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6 of our credit union CEO’s will discuss products and services that worked for them!
This was forwarded to me from one of our firefighter credit unions and I thought I would share it with everyone.
Credit Union Colleague,
As one of the Nations 161 credit unions specifically organized by the police or fire departments of your communities please accept this email as heartfelt thank you to your credit union members who work tirelessly to protect communities across the USA.
We at the Filene Research Institute are inspired by the efforts of your credit unions to serve these brave individuals and enable them to achieve their financial dreams.
On the 13th Anniversary of 9/11 we do not forget the 343 firefighters, 23 NYPD officers, and 37 Port Authority police officers who put themselves in harms way, and lost their lives to rescuing the victims of our Nation's worst terrorist attack.
In memory, Mark
Mark C. Meyer, J.D. | CEO | Filene Research Institute | 612 W. Main Street, Suite 105, Madison, WI 53703 | (o) 608.661.3741 | (m) 608.513.1107 | filene.org
These best practices will ensure your next merger won’t be your last.
By Aaron Pugh
With six mergers completed since 2009 and three more on the immediate horizon, Credit Union of Southern California ($781.8M, Whittier, CA) — commonly referred to as CU SoCal — attributes just over half of its branch footprint and about 70% of growth achieved in the past five years to merger activity.
On the opposite side of the country, The Summit Federal Credit Union ($723.7M, Rochester, NY) averaged close to one merger a year between 2003 and 2011, increasing its assets by more than $445 million and adding 12 branches in three regional markets beyond its original Rochester and Seneca Falls footprint.
Despite the prevalence of this activity, neither of these institutions has ever actively sought out any merger partner. Instead, they’ve been responding to increased demand from small-to-mid-sized credit unions for cooperative alliances, both for survival and for the enhanced economies of scale a bigger sandbox can provide.
There’s no doubt that mergers can boost key metrics in a short amount of time, but according to these two cooperatives, those who pursue such opportunities out of a one-sided growth agenda usually falter as a result.
“We weigh every merger request we receive according to a number of factors, but it all boils down to two key questions: Does the merger ensure the financial safety and soundness of our credit union, and does it provide value to the members of both organizations?” says CU SoCal CEO Dave Gunderson.
“We’re not in business to put other credit unions out of business,” says Michael Vadala, CEO of The Summit. “But the industry is changing and in those cases where a merger is the right answer, you need to know how to do it and do it well.”
Below, both credit unions share seven key ways to stand out as an attractive merger partner and ensure those alliances don’t just benefit one party but rather strengthen the entire cooperative system.
Continued>>7 Secrets For Merger Success | Credit Unions
Cheer Up and Change: The Demographic Mandate
At a conference I recently attended Monday morning started off with a great session by demographer and futurist Ken Gronbach, who laid out his predictions on where we’re going and what we can expect as demographics change. I was pleasantly surprised that the future isn’t sounding as bleak as the news might have you believe.
Gronbach offered lots of predictions for where our society and our world is headed. His predictions were given with a purpose: To help associations build their vision and plan for the future. As Gronbach stressed, "Wait and see is not a plan."
I’ve decided to arrange this recap into a list of my takeaways rather than a narrative recap. I hope you get as much out of this information as I did!
Things to Expect:
Big Changes in Retail: Gronbach explained that Generation Y, who are now ages 10-29, are a generation that shops primarily online. We can expect to see a shift in retail, especially away from the big box stores of today.
3-D Printing: I’ll be the first to say that this technology blows my mind. I don’t get it, but Gronbach said that I should. He also said manufacturing industries especially need to watch out for this trend.
Remote Everything: From robotic surgery to drone aircraft operated from another continent, Gronbach says this is just the beginning in terms of remote operations. This also applies to education, and colleges are already seeing a declining enrollment, supporting this trend.
Elderly on Steroids: With improving healthcare in our country, Gronbach says in the near future it won’t be unheard of to find people living to 120. Is our society ready to support the needs of this growing group of elderly people? (Gronbach says my home state of Florida should especially be watching out.)
Cars that Drive Themselves: Now, call me cynical but I don’t see this. I was promised flying cars back in kindergarten and those haven’t come to fruition, maybe that’s the root of my cynicism. Gronbach says that these cars aren’t far away, and explained that we can expect them to make us safer on the roads.
Homogenization of Culture: Today 35 percent of the U.S. market is a minority. That statistic paired with the statement by Gronbach that Generation Y seems to be the first that does not see race or color will level the playing field for minorities, leading to a more homogenous culture.
Smaller Housing and Hotels: Walk around your nearest IKEA store and Gronbach says you’ve just seen the future. He says homes will be smaller, more energy efficient and will feature more sophisticated security systems. He also predicted a rise in new home construction as more Gen Y members leave home, get married and start their own families.
Entertainment at Home: Think Netflix and video game culture. Gronbach says fewer of us are leaving our homes for entertainment like movies and even recreation like riding bikes. This may give us a clue as to where the obesity epidemic he also mentioned is stemming from.
Car or Internet: Which would you choose? Perhaps not surprisingly Gronbach says if given this choice most young people today would choose the Internet. In fact, 25 percent of teens who are eligible to get their drivers licenses, don’t. (Interestingly, Gronbach took this opportunity to point out that teen pregnancy today is on a decline.)
Succession Planning: "Baby Boomers can’t just walk out," Gronbach said, pointing to the huge amount of knowledge, both experiential and operational, that this generation is holding on to. Sharing that knowledge with the new generation, is key to the survival of our businesses and industries, he said.
Recruitment Strategies: Interestingly, the goals of Generation Y and the perks that attract them are being able to help others, being a good part, and building a successful marriage. Goals like being rich and famous fall lower on the list. Gronbach also stressed that Gen Y, "will not work for mean people." It’s important to know what this generation is looking for if you’re going to attract the best and the brightest.
Immigration Reform: While many people think Latin America when they think of immigration reform in our country, Gronbach says to look to the east instead. He predicts rising numbers of immigrants from the European Union and Asia. The typical look of these immigrants is different than you might imagine, with many being rich, young entrepreneurs.
I’ve thrown a lot at you here but I thought they were all interesting points. Which one jumped out at you most? I’d love to hear what you think about these future predictions.
They say never bite the hand that feeds you. But that seems to be what Space Coast Credit Union did with an auto lending campaign attacking interest rate markups charged by dealerships. The credit union had to do a big U-turn after the auto industry protested, with some car dealers decrying the marketing initiative as a smear campaign.
Few consumers are aware of “rate markups.” A rate markup (sometimes referred to as “buy-ups” or “dealer reserves”) occurs when a car buyer arranges for bank or credit union financing at the dealership, and the rate they get is marked up. It is a fairly common practice, encouraged by the indirect lending policies of both banks and credit unions, but some people feel these markups are “kickbacks” to car dealers. The fact remains that most consumers have never heard of rate markups, and don’t know what they are.
Space Coast Credit Union doesn’t engage in rate markups, instead choosing to compensate its dealer partners using a flat fee. So they decided to create a consumer awareness and advocacy campaign calling attention to the issue. According to the credit union, rate markups average around 2.5% and gouge consumers for hundreds of millions of dollars. Space Coast wanted to get the word out, figuring they could grow their auto loan portfolio.
The credit union’s strategy made sense, and it sounds reasonable enough: build a marketing campaign that exploits and leverages a relevant competitive advantage. But-- Continue Reading>>Credit Union Kills Auto Loan Campaign After Dealers Cry Foul
By Wayne Rash | Posted 2014-06-16
NEWS ANALYSIS: A new report shows up to 70 percent of U.S. credit cards will have EMV chips by 2015. But merchants must convert POS terminals and train staff to use them.
The good news for companies that accept credit cards is that most banks will be issuing credit cards with EMV chips well before the coming liability shift in October 2015.
The bad news is that merchants that don't accept EMV (Europay, Mastercard and Visa) chips will have to absorb the cost of fraudulent transactions due to counterfeit credit cards.
Previously, banks had absorbed those costs. EMV chips are microprocessors embedded in cards that make counterfeiting the cards virtually impossible.
That means that companies that accept credit cards at point-of-sale (POS) terminals will have to either buy new terminals or they'll have to enable the EMV chip readers on the terminals they already have.
The surprising news is that the majority of card issuers will use chip-and-signature cards rather than chip-and-PIN cards. Chip and signature cards protect against counterfeit credit and debit cards, but not against fraudulent use of lost or stolen cards. Continue Reading >>> 70 Percent of U.S. Credit Cards to Include EMV Chips by 2015
Are you aware of a volunteer, attending this years conference, at your credit union who is or has done amazing things for your credit union and the credit union movement? If so, we want to let you know that you still have time to nominate them for the NCOFCU Volunteer of the Year Award.
The Winner will be honored with a complimentary registration, for our 2015 conference in Nashville TN., at our reception and dinner on October 10th, 2014
We encourage credit union supporters like you to nominate your best and brightest for the award.
The deadline is Sunday August, 31st. If you have any questions or comments on the nominations process, please contact me at 305-951-3306 or firstname.lastname@example.org.
I hope to see you at the conference this year!
The grim toll has skyrocketed from the 1,140 cancer cases reported last year.
In its latest tally, the World Trade Center Health Program at Mount Sinai Hospital counts 1,655 responders with cancer among the 37,000 cops, hard hats, sanitation workers, other city employees and volunteers it monitors, officials told The Post.
The tragic sum rises to 2,518 when firefighters and EMTs are added. The FDNY, which has its own WTC health program, said Friday it counts 863 members with cancers certified for 9/11-related treatment.
Continue reading full story at >> 2,500 Ground Zero workers have cancer | New York Post
By Nicholas Ballasy July 22, 2014
LAS VEGAS – Credit union executives said Tuesday their institutions are making changes in preparation for a potential interest rate increase.
“We’re trying to stay shorter and shorter. Interest rates have nowhere to go but up so we’re holding everything pretty short so that when the rates do change, we can get into the longer term loans with better rates to match where they’re headed,” said Richard Smith, chairman of the board at the $376 million ProFed Credit Union in Fort Wayne, Ind., at NAFCU’s annual conference.
ProFed has also been selling off long term mortgage loans as another way to prepare for rising interest rates, he said.
“We’re selling those off and Freddie Mac is buying a lot of those. They are paying about 102% on those upfront so we’re staying short that way,” he said. “We’re still helping the members out when they come in wanting a mortgage, 15 or 30 years. We’re still doing the servicing so they feel like it’s still with us but at the same time we’ve gotten it off the books.”
CU Times asked Smith if his credit union decided to sell off long-term assets due to recommendations from its examiner.
“We started doing that on our own. The lead examiner-
Continued > >>Credit Unions Preparing for Rising Rates: Onsite Coverage
Facebook Calculator Drives Auto Loans for Chicago Credit Union
by Mary Wisniewski
JUL 17, 2014 4:20pm ET
As financial institutions struggle to find revenue-generating social media strategies, a Chicago credit union has achieved a surprising level of success from a simple tool: a loan calculator app on its Facebook page. Calcubot, the name of the calculator tool that connects to one running on its website, has helped generate nearly $1 million of auto loans for Alliant Credit Union since its November debut.
The tool, which lets people determine their monthly loan payments and optionally share them with friends and family, drove 478 prospects to Alliant's online auto loan application within the first four months, when the credit union actively promoted the tool on its website's homepage and through posts written on its social media channels. The credit union plans to prominently feature Calcubot again in coming months to grow sales leads.
"We are looking to increase engagement with social media and to drive more traffic to loan applications," says George Balchev, manager of digital channels for Alliant, an $8.1 billion-asset financial institution.
Alliant Credit Union, which has more than 270,000 members, created its Facebook page in 2009 and now counts more than 13,000 page likes.
Calcubot, created by a Berkeley, Calif.- based company called Shastic, estimates loan payments once a person enters in information like the selling price and down payment. It directs those interested to websites where they can apply for a loan.
Research shows the majority of U.S. car buyers use Facebook in their research.