to boost their bottom line and help them compete in today’s marketplace,” said James Atwood, JMFA regional director. “However,” Atwood cautioned, “if the program isn’t kept up-to-date, it can become non-compliant and end up being a liability for the credit union and a stale service that has little value for its members.”
A JMFA Overdraft Privilege Compliance and Performance Review provides an assessment of how well a credit union is complying with regulations and managing operational procedures, such as personnel and member training, and technology upgrades. This helps the institution to avoid federal and state violations and ensures that the program is providing benefits to both the credit union and its members.
CUANM members who are interested in learning more about the no-obligation, JMFA Overdraft Privilege Compliance and Performance Review should contact James Atwood, JMFA regional director, at James.Atwood@JMFA.com or call (877) 668-4857.
About JMFA
John M. Floyd & Associates (JMFA), a Preferred Business Partner for Credit Union Association of New Mexico, is a profitability and performance improvement consulting firm, serving more than 2,000 financial institutions in all 50 states and Central America. As a direct result of our programs, JMFA has helped thousands of clients dramatically improve their performance and their bottom line. Credit unions implementing the JMFA Overdraft Privilege Program have increased their non-interest income anywhere from 50% to 300%. To learn more about JMFA, please contact James Atwood, JMFA regional director, at James.Atwood@JMFA.com or (877) 668-4857.
Southwest Corporate CEO responds to WSJ article
Today’s edition of the Wall Street Journal included an article that focused on the impact of the mortgage market dislocation on several large corporate credit unions including Southwest Corporate. I would like to comment on the Wall Street Journal article as well as provide an update of our communication plans regarding the market dislocation’s impact on Southwest Corporate.
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Wall Street Journal Article
Like a similar article published earlier this summer in the American Banker, the Wall Street Journal article focused on the unrealized losses recorded by Southwest Corporate and other corporate credit unions that have invested in residential mortgage-backed securities (RMBSs). The main impact of Southwest Corporate’s RMBS investments is the balance of unrealized losses recorded within the balance sheet caption accumulated other comprehensive losses.
The overall credit quality of Southwest Corporate’s RMBSs remains high as all of our RMBS holdings are paying as expected and the overwhelming majority are rated AAA. Each month we are performing detailed credit analyses and projections on individual RMBSs as well as obtaining third party confirmation of our credit assessments. These credit analyses support our belief that the quality of our mortgage investments remains high.
The market dislocation primarily reflects a lack of liquidity in the RMBS market. In other words, there is little demand for RMBSs given general uncertainty about mortgage performance, and this lack of demand has resulted in declining values. However, our credit analyses clearly indicate that the intrinsic value of our mortgage investments remains far in excess of the reported values comprising our unrealized losses.
This overall assessment should come as no surprise to any of our members who have reviewed our previous publications and financial reports, or have listened to our webinars. The Wall Street Journal article really did not present anything new related to Southwest Corporate. We have been communicating the same facts and assessments to our members for almost a year.
Updated Communication Plans
Southwest Corporate has continually increased the level of information and the frequency of communications to our members concerning the impact of the market dislocation. We are constantly evaluating the adequacy of our information flow to our members.
In light of the increased media focus as well as the recent NCUA Letter to Credit Unions that reminded credit unions of the need for due diligence, we once again plan to expand our communication efforts with the following additional steps.
1. Increasing the frequency of quarterly financial webinars—they will now be held monthly.
2. Scheduling in-person presentations to our membership to supplement our webinars and provide the opportunity for expanded discussion. The schedule and locations of these presentations will be announced over the next few weeks.
3. Focusing on the impact of the mortgage market during the upcoming annual Economic Forum as a venue to share updated information about the impact on Southwest Corporate.
4. Providing forward-looking assessments of the mortgage market impact during our upcoming webinars and in-person meetings.
Conclusion
Southwest Corporate’s consistent message throughout this market event has been that our asset quality remains high despite the low reported “fair values” of our securities. We believe those reported values are a reflection of a dramatic lack of liquidity in the mortgage-backed securities market and do not reflect the underlying value of the assets. We believe any losses we realize will be manageable. Finally, we have stressed our continued strong earnings and related retained earnings growth.
The purpose of our ongoing communications efforts is to clearly explain to our members why we believe our asset quality remains high, and why we believe any losses we experience will be manageable and therefore not represent a credit concern for our members.
Southwest Corporate has been meeting the needs of its members for over 30 years due to the strong level of support provided by its members. The goal of our ongoing communication efforts is to be as transparent and informative as possible, thereby maintaining your confidence in and your continued support of Southwest Corporate. This goal is paramount. Southwest Corporate needs and appreciates your continued support.
Please don’t hesitate to contact me or the following individuals if you have any questions concerning the mortgage market developments and the impact to Southwest Corporate.
John Cassidy, President, CEO
214.703.7800
Bruce Fox, Executive Vice President, Chief Investment Officer
214.703.7850
Melissa Wardell, Senior Vice President, CFO
214.703.7890
Compass program helps improve productivity
The Compass Leadership Series is a 12-Month program with interactive workshops that you can start at any time. The full program is designed to improve personal productivity and the ability to lead others.
Each 4 hour workshop is $269. Or for the greatest learning opportunity and best value register for the 12-month program and save over $350! The cost of the 12-month program is $2,850. The Compass program includes:
• Over 48 hours of classroom learning
• E-learning classes
• Workbooks
• On-going coaching
• Best practices, on-the-job application
A certificate of completion will be presented to registrants who complete the training.
Courses are held at the CUANM Learning Center, 4200 Wolcott Ave. NE, Albuquerque, NM 87109.
The Compass Leadership Series is a cooperative partnership with Gemini Business Performance Solutions.
Instructor: Jo Dee Martinez
Jo Dee Martinez has been an active participant and student in business for over 20 years. She has a masters degree in business administration with an emphasis in technology management. Jo Dee is currently the owner of Gemini Business Performance Solutions, an organizational development and consulting business that focuses on developing high performance organizations.
For workshop descriptions, please visit http://www.cuanmlearningcenter.org.
About Gemini:
For over two decades, Gemini training programs have been successfully deployed in organizations large and small. The curriculum is relevant and has been proven effective in developing leaders to take on the challenges in today’s business environment. Training programs are delivered in open forum events, customized in-house programs and online training.
Risk managers list common scams
Tellers can be a strong line of defense against fraud
Fraud, con games, scams, and other criminal activities pose a daily threat to financial institutions. Some marvel at the ingenuity of these criminals. But until you’ve been at the losing end of the transaction, it’s difficult to feel the impact on members’ finances and lives.
The following are a few of the top scams currently targeting credit unions and members, according to CUNA Mutual Group’s risk managers:
• Counterfeit money orders and bank/credit union checks with high quality paper, graphics, and printing used to obtain funds from unsuspecting members.
• Several forms of overpayment by check—typically for several thousand dollars—with a request to wire-transfer the excess to another financial institution. These scams often begin on the Internet. Another form of this scam, called the “secret shopper,” involves members being asked to cash a check at their own bank/credit union and then wire the funds back to the scammer.
• Mailings telling members they’ve won the “International Lottery” and are now required to pay taxes and/or fees to claim their winnings.
• Funds transfer scams involving large HELOCs. Posing as a member, the fraudster requests large-dollar draws to be wire-transferred to other financial institutions. To prepare, fraudsters often request a change in the member’s callback phone number, and later request various account information that will help them impersonate the member.
The good news is, credit unions can often thwart these scams. Start by staying in touch with current scams. An excellent resource is CUNA Mutual’s RISK Alert program which provides just-in-time emails that include fraud headlines, brief summaries, and a direct link to loss prevention recommendations. (See sidebar.)
Fraud prevention tips for tellers
Training is critical, especially for front-line employees such as tellers, who play a pivotal role in deterring fraud. Here are some techniques and ideas for detecting a scam before it causes a loss to the credit union or a member:
• Trust your instincts when something seems out of the ordinary. If it looks like a duck, walks like a duck, and quacks like a duck . . .
• Don’t be afraid to ask questions. Explain to members that you’re not doing so to inconvenience them, but to ensure that their finances are secure and protected.
• Review the member’s account history and average balances to help identify unusual and suspicious transactions.
• Always know and follow your credit union’s policies and procedures (e.g. check holds and member verification). Good habits are easy to follow and hard to break. Also, your members will learn to expect them.
• Seek training in how to spot counterfeit checks and forgeries. Discuss best practices with your supervisors, branch managers, and office peers.
Fraud perpetrators continue to refine their methods of compromising and draining accounts—always trying to stay under the radar. They are experts at blending in as they accumulate credentials, identities, and eventually assets.
The first mistake credit unions make is believing that it hasn’t or won’t happen to them. It happens everywhere.
For more risk management information and access to CUNA Mutual’s Protection Resource Center, a comprehensive suite of educational resources, visit http://www.cunamutual.com or contact your CUNA Mutual Sales Executive at 800-356-2644.
Get e-mail alerts as new scams hit the market
Scam artists continually deploy new techniques and new frauds to extract money from credit unions and members. In the face of such “innovation,” it’s essential for credit unions to keep abreast of the latest scams and fraudulent activity.
CUNA Mutual’s RISK Alerts program serves as an online resource for the latest fraud-related information. Sortable by date or topic, the program allows you to track emerging threats and provides recommendations to help your credit union best protect itself from new risks.
Even better, you can subscribe to receive RISK Alerts e-mails featuring headlines and summaries of the latest protection news. Access to RISK Alerts is included as part of CUNA Mutual’s Credit Union Protection Resource Center, an online repository of protection and risk management information.
CUNA Mutual customers may visit the Protection Resource Center by logging in at http://www.cunamutual.com.
BOND-0608-F577
© CUNA Mutual Group, June 2008
JMFA offers free net operating analysis
BAYTOWN, TX (July 24, 2008) – John M. Floyd & Associates (JMFA) is offering Credit Union Association of New Mexico members a way to identify opportunities for increasing efficiencies and maximizing profitability in today’s increasingly competitive market with a free online Net Operating Analysis.
“In today’s challenging economic environment, many credit unions are looking for ways to sustain profitability and improve performance,” said Ron Jennings, JMFA executive sales director. “The JMFA Net Operating Analysis is an easy-to-use tool that helps them determine how they can lower operating expenses and increase their income, in addition to giving them the ability to compare their performance with their competition.”
The analysis worksheet focuses on four main components of a credit union’s profitability – Net Operating Assets, Non-interest Income, Net Operating Cost and Salary and Benefits Costs. The resulting information allows leadership to see for themselves where improvements are needed in their credit union, ranging from workflow for key operations to staffing and salary administration. Plus, it enables them to compare their institution’s results with up to five competitors, at the state or national level.
“A credit union’s ability to compete in today’s economic environment is determined by its net operating cost structure,” Jennings continued. The JMFA Net Operating Analysis gives institutions a no-cost way to determine how they compare and a map for identifying ways they can improve their performance.”
CUANM members who are interested in learning more about the free, online JMFA Net Operating Analysis, or recommendations on how to use the resulting data to make improvements in their credit union, should contact James Atwood, JMFA regional director for New Mexico credit unions, at