CHICAGO–News and developments in credit unions did not take a hiatus during the middle four months of 2016. As CUToday.info chronicles the top stories of the year in a three-part series this week, here are some of the most-read stories from May through August, ranging from a new program around “purpose” to one CU attempting to convert to a bank, to another purchasing one.
Week of May 2, 2016
Think 16: CO-OP Financial Services Intro’s ‘CO-OP Purpose’
SAN DIEGO–CO-OP Financial Services has announced the rollout of CO-OP Purpose, which it is calling a new corporate social responsibility program for credit unions that provides turnkey, impactful community initiatives to advance their mission of empowering peoples’ financial well-being.
ORLANDO–One expert is predicting that 'cardless' ATMs are getting much closer to widespread deployment and usage, and urges credit unions to begin taking steps now to prepare.
Regulator Explains What CU Will Need To Do To Convert To Bank Charter
BEL AIR, Md.–Maryland’s Office of the Commissioner of Financial Regulation has confirmed that it has received an application from HAR-CO Credit Union to convert to a Maryland state-chartered mutual savings bank, as CUToday.info reported.
Week of May 9, 2016
Jim Blaine: The Exit Interview:
RALEIGH, N.C.–Jim Blaine. Just saying his name is enough within credit unions to elicit a reaction. Admiration from credit unions that have watched the success and growth of State Employees CU, where he is CEO. Trepidation, from trade groups and others whose feet he has held to the fire. Applause or head-shaking, depending on the outspoken view he has taken on his popular blog.
SAN DIEGO—Credit unions with homegrown home banking solutions may be at lower risk—for now—from the new GozNym Trojan, which reportedly has CUs in its crosshairs.
CUToday.info’s Frank J. Diekmann sounds the alarm that credit unions appear to have lost their minds.
Week of May 16, 2016
1 CU Issues Public Letter Claiming A 'Bank Like' CU Is Attempting To 'Steal' Its Members
RANCHO DOMINGUEZ, Calif.—One California credit union has gone public with accusations that another CU is being “predatory,” operating more like a “bank,” and attempting to “steal away” its members.
Driverless Cars To Be Loan-Less?
SAN DIEGO–The transformation coming in automobiles—which could even include the elimination of vehicle financing as it’s currently known—should have credit unions giving a lot of thought to a new business model, according to one analyst involved in Google’s development of driverless vehicles.
Why You Should Hire This Person
ONTARIO, Calif.—Record new cars sales won’t continue, and that means loan growth could stall, says one expert who is urging credit unions to hire a data scientist in the near future.
Week of May 23, 2016
New NCUA Chair Talks About Job
ALEXANDRIA, Va.–Rick Metsger says his priorities at NCUA will not change now that he has been elevated to chairman, and stressed that overarching everything will be a Continual Quality Improvement process.
CLARK, N.J.—Aspire FCU has found a way to more than quadruple the number of monthly unique visitors to its blog, which the credit union says is generating business for the CU.
Analysis: Average CEO Comp At SCUs of $1 Billion-Plus Was $1 Million-Plus
WASHINGTON—Average total compensation for CEOs of state chartered credit unions with at least $1 billion in assets in 2014 was $1,017,720, reports Keith Leggett—who also added that one CEO is making nearly $9.3 million.
Week of May 30, 2016
CFPB Payday Loan Proposal: Biblical Verses, Biblical Doom, And More
WASHINGTON—Reaction to the CFPB’s proposed rules on short-term, small-dollar loans includes some quoting Bible verses in support and others predicting doom of Biblical proportions.
Heard on the Street: The Credit Union/Bank Rivalry
WASHINGTON–The rivalry between credit unions and banks was given feature treatment in the Wall Street Journal.
Analysis Shows Over Last Decade CU Deposit Rates Better Than Banks
NEW YORK–New analysis shows that credit unions have been providing better deposit rates than banks consistently over the past decade.
Week of June 6, 2016
GLENDALE, Calif.–Is the disappearance of thousands of smaller credit unions being hastened, at least in part, by CEOs at those institutions taking sweetheart financial packages being offered by acquiring credit unions?
13 Million Members Added Over 5-Year Period
ALEXANDRIA, Va.––At the end of Q1, credit union loans outstanding had increased 10.7% over the same time one year earlier, according to data released by NCUA. Meanwhile, credit unions added 13 million members over the past five years, according to NCUA.
Ghost From The Mortgage Boom: HELOCs Coming Due
JACKSONVILLE, Fla.–A decade after the mortgage mania of the mid-2000s, there is still one bill that has yet to come due—home equity loans.
Week of June 27, 2016
Details Released Around New CUNA ‘Awareness’ Campaign
SEATTLE–Credit unions here were given their first official introduction to a significant new “awareness” campaign that CUNA is preparing to launch in 2017.
Stan Hollen's Parting Wisdom
RANCHO-CUCAMONGA, Calif.—This week marks the beginning of a new chapter for CO-OP Financial Services, as Stan Hollen retires as president/CEO and Todd Clark steps in.
New Details Are Shared On CUNA's Plans For A CU Distributed Ledger
SEATTLE—CUNA shared further details on its plans to introduce a CU distributed shared ledger platform—or blockchain—during its America's Credit Union Conference here, telling attendees that the more credit unions are involved in the project the more successful the effort will be.
Week of July 4, 2016
LAKE FOREST, Ill.–While most have dismissed the Brexit's effects on the U.S., at least one analyst believes it could impact need for fees.
Where Boards Most Often Make Errors
NASHVILLE–How should a credit union’s board of directors measure its own performance? And if it has the courage to do so, how can it ensure it’s doing it right? Questions around credit union governance are critical to any credit union’s success (or failure), and it’s one the Filene Research Institute has explored extensively.
Retailers Say Card Industry Has ‘Dropped the Ball’ On EMV
WASHINGTON–Retailers have done their job when it comes to moving to EMV credit card terminals, but the “card industry has dropped the ball,” according to the National Retail Federation.
Week of July 11
Why Firewalls Fail; + The New Target
NASHVILLE–Security expert Brian Krebs told CUs why their firewalls often fail, and offered a warning about who's being targeted now.
RIVERDALE, Utah–What will the branch of the future look like? One CU here is letting members help make that decision.
The Big Opportunity In Mid-Market Households & Wealth Management
SEATTLE–There is a significant opportunity for credit unions among mid-market households seeking wealth management services. Indeed, some 28% of investors in mid-market households—defined as those with between $30,000 and $100,000 in annual income—are currently looking for advice right now, according to Ben Rogers of the Filene Research Institute.
Week of July 18, 2016
The World’s Credit Unions Gather in Belfast
BELFAST, Northern Ireland–Credit unions from 55 countries around the world kicked off the World Council of Credit Unions’ World CU Conference here yesterday, discovering just how interwoven credit unions have been in a city that has suffered much strife in recent decades.
The Lessons And Risks In Pokemon Go Craze
ST. PETERSBURG, Fla.—Could the Pokemon Go craze someday lead to credit unions using gamification to help members better manage their finances?
One analyst thinks so, emphasizing that augmented reality—the concept behind Pokemon Go—could be what elevates CU financial education efforts and finally gets a lot of members making better financial decisions.
Citibank Piloting Surcharge-Free ATM Network; Federation, CUs Participating
NEW YORK—Citibank has formed the Citi ATM Community Network, a pilot program providing more than 300,000 accountholders of participating minority-owned banks and credit unions with the ability to withdraw cash with no surcharge fee at Citibank branch ATMs in six major markets.
Week of July 25, 2016
RUTLAND, Vt.–CEO shares the story of one CU that was on the verge of being shut down by regulators that is now a peer group leader.
Reaching Millennials Via Print?
MUSCLE SHOALS, Ala.–One credit union is successfully targeting Millennials via a creative edgy print magazine. Yes, print.
An Easing of Regulatory Enforcements? Yes, According to One Measure
NEW HAVEN, Conn. – After levying record numbers of enforcement actions against financial institutions (FIs) in recent quarters, regulators eased enforcement activity slightly in 2016’s second quarter, according to The Banking Compliance Index (BCI).
Week of August 1
Boomers, This One's Partly On You When It Comes to Millennials
LAS VEGAS—It seems credit unions discuss the issue on a daily basis, but there remain a lot of misconceptions around Millennials, according to one Millennial. Curt Steinhorst of the Center for Generational Kinetics, which does generational research and solutions, especially with Millennials (Gen Y) and Gen Z (iGen), agreed the generation comes with all kinds of challenges, the likes of which most in credit union management and boards have never seen. Steinhorst is a Millennial himself.
Cities That Are Friendliest, Least Friendly to Account Holders
LAKE FOREST, Ill.—A new study has identified one U.S. city in which financial institutions provide the “friendliest service” of any city in the country—as well as the city where the “least friendly” service can be found.
For CUs Below $50M in Assets, Link Between Growth, Tech Adoption
WASHINGTON–A new analysis suggests a link has been identified between technology adoption and growth at credit unions with less than $50 million in total assets. Tech-savvy credit unions are identified as credit unions that offer mobile banking, remote deposit capture, online new member application, online loan application, and online share account application as of the first quarter 2016, according to Callahan & Associates, which performed the analysis.
Week of August 8, 2016
Hacking The CU In 24 Hours: Plus The 1 Password At Least 1 Employee is Using
CHICAGO—Skilled hackers only need a day to break into a CU, according to one security expert who shared one password he said he “knows” at least one person is using in every CU.
In Jim Blaine’s Last Remarks, A Trip Back to Where CUs Began
LAS VEGAS–In what he said will be among his last remarks to credit unions, retiring SECU CEO Jim Blaine stressed the basics he believes every credit union needs to return to.
NAFCU Opens Membership To State Charters
ARLINGTON, Va.—NAFCU announced that its board of directors unanimously voted to amend the trade association’s Articles of Incorporation to give federally insured, state-chartered credit unions full membership.
Week of August 15, 2016
Collaboration Keeps Small CUs Viable, Says CUSO
HARRISBURG, Penn.—If small credit unions are going to be around in the next 100 years in any significant number, one CUSO says it’s going to take formal collaboration programs to make that happen. And that begins with itself.
HUNT VALLEY, Md.—A number of credit unions are reporting robust activity in home equity secured loans after largely exiting the business as a result of the housing crash and the long crawl back.
A Surprise In Analysis Of Bank Fee Trends
FOSTER CITY, Calif.–A semi-annual survey of bank fees on checking accounts has found maintenance fees, overdraft fees and ATM fees have all declined nationally over the past six months.
Week of Aug. 22, 2016
Why Less Is More When it Comes To OD Dollars
LAKE FOREST, Ill.—Just as overdraft revenue has hit record levels at banks, thrifts and credit unions—so too has OD volume, a new study has found. That same study also reveals that more community banks and large CUs are cutting overdraft price to increase income.
One CU's Investment In Leaders
LAS VEGAS–A credit union that has made a significant investment in internal leadership training said it is seeing the ROI.
Don’t Make This Mistake With Millennials
LOMBARD, Ill.—A new study indicates that FIs are making a mistake if they view—and serve—Millennials as a homogenous generation. Raddon Financial Group’s Has the American Dream for Millennials Been Shattered? study shows the Millennial generation is less homogeneous than prior generations.
Week of Aug. 29, 2016
SEATTLE—Seattle Metro has introduced two new loans designed to help the large immigrant population here finance their path to U.S. citizenship. The $705-million CU’s “Citizenship Loans” cover the costs associated with the citizenship application process, which range from $700 to $4,000.
DECATUR, Ala.—Family Security Credit Union here has agreed to purchase the Bank of Pine Hill, located in Pine Hill, Ala. As CUToday.info was first to report, the $580-million credit union will substantially purchase all of the assets and assume the deposits of the one-office, $25-million bank. State and federal bank and CU regulators still need to approve the deal, which is expected to close in the first quarter of 2017.
An Updated Look At Where Interchange Fits In CU Non-Interest Income
WASHINGTON–Debit card interchange and fee income comprised 30.2% of credit unions’ non-interest income in 2016, according to Callahan & Associates Non-Interest Income Survey. Total card-related interchange and fee income, including debit, credit, and prepaid cards, accounted for 42.3% of non-interest income in 2015, Callahan’s reported.