Yes! Your money is safe at your credit union
CU funds federally insured
Albuquerque NM – New Mexico credit unions, which count over 615,000 members and hold nearly 17 percent of our state’s financial market share, are going largely unmentioned in the adverse financial headlines for a reason.
Historically, credit unions operate more conservatively and tend to hold more of their mortgage loans (about 70 percent nationally) in portfolio rather than sell them to Fannie Mae and Freddie Mac on the secondary market. And credit unions, as member-owned, not-for-profit cooperatives, are not out seeking ways to shore up lost profits by adding fees or pushing products that aren’t in the best interests of members.
“We want consumers to know that credit union accounts are federally insured through the National Credit Union Share Insurance Fund (the credit union equivalent to FDIC, administered through the National Credit Union Administration) to at least $100,000. In New Mexico, 100 percent of credit unions are insured under this program,” said Sylvia Lyon, president and CEO of the Credit Union Association of New Mexico.
The very existence of the credit union movement can be directly tied to another definitive economic situation – the Great Depression. People wanted to have a stake in their financial institution and the cooperative structure of credit unions (where every member has ownership and a vote) was born. Today we are seeing many people coming to credit unions to find a way to refinance non-traditional mortgages and put their money in a stable source offering good rates. Savings at credit unions have actually grown nearly 7 percent this year.
For information on NCUA Share Insurance, visit: the NCUA Web site.
Facts about credit union deposits
AmericasCUssecurestrongfed.pdf
NCUA's Johnson: NCUSIF strong at mid-year
NCUA Chairman JoAnn Johnson yesterday issued a statement on the mid-year assessment of the National Credit Union Share Insurance Fund (NCUSIF) and said the fund stands strong with an equity ratio estimated at 1.24% for June 30.
Johnson reminded that member deposits in federal and almost all state-chartered credit unions are federally insured by the NCUSIF, which in turn is backed by the full faith and credit of the United States government.
“Consumers who have federally-insured funds in credit unions should rest assured that their deposits are safe up to at least $100,000 per account, with additional coverage of up to $250,000 for certain retirement accounts,” Johnson said.
She added that the fund’s equity ratio is expected to increase to 1.285 by yearend.
With reports of customers lining up at California’s IndyMac bank to withdraw their funds after the FDIC took control of the bank this weekend and consumer confidence in the banking industry sliding downward, credit unions should continue to remind members that their deposit accounts our safe. NCUA’s brochure, How Your Accounts are Insured, explains the NCUSIF coverage for members. The brochure is available at www.ncua.gov.
Fryzel Confirmed as NCUA Board Chairman
On June 30, the U.S. Senate confirmed Michael Fryzel to replace JoAnn Johnson as chairman of the three-member NCUA board.
In a statement, Fryzel said, “As with the President’s decision to nominate me to the board of the National Credit Union Administration and confer the high honor of Chairman, I am deeply honored by my U.S. Senate’s confirmation. In preparing to assume office, I want to reiterate the priorities stated during my recent Senate Banking hearing: vigilant and thorough supervision, emphasis on safety and soundness, and dedication to protecting the consumer. The credit union industry, now entering its second century, has proven itself valuable to America’s consumers and as such has a right to expect fair, consistent, common-sense regulation. It is my commitment to conduct my chairmanship in that manner.”
Fryzel served at the Illinois Department of Financial Institutions from 1977-1989, heading the agency from 1982-1989. After leaving, Fryzel founded the Law Offices of Michael Fryzel, which specializes in financial regulatory and real estate law. Photograph provided by CUNA.
CUANM June 2008 newsletter
cuanm_e-newsletter_june_2008.pdf
CUBTRRA passes House
WASHINGTON (6/25/08)--The full House of Representatives last night passed a comprehensive financial regulatory relief bill which eases field of membership and member business lending (MBL) restrictions in underserved areas for credit unions.
The bill, known as the Credit Union, Bank and Thrift Regulatory Relief Act (CUBTRRA, H.R. 6312), passed by a voice vote after it was placed on the House Suspension Calendar. Such action is reserved only for non-controversial legislation.
CUNA President/CEO Dan Mica thanked U.S. Reps. Paul Kanjorski (D-Pa.), Ed Royce (R-Calif.), Financial Services Committee Chairman Barney Frank (D-Mass.) and Ranking Member Spencer Bachus (R-Ala.) for “working with us to attain regulatory relief for the nation’s credit unions.”
“This measure holds a number of substantive elements that will serve our members well,” said Mica this evening. “Now it is on to the Senate to ask for its consideration of the package.”
As its name suggests, the bill contains measures that would benefit credit unions, as well as banks and thrifts. Among provisions for credit unions, the bill proposes to:
• Allow all federal credit unions to apply to serve underserved areas, reversing the effect of a banker lawsuit that has prevented community and single-sponsor credit unions from reaching out to underserved areas;
• Provide increased MBL ability by exempting MBLs made in underserved areas from a statutory 12.25%-of-assets cap; CUNA estimates more than 40% of the nation’s census tracts are located in underserved areas;
• Grandfather previously approved underserved fields of membership for credit unions;
• Allow short-term payday loan alternatives within a credit union’s field of membership;
• Raise the current investment limit in credit union service organizations (CUSOs) and to 3% of unimpaired capital and surplus, up from 1%;
• Enhance the 2006 regulatory relief provisions that allowed the National Credit Union Administration (NCUA) to increase the 12-year maturity limit on non-real estate secured loans to 15 years, Section 104 would further permit the agency to issue regulations providing for loan terms exceeding 15 years for specific types of loans;
• Give the NCUA greater flexibility to respond to market conditions; and
• Clarify existing law that permits credit unions to participate in loan programs secured by the insurance, guarantees, or commitments of State or Federal governments, such as the Small Business Administration’s 504 program.
H.R. 6312 was introduced just last week by Reps. Kanjorski, Royce, and Dennis Moore (D-Kan.) and was backed by Chairman Frank.
Just as the credit union provision of the newly introduced legislation were based on the Credit Union Regulatory Relief Act (CURRA), the bank and thrift provisions also were based on a currently pending bill, the Bank and Thrift Regulatory Relief Act of 2008 (H.R. 5841), introduced in April.
Bank and Thrift Provisions
For commercial banks, the House bill proposes to allow the payment of interest on business checking accounts. For thrifts, CUBTRRA would remove the current caps on auto and business lending.
Left behind from that bill, however, were sections that would have allowed banks and thrifts to reorganize more easily as LLC or Subchapter S entities.
Some provisions benefit credit unions, as well as banks and thrifts. One example is the proposed change in Gramm-Leach-Bliley privacy notification requirements, according to CUNA Legislative Affairs Vice President Ryan Donovan.
Under this bill, financial institutions would not be required to send annual privacy notifications under certain circumstances if it has not changed its policies and practices with respect to disclosing nonpublic personal information since its last disclosure.
Next Steps
The bill faces a tougher road in the Senate, according to Donovan.
“The Senate just is not as far along in the process as was the House, but we will continue to make our case there,” the CUNA lobbyist said.
Both the House and Senate adjourn at the end of this week for a July 4 District Work Period and will return to session the week of July 7.
Despite the positive development, Mica emphasized CUNA was not finished in seeking more flexibility for credit unions in serving their members.
“We will continue to push for risk-based capital through reform of prompt corrective action (PCA) requirements,” he said. “And we strongly believe credit unions should have the power to offer more business loans to their members.”
The CUNA leader said the association would pursue----both in this Congress and the next--provisions contained in the Credit Union Regulatory Improvements Act (CURIA, H.R. 1537), which propose a higher cap on member business lending, as well as prompt corrective action reform.
NCUA Reaction
After the vote, NCUA Chairman JoAnn Johnson encouraged the Senate to build upon the solid start made by the House and consider “reasonable and important enhancements such as reform of the system of Prompt Corrective Action coupled with the institution of a Risk-Based Capital regime.”
She also urged the Senate to “increase consumer protections for credit union members during their consideration of a proposal to convert to another type of financial institution, and the modernization of credit union merger procedures covered by the Clayton Act.”
CO-OP Financial Services to match CMN funds
CO-OP Financial Services Creates $1 Million Matching Funds Program For Children’s Miracle Network
New Community-Focused Program Expands CO-OP’s Annual Contributions to Nearly $2 Million for the Charity
On behalf of Children’s Miracle Network, CO-OP Financial Services has created a $1 million matching funds program to encourage credit unions to participate in local fundraisers, according to CO-OP President/CEO Stan Hollen.
“CO-OP is always looking for innovative ways to assist Children’s Miracle Network and Credit Unions for Kids,” says Hollen. “By matching credit union contributions at the local level, we hope to create new fundraising opportunities for CMN children’s hospitals and see our annual $1 million donation multiply.”
Children’s Miracle Network is a non-profit organization dedicated to saving and improving the lives of children by raising funds for children’s hospitals. Each year the 170 Children’s Miracle Network hospitals provide medical care, life-saving research and preventative education to help millions of kids overcome diseases and injuries of every kind.
The Miracle Match Program has two distinct goals:
* Encourage credit unions to expand or develop a partnership with their local Children’s Miracle Network hospitals in an effort to raise new, incremental dollars.
* Substantially grow CO-OP’s $1 million dollar investment to help children’s hospitals serve an even greater number of sick and injured children.
Miracle Match Parameters
New events/activities or current events/activities that aren’t presently supported by CO-OP are open for the Miracle Match Program. The Miracle Match Program excludes existing events already receiving CO-OP support. Credit unions are eligible to receive one match per calendar year. (Credit unions with branches in multiple markets are eligible for one match per market.) Funds raised for Children’s Miracle Network will initially be matched dollar for dollar up to $10,000. Any fundraising effort exceeding $10,000 will be matched as follows:
* CO-OP will match $10,000 for funds raised between $10,000 - $49,999.
* CO-OP will match 20% of the total funds raised for amounts of $25,000+ (up to $25,000 matched).
Match will be determined based on the net proceeds to the hospital from the event/activity.
Entering its third year as the national corporate sponsor for the Children’s Miracle Network “Champions Across America” program, CO-OP sought to expand the dollars they already donate to stimulate new credit union giving for the organization. In addition to “Champions,” CO-OP runs two annual golf tournament fundraisers, sponsors dozens of additional credit union events around the country, participates in an employee giving program and a percentage of each CO-OP Network ATM transaction is donated to Children’s Miracle Network hospitals every year.
“The credit union movement and Children’s Miracle Network are guided by the same cooperative spirit and tradition of ‘people helping people,’ and CO-OP is proud to annually contribute nearly $2 million to such a worthy cause,” says Hollen. “The 17 million kids being treated at the hospitals have been confronted by more adversity in their short lives than most people will ever encounter. It’s an honor to be the largest credit union system contributor within a movement that has contributed more than $50 million to CMN through the years.”
Go to the CO-OP Miracle Match page for details and downloads.
Southwest Corporate surpasses 1,500 branches
Dedicated implementation team helps keep service ahead of goal
Plano, Texas - Processing paper checks offers a number of challenges for multi-branch credit unions; challenges that Southwest Corporate is helping them to overcome—quickly. Although it introduced remote deposit services a scant three years ago, Southwest Corporate Federal Credit Union has just surpassed a significant milestone: 1,500 credit union branches and 400 credit unions now have made the corporate their remote deposit service provider.
Brad Ganey, Southwest Corporate’s Vice President of Item Processing, noted that the corporate achieved its goal of 1,500 credit union branches months ahead of schedule. “Credit unions have embraced this technology wholeheartedly. Another reason for the accelerated achievement of this goal is our dedicated implementation team,” said Ganey.
Southwest Corporate provides electronic image capture and real-time transmission of deposits to its item processing center for credit unions from Hawaii to Puerto Rico.
But it was a credit union with seven branches in and around Houston that help Southwest Corporate pass this most recent milestone. Primeway Federal Credit Union’s main office is located in downtown Houston. The distance to each of its branch offices ranges from just a few miles to 75 miles away in Brenham, Texas. Remote deposit, the electronic imaging and processing of checks, has enabled the credit union to shorten timeframes and eliminate costs imposed by these logistics, according to Vicki Squires, Primeway Vice President of Office Operations.
“Operations are definitely more efficient, especially with our outlying branches. Items are moving into the processing stream faster. Before, our Brenham branch would send checks to Houston for encoding one day and the following day the checks would be sent to the Fed. That’s too long. Now when we have an item with a two-day hold, it actually enters the system for processing before the hold expires,” said Squires.
Primeway opted to implement Southwest Corporate’s “Teller Capture” solution, which incorporates a check scanner at each of the credit union’s approximately 30 teller workstations. Tellers can process checks as they are accepted instead of at day’s end.
The decision has considerably improved employee quality of life, according to Squires. “Tellers close much faster, because they don’t handle encoding anymore and most of the processing is done before the end of the day. Plus, they don’t have to wait on the courier to arrive. We’ve saved money on courier charges, too,” added Squires. “One branch closes at 7 p.m. That gets expensive.”
Remote deposit technology has given Primeway tellers the ability to resolve problems faster. Instead of waiting for research to return from the main branch, tellers now can look up items on their own computers.
“Just having the history of items at every workstation has been a big benefit, said Squires. It improves tellers’ ability to make hold decisions. Research is no longer exclusively management’s responsibility. Operations losses have been significantly reduced.”
In addition to Teller Capture, Southwest Corporate’s suite of remote deposit services also includes Branch Capture and Business Capture. For more information, visit www.swcorp.org or contact a representative at 800-442-5763.
About Southwest Corporate
Southwest Corporate Federal Credit Union is a $14 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, ATM/debit card services, and correspondent services.
CUNA Mutual expands European operations
New European Headquarters opened May 1 in Dublin, Ireland
DUBLIN, IRELAND – CUNA Mutual Group’s International Division announced an expansion of its European operations, as it opened new European headquarters in Dublin, Ireland May 1.
Ireland’s Minister for Innovation Policy Michael Ahern officially opened CUNA Mutual’s new office. “We are delighted that CUNA Mutual chose Ireland to be the hub of its European operations,” Ahern said.
The expansion of CUNA Mutual’s International Division comes near the end of a three-year transformation effort at CUNA Mutual. The company is pursuing growth opportunities within its traditional credit union market and new ventures outside the credit union space.
“With the opening of this office, we’re positioning for the future,” said Sue Albrecht, senior vice president of international business at CUNA Mutual. “We’re energized to grow and make a difference around the world by providing people with access to financial well-being.”
CUNA Mutual has been pivotal in the establishment of the credit union movement throughout Europe. CUNA Mutual, headquartered in Madison, Wis., also has international operations in Canada, Australia, Korea and Latin America.
“We see great opportunities for growth for CUNA Mutual in the European market,” said CUNA Mutual President & CEO Jeff Post during the grand opening ceremonies. “We believe the values and characteristics that contributed to our growth in the U.S. and other countries will serve us well in this part of the world.”
CUNA Mutual Group is a leading provider of financial services to credit unions and their members. With more than 70 years of market commitment, CUNA Mutual’s vision is unwavering: to be a trusted business partner who delivers service excellence and customer-focused, best-in-class products and market-driven innovation. More information on the company is available on the company’s Web site at http://www.cunamutual.com.
JMFA offers free trial of FraudMANAGER
John M. Floyd & Associates (JMFA) has announced that it will offer a free 90-day trial of its innovative, browser-based fraud protection program JMFA FraudMANAGER, to Credit Union Association of New Mexico members.
“With every new payment mechanism introduced to the financial services industry, the potential risk of transaction fraud and loss increases for credit unions,” said Steve Swanston, JMFA Executive Vice President. “JMFA FraudMANAGER combines intelligent evaluation and authentication capabilities to protect credit unions from not only traditional check fraud, but also from new forms of fraud that are emerging with the arrival of electronic transactions, including ACH and remote deposit transaction fraud.”
JMFA FraudMANAGER is a proactive solution that evaluates every incoming check and ACH transaction flagging potential counterfeit checks, forgeries, unauthorized drafts, and unusual payment activity – all on the same day the transaction is received, enabling users to return most fraudulent items within the 24-hour returns window.
The JMFA FraudMANAGER program fills a crucial need within the industry – detecting potentially fraudulent transactions on the day they are presented from external sources. This gives credit unions the opportunity to find the items before they have entered the system and resulted in potential losses for both the institution and its members.”
CUANM members who are interested in learning more about the free 90-day trial of the JMFA FraudMANAGER program should contact Kelly Flynn, JMFA Sales Director of Fraud Solutions at 877-648-2552 or by email at Kelly.Flynn@JMFA.com
.
# # #
About JMFA:
John M. Floyd & Associates (JMFA) is a profitability and performance improvement consulting firm, serving more than 2,000 financial institutions in all 50 states and Central America. JMFA is also recognized for training, account acquisition, executive placement, fraud protection solutions and earnings enhancement programs, as well as product, service, pricing and technology improvement consulting. As a direct result of our programs, JMFA has helped thousands of clients dramatically improve their performance and their bottom line. To learn more about JMFA please visit www.JMFA.com or call 800-809-2307.
Senate version of CURIA introduced
Lieberman introduces S. 2957
WASHINGTON (5/2/08)--Sen. Joseph Lieberman (I-Conn.) introduced a Senate version of the Credit Union Regulatory Improvements Act (CURIA, S. 2957) Thursday, putting the key credit union legislation a giant step forward in the legislative process.
The Credit Union National Association (CUNA) lauded Lieberman’s action saying the senator has “demonstrated determination and conviction in his support for consumer-owned credit unions” by introducing his bill.
CUNA President/CEO Dan Mica said, “Through his action, consumers have the hope of more choices in services, as well as the promise of continued strength, for the credit unions that they own and direct.
“Our sincere thanks and gratitude to Sen. Lieberman. We look forward to working with him, and other senators, as this important legislation gains support and eventual passage in the Senate,” said Mica.
Click to view larger image U.S. Sen. Joe Lieberman (I-Conn.), left, and CUNA President/CEO Dan Mica backstage before Lieberman addressed the March 6 closing closing general session of the 2008 CUNA Governmental Affairs Conference in Washington. (Photo provided by Robert Knudsen)
It was at the CUNA Governmental Affairs Conference in March that Lieberman said he recognized the importance of the Credit Union Regulatory Improvements Act to credit unions and pledged to be an original sponsor of a Senate version of H.R. 1537. The House bill currently sports the names of 149 members of the House as its official sponsors.
Among changes proposed by the bill, which is substantively identical to the House version, CURIA would:
* Clarify the 1998 Credit Union Membership Access Act to allow all credit unions, regardless of charter type, to serve those in underserved areas. The bill would also update the definition of an underserved area, incorporating definitions from the Community Development Financial Institutions Act and the New Markets Tax Credit;
* Increase the current cap on loans to members for business purposes (MBLs) from 12.25% to 20% of assets, allowing credit unions to assist more members start and expand small businesses and to promote economic growth. The bill would also exempt loans under $100,000 and those to nonprofit religious organizations from the MBL calculation;
* Establish additional consumer safeguards in the event of a credit union conversion to another form of financial institution; and
* Reform the National Credit Union Administration’s original prompt corrective action system to a risk-based approach more closely resembling the current Federal Deposit Insurance Corp. capital standard for banks.
Silver Star Gala June 6
6 P.M. - Cocktails/Cash Bar
7 P.M. - Dinner and Entertainment
$75 per person
This year’s Silver Star Gala marks the fourth year that the Credit Unions in New Mexico have continued to raise $1 million over a five year plan for a new 24-hour pediatric emergency unit at UNM Children’s Hospital. So far, credit unions have raised more than $649,000. The state-of-the-art pediatric emergency unit opened in 2007, and provides the highest level of care by some of the top pediatric specialists in the nation. UNM Children’s Hospital treats more than 57,000 children and premature infants a year from every county in New Mexico, including 98 percent of New Mexico’s child cancer patients. Keeping with the credit union philosophy of helping our members and the communities they live in, The Credit Union Association of New Mexico and New Mexico’s credit unions are proud to support this important project. Join us for a fun filled evening as we continue to fully equip the pediatric emergency unit.
For more information, go to the CUANM Web site.
JMFA announces new contract cost reduction service
JMFA’s new service helps financial institutions realize dramatic savings on vendor contracts
Baytown, TX (April 23, 2008) – John M. Floyd & Associates (JMFA) has announced an exclusive partnership with Discovering Money in Networks (DMi Networks). JMFA and DMi Networks are teaming together to offer financial institutions a service designed to optimize contracts and agreements for processing and technology services. DMi
Networks has achieved a 98 percent success rate in reducing processing and technology costs for its clients, saving them in excess of $24 million since its inception in 2003.
As a profitability and performance improvement consultant, JMFA helps financial institutions improve their operations and ultimately their bottom line. “Given the squeeze on margins that all financial institutions are experiencing today, we have been concerned by our clients’ need for help in reducing operational expenses,” said Steve Swanston, Executive Vice-President of Business Development for JMFA. “So we have tapped DMi Networks to help us provide a program that positively addresses those challenges.”
With JMFA’s new Contract Cost Reduction Service – which is offered risk-free – financial institutions get expert advice on such issues as pricing, service, support, and
terms and conditions related to proposals, contracts and agreements on their major processing and technology services. Ultimately, the goal is for the financial institution to lower the cost of its contracts while increasing the level of service it receives.
The contract negotiation services include the following:
• ATM/debit card processing contracts;
• Check vendor contracts;
• Core data processing contracts (service bureaus only);
• Internet banking contracts;
• Telecommunications contracts;
• Image/item processing contracts; and
• Much more.
“Because JMFA has built such an excellent reputation with banks and credit unions over the past 35 years – and they serve clients in all 50 states – we are excited to team up with them to provide our extraordinary savings solutions to financial institutions across the country,” said James R. Cullen, the CEO and founding principal of DMi Networks. “JMFA has the industry star power to allow our service to do the greatest amount of good.”
Cullen has over 30 years experience within the financial industry and as a contract negotiator, first for NCR Corporation and then for AT&T.
About John M. Floyd & Associates (JMFA)
John M. Floyd & Associates is a profitability and performance improvement consulting firm and a leading provider of overdraft privilege programs serving more than 2,000 financial institutions in all 50 states and in Central America. JMFA is also recognized for fraud detection, training, account acquisition, executive placement and earnings enhancement programs, as well as product, service, pricing and technology improvement consulting. As a direct result of its programs, JMFA has helped literally thousands of clients dramatically improve their performance as well as their bottom line. To learn more about JMFA, visit www.JMFA.com
CUANM Network newsletter April 2008
In this month’s CUANM Network newsletter…
• GAC 2008
• Scholarship winners
• CMN pledges
• Harland Clarke
• Biz Kid$
And much more...
cuanm_e-newsletter_april_2008.pdf
Scholarship winners announced
$48,000 in scholarships awarded
The New Mexico Credit Union Education Foundation recently awarded a total of $48,000 in scholarships to 80 students in New Mexico for the 2008-2009 school year. Each scholarship recipient received $600. Applications from more than 400 students were received.
Funds for the scholarship are provided by Credit Union Association of New Mexico member credit unions that turn over funds from dormant accounts to New Mexico CUEF to be used for scholarships, instead of to the state. CUANew Mexico administrates the scholarships.
Applicants must be New Mexico residents and meet a number of requirements, including grade point average and full-time enrollment. Many recipients are reapplicants.
Students may use the scholarship at any accredited vocational or technical school, college or university in New Mexico.
Since it was established in 1992, the New Mexico Credit Union Education Foundation has grown in both credit union membership and funds contributed. The purpose of the Foundation — the only one of its kind in the country — is to allow credit unions to use their abandoned funds for educational or charitable purposes through an established statewide foundation. As a nonprofit corporation, the Foundation is designed to foster educational opportunities in New Mexico.
Recipients of the scholarships and their schools by hometown are:
Alamogordo
John Davisson — New Mexico State University
Kattie Dean — University of New Mexico
Kalie Geary — New Mexico State University
Cheryl A. Slone-Rodgers — New Mexico State University
Albuquerque
Lauren Cala — University of New Mexico
Katrina J. Cuoco (Jorgensen) — Central New Mexico Community College
Lindsay Ann Campbell — University of New Mexico
Victoria Dobbin — The Art Center Design College
Sharla Frazier — Central New Mexico College
Delana M. Gonzales — University of New Mexico
Michael A. Hunter — University of New Mexico
Xiaoshen Jin — University of New Mexico
Dennis M. Magee Jr. — University of New Mexico
Paula M. Mintle — University of New Mexico
Talal Saint-Lot — University of New Mexico
John Sanchez — University of New Mexico
Samantha Jo Soto — University of New Mexico
Matthew Spinks — University of New Mexico
Melissa Tafoya — New Mexico Highlands University-Rio Rancho
Alcalde
Candida L. Martinez — University of New Mexico
Eugenia Trujillo — Northern New Mexico College
Arrey
Monica R Bencomo — University of New Mexico
Artesia
Adriana Gonzales — University of New Mexico
Bayard
Jacqueline Muniz — New Mexico State University
Bosque Farms
Dorian J. McKenzie — University of New Mexico
Carlsbad
Cassandra Marrs — Eastern New Mexico University
Veronica M. Schrock — New Mexico State University
Carrizozo
Nicole A. Nava — New Mexico State University
Casa Blanca
Monika A. Honeyestewa — University of New Mexico
Chacon
Vanessa Valencia — Central New Mexico College
Chama
Matthew Archuleta — University of New Mexico
Cloudcroft
Maggie Carter — St. John’s College
Clovis
Brenton C. Andes — Eastern New Mexico University
Logan Potts — New Mexico State University
Corrales
Steven E. Olona — New Mexico Tech
Dexter
Dustin D. Davenport — New Mexico State University
Vianey Miramontes — University of New Mexico
Edgewood
Amy Nicole Wenker — Central New Mexico Community College
Elephant Butte
Rachel I. Powell — University of New Mexico
Española
Tamara L. Gallegos —Northern New Mexico College
Robin Montoya — New Mexico Institute of Mining and Technology
Estancia
Wendy Stokes — Eastern New Mexico University
Farmington
Clifford Harris Jr. — San Juan College
Flora Vista
Tina Joyner — University of New Mexico
Hernandez
Isaac J. Garcia — Northern New Mexico College
Hurley (North)
Diane Ortega — Western New Mexico University
Las Cruces
Ron A. Garcia — New Mexico State University
Bethany L. Fritz Hufferd — New Mexico State University
Larry Erik Munoz III — New Mexico State University
Nick L. Marcoux — New Mexico State University
Los Alamos
Jessica Huff — Eastern New Mexico University
Los Lunas
Jeremiah McElroy — University of New Mexico-Valencia
Lovington
Bridgette Davis — New Mexico Junior College
Mora
Sonya Martinez — New Mexico State University
Ojo Caliente
Ashley Gallegos — Northern New Mexico College
Organ
Mellissa Lynne Burk — New Mexico State University
Peñasco
Monique F. Visarraga —Northern New Mexico College
Piñon
Sherida Elkins — New Mexico State University
Portales
Tanner E. Nygren — Eastern New Mexico University
Tom Sullivan — University of New Mexico
Ranchos de Taos
Danielle Lee Griego — University of New Mexico
Rio Rancho
Lindsay McGhee — Central New Mexico College
Jennifer Parton — University of Phoenix
Roswell
Elizabeth A. Gilcrease — Eastern New Mexico University
Elizabeth Mysza — University of New Mexico
Santa Fe
Alicia Armijo — University of New Mexico
Ryan D. Baca — Capital High School University of New Mexico Santa Fe
Esperanza Rodriguez — Northern New Mexico College
Joseph N Romero — University of New Mexico
Molly Rose-Cross — New Mexico State University
Moises Solis — Santa Fe Community College
Socorro
Amy R. Smythe — Eastern New Mexico University
Tierra Amarilla
Tessa Polaco — New Mexico State University
Truth or Consequences
Tyler X. Long — Western New Mexico University
F. Mario Trujillo — University of New Mexico
Tucumcari
Danny Gregory Benavidez, Jr. — Mesalands Community College
Clay D. Beevers — New Mexico Tech
Rusty Dwayne Brake — Mesalands Community College
Tularosa
David Walters — New Mexico State University-Alamogordo
Willard
Jerra McMath — New Mexico State University
Southwest Corporate launches Business Capture
Webinars to explain enhanced efficiencies and cost-saving benefits
Dallas—To help credit unions attract and better serve a growing number of business members, Southwest Corporate Federal Credit Union will launch its new Business Capture service beginning March 31.
Business Capture adds to the cutting-edge check collection suite of Remote Deposit Services already offered by Southwest Corporate—all designed to help credit unions reduce costs and operate more efficiently.
To help credit unions become more familiar with the benefits of Business Capture, Southwest Corporate is scheduling an hour-long webinar held three times over the coming two months. Dates for the webinars are:
Monday, April 7 at 2 p.m. Central Time
Friday, April 11 at 11 a.m. Central Time
Wednesday, May 21 at 1 p.m. Central Time
There is no charge to participate in the webinar, which will feature live demos and experts on hand to answer specific questions, however it is necessary to register in advance. Registration will be available beginning Friday, March 28th at www.swcorp.org.
“This is a service that many credit unions will find useful as they try to attract more and more business members,” said Jody Beck, Senior Vice President of Operations for Southwest Corporate.
“Employing Southwest Corporate’s Business Capture service will allow credit unions to help minimize—or even eliminate—trips a member has to make just to deposit checks. It also helps expedite deposit collections and extends deposit deadlines,” Beck said.
Southwest Corporate’s Business Capture product is based on a year of development and testing, and incorporated active involvement by member credit unions to help shape the features and functionalities that are included. “We knew that this is going to be a high demand product, and now we are ready to put it into the market place,” Beck said.
The process for Business Capture is similar to Branch Capture and Teller Capture. However, with Business Capture, the check scanner is installed at a member’s business location, Beck explained. Software is downloaded and installed on the member’s computer that allows checks to be imaged and securely transmitted to Southwest Corporate for processing.
Imaged checks are cleared the most expeditious and least-cost method. Archived images can be accessed online.
“All this allows your members who run a business to spend more time doing what they do best, and less time running to the credit union to make deposits,” Beck said.
Credit unions receive full implementation, training, and ongoing support by a dedicated team of in-house specialists. For more information about Business Capture, contact a Southwest Corporate Account Executive at 1-800-442-5761, or e-mail .
—30—
(Southwest Corporate Federal Credit Union is a $14 billion Plano-based institution that serves the financial needs of nearly 1,500 member credit unions nationwide.)
Harland Clarke receives SAS-70 Type II audit recognition
SAN ANTONIO, TEXAS – March 20, 2008—Harland Clarke, a leading provider of integrated payment solutions, marketing services, technology, and business solutions to the financial services industry, recently received three AICPA SAS-70 Type II audits. The SAS-70 Type II audits verify that adequate controls and safeguards are in place for service organizations that have access to and process shareholder, client and customer data. The audits are widely considered the financial industry’s best practices standard, and are accepted and referenced by bank examiners, financial auditors and Securities and Exchange Commission (SEC) auditors. 
“The AICPA SAS-70 Type II audit is an integral part of Harland Clarke’s Corporate Information Security Program. The security controls are tested by an independent auditor, validating that security controls are in place and are functioning properly,” said John Petrie, chief information security officer at Harland Clarke, speaking on behalf of the security team.
Individual service auditor reports prepared in accordance with AICPA SAS-70 guidelines signifies that a service organization has had its control objectives and activities examined by an independent accounting and auditing firm. Identifying and evaluating relevant controls, the auditor gains an understanding of how a service organization provides transaction processing, data hosting, I/T infrastructure, or other data processing services, to its clients. The Type II report is more intense than a Type I report in that companies are required to provide descriptions of its controls as well as allow detailed testing of its controls during a minimum six-month period.
The Harland Clarke evaluation utilized a unique methodology to define the control activities and objectives, driven by several standards and regulatory requirements for information and physical security including the Gramm-Leach-Bliley Act (GLBA), the Sarbanes-Oxley Act (SOX) and the Federal Financial Institutions Examination Council (FFIEC). This methodology helps ensure that Harland Clarke’s information is secure and that the controls in place are those accepted and highly regarded by the financial services industry and federal regulators.
The benefits of receiving a SAS-70 Type II Audit recognition to a service organization is that the auditor’s report supports the building of trust with clients and their customers, and also helps to avoid the need to entertain multiple audit requests from other sources. This process identifies opportunities for improving operations within the service organization.
“A successful SAS-70, Type II audit, coupled with a successful Cybertrust® Enterprise Certification, provides documented verification that Harland Clarke has a mature Risk Management Program,” said Brad Wheeless, Senior Vice President, Administrative Services for Harland Clarke. “Our entire team works very hard to earn the trust of our clients in protecting the information of their customers.”
About Harland Clarke Corp.
Harland Clarke Corp. is a leading provider of integrated payment solutions, marketing services and technology solutions. It serves approximately 15,000 financial institutions, as well as major investment firms, business-to-business clients, small businesses, and individual consumers. With its corporate headquarters in San Antonio, Texas and a regional headquarters in Decatur, Georgia, Harland Clarke employs approximately 5,800 people and has manufacturing and contact center facilities nationwide. Harland Clarke Corp. is a wholly-owned subsidiary of Harland Clarke Holdings Corp., which is also the parent company of Harland Financial Solutions Inc. and Scantron Corporation. Harland Clarke Holdings Corp. is wholly owned by M&F Worldwide Corp. (NYSE:MFW).
CUANM March newsletter
• CUANM Campaign School in April
• 2007 fund-raising for CMN a success
• National Youth Week in April
• Participate in Project Zip Code
• Vishing new consumer threat
• Harland Clarke endorsement
• News from our credit unions
And more…
cuanm_e-newsletter_march_2008.pdf
CUANM continues Harland Clarke endorsement
The Credit Union Association of New Mexico is pleased to announce that it has renewed the endorsement agreement with Harland Clarke for another five years starting on July 1, 2008. CUANM is proud to continue its endorsement of Harland Clarke (Clarke American) and is confident that our credit unions and their members will continue to receive the excellent products, service and pricing they have come to expect over the past nine years.
CUANM based its decision on a number of factors: the extremely positive survey response from credit unions that use Harland Clarke as their business partner; the willingness of Harland Clarke to be a champion of the credit union movement and mission; the financial strength and forward looking vision of Harland Clarke; and the superb relationship that has developed over the past nine years between Harland Clarke and New Mexico credit unions.
You can expect that Karla Barela will be contracting your credit union shortly to present the program offerings. Please be assured that the agreement your credit union will be presented with is one that was carefully developed and shows the commitment that Harland Clarke has for the New Mexico credit union movement.
If you have any questions about the agreement or anything else please contact CUANM assistant vice president of Association Services Mike Athens at 298-9899 or 800-366-6628, extension 2234, or via e-mail at mike@cuanm.org .
White papers discuss creating teams environments, innovative products
MADISON, Wis. - Learn how credit unions can create and thrive in a team environment and about innovative new products in two new white papers from the CUNA Councils.
In today’s competitive environment, effective teamwork can provide a significant competitive advantage by putting the combined talents of individual credit union employees to work for a common purpose. “Thriving in a Team Environment: Leading the Finance Team to Support Credit Union Strategy” from the CUNA Chief Financial Officers (CFO) Council outlines how a CFO or manager can create and maintain a team environment and lead the finance team to support credit union strategy. The paper also addresses the broader aspects and applications of teamwork in credit unions, and the different skills that managers must foster to thrive in a team environment.
“Innovative Products That Generate Revenue” from the CUNA Operations, Sales, and Service (OpSS) Council discusses a number of product and service offerings that can help credit unions stand out in the financial services industry and attract new members. The paper contains credit union case studies for various products, including: payday lending alternatives, family credit cards, online savings, student loans, and more.
CUNA Council members are entitled to complimentary copies of these white papers; non-members may purchase the white papers for a price of $50 per copy. The papers are available online at http://www.cunacouncils.org; select the “Shared White Papers” link located in the “Shared Council Content” drop-down menu and select the “CFO” tab for the team environment paper, or the “OpSS” tab for the innovative products paper. From there, non-members should follow the non-member link to order.
About the CUNA Councils
The CUNA Councils are a national organization made up of over 4,400 credit union professionals from across the United States. Run by and for credit union executives, the councils target their networking, information, and programs to key areas of credit union management, that make up the six councils: the CUNA Chief Financial Officers (CFO) Council; the CUNA Human Resources, Training and Development (HR/TD) Council; the CUNA Lending Council; the CUNA Marketing and Business Development Council; the CUNA Operations, Sales and Service (OpSS) Council; and the CUNA Technology Council. For more information, go to http://www.cunacouncils.org.
Credit Unions Adopt Cost-Cutting Efficiencies Of Remote Deposit
Activities Double In One Year
DALLAS – The rapid-fire embrace of remote deposit services during 2007 has saved credit unions thousands of dollars. And as an increasing number of credit unions contemplate remote deposit services in 2008, millions of dollars hang in the balance.
_thumb.jpg)
Credit unions are being squeezed by increasing expenses related to the inefficiencies of dealing with paper checks and the courier costs for sending those paper checks for processing. At the same time, credit unions are discovering how remote deposit services produce cost-saving efficiencies.
“This past year has seen an explosion of adoption,” said Jody Beck, senior vice president of operations for Southwest Corporate Federal Credit Union. “And the prediction for the new year is that it will be even busier.”
As one of the nation’s largest payment services providers for credit unions, Southwest Corporate’s statistics help illustrate a nation-wide trend. A year ago, in November 2006, 134 credit unions had signed up for Southwest Corporate’s remote deposit service. Those 134 credit unions represented 548 branches, where remote deposit services were deployed. Now, about a year later, the number of credit unions choosing Southwest Corporate’s remote deposit service program has grown to 331, representing 1,177 branches in 27 states.
Transactions jumped as well—going from 2.5 million in November, 2006 to well over 5 million just one year later.
“This product essentially doubled during the past year,” Beck said. “And I think it is important to put these numbers in context--this is a service that didn’t even exist three-to-four years ago.”
With Southwest Corporate’s remote deposit service, check scanners are installed at the branches and tellers scan checks in batches throughout the day. The remote deposit software provides instant verification of image quality, balances the transactions and sends check images to Southwest Corporate, Beck explained. Data completion is handled on Southwest Corporate’s end, and the credit union no longer spends time and money encoding checks.
Beck said imaged checks are then cleared the most expeditious and least-costly method, and finally, images are archived for online member access via Southwest Corporate’s Internet gateway.
“Capturing deposit transactions at the point of entry has other advantages,” Beck said. Real-time processing facilitates faster identification of fraudulent activity and customer deposit errors. Digital storage of transactions reduces the opportunity for checks to become lost during transport and eliminates the need for microfilming.
“We were microfilming and endorsing items, not to mention having to bundle and log the checks to get them ready for the run,” said Terri Mickelsen, vice president of internal operations at First Financial Credit Union in Albuquerque, NM. First Financial Credit Union deployed Southwest Corporate’s remote deposit service just a year ago. “We were still pulling our own checks two years ago, so I feel like we’ve come a long way in a short time, Mickelsen said, “I wish I had pulled the trigger long before I did.”
Although the number of credit unions adopting remote deposit services has been significant since the beginning of the 2007, there is no backlog or needless delays for credit unions wanting to implement the service. In fact, credit unions can determine the implementation timetable. “Credit unions make the decision when it is convenient for them, and Southwest Corporate can meet that timetable,” Beck said. That credit union-oriented scheduling is possible because of Southwest Corporate’s dedicated Remote Deposit Implementation Team—a feature not available from all remote deposit providers.
“Our dedicated implementation team is credit union experienced and after launching the service with well over 250 credit unions, they have tackled and solved every possible problem—including putting several Louisiana credit unions onto the services within days of Hurricane Katrina’s devastation in New Orleans,” Beck said.
Southwest Corporate has its own “testing lab” to check software compatibility and integration as credit unions prepare to bring remote services online.
Remote deposit efficiencies help reduce operational expenses, including expenses related to courier services needed to transport checks from branch locations.
“Aside from increases related to rising gasoline prices, the cost per item of dealing with paper checks is rising as more and more people are writing fewer and fewer checks,” Beck said.
A just-released Federal Reserve study officially proclaimed what many have already witnessed.
The Federal Reserve’s 2007 study of noncash payments revealed that in 2006 more than two-thirds of all U.S noncash payments were made electronically. From 2003 to 2006, the period covered by the study, all types of electronic payments grew while check payments decreased.
About 19 billion more electronic payments were made in 2006 than in 2003. In contrast, the number of checks paid fell by about 7 billion over the same period. Of the more than 90 billion noncash payments in 2006, about 63 billion were electronic and around 33 billion were checks.
The Fed study also noted: “One of the most significant changes of the past three years has been the increasing proportion of checks processed electronically. Such changes have improved the efficiency of the check clearing system.”
“The results of our study underscore the ongoing importance of check electronification and other innovations that improve the efficiency of the U.S. payments system,” said Richard Oliver, executive vice president of the Federal Reserve Bank of Atlanta and the Federal Reserve Banks’ product manager for retail payments.
Still, with some 33 billion checks written in the U.S. during 2006, check processing will remain an important member service for many years. “However, the way those checks will be processed will continue to change,” Beck said.
“In this case, change is good,” Beck said. “Lots of credit unions are going to save lots of money by processing checks electronically.”
Know the Facts about Overdraft Privilege
By John M. Floyd, Chairman and CEO
Overdraft programs have saved a number of members just like yours on countless occasions from the embarrassment and expense due to unintentionally overdrawn items. Institution after institution provides its members the peace of mind these programs offer and a majority of the members realize the value of the service. Members are able to pay one – and only one – overdraft fee and avoid merchant bounced check fees.
Again, unfortunately, overdraft programs are receiving negative attention. This attention is being drawn to the industry because there are programs that do not have the best interest of your member in mind.
H.R. 946
H.R. 946 is the industry’s hot topic concerning overdraft programs. Essentially the bill states institutions cannot impose an overdraft protection fee on an account for paying any check unless the member has requested the service. If H.R. 946 passes, it will affect the way institutions are able to pay checks – every type of overdraft program – the ability to serve members and earn any kind of income in a very competitive marketplace.
What is an institution to do?
If your credit union is looking to implement or already has an overdraft program, be sure it is guaranteed to be non-discriminatory and 100 percent compliant with federal and state regulations, as well as with any recently suggested changes. If you are not compliant and are failing to educate your members about the program, a red flag will be raised.
Overdraft Privilege
The advantage of overdraft privilege is members may overdraw their transaction accounts, subject to a one-time, pre-established limit. The overdrawn account must then return to a positive balance every 30 days. This one-time fee is the same fee the credit union would charge for an NSF check when it is returned. Your members are benefiting by your institution paying the check and not being penalized by a merchant fee in addition to an NSF fee.
Education is imperative to success
Members need to fully understand your overdraft program so they know how to use it and see how you’re providing them with a much-needed service. H.R. 946 mentions members being unaware of overdraft fees until statements are received at the end of the month. To implement properly, members should know about the overdraft privilege program and their dollar limit from the beginning – before they even use it – and every time they use it.
Know your product
Before you ever implement an overdraft program, be certain you are clear on how it works in conjunction with your core processor and that it complies with current rules and regulations. With thorough member education, your institution will be able to implement an overdraft program that will make members happy every time it’s used and, topping it off, you’ll be in compliance too.
To get the facts about overdraft privilege or to answer any questions you still have regarding overdraft privilege, contact James Atwood, JMFA Regional Director, at 877-668-4857 or James.Atwood@JMFA.com .
About JMFA:
John M. Floyd & Associates (JMFA) is a profitability and performance improvement consulting firm—and an endorsed overdraft privilege provider for the Credit Union Association of New Mexico —serving more than 2,000 financial institutions in 49 states and Central America. JMFA is also recognized for training, account acquisition, executive placement, fraud protection solutions and earnings enhancement programs, as well as product, service, pricing and technology improvement consulting. As a direct result of our programs, JMFA has helped thousands of clients dramatically improve their performance and their bottom line. To learn more about JMFA please visit www.JMFA.com or call 800-809-2307.
Credit unions in the news: Money Magazine likes CUs
The best little deal in banking
Credit unions offer sweet deals on credit cards and auto loans, the best CD rates in the business and heaps of personalized services. And yes, you too can join one.
By Carolyn Bigda, Money Magazine writer-reporter
November 13 2007: 10:09 AM EST
(Money Magazine)—If you belonged to a credit union in the past, it was probably because a volunteer at work or church approached you to let you know about the good deal you could get on a car loan.
Credit unions still offer car loans, they’re still tied to affiliation groups, and they still have friendly members looking to let you know about a good deal. But today these not-for-profits are in a pitched battle with big retail banks for all your banking business.
That’s good news for you. You’ll find credit unions with networks of free ATMs and terrific credit-card deals as well as rates on loans and savings products that the megabanks can’t match. A recent study by Informa Research Services found that a higher percentage of credit union members liked their institutions than did bank customers.
And you don’t need to belong to a church or work for a company that has a credit union to find one you can join. Not convinced? See if these five reasons change your mind:
Savings: How to earn real money
While large national banks were reluctant to pass on Federal Reserve rate hikes of previous years, credit unions tracked the Fed to offer higher-than-average yields, says Kyle Selberg, CEO of BankingMyWay.com, which follows bank and credit yields.
And when rates dropped in September, credit unions gave up little ground. These days you can still find phenomenal deals on CDs. For example, the Space Age Federal Credit Union in Denver offers a 16-month CD that pays 7 percent through the end of the year (on Jan. 1 the rate converts to 5 percent for the remainder of your CD’s term).
And savings-account rates at some credit unions are competitive with those of major online banks. Recently, traditional savings accounts at the American Airlines Federal Credit Union, based in Texas, yielded 4.59 percent, slightly higher than rates at HSBC Direct.
Best deal on a six-month CD: Sabine Federal Credit Union (Orange County, Texas): 5.43 percent
National bank average: 3.45 percent
Credit cards: low rates, low fees, low penalties
Today the average bank credit card charges 13.69 percent, according to Bankrate.com. At credit unions it’s 12.16 percent, reports the National Association of Federal Credit Unions.
A 2005 report from the Woodstock Institute, a nonprofit economic development group, found no credit unions practicing “universal default,” a much criticized policy in which your lender raises your interest rate if you default on another lender’s loan.
Some credit unions won’t penalize you with higher rates even when you’re late on their own card’s bill. If they do, you’ll rarely pay more than 18 percent, compared with upwards of 30 percent at major banks.
One caveat: When it comes to reward cards, credit unions fall short. The rewards tend to be less rich (typically less than 1 percent in points or cash back vs. 1 percent or more from a bank card), and the cards may charge annual fees, so check the fine print.
Best deal on a credit card: Visa classic, Pennsylvania State Employees Credit Union: 9.9 percent
National bank average: 13.69 percent
Auto loans: They’re the best-known credit union deals for a reason
You’re also more likely to qualify for those low rates, even if your credit history isn’t polished or you’re a recent graduate just building a credit profile. “We understand that real life happens, so we’ll take a look at the whole picture,” says Nancy Sieller, loan manager at Torrington Municipal and Teachers Federal Credit Union in Torrington, Conn. “We want to work with you.”
Best deal on a four-year new-auto loan: Palmetto Citizens Federal Credit Union (South Carolina): 3.95 percent
National bank average: 7.64 percent
Home loans: Financing you aren’t likely to get from a bank
Maybe you or your kid wants to buy a home with little or no money down. Well, good luck getting that kind of loan from a bank in the wake of the subprime mortgage collapse.
Some of the largest credit unions, though, now offer what’s called the Home Loan Payment Relief (HLPR) mortgage. It finances 97 percent or more of the cost of a home and is available to home buyers with limited income and, increasingly, to those looking to refinance out of an adjustable-rate mortgage.
If you’re putting the standard 20 percent down, you’ll get an interest rate that’s as good as you’d find at a bank, and borrowers may also save on extraneous fees. The Navy Federal Credit Union, based in Vienna, Va., for example, doesn’t bill document-prep and other charges and estimates it shaves an average of $1,000 off closing costs.
Best deal on a home-equity loan: Weld Schools Credit Union (Colorado): 5.95 percent (10-year, $20,000, 80 percent loan to value)
National bank average: 8.19 percent
Perks: Take a class, get a deal on kids’ savings
Many credit unions extend their services far beyond basic banking. You might find free personal-finance classes for your teen or complimentary retirement and credit counseling programs.
The McGraw-Hill Employees Federal Credit Union in New York City and New Jersey, for example, provides furlough loans to members who lose jobs and lets them defer payments for up to three months.
Some credit unions, including Achieve Financial Credit Union in Connecticut, will comb through a credit report with you and suggest how to improve your score.
And many offer kids’ financial literacy tools and special savings rates: Youth CDs, for instance, often carry the same yields as their adult version but require lower minimum balances and give kids the opportunity to make additional deposits during the CD’s term.
Best perk: Members of Amplify Federal Credit Union in Austin can use the credit union’s online bank to track all their financial accounts (including those outside of Amplify). It’s like Quicken, only free.
Your big questions answered
Question: Can I really join a credit union?
Answer: Thanks to 1998 legislation loosening membership restrictions, chances are better than ever that you can. Now you just have to figure out where you’re eligible.
Step 1 Ask your mom and dad (and your grandparents...). If someone in your family is a member, you often qualify to join as well.
Step 2 Find out if your employer, trade group, alma mater or church is affiliated with a credit union. If you’re a pharmacist in Pennsylvania, for example, you can join the Pennsylvania State Employees Credit Union.
Step 3 Still nothing? Time to check out the online databases: Go to the credit union locators at ncua.gov and creditunion.coop. Based on information such as your location, religion and ethnic background, you’ll get a list of credit unions you might be able to join. Click on each credit union’s Web site to learn the specifics.
Question: Should I ditch my bank?
Answer: It’s worth considering if the credit union is a member of a large, free, nationwide ATM network such as the Co-op Network, which includes 25,000 ATMs (vs. 17,000 for Bank of America), and it has online banking too.
But many credit unions still can’t match the big banks when it comes to the breadth of financial products or their services (like late branch hours). Combining your credit union membership with a checking account at a regular bank will probably offer you the best of both worlds.
Marketing decisions should be consumer-driven
CUNA Mutual analyst provides insights to largest direct marketing conference
MADISON, Wis. – Today’s consumer-driven economy demands that marketing strategies reflect consumers’ motivations, needs and what triggers their reason to purchase. Dave Griffith, director of consumer analytics at CUNA Mutual Group, delivered that message to a room of marketing professionals at the Direct Marketing Association’s national conference in New York City.
Along with Mark Graham, chief innovation officer with Yankelovich Research, Griffith discussed the importance of leveraging insights around consumer attitudes as a powerful tool to create relevance when engaging with consumers.
“Consumer values, attitudes and behaviors should be significant elements in developing any marketing plan that hopes to connect with consumers,” said Griffith. “Too often marketers fall short in understanding why consumers are buying and what events are triggering that behavior. The use of traditional demographics is fine, but your strategy won’t fundamentally change until you better understand the motivations.”
Graham said getting to know consumers and how they make purchasing decisions requires an in-depth look at how lifestyles have changed, resulting in what he terms an inside-out world where busy consumers are concerned with taking care of themselves more than previous generations. Additionally, they’re taking risks to exert their own individuality. A few curious statistics he shared bear this out.
· According to the International Spa Association, there were 8,734 day spas in the United States in 2004, up from 4,389 in 2002, which accounted for $5.4 billion in revenue.
· The increasing amount of stress and time constraints is creating a wave of new products and channels that give people relief from their busy lives
· A recent New York Times article said “many young people in the workplace are finding that quitting their jobs is becoming the satisfying new alternative to the standard, entry-level vacation,” as two weeks doesn’t provide adequate down time.
Griffith said that through needs-based segmentation analysis, marketers are able to identify and study specific groups to determine their motivations and create a rich portrait of the customers within each segment. He noted CUNA Mutual is in the development phase of creating its own behavioral and attitudinal driven segmentation. This will be used to fuel product development and create more relevant messaging strategies.
CUNA Mutual Group is the leading provider of financial products and services to credit unions and their members worldwide. More information on the company is available at www.cunamutual.com.
JMFA: The keys to account growth
No matter how you look at it, Credit Unions need to continue to bring in new business from their members. Financial institutions are in business to serve its current members, but must also continue to grow. Credit unions have ample opportunity for growth from their current members. Here are a couple of strategies to consider:
Target the transition market. Of all account holders, 15 percent leave their financial institution every year and are in transition according to a Wall Street Journal article*. Because of this it is suggested that your new members be targeted up to eight times per year with effective, consistent marketing. The more services your members use the harder it is for competitors to get your members to switch their accounts.
Marketing is something that must be done, in some form or another, to communicate with members and potential members. Marketing creates awareness and establishes your credit union’s identity. Here are a few marketing ideas to consider:
Networking – Depending on the goals of your financial institution, this can be a critical element. If the goal is to gain more home loans, a key staff person should be attending the local realtor and homebuilder associations’ meetings. It would even be beneficial to call nearby real estate offices to set up one-on-one meetings. Real estate agents need to be aware of your credit union’s rates and how you can help their clients fulfill their dreams of owning a home.
Lobby – Lobbies, what a great marketing tool! Having an updated lobby that’s clean and bright does wonders for the image of a credit union. First impressions last a lifetime, so ensure that your lobby doesn’t give off an antiquated or unprofessional feel. The lobby area should make customers comfortable and secure that their financial assets are in good hands.
One Voice – No matter what type of marketing you do, whether it’s print advertising, direct mail, radio spots or even networking, credit unions needs to have one clear, consistent message. When people hear your credit union’s name, what do they envision? Messages should be clear and consistent to avoid confusion.
Educate. Educate. Educate. Studies show that it costs five times more to attract a new member than to expand the relationship with an existing one. However, most credit unions spend most of their marketing efforts and resources on trying to gain new members.
Education of current members is imperative. If members do not fully understand how your credit union’s services and products will benefit them, you are missing a huge area of potential growth. By educating members through face-to-face interaction, convenient after-hours seminars, mailings, on-hold messaging, website content and advertising, members will be up-to-date and more likely to increase their business by signing up for additional products and services.
Build a Sales Culture. The front line is the first line of defense in maintaining member accounts and they are also your offensive line to acquire new accounts. Most institutions are challenged by the need to provide front-line employees with the necessary sales training, technical training, regulatory expertise and member service savvy to build a solid front line.
Make a solid front line by arming employees with all the information they’ll need to answer members’ questions and to cross-sell, up-sell and re-sell additional products and services. Consider this an important foundation for building a sales culture. To prevent interruptions, schedule adequate training time prior to opening, in the evenings or on weekends. Train all of your staff - members want their questions answered quickly, and don’t appreciate being passed around from one employee to another. Anyone who comes in contact with your members should be completely familiar with all the products and services available.
Ensure your credit union is following these account acquisition tips and business is sure to grow through new members and increased use of products and services by your current membership base.
About John M. Floyd & Associates
John M. Floyd & Associates (JMFA) is a profitability and performance improvement consulting firm and a leading provider of overdraft privilege programs serving more than 2,000 financial institutions in 49 states and Central America. JMFA is also recognized for training, account acquisition, executive placement, fraud detection solutions and earnings enhancement programs, as well as product, service, pricing and technology improvement consulting. As a direct result of our programs, JMFA has helped thousands of clients dramatically improve their performance and their bottom line. To learn more about JMFA, please visit www.JMFA.com. To contact Regional Director, James Atwood call him at 877-668-4857 or email him at .
* “Banks Push Harder to Get You to Switch” Jane J. Kim, The Wall Street Journal October 12, 2006.
In the news: Credit unions offer great credit cards
News stories this week looked at how credit unions offer cards with reasonable terms, no hidden ‘gotchas’
BusinessWeek online says students can find the right plastic at a credit union:
http://finance.yahoo.com/college-education/article/103480/Credit-Cards-101-Finding-the-Right-Plastic
An article in the October 2007 Consumer Reports says that credit unions offer lower rates, superior customer service:
Foolish for credit unions
Motley Fool writer John Rosevear is crazy about credit unions. In an article published online August 27, he recommends credit unions as a good place to go now for mortgages, noting:
“It’s worth noting that a credit union is a pretty good place to go for a mortgage right now. Because most (though not all) credit unions self-finance their loans, rather than turning them into securities and selling them off, they’ve largely escaped the effects of the subprime crunch in the mortgage securities market. And while credit unions don’t generally make very many subprime or “Alt-A” no-documentation mortgages, their lending standards have always been a bit more flexible than most other institutions, especially when lending to lower-income members with good credit.”
In addition, he recommends credit unions for credit cards, auto loans and other loans.
Read the whole article here.
CUANM presents $45,000 to UNM Children’s Hospital
Credit Union Association of New Mexico CEO Sylvia Lyon, right, and Silver Star Chairperson Amy Vigil, left, present a check for $45,000 to Children’s Miracle Network Program Director Daniel Jaecks on July 26. The money, proceeds from CUANM’s annual Convention, Silver Star Gala and Golf Tournament, will be used for the construction and equipment of the pediatric emergency unit in the new University of New Mexico Hospital addition.
The Credit Union Association of New Mexico presented a check July 26 to the Children’s Miracle Network for $45,000. The money was the proceeds from CUANM’s annual Convention, Silver Star Gala and Silver Star Classic golf tournament held in June.
The credit unions of New Mexico, spearheaded by CUANM, hope to raise $1 million by 2009 for the construction and equipment of the pediatric emergency unit in the new University of New Mexico Hospital addition, which opened to patients in June. The hospital treats thousands of children from all over New Mexico every year.
The money was raised during the CUANM annual convention through trade show vendor contributions, a Credit Union CEO Challenge, the Silver Star Golf Classic, the Silver Star Gala, Diamond Teddy Bear sale and silent auction.
MSN: Ditch your bank
Ditch your bank, says MSN Money columnist Liz Pulliam Weston in a column published online this week, adding, “Credit unions deliver big savings and better service for many consumers.”
“Hard to beat a headline and article like this from a consumer’s perspective. In fact we heard that the CU Matchup system. which is noted in the story as a consumer resource, actually crashed for awhile yesterday due to heavy volume — a sign that the column must have a wide readership,” according to CUNA senior vice president of communications Mark Wolff.
In the article, Weston noted, “Because of their not-for-profit, cooperative structures, credit unions are exempted from most state and federal taxes. Banks have convinced themselves this is an unfair advantage and have spent a lot of effort, plus a fortune in lobbying fees, trying to legislate credit union