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Filed on September 21, 2009, published the first business day after.
- This week in Congress: Could reg reform picture become clearer?
- Vibrant 2010 GAC lineup building
- GAC housing sign up starts today
- CUNA urges more changes to CARD Act rule
- At CUNA’s 75th, Hyland stresses diversity, leadership and more
- Inside Washington
- N.Y. Times: CUs clear deposits quicker than banks
- Pacific CUs form new network
- Iowa students having difficulty finding loans, CU says
- Tentative Pennsylvania budget agreement reached
- Va. CUs tell why they’re boosting market share
- Closed bank worked closely with CU mortgages
- Suit alleges Chrysler deputy CEO owes CU $609,286
- Another news report notes CUs low fees
- Credit is key to Hispanic outreach, says lender
- CU 24 hosts Costa Rican delegates for EFT Roundtable
- Heartland CU part of investment education study
- CU System briefs
- Market News
- News of the Competition
- Council paper addresses rewards, recognition programs
- CO-OP, Online Resources join on online banking services
This week in Congress: Could reg reform picture become clearer?
WASHINGTON (9/22/09)--Some elements of the House plan for financial regulatory reform could become clearer following a series of House Financial Services hearings scheduled for this week.
The House will reopen debate on Wednesday, with Credit Union National Association Chief Economist Bill Hampel testifying on the impact of regulatory reform on credit unions before the House Small Business Committee on Wednesday afternoon.
Treasury Secretary Timothy Geithner will address Chairman Rep. Barney Frank's (D-Mass.) House Financial Services Committee earlier in the day, presenting his views on the Administration's proposals for financial regulatory reform. The Committee will also hear from Federal regulators during a separate hearing later that afternoon.
Further House hearings on regulatory restructuring are expected during October. However, the Senate has not announced a schedule for discussion of regulatory reform proposals.
One item that could be on the Senate agenda this week is overdraft protection, as Senate Banking Committee Chairman Chris Dodd (D-Conn.) may introduce a bill that would require financial institutions to seek permission before they can enroll their accountholders in an overdraft protection program this week. A similar bill, introduced by Rep. Carolyn Maloney (D-N.Y.), is in the House, and Barney Frank recently told The Washington Post that the new Consumer Financial Protection Agency, if approved, could itself create new overdraft rules.
Vibrant 2010 GAC lineup building
WASHINGTON (9/22/09)—To a back drop of the most aggressive agenda of financial services issues before the U.S. Congress and the administration in a generation, the 2010 Credit Union National Association (CUNA) Governmental Affairs Conference (GAC) will give credit union leaders the opportunity to learn the latest, first hand, from influential policymakers. Participants also have opportunities to speak out on critical issues, and ensure the credit union difference is well understood on Capitol Hill.
And beginning today, those planning to attend the Feb.21-25 event in Washington, D.C, can reserve hotel rooms online or by phone. (See related story: GAC housing sign up starts today.)
CUNA President/CEO Dan Mica, noting the pivotal events that are leading up to the coming year's GAC said, "We have both serious challenges and real opportunity in the year ahead. The challenge will be to ensure credit unions are not disadvantaged or overburdened by new regulation and reform. The opportunity will be to advance our goals on member business lending and capital reform at a time when Congress is seeking ways to spur economic growth. We really need to make an impact. The GAC is the place to do it."
The 2010 GAC will feature an array of prominent speakers, including heavy hitters to address the nation's economy. Larry Kudlow, host of CNBC's "The Kudlow Report" is a renowned free-market, supply-side economist with a storied career spanning three decades. Scheduled to address the GAC, he will offer a wealth of insight and expertise to help credit union leaders better navigate tomorrow's evolving economic and political terrain.
On the political front, the 2010 GAC will offer a lively "point-counterpoint" discussion on national issues of the day from two of the most prominent voices on the left and right: Former Vermont governor and Democratic National Committee Chairman Howard Dean will pair with Joe Scarborough, the former Republican congressman who now hosts MSNBC's popular "Morning Joe" program.
Additionally, key speakers from Congress, the administration and the financial regulatory agencies will be announced in coming weeks as the agenda takes shape for a conference that continues to draw many of the most influential policy makers in Washington to provide the latest information on legislation and regulation that affects credit unions and their ability to serve their members.
The GAC's on-point education sessions also will ensure credit unions are fully briefed on credit union legislative priorities, the impact of coming regulations, and grassroots political and campaign involvement strategies. As always, the conference will devote a day when credit union leaders deliver their message to Capitol Hill and meet personally with their state congressional delegations.
"It's important for meetings with members of Congress to take place year-round through such efforts as our Hike the Hill program. But the GAC is the one time during the year when thousands of credit union people are here together to deliver our message, tell our story and demonstrate our support to our friends on Capitol Hill," says Mica.
"As a former member of Congress, I can tell you for a fact that this has a great impact. But it all starts with you, and your own commitment to be involved and participate."
The 2010 GAC will again feature a special kickoff concert on Sunday evening, Feb. 21, presented by the CUNA Councils and preceded by a dessert reception in the Convention Center's Grand Exhibit Hall. The band as well as more of the GAC's featured general session speakers will be announced in the weeks to come.
Watch CUNA's News Now , on the CUNA website at www.cuna.org, and biweekly Credit Union NewsWatch newsletter for more details.
GAC housing sign up starts today
WASHINGTON (9/22/09)--Beginning today, those planning to attend the Credit Union National Association's (CUNA's) 2010 Governmental Affairs Conference Feb. 21-25 in Washington, D.C. can reserve hotel rooms Monday-Friday, 9 a.m. to 5 p.m. ET, both online and via phone call.
New this year, a number of state credit union leagues have obtained housing blocks for use by their affiliated credit unions. Member credit unions from the following states, listed alphabetically, can use the link at the end of this article to download league housing information and contact their league representative:
- Alaska, Alabama, Arizona, California/Nevada, Colorado/Wyoming, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Kansas, Louisiana, Maine, Massachusetts/New Hampshire/Rhode Island, Minnesota, Missouri, Mississippi, Montana, North Carolina, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Utah, Virginia, and West Virginia.
Credit unions in states not listed above should use the second resource link to contact the CUNA Housing Bureau website, or call 1-800-974-3084 Monday-Friday from 9:00 a.m. - 5:00 p.m. ET, or, to reserve a room via fax, dial 1-800-521-6017 or 847-940-2386.
CUNA urges more changes to CARD Act rule
WASHINGTON (9/22/09)—Minimum payment disclosure requirements that will be effective Feb. 22, 2010 under the new law known as the Credit CARD Act should apply only to credit cards, the Credit Union National Association (CUNA) urged the Federal Reserve Board, the agency charged with implementing the law.
CUNA also emphasized that credit unions continue to experience severe difficulties as they struggle to comply with the 21-day rule, which requires creditors to adopt reasonable policies and procedures to ensure periodic statements for open-end accounts are mailed or delivered to borrowers at least 21 days before the payment is due. Otherwise, if the payment is made after that time frame, the creditor may not treat it as late for any purpose, including charging a late fee, reporting the account as delinquent to credit bureaus, or imposing a penalty interest rate.
CUNA is seeking a targeted legislative remedy, and urges the Fed to support its efforts. CUNA has also worked extensively with Fed officials regarding the problems credit unions have confronted as they work to comply with the 21-day rule.
In its eighth comment letter to the Fed on CARD Act issues this summer, this one dated Sept. 21, CUNA said that if the minimum payment disclosures are not limited to credit cards, credit unions will incur significant costs to provide information to their members that will be confusing and may lead some borrowers to make incorrect payments.
CUNA added that limiting minimum payment disclosures to credit cards is wholly consistent with previous action by the Fed. The agency recognized similar problems, CUNA noted, when it issued rules earlier to implement similar minimum payment disclosure requirements under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
"The Board limited those statutory provisions regarding minimum payment disclosures to credit cards, and we urge the Board to do so again," CUNA's Deputy General Counsel Mary Dunn wrote.
CUNA noted that the minimum payment disclosure issue is not part of the interim final rule that was open for comment, but that CUNA was compelled to address this issue now because of the problems that could arise if starting minimum payment disclosures have to be reflected for all open-end loan accounts on consolidated statements, which a number of credit unions provide to their members for all their accounts. CUNA also commented on the interim rule's specific provisions.
Use the resource link below to read CUNA's complete remarks.
At CUNA’s 75th, Hyland stresses diversity, leadership and more
WASHINGTON (9/22/09)--National Credit Union Administration (NCUA) board member Gigi Hyland offered congratulations on the Credit Union National Association's (CUNA's) 75th anniversary and, looking ahead, stressed the importance of credit unions demonstrating diversity, financial education, collaboration and leadership.
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| NCUA board member Gigi Hyland offers congratulations to CUNA on its 75 years of accomplishments and says NCUA will have to take a leadership role in comments to the U.S. Treasury Department and the U.S. Congess on the topic of supplemental capital. (CUNA photo) |
"You have every right to be proud of this association that has accomplished so much over the years to ensure credit unions can execute their mission," Hyland told the CUNA board. For the system to capably address future challenges, Hyland emphasized four goals:
- Be diverse. "I believe CU management and board staff should be as diverse as their membership," she said, emphasizing the importance of ongoing recruitment of new volunteers.
- Educate, educate, educate. "If members can't learn the basics of a checking account, how to buy a house, or how to use a credit card from credit unions, it is unlikely they will be financially empowered from anywhere else," she said.
- Collaborate. "We're good at it—sometimes," she said and urged CUs to look for new opportunities to combine resources and collaborate, especially in these difficult economic times.
- Lead. "Be a profile in courage," Hyland said. "Let's lead this system forward so we can ensure it thrives for the next 75 years and beyond."
Hyland said in a Q&A with the CUNA board she believes the NCUA will "have to lead and be clear in comments to Treasury and Congress" on the topic of supplemental capital. Her office is continuing an effort to "synthesize regulatory concerns" that can be presented to the NCUA board.
"My goal is to have a paper before the NCUA board in December for consideration and a vote," she said, recognizing "there is an urgency" to this issue.
Inside Washington
- WASHINGTON (9/22/09)--Bank of America could face questions from the Committee on Oversight and Government Reform regarding some legal conversations that took place when BofA merged with Merrill Lynch. Rep. Edolphus Towns (D-N.Y.) wrote a letter to the bank Friday, saying that it can't use attorney-client privileges to keep the conversations private from Congress (The New York Times Sept. 21). Towns gave BofA until noon Monday to provide him with the information, but the bank responded and asked to move the deadline until after today. Towns' spokesperson said he would stick to the deadline. If BofA reveals the information, it will affect other investigations of the BofA and Merrill Lynch deal by the Securities and Exchange Commission (SEC) and Andrew Cuomo, New York attorney general ...
- WASHINGTON (9/22/09)--Maine credit unions recently met with their federal delegates in Washington, D.C., during the Maine Credit Union League's annual Hike the Hill trip Sept. 15-16. Sen. Olympia Snowe (R-Maine) told the group that "credit unions are great for Maine and their members." Maine Sen. Susan Collins (R) and Maine Reps. Mike Michaud (D) and Chellie Pingree (D) made similar statements.
Michaud said he appreciated what credit unions do and applauded them for providing credit when many banks are not. "I am a big believer in helping increase access to credit, and it seems to me that credit unions would be a great way to help small businesses because they have plenty of money to lend, which would be wonderful for the marketplace," Pingree said. Pictured are: Michaud, left, who shook hands with Normand R. Dubreuil, president/CEO of Maine State CU, prior to meeting with credit union representatives at the Hill visit. Also present were: Oxford FCU's Matt Kaubris, president/CEO; Pete Theriault, associate board member; Richard Bilodeau, board member at Rainbow FCU and Dan Daggett, vice president at Down East CU. (Photo provided by the Maine Credit Union League) ...
- WASHINGTON (9/22/09)--The Federal Reserve Board has said no to a request by Treasury Secretary Timothy Geithner for a public review of the Fed's structure and governance (Bloomberg.com Sept. 21). Fed officials saw a threat to the central bank's independence from such a review. Lawmakers also have requested reviews of the Fed's structure after some said Fed Chair Ben Bernanke overstepped bounds when he bailed out American International Group Inc. and Bear Stearns. The Fed has said it is conducting reviews of its structure. Fed. Gov. Elizabeth Duke said she is working on an internal study of roles of each director on the boards at regional Fed banks ...
- WASHINGTON (9/22/09)--Sheila Bair, Federal Deposit Insurance Corp. (FDIC) chair, said that the agency is considering some other options instead of charging banks another special assessment fee. Lawmakers had urged the agency not to charge more fees. Bair said the agency will release a proposal with ways that the Deposit Insurance Fund can be replenished (American Banker Sept. 21). Some of the options the agency is considering include issuing debt to the financial industry, requiring institutions to prepay next year's assessment, or tapping into a line of credit at the Treasury Department. Many media outlets have reported that the Deposit Insurance Fund is nearly broke ...
- WASHINGTON (9/22/09)--Federal Reserve Board discount window borrowing is on the decline, following improvements in financial conditions, the Fed said Friday (American Banker Sept. 21). During four weeks ended Aug. 26, lending was split 50-50 at the lending window. The top 10 borrowers took $130 billion and the 355 institutions that borrowed less took another $130. The central bank held $540 billion in collateral ...
N.Y. Times: CUs clear deposits quicker than banks
NEW YORK (9/22/09)--Credit unions generally clear deposits quicker than banks do, according to a finance columnist for The New York Times.
In his Saturday column "Hurry Up and Credit My Account," Rob Lieber wrote that many readers have sent him angry questions about overdraft fees after he wrote about them earlier this month. The questions have come as the fifth anniversary for the law known as Check 21 approaches, Lieber noted.
Check 21 allows financial institutions to turn paper checks into digital images and handle them electronically instead of having to send volumes of paper checks around the U.S. on airplanes to settle them.
"Banks can and do move faster than regulations require," Lieber wrote. "And some have pushed their daily deadlines for depositors later by a few hours. Credit unions in particular tend to clear deposits more quickly, according to a 2007 Federal Reserve study of the effects of Check 21."
For the full story, use the link.
Pacific CUs form new network
NADI, Fiji (9/22/09)--Credit unions in the South Pacific will gain greater political leverage and more educational opportunities with the formation of the Pacific Credit Union Network.
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Members of the Pacific CU Network Advisory Committee and its supporter organizations are, from left: Michael Koisen, Papua New Guinea; Brian Branch, World Council of Credit Unions; Penisimeni Fifita, Tonga; Faataga Faataulofa, Samoa; Peter Mason, Credit Union Foundation Australia; and Manoa Seruvakaula, Fiji. Seruvakaula represented Anane Vadei, who will be Fiji's permanent committee representative. |
The network will provide technical assistance, communications and advocacy support, and develop a Pacific credit union database, said Peter Mason, CUFA CEO. The Australian credit union development organization began planning the network last year.
"The distance between credit unions located on South Pacific islands has kept many of them from developing the critical mass necessary for growth," said Mason. "The new network will provide the political and technological relationships to help them better serve their members."
The network was introduced to 102 congress participants from 11 countries. In addition to participants from Australia, Fiji and the U.S., countries attending were Kiribati, Papua New Guinea, Samoa, Solomon Islands, Timor-Leste (East Timor), Tonga and Vanuatu.
Other congress highlights included sessions on board/management relationships, strengthening credit union legislation, understanding the cost of delinquency, credit union marketing and a regulatory forum.
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Faataga Faataulofa from Samoa makes a point during the Pacific Credit Union Technical Congress, which met last week. (Photos provided by the World Council of Credit Unions)
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The network and congress are the latest cooperative efforts between WOCCU and CUFA designed to help develop credit unions in the South Pacific. This is a region in which CUFA's influence especially has been of great value in fostering credit union growth, according to Brian Branch, WOCCU executive vice president and chief operating officer.
"CUFA has provided critical leadership in developing and supporting Pacific region credit unions for many years," said Branch. "We are now seeing the fruits of CUFA's dedication, and our collaboration as credit unions puts improved management practices in place to prepare for increased regulatory oversight that is coming in the wake of the global financial crisis."
Iowa students having difficulty finding loans, CU says
IOWA CITY, Iowa (9/22/09)--As the private student loan market becomes tighter and more regulated, the gap between college costs and loan availability is widening, according to University of Iowa Community CU, Iowa City.
Higher tuition and other costs mean there is a $30,000 shortfall for students attending a public university for four years and $100,000 for private schools, the $838.4 million asset credit union told Iowa City Press-Citizen (Sept. 21).
Steve Quigley, senior vice president for retail sales at the credit union, noted that the need posed by the gap is why the credit union decided to get into the student loan business. It is one of 80 credit unions throughout the nation offering private student loans through Credit Union Student Choice, a private student loan provider for credit unions.
One student, a senior at the university, told the publication he is $10,000 short because he couldn't get enough loans--from institutions that previously lent to him--to cover his costs.
Private student loans can fill that gap, said the credit union, but many lenders are leaving the private insurance market after the economy crashed.
With a bill in Congress to terminate a key federal student loan program--the Federal Family Education Loan Program (FFELP)--the gap could become a canyon. The Credit Union National Association has gone on record opposing the elimination of the FFELP program. Eliminating FFELP would remove a "valuable option" for students (News Now Sept. 18)
A University of Iowa (UI) official said that overall it hasn't seen a gap between loan availability and college costs. It provided $59 million in grants and scholarships this year, 11% more than last year.
UI's student financial aid office suggested students compare lenders and examine interest rates, terms and fees when taking out a private loan.
Tentative Pennsylvania budget agreement reached
HARRISBURG, Pa. (9/22/09)--Pennsylvania Gov. Ed Rendell and state legislators announced Friday they have reached a tentative agreement on the state's budget, with a spending plan totaling nearly $28 billion.
The plan would end a more than 80-day budget impasse, said the Pennsylvania Credit Union Association (PCUA) (Life is a Highway Sept. 21).
"During the 80-day budget impasse, the association worked diligently to ensure that credit unions were removed from taxation conversations during budget negotiations," said PCUA President/CEO Jim McCormack.
"As caucus leaders begin to implement legislation to enact the budget, we will continue to monitor, analyze and share any implications that might affect daily business operations," he said.
The tentative budget calls for the state to spend $400 million less this year than in fiscal 2008-09. The plan calls for increasing spending on basic education needs by $300 million.
The agreement package will be drafted into a bill to go before a joint House and Senate conference committee to pass and send to their respective chambers. Then the full chambers will vote on the bill without the ability to change it. Once passed, it will go to the governor for signature, likely within the next two weeks.
Credit unions in the state, like in other states with budget problems, assisted members who are state employees with emergency funds to get them through hardships caused by the extended budget process.
Va. CUs tell why they’re boosting market share
ROANOKE, Va. (9/22/09)--Credit unions in the Roanoke, Va., metro area recently told The Roanoke Times why they're increasing their market share.
Credit unions in the U.S. collectively posted assets of $82 billion this past summer. Credit union membership growth hit 2% this summer, the highest rate since 2004 (The Roanoke Times Sept. 21).
The newspaper asked why credit unions are growing, and six Southwest Virginia credit unions gave the Times a link to a website: CreditUnionsAreBetter.com, a promotional campaign site that declares credit unions as "People Over Profit."
Paul Philips, CEO of Freedom First CU in Salem, Va., told the newspaper that there is no "fat cat." The credit union tries to charge its members the least amount possible for services, he added. Freedom First has $273 million in assets.
Wei Jiang, senior analyst at SNL Financial in Charlottesville, said banks work for their investors, whereas credit unions work for their members.
"[Credit unions'] purpose is not to make money," Jiang said.
Credit unions may not be as popular as traditional banks, but that's because many people don't understand what credit unions are about. It's a matter of awareness, Mark Wolff, Credit Union National Association spokesman, told the newspaper.
The paper also noted that credit union deposits are backed by the National Credit Union Administration.
Closed bank worked closely with CU mortgages
WASHINGTON (9/22/09)--The Federal Deposit Insurance Corp. (FDIC) Friday seized two subsidiaries of Irwin Financial Corp., a Columbus, Ind.-based banking company that worked in the past with credit unions on mortgage lending. The actions bring the total number of failed banks this year to 94.
Citing previous cease-and-desist orders and directions for the banks to increase capital, regulators closed the $2.7 billion asset Irwin Union Bank and Trust Co., based in Columbus, Ind., and $493 million asset Irwin Union Bank of Louisville, Ky. The failures were estimated to cost FDIC $850 million. The institutions' holdings were transferred to First Financial Bank, Hamilton, Ohio, FDIC said.
Irwin Mortgage Corp., a wholly owned subsidiary of Irwin Financial Corp., formerly offered mortgage loans through sales staff located onsite at about 50 credit unions.
In 2005, it sold its credit union lending business to American Home Mortgage, a subsidiary of American Home Mortgage Investment Corp. (News Now March 17, 2005). The community mortgage loan production branches were located in Arizona, California, Colorado, Hawaii and Washington.
Irwin also sold 17 branches and its Carson, Calif.-based loan operation to Pinnacle Financial Corp. (News Now March 19, 2005).
American Home Mortgage Investment Corp. later went bankrupt in August 2007(News Now Sept. 20, 2007).
Suit alleges Chrysler deputy CEO owes CU $609,286
MANHATTAN BEACH, Calif. (9/22/09)--Western FCU, in Manhattan Beach, Calif., is suing Chrysler Group LLC Deputy Chief Executive Officer James Press for $609,286.
The $2 billion asset, Manhattan Beach, Calif.-based credit union is taking legal action against Press because he allegedly failed to make two payments last year on his Birmingham, Mich., home (Bloomberg.com Sept. 20).
Press told the credit union he would be unable to make two pending loan payments of $203,000, according to the lawsuit. The credit union also is seeking attorney's fees.
The alleged debt occurred on an unsecured line of credit Press received while working for Toyota Motor Corp. in Torrence, Calif., said the Los Angles Times (Sept. 18).
In a statement, Press said that troubles in the auto industry resulted in the denial of his request for a bonus payment. That led to his inability to make loan payments to the credit union. Press said he is trying to arrange for a loan against a future bonus with Chrysler so he can pay off his loan to Western FCU.
Also, the Internal Revenue Service placed a $947,409 lien on his home because of unpaid federal taxes, according to documents from court and the Oakland County Register of Deeds, in Pontiac, Mich.
Another news report notes CUs low fees
PHOENIX (9/22/09)--Credit unions' low fees received a mention in a Phoenix television station's consumer report about how college students can build their credit.
One of tips shared by the AZCentral.com's Channel 12 was to consider a secured credit card.
"This is another good way for students to build credit in this environment. Fees can be very high, so look to credit unions since they often have the lowest fees on secured card," said the consumer reporter.
The article continues a recent trend of reporting about credit unions' low fees.
For the full report, use the research link.
Credit is key to Hispanic outreach, says lender
NEW YORK (9/22/09)--When reaching out to unbanked Hispanics, credit unions may want to consider offering them credit, instead of just trying to target them with an account.
James Gutierrez, founder of Progress Financial, which gives small loans to Hispanics with limited or no credit history, said not having a credit score is like "not having a face." He said his business tries to "build that face" by helping Hispanics establish credit scores (American Banker Sept. 21).
Progress Financial has funded $20 million in loans during the past four years. It hopes to begin working with financial institutions, and has applied for status as a community development financial institution.
The company makes uncollateralized loans for $350 to $2,500. The annual interest rate is 36% and average loan terms are nine months. Payments are due biweekly.
Many credit unions already follow the advice. They offer short-term loans under programs such as the Ohio Credit Union League's StretchPay.
The Credit Union National Association (CUNA) has identified Hispanic outreach as a top priority for credit unions. The Hispanic population is expected to reach nearly 103 million by 2050, and about 40% to 55% are unbanked. They access fringe financial service providers such as check cashers, remittance shops, and pawn shops--many of which charge exorbitant fees, according to CUNA research (News Now June 23).
CU 24 hosts Costa Rican delegates for EFT Roundtable
TALLAHASSEE, Fla. (9/22/09)--Credit Union 24, a credit union-owned ATM and point-of-sale (POS) network, is collaborating with delegates from the World Council of Credit Unions (WOCCU) to share best practices and develop effective electronic funds transfer (EFT) strategies within the Costa Rican market.
"We explored many issues within the EFT arena, all of which resulted in both parties learning valuable information and best practices," said Jaime Castro, CEO of Coopeorotina, based in Costa Rica. "Credit Union 24 is an expert in this industry and has member touchpoints throughout the world in the form of ATMs and POS locations.
"The organization has extensive experience that we can hopefully share with all of our credit unions in Costa Rica and implement similar solutions," Castro added.
While ATMs are common in Costa Rica and throughout Latin America, POS is in the beginning stages of infrastructure development.
Topics at the initial meeting between Credit Union 24 and Costa Rican delegates included POS processor and merchant relations, POS interchange income and interchange income models, the current EFT landscape in Costa Rica, and fee-free ATM terminals and POS locations.
"Credit unions around the world are experiencing very similar opportunities and challenges as countries' economies become more dependent on each other, presenting the chance for all of us to learn from each other," said Jim Park, president/CEO of Credit Union 24. "The credit union-owned Credit Union 24 network offers services that are not yet introduced in Costa Rica, so we are thrilled and honored to collaborate and create an open forum to discuss these topics."
WOCCU delegates who attended the first collaborative meeting at Credit Union 24's headquarters Aug. 18, included: Jaime Castro, CEO of Coopeorotina; and Alvaro Vargas, chief of manager compliance; Milton Sancho, information technology manager; and Carlos Zamora, marketing manager, all from Coopenae in Costa Rica.
Heartland CU part of investment education study
MADISON, Wis. (9/22/09)--Heartland CU will participate in an 18-month study that aims to identify the right mix of online education, coaching and follow-up information to encourage proactive investment behavior.
The Madison, Wis.-based credit union said it will immerse as many staff as possible in an investment education project that will aim to motivate their own investing and stimulate investing.
As many as 4,000 credit union staff and volunteers in Wisconsin--including tellers, member service representatives, loan officers, management and others--will participate in the program, which offers 30,000 hours of online investment education, according to the Wisconsin Credit Union League.
"Fear of job losses has pushed Americans to save more now than ever, but saving without regular investing still wouldn't be enough to properly prepare people for their long-term goals," said Sally Dischler, president/CEO of Heartland CU.
"Our nation is in dire straits in part because so many individuals and families are under-prepared for retirement and commonly fail to use other investment vehicles, such as savings programs for health care and higher education," Dischler said.
"So we not only need to get more Americans growing their nest eggs through investing but also figure out--in light of today's extraordinary economic circumstances--how best to motivate consistent investing over a lifetime," she said.
Heartland's participation is part of its ongoing REAL Solutions initiative, which strives to help Wisconsin families improve their financial position over time by encouraging saving and investing, improved creditworthiness and long-term wealth building.
The study is being conducted in partnership with the Puelicher Center for Banking Education at the Wisconsin School of Business, University of Wisconsin-Madison, Precision Information, the Wisconsin Credit Union League, Gov. Jim Doyle's Council on Financial Literacy and the Wisconsin Department of Financial Institutions.
It is funded by a grant from Investor Protection Trust, a nonprofit organization devoted to investor education.
CU System briefs
- WEST ALLIS, Wis. (9/22/09)--A member of Guardian CU in West Allis, Wis., tackled an attempted robber at the credit union Sept. 15 (FOX 21 Sept. 21). The member said he feared for his wife's safety. Senister Smith, 23, was arrested by police and charged with armed bank robbery. To watch a video of the incident, use the link ...
- SEATTLE (9/22/09)--A man accused of robbing 17 financial institutions this summer has been caught by police. Quincy Quinn, 36, was arrested Friday and is being held on a $750,000 bail for 17 counts of bank robbery (Seattle Times Sept. 16). A second suspect who robbed the financial institutions with Quinn has yet to be identified. Three credit unions were included in the robberies--Seattle Metropolitan CU, Tukwila, on June 1; Group Health CU, Seattle, Sept. 3.; and Alaska USA FCU, Shoreline, Wash., on Thursday ...
- SAGINAW, Mich. (9/22/09)--A Saginaw, Mich., credit union is one of several area financial institutions open for business on Sundays to help members who cannot do their banking during the rest of the week. The institutions hope to draw in customers from the surrounding area, according to one bank executive. Team One CU, a $297.3 million asset credit union, is among the financial institutions staying open all week. Team One has three branches inside Wal-Mart stores in Bay City, Clio and Grand Blanc, Mich., that are open noon to 4 p.m. Sundays. Employees are on hand to help open accounts, take loan applications and provide regular banking services. "The nature of Wal-Mart is that it is open 24 hours, seven days a week, " said Jenney Robishaw, Team One marketing specialist. "For us not to be open on Sundays, when a lot of people do their shopping, doesn't make sense," she added (Mid-Michigan Business Sept. 20) ...
- HARRISBURG, Pa. (9/22/09)--Edward C. Ward Jr., board secretary of Norristown Bell CU, Blue Bell, Pa., died Sept. 17, according to the Pennsylvania Credit Union Association (Life is a Highway Sept. 21). Ward was active in the community, serving on the Norristown School Board and was president of the Joint Operating Committee at the Center of Technical Studies ...
Market News
MADISON, Wis. (9/22/09)
- The Group of 20 nations (G-20) is working to finish a plan before this week's Pittsburgh summit to push the U.S., Europe and China to make substantial changes in national economic policies. The changes are designed to create sustained economic growth to pull the world out of the worst recession in decades. The summit could be a test to see if industrialized and developing nations can work as a board of directors for the worldwide economy, analysts said. The focus of the G-20 will be on a U.S. proposal--"Framework for Sustainable and Balanced Growth"--which, if implemented, would consist of actions such as the U.S. trimming its budget deficit and saving more; Europe making structural changes to enhance its business environment; and China relying less on exports to buoy its economy, analysts said (The Wall Street Journal Sept. 21) ...
- A global economic recovery--albeit a tentative one--has started, according to the most recent results of Moody's Economy.com Survey of Business Confidence. Business expectations are strong that conditions will continue to improve throughout the rest of 2009 and into early 2010. Asia and South America show the strongest sentiment among business service firms. The sectors that are the least optimistic are those that work in government and European businesses. The survey notes that while investment in software and equipment is strong, inventory investment and hiring are weaker, although they also are improving. Pricing power is consonant with low rates of inflation (Moody's Economy.com Sept. 21) ...
- For the fifth consecutive month, the index of U.S. leading economic indicators rose in August, resulting in the longest stretch of gains since 2004--which analysts said is a sign that a recovery is under way. In August, the Conference Board's gauge of the economic outlook for the next three to six months increased 0.6%. The number was consistent with forecasts, on the heels of a 0.9% July jump that was bigger than forecast, according to the board's data released Monday. Advances in homebuilding, stock prices and consumer confidence, which are sustaining the leading index, support Federal Reserve Chairman Ben Bernanke's view that the worst recession since the 1930s has likely ended, analysts said. However, tighter credit and rising unemployment indicate that a rebound will be slow and gradual, they added (Bloomberg.com Sept. 21) ...
News of the Competition
MADISON, Wis. (9/22/09)
- How much slack---the unused portion of the economy's productive capacity--there is in the U.S. economy, how quickly it can be taken up and to what extent it matters will be the main focus when the Federal Reserve's Federal Open Market Committee meets today and tomorrow. Although the Fed is not on the verge of raising interest rates or withdrawing the massive amounts of money it has injected into the economy, it is debating the signals it will send about how quickly it will do so, analysts said. At issue is the interplay between slack and inflation because within the Fed there is disagreement about slack, they added. Some believe it will take years for the economy to get up to speed to the extent it would exert upward pressure on wages and prices--which is needed before inflation would become a factor. Until that happens, inflation should remain in check, allowing Fed policymakers to keep interest rates low and work to restore economic growth. However, some within the Fed believe the central bank is putting too much stock into this argument and could end up behind the curve in fighting inflation, analysts said (The Wall Street Journal Sept. 21) ...
- Several recent reports afford differing consumer views about interchange fees. A Visa Inc. survey released last week indicates that consumers are content with the status quo, despite merchant efforts to get them to rally to their side and against payment companies, analysts said. A July survey by Fabrizio, McLaughlin & Associates of 1,000 adult consumers said 83% of respondents believe that if interchange fees were reduced, savings would not be shared with them by merchants. Also, 78% of respondents said retailers received enough benefits from card acceptance to justify the costs. And a report released last week by a trade group--the Merchants Payments Coalition--put forth arguments against interchange--which it describes as a "cash cow" for banks and a burden on merchants. The Credit Union National Association opposes attempts to regulate credit card interchange fees and believes the free market, not the government, should set the user fees (American Banker Sept. 21) ...
Council paper addresses rewards, recognition programs
MADISON, Wis. (9/22/09)--A new white paper from the CUNA HR/TD Council addresses how relevant recognition and rewards programs can keep valued credit union employees.
The paper, "Recognition Programs that Work," covers the importance of rewards and recognitions that engage employees, keep costs down and boost morale. The types of recognition and principles that work and case studies from various credit union human resource managers also are presented.
"When times are tough, the credit union may need to curtail employee salary increases, bonuses, and incentives," the paper said. "Recognition can then become even more important in helping to keep staff engaged in their work."
The paper, written by Neil Bartlett, cites a study of employee experiences during the current economic downturn. The study reveals that employee engagement has declined--with the strongest drop occurring among younger employees. It also noted the importance of immediate recognition for Generations X and Y, who are used to "instant everything," like the Internet and social networking.
The CUNA HR/TD Council serves credit union human resources and training development professionals.
For more information, use the link.
CO-OP, Online Resources join on online banking services
CHANTILLY, Va. and RANCHO CUCAMONGA, Calif. (9/22/09)--Online Resources Corp. and CO-OP Financial Services are partnering to offer Internet banking, online bill pay and other services to CO-OP's credit unions nationwide.
Online Resources' Unite Financial Services Suite will be available to credit unions on CO-OP's Next Generation Network technology platform. More than 1,200 of CO-OP's shared-branch clients will have access to the service.
Online banking and bill pay are critical services for credit unions to offer so they can remain competitive with other financial institutions, according to Carroll Beach, president and chief operating officer of CO-OP Shared Branching.
CO-OP Financial Services offers payment products and services to credit unions. Online Resources powers financial interactions between consumers and the company's financial institution and biller clients.
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