Firefighter Credit Union Newsroom

Misperceptions are steering consumers toward non-bank payment apps, but CUs can win them back, new Javelin research finds. Getting paid and paying others in real-time is a benefit that consumers want in their lives. But they may not fully understand what real-time payments are, how they work or who actually offers them, according to a new white paper produced by Javelin Strategy & Research and commissioned by the Brookfield, Wis.-based core processor and fintech Fiserv. That’s keeping credit unions and other financial institutions from reaching their full potential in the real-time payments services space, according to the paper, as consumers’ misperceptions are steering them toward nonbank payment apps such as PayPal’s Venmo and Square ’s Cash App. The white paper, based on a June 2021 survey of 3,711 consumers, revealed that 60% of people do not believe that “real-time payments” are truly instantaneous, mistakenly thinking that “money will not be available for hours or even days

WASHINGTON–Three federal bank regulatory agencies today issued a statement summarizing their interagency "policy sprints" focused on crypto-assets and providing a roadmap of future work related to crypto-assets. The Federal Reserve, the FDIC and the Office of the Comptroller of the Currency noted that the statement specifically describes the focus of the preliminary work conducted through the sprints undertaken by the agencies. It also summarizes the agencies' plan to “provide greater clarity throughout 2022 on whether certain crypto-related activities conducted by banking organizations are legally permissible, and related expectations for safety and soundness, consumer protection, and compliance with existing l

ARLINGTON, Va.—Waiting on housing market conditions to change before taking the plunge on a new home? You might want to find a comfortable chair in your current abode, according to one analyst, who said the market is likely to remain frothy for some time to come. Curt Long    Existing home sales rose 0.8% in October to a seasonally adjusted annual rate of 6.34 million units, a 5.8% decrease in sales versus a year ago. NAFCU's Curt Long noted that sales “marched on in October” following the rise in September. "Outside of last winter's surge which made up for missed sales following COVID-19's arrival, present sales are at their highest level since 2006," said Long, NAFCU's chief economist and vice president of research. "According to Freddie Mac, the average rate on a 30-year mortgage increased by 17 basis points in October, but that has not made a meaningful dent in sales." Sales rose in two regions this month. The Midwest saw the largest rise, ga

DORCHESTER, Mass.–John (Bernie) Winne, president/CEO of Boston Firefighters Credit Union (BFCU), has announced plans to retire effective June 30, 2022. John (Bernie) Winne Winne has spent 40 years serving in the credit union industry, with the last 20 as president/CEO of the $394-million BFCU. During his tenure he has overseen asset growth from $75 million, according to the Cooperative CU Association, which first reported the retirement. Prior to being named to lead Boston Firefighters, Winne served as EVP of Members Plus Credit Union (the former Boston Edison Credit Union). During his career, Bernie has served as a board member and chairman of the Massachusetts Credit Union League and the Cooperative Credit Union Association, served on several CUNA committees and has participated as a member of the CFPB Credit Union Advisory Council, the CCUA reported. A ‘Great Leader’ “Bernie has been a great leader not only at BFCU, but in the credit union industry during his entire tenure as C

LAKE FOREST, Ill.—The overdraft market has changed, which means credit unions must adapt their OD policies if they expect to keep members—especially young members—using their product, says one economist.  Michael Moebs, economist and CEO at Moebs Services, pointed to all of the developments within the overdraft market this year—big banks eliminating overdrafts and leading many more institutions to follow suit, including a half-dozen credit unions; a focus by Washington and consumer groups on overdrafts; the effects of COVID-19 on consumer usage of the service, and continuing lawsuits against financial institutions over overdraft practices. Despite the evolution in the market in the last year especially, Moebs emphasized overdrafts are not going away and that annual OD revenue among all financial institutions should climb back to pre-COVID levels. Moebs outlined what credit unions need to do to stay in the overdraft business, serve their members well, and bolster the bottom lines. “COVI

To “support more equitable banking and increase giveback dollars” for members, the Wausau, Wis.-based Connexus Credit Union said it slashed its overdraft and non-sufficient funds (NSF) fees this week by 86%. In a statement, Connexus said it reduced overdraft and NSF fees from $29.95 to $4 per occurrence and will cap the fees to two per day. The credit union said this decision “is consistent with Connexus’ commitment to investing in their members and prioritizing their financial goals. The reduction makes Connexus’ fee structure one of the most competitive in the nation and was designed to keep more dollars in the pockets of member-owners.” “Our biggest priority is doing what’s in the best interest of our members,” SVP of Member Experience Claire Meney said. She continued, “And this is an impactful and tangible way to do so. We strive to provide exceptional experiences and foster prosperity for those we serve, and reducing or eliminating fees will enable members to keep and manage more

MIAMI –A new survey just reinforces what many in credit unions are seeing clearly—75% of global consumers are now more likely to use digital banking in the next few months than before the pandemic. That’s according to The Financial Tribes You Need to Know report from Mambu, a provider of SaaS could banking solutions. The report reveals 61% of consumers globally have made greater use of digital banking services over the last 18 months and two in five (41%) have started using digital banking services for the very first time because of the pandemic. The report, which the company said is the latest in its “Disruption Diaries” series, surveyed 4,500 consumers globally and identifies five emerging financial “tribes'' that credit unions need to know about in a post-pandemic world. The Key Groups The key consumer groups, according to Mambu, include: Techcelerators. “Recent converts to the world of digital banking who have adopted digital services amid physical branch closures. Th

ANN ARBOR, Mich.—In a development that should raise alarms, for the third year in a row the nation’s credit unions have not only again fallen behind banks but hit another “historic low” when it comes to consumer “satisfaction” in one respected national survey. Credit unions fell 1.3% to a score of 76 on a 100-point scale in the 2021 American Consumer Satisfaction Index (ACSI) conducted by the University of Michigan in conjunction with the American Society for Quality in Milwaukee and CFI Group in Ann Arbor, Mich. The nation’s banks achieved a score of 78, their same score as in 2020. After seeing their long-time edge over banks sharply erode in 2018 , credit unions first fell behind banks on the issue of satisfaction in the ACSI survey in 2019, as reported here . America’s consumers remained less satisfied with credit unions than banks in the 2020 survey findings. CUToday.info over the past two years has provided extensive coverage of the issue. Among banks, regional and communit

WASHINGTON—NCUA needs to provide credit unions with more time to evaluate, respond to, and prepare for the significant changes that have been made to the call report, NAFCU President and CEO Dan Berger told the agency in a letter. Berger suggested NCUA postpone the effective date of the call report changes from March 2022 to January 2023. Dan Berger "The proposed changes are significant in number and scope and will require additional time for credit unions to ascertain whether these changes are necessary, whether they will have practical utility, and in what ways the NCUA can minimize the burden on credit unions," wrote Berger. Berger highlighted that the 197-page document cataloguing the proposed call report includes hundreds of new codes, including 614 changes categorized as new or new-replacement and the relocation of 389 account codes. "Even though NAFCU supports efforts to update the efficiency and effectiveness of the Call Report, the simultaneous imposition of

Letter to Federal Credit Unions (21-FCU-06) Federal Credit Union Meeting Flexibility in 2022 Due to the COVID-19 Pandemic Dear Boards of Directors and Chief Executive Officers: The COVID-19 pandemic continues to affect federal credit unions and their members. As a result, credit unions continue to need flexibility to ensure the safety of staff and members. Therefore, the NCUA is extending the flexibility for federal credit unions to conduct meetings virtually in 2022. Read the Letter to Federal Credit Unions  

ALEXANDRIA, Va.—A vote on its “Service Facility” rule proposal is on the agenda when the NCUA board meets this week. At the time it was proposed during its December 2020 meeting, the proposal called for allowing CUs to include any shared branch, shared ATM, or shared electronic facility in the definition of “service facility” for a multiple common-bond federal credit union that participates in a shared branching network. At the heart of the issue is the concept of “reasonable proximity,” in which NCUA has traditionally required a credit union to have a physical facility within 25 miles of an underserved market to make it eligible for its field of membership. The NCUA board has been divided on the issue. At the time it was proposed, then NCUA board member and now Chairman Todd Harper said, “Construing reasonable proximity to include internet access could render the Federal Credit Union Act requirement a near nullity.” But during the NACUSO Network meeting last week, NCUA Board Member

ARLINGTON, Va.—Add NAFCU’s chief economist to those who expect last week’s report on inflation to force the Fed to move more quickly than it would like on raising rates. Curt Long The most recent numbers show inflation in the U.S. hit its highest point in more than 30 years, according to data released by the Labor Department today. On a seasonally-adjusted basis, overall consumer prices rose 0.9% in October, with the Bureau of Labor Statistics reporting the overall consumer price index (CPI) grew 6.2% over the 12-month period. NAFCU Chief Economist and Vice President of Research Curt Long noted that most of the inflation was largely driven by energy prices. "After three months of more moderate price growth, the October figure matches June for the highest inflation print of the year," said Long. Energy prices rose 4.8% during the month, following a 1.3% increase in September. From a year ago, energy prices were up 30%. Additionally, food prices climbed 0.9% in October and

Credit unions were founded on the righteous principle of “People Helping People”. For example, a plant worker’s car was wrecked and he needed a car to get to work. So, co-workers formed a credit union, pooled their savings and a loan was made for the car. This People Helping People mission has been part of the credit union psyche from day one. After all, there’s no one else in the financial services space that’s member-owned, has deep roots with a People Helping People mission, and is even recognized with tax advantages based on this altruistic foundation. But it seems as though many credit unions have lost sight of that “People Helping People” philosophy and are acting more like all the other financial institutions (FIs). It brings to mind the 1960’s Righteous Brothers classic “ You’ve Lost that Loving Feeling .” As the lyrics implore, it’s time to “Bring back that lovin’ feelin’ Whoa, that lovin’ feelin’ Bring back that lovin’ feelin’ ‘Cause it’s gone, gone, gone And I can’t go on, w