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Filed on October 13, 2009, published the first business day after.
- CARD Act corrections pass House via voice vote
- CUNA-NAFCU meeting on alt. capital today
- FinCEN extends AML outreach to sub-$5B fin. inst.
- Capt. Phillips, hero of ship hijacking, to close CUNA GAC
- CUNA comments on Fed's reimbursement revisions
- CUs good alternative to payday loan trap: Wash. Post
- Transactions to exceed 100 billion for first time
- Belarus plans CU expansion
- Economy's impact topic at Mich. league/regulators' talk
- N.J. league honors CUs for philosophy action, more
- CU System briefs
- Market News
- News of the Competition
- Holiday spending gives parents a chance to teach
- Sweepstakes boosts PayLynx subscriptions
CARD Act corrections pass House via voice vote
WASHINGTON (10/14/09)--The House of Representatives on Tuesday approved by a voice vote H.R. 3606, the CARD Act Technical Corrections Act, which was introduced by Rep. Peter Welch (D-Vt.) last month.
In a statement following the vote, Credit Union National Association (CUNA) President/CEO Dan Mica commended the legislators for their "vital action" that could "save credit unions and their consumer members both money and peace of mind."
However, Mica added that "Senate action is still urgently needed for consumers and credit unions to realize relief," and he encouraged Senators "to take similar action as soon as possible."
While the House vote is a positive move, CUNA's Senior Vice President for Compliance Kathy Thompson encouraged credit unions to continue with their compliance efforts on the 21-day requirement, emphasizing that there is no bill comparable to H.R. 3606 in the Senate at this point.
In a letter sent earlier in the day, Mica urged members of Congress to approve H.R. 3606, which would clarify that the 21 day notification requirements of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act apply only to credit card accounts.
Mica in the letter reiterated an earlier statement that credit unions are "currently reeling from an unintended consequence of the CARD Act."
The legislation, if signed into law, would insert language specifying that Section 106 of the CARD Act, which prevents creditors from treating payments as being late unless the creditor adopts reasonable procedures to ensure that periodic statements are mailed or delivered to the consumer no later than 21 days before the payment due date, only applies to credit card account holders. This section currently applies to all open-end loans, including general lines of credit, lines of credit associated with share draft and checking accounts, signature loans, and other forms of loans, not just credit cards.
Mica said that the CARD Act, as currently written, would prevent credit unions from granting biweekly payment plans to their members, from "sending members consolidated billing statements," and would force them to change payment due dates for members that had previously chosen due dates based on their "specific financial situation."
Mica said that this is "particularly problematic" for Home Equity Lines of Credit (HELOC) "because the due date of a HELOC is often a contractual term."
CUNA believes the provision was originally intended to cover only credit card accounts and was inadvertently changed during the legislative process, and Mica detailed some of the increased costs and reduced services that credit union members may face if the technical corrections to the Credit Card Accountability, Responsibility and Disclosure (CARD) Act were not made in a letter sent late last week.
Following yesterday's vote Mica also acknowledged the work of the Association of Vermont Credit Unions. Prior to the bill's introduction last month, the Vermont league worked closely with with Welch and his staff to discuss the dilemma credit unions face if the 21-day disclosure rule were to apply to all open-end credit.
CUNA-NAFCU meeting on alt. capital today
WASHINGTON (10/14/09)—The Credit Union National Association (CUNA) will meet with the National Association of Federal Credit Unions (NAFCU) today to begin a draft of the groups' letter to the National Credit Union Administration (NCUA) on a joint proposal for reforming alternative capital rules for credit unions.
"It is our understanding that we have reached an agreement with NAFCU on a proposal," said CUNA Deputy General Counsel Mary Dunn Tuesday. CUNA is also working with the National Association of State CU Supervisors on the alternative capital plan.
In the letter to NCUA, CUNA and NAFCU will propose that credit unions be allowed to accept and count as capital funding such sources as:
- Members of the credit union;
- Member sponsors and select employee groups of CUs; and
- Assistance provided to credit unions by NCUA under Section 208 of the FCU Act.
Additional capital would not be federally insured and could pay a higher return to members. The additional capital would also be subordinated to other claims against a credit union and the National Credit Union Share Insurance Fund.
The NCUA is developing its own white paper study on alternative capital issues. First expected to be released in December, board member Gigi Hyland indicated at recent NCUA Town Hall meetings that the agency would likely advance that timing.
Federal lawmakers have indicated to CUNA that agreement on an approach to alternative capital must be reached by CUNA, NAFCU, NCUA, NASCUS, and U.S. Treasury Department for a plan to become a viable topic on Capitol Hill.
FinCEN extends AML outreach to sub-$5B fin. inst.
WASHINGTON (10/14/09)--The Financial Crimes Enforcement Network (FinCEN) is increasing its outreach effort to financial institutions and has announced it will begin gathering information from depository institutions with under $5 billion in assets on their efforts to implementing anti-money laundering (AML) programs.
This outreach effort builds on "knowledge gained from FinCEN's previous program of meetings and informational visits with larger financial institutions," the FinCEN release said.
In remarks accompanying a Tuesday release, FinCEN Director James H. Freis, Jr. said that FinCEN's outreach is an effort to "hear about how smaller-to-moderate size depository institutions are implementing anti-money laundering (AML) programs, the unique challenges facing these institutions, and where additional guidance from FinCEN could be helpful."
According to the release, FinCEN will select no fewer than 15 institutions to examine how they comply with the four components of a Bank Secrecy Act compliance program, which include the designation of a compliance officer, staff training, proper internal controls, and independent audit.
FinCEN recently completed a similar program that focused on the 15 largest depository institutions.
Financial institutions that wish to participate in the program may email outreach@fincen.gov by November 30, 2009. According to FinCEN, the email should contain contact information for their institution, the asset size and geographic location of the institution, and the type of charter that the institution operates under. Financial institutions should also tell FinCEN whether they prefer an on-site visit from FinCEN or will visit FinCEN offices themselves.
For the full FinCEN release, use the resource link.
Capt. Phillips, hero of ship hijacking, to close CUNA GAC
WASHINGTON (10/14/09)--Captain Richard Phillips of the Maersk Alabama, a modern-day hero of the high seas, will be the closing speaker at the Credit Union National Association's 2010 Governmental Affairs Conference this February.
The Maersk Alabama became the center of an extraordinary international drama last 
April when the ship was hijacked by Somali pirates, the first hijacking of a U.S. ship in more than 200 years.
To protect his crew, Capt. Phillips made a conscious decision to put himself in harm's way, offering himself as a hostage. The standoff ended when Navy SEAL snipers saw one of the pirates aim his AK-47 machine gun at Phillips and concluded he was in "imminent danger."
President Obama has praised Phillips' "selfless concern for his crew" and said the courage he displayed through the ordeal is "a model for all Americans." At the GAC, The Maersk Alabama captain will share his compelling story and some valuable leadership lessons gleaned from the experience that are relevant to all business leaders today.
Phillips joins a GAC roster that includes former Federal Reserve Board Chairman Alan Greenspan, economist Larry Kudlow of CNBC's "The Kudlow Report," and a political point/counterpoint that pits former Vermont Governor and Democratic presidential candidate Howard Dean against MSNBC "Morning Joe" host and former Republican congressman Joe Scarborough.
CUNA's 2010 GAC is Feb. 21-25 at the Washington Convention Center in Washington, D.C. Registration and housing lines are open. Click the resource link below for more information.
Use the resource link below for mor 2010 GAC information.
CUNA comments on Fed's reimbursement revisions
WASHINGTON (10/14/09)--An analysis of a final rule addressing amendments to the Federal Reserve's Regulation S, the Right to Financial Privacy Act, is now available on the Credit Union National Association's (CUNA) website.
Regulation S establishes the rates and conditions under which a government agency must reimburse a financial institution for costs incurred in producing customer financial records under the Right to Financial Privacy Act.
The Regulation S revision amends the personnel fees that may be charged for searching and processing document requests to $22 per hour for clerical or technical support, $30 per hour for specialized computer support, and $30 per hour for support from a manager or supervisor.
These rates would be adjusted every three years, beginning on September 30, 2012.
The Fed rules will become effective on July 1, 2010.
For more detailed analysis of the new rules, use the resource link.
CUs good alternative to payday loan trap: Wash. Post
WASHINGTON (10/14/09)--The Washington Post cited a Chicago credit union's payday loan alternative product as an example of innovation by the private sector in serving the unbanked in an article published Tuesday.
North Side Community FCU offers members a six-month, $500 loan with a 16.5% interest rate. The credit union has made 5,000 loans since it introduced the loan several years ago, the Post said.
The credit union doesn't profit from its payday lending alternatives, but it hopes to help place members into good financial standing so they can then apply for profitable products--such as auto loans, credit union manager Ed Jacob told the Post.
The article noted Congress is debating over the creation of a Consumer Financial Protection Agency, which is slated to provide federal oversight of the financial industry. Some industry representatives are opposed to the agency, saying that innovation is the key to reform, instead of legislation, the Post said.
Many credit unions offer payday lending alternatives for their members. Several states, including Michigan, Arizona, Ohio and others have passed or are working on pieces of legislation that would restrict payday lenders, which routinely charge borrowers high interest rates.
A payday lending group issued a release Tuesday indicating that the premise of the Post's article--that individuals who borrow from payday lenders are not banked--is inaccurate. Borrowers who receive loans from payday lenders are considered "banked," the group said.
To read the full Post article, use the link.
Transactions to exceed 100 billion for first time
LAKE BLUFF, Ill. (10/14/09)--Credit unions will have to plan for members' greater electronic payment use because the number of checks and electronic transactions for debit cards, credit cards and automatic payments is expected to exceed 100 billion by the end of the year--the first time in U.S. history, according to an Illinois financial industry research firm.
"[Based on the data], we believe there will be implications to the bottom line of financial institutions in pricing, fee structure and service delivery," said Mike Moebs, CEO of Moebs Services, a research firm in Lake Bluff, Ill.
The volume represents all transactions from consumers and businesses. It is based on research and projections conducted by Moebs Services, which used Federal Reserve data ranging from 1979 to 2006.
Transactions in 2009 are expected to break down as follows:
- Debit card transactions, 33%;
- Paper checks, 24%;
- Credit card transactions, 23%; and
- Automatic payments, 20%.
One interesting item about the projected 100 billion transactions is that "they do not represent an increase in U.S. consumer spending, which began declining in 2008 and is still not back on track as we approach year-end," Moebs said.
"This research indicates that consumers are doing significantly more transactions for significantly fewer dollars than in the past. This may be due to easy electronic payment methods replacing cash," he added.
The changes in payment trends mean that credit unions and other financial institutions will see reduced overdraft revenue from consumers using fewer paper checks. Paper check volume has dropped to 25% of transactions from 85%, Moebs said. Financial institutions also will have to secure their online electronic payment systems to prevent fraud, and ensure that their electronic communications can manage the increasing volume of transactions without errors, Moebs added.
Belarus plans CU expansion
MINSK, Belarus (10/14/09)--Elena Koleda has turned to the World Council of Credit Unions (WOCCU) and the National Association of Cooperative Savings and Credit Unions (NACSCU), WOCCU's member organization in Poland, for assistance in developing more credit unions in her native Belarus.
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| Elena Koleda (left), head of Belarus' credit union trade group, stresses the importance of credit union growth to Paweł Grzesik of the National Association of Cooperative Savings and Credit Unions. (Photo provided by the World Council of Credit Unions) |
The efforts would help the Eastern European country's existing eight credit unions grow as a movement to a size necessary to become a more formidable influence in serving Belarus' population.
"By forming an association, Belarus' credit unions were able to brand their institutions and pool their resources to reach the greater levels of efficiency necessary to grow a credit union movement," said Brian Branch, WOCCU executive vice president and chief operating officers. Branch was in Belarus last week to work with the country's credit unions and speak to lawmakers about drafting legislation supporting financial cooperatives.
At the urging of the United Nations, WOCCU first looked into developing credit unions in Belarus in 1997. During subsequent years, NACSCU's foundation provided support necessary to develop the country's first financial cooperatives. Belarus' trade association was formed in 2007.
Currently, the country's credit unions serve professionals and small business owners in the capital city of Minsk, as well as rural communities across the country. Many of the movement's leaders are self-employed small business owners who felt neglected by the country's banking system. By turning to a cooperative model, they can be assured they will have a voice in the financial activities that affect their enterprises, said Paweł Grzesik, plenipotentiary head of NACSCU's Warsaw office. Grzesik joined Branch during his visit.
The Belarus movement "is one of the best examples of genuine bottom-up efforts to build a civil society in Europe today," Grzesik said.
During their visit, Branch and Grzesik participated in an international financial conference designed to raise the profile of credit unions among the public, lawmakers and the press. They stressed credit unions' role in helping consumers and small business owners gain access to financial services at more affordable rates. Also, Grzesik is helping Belarus National Bank officials develop credit union-specific regulations that will enable the movement to grow.
"[National Bank] Deputy Chairman Vasily Matyushevsky believes that the assistance of WOCCU and NACSCU is critical to developing the credit union sector in Belarus," Grzesik said. "He encouraged our further involvement in building the capacities of both the credit unions and their association through training and study tours to neighboring countries, including Lithuania and Poland."
Because of geographic proximity, NACSCU will lead the development in Belarus, said Branch. "We have offered NACSCU our support due to its success in assisting other emerging movements throughout the region," he added. "Belarus is one more example of our two organizations' abilities to work together to foster credit union development on a global scale."
Economy's impact topic at Mich. league/regulators' talk
LANSING, Mich. (10/14/09)--The Michigan Credit Union League (MCUL) met with senior officials of the Credit Union Division of Michigan's Office of Financial and Insurance Regulation (OFIR) last week to discuss concerns and trends in the state's credit union industry during a tough economic period.
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| Michigan Credit Union League Vice President of Information Services Mike DeFors discusses the economy's impact on Michigan credit unions with Office of Financial and Insurance Regulation Deputy Commissioner Roger Little at an Oct. 5 meeting. (Photo provided by the Michigan Credit Union League) |
League officials met with OFIR Deputy Commissioner Roger Little and Assistant Director John Kolhoff Oct. 5 (Michigan Monitor Oct. 12). They discussed several topics, including proper underwriting expectations, recordkeeping and reporting of modified residential loans using generally accepted accounting principles (GAAP).
OFIR reported that credit unions' capital levels appear fairly stable for Michigan credit unions. However, the agency has seen an uptick in the "watch list" and expects that trend to continue when September call report numbers are released.
OFIR also expressed concern about the growth of commercial loans taken on by credit unions after the borrower had been previously turned down by commercial banks.
The meetings "continue to prove effective in keeping abreast of where Michigan credit unions stand with our state regulator," said MCUL Vice President of Information Services Mike DeFors. He termed the conversation with Little and Kolhoff as constructive and "about the positives and areas of concern for credit unions as economic times remain hard. This kind of dialogue is important in keeping lines of communication open between the regulator, the MCUL and all Michigan credit unions."
The meetings help raise awareness of issues useful to league representatives visiting credit unions and planning educational sessions and articles.
During the meeting, Little reiterated that CEOs should contact his office to discuss any unresolved differences regarding exam issues or unprofessional examiner conduct.
The league also scheduled a similar meeting for this week with Andrew Healey, supervisory examiner of the National Credit Union Administration, and said similar meetings with credit union regulators will take place next spring.
N.J. league honors CUs for philosophy action, more
ATLANTIC CITY, N.J. (10/14/09)--More than 700 credit union leaders attended the New Jersey Credit Union League's (NJCUL) annual meeting and convention Sept. 22 in Atlantic City to discuss credit union issues and to honor several credit union leaders.
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| A panel discussion with, from left, Jim Blaine, president/CEO, State Employees' CU, Raleigh, N.C.; Paul Gentile, president /CEO, New Jersey Credit Union League; and Dennis Dollar, former chairman, National Credit Union Administration, discussed overdraft protection, the future of the corporate credit union system, and the Community Reinvestment Act at the New Jersey league's 75th annual meeting and convention, Sept. 20-22 in Atlantic City. (Photo provided by the New Jersey Credit Union League)
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The conference was attended by 85 credit unions and featured 69 vendors (The Weekly Exchange Oct. 5).
The 2009 NJCUL award-winners were announced at the convention. They included:
- Desjardins Youth Financial Literacy Award--First Financial FCU, and Raritan Bay FCU, Sayreville;
- Dora Maxwell Social Responsibility Recognition Award--Jersey Shore FCU, Northfield;
- Louise Herring Award for Philosophy in Action --Jersey Shore FCU;
- CEO of the Year--Ann South, president/CEO, Novartis FCU, East Hanover;
- Alexander Kosobucki Promotion Award--First Financial FCU, Toms River; and Hamilton (N.J.) Horizons FCU;
- Catherine Miller Newsletter Award--Affinity FCU, Basking Ridge; Campbell Employees FCU, Cherry Hill; and Hamilton Horizons FCU; and
- The Website Award--Aspire FCU, Clark; and Hamilton Horizons FCU.
CU System briefs
- HARRISBURG, Pa. (10/14/09)--Pennsylvania Gov. Ed Rendell signed the state budget Friday night. The $27.8 billion plan ends a 101-day state budget stalemate that prompted credit unions to offer special assistance programs to their members affected by the impasse. The plan is more than $500 million less than last year's $28.3 billion budget. A key provision involving table games legislation is expected to pass this week, said the Pennsylvania Credit Union Association (Life is a Highway Oct. 13) ...
- WESTBORO, Mass. (10/14/09)--Tina M. Sbrega has been appointed to the Massachusetts Credit Union Share Insurance Corp. board of directors (Telegram.com Oct. 11). Sbrega is president/ CEO of GFA FCU, a $298 million asset credit union based in Gardner. It has eight branch offices. Sbrega also is a trustee for Mount Wachusett Community College and Heywood Hospital, both based in Gardner ...
- PHOENIX (10/14/09)--Desert Schools FCU and Phoenix police are seeking the public's help in identifying a man who is running scams against financial institutions and businesses in the area. The $3.346 billion asset credit union said Monday a man has entered three of its branches asking to exchange $20 bills for larger denominations in multiple transactions. He then claims he was short-changed and tries to get that money from the tellers. He has hit two branches in Mesa and one in west Phoenix. (Phoenix Business Journal and abc15.com Oct. 12) ...
- SYRACUSE, N.Y. and ROCHESTER, N.Y. (10/14/09)--Syracuse (N.Y.) FCU said its members voted Oct. 7 to merge with Summit FCU, Rochester, N.Y. On April 1, the credit unions will do business under the name of The Summit--which will have 80,000 members, 18 locations and $625 million in assets (The Post-Standard Oct. 10) ...
- TAMPA, Fla. (10/14/09)--Invest Financial Corp.--a full-service broker-dealer based in Tampa--appointed former CUNA Mutual Group executive Steve Dowden to be Invest's new president/CEO. Dowden succeeds Lynn Niedermeier who retired in July. Dowden was senior vice president of distribution and president/CEO of CUNA Brokerage Services, quarterbacking a sales force of 550 advisers and responsible for all sales in CUNA Brokerage's asset accumulation division (Tampa Bay Business Journal Oct. 12) ...
Market News
MADISON, Wis. (10/14/09)
- For the week ending Oct. 10, U.S. chain store sales increased 0.6%, marking the third consecutive weekly gain, according to the International Council of Shopping Centers (ICSC) sale index. The index is still below its late summer levels, but that is not unusual for this time of the year, analysts said. Sales were up 1% on a year-ago basis--close to their highest level in a year. Colder-than-normal weather may be part of the gain, analysts said. Despite the end of the recession, consumer fundamentals are mostly weak and unfavorable to spending--with the biggest and most prominent drag being job losses, analysts said (Moody's Economy.com Oct. 13) ...
- The U.S. Supreme Court said it will hear former Enron CEO Jeffrey Skilling's appeal on his conviction of heading up fraudulent activities that led to the implosion of Enron--the biggest global energy trader. In 2006, a jury found Skilling and Enron Chairman Kenneth Lay guilty of deceiving analysts, employees and investors about the company's eroding financial condition through the use of phony accounting practices and off-the-books partnerships. If the Supreme Court rules in favor of Skilling, he could be granted a new trial, analysts said (Bloomberg.com Oct. 13) ...
- For the first time in three days, Treasuries rose Tuesday, led by gains in 10-year notes. Investors are betting that the Federal Reserve will maintain interest rates at an all-time low until late in 2010, and that the central bank also will be ready to buy U.S. debt, analysts said. A precondition for increasing the target interest rate from near-zero would be a declining unemployment rate, said James Bullard, president of the Fed Bank of St. Louis. Also, the dollar dropped to its weakest level against the euro since before the Lehman Brothers bankruptcy. This indicates a falling apart of demand for the dollar as a refuge, analysts said (Bloomberg.com Oct. 13) ...
News of the Competition
MADISON, Wis. (10/14/09)
- With U.S. banks preparing to release their third-quarter reports this week, earnings are anticipated to still be significantly down--by roughly 30% from the previous year, analysts said. About 40% of lenders could record a quarterly loss, according to a report from Sandler O'Neill & Partners. The third-quarter recovery that picked up its pace also kept bank losses from getting much worse, analysts said. Huge losses on credit cards and other consumer loans--although high--are growing at a slower pace than in previous quarters, analysts said. Also, home-mortgage losses will be postponed due to federal mortgage modification programs and states' efforts to stem foreclosures, they added. "There is more pain to come, but [banks] have enough Band-Aids and tourniquets to slow or cut off the bleeding," said David A. Hendler, a financial services analyst at CreditSights (The New York Times Oct. 13) ...
- Bank of America (BofA) will hand over documents concerning the legal advice it received during its purchase of Merrill Lynch & Co. It reached an agreement with the Securities and Exchange Commission (SEC) on the documents, the SEC said Tuesday. The agreement will provide investigators with "previously privileged details of BofA's consideration of whether to involve the material adverse change clause" in its purchase of Merrill, "decisions about whether to disclose impairment of goodwill of Merrill Lynch" and other financial results for Merrill during the fourth quarter 2008, the SEC said. In a related development, Kenneth Lewis, BofA CEO, is taking heat over his retirement package. The Service Employees International Union sent a letter to Kenneth Feinberg, the White House special adviser on executive compensation, asking him to stop any retirement payments to Lewis. On Oct. 1, Lewis announced he would retire at year-end. The union's letter called Lewis "one of the chief architects" of the financial crisis and takes issue with the way BofA handled loss disclosures and bonus payments at Merrill Lynch & Co. (The Wall Street Journal and American Banker Oct. 13) ...
- In the week ended Sept. 30--the latest week for which figures are available--U.S. banks' commercial and industrial loans dropped $12 billion to roughly $1.396 trillion, the Federal Reserve Board said Friday. This follows a $7.4 billion decrease the previous week. In the most recent weekly data available, jumbo certificates of deposit increased $13.9 billion to about $1.890 trillion, after rising $14 billion the previous week. Revolving home equity loans dropped $1.6 billion to $601 billion, after increasing $100 million the previous week (The Wall Street Journal Oct. 9) ...
- CIT Group Inc. said Chairman/CEO Jeffrey Peek plans to resign. After committing $2.33 billion in taxpayer funds in December to keep CIT solvent, the U.S. government rejected a second bailout for the lender. CIT turned to bondholders after being denied access in July to a program--run by the Federal Deposit Insurance Corp.-- to sell U.S. backed debt. Peek joins Kenneth Lewis of Bank of America Corp., and John Mack of Morgan Stanley as financial leaders who have said in the past month that they will step down (Bloomberg.com Oct. 13) ...
Holiday spending gives parents a chance to teach
MADISON (10/14/9)--Entertainment is an important item for the family budget, even (and perhaps especially) in hard economic times. Holidays popular with children can be a good opportunity for you to model sound money management while rewarding and renewing family bonds.
This holiday season, besides having a good time with your children, treat them to some painless budgeting lessons.
Here are some ideas that also can work for other special events such as vacations from Philip Heckman, of the Center for Personal Finance at the Credit Union National Association.
- Include your children in spending decisions. Decide the total amount you can afford to spend on the event. Then ask your children to help you decide how much can go for presents, food, souvenirs and so on. Make it clear that you have the final vote, but by giving them a voice, they'll be more likely to accept spending limits.
- Include your kids when shopping for supplies. Shopping consists of many tasks that are appropriate for children of different ages. For example, older children can help calculate what's needed for homemade decorations, search for coupons and compare prices. Younger children can help locate items in the store, hunting by picture if they can't read labels. This teaches what things cost and how to find cheaper alternatives.
- Offer financial incentives. Allow your children to "go over budget" by spending their own savings for event extras. This teaches them to plan ahead and use limited resources wisely. It also gives them practice in making financial decisions that affect them directly. And if your kids help you come in under budget, split the surplus with them.
- Include some free or low-cost activity. Telling stories around a candle or baking cookies demonstrates that it's not necessary to spend a lot of money to have fun. And when you repeat inexpensive activities year after year, they can become family traditions as well as some of your family's best lasting memories.
Sweepstakes boosts PayLynx subscriptions
ST. PETERSBURG, Fla. (10/14/09)--PSCU Financial Services, a credit union service organization, reported a 16% increase in new PayLynx subscribers. It enrolled among 142 enrolled financial institutions during a promotion that ran June 1 to July 31.
There was also a 7% increase in subscribers making more than three online payments per month, the company said.
The promotion, which offered grand prizes of $10,000, a $1,500 travel certificate, and two Garmin global positioning system (GPS) units valued at $500 each, increased 73% in participation compared with a similar contest last year. PayLynx is an online bill payment product that has more than 913,000 subscribers at 454 financial institutions, including credit unions.
There was no cost for the program and each participant earned $100. Each subscriber who made three online bill payments during the promotional period was entered into the contest.
"We achieved a 19% lift in total online bill payments and grew our subscriber base by 21.6% during the 2009 promotion," said Wayne Schneck, associate vice president of marketing and business development at McCoy FCU, Orlando, Fla.
McCoy earned the $10,000 grand prize. Visterra CU, Moreno Valley, Calif., won the $1,500 prize. Bank Fund Staff FCU, Washington, D.C., and Georgia's Own CU, Atlanta, each earned a GPS.
"A sweepstakes that offers a $10,000 grand prize certainly attracts members' attention and is an excellent way for financial institutions to expand subscriber growth and activation for our PayLynx program," said Cindy McGinness, PSCU Financial Services director of e-commerce relationship development. "We also helped financial institutions promote the sweepstakes by providing marketing files for use on websites that were created in partnership with Fiserv."
Fiserv, based in Brookfield, Wis., powers the PayLynx platform.
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