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CU System Archive

CU System

NEW: ACUC Attendees To Storm Today Show Wednesday

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MADISON, Wis. (UPDATED 2 p.m.CT 6/27/13)--A group of Credit Union National Association representatives will "storm" the set of the Today show Wednesday in conjunction with CUNA's America's Credit Union Conference, spreading credit unions' "Unite for Good" message to a nationwide television audience.

"Unite for Good is about action," said Paul Gentile, CUNA executive vice president of strategic communications and engagement. It's about coming together to help build a better future for credit unions. While in New York we will give credit unions the ability to take action and show their cooperative spirit."

Gentile noted that for those not coming to ACUC, they can still participate by sharing how they are helping Unite for Good on the Uniteforgood.org web site. The site has recently added a new feature that will allow credit unions everywhere to share their stories.

CUNA is inviting conference attendees to meet in the lobby of the Hilton New York at 6:15 a.m. on Wednesday, to join the audience outside the Today show studios. At the studios, the group will hand out hundreds of copies of the book "Money Rules: The Simple Path to Lifelong Security."

ACUC kicks off Sunday at the Hilton New York in New York City. It ends Wednesday.

The first 50 attendees who show up for the Today event will be provided with a Starbucks gift certificate and free coffee, compliments of CUNA.

Wednesday is T-shirt Day at the ACUC. All registered attendees, including those attending the Today show event, will be provided with Unite for Good T-shirts. CUNA will take a group photo of attendees in their T-shirts during a conference general session on Wednesday.

"Money Rules" author Jean Chatzky will appear on the Today show Wednesday. Chatzky spoke at CUNA's Governmental Affairs Conference in Washington, D.C., in February.

"Money Rules" contains a set of actionable rules that, if followed, will allow readers to enjoy a lifetime of financial security and eliminate their stress about money.

Within the past six months, the National Credit Union Foundation distributed more than 80,000 copies of the book to credit union members and employees through a special initiative by the National Credit Union Foundation.

Creating awareness about credit unions is part of CUNA's Unite for Good campaign to rally credit unions to support the system's strategic vision in which "Americans choose credit unions as their best financial partner."  For more information about United for Good use the link.

24 CUs Among Top 100 Cards Issuers

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CARPINTERIA, Calif. (6/27/13)--Twenty-four credit unions are among the Top 100  U.S. debit and credit card issuers, according to new research from The Nilson Report.

The Carpinteria, Calif.-based publication noted that more than half of all credit, debit and prepaid card transactions worldwide involving payments at merchants are generated by Visa cards.

Of the 61.76 billion credit cards in play, Visa has 50.1% of the market share, while MasterCard has 33.5% and American Express, 8.5%. UnionPay (5.4%), JCB (2.3%) and Diners (0.3%) round out the list.  Visa dropped 75 basis points and MasterCard dropped one basis point from the last survey, while UnionPay rose 83 basis points.

For the 73.57 billion debit cards issued, Visa generated 76.9% of the market--a decrease of 165 basis points-- while MasterCard captured 18.9% of the market, for a 101-basis points gain.

None of the credit unions are listed in the top 20 debit, credit and prepaid card issuers. That list was topped by JP Morgan Chase, Bank of America, American Express, Wells Fargo and Citibank.

Three credit unions are in the Top 50 rankings: Vienna, Va.-based Navy FCU is ranked at No. 22, State Employees' CU, Raleigh, N.C., is at 35 and BECU, Tukwila, Wash., is at 45.

Thirty-one credit unions are also listed in the top 100 issuers of debit cards (by purchase volume) said the report.

For more information about the report, entitled, "Largest Issuers and Acquirers of Payment Cards Worldwide," use the link.

CU System briefs (06/27/2013)

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  • WASHINGTON (6/27/13)--At 10 a.m. (ET) this morning, the Senate Banking Committee is scheduled to begin its hearing into the nomination of former Oregon State Sen. Rick Metsger (D) to become a member of the National Credit Union Administration board, as well as a host of other nominations.  Metsger was named by the White House in May as a candidate to fill the seat on the NCUA board left open since former member Gigi Hyland exited in October of last year. If confirmed, Metsger will join NCUA Chair Debbie Matz and board member Michael Fryzel to fill out the three-member board. Other nominees on the committee's agenda today include Rep. Melvin L. Watt (D-N.C.) to be director of the Federal Housing Finance Agency; Dr. Jason Furman of New York, to be a member and chairman of the Council of Economic Advisers; Kara M. Stein of Maryland, to be a member of the Securities and Exchange Commission; and Dr. Michael S. Piwowar of Virginia, to be a member of the Securities and Exchange Commission. Interested parties should be able to view the hearing at http://www.banking.senate.gov/public/ ...
  • LOWELL, Mass. (6/27/13)--NMTW Community CU, Lowell, Mass., will change its name to Align CU in September. NMTW, which stands for Northern Massachusetts Telephone Workers, was granted a community charter in 2005. Membership is now open to anyone who lives, works or goes to school in communities in eastern Massachusetts and southern New Hampshire (The MetroWest Daily News June 25). The new name is the result of more than a year of research, analysis and planning, the credit union said. The Align name reflects tailoring products and services to each member's needs, said Lauren Robinson, NMTW assistant vice president and marketing director ...
  • WASHINGTON (6/27/13)--Credit unions had an extra reason to celebrate being credit unions Wednesday. On June 26, 1934, President Franklin D. Roosevelt signed into law the Federal Credit Union Act to promote savings and make credit available through a nationwide network of not-for-profit credit unions. It authorized credit unions to be chartered either under federal or state law, a policy that still remains today, and established what is now the National Credit Union Administration, as a satellite of the Farm Credit Administration. The New Deal initiative was based on the Massachusetts Credit Union Act of 1909, said NCUA on its website. At the beginning of 2013, there were more than 6,819 federally insured credit unions with more than $1 trillion in assets and nearly $600 billion in outstanding loans ...
  • NEW BERLIN, Wis. (6/27/13)--Barb Campbell, president of  Dodge Central CU, a division of Landmark CU in New Berlin, Wis., will retire effective Nov. 30. Rodger Mattson, former board chair for Dodge Central CU, made the announcement Tuesday. During Campbell's 18-year tenure as president/CEO, Dodge Central grew from a $2 million asset credit union with a single branch into a $55 million, five-branch operation, including a branch in Beaver Dam High School to help students learn the value of money. Campbell will remain a member of a local community board consisting of all former Dodge Central board members. While serving in her position, Campbell also has been active in charitable organizations--including Children's Miracle Network-- that involved the help of employees and members of Dodge Central. Jay Magulski is president/CEO of Landmark CU ...
  • WOODBRIDGE, Va. (6/27/13)--Tisha Wallace, chief operations officer of Woodbridge, Va.-based Belvoir FCU, was elected to serve a three-year term on the Credit Union Auto Loan Network (CUALN) Board of Directors.  The board consists of nine senior executives from participating credit unions who meet quarter to approve annual budgets and strategy, determine new product offerings, discuss the geography of CUALN's operation, and determine how to better serve credit union members. CUALN is a program where members of participating credit unions can obtain auto financing from the credit union directly at the dealerships.  It was established in 1998 to serve the Maryland, Northern Virginia and the District of Columbia market ...

Author Of Pro-CU Chalk Writings Faces Possible Jail Time

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SAN DIEGO (6/27/13)--A Bank Transfer Day proponent faces 13 years in jail and a $13,000 fine for writing anti-big bank slogans on the public sidewalks--with water soluble chalk--outside three San Diego Bank of America branches.

A trial began Tuesday for Jeff Olson, 40, who is charged with 13 counts of misdemeanor vandalism.  Olson is a member of California Coast CU in San Diego, was active in the Occupy Wall Street movement, and is a former staffer of a U.S. senator (The San Diego Reader June 2 and the Huffington Post June 25).

Judge Howard Shore ruled Tuesday that Olson's attorney, Tom Tosdal, is banned from "mentioning the First Amendment, free speech, free expression, public forum, expressive conduct or political speech during the trial," said Opposing Views.com (June 26).

Several news reports indicate that BofA officials pressured local authorities for months to arrest Olson. They reported several e-mails from one BofA official asking for progress on the case. That official had allegedly confronted Olson and another man in front of a BofA branch, accusing them of running a business outside the bank.

Olson told media he carried a homemade sign promoting Bank Transfer Day outside one branch but decided his time would be better spent at the banks, trying to convince people to ditch their banks for local credit unions. He noted that was the best way to hold executives and corporations accountable for the financial crisis.

A BofA debit card fee in 2011 triggered consumer protests against big bank fees throughout the nation, resulting in Bank Transfer Day, which promoted switching accounts to credit unions and small banks. Credit unions gained more than two million members in the months surrounding that date.

Olson allegedly chalked slogans such as "Stop big banks" and "StopBankBlight.com" in front of bank branches weekly from February to August 2012.

Mid-Atlantic Corporate Elects Board, Officers

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MIDDLETOWN, Pa. (6/27/13)--Mid-Atlantic Corporate FCU in Middletown, Pa.,
announced the election results for its board of directors June 20 at its annual meeting.

"Our board leadership has been instrumental in Mid-Atlantic Corporate's growth and performance, which included 2012 net income of $13.56 million--a 124% increase over 2011," said Jay Murray, president/CEO of the corporate. "We look forward to continuing relationships with those extending their board service."

Returning to the board to serve new three-year terms are:

  • Alison DeTuncq, president/CEO, University of Virginia Community CU, Charlottesville, Va.;
  • Brian J. Vittek, president/CEO, Destinations CU, Baltimore; and
  • David B. Whitehead, president/CEO, Merck Sharp & Dohme FCU, Chalfont, Pa.
Directors continuing current terms are:

  • Dennis Flickinger, president/CEO, First Capital FCU, York, Pa.;
  • Jerry King, president/CEO, DEXSTA FCU, Wilmington, Del.;
  • James F. McCaw, president/CEO, Viriva Community CU, Warminster, Pa.;
  • Joan M. Moran, president/CEO, Department of Labor FCU, Washington, D.C.;
  • Michael P. Pastirik, president/CEO, United Community FCU, West Mifflin, Pa.; and
  • Constance M. Wheeler, president/CEO, Penn State FCU, Bellefonte, Pa.
 Board officers elected include:

  • Chairman--Pastirik;
  • Vice chair--Moran;
  • Treasurer--Whitehead; and
  • Secretary--Vittek.

News Now Archived Stories Feature Resource Links

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MADISON, Wis. (6/27/13)--Where are the resource links? With CUNA's new website, News Now readers who missed an issue can read the archived stories, complete with resource links.

For example, if you missed a June 25 story about a National Credit Union Administration press release on its newly proposed derivatives rule issue, you can still access the link directly to the press release from the archived story.

Follow these steps to access the release:

  • Click on the "Washington Archive" link under the "Archive Links" heading on the left side of the News Now site.
  • Click on June 25 on the Calendar on the right side of the page.
  • Click on the headline "Derivatives Rule Included In NCUA YouTube Update."
  • On the next page, scroll down and click on the link to the NCUA release under the "Other Resources" heading.
The process works the same in each News Now section: Consumer, CU System, Market, Products and Washington.

Canada's Co-ops, CUs Meeting This Week

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EDMONTON, Canada (6/27/13)--More than 250 leaders of cooperatives and credit unions from across Canada are gathered to share their success stories and talk about where the cooperative movement is heading in the future in Edmonton. The meeting ends Friday.

"Sharing our successes; building the future" is the theme of the Congress organized by Canada's two national co-operative associations, the Canadian Co-operative Association (CCA) and the Conseil canadien de la cooperation et de la mutualite (CCCM).

Congress participants will look back on the successes of the 2012 United Nations International Year of Cooperatives, a global celebration of the contribution cooperatives make to the social and economic development of communities worldwide.

Another focus will be the Blueprint for a Cooperative Decade, an action plan produced by the International Cooperative Alliance aimed at making cooperatives the world's fastest growing business model by the year 2020. Participants will explore the themes of the blueprint and their implications for cooperatives in Canada.

Canada's 9,000 cooperatives have more than 18 million members and 150,000 employees. They generate annual revenues of more than $50 billion and have assets of more than $370 billion.

CU Assisting Small Business Owners Through Workshops

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AUSTIN, Texas (6/27/13)--A+ FCU, Austin, Texas, is supporting its local business community by offering a free small business workshop series in July.

Presented by community leaders and small business owners, the workshops will focus on important considerations for business owners and prospective owners, including establishing a small business, taxes, financing options, and minority- and women-owned small business certifications.

"A+FCU has a desire to empower and support our small business community," said Kerry A. S. Parker, CEO. "This is one more opportunity for us to help people achieve their dreams through life-long financial partnerships."

Workshop topics include:

  • July 11--"Top 10 Lessons Learned Establishing a Small Business and Business Tax Matters";
  • July 18--"Financing Options for Your Small Business: Traditional and Non-Traditional Loans"; and
  • July 25--Minority- and Women-Owned Small Business Certifications."

Credit unions maintain they can do even more for small businesses if the cap on their member business loans were lifted. In Congress, separate House (H.R. 688) and Senate (S. 968) MBL bills have been introduced to increase the credit unions' member business lending cap to 27.5% of total assets from 12.25%. The Credit Union National Association has estimated that lifting the MBL cap would create 140,000 jobs and inject $13 billion in new funds into the economy, at no cost to taxpayers.

Fostering service excellence is one of three components driving credit unions' national campaign, Unite for Good, which strives to achieve CUNA's strategic vision for credit unions, where "Americans choose credit unions as their best financial institution.

Study: Mobile Users Less Resistant To Service Fees

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BOSTON (6/27/13)--Users of mobile banking devices are becoming less resistant to fees, according to the 2013 ath Power Mobile Banking Study Power from ath Power Consulting, a Boston-based financial services research and strategy firm.

Banks trolling for fee opportunities will see one here, but that also will present an opportunity for credit unions to beat the banks on yet another range of products by extending these as low-cost or no-fee, affordable services to members, said the Credit Union National Association.

Banks also will be use mobile banking services to try to shore up sagging customer loyalty.  That won't happen if credit unions reach their members and potential members first with sophisticated mobile banking services that members want.

The ath Power study also revealed that remote deposit capture continues to be the most sought-after mobile banking feature, and that next-generation capabilities such as voice authentication and mobile photo bill pay would encourage more consumers to adopt mobile banking.

"Retail customers are becoming less resistant to monthly fees for mobile, with one in three now saying they would be willing to pay for mobile banking," said Michael McEvoy, ath managing director. That is up from the one in five during last year's study, he said.  

"With more banking capabilities available to users and its obvious convenience, mobile is quickly becoming the preferred channel for many, with one in two customers logging into their accounts at least twice weekly. This is a clear opportunity for banks to build customer loyalty and potentially drive revenue," McEvoy said.

"Mobile banking is the fastest-growing channel in bank history," said Matt Wilcox, senior vice president and director, interactive services and marketing at Zions Bank. "Banks simply cannot afford to not leverage this medium and its power to serve their clients and connect with them on a greater level.  The challenge will be to innovate and provide the functionality that meets customer demand."

Credit unions also can keep in mind these other findings:

  • Voice recognition would motivate one in three mobile customers to use mobile banking services more, while voice authentication would encourage non-users to adopt mobile banking.
  • Financial institutions risk losing small business customers if their mobile offering is inadequate. Sixty-six percent of small business owners say they are likely to consider leaving their current institution for one with a superior mobile offering. That compares with 44% of retail customers.
  • Nearly one-half of existing mobile banking customers are discouraged from using mobile services such as bill payment and funds transfers because of security fears.
  • Alerts are a relatively untapped means of interacting in real-time with customers.  Two in five mobile users do not receive any alerts from their financial institution.
For more information on mobile banking, use the links.