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Align Your Actions With Your Ultimate Life Goals, from cumanagement.org Daily Deposits.

Fri, 04 Nov 2011 01:00:00 CDT

November 4, 2011 Apple founder Steve Jobs, in his commencement address to Stanford University in 2005, made the following statement, which pretty much explained why he has been so successful in his life: "When I was 17, I read a quote that went something like: ‘If you live each day as if it was your last, someday you'll most certainly be right.' It made an impression on me, and since then, for the past 33 years, I have looked in the mirror every morning and asked myself: 'If today were the last day of my life, would I want to do what I am about to do today?' And whenever the answer has been 'No' for too many days in a row, I know I need to change something." What have you been doing lately? Where would that lead you? Are you living consistently with how you want to be remembered by your loved ones when you are no longer around? Many of us are so busy living day to day, bouncing from one urgent issue to the next, that we have lost focus on our ultimate destination. Many of us are meandering through the maze of our lives without a clear focus and ultimate destination in mind. Far too many of us are allowing other people and events to dictate our priorities, our life goals and the life path we take. If you happen to be in this situation, here is a set of practical steps you can take to realign your actions with your ultimate goals. Step 1. Reflect on your life to date and prioritize your life.Invest some time today to reflect on the most important people and commitments in your life. Take 10 minutes each morning before you start your day to properly plan and prioritize your activities for the day. Make sure to work on the high priority items first and cross them off as you complete the tasks. Take one full day each year to reflect on the past year and to set your priorities for the upcoming year. We can get the most of our lives by not only appropriately choosing what we do, but just as important, what we choose not to do. Make sure to define your priorities clearly and take actions consistently. Step 2. Clearly define what you want out of your life.Would you ever hop into a taxi and expect the cab driver to tell you where you should go? Of course, the ultimate destination should be dictated by you. The driver is there to help you by choosing the right path and making the appropriate turns. Just as true, when it comes to our life journey, each one of us should define our own set of goals and our final destination. Step 3. Be specific in defining your goals.Be a better spouse, be a more loving parent, get in shape, lose weight, work harder, etc. arent specific enough. When you define your goals, double check to make sure you can measure your progress. Replace your vague ambitions with clear goals: Spend 20 minutes each night reading Aesops Fables to my son Daniel as he goes to bed. Join my neighbor Sean in running around the park every Monday and Wednesday mornings at 6 a.m. Stop eating afternoon snacks at work and no fried food for the next 30 days. Take public transportation and pack my own lunch for the next three months to save enough for my wifes birthday gift in January. You will have much better chance of success with specific goals than admirable but ambiguous ones. Step 4. Make necessary readjustments – starting today!Our today is an accumulated result of our yesterdays – the planned and unplanned events that took place in our lives, decisions we have made, people we have met and chose to associate with, actions we took, how we chose to invest our time, money and effort. Likewise, our tomorrow is being shaped and determined by how we choose to spend today. For all of us, without an exception, we are where we are as a consequence of our past, and our future is being formed by how we choose to spend this very moment. Start today on achieving your ultimate dreams and goals! Joong (Joon”;) H. Hyun is the author of Outswimming the Sharks: Overcoming Adversities, Naysayers, and Other Obstacles to Lead a Meaningful Life. For the past two decades, he has worked with many global Fortune 500 companies in various capacities. His experiences include working as a managing director for an international consultancy, as vice president of global strategy and vice president of Asia region for a multibillion-dollar U.S.-based company.

PR Insight: Getting the Most From Your Credit Unions Media Kit, from cumanagement.org Daily Deposits.

Thu, 03 Nov 2011 01:00:00 CDT

November 3, 2011Media kits are educational tools for the media that contain newsworthy information about an organization. They are important to credit unions interested in garnering media attention. A well-designed kit that is properly distributed can position even the smallest credit union as a successful organization. In contrast, even the largest, most prominent credit unions can undermine their credibility if they misuse media kits. Here are some tips on how to get the most value from your kit.Media Kit Basics Credit unions with comprehensive public relations programs send media kits to reporters as a way to provide background information. These kits support other media outreach efforts, such as a campaign to pitch a credit unions stories and generate interviews. The most common examples of when to use a media kit include: before an interview with a reporter; at the opening of a new office or branch when media is expected; and during a news conference. Media Kit Elements Media kits contain basic background materials about a credit union, its products and services, the people behind the organization and what the credit union is doing in the community, all of which may be of interest to a reporter. Each element of the kit should be brief enough for a reporter to quickly scan and digest the information. Typical media kits usually include: Overview of the credit union – a brief history describing how the credit union was founded, its goals and objectives, areas it serves and who makes up the membership. Fact sheet listing key details about the credit union – bullet-pointed list of key officers, types of members served and financial products and services. Biography of the credit unions spokesperson – description of the persons professional experience, career highlights and role at the credit union. Graphics such as the credit unions logos and photos of the spokespeople – should be high resolution (300 dpi) in order to look good when printed. Press releases – usually one to three of the most recent and relevant releases. Packaging and Distributing Media Kits In most cases, credit unions have identical paper and digital versions of their media kits. The digital version is posted on the credit unions website and can be emailed directly to reporters. Make sure any graphics used online are downloadable in high resolution or the media will not be able to use them in print publications. Also, be aware that emailed media kits may get caught in reporters spam filters. Computer disks and memory sticks/flash drives are an alternative way to distribute digital media kits.Paper versions of the media kit are put into a standard folder with the credit unions logo on the cover and should include the business card of the public relations professional handling media inquiries for the credit union. The kits can be hand delivered or mailed directly to the media.Common Mistakes When Using Media Kits Many organizations misuse media kits and this can erode the relationship with the media. Here are the most common mistakes credit unions should avoid. Failing to update kits – Update your media kits frequently! Nothing turns a reporter off more than getting old materials that are clearly no longer relevant. Media kits need to be updated at least every month for most credit unions. Including marketing materials – Reporters are skeptical of sales and marketing materials, because they view them as biased and lacking the key facts they would want to include in an article. By using the media kit elements listed above, which are written to include only objective facts, you increase the chances a reporter will take your credit union seriously and want to include you in their next issue. Fancy kits – Believe it or not, fancy, creative media kits used within the financial industry tend to generate more scorn than media coverage. Most reporters covering credit unions just want the basic facts without all the bells and whistles. Another downside is that many media outlets have rules against receiving gifts and sometimes apply this rule to fancier media kits. Chuck Meyers is a vice president at William Mills Agency, the nations largest independent public relations firm focusing exclusively on the financial services and technology industries. He can be reached at chuck@williammills.com.

Good Governance: Bottom-up Strategic Planning, from cumanagement.org Daily Deposits.

Wed, 02 Nov 2011 01:00:00 CDT

Credit Union Management magazines Web-only Good Governance”; column runs the first Wednesday of each month. Without the research involved in bottom-up planning, it is impossible to truly understand our value proposition or to get meaningful results.”; ~Steve Jobs, Apple High-performing organizations use practical and measurable bottom-up planning processes for the benefit of their stakeholders, John Oliver told attendees of the inaugural CUES Director Strategy Seminar in January 2011. Strategic Planning Process Outline Presented by John Oliver during the inaugural Director Strategy Seminar, during January 2011 in San Diego Appoint project manager and planning team and then train them. Communicate throughout the organization the process that will be used. Have the project manager and team develop timelines and responsibilities for a strategic research program. Do the research (limit the effort to three months, and be sure to collect hard data, opinions and ideas both from employees and from external sources, including members and the marketplace. Analyze the information. (cull it down to exec summaries of key findings) Hold a scenario planning session and come up with a SWOT (strengths, weaknesses, opportunities and threats) analysis. Hold a retreat. This is a decision-making day done off site with no budgets, no tactical details. Focus on the O”; part of the SWOT analysis: What do we think strategically are the key opportunities for this organization? Then define broad strategic objectives, a list of less than 10 specific statements of desired accomplishments. Make your objectives challenging enough to get some strategic change. Go for some easy wins as well. Note: this is not a social event; spouses are not invited. Give a bullet point list of the strategic objectives and ask them to draft a plan for how to accomplish these. Hold a second retreat. Ask management to present the plan theyve developed for how they are going to accomplish the objectives. Ask management to finalize the plan based on the feedback generated in the second retreat. Communicate throughout the organization the content of the plan. Timeframe: Allow three months to get to Step 7, the first retreat. Allow another three months for management to develop the plan. Starting to develop a strategic plan with information from the bottom of an organization up means starting with intensive market and internal research—research that can take up to three months to complete, said Oliver, president of Laurel Management Systems, Palm Springs, Calif.This is where youre asking members the questions: Do you think of yourself as a member or as an owner? Would you please define your ideal financial institution on price, service, location and delivery channels?”;Then the research comes back to the employees, from whom a credit union needs to get details and sentences, not simple answers.The biggest question to ask of the employee is Do you feel a part of this organization or do you show up in the morning just to do a job? Oliver said. The answer to that question will show a bias in every other question they answer. Its deeper than the average employee survey.If you want a successful strategy, it will absolutely demand an engaged workforce,”; Oliver emphasized. They need to understand their role in it and how they can help make the strategy successful.”;Next research should be done about managements perspectives and a SWOT analysis should be part of the effort to digest the information collected.Oliver likes to focus on the opportunities portion of a strengths-weaknesses-opportunities-threats discussion. The question becomes what are the biggest opportunities that this research program has demonstrated and how are we going to take them and make a good business program for our credit union?”;Another part of the process should be a business process audit. Ask: Are there things our competitors are doing well? By the time this gets to the board, you can come up with strategic decisions that are more likely to have an impact on the bottom line, in the marketplace, with your members,”; than if you approach strategic planning from the top down, Oliver said.What scares people away from approaching strategic planning in this way? Oliver offered that its lots of work, and that its going to show the good, the bad and the ugly about the institution.Strong leaders are prepared to undertake the hard work that goes into effective planning and they recognize the need for quality research that will enable them to make strong strategic decisions,”; Oliver said.Lisa Hochgraf is a CUES editor.

CUES® Next Top Credit Union Exec Finalist Presentations Approaching, from CUES.org Press Releases.

Wed, 02 Nov 2011 00:00:00 CDT

Madison, Wis.—The final presentations for the Next Top Credit Union Exec competition are just around the corner – mark November 7, 2011, on your calendar.

HR Answers: The Elements of Due Process, from cumanagement.org Daily Deposits.

Tue, 01 Nov 2011 01:00:00 CDT

November 1, 2011 Credit Union Managements HR Answers”; column runs the first Tuesday of every month. In last months HR Answers column, we explored tips for employee discipline from 101 Sample Write-Ups for Documenting Employee Performance Problems. This book by Paul Falcone examines the disciplinary process from beginning to end and covers every kind of problem from substandard work quality, absenteeism and insubordination to email misuse, sexual harassment, drug or alcohol abuse, and more. The following is an except from the book about due process: A legal theory called the job as property doctrine”; states that employment is a fundamental right of American workers and that the loss of employment has such a serious impact on a persons life that individuals should not lose their jobs without the protection of due process, as afforded under the 14th Amendment to the Constitution. Affording due process means recognizing the employees right to be informed of unsatisfactory performance and to have a chance to defend himself and improve before an adverse employment action (such as discharge) is taken. This property right”; protection places on management an obligation to deal in good faith with employees and to take corrective measures based on just cause (i.e., good reason). This just cause requirement, in turn, mandates that businesses take corrective action measures only for clear, compelling and justifiable reasons. But what exactly are the elements of due process? First, the employee must understand your expectations and the consequences of failing to meet your performance standards. If a write-up merely documents a performance problem without pointing to the consequences of failure to improve, the write-up will lack the teeth”; necessary to meet due process guidelines. Second, you must be consistent in your application of your own rules. Workers have the right to consistent and predictable employer responses when a rule is violated. In other words, problems cannot be corrected on an ad hoc basis without the employers being perceived as arbitrary, unreasonable or even discriminatory. Bear in mind as well that, generally speaking, practice trumps policy. In other words, regardless of what your handbook or policy and procedure manual says, your past practices will be scrutinized for consistency. In addition, failure to follow through on threatened consequences damages the credibility of your disciplinary system and sets an unintended precedent: If Employee A, for example, was forgiven for making certain mistakes, Employees B through Z may arguably have to be forgiven for making those same or similar errors. Third, the discipline must be appropriate for the offense. Occasional poor performance or a minor transgression (known as a de minimis infraction) is certainly actionable but probably not cause for termination. An employees performance track record and prior disciplinary history must certainly be taken into account. Fourth, the employee should be given an opportunity to respond. Administering discipline without allowing employees to give their side of the story is begging for trouble. Unfortunately, of all the elements of due process that should be incorporated into any write-up blueprint, this self-defense principle is the one that is most often lacking. Fifth, you need to allow the employee a reasonable period of time to improve her performance. Otherwise, your disciplinary actions will appear to be an artificial excuse to get the employee out of the organization.

CUES® Honors Outstanding Councils and Top Recruiters, from CUES.org Press Releases.

Tue, 01 Nov 2011 00:00:00 CDT

Madison, Wis.—The Credit Union Executives Society honors nine CUES Council award winners and thanks its top recruiters.

Opening Online Bank Accounts, from cumanagement.org Daily Deposits.

Mon, 31 Oct 2011 01:00:00 CDT

October 31, 2011On the heels of banks charging fees on debit cards due to declining revenue, Javelin Strategy & Researchs research latest research report — 2011 Online Account Opening: Faulty Process Hobbles FIs in the Battle for Customer Acquisition, Profitability and Retention”; — reveals that financial institutions lost at least $873 million, conservatively, in potential revenue, as 5.8 million customers attempted — and failed —to open accounts online. Encountering failure, consumers engaged in an application process that was more costly for FIs or abandoned their efforts and took their business elsewhere. The report is based on data collected from more than 5,000 consumers, as well as examination of online account offerings at the 10 largest U.S. financial institutions and five technologically oriented smaller banks and credit unions. Javelin identifies the obstacles consumers experience when opening accounts online, analyzes the success and failure rates of different consumer segments, and recommends specific actions FIs can take to fix the process.First impressions are everything, and FIs risk their reputations — and relationships with customers — when the online application process goes awry. The desire to save time was consumers primary motivation to apply online for a checking account. However, only 53 percent of these applicants were able to successfully open and fund their account. The other half abandoned the process, had to go into the branch to complete the rest of the applications process, couldnt open the type of accounts they wanted, or faced other issues. With 50/50 odds, a consumers chance of successfully opening and funding an online account is a virtual coin toss,”; notes Mark Schwanhausser, senior analyst/multi-channel financial services at Javelin. Successful online account openings reduce acquisition and servicing costs for FIs, launch new customer relationships, and deepen online relationships with more profitable, tech-savvy, self-service consumers. Consumers that experience problems will go elsewhere, and FIs will miss out on revenue and cost-savings opportunities.”;The report also details how different consumer segments succeed -- and fail-- at opening accounts online. For example, Javelin found that 68 percent of the tech-savvy Moneyhawks”; – who use online banking, pay bills through their primary FI, and use mobile banking -- were able to open and fund their online accounts. This means almost one-third of Moneyhawks were unable to open and fund a checking account online, a cause of concern for FIs that dont want to lose their relationships with this most profitable consumer group. FIs also risk losing revenue from the two-thirds of new customers who wanted to become a customer, but were unable to complete their applications online.Successful online account opening is key for all FIs and especially for smaller community [institutions] that tend to draw a higher percent of newcomers, yet suffer higher failure and abandonment rates,”; says James Van Dyke, Javelin president. Our report provides insight into how to improve the odds of successful online account applications for all consumer segments and establish effective online relationships with customers.”;Key Report Findings: Nearly one-fourth of consumers applied online to open an account in the previous year, topped by checking, savings and credit card accounts. Secret shopper”; survey of 15 banks and credit unions reveals that applications for other types off accounts are lower in part because FIs typically do not offer a full menu of accounts online. Mobile account opening is the next frontier, with insight from a credit unions case study.

Technology and Tradition, from cumanagement.org Daily Deposits.

Fri, 28 Oct 2011 01:00:00 CDT

October 28, 2011The banking needs of our members have changed in recent years and, subsequently, so have the ways in which they want to bank with us.Americans have always wanted to have trust and confidence in their financial institutions and for many years, that trust and confidence meant walking into a branch and meeting face-to-face with a bank employee. Today, though, banking is all about getting services to consumers, not consumers coming to the bank. Consumers now want convenience along with stability. They want to make transactions quickly, get accurate and timely answers to questions, and conduct business at times that are convenient for them.This situation is certainly not unique to banking. Today, all of us manage life in a 24/7 environment that is not constrained by traditional work”; hours. Recognizing this changing landscape, SECU began making plans more than two years ago to drastically upgrade our investment in technology. Sure, we already offered the basics – online banking, bill-pay, basic mobile banking, and a consumer-friendly website that provided a wide range of financial literacy tools. But we knew we needed more to keep pace with the demands of our members and the marketplace.With that in mind, we began planning for a series of tech improvements that would come in conjunction with the introduction of a new brand, new logo, and new slogan, all designed to drive home the message that SECU represents a viable, trustworthy, and significantly different alternative to traditional banks.To emphasize that commitment to take banking in a different direction”; – the phrase that became our new tag line – we changed our familiar blue logo to a more contemporary green design which immediately distinguishes SECU from its bank competitors and reflects a more up-to-date approach to doing business.Beyond these surface changes, though, have been a wide range of technology upgrades, all designed to meet our members demand for easy access and convenience. We strongly promote electronic services like online banking, bill-pay, enhanced mobile banking, text banking, remote deposit, online statements and notices, and imaging ATMs, so that members – and hopefully prospective members – will recognize these services are no longer solely the domain of the big banks.As this initiative gathers momentum, SECU is adding other improvements. We converted our deposit-taking ATMs to imaging technology, added alerts to online banking, and enhanced our mobile banking through a much-improved user interface and iPhone app. Personal mobile deposit will soon allow people to use smartphones for deposits, and shortly we will be rolling out an enhanced version of mobile banking on BlackBerry andAndroid. In addition, we began redesigning our branches. This was done in part to complement the technology enhancements that were already underway. But we also recognized that for members who want or need to come into a branch, we should offer branches that look cutting-edge and provide streamlined, efficient and effective services. Providing a modern branch experience that provides access to online banking, enhanced ATMs, and modern teller stations helps members to make their in-branch transactions faster and more effectively, while simultaneously enhancing our reputation in the marketplace.In line with this picture, we ventured into social media in early 2011. SECU launched a Facebook page to provide members and prospective members with information about financial education and happenings in the community in a fast and convenient fashion. Facebook also gives members a forum to ask questions and enhance their financial literacy.Just as important, the social media presence made it easier for SECU to reach consumers in the 18-35 age range, many of whom have strongly indicated their preference to interact online. According to a recent survey by Fiserv Inc. (a CUES Supplier member), 84 percent of 3,000 online consumers polled indicated that they regularly use social media. Only 11 percent, however, said that they had connected to their financial institutions in that way.While it is too early to say with certainty how these technological enhancements have impacted our members, we have heard anecdotally that they have been very well received. Beyond access to accounts, technology has improved our communication with members through the use of alerts and social media. Members can stay current on important account news, as well as financial education, legislation, events and promotions.As quickly as technology has changed and improved the way we do business, members can and will expect more changes to come. Technology, when applied effectively, can provide solutions for enhancing member relationships. By combining online options with face-to-face access to information and service, we are doing what it takes to make customers financially successful and improve the financial well-being of the communities we serve.CUES member Rod Staatz is president/CEO of $2.2 billion SECU, a state-chartered, federally insured credit union headquartered in Linthicum, Md., that serves 225,000 members.

On Compliance: Fines for Social Media Violations, from cumanagement.org Daily Deposits.

Thu, 27 Oct 2011 01:00:00 CDT

October 27, 2011Credit Union Management magazines Web-only On Compliance”; column runs the fourth Thursday of each month.Businesses of all sizes and types are using social media to promote their services, improve customer service and fortify their brands. But along with the excitement about a new way to reach customers and prospects comes some trepidation. For financial services firms, including credit unions, this new mode of communication brings a fear of unchartered waters. This fear resonates loudly in the financial services industry, because strict regulations dictate what some companies are and are not allowed to communicate via any means of communication. As a result, many financial services firms are tip-toeing around adopting social media as a business practice. Firms dont want to be the one to blaze the trail”; until they know how regulators are handling oversight of these types of communications. In January 2010, the Financial Industry Regulatory Authority issued Regulatory Notice 10-06, which offers broker-dealers and registered representatives a guide to using social media in their businesses. While the rule doesnt apply to credit unions directly, it outlines precautionary steps they could take when dealing with social media as a business practice. The notice states, Every firm that intends to communicate, or permit its associated persons to communicate through social media sites must first ensure that it can retain records of those communications as required by Rules 17a-3 and 17a-4 under the Securities Exchange Act of 1934 and NASD [National Association of Securities Dealers] Rule 3110.”; Rules from the U.S. Securities and Exchange Commission and FINRA require that for record retention purposes, the content of the communication is determinative and a broker-dealer must retain those electronic communications that relate to its ‘business as such.”; Again, this is not required of credit unions, however its interesting to note how carefully some financial companies are required to follow their social media use.A lot of firms are still treading lightly when it comes to condoning and employing social media usage. The social media crusade seems to have two camps: those who are timidly joining the ranks and those who dont find it worth the risk. Regardless of which camp your organization falls in, social media is prevalent and shows no sign of being a passing fad. Just like its technological predecessors—email, instant messages and the Internet in general—you can either get on board or be left in the dust. The reason for credit unions to consider this powerful mode of communication is simple: Your customers are on blogs, Facebook, Twitter and LinkedIn, so thats where you should be, too. As 2011s experimentation with social media moves to production in 2012, the grassroots”; nature of it leaves the playing field littered with potential risks. Its impossible to foresee all the instances that will occur and the consequences they may elicit. Inevitably fines on those organizations already regulated will occur, especially as more and more firms adopt social media.One company has been fined this year. Allergy Pathway was sanctioned for allegedly allowing misleading reviews of its products to be published on its website and Facebook, Twitter and YouTube pages. Although the company did not write the testimonials posted on its social media pages, the court found that by deciding not to remove them, it had effectively become the publisher. A federal court fined the company and its director, Paul Keir, $7,500 each. This ruling underscores the unforeseen pitfalls with the use of social media for business communications, but it is also a key learning for other organizations using social media in their businesses. Social media can provide a great value to your credit union; however, you do need to be proactive and put some clear usage guidelines in place before you implement any programs. The best and easiest way to do this is by specifically outlining your firms social media policies and ensuring that your employees and vendors are aware of them and adhere to them. Capturing and monitoring these communications is a way to aid management of social media use—even while regulations do not yet require this action. Having a solid plan in place will give you peace of mind and allow you to maximize the full benefits of social media. Nick Mehta is CEO of LiveOffice.

CU Management Magazine issue publish

Thu, 27 Oct 2011 00:00:00 CDT

The Nov 2011 issue of Credit Union Management is available, cumanagement.org. The Cover Story is The Importance of Oversight

Tech Time: Evaluating Big-Ticket Purchases, from cumanagement.org Daily Deposits.

Wed, 26 Oct 2011 01:00:00 CDT

October 26, 2011Credit Union Management magazines Web-only Tech Time”; column runs the fourth Wednesday of each month.Credit unions often employ a wide variety of practices and methodologies when it comes to purchasing, whether they realize it or not. Frequently credit unions allow personal preference on the part of the individual doing the purchasing to influence or dictate the purchase process. This isnt a major concern if you are talking paper clips or toner, but what about big-ticket purchases such as computers, core systems or even branches? Leaving a major investment of members money to the personal buying preference of even your smartest executive is not a wise idea.Fortunately, your credit union can employ a tested process for big-ticket purchasing that allows for the flexible decision-making senior executives deserve, but that also standardizes the analysis and purchasing process across the entire credit union ecosystem. Big-ticket credit union purchases, and the vendor relationships that are established as a result of such purchases, must have a tangible connection to your long-term objectives and strategies. Purchases must also support the brand promise youve made to your members.The process for purchasing, then, really begins with identifying and documenting the components that make up your brand promise and strategic objectives. Distill these components to single words or simple concepts, and you will have the start of a purchase evaluation framework and process that ensures your decisions will be made based on how much any given product or vendor strengthens your credit unions ability to deliver your promise, meet your objectives, and ultimately serve your members well.Here is how it works...Lets assume your credit union brand promise is that you will deliver to members the best rates for basic financial services in your market. Your operating philosophy and strategy focus is on efficiency, with a lean staffing model and heavy reliance on automated systems. The core elements that combine to support the brand promise and strategic focus are aggressive expense management, lean staff, efficient systems, and perhaps outsourced non-core functions. Once these core elements are known, one of the key decisions you will have to make is to determine the weight of contribution for each component. We suggest weighting your components using a 100-point scale (percentage). In our example, general expense and staffing are each important components of overall operating expenses, therefore it may be that each has a 35 percent weighting for a total weight of 70 percent. The other elements that support your brand promise -- efficient systems and outsourced functions -- are perhaps weighted at 20 percent and 10 percent respectively.Now lets assume you need to evaluate the purchase of a new delivery system technology. Evaluating both the technology and the vendors that provide the technology begins with rating each vendors strength in terms of their support for the core elements we defined above. We advocate using a scale of one to five, with one being poor and five being strong, but any scale will do. The better the vendor and/or the product supports the credit unions key components, the higher the rating. Once a rating is determined for each vendor for each component, the next step is to multiply the ratings by the component weights, and add the results together. This will give you a vendor strength score which will enable you to compare the total strength of a vendors support for the core components of the credit unions brand promise. In the table, Vendor A is given a much higher (positive) rating for expense than Vendor B. For many credit unions interested in cost control, this cheaper”; option might seem to be the way to go. However, after all component scores are evaluated, Vendor B actually has the higher vendor strength score. This means Vendor B may be a better overall fit, given the credit unions brand promise and objectives, than Vendor A, even though Vendor A offers the less expensive solution. More often than not, vendors are evaluated based on either the personal preferences of decision-makers, or on the features and benefits of their products. Rarely are they evaluated on organizational/cultural fit.”; The challenge with taking any other approach than to evaluate vendor fit”; for the organization is that you risk undermining your ability to keep the promises you make to members. That is not a risk worth taking. Note: Process and chart based on David Aakers methodology for analyzing market competitors. Tom Glatt Jr. is executive consultant/owner of Glatt Consulting, LLC. Follow him on Twitter: http://twitter.com/tglatt; connect on LinkedIn: http://www.linkedin.com/in/tomglatt.

Supplier Member News, from CUES.org Member News

Tue, 25 Oct 2011 10:55:56 CDT

Reward your members for utilizing the options at their disposal, like online bill-pay, by offering them free services like ID theft protection, retail savings and travel discounts. Franklin, Tenn.-based Affinions Flex Checking solution can be customized to meet your individual CU needs. Visit www.flexchecking.com for details.

Community Involvement, from CUES.org Member News

Tue, 25 Oct 2011 10:53:48 CDT

Commonwealth Credit Union, Frankfort, Ky., collected thousands of new to gently used teddy bears and stuffed animals for the Kosair Bears on Patrol”; program. Bears on Patrol is a cooperative effort between Kosair Charities and local law enforcement to provide teddy bears and other stuffed animals in police cars to comfort young children who may have been exposed to traumatic events. The CU has one CUES member.

Community Involvement, from CUES.org Member News

Tue, 25 Oct 2011 10:53:07 CDT

Sunova Credit Union, Selkirk, Manitoba, is sponsoring the Sunova Auditorium at the Quarry Park Heritage Arts Centre. The donation, totaling $30,000, provides the CU with naming rights to the auditorium for a period of 20 years. The CU has two CUES members.

Honored, from CUES.org Member News

Tue, 25 Oct 2011 10:52:25 CDT

San Antonio-based Security Service Federal Credit Union's newly redesigned website received top honors in the Web Marketing Association's WebAwards competition. The website was recognized as the WMA 2011 Best Credit Union Website. The prestigious award was given based on criteria that included design, ease of use, copywriting, interactivity, use of technology and content. The CU has six CUES members.

Event, from CUES.org Member News

Tue, 25 Oct 2011 10:51:22 CDT

More than 1,300 people attended a PCM Employees Credit Union grand opening at its new main office in Green Bay, Wis. Special guests included State Senator Rob Cowles and Green Bay Mayor Jim Schmidt, along with many members, plus staff of the credit union and design-build firm La Macchia Group, Milwaukee. The celebration included many gifts and tours of the state-of-the-art facility. The CU has one CUES member.

Name Change, from CUES.org Member News

Tue, 25 Oct 2011 10:50:20 CDT

Massillon Area Credit Union, Massillon, Ohio, has changed its name to Friends and Family Credit Union as part of its new community charter. The CU has five CUES members.

Retirement, from CUES.org Member News

Tue, 25 Oct 2011 10:48:10 CDT

Rudy Pereira has been hired as the new president/CEO of Royal Credit Union, Eau Claire, Wis. Previously he was senior vice president at Alliant Credit Union, Chicago. He succeeds Charles Grossklaus who is retiring.

Promotion/Retirement, from CUES.org Member News

Tue, 25 Oct 2011 10:47:09 CDT

Richard Gingell has retired as CEO of Coventry Credit Union, Coventry, R.I. David Root, previously the CUs independent auditor, replaces him.

Honored, from CUES.org Member News

Tue, 25 Oct 2011 10:45:53 CDT

President Obama has nominated Carla M. Leon-Decker to serve on the NCUA Board. She is currently president/CEO of D.C. Federal Credit Union, Washington, D.C. If confirmed, she will replace Board Member Gigi Hyland whose term officially expired in August.

Loan Zone: Troubled Debt Restructuring, from cumanagement.org Daily Deposits.

Tue, 25 Oct 2011 01:00:00 CDT

October 25, 2011Credit Union Management magazines Web-only Loan Zone”; column runs the fourth Thursday of each month.There is still a great deal of discussion, and some confusion, about troubled debt restructuring. In April 2011, the Financial Accounting Standards Board http://www.fasb.org/ issued new guidance on TDRs with the intention of addressing certain practice inconsistencies among financial institutions. As the 2012 implementation date for Accounting Standards Update No. 2011-02 approaches, some credit unions are still struggling with the overall concepts and specific details of the new rules. Admittedly, TDRs are subjective, so answers are not always spelled out in black and white. In addition, there has been little regulatory guidance on the topic up to this point, so there are few points of reference or best practices.While the definition of a TDR was not changed under ASU No. 2011-02, Receivables (Topic 310): A Creditors Determination of Whether a Restructuring Is a Troubled Debt Restructuring, the standard does attempt to clarify when a credit union should declare a TDR, and how to account for it once it does.The standard is effective for credit unions for annual periods ending on or after Dec. 15, 2012. Credit unions with fiscal years ending Dec. 31 are scheduled to apply the rules in the new standard beginning Jan. 1, 2012. However, they should begin implementation early, as the standard impacts all loan modifications during 2012 and there are related activity disclosures that should be tracked during the year.Under the new standard, a restructuring is considered to be a TDR if a borrower is experiencing financial difficulty and the credit union grants a concession to the borrower. While the determination in cases of foreclosure and bankruptcy are fairly clear, actions as simple as lowering an interest rate or extending a payoff date may also constitute a concession, especially if the member is struggling financially due to unemployment or other reasons.Questions about how to implement ASU 2011-02 in the real world continue to sprout up. One question that often surfaces has to do with how long a loan needs to be considered impaired for accounting purposes after the borrower resumes timely payments and is dropped off the credit unions delinquency list and National Credit Union Administration call reports.Under generally accepted accounting principles, TDRs are considered to be impaired loans in financial statements. Impaired loans must be included and separately reserved for in the allowance for loan and lease loss calculations.A common belief is that the ALLL portion of that TDR could be reversed back into income once the borrower has resumed payments under new terms. This is simply not the case.Generally speaking, Once a TDR, always a TDR.”; Even after six or more timely payments, as long as the original concession to the borrower is in place, in most cases, the loan is still considered impaired and must be reserved for in the ALLL. The loan is still reported as a TDR for the duration of that loans life.However the amount of reserves to be set aside in the ALLL for each TDR may decrease during the concession period, when the actual cash flows compare favorably to the expected cash flows.Now is when credit union executives should be re-evaluating their lending policies to factor in the new TDR conditions and assess any impact TDRs will have on financial statements, call reports and ALLL calculations.According to Callahan and Associates, delinquent loans have decreased from historic highs in 2009, the nations real estate market is still slow and unemployment remains stubbornly high. Determining whether a restructuring is a TDR is likely to be on the agenda for credit union management for some time to come. The circumstances of each decision are bound to be different, so the most responsible strategy is to look at each case individually to determine your best course of action.Going forward, remember that failure to ensure the proper accounting for troubled debts can result in an overstatement of earnings, necessitate a restatement, and call the credibility of management into question. In these times of economic uncertainty, thats the last thing any credit union needs.Bryan W. Mogensen, CPA, is an assurance partner in the Phoenix office of Clifton Gunderson LLP, and leader of the firms credit union practice and the Southwest Client Service Center credit union and credit union employee benefit plan practice. He is a member of the American Institute of CPAs, American Society of CPAs, and is actively involved with the Valley of the Sun Chapter of Credit Unions. He serves on the AICPA National Credit Union Conference Planning Committee.

CUES® Names 2011 Future Leader Award Recipient, from CUES.org Press Releases.

Tue, 25 Oct 2011 00:00:00 CDT

Madison, Wis.—The Credit Union Executives Society is pleased to announce Linda Moulin, senior vice president/corporate development, Affinity Credit Union, Saskatoon, Saskatchewan, Canada, is its 2011 CUES Future Leader. She will be honored at CUES CEO/Executive Team Network™, on Sunday, November 6, at The Cosmopolitan of Las Vegas.

Forward Focus, from cumanagement.org Daily Deposits.

Mon, 24 Oct 2011 01:00:00 CDT

October 24, 2011 This is bonus coverage from Shaping the Future”; in the November 2011 issue of CUES Credit Union Management magazine.While todays credit union CEOs need to be all about making the most of tried-and-true leadership strategies, they also need to clue in to new ideas and best practices. According to Bill Rissel, president/CEO of Radcliff, Ky.-based Fort Knox Federal Credit Union, with $968 million in assets and 74,000 members, it is important to be nimble and flexible and be able to adapt to change. The pace of change is accelerating geometrically, in my opinion. And, as a result, the business model you and your credit union had in place and found success with 10 years ago will not serve you well five years from now,”; Rissel says. In fact, it will lead to failure.”; Everything has become so much more complex and demanding,”; adds CUES member Charles Bruen, president/CEO of $860 million First Entertainment Credit Union, with 58,000 members in and around Hollywood, Calif. As such, the way you managed a credit union 10 years ago is not the way to manage a credit union today.”;Even if your credit union hasnt changed or isnt changing in terms of assets or members, he says, all sorts of external factors are changing and are requiring you to manage your credit union in new and different ways”;—such as the increased focus on compliance required of todays CU leaders. Among those external factors”; that are pushing this, according to Bruens son, Eric Bruen, president/CEO of $20 million Desert Valleys Federal Credit Union, with 3,600 members in and around Ridgecrest, Calif., is the speed at which you and your members expect your institution to change.Because of this expectation, todays CU leaders have to be able to mold themselves and their institutions to the times. If you cant do that, you and your credit union will be a step behind the pace rather than a step ahead.”;Two other forward-focused traits sure to fortify todays credit union executives are creativity and curiosity.You have to be willing to try things, experiment with things,”; Chuck Bruen says. For example, he adds, theres a lot of neat technology out there, but you have to be creative and curious in order to look at a particular piece of technology and see how it could benefit your credit union and its members.”; Being able to multi-task is another important trait for todays credit union leaders, according to Rissel. In the past, if a CEO understood the operations of the credit union and how it made its money, that was pretty sufficient to be successful.”; Today, he adds, CEOs have to keep track of all sorts of things in addition to their credit unions operations, including changes in the economy, regulations and politics.That makes todays credit union leaders a lot less hands on”; than they were in the past, Chuck Bruen says. Running a credit union has become much more complex and demanding, and some of the things I used to do in the past cant be done today.”;For example, he used to make loans and meet regularly with front-line staff members. But today a lot of his time is spent on compliance and regulation—things that maybe werent as common in the past.”; As a result, he has to delegate more today. If you want your credit union to succeed, you have to give people authority and then hold them accountable for their results.”;Rissel, who writes Credit Union Managements Unconventional Thinking”; column, sums up well when he says the men and women who step into the CU CEO seat these days must be flexible, nimble, multi-tasking visionaries.”;A former Credit Union Management editor, Bryan Ochalla is a freelance writer based in Seattle.

CUES® Names 2011 Outstanding Executive Award and Hall of Fame Inductees, from CUES.org Press Releases.

Mon, 24 Oct 2011 00:00:00 CDT

Madison, Wis.—The Credit Union Executives Society is pleased to announce Robert W. Hoefer, president/CEO, Dupaco Community Credit Union, Dubuque, Iowa, as the 2011 CUES Outstanding Executive, an award presented for excellence in leadership. Hoefer will be honored on Sunday, November 6, at CUES CEO/Executive Team Network™ in Las Vegas.

The Difference of a Decade, from cumanagement.org Daily Deposits.

Fri, 21 Oct 2011 01:00:00 CDT

October 21, 2011This is bonus from Shaping the Future”; in the November issue of Credit Union Management magazine.In Lou Centinis opinion, leading a credit union is hugely different today than it was 10 or even 5 years ago.”;How so? For starters, says Centini, senior director of executive education at the University of Virginias Darden School of Business and a faculty member for CUES CEO Institute III, the pace of change has accelerated greatly in that time, as has the pace of growth. The latter has been especially challenging for credit union leaders, he adds, as in the past, the whole notion that [credit unions] had to grow or die like other businesses and industries was not considered a given.”;Today, it is. Every credit union leader now has to think growth,”; Centini says, which includes thinking about consolidation and mergers. Both of those things have to be more of a consideration in this day and age,”; he adds, as does the ever-changing legal environment in which todays credit union leaders are finding themselves. Credit unions have always been focused on and interested in this area, of course, but the implications are greater today.”;Another difference between leading a credit union today vs. 10 or more years ago: Competition is much more intense.Thats true for any organization these days, Centini says, but the difference is especially dramatic for credit unions. It used to be enough for credit unions, particularly [single-SEG] ones, to serve their narrowly defined market. Now that so many of them are going head to head with banks, though, it is a completely different game. It has become about share of wallet as opposed to the tried-and-true products of loans and deposit accounts that credit unions worried about in the past.”;A former editor of CUES Credit Union Management magazine, Bryan Ochalla is a freelance writer based in Seattle.

Inside Marketing: International Credit Unions Collaborate to Thrive, from cumanagement.org Daily Deposits.

Thu, 20 Oct 2011 10:00:00 CDT

October 20, 2011 Credit Union Managements Web-only Inside Marketing”; column runs the third Thursday of every month. To help celebrate International Credit Union Day today, lets take a look at how credit unions outside the United States market themselves. Naturally, I turned to the World Council of Credit Unions for answers. According to WOCCUs Director of Marketing and Communications, Michael Muckian, credit unions in developing countries tend not to market in the traditional fashion with which Americans are familiar. Instead, they market primarily by word-of-mouth and personal representation. There are systems in various countries that establish and promote a single brand for their credit unions and even support those credit unions with a shared back-office platform,”; states Muckian. The net result is greater national recognition through that single brand and greater perceived strengths for the individual institutions. In terms of pure marketing, this appears to be the most advanced form, perhaps even surpassing U.S. efforts.”; You Might Also be Interested In CCCU, CUES to Partner on International Event Cooperative Enterprises Build a Better World In the U.S., there is no single brand for credit unions. We all know marketing efforts here are segmented with credit unions doing their own thing, credit union leagues doing their own thing, associations doing their own thing, etc. Unfortunately, there isnt a cohesive effort in the U.S. right now, except for, perhaps, the current grassroots Bank Transfer Day”; movement – which, surprisingly, could be the spark U.S. credit unions need to bring us all together under a unified message.I could write a multi-page essay on what credit unions are doing marketing-wise on the global stage to gain and retain members. In this article, however, Im taking advantage of WOCCUs recent gathering in Poland of U.S.-based league and association executives focusing on how unification and collaboration has resulted in success for Polish credit unions.The take-away from this gathering showed that unified back-office services and a single nationwide brand have helped even the smallest of Poland's credit unions thrive during difficult financial times. Additional changes to broaden services and outsource them to a management group led by the country's largest credit union are on track to further grow the system, as well as extend Poland's credit union success story.Credit union collaboration remains the driving characteristic among these strategies, and credit unions of all sizes are growing as a result – which was the lesson U.S. credit union league and association executives learned during this study program in Poland. A single brand, developed and supported by the National Association of Cooperative Savings & Credit Unions, Poland's credit union trade association and a WOCCU member, has brought success to a system considered the largest locally owned financial entity in Poland.The Polish integrated marketing approach provides a consistency of quality image across all the countrys credit unions and it enables small credit unions to have the quality and impact of advertising, which they could not achieve if they were each paying for their individual campaigns,”; states Brian Branch, WOCCUs president/CEO. The uniform marketing image also establishes peer pressure among the credit unions to meet quality standards in service to uphold the brand. It is both efficient and effective.”;A little history lesson to set the stage: Polands credit unions began to reemerge in 1989 following the countrys efforts under Solidarity to throw off the yoke of Communism. In a very short time Poland became one of the fastest-growing and most successful credit union systems in the world. Operating as a unified entity under the acronym SKOK, Polands credit union system is the largest locally owned financial institution”; in Poland.As of June 2011, Poland had 59 credit unions with 1,852 branches and serving 2.2 million members.As Polands credit union trade association, National Association of Cooperative Savings & Credit Unions markets Polands credit union under a single graphic identity to help build brand awareness at an equal level for institutions of all size. The names fall into a similar pattern, beginning with the system-wide acronym followed by the name of the individual credit union. The largest credit union is SKOK Stefczyka, named for Dr. Franciszek Stefczyk, considered the apostle of savings”; and father of the Polish credit union movement who helped found a network of financial cooperatives that flourished in the 19th and early 20th century before invading Nazi forces shut them down during World War II. One of the smaller credit unions is SKOK Wybrzeże (Coastal Credit Union), which evolved from a merger of a policemans credit union and the Gdansk Shipyard Credit Union, one of the first credit unions formed after fall of communist rules and the rise of the Solidarity movement. Despite the disparity in size, both credit unions enjoy the same marketing/branding and back-office support, giving each equal strength in the marketplace while still enjoying two distinctly separate identities for their members.According to Wiktor Kaminski, vice president at the National Association of Cooperative Savings & Credit Unions, NACSCUs country-wide branding campaigns most often focus on presenting credit unions as safe alternatives to commercial banks. The perception of safety is important because this countrys credit unions started at a time when bankruptcy and other financial difficulties faced Polish people and businesses.We not only work to build awareness but also show credit unions as a good place for savings and consumer loans,”; Kaminski says. After our various campaigns we found that peoples awareness about credit unions was increasing.”; Public recognition of credit unions rose to 75-80 percent during the first 10 years. At that point Polish credit unions started to use more sophisticated campaigns that employed spokespersons.Some of the celebrities that SKOK used in its marketing efforts included Władysław Kozakiewicz, an Olympic athlete who won the gold medal for the pole vault in the 1980 Moscow Olympics, and soccer star Emmanuel Olisadebe. The current campaign uses Polish film and television actor Artur Żmijewski, star of the very popular series Ojciec Mateusz (Father Matthew”;) about a priest-detective who solves crimes. He also performed main characters in feature films like Katyń”; directed by Andrzej Wajda and is seen as an honest, reliable person and has very good recognition in society.Over the past few years, the campaigns evolved beyond mere recognition to focus on specific subjects. Ads stressed financial inclusion for all segments of society; they emphasized success for the individual with an emphasis on successful family-owned businesses; and they presented credit unions as a source for helping small businesses during difficult economic times.During the height of the recent recession we launched a campaign to stress credit union safety and soundness in the face of banks that were failing,”; Kaminski explains. The tagline, ‘Dont blame us! Were not banks!, spoke to people who had lost confidence in their banks and resulted in big increases in credit union deposits. It also attracted very negative responses from the banking industry as well as press coverage.”;Currently, credit unions throughout Poland are stressing their Family Package,”; which bundles together services designed to help Polish families at favorable rates. This includes the no-fee current account,”; which is the equivalent of a checking account (but there are no paper checks used in Poland); savings accounts amounts from that can be transferred at no cost to the current accounts; and a low-interest loan.The key here is that all Polish credit unions contract with Media SKOK for marketing services and all share the same style of graphics and logo. Credit unions use press materials, buy TV and radio ads, and use public relations in their efforts. Media SKOK has an annual budget of 20 million PLN (about US$6.5 million), a fund into which all credit unions contribute and the result from which all credit unions benefit.In 2012, Polands marketing efforts will revolve around WOCCUs World Credit Union Conference, which will be in Gdansk July 15-18. Having the world credit union movement converge in Poland speaks to the strength of the Polish credit union movement,”; Kaminski says. Mike Lawson, principal of the PR/marketing firm DML Communications, has two decades of journalism, public relations and marketing experience. His unique and robust knowledge allows him to meet the varied needs of editors, end-users and clients. Lawson's expertise enables him to enhance his clients' market exposure through media relations, social media tools, advertising efforts, target marketing strategies and more. He also speaks on PR, marketing and media issues to audiences nationwide. For more info, visit www.dmlcommunications.com.

CCCU, CUES to Partner on International Event, from cumanagement.org Daily Deposits.

Wed, 19 Oct 2011 01:00:00 CDT

October 19, 2011 The Caribbean Confederation of Credit Unions and CUES are collaborating to offer an enhanced leadership education opportunity with a global perspective. CCCU and CUES International Convention will give industry leaders the opportunity to network with a worldwide community of colleagues. Content for the June 23-26, 2012, meeting in Montego Bay, Jamaica, will focus on strategy, leadership and governance. Im very pleased CCCU and CUES are working together to facilitate enhanced leadership in the movement, and to give credit union leaders as well as leaders of other co-operatives from 25 different nations the chance to meet and learn from each other,”; says Ralph Wharton, CCCU CEO. The conventions theme is ‘Cooperative Enterprises Build a Better World. We will celebrate the movement and the service it provides on a global scale and bring its leaders together like never before.”; Im excited CCCU and CUES are joining forces to bring this innovative program to life,”; adds CUES President/CEO Fred Johnson. Collaboration is good for CCCU, CUES and our international membership. Our two distinct organizations are coming together to provide professional development on an international scale. What better way to celebrate the cooperative movement?”; CUES represents members from 14 countries; CCCU has affiliates in 18 countries. Learn more about CUES credit union conferences.

Insurance Matters: How Good Is Your Agent?, from cumanagement.org Daily Deposits.

Wed, 19 Oct 2011 01:00:00 CDT

October 19, 2011Credit Union Management magazines Web-only Insurance Matters”; column runs the third Wednesday of each month.All insurance agents are not created equal. Frankly, there are some great agents out there who are working hard for their clients. There are some dullards, too.How do you tell? What is the difference?As I have mentioned before, insurance agents can be either employees of the insurance company for whom they sell (called direct writers), or independent business people who work for themselves (independent agents). Direct writers work for one insurer. Independent agents usually represent more than one insurance company. The credit union insurance marketplace is dominated by the direct writer, CUNA Mutual Group. By some accounts, CUNA Mutual has well over 75 percent of the credit unions insured and I have high regard for the company. Working with an agent from CUNA Mutual has the advantage of the companys detailed knowledge of the needs of credit unions. Local independent agents have advantages too. I have clients in areas of the country that were hit hard by last springs tornadoes. Having a local agent on scene has been almost indispensable. No two insurance agencies have the same abilities or resources. No two insurance agents have the same level of knowledge and expertise. Personality is also an important consideration–as in, can you work well with this person?The Agent TestHere are some questions to ask to see if you can indeed work well with a particular agent: Does your agent meet with you at least annually to review coverage and to learn if your credit union has changed its operation in a way that will require adjustments to the insurance program? Going over your coverage at least once a year is vital. You change. The insurers change. Your agent should be helping you keep up. Are you the only financial institution your agent handles? Where does he or she get industry expertise? Credit union insurance is complicated. The coverage is complex and the insurers change the coverage forms frequently. Can your agent answer your coverage questions, or does he or she have to refer most questions to the insurance company for clarification? Nobody knows all the answers. However, your agent should at least know some of them. Is your agent responsive? Are your phone calls returned quickly? Are emails confirmed and acted upon? Do you have to follow up for the status of items? Professionalism is a sign of respect. Is the support staff familiar with financial institution insurance issues? When your agent is out of the office, can you still get questions answered? How is your agents bench strength? How are claims managed? Is your agent on the front line, or do you rely on a toll-free phone number? Who does what, when? Have you been provided with a procedure for reporting claims that might occur after hours? Catastrophes know no business hours. Sharp agents set you up to make things easier. The Insurance Agent Litmus TestHere is the most telling question of all. This is the single question that trumps all the others. If the answer to this question is not instantly and unequivocally yes, it is time to hunt for a new insurance agent.Imagine you are standing by the smoking rubble that was once one of your credit unions branches. The fire department is still there. The building is a total loss. Will you be comfortable, at this moment, that your insurance agent is going to help make this catastrophe survivable?Now go act on this insight.Read my August column, also about agents.Note: The playback of my recent CUES Webinar on directors and officers insurance is free to CUES members. Log in at cues.org, then click here.Scott Simmonds is the unbiased insurance guy, consulting on, but never selling, insurance. He welcomes questions from readers, and will attempt to answer as many as possible in future columns.

CCCU, CUES® Introduce Groundbreaking Event-CCCU and CUES International Convention, from CUES.org Press Releases.

Wed, 19 Oct 2011 00:00:00 CDT

MADISON, Wis.—The Caribbean Confederation of Credit Unions (CCCU) and the Credit Union Executives Society are collaborating to offer an enhanced leadership education opportunity with a global perspective.

Facility Solutions: Branch Color Palettes & Brand, from cumanagement.org Daily Deposits.

Tue, 18 Oct 2011 01:00:00 CDT

October 18, 2011Credit Union Management magazines Web-only Facility Solutions”; column runs the third Tuesday of each month.Color is a powerful messaging tool. It can reinforce the brand by directly referencing brand colors or indirectly by subtly suggesting a brand style and tone. It can increase the pace of business, like red or orange in a fast food restaurant, or help set the stage for a slower, more relaxed experience, such as the deep tones of a coffee house where you want people to linger. Literally hundreds of books discuss color theory and application. In this months column I would like to discuss the use of color in branch design. In the branch, we want to communicate our brand experience to members and staff in ways that reinforce our brand through all delivery channels. Is the visual experience consistent whether we are online, viewing a mobile application, or in the branch? We also want to influence the actions of members and staff to create positive interactions. We want members to feel comfortable, safe, open, and engaged. We want staff to feel motivated and productive. Color can help, if properly applied.Used well, color can have a strong positive impact; used improperly, it can deliver a negative impact every time a member enters the branch. To make it more complex, people have different reactions to color. For example, 10 percent of men are color blind and only see in gray tones. Also people may react to color based on their good or bad experiences or react positively to a color one day and differently the next.One hurdle in developing a color palette for a branch is personal preference. Should a branch reflect the personal color preferences of a senior executive, branching team or board? Or, should it reflect the brand? We find the latter produces the best results and consensus can be gained based on rational criteria vs. personal bias. Translating brand look and feel into branch color A well-defined brand includes the style, tone, imagery, look and feel that drives brand expression. This branding effort produces a palette of colors as well as a set of expected physiological reactions that can be translated into the branch experience. But, there is more to it than just applying blue and gold, all over the branch.For some institutions, direct application”; of color can work. ING Bank, for instance, has become famous for its wash of orange over much of its branch interiors. This makes a very strong brand statement, but if you have been in one, it can seem like it is more about them than the customer. It makes sense for ING, as the bank is pursuing an online delivery strategy and each regional branch must be a brand beacon. It is interesting to note, though, that as ING adds more branches, the interiors are calming down in terms of orange saturation, to provide an environment more conducive to consulting, investments, and business and commercial banking.Like ING, other institutions are using strong color expressions on the exterior and then calming it down on the interior—a bit like a well packaged fruit that excites the senses at first glance and then delivers once opened. Chase Bank is now projecting Chase blue”; and Bank of America, BofA red,”; using back-lit panels at entries and ATMs that shine out into the community. These banks use a bold color to project their brand on their buildings exterior and then a more subtle and complex color scheme on the interiors to convey the experience of community to customers.The most successful branch color schemes for most credit unions support, reinforce and reference the brand colors, rather than trying to force them into all major areas of a branch. This color strategy is based on the five brand delivery modes: style, tone, imagery, look and feel. The brand colors can be introduced in signage, video displays or merchandising, or in standard staff shirt colors. The brand colors can also be introduced in the branch environment in furniture, carpets, feature walls or interior details, as long as they accurately deliver the brand experience through the delivery modes.Umpqua Bank has become famous in the financial industry for a strong and unique look that accurately projects its brand image to customers, staff and target markets. Umpquas interiors could be described as urban”; because of the tight focus on consumers and businesses. The bank developed a brand graphic wall that has a pastel color composition. This brand representation is reinforced by a bold use of a pastel green feature wall. The remaining walls are white and the furniture is dark to create contrast. In combination, this interior palette delivers a clear and crisp on-brand expression, consistent from branch to branch and across all delivery channels. The point of this months column is that branch color palettes should help deliver a powerful brand experience for members and staff. Color selections should not be driven by staff personal preferences or the signature or independent creativity of your architect or designer. The branch is an expensive brand, product and service delivery tool that is required to make your credit union stand out, engage members, increase deposits and loans, and generate high return on investment. Creating a branch color palette based on your brand attributes will help you accomplish these goals. Paul Seibert, CMC, is VP/financial services of CUES Supplier member EHS-Design, Seattle.

Supplier Member News, from CUES.org Member News

Mon, 17 Oct 2011 15:23:47 CDT

Javelin Strategy & Research has named Brookfield, Wis.-based Fiserv, Inc., the "Best in Class" mobile banking provider for the second year in a row in Javelins "2011-2012 Mobile Banking Vendor Scorecard." Providers were evaluated in multiple categories including support for mobile access modes, product features, scalability and security. Fiserv attained the highest score of all the providers surveyed and is the only provider to be named "Best in Class" for two consecutive years, demonstrating consistent leadership in this emerging channel.

Supplier Member News, from CUES.org Member News

Mon, 17 Oct 2011 15:23:06 CDT

Co-op Financial Services, Rancho Cucamonga, Calif., has launched a challenge to bank customers who face high debit card fees, following Bank of Americas recent announcement that it plans to start charging customers a $5 monthly debit card fee. Details of the credit union challenge are available at www.ShredMyCard.com.

Honored, from CUES.org Member News

Mon, 17 Oct 2011 15:22:30 CDT

Family Trust Federal Credit Union, Rock Hill, S.C., was recently ranked among the top 10 Best Places to Work in the state by the South Carolina Chamber of Commerce. The credit union ranked fifth for small- to medium-sized companies. The CU has eight CUES members.

Honored, from CUES.org Member News

Mon, 17 Oct 2011 15:21:49 CDT

The San Antonio Business Journal has named Generations Federal Credit Union Chief Financial Officer Steve Schipull, CCE, as its 2011 Community Service Organization CFO of the Year. The award recognizes local CFOs for their business leadership, contributions to their companys reputation and success, community involvement, strategic initiatives and adherence to business ethics.

Event, from CUES.org Member News

Mon, 17 Oct 2011 15:17:42 CDT

First Financial Credit Union, Skokie, Ill., broke ground on a new main office building. Plans for the building, designed by La Macchia Group, Milwaukee, feature an open concept lobby with teller pods, drive-up teller lanes with 2-way audio and video and multiple green initiatives in the materials and design. The CU has one CUES member.

Event, from CUES.org Member News

Mon, 17 Oct 2011 15:16:44 CDT

Halliburton Employees' Federal Credit Union, Duncan, Okla., reached the $100 million asset milestone in July. The CU has two CUES members.

Merger, from CUES.org Member News

Mon, 17 Oct 2011 15:15:54 CDT

First South Financial Credit Union, Bartlett, Tenn., has merged in Dyersburg Credit Union. First South Financial CU has three CUES members.

New Position, from CUES.org Member News

Mon, 17 Oct 2011 15:15:09 CDT

John Iglesias, CSE, CCE, is the new president/CEO of Northwest Community Credit Union, Eugene, Ore., after the recent retirement of former CEO Helen Byrnes, CCE. Iglesias was previously president/CEO of Salal Credit Union in Seattle and he also has executive level experience with two of Washington States largest credit unions--BECU and Washington State Employees Credit Union.

Anniversary, from CUES.org Member News

Mon, 17 Oct 2011 15:14:06 CDT

To celebrate its 75th anniversary this year Bellco Credit Union, Greenwood Village, Colo., is offering double point values for purchases on all new Bellco Visa Platinum Rewards credit cards. In addition, those who open a Bellco Visa Platinum Rewards credit card will receive an additional 2,500 bonus points for their first eligible purchase. The CU has one CUES member.

Community Involvement, from CUES.org Member News

Mon, 17 Oct 2011 15:13:21 CDT

In honor of this special day, PCM Employees Credit Union, Green Bay, Wis., invites its members to its Annual Credit Union Day Cook-Out. The CU has one CUES member.

Community Involvement, from CUES.org Member News

Mon, 17 Oct 2011 15:12:35 CDT

Consumers Credit Union, Kalamazoo, Mich., invites members and the community to celebrate International Credit Union Day all week long with refreshments in its branches, a kids coloring contest, a food drive and a special drawing for everyone who provides their email address or verifies their current one on file. Members who bring in a non-perishable food item for the Better World Food Drive will receive a free reusable grocery tote. The CU has six CUES members.

Community Involvement, from CUES.org Member News

Mon, 17 Oct 2011 15:11:34 CDT

In honor of International Credit Union Day, San Francisco Federal Credit Union donated $5,000 to support the efforts made by the World Council of Credit Unions. The CU has nine CUES members.

Community Involvement, from CUES.org Member News

Mon, 17 Oct 2011 15:10:54 CDT

To celebrate International Credit Union Day, FORUM Credit Union, Indianapolis, invites its members and the whole community to FORUM Financial Week”; from Oct. 17-21. Activities at all FORUM CU branch locations include free credit checks, budgeting with a branch representative, savings specials, and kids activities. The CU has five CUES members.

Hope for the Hopeless, from cumanagement.org Daily Deposits.

Mon, 17 Oct 2011 01:00:00 CDT

October 17, 2011 The man in the violet lacost shirt is a GESRO mobile banker. His customers are taxi drivers, food vendors, blacksmith and petty traders. Ghanas economy may be booming. In fact according to economic experts, the country leads as the worlds fastest growing economy in 2011 with gross domestic product up 20 percent this year, and the largest per capita income in West Africa. Yet it must not be forgotten that All that glitters is not gold.”; In reality, not everyone finds it rosy here. To many street hawkers, petty traders and low-salaried government workers, especially those in the countrys western region where oil discovery seems to impact more on peoples lives, they could be so marginalized as to sing the refrain Water, water, everywhere, but not a single drop to drink.”;That is the paradox. The irony of poverty in the midst of plenty. And that is superbly where GESRO Co-operative Credit Union comes in handy as the beacon of hope to help the wealthless become wealthy, create jobs for the jobless, build homes for the homeless, raise the worthless to be worthy, and kindle hope to the hopeless.Holding the bull by the horns, GESRO Co-operative CU has ventured into three comprehensive planned programs meant to prudently manage human and material resources sustainably. This is essential to remove poverty and promote development.The three programs are: the Bobrapa”; Metal Box Saving – Living a Good Life; Mobile Banking – Jobs for the Jobless and Land And Building Scheme – Homes for the Homeless. For after all, whats life to GESRO Co-operative CU, when people in our community do not have anything to look forward to, money to live on, a place to lay their heads, or solid footing from which to launch their visions and dreams?Living a Good LifeThree years ago GESRO Co-operative CU began an innovative idea to fight poverty in its major catchment areas of Sekondi-Takoradi, Tarkwa, and Daboase, on which the CU draws for members. The CU initiated a savings system known as Bobrapa”; Metal Box Savings, which literally translates to leading a good life saving system.”;With this program, a metal savings box with a slot and two keys was introduced and supplied free of charge to street hawkers, petty traders and other low-income earners who wanted to elevate themselves from poverty by controlling their unbudgeted expenditures. One key is kept by the member and the other at the CU office.Through this box, a member can deposit any amount, no matter how small it may be, through the slot any time he/she wants to save. The deposit can only be retrieved biweekly or monthly when a CU staff person drives out in the CUs pickup truck to open, record and issue a receipt to pay into the members account.For such small depositors, this savings has been of convenience since it has helped them deposit smaller amounts at irregular times instead of spending that money on unplanned items.It has also assisted poor people from having to travel daily to the CU office to save, and extended saving services to those in far areas. In most recent times, the CU has entered into a partnership with a communication network that will allow members to automatically save, on a daily basis, through mobile transactions.Such savings have grown that the members now have trading capital and seed money for their ventures which are often doubled or tripled with credit union loans payable in 36 months, to enable them to step out into business.Jobs for the JoblessTo whet the appetites of such low-income earners to ask for more”; like the fabled Oliver Twist, GESRO Co-operatives CU, reminiscing on the popular Ghanaian adage that Poverty is madness”; has gone another step higher to save these vulnerable groups.This time, it has come out with a mobile banking system that allows street hawkers who dont own shops to use their mobile devices to save toward shop ownership. About 13 CU officers have gone round in the Sekondi-Takoradi Metropolis to register over 500 street hawkers who earn GHC3 – GHC5 (three to five Ghanaian Cedi, or 50 cents to $2) a day without permanent stationary shops. Saving about $2 a day for 18 months can enable these hawkers to own such shops furnished and stocked with goods worth GHC3000 ($2,000), repayable in 36 months.After registration and identification with photo ID cards tagged know your customer compliance,”; all they need do is to pay the savings to the collector who comes to them on the street and issues computerized receipts using a mobile device. The deposit information is automatically transferred into a database in the GESRO Co-operative CU office to ensure efficiency and reliability.The best news is that the CU tops up whatever savings for them to the target amount of GHC3,000 ($2,000) to enable them to own shops with furnished goods. In other words, members save $1,080 and the CU loans them the rest.So far, this idea has caught on well with the hawkers who, with their ability to save only small amounts, cannot get access to major banking facilities.Their joy is heightened by the fact that they need not walk to any bank to perform any transactions but rather GESRO Co-operative CUs mobile banking system comes to serve them where they are.This is savings made simple. It also replaces unregistered local susu,”; who have sometimes defrauded people of lesser means.And if this is not jobs for the jobless, then what else?”; asked Grace Appiah, one hawker the program has served.Home for the HomelessTwo years ago GESRO Co-operative CU created the idea of a GESRO village of over 200 houses with an estimated population of 5,000 at Apowa in the Ahanta West District. The project is ongoing.The CU bought the land and made payments to the landlords before later allowing interested members to make payments on the loans.However this year, a four-year own your own land to build”; scheme has been set in motion. Through this effort, 2,000 acres of land have been acquired at Eshiem in the Essikado Traditional Area to assist the members in having somewhere to lay their heads.A plot of land that can accommodate at least a five-bedroom house of 100X 70 and costing GHC2880 ($1,920) is to be allocated to such members with monthly payments of GHC53 ($35) spread over four years.GESRO Co-operative CU is also helping them build the houses by providing loans, cement, iron rods and roofing sheets, under strict monitoring.In Ghanaian parlance, it is said that A visitor asks of your home, not your money.”; And that is what these workers want.To facilitate such housing scheme, the CU negotiated with a United Kingdom-based firm, Angel International Finance Company to build the houses to rent to members at a monthly rate of GHC151 ($100), used as a five- to 10-year mortgage.The newsy crux of this scheme is that such workers pay the rent to own the houses for good.Real ChangeWith these triumvirate visions, GESRO is changing the lives of many men, women and children which will not only help them live longer but also live well as humans. By moving along with them to provide such facilities through their savings, it is helping to fill their golden years with their dreams and visions of wealth, jobs, homes, hope and the worth of lives better lived.What a gleam of hope for the hopeless! And GESRO is the impetus behind it!!Kusi Boachie Yiadom is CEO of GESRO Co-operative Credit Union, Takoradi, Ghana – West Africa.

Exploring Credit Unions Around the World, from cumanagement.org Daily Deposits.

Fri, 14 Oct 2011 01:00:00 CDT

October 14, 2011In celebration of International Credit Union Day, Oct. 20, Credit Union Management is focusing on credit union movements around the world. The first installment examines the industry in the Baltic countries of Latvia, Lithuania and Estonia. In this Q&A, Brigita Baltaca, board member of the Latvian Association of Cooperative Credit Unions, vice president of Lielvarde Community Credit Union and assistant professor in management at the BA School of Business & Finance, Riga, Latvia, discusses her countrys CU experience.What is the history of the Baltic CU movement? The Baltics, like in the rest of Europe and North America, experienced the classical history of credit cooperatives that started in the beginning of 20th century. The history of the Baltic credit union movement dates back to the same and even earlier times than the American one and is based on the same principles of belief in the power of cooperation and self help. Unfortunately, with the establishment of the Soviet regime in 1940s, this self-help movement in all three countries was destroyed. After regaining independence--Lithuania in 1990, Latvia and Estonia in 1991--the Baltic states had to struggle to free themselves from state ownership and the centralized support system in all sectors of the economy. The existing financial and crediting system did not meet with the needs of the general public. It was necessary to have a type of financial institution that would be able to meet the interests of people with small incomes and possible deposits, thus really supporting the population to solve their personal financial matters. Due to the positive past historical experience, development of credit unions was considered as one of the most prospective possibilities to solve the problems mentioned above.Describe the CU system today: Today in Lithuania there are 66 credit unions joining over 75,000 residents, including farmers, workers, students, medical staff, and members of religious and public organizations. The total number of assets of the CU system there is $520 million U.S. dollars.Latvia has experience in organizing credit unions for employees of big enterprises as well as for residents of rural communities since 1995. Currently there are 34 credit unions in Latvia, ranging from 90 to 12,200 members and $10,000 USD to $9 million USD in assets. The system has a total of $22 million in assets.There are 22 credit cooperatives in Estonia, including nine credit unions that are mostly rural community-based institutions. They account for less than 1 percent of the financial market and serve approximately 2,700 members in total. They range in size from a 52-member financial institution to one with 569 members. Total CU assets in Estonia are $16 milllion. Why are credit unions important in Latvia, Estonia and Lithuania? Development of cooperative savings and credit organizations is essential in our countries because it also serves as a vehicle for democracy and participation in the local community for thousands of people who have become socially passive through the breakdown of the old system. Credit unions actively promote education of their members and employees, along with the general public, in the economic, social, democratic and mutual self-help principles. As member-owned, not-for-profit cooperative financial institutions, operated democratically by members, credit unions have proved to be agents of change”; in a society on its way to become a civic society.The case of credit unions in Latvia has proved that education and training of credit union members results in the active involvement of residents in social and economic activities of their community. As credit unions were generally started by people who did not have previous experience in organizing financial institutions, credit union supporters had to actively promote the education of groups of people who wanted to start, together with the general public, in economic, social, democratic, and mutual self-help principles. Credit unions, reasonably promoted and fostered, potentially could play an important role in Latvian society by helping low income people to organize access to necessary financial services.What are the opportunities and positives for your credit unions right now? Latvian credit unions have raised peoples self-confidence and belief in their own abilities. Rural credit unions foster participation of their members in the local economy, not only by pooling their financial resources but also by investing their time and skills, thus creating considerable social capital. Just working on establishing a credit union energizes people and makes them believe in themselves. It is also a tremendous investment in democracy-building: Debates, voting, decision-making all take place in a collegial atmosphere, where people learn new social skills. Therefore the role of credit unions in the development of communities should be judged not so much by such quantifiable measures as assets and membership, but the opportunity they provide for people to become engaged in the development of their communities.What are the challenges? Contemporary technologies offer small credit unions an opportunity to compete with the big commercial banks through smart and creative use of technology. The particular challenge for the movement in Latvia is the imbalance in the distribution of urban and rural credit unions.Currently our credit unions are facing similar challenges to our U.S. counterparts as the external economic environment continues to make life very difficult for many credit union members.How did you get involved in credit unions? At the end of 1994, the World Council of Credit Unions, with the financial support of the United States Agency for International Development, started its technical aid project in Latvia, focusing on both credit union development and the creation of an enabling environment for the implementation, growth and sustainability of financial cooperatives. I had this wonderful opportunity to be a member of the project team and thus to participate in the establishment of most of the currently operating credit unions of Latvia.What are your hopes for the future of credit unions? My hope is for credit unions to become the primary provider of retail banking services to the citizens and communities of Latvia.

CFO Focus: Top 5 Tips for Reporting, from cumanagement.org Daily Deposits.

Thu, 13 Oct 2011 01:00:00 CDT

October 13, 2011Credit Union Management magazines Web-only CFO Focus”; column runs the second Thursday of each month.In the 30-plus years Ive worked with C-level executives at credit unions, a constant challenge has been how to more effectively report information to the volunteers on the board of directors. As you know, the supervisory/audit committee and the board of directors do not work at the credit union every day. In addition, many do not have a practical financial background – especially if they are new volunteers. This article gives some simple – yet practical – tips on how to more effectively report financial information to your credit unions volunteer audience.1) Keep it simple. In my career, I have probably examined thousands of reports to volunteers. Many had so many numbers on the page and such a small font that you would need a magnifying glass to read the report. Here is a practical tip: More numbers crammed on a page do not necessarily equal a highly valued report. A better approach is to have an upfront section with summarized basics – summarized financials, executive summaries on audit reports, etc. Keep the font readable – remember most Volunteers are seniors.”; Then in an appendix (or a series of appendices), have the detail you believe is necessary, crossed referenced with summarized reports. This serves two purposes: a) it focuses directors on the summarized information up front, which is generally easier to understand and b) if questions or detail is needed, it is readily available in another section (the appendices).2) Remember that education is key.Lets face it: Most credit union volunteers do not have a lot of financial or practical credit union experience when they first become directors. In some cases, I have witnessed people with over 10 years of credit union volunteer experience still struggling with basic credit union concepts. Since volunteers are a very important part of the direction and safety and soundness of the credit union, it makes sense for them to be brought up to speed”; on many concepts, best practices and issues facing credit unions. It all comes down to this: Educated volunteers not only can perform their duties better, but their understanding of what is being reported also becomes more meaningful.I have seen a lot of approaches to educating directors, and many approaches work. An up-front orientation for new volunteers – which includes basic financial statement understanding – is a key best practice. Requiring that volunteers take (and pass) credit union director courses, such as the online series offered through CUES Director Education Center, is a valuable tool. (CUES Director Education Center is a benefit to CUES Director members and Center for Credit Union Board Excellence members. Any credit union volunteer—member or non-member--can take Understanding Credit Union Financial Statements”; for free.)3) Use visuals to make your point.I have seen entire board packets with only narrative and numbers. To add understanding, various visuals help in the reporting process. Color graphs and tables obviously can enhance the understanding of information. As another example, if you have a balanced scorecard or other metrics to report various statistics to volunteers-- using a "green light" if youre ahead or meeting your goals, "yellow light" if you are slightly behind goal, or "red light" if you are way behind goal--helps volunteers to understand what the numbers mean. Betsy Guerrero, chief financial officer for $1.2 billion Westerra Credit Union, Denver, explains it this way: "For all groups—the management team, the supervisory committee, and the board of directors—we have been using red, yellow, and green light indicators for some time. It is amazing how the audience of the reports focuses on the visuals first before the numbers, so as to gain a quick understanding of how we are doing in relation to our goals without having to dig through and analyze all the numbers. Then they can ask questions once they have this base understanding of how we are doing. Visuals especially help new volunteers get up to speed on how we are doing at achieving our goals at the credit union and in understanding our key performance metrics."4) Report more than just financials.Recently I was a guest at a credit union clients board of directors meeting. One interesting appendix in the board packet was titled, Did You Know?”; Each month, the CEO, CFO, chief lending officer, and chief operations officer teamed up to give a two- or three-page report on interesting statistics and trends from a wide variety of angles: inside the credit union, credit union peers, and local and national information. From month to month the section changed to different items. They repeated many of the items on a 12-month cycle. It was amazing how many times the volunteers referenced the Did You Know?”; section, and several comments were made by directors that the information was very valuable and interesting.”; So exactly what was in that popular section? There were numbers, but also many graphs, tables and narrative. It was colorful and easy to read and understand. It also told a story. In the month I observed, the topic was how members tastes”; and uses of financial tools”; were changing. Here is only a partial list of what was covered: credit union-specific: branch, drive-up, Web-based, and ATM transactions for the last 10 years (to show the long-term trend); financial institution industry: bill-pay usage, mobile apps, branch numbers, financial institutions (banks and credit unions); the information was both historical and projected based on studies; and local and national trends: demographic and population shifts, etc. 5) Become a go to”; person for information.Earlier this year, I had a CFO confide in me that the CEO of the credit union had directed volunteers with questions to first contact the CEO and he in turn would ask other members of management to answer the question on a case-by-case basis. Personally I believe this filtering of information flow”; sets a bad precedent. In my view, the best practice is for any board to be able to ask any member of management a question if deemed appropriate.It also is generally best practice for the CFO to be on call”; to answer questions from the board. This may even extend beyond financials. From time to time your opinion about a pending regulation, competitive practice, or even an industry trend may be asked. If you are prepared to answer – even jointly with the help of your fellow management teammates – it will give the volunteer an impression that you are more than a numbers person.”; After all, there is a need for future CEOs! Bill Goedken is president/CEO of Goedken Consulting Group, a firm that helps financial institutions with ALM and strategic planning. He is also the founder and former CEO of Profitstar, Inc. and inventor of the popular PROFITStar ALM model. In addition, Goedken is vice chair of $1.2 billion Westerra Credit Union in Denver.

NextGen Know-How: Confront Your Gremlins, from cumanagement.org Daily Deposits.

Wed, 12 Oct 2011 01:00:00 CDT

October 12, 2011Credit Union Managements online-only NextGen Know-How”; column runs the second Wednesday of the month.A friend was recently telling me how she was so stressed, that she felt paralyzed and was not taking action toward her goals. She had a long list of things to do for a new, exciting project, but she found herself procrastinating and focusing on low value tasks. She couldnt understand why she had such a hard time taking action on this awesome project that could advance her professionally. I hear these situations often from my clients, and the culprit is usually fear. We may not even realize we have some unsettling feelings around an event or opportunity that we feel should make us happy and elated. But internally, we feel this dread or fear around taking action.The trick is to reflect to determine what the fear is about so you can move past it. When we dug deeper, my friend realized she had a fear of failing. Rather than take action on the project and fail, her inner critic—sometimes called a gremlin”;—was keeping her from taking action. Subconsciously, by not taking action, she was rewarding herself short term by avoiding the negative feelings—but sabotaging her long-term goals.We all have internal gremlins that disguise themselves as friends but are actually self-sabotaging. They seem friendly because they help us to justify thoughts and actions that feel better in the moment. These gremlins want us to play it safe—their job is to protect us from disappointment, change and failure. The result is making short-term choices that make us feel better in the moment, but threaten our long-term goals. Procrastination, overeating and avoidance are all byproducts of a pesky gremlin. These actions are harmful to our well-being and long-term goals.Getting past your gremlins will enable you to live a more rewarding, fuller life. You will be more proactive and in control of your destiny. You wont waste your energy on negative, self-defeating behaviors and will free up positive energy. You will reduce stress and accomplish more. Below are five tips for blasting your inner gremlin:Become aware. When something feels off internally, ask yourself, What is behind this feeling?”; Begin to notice your gremlins so you can quickly cast them aside and make better choices. Sometimes being aware of what is holding you back is enough to tackle the issue. For my friend, she feared messing up the project, looking stupid and losing out on the promotion. Once she was able to articulate her fears, she was ready to move past them.Ask your future self. If you are having a hard time getting rid of your gremlin, ask your future self what to do. Think about yourself 20 or 30 years down the road. Ask that person what he or she would do. Most of my clients who use this strategy say their future self tells them they are wasting energy on their fears, and that they should go after their goals and stop worrying. Putting things into perspective can help clear your gremlin.Distract yourself. Replace bad habits with behaviors that distract you from the fear or problem you are dealing with. If your issue is procrastination, take action—any action—that will move you forward. My friend decided she would start the project the next day no matter how she felt and call me that night to tell me about her progress. It worked! Once she got started, she became excited and her perspective and energy around the project changed.Envision success. Imagine yourself achieving your goal or dream. My friend imagined herself working through the project flawlessly. This included running a successful project team, envisioning herself brilliantly presenting the findings to the executive team, and receiving many congratulations after her promotion. Envisioning success allowed her to get in touch with the positive feelings that increased her excitement. Practice, practice, practice. We all have gremlins, and you may not always choose the best actions or behaviors. Dont beat yourself up. Start the next day new and keep starting over until you have changed the habit or moved past the gremlin. You cannot change the past, so focusing on what you havent done will only drag you down and sabotage your future. Move forward and make better choices.Laurie J. Maddalena, MBA, CPCC, PHR, is a certified executive coach, consultant and founder of Envision Excellence, LLC, Rockville, Md. She was also an HR executive at a $450 million credit union. Contact her at 240.605.7940 or lmaddalena@envisionexcellence.net.

Teaching Smart Money Management: Financial Fitness, One Habit at a Time, from cumanagement.org Daily Deposits.

Tue, 11 Oct 2011 01:00:00 CDT

October 11, 2011Credit Union Managements online-only Teaching Smart Money Management”; column runs the second Tuesday of the month.The analogy between weight loss and financial education has been drawn more than once. You can know exactly what you need to do to get in shape and lose weight, but until you actually make changes, take steps, and do something about it, nothings going to change no matter how many books you read, classes you attend, and commitments you make. Until you take action, it just isnt happening.Its exactly the same way with financial education. All the classes in the world are not going to change behaviors…unless your members decide they really want to change. Thats not to say you shouldnt offer financial education to your members. But we need to be honest about the reality, face facts, and perhaps make changes, or at least go forward with knowledge of whats working, what could be working, and what simply isnt working.Recently, a friend recommended a weight loss program (yup, Im still struggling with baby weight … not telling how many years its been!) which seemed similar to several others Id heard of with one intriguing difference: Instead of adopting the entire diet overnight, theres a buildup over eight weeks.Whats nice about this (and this is actually spelled out in the plan as a benefit and a difference between this and other programs) is that youre developing new habits, one at a time, rather than making radical changes all at once. I dont yet know if this plan is or will be sustainable, but it certainly sounds more promising than anything else Ive come across.So far, its working. Im in my second week. For the first week, the one new habit to establish was eating one high-water content meal (fruits or vegetables) per day. Easy enough! Im still snacking on vanilla ice cream and caramel popcorn, so replacing breakfast with a bowl of fruit was easy and I actually found that once I did it for a few days, fruit was all I wanted in the morning. This week, the new habit is five to 10 minutes of exercise per day. Not a whole lot, but it lays the foundation for a new habit to develop. Again, do it for a few days and it feels like somethings missing when you arent able to do it. Next week will be a challenge for me, since the new habit is replacing between-meal snacks with healthy alternatives. But Im feeling so good about the two new habits Ive successfully implemented, that Im ready to go for it. Best part? I see that I can really live with these changes long term.So heres what Im thinking. Instead of a financial literacy program that tells members what they need to do all at once, what about a system for developing one good financial habit at a time?A program like this would be customized to your membership or even to each individual member. For example, in the first month, members would be asked to balance their checkbooks weekly. The next step could be saving a small part of their paycheck for six months. Yes, these habits take time to develop, but what if a program like this actually helped members make the changes they want to make for lifelong financial well-being? Wouldnt it be worth the time?A habit-building financial literacy program could be developed in any number of ways. For example, what if members could pick their own eight habits to develop?What if someone at the credit union worked individually with each member who expressed an interest in financial education, tailoring a plan to their needs?What if members could work together, supporting each other as they make changes?These are all just ideas, and I dont know if theyll work. However, asking members to drop destructive habits cold turkey is a nice thought, but unless a member is seriously motivated, it wont go anywhere. Giving members the support they need to establish good habits in a reasonable timeframe, ONE HABIT AT A TIME, may be the answer that all of us have been seeking.Is anyone out there already doing this? Do you have an existing program, or one youve built in house, that approaches financial literacy from a ground-up, long-term perspective?If so, Id love to hear from you. Please, drop me a line or post a comment below! And while Im waiting to hear from you, Ill just grab a glass of water. This isnt news to me, but there are lots of benefits to drinking enough water every day, and that habits coming up soon…so why not get started a bit early? Laura Enock is CEO of CUVA and publisher of www.CUcontent.com, a social media, website and newsletter content service for credit unions. Sign up to receive free marketing content every week at www.CUcontent.com.

Mobile Banking Vendor Scorecard, from cumanagement.org Daily Deposits.

Mon, 10 Oct 2011 01:00:00 CDT

October 10, 2011Javelin Strategy & Research highlights a number of trends that will significantly affect mobile banking for financial institutions, vendors, and consumers in its latest research report — 2011-2012 Mobile Banking Vendor Scorecard: Mobile Banking Has Moved from a ‘Nice-to-Have to a ‘Must-Have Channel.”; After two years of flat growth, consumer mobile banking jumped from 19 percent to 30 percent in 2011, corresponding to a rise in financial intuitions offering mobile banking and an increase in consumer smartphone ownership. The triple play—mobile banking via SMS text, mobile browser and downloadable apps—is emerging as the new norm, with four out of five vendors now offering it. However, security remains a top concern, as almost half of consumers cite fear of security as the main reason they do not use mobile banking.Mobile banking, once considered a ‘nice-to-have, is now a ‘must-have for FIs who want to stay competitive and meet growing consumer demand for this channel,”; notes Mary Monahan, EVP/research director—mobile, at Javelin. Vendors seeking market leadership will also need a thorough understanding of how to incorporate these trends into the development of their solutions. For example, the mobile banking industry is consolidating, with players bringing mobile technologies in house. Tablet adoption by consumers is growing at a tremendous rate, and financial institutions and vendors will need to provide access to mobile banking specifically designed for tablet users.Javelin also identified those operating systems that vendors will need to support, as well as the mobile banking features consumers want.The results are in,”; says James Van Dyke, Javelin president. Fiserv (a CUES Supplier Member, Brookfield, Wis.), FIS and Sybase received the highest scores. Fiserv won Best in Class,”; while mFoundry won Path to Mobility.”; With all these industry changes, it will be interesting to see how vendors fare in next years report.”;Javelin scored the offerings of 15 major vendors, using data from surveys conducted with more than 10,000 consumers and executive interviews with six financial institutions.

Create Banking Alternatives for the Hispanic Community, from cumanagement.org Daily Deposits.

Fri, 07 Oct 2011 01:00:00 CDT

October 7, 2011Although the Hispanic community has traditionally been coined emerging,”; the term isnt all that fitting in todays business environment.The 2010 U.S. Census revealed that one in six U.S. residents is Hispanic. The census also revealed that most of the growth in the U.S. Hispanic population was due to birth, not immigration. This means that by 2050 the statistic will soar to one in three. One can see why credit union decision-makers need to understand the Hispanic consumer today.Nearly 50 percent of Hispanics in the U.S. are either unbanked or underserved. While there is certainly an opportunity to gain market share from Hispanics who already have a strong financial relationship, CUs should consider the biggest opportunity to lie with the segments typically ignored by financial institutions.By one estimate, the underserved spend more than $29 billion each year on nonbank and subprime financial services. Money orders and check-cashing make up the majority of this spend, and quite often, consumers without a traditional banking relationship are paying disproportionate fees to access these services.For CUs interested in the Hispanic market, it makes sense to think in terms of products and services that would appeal to consumers who dont have a traditional banking relationship already in place. Creating affordable alternatives to meet the needs of underserved Americans not only has the potential to get a foot in the door of the Hispanic community, it also helps your CU lead its customers down a path to financial responsibility.CUs Focus on Hispanic Market With Tailored Products Between 2008 and 2009, the number of credit unions either executing or planning Hispanic-market programs more than tripled. One program that has achieved great success in the Hispanic market is a reloadable prepaid card. Perfectly tailored to the Hispanic consumer, this type of offering has the potential to ease consumer financial pain, to build trust between cardholders and an issuing CU, and to generate fee revenue and loyalty from a powerful market.Because they dont allow for overspending, reloadable cards help underserved consumers manage a budget-conscious lifestyle. With these cards, Hispanic-community cardholders can manage their money, as well as ease their way into the financial mainstream at your CU. Cardholders can load their paychecks onto the card to achieve a direct deposit-style relationship with your CU. Aside from the cost savings that payroll cards provide the cardholder, the cards also save time. Typically, after paying for a check-cashing service to make their funds available, underserved consumers then need to secure money orders to pay their bills. This costs money, of course, but it also requires the consumer to invest time, securing and delivering the money orders to several different billers. With a reloadable payroll card, a cardholder can pay these bills online or over the phone, as well as enjoy conveniences like online shopping and pay-at-the-pump gas purchases and text message alerts.Other benefits of reloadable prepaid cards include:Travel – Reloadable cards will appeal to traveling Hispanics who see the value of a safe, convenient alternative to taking cash on the road within and outside of the U.S. Budgeting & Credit History – Hispanic teens and young adults provide an excellent target market for the reloadable card, as they work to learn the principles of budgeting and build their own credit history at the CU in a safe, controllable manner. Mobile – Hispanics consistently over-index on studies regarding smartphone use. Therefore, any reloadable card program targeting Hispanic cardholders must include the ability to access funds and account information remotely. Text alerts are another great feature cardholders not only enjoy, but are coming to expect. Money Transfer – U.S. Hispanics with family members outside the country will appreciate the safety and convenience of sending money on a card, not to mention the cost savings from not having to pay a fee every time they want to transfer money to relatives.CUs are in an ideal position to nurture the financial growth of prospective members, quite possibly turning underserved consumers into some of their most loyal customers. Hispanic consumers prefer high levels of member service, valuing personal relationships over things like speed and efficiency. For that reason, credit unions are well-suited to provide the financial services the Hispanic community needs. With a culture of people helping people,”; CUs offer this population a unique alternative that mirrors the Hispanic culture. Miriam De Dios, is vice president of Iowa Credit Union Leagues Coopera Consulting, Des Moines.

PR Insight: Is Public Relations an In-House Function or Should You Use an Agency?, from cumanagement.org Daily Deposits.

Thu, 06 Oct 2011 01:00:00 CDT

October 6, 2011Credit Union Managements online-only PR Insight”; column runs the first Thursday of every month.Its budget season. Your credit union recognizes the value, increased brand recognition and market share PR helped build in 2011. Management knows that a well-executed strategy requires an experienced PR professional. The question then becomes, Should we hire an agency? Or should we do PR in house?”;The answer is not simple. Each credit union has specific needs, goals, budget and staff resources that all influence the best approach to building a successful public relations team and executing thorough PR programs. Average Costs for PR Services Internal Salaries: Hiring an employee to handle PR can be cost effective if you have access to talented professionals. According to SalaryExpert.com, the nationwide average salary for a credit union PR manager is $61,000 per year. Less experienced professionals will demand less salary, but the trade-off will be less experience managing PR strategies. Hourly: Like a law firm, a PR agency will bill a flat hourly rate and charge for the work completed at the end of each month. Credit unions should be clear on setting expectations for how to handle work that exceeds the expected hours and closely track hours to avoid surprises. Average rates range from $150-$250 per hour. Monthly Retainer: This is the most common fee structure and, in most cases, the most cost-effective for a long-term PR program. With a monthly retainer, the agency charges a flat rate per month, which covers the expected work needed to cover the credit unions PR goals. Some agencies cap their work if they use up”; all their hours paid for, while others will continue to work on the account without charging extra. Fees vary widely, ranging from $1,000 per month for a solo consultant to upwards of $50,000 for large, complex campaigns. Project-based: For some credit unions, there is a specific project that needs promoting. Using a PR agency on a project works best when there is an internal team in place that needs additional support to handle a tightly defined objective – launching a new service, promoting a high-profile event or handling a crisis are common examples. Costs depend completely on the scope of the project, but expect to pay at least $2,000 for a small, one-month project. Scope and Goal of the PR Program The first thing a credit union must do is decide what it wants to accomplish with PR. A well-run program educates members and the local community on the great work a credit union is doing, with an emphasis on the soundness, safety and value working with a credit union provides. Credit unions should also plan to prepare for handling a crisis, such as identity and privacy breaches, compliance issues or legal troubles.In-House: Access to management and being involved in business planning is one area where having an in-house team can be effective. Planning, messaging and execution can be easy for a communicator who lives and breathes the credit unions values. It is also easier for an internal team to be a part of the management function and meld PR strategies with the credit unions corporate goals from the very beginning.Agency: If a credit union has not previously engaged thoroughly in PR, an agency brings a level of expertise, professionalism and strategic counsel that removes the learning curve for the credit union. Agencies have pre-existing relationships with key media, PR monitoring tools and subscriptions already in use, and decades – if not centuries – of experience.Even credit unions with experience running PR programs will often rely on their agency to manage all aspects of the PR program, leaving credit union officials the time and energy to focus on their primary skills and responsibilities.Staffing Resources While internal PR can be very effective, it works best if the company has the right resources.In-House: Small credit unions may dedicate one or two people to managing all external communications – PR, advertising and marketing. The advantage to this approach is that all communication channels should be integrated. The difficulty can be in staffing the department with one or two people who have all the requisite skills.Larger credit unions may consider hiring a full team responsible for communications, which enables them to hire specialists for each area of the division. However, the vice president or manager responsible for communications should have proven experience managing each channel.Credit unions should also consider the access they have to PR talent. Larger cities or areas near universities with strong PR programs will have the most access to both experienced and well-educated PR talent. Credit unions should post jobs with local PR association chapters (such as the Public Relations Society of America) look for candidates with focused PR training, or seek professionals who have gained accreditation, designated with APR. Agency: Agencies are able to provide credit unions with experienced talent. A typical agency team will use a combination of veteran PR managers to provide strategic counsel and less experienced talent to handle tactical work. Agencies can also spread the costs of services and tools across multiple clients, reducing the overall costs.However, credit unions should acknowledge that their agency team might have several clients, and there is always a learning curve for the agency to absorb and understand the credit unions culture, goals and brand. The way to mitigate the learning curve is to work with specialized agencies that focus on credit unions or financial institutions. Just as in any partnership, credit unions should take care to do their homework and select an agency that is ethical, professional and experienced working in financial services.Budget Decisions Cost is another factor in deciding whether to work with an agency or hire a PR staff internally. Costs can vary widely depending on the scope of a PR program and the resources needed to execute the complete strategy. In-House: Internal costs are, of course, tied primarily to salary and benefits paid to a PR professional. Salary will vary widely depending on location and the experience level of the professional filling the position. However, credit unions should also consider the costs needed for key PR tools, such as media monitoring, research tools or press release distribution services. Agency: PR agencies charge for their services, usually as a monthly retainer or based on defined projects. Credit unions should also expect to pay for expenses incurred on their behalf, such as travel, graphic design or printing costs. Just be sure that outside expenses are clearly outlined during the sales process.Ultimately, having no PR is more expensive than either in-house or agency-provided services, since with no public presence, members and prospective members will work with those financial institutions that can more effectively communicate their value.Whichever direction your credit union chooses, make a commitment to hiring PR-trained professionals, participating in public relations planning, and watching your organizations brand and reputation grow among your key audiences.David Jones is a senior account agent for William Mills Agency, the nations largest independent financial services and technology public relations firm. Follow William Mills Agency on Twitter as well as check out its FinTech Marketing blog.

Good Governance: The Journey to ERM, from cumanagement.org Daily Deposits.

Wed, 05 Oct 2011 01:00:00 CDT

October 5, 2011 Credit Union Management magazines Web-only Good Governance”; column runs the first Wednesday of every other month. The 21st century dawned like an angry hydra-headed monster attacking every known enterprise on the planet. Credit unions werent spared as some here-to-for unthinkable failures drained member value and challenged assumptions about our models. The National Credit Union Administration became exercised enough to issue new requirements for risk management. Enter the era of Enterprise Risk Management.”; ERM is business short-hand for the need to take a look at the full spectrum of risks associated with organizational leadership. ERM is quickly becoming the 21st century equivalent of the quality improvement movement of the late 80s. While much recent activity in financial services may be reactionary to the 2008 meltdown, ERM offers an important advancement in the way any business oversees its enterprise. Credit unions can be deservedly proud of the historical role of the supervisory committee in monitoring financial risks. However, high-performing credit unions are expanding the supervisory committee role beyond financial controls and external audit to a more expansive look at the risks of an enterprise. ERM efforts better define and assess risks and annually choose non-financial risk areas for investigation. This is certainly a more complex undertaking, yet deserving of attention and movement. Starting Out While the relationship between supervisory committee and credit union directors may span the gamut from cozy to testy, it is safe to say the traditional role of the committee has been a valuable part of the industry. That said, its not unusual for supervisory committees to become complacent, lose energy, and plug along without great support from the board. Committee leadership, processes, relationship to the board of directors, and relationship with management are all important pressure points for a successful committee. A first step in refreshing the committees value to the members might be to conduct a self-assessment of these elements. Much like the annual board self-assessment can lead to renewed growth and energy, so can a committee self-assessment help begin the ERM dialogue. ERM Dialogue Before a supervisory committee may foresee its ERM contribution, the board of directors needs to educate themselves about this approach. While the most progressive CUs are beginning to hire vice presidents of ERM and the $1 billion CUs are using ERM to cope with the Federal Financial Institutions Examinations Councils risk assessment standards, many CUs are slow to enter the dialogue. This becomes a strategic opportunity for board development. Devising a plan to understand the fundamentals of ERM, how ERM works in a financial institution, and what the implications may be for your organization is a worthy effort, regardless of how far you take your formal ERM execution. This may be a year-long effort. ERM Practices ERM asks the organization to take a corporate”; view of risks, a strategic look across the credit union rather than a series of silo views. ERM does not eliminate risk but rather provides a framework for the organization to define its risk appetite and identify and manage risks. A risk is any event or activity that could prevent the organization from achieving its goals. Typical ERM practice defines a several-step process that can lead to avoiding, accepting, transferring or mitigating risks to the business. Many CUs already assess many of those risks in the financial arena by applying due diligence to Sarbanes-Oxley requirements that, while it doesnt officially apply to CUs, certainly has impacted the overall environment in which CUs operate. ERM expands the risk view spectrum to also look at such risks as business resumption plans, leadership succession, technology security, privacy, operational quality, insurance coverage, ethical behavior, performance management systems, personnel policies, and member complaints. The purpose of ERM planning is to anticipate risk areas and prioritize an annual plan for assessment and action. One CUs plan may be very different from anothers, based on sophistication, resources, business environment and past actions on threat risk. Supervisory Committee It stands as a natural evolution of the traditional supervisory committee function that a broader ERM footprint might be established. Certainly this puts pressure on several questions regarding the committee: Do we currently have the talent on the committee to address this broader risk function? Do we have size and resources to handle a full-year ERM plan? What additional support should management provide and how affordable is it? If your CU is over $500 million in assets, you probably want to look at converting a full-time position to ERM leadership. If your supervisory committee is typical, some talent upgrade may be involved, as well as an investment in committee development to fully comprehend the application of this new risk management approach. Whatever our confidence with the CU risk management approach, convening dialogue around the ERM concept is educational and will most certainly lead to strategically different approaches down the road. Les Wallace, Ph.D., the 9Minute Mentor, is president of Signature Resources Inc. and co-author of A Legacy of 21st Century Leadership. He is a frequent speaker and consultant on governance leadership.

Community Involvement, from CUES.org Member News

Tue, 04 Oct 2011 13:37:16 CDT

San Diego County Credit Union was a presenting sponsor of the fifth annual SeaWorld Shamu & You Family Walk for Rady Childrens Hospital on Oct. 1. The CU has supported this event since its inception in 2007. The CU has three CUES members.

Community Involvement, from CUES.org Member News

Tue, 04 Oct 2011 13:36:28 CDT

Philadelphia Federal Credit Union sponsored a team of cyclists in the National Multiple Sclerosis Societys 2011 City to Shore Ride. Six cyclists participated in the race on Sept. 24. Team PFCU raised over $2,500, surpassing the $300 minimum per individual to participate. The CU has nine CUES members.

Community Involvement, from CUES.org Member News

Tue, 04 Oct 2011 13:35:46 CDT

Altura Credit Union, Riverside, Calif., has adopted”; five schools as part of the Moreno Valley School Districts Adopt-an-MVUSD-School”; program. The program is co-sponsored by the Moreno Valley Chamber of Commerce, which supports the idea that a good education makes sense for the business community, and that a collaboration like this gives educators a better awareness of needs in the business world. Most schools develop their own wish”; list, including things like reading to kindergarteners, participating in career day, sponsoring attendance incentives, and leading holiday food drives. The CU has 10 CUES members.

Community Involvement, from CUES.org Member News

Tue, 04 Oct 2011 13:35:03 CDT

University Federal Credit Union, Austin, Texas, is supporting St. Edwards University with a gift of $1.7 million for the renovation of Alumni Gym. In honor of the donation, the University will rename the building University Federal Credit Union Alumni Gym. The CU has contributed more than $2 million to St. Edwards since 1991, and has also supported the university by providing funds for scholarships, event sponsorship, athletic programs, and capital priorities, such as the John Brooks Williams Natural Sciences Center. The CU has two CUES members.

Community Involvement, from CUES.org Member News

Tue, 04 Oct 2011 13:34:14 CDT

Seventeen business and community leaders, professionals, and teachers stepped up to kiss a pig in support of TruMark Financial Credit Unions, First Annual Kiss-a-Pig Financial Literacy Fundraiser. Funds will support inner-city schools lacking the resources needed to teach students responsible personal finance. Over the past three months participants secured sponsors and donations to raise more than $15,000 for the opportunity to kiss a pig in support of financial literacy. The Trevose, Pa., CU has one CUES member.

Community Involvement, from CUES.org Member News

Tue, 04 Oct 2011 13:33:23 CDT

Woodstone Credit Union, Federal Way, Wash., is hosting a free Shred Day event on Oct. 22. This is the fifth year in a row the CU is offering professional shredding service for community residents. The CU has five CUES members.

Honored, from CUES.org Member News

Tue, 04 Oct 2011 13:32:29 CDT

Paris Chevalier, VP/marketing and communications, Xceed Financial Credit Union, El Segundo, Calif., received a Tomorrow's Star Award from the California and Nevada Credit Union League.

Honored, from CUES.org Member News

Tue, 04 Oct 2011 13:30:48 CDT

Gene Pelham, CCUE, president/CEO of Rogue Federal Credit Union, Medford, Ore., has been honored by the Oregon and Washington Credit Union Foundations as the Credit Union Professional of the Year. The award is bestowed on the industry leader whose outstanding accomplishments have had the most positive impact on their credit union and its members. Judges emphasize the nominees dedication to the credit union philosophy of People Helping People”; as well as civic leadership and charitable activity.

Anniversary, from CUES.org Member News

Tue, 04 Oct 2011 13:29:50 CDT

Langley Federal Credit Union, Newport News, Va., is also celebrating its 75th anniversary in 2011 by giving away a Honda CR-Z hybrid. The CU has three CUES members.

Anniversary, from CUES.org Member News

Tue, 04 Oct 2011 13:29:03 CDT

School Employees Credit Union of Washington, Seattle, is celebrating its 75th anniversary in 2011. The CU planned quarterly giveaways of $7,500 and lots of drawings. Plus members shared memories, which were posted on the CUs website. The CU has seven CUES members.

Event, from CUES.org Member News

Tue, 04 Oct 2011 13:28:14 CDT

FAA Credit Union, Oklahoma City, Okla., has reached $500 million in assets. The CU is also celebrating its 65th anniversary in 2011 and is planning several events for its birthday in December. The CU has one CUES member.

HR Answers: Documenting Employee Problems, from cumanagement.org Daily Deposits.

Tue, 04 Oct 2011 01:00:00 CDT

October 4, 2011 Credit Union Managements HR Answers column runs the first Tuesday of every month. Theres no escaping problem employees. But with 101 prewritten disciplinary write-ups at a managers fingertips, there is a way to escape the headaches, anxiety, and potential legal trouble of performance review or counseling sessions. Completely updated and covering the latest developments in employment law, the second edition of 101 Sample Write-Ups for Documenting Employee Performance Problems by Paul Falcone explains the disciplinary process from beginning to end and provides ready-to-use model documents—in print and on disk—that eliminate the stress and second-guessing about what to do and say. The write-ups cover every kind of problem—substandard work quality, absenteeism, insubordination, email misuse, sexual harassment, drug or alcohol abuse, and more. Readers will also find information on laying the groundwork for a tidy dismissal; tying progressive discipline to annual performance reviews; formally addressing intermittent FMLA abuse; ways to avoid drafting documentation that could later be used against the company; and much more. There is perhaps no more dreaded managerial task than communicating with an employee about a disciplinary problem, but this one-of-a-kind guide helps managers handle any scenario fairly, constructively, and, most importantly—legally. Below, find an excerpt from the book about the need to (and how to) document employee problems. Progressive Discipline and Its Legal Considerations Documenting poor performance and progressive discipline is as much an art as it is a science. Unfortunately, most human resources professionals and line managers dont have the time to study the nuances of progressive discipline, workplace due process, summary dismissal, discharge for cause, and the like. Even when that theory is mastered, however, there remains the challenge of incorporating all those ideas into a written memo that adequately documents subpar job performance or workplace conduct. So its not surprising that many managers avoid writing up employees like the plague. And without a template to follow and samples to emulate, its no wonder many managers create memos that cannot withstand legal scrutiny. If the objective of any disciplinary system is to create and maintain a productive and responsive workforce, then disciplinary actions, when they occur, should focus on rehabilitating employees by deterring them from repeating past problem behaviors. It is simply a fact of the modern workplace that you as a manager are charged with this responsibility. Terminated employees who are successful at winning wrongful discharge claims, on the other hand, typically can prove they were denied due process”;—what we call progressive discipline. They successfully argue, with the help of their attorneys, that your company breached its de facto obligation of good faith and fair dealing”; in managing its employees and in following its own policies. So if youve ever scratched your head about losing a case to an employee who flagrantly disregarded work responsibilities, its probably because an arbitrator concluded that due process was denied. In other words, if the step formula”; outlined in your companys progressive discipline policy is violated, or if you fail to properly notify an employee that her job is in jeopardy, you may end up on the losing end of a wrongful termination suit. Ditto if you dole out punishment (i.e., termination) that doesnt appear to fit the offense. In such cases, arbitrators will conclude that the misuse of your managerial discretion warrants the substitution of their judgment for yours in the handling of a specific worker. Frequently, that results in a lesser penalty (such as reinstatement plus a written warning instead of termination). But what about your rights? Shouldnt workers be held accountable for their actions? Dont you retain any discretion in determining who should play on your team? After all, whose company is it? Well, dont despair. The program outlined in this book is aimed at giving those rights back to you. With the help of this system, here is how discharge hearings should play out in the future: An arbitrator asks a former employee/plaintiff in a wrongful discharge action, I see that your former company offered you an opportunity to take part in an EAP program. Did you contact the EAP?”; The former employees flat response is, No.”; The arbitrator then asks, I see that you were encouraged to fill out a section of this write-up regarding your own performance improvement. Its blank, though. Why is that?”; The apologetic response is, Well, I guess I didnt have time.”; The arbitrator continues: I see. Hmmm. Your company paid to send you to a one-day off-site training program on conflict resolution in the workplace. Did you attend that workshop?”; The employee responds, Yes, I did.”; Finally, the arbitrator closes: So you attended the workshop that was paid for. Yet you did little else to invest in your own personal improvement. And you signed a document showing that you agreed that if you didnt meet the conditions of the agreement, you would resign or be terminated regardless of the reasons for your failure. . . . I see no merit in your argument that you were denied due process or that your organization failed to make reasonable attempts to rehabilitate you. This case is dismissed.”; Youll immediately notice how the burden was shifted to the employee in terms of proving that he made a good-faith effort to become a better worker. To make this fundamental paradigm shift occur, however, you have to provide the employee with resources he can use to improve himself: coaching and commitment, training, and material resources. And thats a win for both sides, since you, the employer, focus on helping your workers and they, in turn, are charged with accepting your invitations to improve. It all begins with due process—your efforts to ensure the employee understands what the problem is, what she needs to do correct the problem, what will happen if she doesnt, and how much time she has to demonstrate improvement. Well explore due process more in next months HR Answers column.

Obstacles in Recruiting, from cumanagement.org Daily Deposits.

Mon, 03 Oct 2011 03:00:00 CDT

Volunteerism has been on a decline in the past 30 years, said Jason Boles, CEO of Fans Created, Kansas City, Mo., at CUES Annual Convention, June 26-29 in Cancun. People are busier and the credit union volunteer role is not sexy. They are many reasons to say no, he said, and few to say yes. The evening meetings and constant reviewing of financial documents does not hold a lot of appeal, especially for younger members, who are busy in their careers and with their families. Boles said credit unions should take a page from how they recruit staff by really putting a lot of effort into it. To attract volunteers, follow these tips from Boles. Know who you are looking for: Identify required skills. Identify required knowledge, experience, etc. Ask: What is the perfect profile”; of a director? Include all in a detailed job description. Open up the search! Go beyond friends and colleagues. Go beyond the original sponsor group. Go beyond (or challenge) the nominating committee. Advertise, advertise, advertise (There was an election?”;) Target market the type of person you are looking for and seek him/her out! Use selling points: ability to network with other professionals; opportunity to grow resume and expand knowledge working in a different industry; opportunity to lead and/or enhance leadership experience; challenging position; ability to truly make a difference; and free meal at every meeting if all else fails, joked Boles! If you are going after that up and coming professional, you need to find selling points that resonates with them,”; he said. Still, dont oversell the role. You need to be honest about the commitment needed: time at board/committee meetings; time way for meetings (strategic planning retreats, etc); and ongoing education. Finally, make recruiting a constant effort, Boles said. Dont just concentrate on it when the board has an opening. Theresa Witham is a CUES editor.

Top Three Disaster Recovery Planning Tips, from cumanagement.org Daily Deposits.

Fri, 30 Sep 2011 01:00:00 CDT

September 30, 2011Editors note: This is Web-only bonus coverage from People Recovery”; in the October 2011 issue of CUES Credit Union Management.In a time when many members regularly utilize ATMs and online banking, credit unions face high expectations of immediate service and availability.These expectations, in addition to expanding business continuity and NCUA regulations, reinforce the need to address business continuity/disaster recovery planning as a program that must be maintained.Credit unions should develop a practical and holistic approach to system and data availability, and leverage business resiliencies where possible. The following tips will help business and IT personnel as they look at ways to improve information availability:Perform a risk assessment. By conducting a risk assessment, credit unions can uncover gaps to focus on in their business continuity plans. Once threats to time-critical processes have been identified, organizations can better prepare to make decisions on how to best protect critical assets.Devise an all-encompassing approach. This approach should include facilities, systems, information, people and partners – and how to mitigate risk for all five areas. This solution should also take into account crisis management, business continuity and information technology resiliency and/or recovery.For example, if a credit union is experiencing a power outage and the current recovery measures account only for the data center systems, this leaves a gap in the CUs capabilities. Even a buildings water pumps and fire sprinkler systems should be incorporated into a recovery plan, so that barring any other threats, people are able to occupy the building and use the available systems.Tier your systems and recoverability. Organizations that do not tier their systems are taking a great risk. Recovery plans should focus on the most time-critical systems first, rather than assuming all systems are equal and should be recovered simultaneously. Decisions on how to tier systems must be driven by business needs – with regulatory, customer and business partner requirements playing a big role in guiding the plan.Bill Hughes is director of SunGard Availability Services Business Continuity/Disaster Recovery Center of Excellence, headquartered in Wayne, Pa.

Community Development CU Case Study, from cumanagement.org Daily Deposits.

Thu, 29 Sep 2011 01:00:00 CDT

September 29, 2011 This is web-only bonus coverage from Helping Save the Ship”; in the October 2011 issue of CUES Credit Union Management magazine. Community Plus Federal Credit Union in central Illinois has seen the good times, and the not-so-good. Back in 1917, Chanute Field opened in Rantoul as one of the initial World War I Army Air Service installations. During the Great War, there was a pilot training school for the Army Air Service at Chanute. Though it closed briefly after the war ended, it soon reopened as a technical training institute. It performed its mission through the Jazz Age, the Great Depression and into World War II. In 1943, 12 civil service employees founded Chanute Field Civilian Employees Credit Union. After World War II, with the formation of the Air Force, Chanute Field was renamed Chanute Air Force Base. Years went by, and Chanute continued to serve as a major training facility. Everything was going smoothly, with no end in sight, and the credit union steadily grew. In the early 1980s there was a base closure scare. Credit union executives didnt stick their heads in the sand. Although Chanute AFB dodged the bullet, the credit union opened up membership to the surrounding area. It first became Rantoul-Chanute Community Credit Union, then, to emphasize its service to a larger area, Credit Union Plus. In 1988, as the Cold War wound down, the base was recommended for closure. Five years later, the axe finally fell. The credit union had made its preparations, but the economic devastation left by the base closure was outside its control. The population loss alone was staggering, as some 10,000 of the 22,000 residents packed up and left. A lot of rental property was dumped on the market. The credit unions response? We adapted,”; says CUES member Michael Daugherty, CEO, and started serving more low-to-moderate-income members. CU executives considered ways they could help the community and make sure the credit union thrived, too. Around 2005, they started thinking about getting a low-income designation. There were a couple of things we had to do first,”; says Daugherty. We expanded to (serve) the whole county, and changed to a federal charter.”; To underscore its community charter, it changed its name to Community Plus Federal Credit Union. In 2009, Community Plus FCU received its low-income designation from the National Credit Union Administration. In February 2010, the U.S. Department of the Treasury announced the Community Development Capital Initiative, which uses returned funds from the Troubled Assets Relief Program. Yes, the same TARP that was used to bail out Wall Street was now helping Main Street. CDCI started making low-interest secondary capital deposits in Community Development Financial Institution-certified community development credit unions and community development banks. Executives at Community Plus FCU reacted with a big Wow.”; We could really take advantage of that money,”; Daugherty recalls thinking. It would put us ahead on our track.”; In May 2008, the credit union had opened a second branch in Champaign. Small as we are, we knew it would run a deficit for a few years,”; Daugherty says. But the economic meltdown that hit shortly after made a few years”; seem optimistic. Although liquidity wasnt an issue, secondary capital was. Executives reasoned that since they were already acting as a community development financial institution, it only made sense to apply for CDFI certification and have a shot at the funds. The application was successful, and now Community Plus FCU is one of only three credit unions in Illinois to be certified, the only one outside of Chicago. The next step was to try for one of the loans, which last for seven years with an interest rate of 2 percent. The application form for the funds isnt a simple one. On the advice of two board members who had experience with grants at other institutions, the credit union turned to the National Federation of Community Development Credit Unions for help. Even so, Daugherty reports, gathering the information required was sometimes a daunting task. The effort paid off, as the 3,200-member, $14.5 million credit union received a $450,000 loan. A small proportion of the funds will go to $500 to $1,000 credit-builder loans, which will help members establish a credit record. Most of the money is targeted for auto loans that will allow members to get to their jobs. Its been tough for residents of central Illinois to get vehicle loans, Daugherty says. Community Plus FCU has been working to establish relationships with both new and used auto dealers. Daugherty hastens to say the CU doesnt do indirect lending–and with its capital ratio strengthened by assets, the credit union now will be able to make more of the loans so badly needed. Its a real win-win. Charlene Komar Storey is a veteran credit union writer based in New Jersey.

Tech Time: Payday Processing, from cumanagement.org Daily Deposits.

Wed, 28 Sep 2011 01:00:00 CDT

September 28, 2011Credit Union Management magazines Web-only Tech Time”; column runs the fourth Wednesday of each month. Adding value to credit unions is crucial to gain and retain members. $321 million, 29,757-member Salal Credit Union, Seattle, has worked with financial technology services provider and consultant CUTEK Inc. to effectively and efficiently offer members payday loans. Together the two have developed SalalReadyCash, a custom automated payday processing system that uses an HTML user interface available from the Episys® core processor of CUES Supplier member Symitar™, a Jack Henry company based in San Diego. Salal CU offers payday loans because it knows its members get them elsewhere at a much higher rate than the CU would charge. The CUTEK system quickens the entire payday lending process from the request of the loan, decision, funding, and printing of the loan disclosure. As a result, members can apply for and receive funds from their payday loans in a timely manner, while Salal CU saves on labor costs to process the loan and has a member history for future loans. The final version of SalalReadyCash went live July 1, 2011. Since then, applications have not gone up, but back-end processing has become more efficient.SalalReadyCash provides the user with a member payday lending profile screen, which includes such information as whether the member is eligible to apply for a payday loan, if he or she has any active payday loans, and a history of any previous payday loans. If the member is eligible to apply for a new loan when the Apply”; button is selected – through a real-time interface with the CoreLogic® Teletrack™ solution—a custom credit score is retrieved.An automated decision is made using the score. The user is then provided the option to execute the loan, which automatically creates the loan file, advances/funds the loan, places the funds in the members share account, and produces both an electronic and paper loan disclosure – one as a member copy and the other automatically sent to Salal CUs imaging system for archiving.We have been offering a ‘manual version of SalalReadyCash for a while now, but it was a time- consuming process taking up to 15 minutes from start to finish,”; says CUES member Debbie Marks, training and development manager for Salal CU. The training department does not process SalalReadyCash loans. Because of our knowledge and experience with our new core processing system, we took on the project of seeing if we could automate the program with the new system,”; Marks notes. CUTEK came in and built a program to fully automate the process and incorporate all necessary checks and balances as well as forms. The entire process now takes 3-5 minutes”; for staff. Members must still apply manually with the CUTEK solution.Previously, staff had to painstakingly research accounts to ensure potential applicants were members with the necessary credit standing, payment history etc. before they could apply for a payday loan. If they were eligible, staff would then manually launch the Teletrack online application and cycle through a series of prompts to further ensure the member was qualified to apply. And if those filters were passed, Teletrack would provide a credit score.After all that, Salal CUs old process still wasnt done. The user then referred to the decision policy to ensure the members score was above a particular threshold for approval. If approved, staff went back to the members account on the host application and manually created the loan and advanced the funds into the members share account. If denied, the user had to manually complete a denial letter. In addition, no payday history was kept.Automating the process saves time for both our employees and our members, reducing staff frustration,”; Marks says. We are always striving to improve the products and services we provide for our members. The SalalReadyCash program helps achieve that goal.”;The payday loans couldnt be originated using the CUs general loan origination system because these short-term loans are approved using Teletrack for credit scoring, rather than more traditional scores from the big three credit bureaus.Mike Lawson is the owner of DML Communications, San Diego.

Supplier Member News, from CUES.org Member News

Tue, 27 Sep 2011 10:38:49 CDT

Affinions (Franklin, Tenn.) Flex Checking solution allows credit unions to reward their members for participating in behaviors that help the CU. For example, members who enroll in online statements, keep a certain minimum balance and pay bills through online bill-pay earn cash back rewards and complimentary ID Theft protection. Visit www.flexchecking.com.

Supplier Member News, from CUES.org Member News

Tue, 27 Sep 2011 10:38:03 CDT

CO-OP Financial Services, Rancho Cucamonga, Calif., and Financial Service Centers Cooperative, Inc., Ontario, Calif., announced that the boards of the two companies have approved a letter of intent to combine operations, unifying credit union shared branch services. Between the two companies, more than 1,700 credit unions nationwide participate in shared branching, making more than 4,300 physical branch locations available to their members, plus 2,200 Vcom® kiosk locations at 7-Eleven stores.

Community Involvement, from CUES.org Member News

Tue, 27 Sep 2011 10:37:12 CDT

Consumers Credit Union, Oshtemo, Mich., is working with the Marvin Okun Insurance Agency to present timely and informative Medicare seminars, which explain the sometimes complicated choices faced by seniors or children assisting their aging parents. The CU has six CUES members.

Community Involvement, from CUES.org Member News

Tue, 27 Sep 2011 10:36:32 CDT

Financial Partners Credit Union, Downey, Calif., hosted a free day of fun at the Columbia Memorial Space Center Sept 10. More than 1,200 attended the event, which featured free admission to the Downey-based museum, games, prizes, a space shuttle bounce house and food. Children also could visit different stations throughout the center, including a robotics station, gravity scale station, rocket launcher (airplane design), and flight simulator (where they learned how to land a space shuttle). Raffles were held every hour and a grand prize Nintendo Wii was awarded late in the afternoon. The CU has one CUES member.

Community Involvement, from CUES.org Member News

Tue, 27 Sep 2011 10:35:48 CDT

Michigan State University Federal Credit Union, East Lansing, Mich., employees helped raise over $28,000 for Sparrow Hospice, employees Greater Lansing Area charity of choice for 2011. MSU FCUs charity committee organized and participated in a vast array of Sparrow Hospice fundraising events for staff, including raffles, a bake sale, a golf outing, Lia Sophia sales, a clothing sale, candy grams, a Pistons and Detroit Tigers ticket raffle, and a car wash. The CU has seven CUES members.

Community Involvement, from CUES.org Member News

Tue, 27 Sep 2011 10:35:05 CDT

For the past eight years, San Mateo Credit Union, Redwood City, Calif., has collected backpacks and filled them with school supplies for local students. Thanks to the generous efforts of staff, management and credit union members, 102 backpacks were brought in this year, surpassing all totals for previous Back2School Backpack Drives. The CU has 10 CUES members.

Community Involvement, from CUES.org Member News

Tue, 27 Sep 2011 10:34:20 CDT

Gateway Metro Federal Credit Union, St. Louis, gained 70 new youth accounts in the month of August through efforts to grow the credit unions school branch program. Gateway Metro did this by attending registration days, parent nights, and other events at the five schools where the credit union has branches. The CU has one CUES member.

Community Involvement, from CUES.org Member News

Tue, 27 Sep 2011 10:33:34 CDT

Andrews Federal Credit Union, Suitland, Md., observed the 10th anniversary of 9-11 with commemorative activities at branch locations in the U.S. and overseas. In addition, donations were made to three military organizations: Warrior Transition Unit on Joint Base Andrews, the Warrior Transition Unit at Joint Base McGuire-Dix-Lakehurst, and the Warrior Zone at Wiesbaden Air Base in Germany. The CU has 10 CUES members.

Sponsorship, from CUES.org Member News

Tue, 27 Sep 2011 10:32:47 CDT

Sunova Credit Union, Selkirk, Manitoba, is sponsoring the Zamboni at the Garson Community Rink. The donation, totaling $10,000, provides the CU with branding rights to the Zamboni for a period of 10 years. The CU has two CUES members.

Honored, from CUES.org Member News

Tue, 27 Sep 2011 10:32:01 CDT

First Calgary Financial, Calgary, Alberta, has been recognized as one of Canadas Top Employers for Young People. First published in 2001, the Canada's Top Employers for Young People competition is organized by the editors of Canada's Top 100 Employers. This special designation recognizes the employers that offer the nation's best benefits for younger workers. The CU has one CUES member.

Loan Zone: Visa Program Profitability, from cumanagement.org Daily Deposits.

Tue, 27 Sep 2011 01:00:00 CDT

September 27, 2011 Credit Union Management magazines Web-only Loan Zone”; column runs the fourth Tuesday of each month. With margins continuing to shrink, many credit unions are re-evaluating every aspect of income-generating programs and trying to find ways to increase profitability. A little more than a year ago, around the time the CARD Act went into effect, we analyzed our credit card portfolio and considered our options. We felt there was great opportunity for growth at a time when many other financial institutions were selling off their portfolios or cutting off credit lines that werent profitable.”; We got busy and came up with a plan to make our Visa portfolio work for us. One result: We opened as many new Visa accounts in the past 12 months, as we previously would have opened in 25 months. We didnt spend any money on consulting or a big campaign, either. Here are some of the key strategies we used and how we made them work for us. Try them out! 1. Perform a competitive analysis. A competitive analysis of the market showed our rates not only to be competitive, but best in class against other cards being offered locally and, in some cases, nationally. We collected fee/rate schedules from prominent local financial institutions that we considered to be our competitors by going to their websites, and compared them to ours. We looked up recent articles about how other institutions were changing their strategies as a result of the new regulations. Compared to other credit unions, our lowest rate was close to or better than their offerings, and the fee structure was in line with others in the credit union movement. Compared to banks, we found that our product and pricing provided one of the highest value propositions for anyone in the credit card-seeking population. Because of the CARD Act, our business model (no hidden fees, no varying interest rates) had been brought center stage by the media and was given great value. 2. Look at concentration within your portfolio. Our research revealed that part of the problem was not the type of products or rates we had in place, but rather the composition of the portfolio. Our existing credit card portfolio was composed of 47 percent Platinum card accounts, 26 percent Gold and 27 percent Classic. To make the portfolio more profitable, we wanted to change the composition to achieve an increase in the overall yield (average weighted annual percentage rate). Thus, we set a goal: The portfolio distribution needed to be at 40 percent Classic, 40 percent Gold, and 20 percent Platinum. 3. Adjust your underwriting strategy. To achieve this desired distribution and increase the blended yield, we changed our underwriting strategy by shifting the credit score requirements for each card tier. We made the credit score range for Classic a bit broader, and shrunk the score requirements for the higher tiers. That way, it was harder to get the premium rates of Gold and Platinum. This change increased our overall yield on the Visa portfolio. This change in underwriting provided the basis for the portfolio to achieve a higher overall return. As odd as this may sound, we also aimed to lower our average credit line by opening credit limits around $2,500. During the process of analyzing the portfolio, we had looked at history of delinquency and charge-offs. A closer look revealed we had a tendency to approve high credit limits—many $10,000-$12,000 Platinum Visas simply because at the time the account was opened, the applicant was creditworthy. When the economy went south, these accounts were resulting in sizeable charge-offs. We decided the focus would now be to increase the portfolio by growing the quantity of accounts at smaller credit lines. This way, we would be reducing our exposure. 4. Its all about communication and follow-up. This should go without saying, but many times we forget the two most critical parts of a plan are communication and follow-up. Otherwise, its just a really good idea that sits on the shelf. We didnt run any campaigns, we didnt send out any fancy direct mail pieces. The goal was to make the cross-selling of our Visa a natural part of every encounter with a member. Since we already had an incentive plan in for our staff that included the cards, we just reminded them about it. Our staff get rewards cash incentives on a tiered basis for the number of Visa applications processed. The more applications, the more money they make for each one (e.g., five Visa applications = $50, 10 apps = $75, etc.) A minimum of five applications are required to get any incentive at all. Since staff have no control over whether a member gets approved, we focused rewarding for what they do have control over—getting the member to apply. In addition, we found processes already in place where we could effectively interject the cross-sell with ease and simplicity. We looked at times when memberscredit has to be pulled anyway, such as applying for an auto loan. We were going to work up the auto loan anyway, so we just add in a new Visa payment to see if theyd qualify. If they do, then all they have to do is say yes! My CEO, Bill Owens, always says, What gets measured gets done.”; He couldnt be more right about that. A monthly progress report is sent to our management team that includes number of new accounts and also re-evaluates the makeup of our portfolio, average credit line, and other information that shows where we are with respect to the goals we initially set. We ended up meeting all the goals we set. Were now Platinum 24 percent, Gold 37 percent, Classic 39 percent. Our average credit line is about $2,600 for all accounts we opened since we employed the new strategy, and about $4,800 overall for the entire portfolio. Were really proud of our accomplishment. I recommend analyzing your processes first—it can be more efficient (and less expensive) to find missed opportunities at the member-facing level; in our case this proved to be true. Just for the Visa portfolio, net yields increased by more than 200 basis points. Delinquency on our Visa credit cards is 1.36 (as of the June 2011 call report), and overall delinquency is 1.35. CUES member Nathalie Williams is Director of Marketing, Strategy & Project Administrator for $81 million PortAlliance Federal Credit Union, in Norfolk, Va.

Useful Queries, from cumanagement.org Daily Deposits.

Mon, 26 Sep 2011 01:00:00 CDT

September 26, 2011 This is web-only bonus coverage from Replacing Paper”; from the October 2011 issue of CUES Credit Union Management magazine. You dont have to understand the details of the algorithmic schemes behind digital signatures to launch a search for an esignature provider. Here are four useful questions to help guide your conversation with prospective vendors: What do we need to do to comply with the Electronic Signatures in Global and National Commerce Act? Actually, the ESIGN Act simply provides one means of complying with the literally A to Z of other federal regulations requiring specific disclosures and contract terms for loans, savings accounts and other financial services, notes Lori Peterson of Kirschler Peterson & Associates, a financial institution consultancy in Atlanta. ESIGN permits credit unions to deliver those agreements and notices electronically—as long as members agree up front to receive them that way. Members must opt in to receive edisclosures, and they must do so electronically, in part, to demonstrate that they have the means to do so. Any provider of electronic services should be very familiar with those requirements”; and with the process laid out in ESIGN, Peterson says. Can we tailor the esignature solution to the security requirements of the transaction?Some electronic documents containing confidential information and requiring members signature or initials to consent in several areas must be delivered and returned via extremely secure channels, but the process for the initial ESIGN disclosure can be very simple, Peterson says. Some people think its a lot more difficult than it is. A lot of ESIGN disclosures are very general—they just require customers to check a box,”; she notes. The law is very vague about these requirements, and it hasnt yet been challenged.”; How do we handle record retention? Esignatures may decrease the amount of paper generated by financial transactions—but not the number of records. Credit unions implementing esignatures must figure out how to store all the efiles they will be creating, and they should be able to rely on their vendor to help develop storage and retrieval processes. How long have you been in this business? Who are your other clients, and how familiar are you with esignature applications in the financial services realm? As with the three previous questions, this should mark the start of a long conversation as your credit union explores its paperless future. Karen Bankston is a freelance writer based in Stoughton, Wis.

FFIEC Authentication Security Checklist, from cumanagement.org Daily Deposits.

Fri, 23 Sep 2011 01:00:00 CDT

September 23, 2011In June 2011, the Federal Financial Institutions Examination Council published its Supplement to Authentication in an Internet Banking Environment.”; This supplement represents the long-awaited update to the organizations authentication guidelines, first published in 2005. Written for financial services organizations that offer Internet-based products and services to their customers, these authentication guidelines represent a critical framework for promoting security in e-banking. The supplement underscores the need for financial institutions to perform risk assessment and implement strategies for addressing the risks identified. In addition, it stresses the need to raise customer awareness of the potential risks in e-banking. In January 2012, FFIEC examiners will be formally assessing financial institutions adherence to these new guidelines. The following checklist outlines some of the fundamental requirements of the new supplement, and offers key questions that security teams should consider as they set out to address these guidelines—and most effectively strengthen their organizations security posture. Risk Level Goal: To address transaction threat models by effectively aligning the authentication strategy with the needs of banking customers and the level of risk associated with customers transactions. Are there mechanisms in place that effectively guard against man-in-the-browser and man-in-the middle attacks, as well as advanced persistent threats? Do the authentication perimeters in place accommodate increased online transactions and services, while ensuring optimal protection? Do the authentication measures in place appropriately map to the use case and risk level, so they dont have a negative impact on the user experience? Are the cryptographic keys at the heart of the e-banking application adequately protected against theft or manipulation? Assessment Goal: To ensure systems and policies are in place that enable frequent auditing and monitoring of the e-banking environment. Are audits being conducted on a consistent basis, multiple times a year? Is a management system in place to validate the authentication of users trying to conduct online transactions? Is there a centralized system for administering the complex, heterogeneous e-banking environment that will accommodate frequent and expedited system assessments? Are policies in place to control who is allowed administrative and operational access to authentication systems, as well as to enforce policies surrounding transaction frequency and time-of-day restrictions? Layered Security Goal: To build an e-banking infrastructure that protects not only the identity but also the transaction and that is adaptable to evolving business needs and threat models. Does the authentication verification mechanism map to the transaction being conducted and the associated risk level? Is there a secure system in place that protects the application itself, and that verifies the transaction and identities of users? Are multiple mechanisms in place to validate and safeguard the entire transaction, from transaction request through to transaction processing and data storage? Are the cryptographic keys used to validate the transaction being protected in hardware? Financial services institutions will be well served by leveraging the core concepts found in the FFIECs supplementary authentication guidelines for e-banking. Principles in the supplement, such as adopting a multi-layered security approach and aligning authentication methods with the level of risk, represent solid best practices that form the basis of a well-conceived security infrastructure. However, these principles need to be interpreted and implemented within the context of dynamic banking environments and evolving threat landscapes. Consequently, financial services institutions need to build agility and optimal security into their infrastructures, so they can go beyond current guidelines and ensure they are well-protected against emerging threats.Founded in 1983, SafeNet is a global leader in information security. SafeNet protects its customers most valuable assets, including identities, transactions, communications, data, and software licensing, throughout the data lifecycle. More than 25,000 customers across both commercial enterprises and government agencies and in over 100 countries trust their information security needs to SafeNet.

On Compliance: Is the FFIEC E-Banking Guidance Enough?, from cumanagement.org Daily Deposits.

Thu, 22 Sep 2011 01:00:00 CDT

September 22, 2011Credit Union Management magazines Web-only On Compliance”; column runs the fourth Thursday of each month.As attacks targeting online banking applications grow more sophisticated and more frequent, financial institutions need to strengthen their defenses. In response to these changing demands, the Federal Financial Institutions Examination Council released revised security guidelines for secure banking authentication on June 28. Given the frequency of breaches making headlines, its clear that, as consumers, none of us is immune. The risks grow for high-wealth consumers and corporate banking accounts, whose large resources and transaction volumes make them even more lucrative, and thus frequent targets for criminals. Given the increase in malware and high-profile breaches, it is worth assessing the FFIEC guidelines to ensure your credit union is covered.What the FFIEC guidance covers: In its Supplement to Authentication in an Internet Banking Environment,”;the FFIEC addresses two very important issues. First, the agencies have established that not all banking customers are created equal. Financial services customers are quite diverse in both profile and activity, which results in varying risk levels and threat vectors, and thus the FFIEC sets out its requirement for establishing different risk mitigation approaches and protection methods based on different customer activities and risk levels. Second, the FFIECs recent supplement addresses--in theory--the proper security strategy and scheme to combat advancing threats and fraud – a layered security approach. By approaching security in layers, financial organizations can align their protection so that if hackers manage to find vulnerabilities in one of the authentication methods, there can be, in most cases, other methods that serve to protect customers, even if one layer is breached.What the FFIEC guidance doesnt cover:While the FFIEC guidelines are an important step in the right direction, they still do not provide solid risk mitigation options for man-in-the-browser attacks. MitB attacks appeared on the radar of the banking industry in late 2009, almost two years ago, and this attack is still going strong today. To guard against MitB and man-in-the-middle attacks, businesses should deploy transaction security mechanisms for ensuring that users conducting transactions are, in fact, who they claim to be. As a first line of defense, strong, multi-factor authentication is a critical requirement for verifying users identities before they can access financial services portals. Once users have been authenticated, additional safeguards need to be employed before transactions are conducted. Even if the identity of a user is validated, the transaction that ultimately is executed may still be unauthorized or fraudulent.In addition, the updated FFIEC regulations speak more in concept and guiding principle, remaining on the surface of the real challenges faced by financial institutions today. This may create confusion for security officers looking for definitive answers. An example of this: The FFIEC guidance lacks detail around specific attack vectors. More detail is provided for attack vectors and mandated as part of the PCI-DSS Security Council requirements. While the new FFIEC document may help financial organizations get a good view of the forest,”; they need the view of the trees”; as well, if they are to effectively plan a security strategy in todays extremely complex and threat-heavy environment.Another area of concern that is not currently covered by the latest FFIEC guidelines is how to best address virtual environments. This is especially important to small and regional community banks that cater mainly to businesses, which tend to have high risk profiles and intense security requirements, compared to consumer clientele. These financial institutions often use service providers or a cloud-based approach for their e-banking services. With the wide deployment of cloud and virtualized infrastructures, including guidance similar to the recently released PCI-DSS 2.0 Virtualization Guidelines, would be valuable to financial services organizations as well. Best Practices PlusFinancial services organizations will be well-served by leveraging the core concepts found in the FFIECs supplementary authentication guidelines. Principles covered in the supplement, such as adopting a multi-layered security approach and aligning authentication methods with the level of risk, represent solid best practices that form the basis of a well-conceived security strategy. However, these principles need to be interpreted and implemented within the context of dynamic banking environments and evolving threat landscapes. Consequently, financial services institutions should look to build agility and optimal security strategies and schemes, so they can go beyond guidelines to ensure that they are well-protected against emerging threats and future business and user demands.Andrew Young is VP/product management at SafeNet. He is responsible for setting the strategic direction of SafeNets commercial and government-related authentication products.

Insurance Matters: Renewal Tactics, from cumanagement.org Daily Deposits.

Wed, 21 Sep 2011 01:00:00 CDT

September 21, 2011Credit Union Management magazines Web-only Insurance Matters”; column runs the third Wednesday of each month.I've started calling insurance policy renewals the "annual insurance affliction." Those directors and officers applications are horrible, and the bond applications are not much better. Here are some strategies to make things a bit more simple: Start early. Plan to get applications to your agent 60 days before the policies expire. That means you should have the applications in your hands at least 90 days before expiration.Get help. As soon as you get the applications, figure out who has what information. Delegate sections of the applications to the right people in your credit union. The sooner you get the questions to the various departments, the sooner you will get them back.Have past applications handy. Most insurers use the same application year after year. Having last renewal's applications in front of you will make this year's easier.Give the underwriter too much information. The more information you can give the underwriters, the better. Copies (hard copy or digital) of annual reports, press releases, employee newsletters, employment handbooks, safety policies, and inspection reports all help your case in showing your underwriter that you are an exceptionally good risk. If you have had claims or issues in the past, be sure to tell the underwriter why things are better now.Get quotes from multiple insurance companies. The current insurance marketplace remains amazingly competitive. This is the time to get quotes from several insurers. The more competitors fighting over you, the better.Insist that all insurers bid from the same applications. Each insurance company will have its own application form. All should be able to quote from your current insurer's applications. They may ask for some additional information. Fine. When you decide which insurer you will be placing your coverage with, you will have to complete their application. That's expected.Give your agent a firm target date. When you give your agent your completed applications, provide a due date for proposals.Think multi-year. The word on the street is that insurers are not issuing multi-year insurance policies. This is not true. Credit unions with solid financials and good loss experience are being fought over. The fight includes an offer of multi-year policies. Push your agent to fight for you. Lock your rates in for two or three years. Some insurers offer discounts for three-year policies.Know what you want. There are some coverage issues you know are important when walking into your renewal. Perhaps you want to consider higher limits of coverage or a deductible option. Tell your agent what you will want to see in the renewal quotes. Ask that your renewal include coverage alternatives and additional protection. What coverage do you offer that we are not now buying?”; is a leading question that may give you broader policies.How can we improve this coverage?”; is another good question to ask your agent.Note: The playback of my recent CUES Webinar on directors and officers insurance is free to CUES members. Log in at cues.org, then click here.Scott Simmonds is the unbiased insurance guy, consulting on, but never selling, insurance. He welcomes questions from readers, and will attempt to answer as many as possible in future columns. E-mail him for a copy of his white paper, Questions Credit Unions Should Ask About Their Insurance.”;

Community Involvement, from CUES.org Member News

Tue, 20 Sep 2011 07:04:54 CDT

Genisys Credit Union, Pontiac, Mich., was a presenting sponsor of Aids Walk Detroit on Sept. 18, a fundraising event that raises money to fund grants made to local metro Detroit HIV/AIDS agencies. The CU has one CUES member.

Community Involvement, from CUES.org Member News

Tue, 20 Sep 2011 07:04:14 CDT

NEFCU, Westbury, N.Y., has raised more than $10,000 for the Muscular Dystrophy Associations one-week summer camp program, which offers children with muscular dystrophy and related diseases a chance to experience the joys of summer camp. In May, all visitors to NEFCU branches were asked to make a donation of $1-$5. Donors were recognized in the branches by the hanging of personalized cut-outs on the wall. The check for $10,000 was presented to MDA during its nationally televised MDA Labor Day Telethon. This is the seventh year NEFCU has supported MDA in this way with a goal of sending 12 children to camp each summer. To date, NEFCU has raised more than $82,000 for the cause. The CU has six CUES members.

Community Involvement, from CUES.org Member News

Tue, 20 Sep 2011 07:03:13 CDT

Sperry Associates Federal Credit Union, Garden City Park, N.Y., announced the launch of Operation: Helping Heroes, a long-term initiative to provide support and awareness on issues facing 9/11 first responders. The CU lost five members on 9/11 and, in their honor, will pledge $2,500 to the FealGood Foundation, a non-profit established for 9/11 first responders. FealGood provides financial assistance to those who volunteered or worked at Ground Zero in the aftermath of 9/11; funds can be used to pay for food, healthcare, rent/mortgage and utilities bills. The charity also offers educational support and grassroots activism. The CU has six CUES members.

Community Involvement, from CUES.org Member News

Tue, 20 Sep 2011 07:02:13 CDT

Jeanne DArc Credit Union, Lowell, Mass., is pleased to announce that the second winner of the Give a Click”; campaign located on its website – WeShareACommonThread.org – is the Food Pantry at St. Patricks Parish in Pelham, N.H., a nonprofit dedicated to providing food and household supplies for residents in need of assistance. On the special site, community members can read about three worthy nonprofit organizations and then vote. The charity with the most votes receives a $1,500 donation from the CU. Different charities are posted every quarter. The CU has six CUES members.

Community Involvement, from CUES.org Member News

Tue, 20 Sep 2011 07:01:24 CDT

Belco Community Credit Union, Harrisburg, Pa., announced it will be offering a special Hardship Loan at a reduced rate for those affected by the recent flooding in central Pennsylvania. Flood victims will pay just 4.99 percent APR on a personal, unsecured loan for up to 60 months and a maximum loan amount of $5,000. This loan is designed to cover the costs of structural home repairs to restore basic livability, or replacement of major appliances, such as heating/cooling source, hot water heater, washer/dryer, refrigerator or freezer. The CU has one CUES member.

Honored, from CUES.org Member News

Tue, 20 Sep 2011 07:00:32 CDT

The Salem-Keizer School District honored Maps Credit Union, Salem, Ore., as Business Partner of the Month. The award recognizes the credit union for its long-standing support of the district, in particular the recently announced donation of $50,000. The district has chosen to use the funds, which represent the largest donation the district has ever received, to support athletics. The CU has two CUES members.

New Position, from CUES.org Member News

Tue, 20 Sep 2011 06:59:37 CDT

David A. Snodgrass, CCE, will be the new president/CEO of Lake Trust Credit Union, Lansing, Mich. He succeeds Stephan L. Winninger, CEO, and William Thiess, president, who coordinated their retirement dates with the finalization of the merger between NuUnion and Detroit Edison credit unions. Previously Snodgrass served as EVP/chief strategy officer at Affinity Federal Credit Union, Basking Ridge, N.J.

New Position, from CUES.org Member News

Tue, 20 Sep 2011 06:58:43 CDT

UNCLE Credit Union, Livermore, Calif., named Harold Roundtree, CCE, as the organizations new president/CEO effective Sept. 6. He most recently served as SVP/retail banking division at Technology Credit Union, San Jose, Calif.

Facility Solutions: The Financial Spa, from cumanagement.org Daily Deposits.

Tue, 20 Sep 2011 00:30:00 CDT

September 20, 2011 Credit Union Management magazines Web-only Facility Solutions”; column runs the third Tuesday of each month. In 2005 North Shore Credit Union had $750 million in assets under management. Five years later the institution topped $2.2 billion. During this time North Shore CU added just one branch and a few additional members. How did the CU accomplish this growth in so short a time, and without a merger. To tell the story, lets go back to the beginning. In 2005 North Shore CU decided it wanted to generate substantial growth on the North Shore of Vancouver, a geographic area defined by high mountains, water, the highest average income in all of Canada and strong competition from other financial institutions. Growing market share alone would be difficult due to market maturity and saturation of banks and credit unions. Additionally, the high concentration of high income households was not considered a favorable market characteristic for credit unions. North Shore CU had a number of well-positioned branches and did not feel that growth by adding more branches would be efficient. After a deep study of market needs and opportunities, North Shore CU determined it could capture the upscale market, a segment where very few other credit unions had found success. The strategy would be to focus on the aspiring affluent”; and affluent”; market segments and grow by increasing share of wallet. These terms describe a target market segment that goes beyond just a calculation of a member's or market household's wealth and other factors - including their attraction to the idea and experience of a premium financial institution boutique, that specializes in catering to those with growing need for robust financial planning and sophisticated (expert) advice as their financial situation evolves over time. To win these market segments, North Shore CU needed to build a powerful value proposition that would be delivered through a branded client and staff experience. In 2005 North Shore CU undertook the creation of this new brand experience in its market. The CUs team of key internal stakeholders committed to dedicating substantial time and energy to developing and delivering a unique branded branch experience. This experience needed to wow”; the target market, cause members and potential members to move their accounts from other institutions, and increase their participation in terms of the number of accounts and high balances. The branch experience needed to evolve the organizational culture to ensure staff members were taking the right actions to support the value proposition. Also, it had to ultimately influence all delivery channels to ensure a consistent and seamless experience for clients, staff, and each community. The brand experience delivered in the branch needed to be presented equally well through all delivery channels; call center, online and via mobile. The branching team engaged the services of a consulting team composed of marketing and branch branding specialists. Together, CU leaders and consultants analyzed market characteristics, competitor positioning, product and service needs, delivery channels, and target segment lifestyle preferences. Through this analysis, deep self-examination, and a clear vision for the future, the team created alignment between business aspirations and the brand experience that would get them to their goal: domination of the target market on the shore. In name, this goal was the financial spa.”; A number of branded branch elements help to delivery the desired target client experience. Following are a few: Ritz-Carlton greeting by highly knowledgeable and engaging staff. A large rock at the entry that projects from the outside, through the glass into the lobby as a recognized reference to nature, strength and the rock cliffs that define the east side of the North Shore. Natural floor, wall and ceiling materials that reflect a calming spa experience. A water element to express its importance in the environment surrounding Vancouver BC, Feng Shui positioned. Local fine art objects for sale to connect with target client interests. A celebrated Vault location to express soundness and security. A three dimensional discovery wall to engage clients in learning about the credit unions commitment to the wellbeing of their financial life, surrounding environment and communities. The executive management team realized that to be successful, the brand experience must be championed from the top. CUES member Chris Catliff, president/CEO, and other top executives agreed to be closely involved and lead the evolution. This is one of the commitments critical to the success of all brand evolution programs. The first concept was rolled out to the Park Royal Branch. This branch held $90 million in assets under management, but growth had been stagnating for a number of years. The branch was relocated within a large shopping center and the new ‘financial spa concept was applied. The result? Growth. Today, this branch has over $290 million in assets under management and continues to grow. Over the next five years this brand experience was applied to all the existing branches and one new facility with the same results: exceptional growth. This growth continues to be driven by a number of factors: a unique and visceral brand experience that connects with the target market, consistent branch branding and design, staff who deliver a Ritz Carlton”; level of service, a robust set of evolving remote delivery technologies, and a dedicated branding team guided at the highest levels of management. For the past five years, North Shore CU Chief Information Officer Fred Cook has led the branch branding and design team. Cook has the unique ability to grasp the necessary brand interplay among all delivery channels, while leading a multi-disciplined group toward constantly improving facilities and performance, or kaizen”; (Japanese for improvement”;) as he puts it. Our brand is in constant evolution, as are our clients needs and the world we live in,”; Cook says. We have a proven and powerful brand and performance metrics that must constantly improve for us to continue our success into the future.”; Below, he shares some of what he has learned. How did developing and rolling out a strong brand expression and experience impact the credit union? It reinforced the change in culture and execution of the new corporate service strategy that has allowed North Shore CU to move up the customer segment scale. It allowed us to buck the credit union mindset that we cannot win the battle for higher net worth households. It changed the perception of upscale households about the ability of a credit union to exceed their financial service expectations and help them achieve sophisticated financial goals. The substantial increase in average share of wallet has enhanced profitability. The financial spa concept is in constant evolution, which brings energy and life to the everyday delivery of service. In fact, the financial space is now called the i-BRANCH, as it reflects the growing intimate nature of our client relationships. We now have a gap in how the self-service channels reflect our value proposition vs. the intimate, engineered service experience delivered through the i-BRANCH Financial Spa. Technology must catch up with the brand.”; Is the new branch interior more expensive than before? Yes, but our old branch design was not utilized as a branding tool. The cost is more, but when you factor in the exceptional performance of our branches and return, it is very reasonable. Many of the brand elements do not cost more than other materials. It is about the right selection and application of an integrated brand image solution, rather than just spending more money. Our branches pencil out very well. It is well worth the cost, as a branded client experience differentiator in what could be considered a commodity industry. In most bank branches, when a potential customer walks in, the staff has to approach and ask this person how they can help them. In our i-BRANCH Financial Spa concept the people walking in for the first time recognize a totally unique banking experience and ask our staff, ‘How can you help me? This is a huge shift. The branch environment creates an immediate connection to their lifestyle and interests, causing them to take action.”; As you expand into new markets, will the brand expression need to change? We are moving into new markets off the shore. The brand expression will remain true to the Financial Spa experience; however we have and do pick up the community flavor in subtle expressions, but never do they dominate the brand.”; What are the most important factors in developing and operating a powerful branded branch experience? Connecting the key disciplines that have to come together; retail banking, individual business units, marketing, human resources, finance, IT, facilities and other key stakeholders. Work with a metric design to have the branch experience reflect the financial institutions value proposition. This is North Shore CUs approach to how we interweave the supporting disciplines of people, training, business processes, technology and architecture to reflect our value proposition and support our intimate engineered and staged experience. Think of the branch design experience as a business tool, the same as a banking system, CRM system, etc. It must contribute to and assist the staff in doing their jobs. Pay close attention to the details in every facet of brand application. Measure performance. Constantly improve the brand expression while staying true to the brand value proposition.”; Today, North Shore CU continues to grow share of wallet in existing markets and is locating branches in new markets with a variety of demographic characteristics. Based on past success, each new branded experience will align with the values and interests of each new target market–a strong and well managed brand delivering exceptional performance. Paul Seibert, CMC, is VP/financial design of CUES Supplier member EHS-Design, Seattle.

Not the End of the Road, from cumanagement.org Daily Deposits.

Mon, 19 Sep 2011 01:00:00 CDT

September 19, 2011This is bonus from Deepen the Volunteer Pool”; in the October issue of Credit Union Management magazine.Having a strong board is not just a story of good recruitment, says CUES member Teresa Y. Freeborn, president/CEO of $750 million, 60,000 member Xceed Financial Credit Union in El Segundo, Calif. Ongoing evaluation is also a critical part of the process.At Xceed Financial CU, each board and volunteer committee member is assessed annually by the committee chair. To facilitate the process, the CU uses a rating form for attendance, credit union knowledge, committee participation, interpersonal skills, and commitment. There is also a review of conference attendance and volunteer education requirements fulfilled during the year. The information then goes to the nominating committee for review and appropriate action.In addition, a self-assessment is submitted to the nominating committee. It covers committee participation and contribution, fulfillment of training requirements, and attendance at conferences and strategic planning, committee and board meetings. Annually, Xceed Financial CUs nominating committee: establishes the volunteer assessment and nomination schedule; reviews and revises, as appropriate, assigned policies, the volunteer profile, and volunteer assessment forms; and performs its volunteer evaluations by reviewing assessment forms and obtaining input from the board chair concerning board-management relationships. The process can have a profound effect on new volunteers,”; Freeborn says. A self assessment can make a new volunteer conclude they could do more to contribute to the success of the credit union or, conversely, they dont have the opportunity at this time to give what they should in terms of effective volunteer service.Furthermore, our board also conducts peer evaluations, whereby each of the board members evaluates each other on board effectiveness and interpersonal relationships,”; Freeborn adds.Ron Polaniecki, CAE, is a freelance writer based in Chicago.You may also be interested in The Board Building Cycle, which has a chapter on evaluation.

NextGen Leaders: Matt Monge, from cumanagement.org Daily Deposits.

Fri, 16 Sep 2011 01:00:00 CDT

September 16, 2011CUES 2011 Next Top Credit Union Exec challenge entrants all had inspiring, unique and innovative projects. Public voting narrowed the field to six finalists. Learn more about them here. The finalists will present their final presentations—and the Next Top Credit Union Exec will be selected—at CUES CEO/Executive Team Network, Nov. 6-9 in Las Vegas. But for the next several weeks, we will be checking in with one of the non finalists to see how their project is going and learn a bit more about these next generation leaders. Matt MongeVP/People and DevelopmentFort Campbell Federal Credit UnionClarksville, Tenn. Follow Matt on Twitter: @mattmongeWatch Matts Next Top Credit Union Exec video Give us the elevator speech about your project (as in how would you describe your project to someone you meet in an elevator?): Our credit union is in the midst of a culture shift, plain and simple. We're writing the next chapter in our organization's story, and it's one we hope is defined by our cultural values. Those values will inform our organization's direction going forward. In the meantime, we're working through how to have those values permeate everything we do. What is your long-term career goal? I want to continue to find ways to do work that not only matters to my organization and the credit union world, but also is deeply meaningful to me personally. For me, that means doing work around organizational culture, leadership, employee engagement and development. Further, I want to continue to work toward helping other credit unions outside my own with those same things, which is why I started the Mojo Company on the side. Those are the things I'm passionate about, and I'm looking forward to where my journey leads.Fill in the dots: The future of credit unions will be bright if ...The future of credit unions will be bright if we are almost fanatically intentional about building healthy organizational cultures within our respective credit unions. I say this because I feel strongly that a credit union with a healthy culture is going to reap benefits far beyond simply having happy and fulfilled employees. Healthy culture is a distinct competitive advantage. Engaged employees work harder, invest more, innovate and adapt, seek out development, and find ways to propel their organization and industry forward. Within a healthy culture, that sort of thing becomes the norm; without one, it's the exception.What my generation brings to the credit union movement is …Our generation brings energy, passion and ideas. We don't know everything - not even close. But we're eager to learn. That's why one of the more exciting things about the credit union movement is seeing more seasoned leaders reaching out to younger leaders and investing in us. They provide the balance and context that is so necessary for us to grow. We need that. We need leaders who are a little further along in their journey to come alongside us and help us navigate our own journeys. People consider me a leader because … I suppose I can only speculate on this, but I'd like to think it's because they see clearly that there are certain things I believe, am passionate about, and act upon. I work very hard to align my work –- whether its with my own credit union or other credit unions and groups -– with my beliefs and passion. Its on that foundation that I think Im able to be creative, collaborative and intentional about my work. Really, I want to make a dent in the universe, and while I think people can sense that, I also try very hard to make sure Im constantly motivating myself and others to be pushing, creating, doing, changing, and becoming better versions of who we are as individuals and organizations.Who is your hero and why?Can I have two? Jack Bauer because ... well ... Chuck Norris wears Jack Bauer pajamas. And Michael Scott because he and I share equal amounts of weirdness. In all seriousness, there are oodles of people I admire for a variety of reasons. I feel like Id be slighting some by recognizing just one. But my wife is certainly in that group; she walked me through cancer, surgery and recovery. Shes the most courageous person I know. Who is a must-follow on Twitter?Similar to my answer to the previous question, its difficult for me to pick just one. Among my favorites are @jrwlay (James Robert Lay), @jmarkarnold (Mark Arnold), @cookeoncus (the Credit Union Times feed), @coopthink , and @talentculture.

Supplier Member News, from CUES.org Member News

Thu, 15 Sep 2011 15:19:32 CDT

Fredda McDonald has been appointed EVP/credit union experience at PSCU Financial Services, St. Petersburg, Fla. She will manage all the departments that impact the credit union experience--from sales to account management and product implementation to risk operations, contact center support and AdvisorsPlus consulting. She spent the past 10 years focused on the payments industry and most recently led the sales and account management group of MasterCards Strategic Partnership Team.

Community Involvement, from CUES.org Member News

Thu, 15 Sep 2011 15:18:31 CDT

State Rep. Jim Stamas of Midland, Mich., recently partnered with Dow Chemical Employees Credit Unions management team and Green Team to clean up roadside trash and debris in the neighborhood surrounding the CU and near US-10. The team of 13 people collected 12 commercial-sized bags of litter. The CU has two CUES members.

Retirement, from CUES.org Member News

Thu, 15 Sep 2011 15:17:15 CDT

Shelley Clarke, president/CEO of Goldenwest Credit Union and a CUES director, will retire at the end of 2011. Executive Vice President Kerry Wahlen will succeed her.

Honored, from CUES.org Member News

Thu, 15 Sep 2011 15:15:14 CDT

San Diego County Credit Union has been named San Diegos Best Credit Union for the 12th consecutive year by readers of the San Diego Union-Tribune. The CU was also selected in the recent 2011 Readers Poll as San Diegos BEST Financial Planner, Home Loan Provider and Place To Work – all for the second year in a row. The CU has two CUES members.

Name Change, from CUES.org Member News

Thu, 15 Sep 2011 15:14:29 CDT

Tenet Federal Credit Union announced that it has changed its name to CarePoint Federal Credit Union, Anaheim, Calif. The CU has undergone a transformation of its name, logo and website to seek membership growth in the healthcare industry. Although CarePoint FCU serves a nationwide network of employees for Tenet Healthcare and other national healthcare companies, it also allows for the addition of healthcare-related small employee groups. The CU has two CUES members.

Anniversary, from CUES.org Member News

Thu, 15 Sep 2011 15:13:39 CDT

John D. Unangst, president/CEO of Franklin Mint Federal Credit Union, Broomall, Pa., is celebrating 35 years of service. He began working for the CU in August 1976 when the CU had one branch at The Franklin Mint, $1 million in assets, 1,000 members and two employees.

Community Involvement, from CUES.org Member News

Thu, 15 Sep 2011 15:01:07 CDT

Consumers Credit Union, Kalamazoo, Mich., has teamed up with Kalamazoo Neighborhood Housing Services, Inc., to provide two financial seminars (one about credit scores and one about budgeting) that are free to the public on Sept. 19. The CU has six CUES members.

Community Involvement, from CUES.org Member News

Thu, 15 Sep 2011 15:00:21 CDT

San Francisco Federal Credit Union participated in the 25th Annual AIDS Walk San Francisco, with 18 staff and friends walking 10 kilometers through Golden Gate Park and raising more than $2,100. The CU has nine CUES members.

Community Involvement, from CUES.org Member News

Thu, 15 Sep 2011 14:59:34 CDT

Maps Credit Union, Salem, Ore., is donating $50,000 to the Salem-Keizer School District this fall. The district has chosen to use the funds to support athletics. This is the largest donation the district has ever received. The CU has two CUES members.

Community Involvement, from CUES.org Member News

Thu, 15 Sep 2011 14:58:40 CDT

Andrews Federal Credit Union, Suitland, Md., is serving as a major sponsor for the 2011 New Jersey Run for the Fallen”; being held Sept. 23-25. During the event, a team of active-duty and reserve service members from Joint Base McGuire-Dix-Lakehurst will run 152 miles to honor fallen New Jersey service members. The runners will mark each mile with an American flag and a personal biographical card to memorialize New Jersey soldiers, airmen, sailors, and marines killed in Operations Iraqi Freedom and Enduring Freedom. The CU has three CUES members.

Community Involvement, from CUES.org Member News

Thu, 15 Sep 2011 14:57:51 CDT

Chartway Federal Credit Union, Virginia Beach, Va., was ready to support its members and communities from Florida to Maine, affected by Hurricane Irene by extending loan leniency. The CU has eight CUES members.

Honored, from CUES.org Member News

Thu, 15 Sep 2011 14:56:56 CDT

E&A Credit Union, Port Huron, Mich., was recognized as one of the 50 Most Engaged Workplaces™ in the United States by Love Rewards, an employee recognition solution. This annual award recognizes top employers that display leadership and innovation in engaging their employees. The CU has 19 CUES members.

Event, from CUES.org Member News

Thu, 15 Sep 2011 14:54:50 CDT

Nassau Educators Federal Credit Union, Westbury, N.Y., has received the Business Achievement Award in the Innovation Category”; from the Hauppauge Industrial Association–Long Island. A panel of judges chose the CU from a large group of Long Island businesses for the CUs industry leadership, positive employee relations and the work it has done in the Suffolk County community since expanding to a community charter. The CU has six CUES members.

Honored, from CUES.org Member News

Thu, 15 Sep 2011 14:53:56 CDT

Darin B. Moody, president/CEO of Utah First Federal Credit Union, Salt Lake City, has been named to the Federal Reserve Bank of San Francisco's Twelfth District Community Depository Institutions Advisory Council. He will serve a three-year term.

Merger, from CUES.org Member News

Thu, 15 Sep 2011 14:52:46 CDT

NCUA has approved the merger of Southwest Corporate (Bridge) Federal Credit Union, Plano, Texas, with Georgia Corporate Federal Credit Union. The new name will be Catalyst Corporate Federal Credit Union. Southwest Corporate FCU has one CUES member.

Name Change, from CUES.org Member News

Thu, 15 Sep 2011 14:51:45 CDT

John Bratsakis, senior vice president of $1.5 billion Baxter Credit Union, Vernon Hills, Ill., has been hired as president/CEO of the Maryland and District of Columbia Credit Union Association.

Inside Marketing: Harness the Lead, from cumanagement.org Daily Deposits.

Thu, 15 Sep 2011 01:00:00 CDT

September 15, 2011 Credit Union Managements Web-only Inside Marketing”; column runs the third Thursday of every month. Were stepping back to Journalism 101 here, talking about hooking your reader – or in this case your member – when producing any type of communications piece. Whether it's a press release, feature article, broadcast news, advertisement, direct mailer or blog, a writer has to create an opening to gain the attention of his or her audience right away. We call this a hook or lead. Without an enticing and engaging beginning, you could lose the crowd within seconds--and all the work following that losing lead goes down the drain. For credit unions this can mean the difference in gaining or losing a potential member or having a current member sign up or not sign up for a new product or service. Simply regurgitating the facts about your credit union (membership, assets, locations, drive-thru, etc.) isnt going to cut it--especially these days with so much information deluging consumers like a torrential downpour. Your stuff has to stand out, and the best way to do that is to hook them with a clever lead or headline. Its so important. Youll see many great examples of catchy content, with accompanying images, in the 2011 CUES Golden Mirror Awards winning entries that were just announced. But for the sake of this article, were talking just the copy, the content, the words. To help out, listed below are different types of leads to help you kick off your story properly: Straight news lead--quickly delivers information quickly and concisely to the reader without dressing it up. Just the facts ma'am.”; Summary lead--one in which there may be more than one major fact to be covered. Outlines the full story for the reader in a brief paragraph. Blind lead--very common in stories where the subject is not well known. Direct address lead--occurs when the writer speaks directly to the reader. The main characteristic in these leads is the word "you" present or implied. Used a lot in advertising copy. Question lead--attempts to draw the reader into the story by simply asking a question. Very popular and easy to do. Another lead used a lot in advertising copy. Direct quote lead--quote used in the first sentence. Very rarely used, only if quote is truly memorable. Listed below are a few example leads. Some are relevant; some arent. But I find if I read a few quality, catchy leads, they tend to spark other innovative ideas, and everything flows from there. Check them out: Only once in your life do you double in age on your birthday, so lets celebrate!”; (an actual birthday invitation for a 2-year-old) Little did we know that theres a lot of San Diego on Mars. No were not talking about sun-drenched beaches, traffic jams, and tasty taco stands; were talking technology.”; (story about the Mars Rover) From two days to two minutes was the ‘before and after experience one credit union had after implementing its new document imaging, archival and retrieval system.”; If youre a large enterprise company with more than $100 million in annual revenue, chances are your phone bill may be wrong.”; (story on a tech company that helps large companies manage their telecom services) Build your next branch ... at the end of your member's driveway.”; (credit union ad for remote deposit services) Not many people want to be stuck in the 90s these days – especially when it comes to technology.”; (credit union press release lead on implementing new online services for its members) There are literally thousands of great examples of quality leads out there that can gain immediate attention – and credit unions are no stranger to leading the pack in the creativity department. So the talent and skill are there; its a matter of execution and courage. Just remember the next time you're trying to get your audience's attention among the tons of data and information that's hitting them everyday like a fire hose on full blast, take the extra step and do something that stands out. A good lead is a great start. What have you done creatively lately thats successfully stood out from the noise? Tell me in the comments, below. Mike Lawson, principal of the PR/marketing firm DML Communications, has two decades of journalism, public relations and marketing experience. His unique and robust knowledge allows him to meet the varied needs of editors, end-users and clients. Lawson's expertise enables him to enhance his clients' market exposure through media relations, social media tools, advertising efforts, target marketing strategies and more. He also speaks on PR, marketing and media issues to audiences nationwide. For more info, visit www.dmlcommunications.com.

NextGen Know-How: Are You a Servant Leader?, from cumanagement.org Daily Deposits.

Wed, 14 Sep 2011 01:00:00 CDT

September 14, 2011Credit Union Managements online-only NextGen Know-How”; column runs the second Wednesday of the month.Most managers are not leaders. Earlier in my career, I worked for a boss whose style of management was to bark orders and scold employees for the slightest mistake. People were so intimidated by him, that they never risked telling him the truth—that it sucked to work for him. Needless to say, I moved on to find an organization and a boss who valued not only my talents, but the fact that I was a human being who should be treated with respect and dignity.The sad thing is that most ineffective leaders”; are not even aware of their flaws. They go about their day thinking their style is effective and persuasive. And no one dare tell them otherwise, for fear of some kind of backlash. Effective leaders focus on their people every day. They understand that their job is to lead people, not manage processes. One of the biggest challenges I see with new (and sometimes not so new) leaders is the inability to let go of the daily tasks and delegate and develop their employees. These leaders place too much value on their technical skills, thinking these skills make them indispensable. The truth is a bosss job is to lead people, not perform technical tasks. If you continue to focus on the technical, it is a sure way to kill your leadership career. Yet I see this challenge at all levels of organizations—from managers to the CEO.Effective and successful leaders are servant leaders. They understand their most important asset is their people. They put their people first, even before their members because they know that by putting employees first, their members will be taken care of. Servant leaders have a mindset of doing for their employees—whether its listening, removing obstacles, trusting them or developing them. Their daily focus is around their people, and they dont let anything else get in the way.Below are five strategies for being a servant leader:Redefine your focus. Take a hard look at how you currently spend your day. If you are spending most of your time putting out fires or in the trenches, you are not leading. This is not to say that at times you dont need to roll up your sleeves. But your overall focus should be on leading and developing your employees. Shift your focus to your employees and how you can assist them. Trust employees. If you dont trust your employees, you will never be an effective leader. You may get by for a while, but eventually you will either lose your staff or your boss will see you arent effective. People are human. They may make mistakes, but that is part of the process. Teach them, mentor them, develop them, and you will reap the rewards of developing confident, effective employees who can take on more responsibility (and more off your plate!).Communicate. Be open and honest with employees about what is going on in the credit union. My experience is that most leaders think they are doing a better job of this than they really are. Find avenues to communicate the vision and goals. Some examples: town hall meetings, breakfast with the CEO, visit your remote locations, or start a newsletter, blog or video series. Make sure you have multiple ways of communicating. Sam Walton, founder of Wal-Mart, spent 80 percent of his time visiting his stores. Most leaders would say, I dont have time for that.”; You dont have time not to.Develop employees. Most of your time as a leader should be spent developing and coaching your employees. This requires getting out of your office and meeting with your people regularly. You are in your role to serve them. Most employees would be star performers if their leaders took the time to develop and coach them. Develop yourself. Just because youve made it to the top doesnt mean you dont need personal development. In fact, this is when I find leaders need it most. Leaders have competing demands and a lot of responsibility. Leading effectively is crucial to you and your organization. Make sure you are brushing up on your leadership skills and seeking out ways to learn and grow.If you shift your focus to serving your employees each day, you will reap the rewards and become an effective, successful leader. And your employees will respect and love you, which is priceless! Laurie J. Maddalena, MBA, CPCC, PHR, is a certified executive coach, consultant and founder of Envision Excellence, LLC, Rockville, Md. She was also an HR executive at a $450 million credit union. Contact her at 240.605.7940 or lmaddalena@envisionexcellence.net.

LSCU and CUES Partner to Bring Expanded Educational Offerings to Credit Unions, from CUES.org Press Releases.

Wed, 14 Sep 2011 00:00:00 CDT

Birmingham, AL/Tallahassee, FL – September 14, 2011 – The League of Southeastern Credit Unions (LSCU) and the Credit Union Executives Society (CUES) have entered into a partnership designed to enhance education and training for Alabama and Florida credit unions. The partnership will provide credit union CEOs, executives and directors more robust LSCU educational offerings as well as new jointly branded and executed events.

Teaching Smart Money Management: Party Your Way to Financial Fitness, from cumanagement.org Daily Deposits.

Tue, 13 Sep 2011 01:00:00 CDT

September 13, 2011Credit Union Managements online-only Teaching Smart Money Management”; column runs the second Tuesday of the month.Have you ever taken a Zumba class?Whether youve tried it or not, youve probably heard the motto, ‘Ditch the workout; join the party. Rather than repetitive motions on the floor or never-ending running on a treadmill, Zumba is actually fun—its like going to a party and dancing for an hour. If doing something healthy can be that exciting, can financial literacy be enjoyable too?For Maureen Wilkinson, vice president and director of HarborOne U, the answer is a very loud Yes!”;Trying to get adults to come to financial education programs is like pulling teeth!”; she says. But her credit union has found a way around that. And yes, it includes Zumba. Four years ago, $1.8 billion/154,000-member HarborOne Credit Union, Brockton, Mass., launched a multicultural banking center with a focus on financial education and other classes for immigrants. The center offered English as a Second Language, citizenship preparation and more. After winning awards for the center, the credit unions CEO had an idea. Why not offer pertinent classes to everyone else? And so, HarborOne U was born. More than a location for financial literacy, HarborOne U has truly become a community center. Classes include Organizing 101, Basic Bookkeeping, and Franchising as well as personal enrichment classes. Many classes are geared toward business owners, such as setting up an LLC, Negotiating Skills, QuickBooks and Social Media for Business. All classes are free and the entire project is funded by the credit union. Whats impressive about all this is not that a credit union is giving back to the community—many credit unions do that daily. Its that HarborOne CU products are never promoted during any HarborOne U program. Even when a class is about business lending, for example, the credit union makes sure to have objective presenters so no one is selling or promoting during class. Theres no uncomfortable sales presentation,”; Wilkinson says.Once members attend classes, a high trust level has been established. Theyve enjoyed the class, are impressed with the facility, and then theyll ask for one-on-one financial education. Theyll ask for help with budgeting, financial planning or opening an account at the credit union. When someone does want to work with the credit union, Wilkinson introduces the member to someone at the CU and makes sure theres a seamless handoff. Interestingly, 75 percent of participants have not been members of HarborOne CU prior to their participation. The other 25 percent increased their business with the credit union and, of course, the 75 percent who are non-members may eventually become members. HarborOne U is located in a building owned by the credit union (theres a HarborOne CU branch in the building too) and consists of 3,100 square feet, divided into 3 sections: a wireless classroom, an executive conference room, and a business information center, in partnership with the Small Business Administration, that includes a workspace people can use at no cost. For a small business owner, its a chance to work outside the home and away from distractions. For those who are unemployed, it has become a place to seek available jobs and polish a resume. The room is available for Girl Scouts and Boy Scouts too. Truly, its a community center.Another project at HarborOne U is displaying the work of local artists. People may come in just to see the art, and that starts a conversation while introducing people to HarborOne CU.Classes are based on what members need, such as a recent class titled Finding Work in Hard Times.”; Other subjects that were successful include one for parents on understanding and treating concussions, social media and identity theft. A demo class for people new to Zumba brought in many women who otherwise may have never heard of the credit union. Finding the right topic is key, but once people see whats offered, they make requests of their own. For example, within three days, two people approached Wilkinson with exactly the same question: Im 30-something, I own a house, and I have some money saved, what should I be doing now? Thus a new class was born, called Thirty-Something: Now What?For this fall, HarborOne U has scheduled not more financial education, but less. Through HarborOne U, the credit union has bypassed the stigma of financial education, and made it comfortable for members … and everyone else in the community.As Wilkinson puts it, We havent changed what weve offered, but weve changed the way we reveal it to people.”;Laura Enock is CEO of CUVA and publisher of www.CUcontent.com, a social media, website and newsletter content service for credit unions. Sign up to receive free marketing content every week at www.CUcontent.com.

Conflict-Busting Conversation, from cumanagement.org Daily Deposits.

Mon, 12 Sep 2011 01:00:00 CDT

September 12, 2011 A long-time consultant is offended by something a new salesperson said on a conference call and is threatening to leave. An employee in marketing is furious about being passed over for a promotion in favor of her co-worker and is trying to discredit her. These are just a couple of examples of the workplace conflicts that take up a huge percentage of the typical managers time. The trick to moving past these conflicts and on to increased productivity for everyone at your organization, says National Conflict Resolution Center President Steven Dinkin, is knowing how to broach the topics in a way that leads to improved working relationships. Disagreements, disputes and honest differences are normal in any workplace,”; says Dinkin, co-author along with Barbara Filner and Lisa Maxwell of The Exchange: A Bold and Proven Approach to Resolving Workplace Conflict (CRC Press, 2011). When these normal occurrences are treated as opportunities for exploring new ideas about projects, they can become catalysts for increased energy and productivity. Getting to that place starts with an honest discussion.”; Dinkin knows what he is talking about. He, Filner and Maxwell have spent years heading up the National Conflict Resolution Center. Their new book supplies readers with proven tools for resolving emotionally charged disputes. The Exchange itself is a four-stage, structured process specifically designed to encourage discussion of all the issues in dispute—even the intense, emotional issues—in ways that are more productive than a gripe session. It derives from the conflict resolution model used successfully by National Conflict Resolution Center mediators for more than 25 years and includes constructive techniques to use in face-to-face meetings with disputing or disruptive employees. You can use this process to break down barriers—and to create changes that have a positive effect on your whole workforce. Its important to note that The Exchange was designed by mediators for managers. Managers learn a structure and skills similar to those mediators know and use, but it also takes into account managers responsibilities, both to their companies and their employees. A key difference between managers and mediators,”; Dinkin explains, is that managers are not expected to be neutral. They have the responsibility of reinforcing the interests of the department and the company for which they work. The Exchange teaches managers the right combination of skills and structure, as well as the finesse, to express the needs of the company. The Exchange begins with you—the manager—and ends with employees meeting with the manager to develop effective solutions,”; he adds. Like most managers, you probably did not set out to be a conflict resolver. And you probably find it more than a little frustrating to be your companys resident fire chief. The Exchange teaches you to resist the temptation to simply tell people what to do. Actively engaging your employees in problem solving helps them take responsibility for the problem and for the solution. When you know how to address workplace conflicts properly, these challenging situations can lead to creative resolutions that re-energize the workplace and bring new ideas to old problems.”; The following tips—excerpted from the book—will teach you how to turn your next meeting with conflicting employees into a productive conversation. Start with an icebreaker. Most people will be ready to complain, debate or argue at the beginning of any conflict-based conversation. They have marshaled their most compelling arguments and are ready for battle. If you go straight to the topic of controversy, most people will quickly get stuck in defending their positions and attacking their opponents. Thats why you need to do something different,”; says Dinkin. This is not just a light introductory activity. It is a way to non-confrontationally initiate a conversation about difficult issues. An ideal icebreaker asks for a persons own take on something thats both work-related and positive. For example, if the conflict involves two employees involved in the same project, you might break the ice by asking each of them how they became involved in the project and what they hoped to achieve.”; Listen. Conflict resolution is tricky because too many managers ignore the fact that sometimes what people arent saying is more important than what they are saying. Often the best resolutions come from listening carefully to what the other person has to say. Being an active listener sends the message that you are genuinely concerned about him or her and the dispute. Put plain and simply, its the best way to get good information. Ask an open-ended question,”; advises Dinkin. It can be as simple as, ‘So, tell me, whats going on? Then listen carefully to that persons side of the story. Youll know its time to insert yourself into the conversation when the discussion turns negative. You can acknowledge someones emotions without seeming like you are taking his or her side,”; says Dinkin. Especially at the beginning of talking about a conflict, youre building rapport, even if its with an employee youve spoken with millions of times before. When theres a conflict, youre treading on new ground, and showing that person you are willing to see his or her side of the story is how you will set the foundation for working toward a solution.”; Use and encourage positive language. This one might seem like a no-brainer, but any frustrated manager knows how easy it can be to slip into negativity after a conflict has affected a workgroup. Always think before you speak. Use positive, easy-to-understand language. Dont fall into repeating, verbatim, paragraphs from your companys HR manual. Remember, youre having a conversation, not a trial,”; says Dinkin. If you keep the language positive, whoever youre addressing will likely mirror what youre doing. Even referring to the departments needs can be stated in very positive terms, which will lead to a more collaborative (rather than punitive) tone in the discussion. For example, if the manager says, ‘This has increasingly affected the entire team, and we need to address it so we can get everyone focused back on the project goals and having a comfortable working environment. I am looking forward to establishing a good working relationship between the two of you and improving morale for everyone on the team, it will set a constructive atmosphere. When you keep things positive, you can work toward great solutions efficiently and effectively.”; Work toward SMART solutions. Sustainable solutions are SMART solutions. That means theyre: Specific: Be clear about who will do what, when, where, and how. Measurable: Be clear about how you will all be able to tell that something has been done, achieved or completed. Achievable: Make sure whatever solution you agree on fits the situation; that it complies with both the law and organizational policy; that everyone involved has the ability and opportunity to do what is required of them. Dont set up anyone to fail. Realistic: Check calendar dates for holidays and vacations; look at past performance to predict future actions; allow extra time for glitches and delays; dont assume the best-case scenarios will come true. Timed: Create reasonable deadlines or target dates; include a few ideas about what to do if something unexpected occurs; be willing to set new dates if necessary. Once you have your SMART solutions in place, immediately put them in writing,”; says Dinkin. Putting solutions in writing is very important, and not just for legal reasons (and for covering your back). Its a way to honor the work that you and your employees have accomplished. Its also a way to keep peoples memories from diverging from the agreed-upon solutions. Verbal agreements have a way of being remembered very differently by different people—and then becoming the subject of another conflict. Its safer and easier for everyone to have the solutions written down, in order to be able to easily verify them later.”; Disputes, full of emotional complexities and interpersonal histories, are the headaches of the workplace,”; concludes Dinkin. Theyre always going to pop up, even in the most cordial of workplace environments. The good news is that when youre armed with the tools you need to work toward productive resolutions, you and your employees can use them to strengthen your organization rather than harm it.”;

NextGen Leaders: Jeremiah J. DeGollon, from cumanagement.org Daily Deposits.

Fri, 09 Sep 2011 01:00:00 CDT

September 9, 2011 The CUES Next Top Credit Union Exec challenge entrants all had inspiring, unique and innovative projects. Public voting narrowed the field to six finalists. Learn more about them here. The finalists will present their final presentations—and the Next Top Credit Union Exec will be selected—at CUES CEO/Exec Team Network, Nov. 6-9 in Las Vegas. But for the next several weeks, we will be checking in with one of the non finalists to see how their project is going and learn a bit more about these next generation leaders. Jeremiah J. DeGollonBusiness Development ManagerSummit Credit Union SummitCreditUnion.comMadison, Wis. CUs Facebook page CUs Twitter pageCUs YouTube channelCUs Flickr pageFollow Jeremiah on TwitterView Jeremiahs Next Top Credit Union Exec video entry Give us the elevator speech about your project (as in how would you describe your project to someone you meet in an elevator?):Hello, my name is Jeremiah DeGollon and I'm the Business Development Manager at Summit Credit Union. Today, as we look for ways to be more mindful with our spending, to pay down our debt and to save more money, more and more people are finding that they need honest, trusted financial advice and they are finding it with a credit union. Were different than a for-profit bank that is accountable to stockholders and interested in profits. We are a not-for-profit financial cooperative, founded to promote and develop thrift/savings. Two years ago, we launched a free employer benefit program called CU@Work, as a way to help employees become financially educated, establish a financial plan, change financial habits, get organized and be held accountable. Through Summits CU@Work program, businesses can offer their employees benefits, such as personal financial planning and advice, budgeting assistance and even customized financial education programs to help them become better-educated consumers of financial services. Companies that provide financial benefits and financial education to their employees experience increased workplace productivity as well as improved morale and company loyalty. CU@Work shows your employees that you care about their financial well-being, which contributes to your companys bottom line while providing a lifetime value for your employees and their families. To date, we have helped some of Wisconsins largest employers realize the benefits of this program, reaching more than 26,000 employees, while increasing our credit unions membership. What is your long-term career goal? My long-term career goal is to be CEO or C-level executive of a credit union, and even eventually run for public office and serve an even larger community. My personal values and beliefs are well matched for working in the credit union industry, as we are dedicated to helping people, and I hope to do that with my career in whatever direction it takes me. I have always been a very driven person, with the belief that I can do anything—so Im not limiting myself to any one course of action, but with the caveat that I want to do much greater good! Fill in the dots: The future of credit unions will be bright if ...We continue to grow. In order to do this, we have to be present, be competitive, be innovative, never settle and always be looking forward. What my generation brings to the credit union movement is …New technology and simplified ideas. I believe my generation is moving the industry away from the days of having eight different checking accounts, five money markets, and countless other types of accounts to try to meet the needs of everyone. We cant be everything to everyone. In order to be successful, we have to think more like Apple, Google and IBM—companies my generation relates to the most. Look at Googles front page: no advertising, simple and clean. Technology and finance will increasingly come together because of the generation of wanting and getting it now. Gone is Sam Goodie and music stores; here is iTunes. I anticipate my generation changing the face of finance as we know it. People consider me a leader because … Ive had classes on leadership and worked for a number of people over the years, and when I think about who I consider to be a leader, its someone that I can trust and believe in their vision, someone that motivates me to succeed, and someone that supports me en route to that success. Those are things that I try to bring to the table every day in helping others realize their dreams and goals. Who is your hero and why?Growing up, I had multiple heroes.”; Michael Jordan, Barry Sanders, etc. But when I got older, I realized thats its not the athletic stars that really drove me to who I am today; it was my family around me. My Grandpa was especially one of those heroes that I always looked up to. Im sure in his years he wasnt perfect, or the worlds best at something, or a star athlete for that matter; but he had heart and he cared about people, and he cared about me and wanted me to do good in life. These are some the most valuable qualities that I try to model myself by today. Awhile back, Grandpa passed the heros torch to my wife and she hasnt missed a beat either. Not only does she push me to be my best, but she is extremely driven, family-focused and outgoing, motivating me every day to accomplish my dreams and goals. Grandpa would be proud! Who is a must-follow on Twitter?Ive heard that Twitter is only for famous people and star athletes and no one cares about the average Joe and what youre doing on Twitter. Id like to change that. With my Twitter account, @JJDeGollon, Ive taken to try to motivate people every day. I follow AP news, the President and Mark Cuban—all worth following because I like to hear what they have to say; but I look for the ability to make someones day in 140 characters or less. If the only thing I was tweeted today was, Today, you have the opportunity to make someones day; how will you do that?”; Id be a whole lot more excited than to hear about the problems with patent law … No offense Mark Cuban.

CFO Focus: Stop Silo Risk Management, from cumanagement.org Daily Deposits.

Thu, 08 Sep 2011 01:00:00 CDT

September 8, 2011Credit Union Management magazines Web-only CFO Focus”; column runs the second Thursday of each month.Many credit unions are beefing up their risk management process. However, a critical component of the risk management process that is missing for many is evaluating and managing risk in aggregate.Managing Aggregate Risks According to conventional wisdom, risk is quantified and managed in silos—including interest rate risk, credit risk, concentration risk, etc. External forces no longer support this conventional wisdom as the world has changed. Our belief is that decision-makers and regulators need to have a more comprehensive view of risk by attempting to quantify and manage risks related to the entire financial structure. For example, changes to various components of profitability have caused decision-makers to seek alternative sources of income beyond the margin. The industrys reliance on non-interest income is no secret (as illustrated in the following graph), yet few are quantifying the potential impact on aggregate risk of this source of revenue. In quantifying and managing aggregate risks, we recommend continuously evaluating and answering the following question: Under the conditions for which we have chosen to prepare, are there circumstances, in isolation or combination, that could cause our credit union to lose money and erode net worth to a level that threatens safety, soundness and ongoing viability? Keep in mind, if risks are exclusively quantified at the individual level and risk limits are exclusively established and monitored at the individual level, then decision-makers will never understand if the credit unions net worth is adequate to absorb risks that could materialize simultaneously. History teaches us that rarely do risks materilaize in isolation. We also acknowledge that it is necessary to understand the individual components of risk. Following is an example of how decision-makers can understand their aggregate risk while also understanding, at an executive level, the key contributors to risk. Risks to earning incorporate base net operating expense and interest rate risk. Based on analyses, this credit union has 4.06 percent net worth ratio at risk. Adding the net worth ratio at risk to the established minimum of 6 percent, this credit union needs roughly 10.06 percent net worth to absorb potential losses and not fall below 6 percent. The net worth ratio at risk should be quantified and evaluated at least quarterly and discussed in light of policy risk limits. Additionally, major decisions should be tested prior to implementing. The "Risk to Earnings including IRR" Component of Aggregate Risk The following is intended to touch on just a few things to consider in determining the risk to earnings including IRR”; component of aggregate risk, usually intended to be addressed by asset/liability management policies. Asset/liability policy limits are often established for net interest income and/or net economic value and do not establish limits for ROA and net worth. A primary focus on NII exclusive of ROA can be dangerous, especially in light of threats credit unions face beyond the margin. The net interest margin for the industry has worked its way back to 2006 levels primarily due to the lowering of the cost of funds. As this option diminishes because many are reaching the bottom on deposit pricing, a primary focus on the NIM today can unintentionally invite interest rate risk or credit risk. Further, consider that management would never submit a budget without net operating expenses and the board would never approve a budget that stops at the margin. Why? Because operating expenses, fee/other income and provision for loan losses are so critical in understanding potential earnings, net worth and safety and soundness that no prudent board or management would tolerate its absence in a budget. Why, then, is it acceptable to establish and manage to risk limits—intended to ensure safety and soundness—that dont incorporate ROA and, more importantly, net worth? Some might be thinking, NEV is a comprehensive measure of our threats to net worth.”; It is not. NEV focuses on assets and liabilities and therefore ignores threats beyond the margin. A decline of 30 basis points in non-interest income due to interchange income would not change the results of an NEV analysis. Further, NEV and net worth are not synonymous. An easy way to remember that they are not synonymous is that net worth encompasses all of the strategy levers and NEV does not.When policy limits do go beyond the margin and establish limits on net income or ROA, often the risk analysis performed assumes a static balance sheet. This is inadequate for several reasons. One key reason is that, by definition, a static balance sheet assumes the financial structure does not change regardless of what is happening to rates. This is a simplifying assumption that can mislead decision-makers. (For more information, see our article, Things to Consider When Evaluating Static Simulations.”;) The End Objective Decision-makers should strive to answer this question: Do we have enough net worth to support the aggregate risks in our financial structure? To answer this, every strategy lever needs to be incorporated into the analysis. To manage these risks, decision-makers need to use every strategy lever and not be limited to taking action only with assets and/or liabilities. About c. myersC. myers philosophy is based on helping our clients ask the right questions in order to create a solid foundation that links strategy and financial performance. Since 1991, in addition to strategic planning, c. myers has partnered exclusively with credit unions for their ALM needs, such as performing interest rate risk analysis and what-ifs”; (including NEV analysis and its tradeoffs), model validation, liquidity analysis, merger analysis, ALM assumption review, ALM policy and, more recently, concentration risk policy development just to name a few. Reach c. myers at 800.238.7475 or www.cmyers.com/contact/.

SBA Lending Star, from cumanagement.org Daily Deposits.

Wed, 07 Sep 2011 01:00:00 CDT

September 7, 2011 SBA Resource Credit unions interested in becoming an SBA lender will find resources and information on this site. Centris Federal Credit Union, Omaha, Neb., was recognized by the U.S. Small Business Administration in Washington, D.C., as one of the agencys Lenders and Investment Companies of the Year, during National Small Business Week in May. Were extremely fortunate and very proud of the award and it represents the progress weve made in building up the business,”; says $450 million/71,000-member Centris FCU President/CEO Kevin Parks, a CUES member. Both Parks and O.J. Spooner, VP/commercial banking, started at the CU in 2008, just after Centris FCU made its first SBA loan. They realized the CU needed to shift its business lending approach, and SBA loans have played a major role.The commercial department wasnt focused on the small business sector when we arrived,”; Parks says. They had been looking for ‘homeruns, making large, multi-million dollar loans to businesses that werent necessarily in our field of membership,”; he adds. The companies were eligible for membership but were not really part of our community.”;To me that was contrary to what we are trying to do today, focusing on the needs of our members,”; Parks says. $1 million or less is the CUs sweet spot”; for small business loans, with most falling in the $100,000-$500,000 range. The CU received the award for Community/Rural Lender of the Year. As a community lender, Centris FCU has had a significant impact in its area, as the number of loans approved for this segment increased by 83 percent from 2009 to 2010 and the gross dollar amount approved increased by 230 percent. We look at this as really being a complement to the services we provide to our members,”; Parks says. We have a lot of existing members that own or operate a small business.”;Working with the SBA and becoming an approved SBA lender has been very good for the CU. The SBA guarantee is a good way to mitigate some of the risk,”; Parks says. Without the SBA programs, some of the loans wouldnt have gone through.”; Through the SBA lending program, Centris FCU has helped a wide range of business owners, from restaurants to manufacturers to a company that installs medical and communication equipment in hospitals. One thing that was instrumental in getting the award,”; says Parks, was we have used just about every one of [the SBAs] programs,”; which include programs for women, minorities and veterans. In fact, when a member expresses interest in a business loan, the CU will first run through the various SBA programs to see if the member qualifies for any.Three Steps to Success Its all about relationships,”; says Parks. He has three tips for other credit unions.1. Contact your local SBA office and build a relationship with them. Use them, leverage them. Get to know their programs and services,”; he suggests. They want to help,”; because SBA loans help create local jobs. At the awards presentation, it was all about what kind of job growth are we creating through small business and small business finance,”; he adds. They want to work with the institutions. They see it creates jobs.”;2. Mine your members. You really need to focus on your current and existing member base. Learn who they are, what businesses they have and really mine your base,”; he says. Youll be surprised how much of a gold mine you have in your membership already.”;3. Work at building the relationship internally with the people in your branch offices. Get them to recognize who the business owners are. A lot of our business comes from referrals in the branches,”; he says. A lot of branch staff probably know the members and know what they do,”; he says. Teach them to look for clues in conversations. Does a member mention expanding their business”; or needing to buy a piece of equipment”;? Getting in front of the front-line staff is important, too. The CUs commercial group regularly visits the branches to educate staff about the CUs business products and services. The commercial group has gradually expanded from two to six people to help handle the volume of referrals the CU gets and to build the infrastructure for its commercial business. This lets the staff members manage the risk properly and do lots of follow-up with its business members, making sure everything is going OK. The CUs commercial group consists of the following positions and responsibilities: VP/Commercial Banking: responsible for management of the department; VP/Commercial Loan Officer: responsible for member service, product sales, and loan origination; Commercial Credit Analyst: responsible for loan request reviews and analysis, and credit administration practices; and Commercial Products Specialist: responsible for member service, commercial deposit product support, commercial loan support, monitoring member activity and tracking, follow-up on tickler files, etc. Centris FCU increased its SBA-insured loan total from $390,000 in 2007 to $6.6 million as of spring 2011. The CUs total business lending portfolio is about $27 million. The CU offers a variety of credit loan options, including commercial real estate loans, business lines of credit, and equipment loans (for the purchase of equipment, furniture, fixtures or other business assets) in addition to the SBA loans. Centris FCU includes downloads for a personal financial statement (which details the members assets and liabilities) and loan application on its Web site for business owners to easily get started with a loan inquiry.The CU also offers commercial checking and savings products and card processing solutions through Heartland Payment Systems.Theresa Witham is a CUES editor.

2011 CUES Golden Mirror Awards Winners Announced, from CUES.org Press Releases.

Wed, 07 Sep 2011 00:00:00 CDT

MADISON, Wis. – The Credit Union Executives Society is proud to congratulate all of the 2011 Golden Mirror Awards winners! Visit cuesgma.org for a complete list of all GMA winners who will be recognized in the October issue of Credit Union Management™ magazine.

HR Answers: 401(k) Fee Rule Coming, from cumanagement.org Daily Deposits.

Tue, 06 Sep 2011 01:00:00 CDT

Historically, the retirement industry hasnt been required to publish all fees and expenses associated with 401(k) products. Thats about to change. The Department of Labor noticed that the majority of 401(k) plan sponsors are in the dark regarding the fees theyre paying. To add insult to injury, most are under the impression their plan is free. The DOL has issued a new regulation that will take effect in April and the end of May 2012 for plan sponsors and their employees, respectively, requiring the disclosure of fees and expenses associated with 401(k) plans. The regulation will impact not only plan sponsors, but the whole of the retirement industry. 401(k) plan administrators, brokerage houses, investment firms, etc., will now have to create disclosures following user-friendly, uniform guidelines. When pooled collectively by the account holder, these disclosures will tell a clear story of both direct and indirect fees and expenses. This is a monumental decision. In fact, some might say its a long time coming. The disclosure requirement has sent 401(k) vendors scrambling to comply. Some vendors are opposed to this regulation as it will expose the high, even unreasonable, fees associated with their products and services. Plan sponsors, in turn, should be concerned because starting in 2012 theyll have to share those expenses with employees and justify their plan choices. Plan sponsors who dont plan ahead and secure reasonable-fee solutions may be facing some awkward, difficult conversations. Plan sponsors can avoid these types of conversations by requesting a written explanation of their fees from their current provider. They should be prepared to ask some hard questions. Here are a few questions to get you started: What are the total all-in fees and expenses applicable to my companys 401(k) plan? What have you accomplished in our plan for the compensation you were paid? Does this total expense include any indirect compensation received by your firm for selling/administering my plan? If not, why arent they included? How much is the indirect compensation and what is the frequency? Why wasnt I made aware of this fee? How much has this cost our employees over the life of our relationship? Its important employers hold their ground and ask for clear explanations of what each fee is for and to whom it is paid. Connie Certusi is SVP/general manager of Sage's Small Business Accounting Solutions business unit, which includes the Sage Peachtree and Sage Simply Accounting businesses, as well as the Sage Accountants Network.

Executive Compensation Increases on the Upswing According to CUES Executive Compensation Survey, from CUES.org Press Releases.

Tue, 06 Sep 2011 00:00:00 CDT

MADISON, Wis. –Executive compensation increases have gone up in 2011, in comparison with recent years. According to the current CUES^® Executive Compensation Survey, from the Credit Union Executives Society and administered by enetrix™, Middleton, Wis., the average base salary for credit union CEOs increased 4.37% in 2011, as opposed to 3.62% in 2010.

NextGen Leaders: Kristen Scott, from cumanagement.org Daily Deposits.

Fri, 02 Sep 2011 01:00:00 CDT

September 2, 2011 The CUES Next Top Credit Union Exec challenge entrants all had inspiring, unique and innovative projects. Public voting narrowed the field to six finalists. Learn more about them here. The finalists will present their final presentations—and the Next Top Credit Union Exec will be selected—at CUES CEO/Executive Team Network, Nov. 6-9. But for the next several weeks, we will be checking in with one of the non finalists to see how their project is going and learn a bit more about these next-generation leaders. Kristen M. Scott, AAPVP/Enterprise Risk ManagementTelhio Credit Union Columbus, OhioCUs Facebook pageCUs Twitter PageWatch Kristens Next Top Credit Union Exec entry video Give us the elevator speech about your project (as in how would you describe your project to someone you meet in an elevator?)In order to more concisely understand where our risks lie as a credit union and how our management team is mitigating those risks, I applied enterprise risk management principles to our reporting process. This also enabled us to streamline our reporting to senior management and the board of directors, and ensured that we were consistent in our review and reporting of our complete risk profile. What is your long-term career goal?To run a credit union someday! Fill in the dots: The future of credit unions will be bright if ... We keep evolving to meet our members wants and needs and continue to keep pace with the technology and trends that our members want and demand. What we do differently and better, in my opinion, is member service. So, as long as we are delivering the products, but with superior service, we will always be relevant and continue to grow. What my generation brings to the credit union movement is … I think we bring the thoughts and opinions of the future of credit unions. We are prime borrowers and have grown up around technology enough to understand the needs of current and potential members that will allow our industry to prosper long term. People consider me a leader because … I am fair, rational and level-headed. I try very hard to make decisions based on fact, rather than opinion or emotion. Additionally, I am constantly striving to learn, to improve and to do things better. Finally, I believe I am a big-picture thinker: I try to understand as much as I can about our credit union and external factors when making decisions that have an impact on our work. Who is your hero and why? My parents--they are the perfect combination of sweet and stern and truly inspired me to Do a job big or small, do it right or not at all!”; Who is a must-follow on Twitter?@TheRealCUES, @zumba, @gonzobanker, @NewsNowLiveWire, @AmazingRace_CBS, and, of course, @TelhioCU!

How Total Benefits Pre-Funding Differs from Other Benefit Plan Funding, from cumanagement.org Daily Deposits.

Thu, 01 Sep 2011 01:00:00 CDT

From our sponsor September 1, 2011 On the surface, a Total Benefits Pre-Funding (TBPF) program looks similar to long-familiar methods of preparing to pay for future benefit obligations such as pensions and supplemental retirement programs for executives. But TBPF serves a different role—one thats becoming more important as benefit costs continue to rise and income growth stays flat (or worse).Some background on TBPF: In 2003, Congress unlocked some previously impermissible sources of income, such as certain equities and commercial bonds, for federal credit unions to use to meet a broad range of future employee benefit obligations. Some of these instruments, along with cash value life insurance, had already been NCUA-approved to accumulate assets for specific retirement and post-retirement benefits for individual employees, such as 457(f) and (b) accounts.Because TBPF programs can now use some of these same insurance investment options, but in a different way, its easy to misunderstand how a TBPF works.Here are three key differences that make TBPF a new and important hedge against increasing employee benefits costs:1. Earnings can be used more flexibly to offset a variety of benefit cost increases. TBPF isnt used to tie a specific insurance investment account or life insurance policy to a specific, known future expense, such as one executives supplemental retirement benefit. TBPF also does not replace a credit unions normal method of paying for employee benefits from its operating capital. A TBPF program simply adds another source of potential long-term income to help pay for certain benefit expenses. For example, the credit union could set up a TBPF to offset projected medical care costs and projected 401(k) matching contributions and retiree health insurance premiums.As time goes on, some of these costs will be more or less than projected, but maturing insurance investments or insurance policies from the TBPF program can be used flexibly to meet the actual needs that emerge.This income and flexibility could make a significant impact down the road—it could be the difference between attracting and retaining the best employees, or being forced to reduce employee benefits or services for members.2. TBPF accounts or policies are separate from benefits on the balance sheet.Accounting for TBPF is different than for insurance investment accounts or insurance policies that are tied to specific benefit plans. For example, on a credit union balance sheet, an insurance investment made with money contributed to a qualified pension plan is a plan asset”;—an asset that belongs specifically to that pension plan. In contrast, a TBPF insurance investment or policy is a separate asset.3. Compliance standards are different, but still rigorous.Credit unions must be able to show examiners that TBPF insurance investment amounts and projected returns are strongly linked to projected future benefit costs. Although the costs can be from a mix of benefits, projections for each of the benefits must be based on reliable data.For any credit union looking into adopting these previously impermissible options, its critical to work closely with an experienced partner to manage the program and ensure the credit union complies with all applicable regulations and risk management standards.If you have questions about planned asset accumulation for employee benefits expenses, contact your CUNA Mutual Executive Benefits Specialist, or call 800.356.2644, ext. 1035.Proprietary insurance is underwritten by CUNA Mutual Insurance Society. Proprietary and brokered insurance is sold by CUNA Mutual Insurance Agency, a wholly owned subsidiary. This insurance is not a deposit and is not federally insured or guaranteed by your credit union. All rights reserved, CUNA Mutual Group, 2011 EXBEN-0811-88EE

PR Insight: Is Your Boilerplate Catching Eyes or Taking up Space?, from cumanagement.org Daily Deposits.

Thu, 01 Sep 2011 01:00:00 CDT

September 1, 2011Credit Union Managements online-only PR Insight”; column runs the first Thursday of every month. Press releases are the most well known and often read public relations tool used today. This fact can serve more as a curse than a blessing for PR professionals, departments and teams. Since everyone has seen a release, they assume news announcements are quick and easy to write…maybe they, a non-writer, could tackle one. Worse, the same release and format can be used again and again, becoming mindless – and careless – repetition.The greatest victim of this mindset is the boilerplate – the about us”; section at the end of a press release. Just reading this description I found online made my skin crawl…”;chunk of copy you slap at the end of every press release you kick out the door.”; Etymology of boilerplate from Wikipedia The term dates back to the early 1900s, referring to the thick, tough steel sheets used to build steam boilers. From the 1890s onward, printing plates of text for widespread reproduction, such as advertisements or syndicated columns, were cast or stamped in steel ready for the printing press and distributed to newspapers around the United States. They came to be known as boilerplates.”; Some companies also sent out press releases as boilerplates, so they had to be printed as written. The modern equivalent is the press release boilerplate, or "boiler," a paragraph or two that describes the company and its products. Most Important Paragraph in Communications Yes, boilerplates are typically positioned at the end of press releases, but that does not reflect their importance. Boilerplates are often repurposed in sales, marketing, advertising and online directories, making this the most important paragraph in your communication efforts. Before editing or rewriting your boilerplates, consider the possible: journalists/bloggers, current members, prospective members, investors, job seekers, and employees. Knowing your audience will help you keep in mind that people both familiar and not familiar with your organization will be reading about you, so avoid any use of jargon.Construction of a Boilerplate Next, talk through your credit unions 30-second elevator pitch. Your boilerplate should mirror the information shared in this pitch. Start the boilerplate off with About CREDIT UNION”; and then include a: short description of your credit union, including keywords for search engine optimization; brief outline of the products and services you offer and to whom; mention of any awards earned or recent industry/community recognitions; important numbers, e.g. members, locations, founding year, etc.; and hyperlink to your credit unions website as well as any pertinent social media domains. Thirty seconds can roughly translate into 100 words, so challenge yourself to stay at or under that word count. Quick research shows the boilerplate of the largest credit union, according to Credit Unions Online, has a 120-word boilerplate, while the 100th largest credit union uses just 45 words. Below please find boilerplates for CUES and William Mills Agency as references.CUES boilerplate (32 words)For more information about CUES, visit cues.org. The Credit Union Executives Society is a Madison, Wisconsin-based, independent, not-for-profit, international membership association for credit union executives. CUES mission is to educate and develop credit union CEOs, directors and future leaders.WMA boilerplate (52 words)About William Mills Agency Founded in 1977, Atlanta-based William Mills Agency is the largest independent public relations firm serving the financial and technology industries in the United States. Its clients have included prominent companies in the payments, banking, credit union, automotive, insurance, healthcare and mortgage industries. Additional information about our services is available at www.williammills.com or by calling 678-781-7200. Pertinent public relations best practices and media updates are constantly shared on Twitter, Facebook, LinkedIn and our FinTech Marketing blog.Unfortunately, boilerplates are easy to overlook in the drafting process and even easier to neglect, as your credit union distributes release after release. My biggest piece of advice to you is to take the time to craft the most important paragraph in your communications and review it for updates with every news announcement you make. Elizabeth McMillan, APR, is a group director for William Mills Agency, the nations largest independent financial services and technology public relations firm. Follow William Mills Agency on Twitter and check out our FinTech Marketing blog.

Where is the Grass Greener?, from cumanagement.org Daily Deposits.

Wed, 31 Aug 2011 01:00:00 CDT

August 31, 2011This is bonus from Giving Loans Life”; in the August 2011 issue of Credit Union Management magazine.High unemployment, dismal home valuations and talk of cuts to Social Security, Medicare and unemployment compensation have consumers collectively reluctant to increase their net debt. So is the grass greener on the commercial lending side of the fence, where banks have alienated some of their small business customers? Yes, but only if you do it carefully, says Bill Beardsley, CEO of Michigan Business Connection, Ann Arbor, a business lending CUSO owned by three Michigan CUs, providing contractual service to 12 Michigan CUs and doing occasional transactions with about 24 more in the state. New (business) loan growth has never been better,”; he reports. So many borrowers have lost their traditional providers. This economy is challenging, but Michigan Business Connections portfolio is growing, delinquencies are low and charge-offs are below the industry average.”; To succeed in commercial lending, be sure to distinguish between loan servicing and loan management, Beardsley insists. Servicing is the routine operations of accounting, billing and payment processing. Management is knowing whats going on.”; In good times, its possible to run a profitable portfolio just by servicing it. In these challenging times, you have to manage, you have to know what borrowers are going through,”; he emphasizes. That means routinely doing three things, he says: receiving, reviewing and questioning annual financial statements; doing annual interviews in person, over the phone or through written or online questionnaires; and making unannounced annual site visits to spot anything wrong, like potholes in the parking lot, empty shelves in a store, a restaurant that is nearly deserted at lunch time or a business that is not open when it should be. Successful commercial lending takes experience and resources, which usually are in short supply at all but the largest CUs. Starting small poses underwriting problems because there are so many different business models potential borrowers might be operating under; this makes it hard to find one or two senior lenders with broad enough experience, cautions Jim Devine, CEO of Hipereon, a commercial lending training company based in Redmond, Wash., and a lead faculty member for CUES School of Business Lending™.You may have finessed that problem by outsourcing the underwriting, but now regulators are insisting that CUs that make commercial loans have in-house smarts. Youre too vulnerable if you cant evaluate what the outsource provider sends you,”; Devine notes. Relying on what are considered savvy lenders to originate business loans and then buying participations has led to lending out of market where the CU doesnt have relationships,”; Devine says. Now many of the problem loans are coming from participation deals. When an out-of-market loan goes bad, a participating credit union has a potential mess to deal with and limited options,”; he says. You need to start where you have the pulse and feel of the borrower.”; Thin resources led CUs to rely almost exclusively on collateral values, especially real estate. If the loan was over-collateralized by real estate, you made it. It was that simple,”; Devine points out. What was missing was cash-flow analysis. You have to root out the critical cash determinants and stress-test them and then build debt service around cash-flow capacity,”; he insists. Only cash flow pays off debt.”; Now that many loans are under-collateralized, the need to rely on cash flow is painfully obvious.Another questionable shortcut has been to focus almost exclusively on underwriting. But risk only begins the day you make the loan, Devine points out. There is a huge hole where credit review and administration should be, he charges. Without scale, a CU would hire or train a business lender and then put that person in charge of loan review and administration, whereas in banks with sophisticated commercial lending operations, those two functions are carefully separated. The checks and balances of a good business lending operation are missing at many CUs, he says. Lower commercial real estate values mean that you may have borrowers who borrowed too much, Beardsley says. The good borrower who is in over his head represents the greatest management challenge. The bad borrower is easy to manage, he says. That path is clear. You just do what you have to do. Managing the good borrower takes more judgment.”; Richard H. Gamble is a free-lance writer based in Colorado.Also read Say Yes to Advocacy and Turnkey Business Lending for Michigan CUs”; on CUES Skybox.Sign up for CUES Business Lending Edge, a free quarterly e-newsletter.

CUES® Next Top Credit Union Exec Judges Announced, from CUES.org Press Releases.

Wed, 31 Aug 2011 00:00:00 CDT

MADISON, Wis.—The judges for the Next Top Credit Union Exec, powered by CUES challenge have been announced: Peter Paulson, president/CEO, Corporate America Family Credit Union in Elgin, Ill.; Jan Rose, president/CEO, E&A Credit Union in Port Huron, Mich.; and Greg Smith, CEO, PSECU in Harrisburg, Pa. Each judge has a CUES Advancing Management Group Membership, which allows an unlimited number of employees at their credit union to enjoy CUES member benefits.

Community Involvement, from CUES.org Member News

Tue, 30 Aug 2011 14:25:41 CDT

SAFE Credit Union, North Highlands, Calif., staff recently helped raise $10,000 for Sacramentos PBS TV station KVIE — all in a single night of phone bank volunteerism. Joined by SAFE President/CEO Henry Wirz, a CUES member, members of the CUs executive team and staffers from the call center rolled up their sleeves and pitched in to help. The 11 volunteers produced phenomenal results from one night of work, continuing the CUs longtime commitment to KVIE. Wirz chairs KVIEs board of directors, and the credit union also underwrites the local documentary series ViewFinder.

Honored, from CUES.org Member News

Tue, 30 Aug 2011 14:24:51 CDT

Fifty local school children will be returning to school this fall with backpacks full of new supplies thanks to the generosity of Altura Credit Union, Riverside, Calif., members and employees. For the past month, Altura CU has been collecting donations at its branches for Riverside Countys Fill a Backpack Program.”; The CU has nine CUES members.

Community Involvement, from CUES.org Member News

Tue, 30 Aug 2011 14:24:08 CDT

Having heard the news that the Foodbank of Southeastern Virginia was experiencing a staggering shortfall, Chartway FCUs employees decided to join the battle against hunger. The Virginia Beach, Va., CU more than doubled its goal of 500 pounds of non-perishable food items by collecting 1,091 pounds and raising $600 to provide 2,506 meals. The CU has eight CUES members.

Honored, from CUES.org Member News

Tue, 30 Aug 2011 14:23:13 CDT

Three credit unions have been named to a national list of the 10 best companies in the country for outstanding benefits. The credit unions were selected by an independent judging panel of employee benefits experts for maintaining their commitment to offer employees extraordinary benefits, despite a chaotic economy.

Consolidated Federal Credit Union, Portland, Ore., has one CUES member. $166.1 million
Postal Credit Union—Woodbury, Minn.
Veridian Credit Union—Waterloo, Iowa, has one CUES member. $1.8 billion

Honored, from CUES.org Member News

Tue, 30 Aug 2011 14:21:52 CDT

Tom Dorety, CCUE, president/CEO of Suncoast Schools Federal Credit Union, Tampa, Fla., is one of two winners of the National Credit Union Foundations 2012 Herb Wegner Memorial Award for Lifetime Achievement.

Honored, from CUES.org Member News

Tue, 30 Aug 2011 14:20:59 CDT

Honored: Money Magazines list of 7 Best Banks 2011”; includes Alliant Credit Union, Chicago, as the Best All Access Credit Union.”; The CU has one CUES member.

Name Change, from CUES.org Member News

Tue, 30 Aug 2011 14:20:07 CDT

Postal Federal Community Credit Union, Springfield, Mo., is changing its name to BluCurrent Credit Union. The CU has three CUES members.

Retirement, from CUES.org Member News

Tue, 30 Aug 2011 14:19:31 CDT

Jean M. Yokum plans to retire as president/CEO of Langley Federal Credit Union, Newport News, Va., on July 17, 2012.

New Position, from CUES.org Member News

Tue, 30 Aug 2011 14:18:44 CDT

Gabriel Max”; Villaronga, CCE, is the new president/CEO of Alamo FCU. Previously, he was a regional general manager at San Antonio Federal Credit Union, San Antonio.

Anniversary, from CUES.org Member News

Tue, 30 Aug 2011 14:16:46 CDT

Resource One Credit Union, Dallas, began celebrating its 75th anniversary with a 75 is the new 25" vehicle loan promotion, which offered 0.25 percent off all vehicle loans in July and a chance to win a $7,500 cash prize. Also, during the credit union's birthday week, Resource One CU's marketing team visited all branches with a cash cube, children's mascot Roary the Lion, giveaways and prizes. The CU has one CUES member.

Obituary, from CUES.org Member News

Tue, 30 Aug 2011 14:16:04 CDT

CUES mourns the loss of past Chairman and Ad-Hoc Director Carol Humenick, CCE, SVP/community/government affairs at Citadel Federal Credit Union, Exton, Pa., who died Aug. 27 after a battle with cancer. In her honor, CUES contributed $5,000 to Good Works Inc. Humenick also served on the board of this nonprofit organization dedicated to repairing homes and restoring hope for low-income homeowners in Chester County, Pa. View the press release. View her obituary.

A Plan Within a Plan, from cumanagement.org Daily Deposits.

Tue, 30 Aug 2011 01:00:00 CDT

August 30, 2011 This is bonus coverage from Assess Your Delivery Strategies”; from the September 2011 issue of Credit Union Management magazine. Creating a channel management plan as part of a credit unions overall strategic technology plan may identify specific channel integration opportunities that can lead to savings and improved member service. For example, integrating channels can augment security. When members initiate transactions through online banking, their cell phones or email addresses can be used to send a transaction alert. Additionally, channel integration as part of a CUs larger technology strategy can help with servicing. Ensuring the online account opening application is available to contact center and branch staff means members can get help with the online option when they call or stop by the credit union. On the vendor side, integration can also provide opportunities for credit unions. For instance, take advantage of commoditized services for price. Combining core and online banking vendors may make sense to drive per user/per account prices down. One other note on the vendor side of channel management: Selecting a best-of-breed solution in the spaces where new channels emerge is advisable so long as terms are kept short and full disclosure is made about new vendor risk. Terence Roche is a principal and Tim Daley is a senior consultant with Cornerstone Advisors, Inc., a CUES Supplier member and strategic provider based in Scottsdale, Ariz.

Good Works Inc. Receives $5,000 in Honor of Carol Humenick, from CUES.org Press Releases.

Tue, 30 Aug 2011 00:00:00 CDT

MADISON, Wis.—The Credit Union Executives Society contributed $5,000 to Good Works Inc., in honor of former board member and past chairman Carol Humenick, CCE, who served on the CUES® board from 2001-2011. Ms. Humenick passed away on August 27, 2011.

Channel Champions, from cumanagement.org Daily Deposits.

Mon, 29 Aug 2011 01:00:00 CDT

August 29, 2011 This is bonus coverage from Assess Your Delivery Strategies”; in the September issue of Credit Union Management magazine. As credit unions formalize their channel management strategies, even as they create a plan for each channel, they may find that changes within the organization are necessary to support the new plan. Any needed organizational changes identified should be outlined in the plans. For example, employees may need to be reassigned, or retrained or both. Employees will need to become the champions of channels in order to: Sell the channel–if employees are not using the channels, they are less likely to sell”; the channels benefits to members with whom they have contact. Provide service–it is nearly impossible to assist a member with a product or service if the employee has never used it or has not been trained on it. There is growing discussion in the industry about creating a new position: channel manager. This new senior position reports to the CEO or COO, whichever role is responsible for sales and service. The channel manager is responsible for: monitoring market trends and technologies, vendor products and offerings, member behavior; managing contract terms and pricing for various channel offerings; making purchase decisions for channel offerings; managing the metrics dashboard and assisting the business lines in meeting their strategic goals through execution of the channel plans. Terence Roche is a principal and Tim Daley is a senior consultant with Cornerstone Advisors, Inc., a CUES Supplier member and strategic provider based in Scottsdale, Ariz.

NextGen Leaders: Phil Marina, from cumanagement.org Daily Deposits.

Fri, 26 Aug 2011 01:00:00 CDT

August 26, 2011 CUES 2011 Next Top Credit Union Exec challenge applicants all had inspiring, unique and innovative projects. Public voting narrowed the field to six finalists. Learn more about them here. The finalists will present their final presentations—and the Next Top Credit Union Exec will be selected—at CUES CEO/Executive Team Network. But for the next several weeks, we will be checking in with one of the non finalists to see how their project is going and learn a bit more about these next-generation leaders. Phil MarinaService Center ManagerSuncoast Schools Federal Credit UnionTampa, Fla.CUs Facebook page Follow Phil on Twitter Watch Phils Next Top Credit Union Exec entry video Give us the elevator speech about your project (as in how would you describe your project to someone you meet in an elevator?): My idea is to create a loan program designed to help a select number of members who have struggled with their credit as a result of these tough economic times and are ready to get back on their feet. The idea here is to give a select number of members a second chance to prove their credit character. The members chosen for this program must complete a series of three financial seminar sessions (Basic Finances, Understanding Credit and Budget/Planning). Once these educational sessions are completed, the member is eligible to receive financing and establish a lending relationship with the credit union. What is your long-term career goal? My long-term career goal is to work my way up the ranks and ultimately become the president/CEO of a credit union. After retiring, I have aspirations to become a professional golfer or politician. Fill in the dots: The future of credit unions will be bright if ... We can all attract a younger membership base, continue to differentiate our products and services from banks, expand our membership bases, and keep our tax exempt statuses.What my generation brings to the credit union movement is … Energy, technology, confidence, ambitiousness, willingness to succeed and loyalty. People consider me a leader because … I set the standards with accountability for my own actions and words. My commitment to be an example of what the credit union movement and philosophy are all about drives my daily decisions and actions. I believe being a leader is balancing the needs of the organization, employees and the members to the best of my abilities.Who is your hero and why? I happen to have two heroes in my life. These two heroes are my mother and father. Over the years, both of my parents have instilled many of their remarkable traits within me and have guided me into reaching success on many levels. Without them and their guidance and support, I would not be the person I am today. Who is a must-follow on Twitter? Ian Poulter, Rory Mcilory, and Donald Trump.

On Compliance: Birth of a Regulator, from cumanagement.org Daily Deposits.

Thu, 25 Aug 2011 01:00:00 CDT

August 25, 2011 Credit Union Management magazines Web-only On Compliance”; column runs the fourth Thursday of each month. On July 21, the landscape of mortgage compliance changed as the Consumer Financial Protection Bureau went live. The uncertainty of how this new agency will manage the creation and enforcement of mortgage regulations may add yet another factor to concerns mortgage lenders already have about their current compliance burden. (So far the agency has published in the Federal Register a list of the rules it will enforce. All CUs originating mortgages are affected by the consumer lending laws and regulations and also changes in forms and Truth-in-Lending requirements, even though examination supervision will still be performed by NCUA. In a March survey of 425 credit unions, mortgage lenders and banks, 70 percent reported that regulations required by the Dodd-Frank Act, which includes the CFPB, posed a high concern. Respondents to the survey, conducted by Laguna, Calif.-based compliance provider QuestSoft, also cited the Real Estate Settlement Procedures Act and loan officer compensation rules as major concerns. More detailed results are provided in the chart below: **click on image to enlarge Established last year by the Dodd-Frank Act, the CFPB is, according to its own website, an independent bureau within the Federal Reserve System that will help empower consumers with the information they need to make financial decisions that are best for them and their families.”; This means the bureau plays the complementary roles of educator for consumers and enforcer of financial regulations. As a part of enforcing these laws, the bureau will take responsibility for nearly 50 rules and regulations from eight existing agencies. All the rules it takes over are mandated as a part of the Dodd-Frank reforms. The CFPB has boldly stated its plan to be the cop on the beat”; for consumers, which suggests the agency plans to be at least partially adversarial to lenders. This statement along with the shield on the agencys website prompted Frank Keating, American Bankers Association CEO, to say at the ABA Regulatory Compliance Conference in June, If CFPB is the cop on the beat, then who are the criminals?”; Of specific interest to credit unions is the fact that the CFPB will oversee rulemaking, while the National Credit Union Administration will still perform examination supervision. This includes provisions of the Real Estate Settlement Procedures Act and other laws specified in the Dodd-Frank Act, such as the qualified residential mortgage standards that govern such things as down payments. Coming Around Again: RESPA Reform Credit unions, like all mortgage lenders, spent an incredible amount of time and money preparing for the revised RESPA rules that went into effect on Jan. 1, 2010. Just 18 months later, the CFPB, in response a Dodd-Frank provision, is working to consolidate RESPA with the Truth in Lending Act, with the goal of creating one disclosure form consumers can understand. The CFPB has already begun floating proposals for new disclosure forms, which are open for review and comment, and credit unions can follow the process online. Regardless of whether a credit union is reporting to the CFPB, the NCUA or another agency, credit unions will continue to face a complex compliance picture. At the end of the day, the focus is on ensuring that every loan file meets the standards of risk and data integrity demanded by new regulations. Credit unions will find that relying on automated compliance programs, coupled with an internal emphasis on data integrity, will result in fewer headaches – or financial risks – from consumer groups, regulators and investors. Credit unions that make the effort to automate and streamline their compliance processes will be able to offer better products and stronger service to their members. And great member service is the bottom line. Leonard Ryan is president of Laguna Hills, Calif.-based QuestSoft, a provider of automated compliance solutions and geocoding services to the mortgage industry. He can be reached at 800.575.4632, ext. 211, or leonard.ryan@questsoft.com.

Tech Time: Easy, but Secure, Access, from cumanagement.org Daily Deposits.

Wed, 24 Aug 2011 01:00:00 CDT

August 24, 2011Credit Union Management magazines Web-only Tech Time”; column runs the fourth Wednesday of each month.Protection from identity theft may first prompt images of offering members the tools they need to protect themselves. But preventing fraudsters from obtaining or using private information isnt just the job of individuals. Both legally and ethically, credit unions have a responsibility to protect the security, confidentiality, and integrity of customer information.Unfortunately, sometimes protecting data and controlling access to it can get in the way of operational efficiency. However, there are solutions that can make access to member information easy while keeping the data more secure than ever. Pete Kneisler of Redwood City, Calif.-based San Mateo Credit Union, says the CU initially signed up for DigitalPersonas Pro solution to clear an IT bottleneck.Our No. 1 tech support call was for resetting staff passwords,”; says Kneisler, VP/information services and a CUES member. With some 10 different applications demanding differing passwords that required regular changing, hours were being burned resetting the secret codes.To help, executives at the $650 million, 70,000-member credit union reviewed products from two or three companies. They decided that DigitalPersona Pros solution with fingerprint biometrics was the best product for the CU at that point in time.No one can just forget their fingerprints, or leave them at home, or share them with another person, Kneisler points out. And its fast and easy to simply place a finger on a reader.Its a great way to deal with the large number of passwords everybody has now,”; he says. A big plus was the ability to modify the product to cover all the third-party services the credit union uses.Beyond solving password-resetting problems, fingerprint biometrics offers an impressive level of security. When San Mateo CU had its first audit after adding the product, regulators were very happy, Kneisler says. And the credit union is keeping regulators happy as they increasingly stress the importance of keeping information secure. The DigitalPersona solution has evolved and is continuing to do so, Kneisler adds. The credit union has just started the process of adding PINs to make its security multi-factor; it is working with the company to set up the additional data protection.Charlene Komar Storey is a veteran credit union writer based in New Jersey.

Community Involvement, from CUES.org Member News

Tue, 23 Aug 2011 10:13:23 CDT

Point Loma Credit Union, San Diego, will host a book signing to celebrate Hispanic Heritage Month. On Sept. 22, Dr. Maria de la Luz Reyes will visit the CUs San Marcos branch to read from and sign her book Words Were All We Had. The CU has many members for whom Spanish is a first language and serves them with a Spanish language website and bilingual staff in most branches, as well as BALANCE, a free program available in English and Spanish that promotes financial literary and offers financial counseling. The CU has two CUES members.

Community Involvement, from CUES.org Member News

Tue, 23 Aug 2011 10:12:37 CDT

US Federal Credit Union, Burnsville, Minn., joined in celebrating Miracle Treat Day, Aug. 11. A portion of Blizzard sales at local Dairy Queens were donated to Childrens Miracle Network hospitals. The CU has two CUES members.

Community Involvement, from CUES.org Member News

Tue, 23 Aug 2011 10:09:23 CDT

BELCO Community Credit Union, Harrisburg, Pa., raised $780 selling approximately 220 ducks at its Lancaster branches for the Schreiber Pediatric Rehab Center of Lancaster Countys 23rd Annual Rubber Duckie race. More than 23,000 ducks were sold and released. The CU has one CUES member.

Honored, from CUES.org Member News

Tue, 23 Aug 2011 10:08:34 CDT

CFE Federal Credit Union, Lake Mary, Fla., was recognized as one of the top 20 in the Orlando Sentinels Top 100 Companies for Working Families for 2011. The Top 100 Companies were selected by an impartial panel of human resources professionals who based their evaluations on core benefits, family-related benefits, work environment, community involvement, communication, and training. The CU has seven CUES members.

Honored, from CUES.org Member News

Tue, 23 Aug 2011 10:07:45 CDT

Envista Credit Union, Topeka, Kans., was voted Best Credit Union by readers of Capital-Journal. It was the CUs sixth consecutive Best of Topeka award. The CU has one CUES member.

New Position, from CUES.org Member News

Tue, 23 Aug 2011 10:07:04 CDT

Joanne Nadeau is VP/education at Service Credit Union, Portsmouth, N.H. She was previously president/CEO of Seacoast Credit Union, Hampton, N.H., which merged with Service CU.

New Position, from CUES.org Member News

Tue, 23 Aug 2011 10:06:17 CDT

John McGrail, CCUE, former president/CEO of Lions Share Federal Credit Union, Salisbury, N.C., is the new president/CEO of the Carolinas Credit Union Foundation. Mark Curran, previously SVP/business development for Palmetto Cooperative Services, LLC, an item processing CUSO in Columbia, S.C., is the new president/CEO of Lions Share FCU.

New Position, from CUES.org Member News

Tue, 23 Aug 2011 10:05:22 CDT

Edward Lis is the new VP/finance at Fulton County Federal Credit Union, Gloversville, N.Y.

Merger, from CUES.org Member News

Tue, 23 Aug 2011 10:04:37 CDT

Franklin Mint Federal Credit Union, Broomall, Pa., and Sentry Federal Credit Union, Brookhaven, Pa., will officially merge in the fourth quarter of 2011. The name of the combined institution will be Franklin Mint FCU. Franklin Mint FCU has nine CUES members and $700 million in assets. Sentry FCU has $21 million in assets.

Merger, from CUES.org Member News

Tue, 23 Aug 2011 10:03:49 CDT

Apple Federal Credit Union, Fairfax, Va., and Synergy One Federal Credit Union, Manassas, Va., are pleased to announce NCUA approval of a merger to take place in early November. Apple FCU has 2 CUES members and $1.3 billion in assets. Synergy One FCU has $182 million in assets.

Loan Zone: Facebook Skip Tracing, from cumanagement.org Daily Deposits.

Tue, 23 Aug 2011 01:00:00 CDT

August 23, 2011Credit Union Managements Web-only Loan Zone”; runs the fourth Thursday of each month.Social media websites have become the new way to communicate and Facebook seems to be most peoples No. 1 choice. While these social websites help family and friends stay connected, they have also become a useful tool in collections, often times providing a plethora of valuable information! We are a small collections department at Iowa Community Credit Union that consists of, well, me! I have worked collections for over a decade and pride myself on being resourceful. I subscribe to several websites that provide useful information (though, unfortunately, not always the most current information), have a good, information-sharing relationship with many dealers and other local collection agents, and pound the pavement if necessary. However, I was still encountering some accounts that, in spite of using all my resources, I was unable to find, let alone collect. All that changed one day when I decided to see what I could find on social networking sites. I had an individual with an indirect loan who had skipped the state and could not be located. Although the loan was full recourse (meaning the dealership is co-signer so you are guaranteed your money), the dealer was at a loss as to where to begin. I had scoured the Web, done drive-bys, called the borrowers entire reference sheet repeatedly, and still was unable to get a lead. Purely out of curiosity, I decided to search for the member on Facebook. To my surprise, I found her! Unfortunately, most of her information was blocked, but it was a start. Luckily for me, her friends list wasnt blocked, and I was able to locate several of her family members, including her children. I then searched for them on Facebook and was able to find some very helpful information. Her daughters entire page was unblocked, and while her information was not overly useful to me, her posts were full of information about her mom.By going back and reading old posts, I was able to find out her mom, my skip, had indeed left the state, and was living down south. After several months, yes months, I was able to gather enough information through her daughters posts to find out where our borrower was. Coupling the Facebook information with all the other information I had, I was able to find her!In the end, I made contact with the member and set up payment arrangements. As of today, this once-six-months-past-due loan is current!After my success of finding a skip on Facebook, I decided to try Facebook in my charge-off collecting. Since Facebook is a tool to keep people informed, many people like to share what they are doing, and that includes where they are living, who they live with, and their current employer. Some even share phone numbers and email addresses! I have been able to contact quite a number of members and establish payment arrangements. I have also had success in garnishing several peoples wages because they listed their employer.Facebook has been instrumental in helping me both collect and skip trace. The information I find online can easily be combined with information provided from other skip tracing websites. I use it most often in connection with Accurint/Lexis Nexus, which has a minimum fee of $150/month. Accurint can be a fantastic skip-tracing tool, as long as the information Accurint provides is current. Using Accurints additional relative”; search can provide clues to the whereabouts of your member. Relatives, as well as being a good source to contact, can be a good starting place on Facebook. I have also used Facebook in conjunction with Pipl. Facebook is used world wide, and often more than one person has the name you are searching for. Pipl.com can narrow your search by location and often finds your specific member. It even offers your skips Facebook page, provided the member has one. Pipl.com offers a plethora of information, and its free!I have had similar success using LinkedIn with Facebook. The more information you can collect, the better chance you have of finding your member.Recently I attended a collections seminar that touched on using Facebook as a collection tool. The suggestion was to friend”; the member, get your information, and then defriend”; them. I have found you dont need to do that to gain information. There is a wealth of information you can obtain through Facebook without friending. To ensure privacy, our IT department created an account on Facebook for branch offices to use when identifying overdraft accounts that need collecting as well as in skip tracing. One caveat to remember. Collecting on Facebook is not allowed. However, sending a message to verify someones identity is perfectly legal. Overall, Facebook has become an essential tool I use in skip-tracing and collecting. Be smart. Be creative. If you combine the data you already know with information you locate on Facebook, I know you can achieve results similar to ours. As we know, patience and perseverance are attributes required to be successful at collections. Remember, Rome wasnt built in a day. Good luck and happy Facebooking!Hillary Elling is Covenant branch manager as well as the account recovery manager for $77 million Iowa Community Credit Union, based in Cedar Falls, Iowa.

iPads Ideal, from cumanagement.org Daily Deposits.

Mon, 22 Aug 2011 01:00:00 CDT

August 22, 2011This is bonus coverage from Embracing the iPad”; from the September 2011 issue of CUES Credit Union Management magazine.At $741 million Los Angeles Police Federal Credit Union, President/CEO G. Michael Mike”; Padgetts enthusiasm for the iPad hasnt stopped at bringing them into the board room. The CUES member also saw the devices as ideal for in-branch demos of the CUs online banking program. Not only can they do the job, iPads are easy for staff members to bring to members standing in line and the devices high profile makes members more interested in checking out the program. Theres a certain amount of novelty,”; says VP/Marketing Manny Padilla Jr., also a CUES member. Check out this automated, narrated version of the demo. In the branch, staff members can manually manipulate the pages”; of the demo, and spend as much time as needed explaining a given feature. We are presently working on a similar presentation that will showcase our mortgage programs,”; Padilla says.Charlene Komar Storey is a veteran CU writer based in New Jersey.

NextGen Leaders: Sean Flynn, from cumanagement.org Daily Deposits.

Fri, 19 Aug 2011 01:00:00 CDT

August 19, 2011 The 2011 CUES Next Top Credit Union Exec challenge applicants all had inspiring, unique and innovative projects. Public voting narrowed the field to six finalists. Learn more about them here. The finalists will present their final presentations—and the Next Top Credit Union Exec will be selected—at CUES CEO/Executive Team Network. But for the next several weeks, we will be checking in with one of the non finalists to see how their project is going and learn a bit more about these next-generation leaders. Sean FlynnManager/Indirect LendingService Credit Union Portsmouth, N.H.CUs Facebook pageCUs Twitter pageCUs YouTube channelFollow Sean on TwitterWatch Seans Next Top Credit Union Exec entry video Give us the elevator speech about your project: The project my team and I have been working on is all about maximizing product exposure to members acquired through indirect lending. All too often, financial institutions (including credit unions) have this one and done”; relationship with indirect members. My team and I are trying to break away from that by promoting additional products and services that we ourselves believe in. Our credit unions products have so much more value and our services are so much more convenient than those of todays corporate banks. Were really trying to relay that message by showing our new members how much they can save in both time and money by switching to Service Credit Union. What is your long-term career goal? I want to be a great leader some day. Whether it means leading a team of 7, 700 or even 7,000, regardless of how many people I work with, I want to have an impact on their lives and the lives of our members. I have learned so much along the way from so many great people, I just want to pay that forward. Fill in the dots: The future of credit unions will be bright if ... We continue to do what we do best – help people. And I mean that internally as well as externally; employees as well as members. The minute we start adopting fee schedules or policies like the big banks or start forgetting why we exist in the first place, we lose our identity. As long as we stay true to our roots, the skys the limit. What my generation brings to the credit union movement is … A future. Our generation is going to be the one that will usher the credit union movement into a new era. And its happening right now before our eyes. With the rate at which information travels today through the Internet, social media and mobile devices, credit unions will have to stay ahead of the curve to remain competitive. Most of us in this generation have been working with computers and the Internet from a very young age. Were a group of tech-savvy problem-solvers and we challenge the status quo. I think were going to bring a lot of exciting products, services and strategies that the industry has never seen before. Were going to have fun with this. People consider me a leader because … I support the team philosophy and encourage critical thinking. Without the talented team I have around me, Im not as valuable to my organization. Also, I hate the mentality of we do this because its the way its always been done.”; My team is always encouraged to present their ideas and respectfully voice their opinions because as a manager, I dont always have the time to work on the front line and analyze what we could do better. I empower my team to think logically and do what makes sense. Some of the greatest ideas are stumbled upon by mistake, and a lot of great ideas have been lost because someone was too afraid to take a risk and speak up. I dont want to be the guy who said no to the next Google. Who is your hero and why? I have two: my mom and my dad. I grew up in a family of entrepreneurs who started two small businesses from nothing. 20 years later, Ive experienced what it truly means to struggle and I have seen the personal sacrifices made to ensure my younger brother and I had a roof over our head, clothes on our back, and food on the table. They both put years of blood, sweat and tears into their respective businesses; all for less salary than they would have made working for someone else. They succeeded with help from their local credit union. When many banks said no thanks,”; their credit union took a chance on their ideas. Like most of our working-class credit union members, my parents did it all in pursuit of the American dream. They stared into the unknown and said bring it on.”; Who is a must-follow on Twitter? @cookeoncus For business, Sarah Snell Cooke from Credit Union Times. I had the pleasure of meeting her at the CU Direct Lending Redefined conference in May. Shes real sharp and always tweets the latest scoop. @ochocinco For fun, Id have to say my new favorite New England Patriot, Chad Ochocinco. The guy is a crazy self-promoter and never ceases to amaze me with his tweets.

Community Involvement, from CUES.org Member News

Thu, 18 Aug 2011 12:56:06 CDT

Highmark Federal Credit Union partners with the Salvation Army in their “Tools for Schools” Campaign.. August 2, 2011 Every year, the local Salvation Army helps thousands of children in the Rapid City area and throughout the nation by providing them with necessary school supplies. Many children in the Rapid City area would not have the basic tools and school supplies with which to start school if it weren't for the Tools for Schools campaign. Highmark Federal Credit Union offices are drop off locations for this school supply drive. “Items as simple as pencils, pens, rulers, spiral notebooks, erasers, glue, crayons, theme paper, 2-pocket folders, and backpacks, can provide these children with the means to learn,” explains Mark Kirkeby, Development Director for the Salvation Army. “In fact, it is amazing how much good one can do, if they purchase a single packet of pencils or 2-pocket folders, and donate it for this program.” John Carlson, President of Highmark Federal Credit Union, agrees and is pleased with Highmarks opportunity to contribute to this worthwhile program and adds, “We live in a community where generosity abounds and people are accustomed to helping families in need. Highmark is delighted to be part of this outreach - to help children start school with basic and necessary supplies.” That is why Highmark is providing drop-off receptacles for any new school supplies at their Rapid City and Custer locations. In Rapid City, stop by their main office at 725 5th Street or in Custer at 602 Mt. Rushmore Road. Highmark is encouraging their staff, members, and the community to get involved in donating a few basic items to the Tools for Schools Program. School Supplies can be donated at either of these locations throughout the month of August. Please contact Mark Kirkeby, Salvation Army at 605-791-4045 or Dawn Laskowski, Highmark Federal Credit Union at 605-716-4444, ext. 154 for additional information

Inside Marketing: Upping Your Credit Union Savvy, from cumanagement.org Daily Deposits.

Thu, 18 Aug 2011 02:30:00 CDT

Aug. 18, 2011 Credit Union Managements Web-only Inside Marketing”; column runs the third Thursday of every month. During the past few years credit unions have had a prime opportunity to gain market share on their bigger banker foes. Because of numerous missteps by the banking industry, credit unions have been looking quite rosy – not that they havent ever looked un-rosy, but their glow has turned into a beacon brighter than a super nova for consumers looking for a fair shake at managing their funds. Credit unions are riding to the rescue on their white horses clamoring for consumers to look their way. Is it working?A little bit.Credit unions have indeed gained some market share the last couple of years, but nowhere near industry expectations – a slight 2.6 percent year-over-year to 91.1 million members since 2006. As slight as it is, it's the third consecutive quarter that the membership growth rate has increased (Member Growth Edges Up Q2 2011: Callahan & Associates). Thats good news, but, again, its not a number that sets off the wow factor.Whats the reason for this modest gain? Who knows? Perhaps its as simple as not enough people knowing about credit unions as a viable PFI option. If thats the case, are credit unions: Not getting the right message out there? Not in the right communication channels? Too complacent? Satisfied with the status quo? Maybe its a couple of these. Maybe its a few. Or maybe its all of the above.In any event, it seems to be on marketings shoulders to get the word out to enhance credit unions exposure. So if youre looking for new marketing ideas, objectives and strategies to enhance your exposure and educate consumers on the many benefits your credit union has to offer -- to exceed those growth expectations -- check out the new credit union marketing book, Credit Union Savvy.Credit Union Savvy, written by Third Degree Advertisings CEO Roy Page, is more of a resource than just a quick weekend read. It is a 131-page compilation of the firms blog posts, white papers and in-depth articles providing credit unions with practical, educational and expert advice on reeling in members to your credit unions – and keeping them there. It can be digested in a day, but you will find yourself picking it up time and time again referring back to those sure-to-be dog-eared and highlighted pages.What to do With Social Media? One of the biggest credit union marketing issues right now is social media. It seems to be a lightning rod of pros and cons for this industry. Many think its the answer to their communications dreams while others see it as a total time suck and a huge image risk. Page looks at both sides of the aisle and begins by providing a piece of practical information that harkens us all back to Marketing 101--uh, have a plan. Before you embark on any marketing campaign, you must have a plan. Social media is nothing different.Sure it can pay awesome dividends in creating and nurturing member relationships with your credit union like no other marketing strategy before. But if thats not where your members are, youll be tweeting and YouTubing with the crickets. So Pages advice is to do your research, create a plan and execute consistently. But he warns that social media takes time and you must have the resources to commit to this endeavor if it is to pay off.Again, it all depends on your credit unions membership location.”; If theyre on Facebook, listen and create a Facebook page and converse. If theyre posting and viewing YouTube videos, create a YouTube channel where everybody can show off. If theyre on LinkedIn swapping resumes, create a LinkedIn page and create some helpful groups on finances. If theyre at the corner coffee shop discussing the economy, then take your iPad or notepad down there and talk to them.Boomers, Gen X, Gen Y – oh My! One of the more intriguing sections I enjoyed covered cross-generational marketing efforts. Credit unions today are juggling many generations to vie for their attention. Its a pickle. Most credit unions have a bustling baby boomer population (est. 80 million) with a much smaller Gen X sector (est. 67 million) on its heels. But the Holy Grail demographic, Gen Y (est. 100 million), looms on the horizon as everybodys magic bullet for success in the foreseeable future. How to lure them has been the topic of numerous industry articles and op/eds.There are a good number of credit unions today that have the daunting task marketing to each group – where technology services play a crucial factor. Boomers still enjoy walking into a branch for in-person services, whereas Gen Y just wants to do it all on their iPhone: customer service vs. self-serve. But, surprisingly, Page reveals that boomers are not totally averse to online services, as he addresses how to capitalize on each generations differences in such chapters as: Purchasing Power, The Earnings Bell Curve, The Generational Wave, and more.Credit Union Savvy even targets womens financial prowess (Chapter 17 – Women: Credit Unions Most Influential Members), saying that women are the real CFOs in and away from home. According to the book, women control 80 percent of the buying power in the U.S. They deal with 75 percent of family finances – even influencing 53 percent of family investment decisions. Women also handle 89 percent of checking accounts. So its no surprise that some credit unions recent marketing campaigns are targeting women: Ft. Worth Community Credit Unions Gabby”; and Verity Credit Unions Verity Moms”; are a couple of the more popular efforts.Planting the Credit Union Benefit Seed via Education Another section that should resonate well for credit unions is Financial Literacy. This sections chapters -- Grow Your Membership Through Financial Literacy”; and Teens and Money: How to Secure Your Credit Unions Future by Securing Theirs”; -- is a must read on credit unions providing their members with educational advice on finances to build trust and ensure your financial institution is a primary resource for any financial need. Page adds that bringing in boomer parents to your credit union with their Gen Y kids to provide financial advice is a good way to plant the credit union benefit seed for future members.Other notable sections include: Internal Culture and Communications (Everything I Need to Know About Internal Communications I Learned in Kindergarten”; is fantastic), Creative Messaging, and Everyday Life Insights. The book even covers such hot topics as payday lending and high yield checking.Loads of great advice in this book await any credit union marketer. (Probably 75 percent of the pages are dog-eared and highlighted in my copy.) So if youre looking to increase market share, target a specific demographic -- or multiple generations, solidify relationships with established members, plant the seed for future ones, enhance your internal communications, or simply work better with the media, check out this book. It is sure to up your Credit Union Savvy -- and hopefully help you exceed those growth expectations.Mike Lawson, principal of the PR/marketing firm DML Communications, has two decades of journalism, public relations and marketing experience. His unique and robust knowledge allows him to meet the varied needs of editors, end-users and clients. Lawson's expertise enables him to enhance his clients' market exposure through media relations, social media tools, advertising efforts, target marketing strategies and more. He also speaks on PR, marketing and media issues to audiences nationwide. For more info, visit www.dmlcommunications.com.

Insurance Matters: Your Agent, from cumanagement.org Daily Deposits.

Wed, 17 Aug 2011 01:00:00 CDT

August 17, 2011Credit Union Management magazines Web-only Insurance Matters”; column runs the third Wednesday of each month.The most important part of the insurance transaction is the relationship insurance buyers have with their insurance agent. Having the right agent is critical to a successful insurance program. There has to be trust and respect between the two parties. In fact, your credit unions relationship with your agent has to be as trusting as the relationship you have with your lawyer or accountant.Types of AgentsInsurance agents can be either employees of the insurance company for whom they sell (called direct writers), or local, independent business people. Independent agents usually represent more than one insurance company. While each type of agent will say that approach is best, I find both independent agents and direct writers have a place in the market.Many credit unions do business with direct writer CUNA Mutual Group (a CUES Supplier member based in Madison, Wis.) The direct-writing agent represents and promotes only that single insurer. The upside of direct writers is the deep knowledge they have of the insurers products, services and value. An additional benefit of working with CUNA Mutual is the special knowledge that a credit union specialist can offer.Working with a local independent insurance agent also is an option for many credit unions. Having access to many insurers is the independent agents advantage. An independent agent can quote your insurance with Travelers, Zurich and FinSecure, for example. The agent can review the offers by each insurer and recommend the carrier that best meets your needs. Disadvantage? The independent insurance agent cannot quote direct writing insurers like CUNA Mutual.Whats Best for Your Credit UnionFrankly, CUNA Mutual has the advantage over most local agents in industry knowledge. There may also be independent agencies that have built credit union specialty practices.When working locally, remember that no two independent agencies have the same abilities or resources. No two agents have the same level of knowledge and expertise. Many local independent agents will have no experience with credit unions. They may have to rely upon the expertise of the insurance company. You may find that the answer to any question you ask your agent is, Let me get back to you on that.”;On the other hand, direct writing agents often struggle to help customers in claim disputes and coverage disagreements. As the direct agent works for the insurer, they often have little say in claim decisions. Independent agents can often act as a go-between or mediator.Some credit unions use several agents to "spread the wealth." I've worked with financial institutions where the property insurance is handled by one agent, auto by another, and directors' & officers' insurance by another. Consider this strategy carefully. You may be opening yourself up to misunderstandings in terms of exposure and coverage. In such a setup, one agent may not know what coverage the other agents are providing. If you are going to work with multiple agents, consider building a list of coverages of all your policies. Share the list with all your agents so each knows what the others are doing.Its my recommendation that a credit union use a single insurance agent to handle all its property and casualty insurance needs.Here are some questions to ask as you review your agent's services: Who will manage your account on a daily basis? How long have the producer and service people been in the insurance business? Will the agent provide advice on all aspects of bank insurance? Does the agency have special expertise in financial institutions? How are claims handled? Does the agency have a claims department? Will one person in the agency oversee claim incident reports? Who will provide help preventing losses—the agent, the insurer or both? Scott Simmonds is the unbiased insurance guy, consulting on, but never selling, insurance. He welcomes questions from readers, and will attempt to answer as many as possible in future columns. E-mail him mailto:Scott@ScottSimmonds.com for a copy of his white paper, Questions Credit Unions Should Ask About Their Insurance.”;

Community Involvement, from CUES.org Member News

Tue, 16 Aug 2011 11:58:57 CDT

South Bay Credit Union, Redondo Beach, Calif., hosted a free community shred day Aug. 13. The CU has one CUES member.

Community Involvement, from CUES.org Member News

Tue, 16 Aug 2011 11:58:12 CDT

Consumers Credit Union, Oshtemo, Mich., is hosting a free community secure document shredding event in an effort to curtail identity theft and promote recycling. The shredding will take place Aug. 22-27 at a new branch, and is open to the public. The CU has four CUES members.

Community Involvement, from CUES.org Member News

Tue, 16 Aug 2011 11:57:26 CDT

US Federal Credit Unions semi-annual blood drive resulted in 30 donations, which can help save up to 90 lives. The Burnsville, Minn., CU has two CUES members.

Anniversary, from CUES.org Member News

Tue, 16 Aug 2011 11:56:42 CDT

DATCU, Denton, Texas, is celebrating its 75th anniversary this year. The CU started in 1936 with $650 and now has $550 million in assets. The CU has five CUES members.

New Position, from CUES.org Member News

Tue, 16 Aug 2011 11:55:44 CDT

Gregory Flowers, CSE, is the new SVP/credit union development at Partners 1st Federal Credit Union, Fort Wayne, Ind. He was previously chief operations officer at Associated CU of Texas, League City, Texas.

Obituary, from CUES.org Member News

Tue, 16 Aug 2011 11:54:53 CDT

Patricia Longoria Garcia, executive vice president of Peoples Trust Federal Credit Union, Houston, and CEO of Signal Hill Financial, passed away peacefully in her home, last Friday, after a lengthy and courageous battle with cancer.

Merchant-Funded Rewards Programs, from cumanagement.org Daily Deposits.

Mon, 15 Aug 2011 01:00:00 CDT

August 15, 2011 In the wake of a weaker economy and the recent passing of revenue-squeezing regulations, financial institutions should jettison their traditional payment card-based rewards programs in favor of merchant-funded rewards that reduce costs, generate revenue, and build customer loyalty, based on new research from Javelin Strategy & Research, San Francisco. Javelins report, Evolving Rewards Strategies: How Merchant-Funded Programs Will Usher in a New Era of Loyalty for FIs,”; based on data from three surveys combining responses from more than 15,000 consumers, examines todays changing payments and rewards environments, presents the key strategic ways merchant-funded rewards programs can be a win-win for both financial institutions and merchants, and recommends how financial institutions should evaluate, implement and promote these programs. With decreased consumer discretionary spending, financial institutions face revenue reductions that are only compounded by new revenue-restricting regulations. Javelin predicts that Durbin and Regulation E together will create up to a $16.4 billion loss of annual revenue for debit card issuers. To circumvent these losses, financial institutions should reassess their existing rewards models and implement merchant-funded rewards programs, in which merchants profit by picking up a large portion of program expenses, and financial institutions are able to provide more targeted rewards to their customers. Consumers love rewards – almost two-thirds of consumers say that rewards drive their payment choice,”; says Beth Robertson, director of payments research at Javelin. But financial institutions dont have to accept the status quo of traditional rewards programs. They can offer customers a richer reward experience that satisfies their customers, while enabling delivery of more cost-effective programs.”; Merchants also come out ahead when partnering with financial institutions by gaining access to transactional data. Gaining a wealth of critical consumer purchasing information through their rewards program relationships with banks, merchants can promote effective marketing campaigns to targeted consumers through multiple channels, including mobile delivery of rewards offers. Look at the exploding popularity of the Groupon and LivingSocial daily deal sites,”; notes Javelin researcher Aleia Van Dyke. With access to consumer transactional data, such as demographics, location, purchasing behaviors and retail history, merchants will be able to customize their offers to appeal to specific consumer groups, rather than flood the market with generic offers. Merchant-funded rewards programs are a win-win for financial institutions and merchants, as merchants gain markets, and financial institutions reduce their costs.”;

NextGen Leaders: Jay Hansen, from cumanagement.org Daily Deposits.

Fri, 12 Aug 2011 01:15:00 CDT

Aug. 12, 2011Meet CUES 2011 Next Top Credit Union Exec regional finalists! We have six amazingly talented candidates who, from now until the end of October, will keep everyone updated on their progress on the Next Top Credit Union Exec blog. Then theyll present their projects at CUES CEO/Executive Team Network, where a panel of judges, the live audience and the online public will vote for their favorite. Follow the progress here. Jay HansenFinancial EducatorBECU SeattleCUs Facebook page CUs Twitter page CUs Yelp page CUs YouTube channel Follow Jay on the Next Top Credit Union Exec challengeGive us the elevator speech about your project (as in how would you describe your project to someone you meet in an elevator?):My project focused on expanding the delivery of financial education by adding webinars to our delivery channel. Webinars are online-live seminars where members can log onto their computer and attend the seminar. Webinars allow members to interact with the educator, engage with the material and receive valuable financial tools. What this means to the member is convenience, giving them more opportunities and easier access to receive sound financial teaching. What this means to the credit union is efficiency allowing us to be in more places, engaging more people without overexerting our resources. What is your long-term career goal? Years down the road, when I am retire, my hope is that I will be able to look back on my career and say that I was a Pillar for the credit union industry and movement. Where my words, ideas and actions provided the needed inspiration and drive for our industry to thrive. Fill in the dots: The future of credit unions will be bright if...We continue to allow our philosophy of people helping people to drive our movement. We continue to find creative ways to meet our members wants and needs. We continue to invite the world to join our movement. What my generation brings to the credit union movement is …My generation offers relevance to the ever-changing culture of our nations. Since we are a part of this generation, we understand this generation, in turn, we know how to reach this generation. What starts out as understanding, grows into strategy, then blossoms into innovation and the progression of our movement. People consider me a leader because… Of my strengths and actions. My empathy for people gives me a willingness to understand others. My communication allows me to convey a message so others can understand. My creativity enables me to find ways to break through barriers. Beyond strengths, people consider me a leader because I lead with my actions. Who is your hero and why? My parents are my heroes. Over the course of my life, I have continually witnessed my parents demonstrate amazing qualities that will ever stay with me. My Mom exudes unconditional love and sacrifice. My Dad encompasses perseverance with a purpose. I am truly grateful for both of them. Who is a must-follow on Twitter? BECU and CUES View all the 2011 CUES Next Top Credit Union Exec finalists profiles: Josh McAfee Christopher Byrd Alexia Mavrakes Devin Selte Amanda Thomas

CFO Focus: Review Borrowers Finances, from cumanagement.org Daily Deposits.

Thu, 11 Aug 2011 01:00:00 CDT

August 11, 2011 Credit Union Management magazines Web-only CFO Focus”; column runs the second Thursday of each month.The credit union industry has been able to hold its head up during the recession, despite the troubles experienced by financial institutions in general. While banks have been in the hot seat, consumers have been shifting deposits to credit unions to avoid higher bank fees and enjoy credit union membership and services. Yet, CU executives know they must be ever vigilant when it comes to the perceptions of their institutions held by lawmakers, regulators and consumers. This is especially true due to the increased number of restructured and modified debt now held by financial institutions.The latest accounting news affecting CUs involves increased guidance (Accounting Standards Update (ASU) No. 2011-02 by the Financial Accounting Standards Board) over what constitutes a troubled debt restructuring. The new rules were instituted to address certain inconsistencies in practice among financial institutions in light of the increase in the volume of restructured and modified debt. When the rules are implemented in 2012, they could increase the number of loan modifications classified as TDRs and significantly impact CU financial statements.Transparency and accuracy are the best ways to prevent misperceptions about financial statements. In this light, its essential for CU accounting and lending departments to examine loan restructurings and modifications and identify those that will qualify as TDRs in 2012.The National Credit Union Administration mandates that CUs track TDRs and report them as delinquent. In addition, Under Generally Accepted Accounting Principles, TDRs are considered to be impaired loans in financial statements. Under GAAP, impaired loans are to be included and separately reserved for in allowance for loan and lease loss calculations. As a result of the new rules, quarterly call reports may now show larger amounts of reportable loan delinquencies. CUs also may need to increase the total amount of reserves in the ALLL calculation to reflect the additional impaired TDR loans. The Accounting Standards Update (ASU) No. 2011-02, Receivables (Topic 310): A Creditors Determination of Whether a Restructuring Is a Troubled Debt Restructuring, is effective for CUs for annual periods ending on or after Dec. 15, 2012 (CUs with fiscal years ending Dec. 31 should apply the rules in the new standard beginning Jan. 1, 2012).Under the new standard, a restructuring is considered to be a TDR if a borrower is experiencing financial difficulty and is granted a concession by the CU. The definition of a TDR was not changed under this new standard. Rather, the standard clarified what constitutes a financial difficulty”; and a concession.”; To determine financial difficulty, CU managers should evaluate the financial conditions of selected borrowers beyond the association with the CU. Managers will most likely need to review the borrowers current credit report, financial statements and records, and forecast future financial conditions of the borrower. The new accounting standard clarifies the conditions that indicate a borrowers financial difficulty and will help CU managers specify their objectives for these financial reviews. Conditions include, but are not limited to, a declared or ensuing declaration of bankruptcy, delinquencies either inside or outside the CU, substantial doubt regarding the future of the business, delisting or potential delisting of securities from an exchange, poor cash-flow forecasts, and the inability to obtain funds from other sources. Regarding debt concessions, when examining loan restructurings and modifications, CU managers will need to evaluate factors including payment delays and market rates for loan modifications. Market rates have been covered in Credit Union Management magazines online On Compliance”; column, July 14, 2011. When considering the effect of payment delays on TDR status, it is important to note that delays do not always constitute a TDR. If the amount of the restructured payments subject to the delay is insignificant relative to the unpaid debt principal or collateral and the shortfall in the contractual amount due is insignificant, the payment delay is not a factor in a TDR. The same is true if a delay in timing of the restructured payment period is insignificant relative to the frequency of payments due, the debts original maturity or its original duration.CUs should also consider the cumulative effect of any past restructurings in TDR designations. Past restructurings once deemed insignificant may add up and now be required to be reported as a TDR under the new accounting standard.One significant change as a result of this standard is a CU can no longer use the effective interest rate test in determining whether a restructuring constitutes a TDR. Therefore, any CU that has used this test in the past in its determination that a restructuring did not constitute a TDR, will no longer be able to do so.Going forward, CU executives should re-evaluate their lending policies to factor in the new TDR conditions and any impact on their financial statements, call reports and ALLL calculations. While it is not possible to cover all TDR conditions in this article, keep this test in mind: When a restructuring walks”; and talks”; like a wobbly duck, you are looking at a TDR. Bryan W. Mogensen, CPA, is an assurance partner in the Phoenix office of Clifton Gunderson LLP, and leader of the firms credit union practice and the Southwest Client Service Center credit union and credit union employee benefit plan practice. He is a member of the American Institute of CPAs, American Society of CPAs, and is actively involved with the Valley of the Sun Chapter for Credit Unions. He serves on the AICPA National Credit Union Conference Planning Committee.

NextGen Know-How: Exceptional Corporate Cultures, from cumanagement.org Daily Deposits.

Wed, 10 Aug 2011 01:00:00 CDT

August 10, 2011Editors note: Credit Union Managements online-only NextGen Know-How”; column runs the second Wednesday of the month.Recently I experienced yet another customer service issue when I left some clothing in a New York hotel while visiting my family. Although I called within two hours of checking out of the hotel, I was told the clothes couldn't be found. A few days later, when I spoke with the hotel's general manager and asked if he spoke with the housekeeper, he said she no longer worked there. "We found she was stealing from our guests," the manager said. Huh. As the general manager, what would you have done in this situation? This manager quoted the hotel's corporate policy, stating, "We are not responsible for items left in our hotel." Who wants to hear that? Needless to say, the hotel lost a customer. Unfortunately a negative customer service experience is more the norm than the exception in many companies. To stand out in the market, you can't just have good member service; you must have exceptional member service. As author Jim Collins says, "Good is the enemy of great." Studies show that the corporate culture of the organization has a lot to do with what kind of service your customers will receive. This article highlights Zappos, a company with one of the best corporate cultures in the world. I hope you gain some ideas on enriching your corporate culture from the practices of Zappos.Zappos is an online shoe retailer whose one mission is to provide the best customer service possible. They call this their "Wow" philosophy, and it goes beyond the customer. Zappos has been recognized as having one of the best corporate cultures in the world. Zappos CEO Tony Hsieh believes if you get the culture right, most other stuff like delivering great customer service, will happen naturally on its own. In less than 10 years, the company has grown from no sales to $1 billion in gross sales. The No. 1 driver of that growth has been repeat customers and word of mouth. So what can you learn from a company that pays salaries below market rate? How do they create such an exceptional culture? Here are a few of the things that make the Zappos culture unique: Management makes sure everyone understands the vision of having Zappos be synonymous with the very best customer service. The company has 10 core values (view the list here) that all employees know and believe. This is not just rhetoric. Videos of employees bringing the core values to life can be found on YouTube, and Zappos even published a Culture Book with over 450 pages of employee ideas about the culture. They go above and beyond. For example, if a customer is looking for a specific shoe, and it is out of stock at Zappos, the employee searches competitor sites and directs the customer to the competitor. Zappos loses this sale, but gains customer loyalty. Zappos hires for cultural fit. When interviewing, the retailer looks for people who are passionate about customer service, not necessarily about shoes. Hsieh himself admits to only owning 10 pairs of shoes. Zappos doesn't hire on skills alone. Employees use social media to build relationships with co-workers and employees. Over 400 Zappos employees are on Twitter, and the company encourages it to build customer and co-worker relationships. Most employee posts are not even about the business. Zappos practices what it preaches. "Create Fun and a Little Weirdness" and "Deliver Wow Service" are just two of the 10 core values. Zappos has fired employees who didn't practice the core values, even if they were doing their job function. In fact, the core values are 50 percent of the performance evaluation. Call center statistics are not measured. Employees are encouraged to form relationships with customers and not to get them off the phone. There are no scripts. Employees have the authority to make decisions. One call center representative sent a customer flowers after she mentioned she just found out she had cancer. Each call center employee is expected to send a dozen personal notes to customers a day. All new employees, from executives down, go through five weeks of training which includes answering customer calls and learning the shipping process in the company plant. Zappos pays new employees to quit. At the end of the orientation program, new employees are offered $2,000 plus training expenses to quit. Zappos wants to make sure those who remain are whole-heartedly committed to the company. Managers are required to spend 10 to 20 percent of their time goofing off with the people they manage. Managers are even encouraged to hang out with employees outside the office. Think about your credit union culture for a moment. Where can you build more enthusiasm and loyalty? Make a commitment right now to have this conversation around the management table. A corporate culture needs to be envisioned and nurtured. Start today and watch your credit union grow from good to great. Laurie J. Maddalena, MBA, CPCC, PHR, is a certified executive coach, consultant and founder of Envision Excellence, LLC, Rockville, Md. She was also an HR executive at a $450 million credit union. Contact her at 240.605.7940 or lmaddalena@envisionexcellence.net.

Teaching Smart Money Management: How Relevant is Your Financial Literacy Program?, from cumanagement.org Daily Deposits.

Tue, 09 Aug 2011 01:00:00 CDT

August 9, 2011 At this point, we all know the importance of financial literacy. Members need it, whether they realize it or not, and no one is in a better position to provide it than your credit union. One credit union that is having success reaching out to members about the importance of financial literacy is of $912 million Jeanne DArc Credit Union, Lowell, Mass. In fact, Anne-Marie Bisson, AVP/community education at the CU, was named the 2011 Outstanding State Delegate at the recent National Youth Involvement Board Annual Conference. Bisson is a 21-year veteran of the CU and oversees the development and operations of the credit unions high-school branches as well as all aspects of the credit unions community education efforts. So, how is this 57,000-member credit union getting the word out to their members?The hardest thing is getting members interested,”; Bisson concedes. Traditional workshops still work—up to a point. We hold them throughout the year, but you need to find topics that are relevant to the times.”;Workshops That Work While credit workshops still draw some members, many people think they already know everything there is to know about credit. A more successful workshop, available to members in November, is called Trimming the Holidays. Financially, its a difficult time of year, and many people go into debt. Rather than talk about budgeting for the holidays, Bisson takes an approach that is more emotional. The credit union starts by asking attendees what they remember about last years holiday. Thats a revealing question and the answers are consistent. Time after time, the first thing that comes to mind is the wonderful holiday memories of being together with family. The next memory? The stress of it all. Whats great about this approach is that members are essentially coming to the conclusion themselves—no one is spoon-feeding the information to them. At that point, theyre ready to hear the credit unions advice (instead of making a list and then deciding what to buy for everyone on it, start with a budget first—and stick to it). Last year, Bisson had two children show up at the workshop. Both could not remember the gifts they received last Christmas—which really brought the message home to parents. Relevant workshops, such as Trimming the Holidays, usually contain the same message youll find in traditional workshops, but because the topic is timely and it applies to what consumers are dealing with then and there, the No. 1 barrier to financial education—member interest—is bypassed. Essentially, its the presentation that makes all the difference. On a similar note, many people are allergic to the word budget.”; Call it a spending plan, though, and suddenly thoughts of spending money (and who doesnt enjoy that?) pique peoples interest. Jeanne DArc CU recently held a class for moms in their early 20s. These young mothers saw no need for a relationship with a financial institution. By approaching the topic in a way these members could relate to—the benefits of saving with the credit union—three of the 10 participants emailed the credit union the following day in response to the workshop. Reaching Teens Being relevant is important across the board, Bisson says. Dont go on Facebook just to be there,”; she cautions. Teens are smart, and theyre not going to be interested. You need to put some thought into what youre giving them.”; Financial literacy in high schools comes in the form of in-school branches, reality fairs and classes. Bisson approaches these programs too from a relevance perspective. Before launching the credit-building MoneyStrong program, for example, she had students at the high schools Jeanne DArc CU is affiliated with share their thoughts on whats important to them, where they like to hang out, etc. As a result, when a local artist painted murals in each school, each drawing was a unique representation of what that school was all about. This was something students could relate to and it helped build a comfort level among students. Later, the MoneyStrong website was based on these murals as well. While Jeanne DArc CU was actively pursuing financial literacy opportunities long before it was in vogue to do so, there are resources available today—at no cost—that make financial literacy accessible for even the smallest credit unions. Often, credit union tellers, loan officers and other credit union staffers are happy to volunteer for financial education programs. While it may be difficult to find a tangible ROI resulting from financial literacy efforts, the benefits of a relevant financial education program are clear. Relevant financial literacy programs yield strong member relationships, excellent word of mouth marketing, and a reputation of having a solid commitment to the community.What is it doing for Jeanne DArc CU? Well, at a time when credit unions are trying to bring in a younger membership, and the average age of members at many credit unions is climbing, the average age of membership at Jeanne DArc has declined over the years. To me, that says it all. Keep it relevant to YOUR members and youll have a better chance of seeing the results youre after.Laura Enock is CEO of CUVA and publisher of www.CUcontent.com, a social media, website and newsletter content service for credit unions. Sign up to receive free marketing content every week at www.CUcontent.com.

Supplier Member News, from CUES.org Member News

Mon, 08 Aug 2011 09:52:52 CDT

Alaska Option Services Corporation, Anchorage, a full-service ATM/POS debit network, announced it is expanding its product offerings to include pass-through credit and debit signature processing services. The new pass-through credit and debit signature processing may be used as stand-alone solutions or can be bundled with Alaska Options full-service ATM/POS debit network services.

Community Involvement, from CUES.org Member News

Mon, 08 Aug 2011 09:52:05 CDT

Bay Federal Credit Union, Capitola, Calif., employees have raised $24,451 to help defer the hospitalization and health care costs of local children through the Childrens Miracle Network. CU employees participated in a full month of fundraisers including a silent auction, a Pizzathon at a local pizzeria, and a raffle for the chance to throw a pie at their favorite manager. Fundraising efforts reaped a total of $24,451, including a $10,000 Miracle Match”; grant from the CO-OP Network (a CUES Supplier member). The CU has one CUES member.

Community Involvement, from CUES.org Member News

Mon, 08 Aug 2011 09:51:21 CDT

South Bay Credit Union, Redondo Beach, Calif., is participating in Change a Childs Life, a coin drive with all proceeds benefiting Childrens Hospitals and the Childrens Miracle Network. The CU has one CUES member.

Honored, from CUES.org Member News

Mon, 08 Aug 2011 09:50:36 CDT

On June 22, KeyPoint Credit Union, Santa Clara, Calif., was named Corporate Citizen of the Year by the Milpitas Chamber of Commerce. The CU has one CUES member.

Merger, from CUES.org Member News

Mon, 08 Aug 2011 09:49:45 CDT

Credit Union of America, Wichita, Kans., plans to complete a merger with First Choice Credit Union by the end of the year or early next year. All First Choice CU's branches will be retained, as will its 27 employees. The new CU will have $450 million in assets and 47,000 members. The merger is partly the result of the planned retirement of First Choice CU CEO Linda Nicholson, CCUE. CU of America has three CUES members. First Choice CU has one CUES member.

New Position, from CUES.org Member News

Mon, 08 Aug 2011 09:48:45 CDT

Brian Hedgepeth is the new CEO of Bronco Federal Credit Union, Franklin, Va. He is the former director of retail services at the CU.

Marketing With Incentive Cards, from cumanagement.org Daily Deposits.

Mon, 08 Aug 2011 01:00:00 CDT

August 8, 2011American Airlines Federal Credit Union, Fort Worth, Texas, with $5 billion in assets and 224,000 members, has successfully used Visa incentive cards to add extra excitement to some of its marketing campaigns.In the summer of 2009, the CU used CardLab Visa Incentive Cards for a credit card promotion. Members who opened a new credit card during the promotion period were entered into a drawing; 10 lucky winners received”; the gift card, says Séverine Williams, manager/marketing services at American Airlines FCU. The card was personalized with each winners name and also had a ‘Thank you message.”;The CU again used the product in the fall of 2009 for an auto loan promotion in Puerto Rico. Since we had had a hard time with offering gas cards in Puerto Rico, I decided to offer our Puerto Rico members, who opened/funded an auto loan during the promotion period, a $50 incentive card to ‘Help with their first gas tank fill up. I had CardLab create cards with a design that reflected the image that I used in the promotional campaign (direct mail/e-mail),”; says Williams. These cards were also personalized for the member and included the thank you”; message. The below samples show how the cards can be personalized The credit card promotion brought in more than 500 new card accounts and the auto loan campaign brought in close to 60 new auto loans. I really like the possibility of customizing my incentive cards,”; says Williams. I also liked to be able to have the cards tailored to reflect my campaigns imagery and display my members names and a ‘Thank You message. Plus, I felt good knowing that this was a gift they would appreciate, since they were going to be able to get what they needed or really wanted with it.”;The CardLab incentive cards cost $5.95 per card. This standard fee covers the card design, embossing a name and message on the card and shipping.Theresa Witham is a CUES editor, Theresa@cues.org.

NextGen Leaders: Amanda Thomas, from cumanagement.org Daily Deposits.

Fri, 05 Aug 2011 02:00:00 CDT

Aug. 5, 2011Meet CUES 2011 Next Top Credit Union Exec regional finalists! We have six amazingly talented candidates who, from now until the end of October, will keep everyone updated on their progress on the Next Top Credit Union Exec blog. Then theyll present their projects at CUES CEO/Executive Team Network, where a panel of judges, the live audience and the online public will vote for their favorite. Follow the progress here. Amanda ThomasMarketing/Business Development ManagerColumbus, OhioCUs Facebook page CUs Twitter page CUs Flickr page Follow Amanda on Twitter Follow Amanda on the Next Top Credit Union Exec challenge Give us the elevator speech about your project (as in how would you describe your project to someone you meet in an elevator?): The difference between someone liking your organization and someone loving it isn't the products you provide, and the service is only part of that equation. A unique culture is what sets you apart and what delivers that unique member experience. My project is creating that blueprint and sharing it with the credit union industry.What is your long-term career goal? To consistently achieve my shorter-term goals along the way, and continually set my boundaries and hurdles higher.Fill in the dots: The future of credit unions will be bright if ... Innovation and cooperation replace "status quo."What my generation brings to the credit union movement is …Enthusiasm, passion, leadership and energy.People consider me a leader because … I'm basically an average person, but I direct my passion toward things I care about in all areas of my professional and personal life. Passion isn't something you can fake, and it can influence and inspire others.Who is your hero and why? I'm not sure I would classify anyone as my hero, but I respect people who demonstrate fortitude in the face of strife. My CEO, Greg Kidwell, is a shining example of this fortitude. Instead of closing the doors of our credit union when our main sponsor group went out of business in 2004, he reinvented the credit union's identity and led the seemingly impossible battle to keep Members First Credit Union alive. We're successful today in large part due to his vision and determination.Who is a must-follow on Twitter? @BillClancy, @CarlaDay, @morrischris, @Matt_Vance, @robrutkowski, @itsjustbrent, @unCUlturers, @julieferg, @cuwarrior, @jmarkarnold, @currencytim View all the 2011 CUES Next Top Credit Union Exec finalists profiles: Josh McAfee Christopher Byrd Alexia Mavrakes Devin Selte Jay Hansen

PR Insight: What NOT to do When Working With the Media, from cumanagement.org Daily Deposits.

Thu, 04 Aug 2011 01:00:00 CDT

August 4, 2011Credit Union Managements online-only PR Insight”; column runs the first Thursday of every month.Credit unions devote a great deal of thought and dedicate considerable resources to how best to communicate to members. Which channel (direct mail, email, phone, SMS, social media, in-person) to use? When to communicate? What to communicate? How often is enough … or too much? How easily navigable is my website? Is the content easily understood and does it adequately answer the questions of my members? All of these are carefully considered to ensure the member experience is as smooth and productive as possible.The same level of care needs to be given to communications with media, but too often it is not. In working with media over the years, Ive heard so many variations on the same complaints that they bear discussing here, along with some basic rules of engagement in working with the media. If adhered to, these rules, in no particular order of importance, greatly enhance the probability of a successful media campaign: Understand that marketing material is not the same thing as information crafted for journalists. In drafting press releases, adhere to Associated Press journalistic style, a set of writing standards under which professional journalists operate (and how they prefer to receive information). To ensure your content complies with AP journalistic style, pick up an AP Style Guide at any large book retailer or simply download it online: http://www.apstylebook.com/. Along the same lines, have a specific part of your website set aside just for media and updated frequently with easily accessible information about your credit union, such as FAQs; downloadable corporate headshots of executives, logos, or other photography in high resolution format; and your most recent press releases. Ideally, this needs to be done before you do any outreach to media. Often, journalists will review your website before returning a call, responding to a pitch, or deciding to write an article about your most recent news. They may determine that you are not a quality source of information if your website is not up to snuff, or they may conclude that your news really isnt that important if you dont care enough to post it to your own website. Avoid posting corporate fact sheets, executive biographies and releases on your website as pdf files. Journalists tend to work under deadline and want ease of access to information, so the ability to quickly cut-and-paste content into a story helps in that cause. If you are going to invest time and money into drafting and distributing a press release through a wire distribution service, make sure that supporting content relevant to the release is available on your website in case a journalist wants additional information to write a story. Ill let this real statement from a journalist emphasize this point: A CU sent out a release on PRNewswire with language to ‘find out more about this on their website. But the site did not have any info about the product. And it didn't even have the press release posted. Why spend the money to get it on PRNewswire but then not put it on your site for free?”; Fine- tune your media contact list and continually monitor and update it. The sports writer at your local newspaper doesnt need to receive information about your new branch location. Know who covers the appropriate beats within your media targets. If its not easily discernable from a media outlets website (sometimes they could do a better job of providing quickly accessible, useful information online, too), a polite call or email to the paper or managing editor asking who is the appropriate person to submit news to is fine. Know how targeted reporters like to receive news. Some journalists like email and no phone calls, some like email with a phone call, some only want to receive information on certain days due to editorial deadlines, some accept calls only within certain hours, etc. Its OK to ask. Most journalists will appreciate your asking about their preferences – just make sure you note it and then follow that direction later. If you do, you will establish a higher level of professional credibility for your organization. This one is often the most difficult for credit union executives to stomach: If you are interviewed for a story, you may offer to provide a quote check”; or fact check”; if the journalist wants, but you should NEVER ask to review a story before it runs. This runs contrary to the entire concept of a free press and is offensive to journalists, because it implies that you dont trust them to do their job. If you issue a press release, and it does not generate any coverage, dont call the reporter demanding to know why he or she did not run your news. There are many reasons this can happen and some may have nothing to do with the quality of your content. If this happens repeatedly and coverage within that publication is important to your credit union, then simply reach out and ask if theres something they would prefer you provide from a content standpoint to better fit their editorial mission and make that adjustment (vs. Why arent you running my releases?”;) On a positive note, if your news does get picked up, take a moment and thank them for including it. Journalists are bombarded with information and must sift through it all to filter out the content best suited for their readership, so its no small feat to regularly make that cut. Ultimately, journalists prefer to work with organizations and sources that understand their processes and that are easiest to work with. By following some of these basic recommendations, you can position your credit union as one of the chosen few. Blair Logan is a vice president for William Mills Agency, the nations largest independent financial services and technology public relations firm. Follow William Mills Agency on Twitter and its FinTech Marketing blog.

Good Governance: A Board Meeting Refresher, from cumanagement.org Daily Deposits.

Wed, 03 Aug 2011 01:00:00 CDT

August 3, 2011 Credit Union Management magazines Web-only Good Governance”; column runs the first Wednesday of every other month. Ninety percent of board members I talk with complain at some time or another about the quality of their board meetings. Too long, too short, not focused, too much detail, not enough dialogue, the list of complaints goes on. If youre reading this, youre adding your own frustrating experiences. The meeting”; is where the legal work of the corporation gets done, so doing regular assessments makes sense. Setting agendas: The executive committee in consultation with the CEO sets the agenda and distributes it seven to 10 days in advance of the meeting. Its the boards meeting, not the executive teams meeting, so be sure the board drives the agenda. Traditionally a board agenda begins with approval of the previous minutes to ensure an accurate legal record. Traditional agendas then typically consider old business”; followed by new business.”; High performance agendas differ in that they place the most important items first and the less important items in descending order. This has been the philosophy of effective meetings for decades, but many boards still distribute critical items throughout and often find themselves rushed to judgment on key issues at meetings end. This prioritization”; of items also should apply to committee reports: the most critical early, the least critical toward the end. In most cases, committee reports can be included in the consent agenda, in which common items are considered and approved together to make time for more vital discussion, if those reports have no action to recommend. Agenda mix: High performance boards spend about 25 percent of their meetings on fiduciary oversight (operational excellence) and 75 percent on strategy. Unless the enterprise is struggling, the future is your most important challenge. The challenge is to get fiduciary oversight streamlined without unnecessary chit chat, so the board can proceed to the transformational goals from the strategic plan. This is where dashboards”; of performance metrics and crisp committee reports come in handy. Prioritizing the agenda: Because financials are the foundation of fiduciary responsibility, they should be an early agenda item for most boards. The items that comes after financials should be prioritized based on the critical nature of the issue to the organization in either operational excellence or strategic movement. Every agenda item ought to be connected to one of those outcomes and the board, through the executive committee, should determine the order of importance. This month merger discussion might come first while next month the strategic execution of virtual banking might come first. The point is, priority occurs based upon the important contribution of decision-making on that item to organizational success—both operational and strategic. Consent agendas: Consent agendas consist of a set of reports, updates or routine actions that requires no discussion. Typically the consent agenda groups items that really dont deserve discussion by the board. A CEOs report may go here even though there might be a merger”; agenda item later on for CEO update and discussion. Any specific item can be pulled for board discussion if desired. A committee report should go here if no board action is recommended. The critical point is the board can review these in advance, be fully up to date and save precious discussion time for more critical issues. I know from my own board service experience that if you give me a report as a formal agenda item, Im likely to talk about it even though no discussion is necessary. It appears to be anthropological rather than diabolical. Committee reports and actions: Committee recommendations to the board constitute formal agenda items. If their background report”; was in the consent agenda, all board members should be fully informed and ready for dialogue and decision. If this is true, the board can move to motions and discussion right away rather than spending time on a drawn-out history of the committees deliberation. This is quite a challenge for many boards and where wasted effort frequently occurs. Take the finance and supervisory committee as an example. The members of this committee are expected to have done detailed due diligence on financial reviews and other financial areas of risk. If there are not exceptions”; to report, the committee report is filed for the board to read. A summary dashboard of financial performance (metrics agreed to by the board) rather than five pages of financial data are presented. The committee moves to approve the financials or note the exceptions in the record, and approves the direction given to the CEO regarding the exceptions. Other agenda presentations: No agenda item or presentation should be made to the board without advance background information. This assures: (1) that were fully prepared; (2) presenters dont waste our time with unnecessary background; (3) we have time for dialogue rather than death by PowerPoint presentation. This area is one where most boards can recover precious discussion time from overly verbal presenters. All presentations and recommendations (committees, executive team, consultants) should be presented in executive summary”; format, normally one page of bottom line”; (recommendation, problem, condition) with limited background notes, data or context. Well-done executive summaries help boards move conversation to the critical issues rather than exploring trivial territory less relevant to the decision. Les Wallace, Ph.D., the 9Minute Mentor, is president of Signature Resources Inc. and co-author of A Legacy of 21st Century Leadership. He is a frequent speaker and consultant on governance leadership and a subject matter expert for CUES Center for Credit Union Board Excellence.

Leading a Large Credit Union, from CUES.org Whitepaper and Podcasts Library

Tue, 02 Aug 2011 12:33:46 CDT

United Federal Credit Union, St. Joseph, Mich., set a goal to identify the CEO competencies needed to successfully operate a multibillion dollar credit union, because leaders of the $1.2 billion CU expected the CU to grow to $4 billion in assets by 2020. The look at CEO competencies was important so leaders could get assistance in growing along with the CU.

Supplier Member News, from CUES.org Member News

Tue, 02 Aug 2011 11:53:27 CDT

Insuritas, East Windsor, Conn., was presented with an 'Innovator of the Year' award from NAFCU Services Corporation. Insuritas was recognized for "Outstanding Innovative Solution" for its online insurance agency portal that allows financial institutions to turn their websites into e-Commerce sites, generating critical new fee income. With the rapid increase in online bill pay, Insuritas clients are seeing a dramatic increase in online insurance buying on their Web based agency sites.

Community Involvement, from CUES.org Member News

Tue, 02 Aug 2011 11:52:44 CDT

Members and employees of Members Advantage Credit Union, Michigan City, Ind., took part in raising funds for the 2011 Relay for Life of LaPorte County, Indiana. They made or bought home made baked goods, donated to Blue Jean Fridays and participated in the Relay for Life walk. A total of more than $4,000 was raised - double the CUs goal! The CU has six CUES members.

Anniversary, from CUES.org Member News

Tue, 02 Aug 2011 11:52:00 CDT

AmeriCU Credit Union, Rome, N.Y., has renewed its corporate sponsorship of the Gregory J. Harris Military Courtesy Room, located in Syracuses Hancock International Airport. The room was established in 2008 for the use and relaxation of active duty military personnel traveling through the Airport. The CU has five CUES members.

Community Involvement, from CUES.org Member News

Tue, 02 Aug 2011 11:51:14 CDT

Belco Community Credit Union, Harrisburg, Pa., participated in the United Ways Stuff the Bus event at the Lebanon Valley Chamber of Commerce. Belco donated and delivered pens, backpacks, and calculator rulers to help fill their collection boxes. The CU has one CUES member.

Retirement, from CUES.org Member News

Tue, 02 Aug 2011 11:50:15 CDT

Tim Kramer, president/CEO of KeyPoint Credit Union, Santa Clara, Calif., has announced his retirement as of March 31, 2012.

Honored, from CUES.org Member News

Tue, 02 Aug 2011 11:49:29 CDT

SCE Federal Credit Union, Irwindale, Calif., has been named 2011 Small Business of the Year by Assemblyman Roger Hernández, (D-San Gabriel Valley). The Small Business of the Year award was established by the California State Legislature to acknowledge the impact organizations have on local communities through acts of philanthropy and charity. The CU has 14 CUES members.

Obituary, from CUES.org Member News

Tue, 02 Aug 2011 11:48:38 CDT

Frederick Hogan, a former CUES Board chairman and credit union executive for CUs in Florida died on July 21. He worked at several CUs including: Hillsborough County Teachers Credit Union, Publix Supermarkets Federal Credit Union, and University of South Florida Credit Union, which he retired from in 1985.

Merger, from CUES.org Member News

Tue, 02 Aug 2011 11:43:56 CDT

$975 million Elevations Credit Union, Boulder, Colo. and $80 million St. Vrain Valley Credit Union, Longmont, Colo., plan to merge on Oct. 1. CUES member Eva Gaudio, president/CEO of St. Vrain, will join Elevations CUs senior executive team and two St. Vrain Valley CU board members will sit on a combined board. Elevations CU has seven CUES members and St. Vrain Valley CU has four CUES members.

Event, from CUES.org Member News

Tue, 02 Aug 2011 11:43:13 CDT

PCM Credit Union, Green Bay, Wis., opened its new environmentally-friendly headquarters on Aug. 1. The CU has one CUES member.

New Position, from CUES.org Member News

Tue, 02 Aug 2011 11:42:06 CDT

Daniel Johnson, chairman of the CUES Canada Council, is the new CEO of Innovation Credit Union, Swift Current, Saskatchewan.

Promotion, from CUES.org Member News

Tue, 02 Aug 2011 11:41:12 CDT

At OSU FCU, Corvallis, Ore., Rhonda Heile-Brown has been promoted to EVP/ chief operating officer from VP/branch services.

New Position, from CUES.org Member News

Tue, 02 Aug 2011 11:40:26 CDT

Carlyn Roy is the new CEO of TAPCO Credit Union, Tacoma, Wash. Previously she was EVP/chief operating officer at OSU Federal Credit Union, Corvallis, Ore.

HR Answers: Workplace Financial Literacy Case Study, from cumanagement.org Daily Deposits.

Tue, 02 Aug 2011 01:00:00 CDT

August 2, 2011Financial issues are the No. 1 cause of workplace stress. Many employees are really struggling. The Cambridge Human Resource Group states that a lack of financial education for workers is the most critical unaddressed workplace issue.”;Heres why: Eight out of 10 people identify money as a significant source of stress in their lives (American Psychological Association). Regardless of income, 70 percent of Americans are living paycheck to paycheck (The Wall Street Journal). Distress over financial matters is contributing to irritability, anger, fatigue and sleeplessness for over 52 percent of Americans (USA Today). 42 percent of American adults dont follow a budget; 26 percent dont pay all their bills on time; 32 percent have no savings; 29 percent could only handle emergency expenses by using a credit card; 44 percent havent allocated anything for retirement; and 41 percent give themselves grades of C, D or F on their knowledge of personal finance (Harris Interactive). Dr. E. Thomas Garman, a leading research authority on the subject, found that when financial distress spills over into the workplace, it contributes to such work-related occurrences as: lower commitment to the organization; less satisfaction with pay; work time wasted dealing with personal finances; more absenteeism; and poorer health. To address this need, which impacts employee productivity, engagement and retention, CU Sources, a South Jordan, Utah, credit union service organization owned by Mountain America Credit Union, has partnered with 8 Pillars, Alpine, Utah, to provide personal financial management to employee groups. The program is offered to companies as part of their employee benefit program. Many companies currently have wellness programs and have positioned this financial training as financial wellness.”;Case Study: Mountain America Credit Union$2.8 billion/354,000-member Mountain America CU, headquartered in West Jordan, Utah, recognized the impact of personal finances on workplace performance and provided 8 Pillars to its 1,025 employees as part of the CUs benefits package. The kick-off session (with 800 employees) was rated 9.7 on a scale of one to 10, with 10 being the best. 99 percent of attendees said they would like to receive classes on other financial topics. Approximately 700 employees participated in the five follow-up sessions. This feedback included, again on a scale of one to 10, a content satisfaction rating of 8.7; presenter satisfaction was 8.9, and 97 percent said they would recommend the classes to friends or family members.Typically, employees of financial institutions have a greater understanding of managing personal finances; however, the results achieved by Mountain America CU employees made significant progress in merely the first five weeks of the program. To measure results, a financial fitness test is administered at the beginning and end of the training. Over the five week period, the average participant results included: one full grade improvement on knowledge about money (from C to B); 98 percent had an emergency account compared to 61 percent at the beginning; an average of $550 per participant was saved and for those with no emergency account prior to the class, the average participant saved $722; 84 percent knew their net worth compared to 12 percent at the beginning; 88 percent lived by a budget, compared to 49 percent at the start–a 79 percent increase; 88 percent knew their credit scores, compared to 59 percent at the beginning; and an 11 percent reduction in consumer debt from the beginning to the end of the classes and the average participant paid off $601. This is financial education Ive been seeking for 30 years,”; says CUES member Lynn Stephens, MBA, SPHR, SVP/human resources at Mountain America CU. I know from a personal standpoint, it has changed my life and my outlook on my personal finances. I can wholeheartedly recommend you and these principles to anyone who is seeking financial education and financial greatness.”; How the Training is DesignedTypically, the program is offered as part of a wellness and/or employee benefit program. The 8 Pillars personal finance training begins with a comprehensive one-hour kick-off session. After that it is tailored and delivered in a manner that best fits the needs of the company and employee base. For example, clients can choose to have five, one-hour follow-up sessions, two, two-hour sessions or other combinations that fit the CUs needs. In many instances, the organization incurs the entire cost; however some employers request a small investment from employees, citing a greater commitment to make behavioral change. Courses are offered during or after traditional work hours, as well as on weekends. The momentum with financial literacy continues to grow as other human resource and training directors couple their understanding of the value of personal finance knowledge and how it affects workplace performance.Employees are encouraged to bring a guest, such as spouse, friend, family member or adult child. In addition to the workshops, employees have access to an online university portal, a workbook and the 8 Pillars of Financial Greatness book. Michele McFarlane is business development manager at 8 Pillars. Reach her at Michele@8pillars.com or 801.889.9518, or visit the website, www.8pillars.com.

Shared Knowledge, from cumanagement.org Daily Deposits.

Mon, 01 Aug 2011 01:00:00 CDT

August 1, 2011 This is bonus coverage from "A CEO's Dozen" in the August 2011 issue of CUES' Credit Union Management magazine. When United Federal Credit Union decided to identify the CEO competencies required to lead a $4 billion credit union, it was because leaders of the $1.2 billion CU in St. Joseph, Mich., expected the CU to grow to $4 billion in assets by 2020. The look at CEO competencies was important so leaders could get assistance in growing along with the CU. The results of what transpired are a rich batter of CEO competency information that provides a recipe by which CEO assessments can be made at United FCU. But the icing on the cake is that these results may well develop into a predictive tool that can help other credit unions. "I view it as evolutionary as well as revolutionary," says J.B. Hoyt, chairman of the board. "This is evolutionary for us in that weve got a good robust evaluation for the CEO and leadership, which evolves assessment to the next level. But I see that what we have started is revolutionary as well, because it brings a common framework in a CEO competency model to the credit union industry. "The ‘ah-ha moment for me was when I realized how this could help others," he adds. We set out to help ourselves, but what weve done can help everyone. The research was focused on larger institutions but as I look at the results, I think the competencies are applicable to any except perhaps the smallest of credit unions. Any moderate size credit union can use this tool too.”; Credit union governance expert Matt Fullbrook agrees that the process United FCU went through—and the results it got—should be used by others. This type of exercise to create an agreed-upon framework for assessment, to build a formal process, that really ought to be taken on by every board and management team," says Fullbrook, co-author of the Filene Research Institutes Tracking the Relationship Between Credit Union Governance and Performance (co-sponsored by CUES) and an upcoming Credit Union Board Renewal Study. The board needs to ask the CEO these questions and vice versa and the CEO needs to ask the same questions of the CFO, etc. Solutions are never the same for any firm and no one size fits all of course,”; Fullbrook adds. And no human being is going to meet 100 percent of all criteria. But the key is the ongoing discussion of setting and using the criteria. At least a handful of times a year, the board and management should be asking, ‘Are we still confident our CEO has the skills and tools and the competencies—and that senior management and potential successors have what they need—to successfully lead us where we want to go?”; A former editor of Credit Union Management magazine, Kristin Gilpatrick is a Wisconsin-based freelance writer.

NextGen Leaders: Devin Selte , from cumanagement.org Daily Deposits.

Fri, 29 Jul 2011 02:30:00 CDT

July 29, 2011Meet CUES 2011 Next Top Credit Union Exec regional finalists! We have six amazingly talented candidates who, from now until the end of October, will keep everyone updated on their progress on the Next Top Credit Union Exec blog. Then theyll present their projects at CUES CEO/Executive Team Network, where a panel of judges, the live audience and the online public will vote for their favorite. Follow the progress here. Devin SelteSenior Relationship Manager, Team LeadServus Credit Union Ltd. Lloydminster, AlbertaFollow Devin on Twitter Follow Devin on the Next Top Credit Union Exec challenge Give us the elevator speech about your project (as in how would you describe your project to someone you meet in an elevator?): We have created a network of young people within Servus Credit Union with a goal to provide them with skills, knowledge, and invigorating passion on how they can be future leaders in the credit union movement. In Star Wars terms, we are creating credit union Jedi.What is your long-term career goal? Continue to progress in leadership roles within Servus Credit Union. No real destination; well see where my world takes me. On the side, do some credit union related motivational speaking. Really, really, really want to write a childrens book. Fill in the dots: The future of credit unions will be bright if ... There is an increased amount of collaboration amongst credit unions. Lets work together to share best practices to ensure that the credit union movement is alive and well for my kids, and their kids, and their kids…… We educate our employees on what it truly means to work for a credit union. What my generation brings to the credit union movement is … Bringing a passion for people helping people to a whole new level. We arent in it for the paycheque; were in it to change lives.People consider me a leader because … Through the formation of the Servus Young Leaders Network, I have played a major role in creating the vision, communicating the vision, building commitment to the vision, and modeling that vision. I believe these are key qualities for any leader.Who is your hero and why? I have a few: Jeff Mulligan and Eric Dillon. They were my first two credit union CEOs. By far, these two leaders have been the biggest influences in my credit union career. I have learned so much from them and truly owe much of my success to their tutelage. They are my Obi-Wan and Yoda (they can decide who is who). Robert Christiansen. One of the most intelligent, sophisticated, impactful young leaders I have ever met and I am five years his senior. He is the future of the Servus Young Leaders Network (literally, he is slated to become the new chairperson in November) and his innovation and passion for the credit union will take the SYLN to extraordinary places. He has CEO potential written all over him, and I truly believe that I will be working for him one day. Who is a must-follow on Twitter? @R_Christiansen, @crashdotcoop, @Matt_Vance, @billclancy, @itsjustbrent, @CUWarrior, @JillNow, @morrischris, @CarlaDay, @CurrencyTim, @hilinskit, @AmandaLThomas, @unCulturers ... okay, anyone I follow is a must or I wouldnt be following them. Mind you, I follow my brother (@Selte11) and thats more of a sympathy follow because my Mom made me. View all the 2011 CUES Next Top Credit Union Exec finalists profiles: Josh McAfee Christopher Byrd Alexia Mavrakes Amanda Thomas Jay Hansen

On Compliance: Look Before you Leap, from cumanagement.org Daily Deposits.

Thu, 28 Jul 2011 01:00:00 CDT

July 28, 2011Credit Union Management magazines Web-only On Compliance”; column runs the fourth Thursday of each month.The impact of Regulation E amendments on income is forcing credit unions to explore new avenues for increasing revenue. For some, charging fees on excessive withdrawals from savings accounts looks tempting.This is a route lined with potholes. Before charging excessive withdrawal fees, you should know all the facts. Otherwise, your plan could backfire, resulting in a costly regulatory cleanup.Before making a decision, read Section 204.2(d)(1) and (2) of Regulation D to find the basic definition of savings deposit”; and the more detailed definition of savings deposit,”; which includes limitations on the number and types of transfers allowed from any savings account, including a money market demand account. Note especially that if these transaction limits are exceeded, the accounts will not retain their savings deposit status and will be subject to the transaction account reserve requirements of Reg D.Note also that Reg D specifically provides two options for dealing with excess transactions—and that fee-charging isnt one of them. In footnote 4 to 204.2(d)(2), the regulation advises that the institution must either (a) prevent withdrawals that are in excess of the established limits”; or (b) adopt procedures to monitor those transfers on an ex post basis [after the fact] and contact customers who exceed the established limits on more than an occasional basis.”;The first choice is the simplest: It requires a clear-cut policy of either closing the account and placing the funds in another account the member maintains, or taking away the transfer and draft capacities of the savings account. Despite this, monitoring on an ex post basis is usually the preferred choice because members typically correct the mistake and follow the rules going forward. Unfortunately, the Federal Reserve does not define the term occasional,”; leaving credit unions to make that determination and translate their determination into a policy.It is important to note that footnote 4 of the regulation also states that An account that authorizes withdrawals or transfers in excess of the permitted number is a transaction account regardless of whether the authorized number of transactions is actually made.”; A careful reading of Board Interpretations of Regulation D,”; Questions and Answers,”; and Rulings and Opinions”; provides a reasonably clear understanding of what is acceptable as an ex post monitoring program, the details of which are beyond the scope of this article. What happens if you violate the rules? The first result of a violation is that the account in violation must be changed into a transaction account. The second result is that once that account becomes a transaction account, it must meet the reserve requirement. It is also possible that if examiners determine a credit union is not managing its accounts in a way that complies with Reg D and consequently makes a large number of savings/MMDA account reclassifications to transaction accounts, they may require the CU to refile its call reports and set aside funds for the required reserves.While it is true that the reg does not impose civil money penalties, reclassifying accounts, funding additional reserves and refiling call reports can result in significant expense. That cost is avoidable with the correct understanding and application of Reg D requirements. Paula Taylor, CAMS, is regulatory compliance manager of CUES Supplier member Fiserv and a certified anti-money laundering specialist with 20 years experience in the credit union industry.

Tech Time: Know Their Ways to Say No to Their Ways, from cumanagement.org Daily Deposits.

Wed, 27 Jul 2011 01:00:00 CDT

July 27, 2011Credit Union Management magazines Web-only Tech Time”; column runs the fourth Wednesday of each month.Online banking fraud continues to plague bank and credit union executives. According to Javelin Researchs 2011 Identity Fraud Survey Report, 8.1 million cases of fraud were reported, costing financial institutions $631 per incident. Government regulations and guidelines like Section 326 of the PATRIOT Act and the Bank Secrecy Act have been enacted to try to stop fraudsters. But so far rules and regs havent been enough to deter online fraud rings. Ultimately, products that offer real-time interception and behavioral analytics will most often enable financial institutions to catch fraudsters before the damage is done. Currently, there are three classes of fraud protection geared toward those opening accounts online: Identity verification. The first level of protection offers financial institutions the ability to verify an applicants identity and authenticate it in real time, relying on validated public sources. However, demographic profiles of an applicant can become infiltrated with fraudulent information when an identity is stolen and used successfully by another individual to acquire credit. In these cases, identity verification products become ineffective in combatting fraud.Identifying and combating fraudsters is difficult for individual institutions. Fraud networks work together to outsmart, adapt to and circumvent security systems. Fraudulent efforts are aided by increased online connectivity and the availability of information through social networks. Not only can a fraudster look up a name online and receive detailed information on a person, but social networking makes it easier for people who commit fraud to find and learn from each other. Contributed data. These products supply historical information about applicants contributed by other financial institutions to databases at credit bureaus. For instance, they may indicate when a charge-off or fraud has occurred on an account. Contributed data products may also put out alerts and flag suspicious applicants based on past fraudulent behavior.Countermeasures based on contributed data models cant keep up with the speed of evolving fraud rings. Previously, fraudsters were limited to a few attempts within a day at brick-and-mortar branches that required physical presentment of identification. Now, many attempts can be made across numerous institutions, netting opened accounts that can be overdrafted or credit cards that can be run up before the contributed data is even discovered or reported to the bureaus. Real-time behavioral methods. The third is a real-time model that looks at unique applicant data to determine fraudulent behavior. It uses behavioral analytics to see where a person has applied for a loan or account, how often, and what type of information the applicant typically provides. Without looking at private details available via public data sources, the system is able to flag suspicious applicants, based on patterns that are associated with fraudulent behavior. When application data is entered, the network scan can reveal matching data and red flag information that appears fraudulent. The patterns are developed by running statistical analysis on prior fraudulent applications to determine how unique applicant data is utilized across a network by fraudulent applicants. Real-time fraud prevention uses behavioral analytics to examine actions across a wide range of applications and institutions before the account is opened. For example, when an identity is stolen, it is the tendency of the fraudster to use the fraudulent identity at a high velocity over a short time across a large number of financial institutions to open as many accounts as possible before the victim realizes their identity has been stolen. A real-time network approach can keep track of the number of applications a person has across a network over a short time (for example 24 hours) to determine whether the activity by the applicant suggests that the identity is stolen. When the applicant has a higher number of applications than typical over that time period, the system can flag the account and not allow it to be opened without further review. This prevents the fraudster from accruing a high volume of losses in a short period of time and can also alert the consumer that their identity may have been compromised. Once applicant data triggers as fraudulent within the system, future use of that data automatically declines the applicant. Link analysis is a new development in real-time online account opening fraud detection that is getting much attention. This process takes contributed data from fraudulent accounts and uses it in real-time models to link fraudulent applicants to one another through pattern identification. Rather than researching just one person, a credit union using link analysis can see if a person is linked to other potential fraudsters with pending applications.Link analysis works by highlighting when an applicant has entered a specific piece of information numerous times across several identifies. It then detects where else this identity data may have been used or associated with another fraudulent applicant or account.Real-time fraud prevention during the online account opening process allows financial institutions to stay one step ahead of fraudsters at the earliest point during online account opening. Given its ability to stop the damage before it occurs, it will become an increasingly important requirement for credit unions to address in their online customer acquisition processes. Andrea Hunter is product owner of fraud prevention and integration solutions at Andera, the leading provider of online account opening solutions in the United States. She has been with Andera for two years, specializes in risk management and core interfaces and is a graduate of Brown University.

Loan Zone: Effective Collections Incentives, from cumanagement.org Daily Deposits.

Tue, 26 Jul 2011 01:00:00 CDT

July 26, 2011Credit Union Management magazines Web-only Loan Zone”; column runs the fourth Thursday of every month.There are people on all sides of the pay for performance issue.”; A sizeable contingent believes incentives will cause staff members to focus more on the possibility of a reward than on individual member needs. Some say staff is already paid a salary for the work they perform, and additional rewards shouldnt be necessary. Others say carefully designed incentives work to specify the performance objectives desired by the credit union and rewards those who exceed established criteria. After all, what gets rewarded gets repeated.Most are either in the middle somewhere or totally lost on the topic. This article explores the possibility of creating collections incentives that meet three important criteria: They incent staff to peak performance; they increase the quality of the member service being offered; and, they positively impact the credit unions bottom line… a win-win-win situation for all.Being the manager of the collections function is not just about dialing for dollars and repossessing collateral anymore. The collections area is at the crossroads of member service and back-office operations, and the manager needs to be aware of all the risks and opportunities that present themselves. From dealing with staff to delinquent members, attorneys, the board of directors and senior management, the collections managers job is getting more difficult all the time. Collections is about more than the credit unions delinquency ratio, and you need to fully appreciate that before you begin to look at incentive possibilities. Every member who has their loan charged off made a final payment at some time. The problem is the credit union didnt realize it was the last payment when it was made. From marketing campaigns, to interdisciplinary collections involving all staff, to loan modifications, to charge-offs and third-party account placement, your collections strategy needs to utilize innovative ways to identify and communicate with troubled members before its too late. Incentives can help accomplish that feat. If your credit union is focusing solely on delinquency reports to incent collections staff, you are ready for an upgrade! Before you begin, you have to ask yourself this question: Does our credit union fully embrace the concept of using incentives to reward certain staff behaviors? If the answer is no,”; this article will hopefully expand your horizons and provide you with fodder to make a case for establishing a collections incentive program at your credit union. If the answer is heck yeah”; or even maybe,”; read on. You may find a few tidbits here that will help you increase the effectiveness of your existing program, whether youre just getting started or are already reaping the rewards of effective employee management.What are incentives? Incentives are simply targeted rewards given to staff members once they achieve certain pre-defined goals. From cash, to time off, to gift cards to recognition within the credit union and a paper certificate, the size of the incentive is not always the key to effectiveness.To determine which type of incentive will work best for your credit union, start by asking, What motivates our employees?”; If you know what motivates them, youll know what incentive type will work best. Often, the best incentives arent cold, hard cash but special”; items or treats”; that create positive feelings and bragging rights.”; While staff are not liable to discuss their monetary incentives with others, they do often discuss and reap the long-term rewards from achieving other incentive types, especially for items or experiences they would not ordinarily purchase themselves … things like a day off with pay, housecleaning service for a day or a tropical vacation.Once you know what type of incentive you wish to use, the next step is to figure out what behaviors you wish to incent. The most common behavior types are transaction or production based. An example of a transaction-based objective is when a member service representative is incented $5 for every share draft account opened. A loan officer being incented $100 for every $10,000 of loans issued over a predefined amount is an example of a production-based behavioral incentive.The biggest risk of incentives in a credit union is the possibility of self enrichment at the expense of member service. But, properly crafted incentives can all but eliminate that downside. In fact, properly designed incentives can actually enhance and improve member service. Remember, the credit union defines the incentive program. As such, the credit union is in charge of what behaviors should be rewarded. If member service is a concern, be sure to include performance objectives within the incentive program that address this issue. Regardless, all effective criteria must meet three specific criteria: They must be goal-oriented, member service-based and event-triggered.Goal oriented. There will always be a conflict between paying staff for their required job description and incenting them for additional positive activity. Remember the size of the reward is not the deciding factor. Rather, it is the attention it brings on the desired activity, combined with the opportunity to reinforce member service for troubled members, that drives the incentive. And, collections incentives do not have to be given exclusively to the collections staff, as other employees can play an important role in the collections process. For example, lets look at the problem of incorrect contact information in the members profile. Why not review the file maintenance journal regularly to identify front-line staff who regularly update members contact information? Give them a $5 gift certificate to the local coffee shop for every 10 properly updated files, and send out an all-staff email congratulating these staff members for their great member service. This rewards positive behavior and educates the rest of the staff on the need to update member information.Other staff actions that might trigger incentives would be: effective referrals of troubled members; determining and recording the reason for delinquency; verifying vehicle location, insurance status and condition and creative use of collections correspondence. Member-service based. Effective credit union collections is a simple equation: the members problem + the appropriate credit union solution = both the members and the credit unions best chance for success. All incentives must measure up to this standard. You are not rewarding the act of dialing for dollars so much as you are assisting troubled members by providing them a solution to their financial challenges. After all, it is in both the members interest and the credit unions interest for the credit union to get paid. By being proactive and looking for more creative solutions, credit union representatives benefit both parties. Member service-based activities to consider incenting include: maintaining regular member contact; identifying member rescue opportunities; and proactively marketing to members whose financial profiles indicate a worsening financial situation – i.e., members who are late on their monthly payments or whose credit scores are significantly declining (often, the first creditor who reaches out to a distressed member gets paid, while those last in line do not) However, the equation may change to being more credit union focused”; during later-stage collections (over 90 days). At this point, members have often made a decision to forego their financial responsibilities and indicated a reluctance to work with the credit union. Therefore, incentives may move toward a more bottom line”; focus than a member service focus as the potential for recovery becomes more remote. This is often the area in which the collector receives a monetary reward for each dollar recovered, such as a $100 incentive for every $10,000 recovered on charged-off accounts.Event-triggered. The final piece of the incentive puzzle rests on the fact that incentives must be event triggered. Put simply, there must be a payout-triggering event that can be tracked, documented and recorded. Simply speaking to delinquent members and having them promise to pay is not enough to warrant payout of an incentive. However, the receipt of payment from said member is. Keep in mind, though, there is a difference between regular job performance objectives or required job duties and incentives. Incentives should only be used to reward performance thats over and above”; that expected of the average person performing the job. They should only be used to achieve results above those otherwise achieved. Institution of a properly designed incentive program should result in a significant increase in your collections department performance, and not all employees should shine in the program, only those whose performance is truly exceptional. That being said, you should find that top performers produce incredible results with such a program, as they will feel appreciated like never before. Now is not the time to maintain the status quo in the collections department. Properly designed incentives can be one of your innovative techniques to foster an effective collections program that focuses staff on enhancing the relationship with a troubled member, maximizing recoveries and increasing the role of member service. David Reed is a partner in Reed and Jolly, LCC, Fairfax, Va.

What Now?, from cumanagement.org Daily Deposits.

Mon, 25 Jul 2011 01:00:00 CDT

July 25, 2011This is bonus from Funding the Future”; from the August 2011 issue of CUES Credit Union Management magazine. Hank Klein, retired former CEO of Arkansas Federal Credit Union, had a retirement package that set him up nicely. But when his plans matured and all the money became available, he had a new problem: What should he do with the money to ensure that hed be comfortable for the rest of his life? I could take a lump sum for all of it, do my own investing, and hope it would last,”; he says. Or I could keep my CUNA annuity and use that to live off of. I have a lot of friends who take the lump sum and do their own investing. But with the financial situation during the last four or five years, I thought that might not be a good decision unless you were really good at that sort of thing.”; Leaving the money in the annuity was also a little risky, since it was only backed by the Pension Benefit Guaranty Corp., a government agency that protects private pension plans, for $4,500 a month, and Kleins retirement package exceeded that amount. Klein eventually settled on a unique solution. He left a third of his money in his defined benefit plan from CUNA Mutual, a CUES Supplier member in Madison, Wis. He took another third and invested it in an annuity. Then he took the remaining third and invested in a separate annuity with a 100 percent principal payback. His money is more secure, and his distributions are actually slightly higher. Klein recommends all retiring execs meet with a professional to examine their investment options. You make the biggest financial decisions of your life after retirement,”; he says. There is a lot of money to decide what to do with! You cant just change jobs or ask for a raise. You need to be confident youre doing the right thing.”;Jamie Swedberg is a free-lance writer based in Georgia.

NextGen Leaders: Alexia Mavrakes, from cumanagement.org Daily Deposits.

Fri, 22 Jul 2011 03:15:00 CDT

July 22, 2011 Meet CUES 2011 Next Top Credit Union Exec regional finalists! We have six amazingly talented candidates who, from now until the end of October, will keep everyone updated on their progress on the Next Top Credit Union Exec blog. Then theyll present their projects at CUES CEO/Executive Team Network, where a panel of judges, the live audience and the online public will vote for their favorite. Follow the progress here. Alexia MavrakesManager/MarketingAspire Federal Credit Union Clark, N.J.CUs blog Follow Alexia on Twitter Follow Alexia on the Next Top Credit Union Exec challenge Give us the elevator speech about your project (as in how would you describe your project to someone you meet in an elevator?): The goal of my project is to evolve the culture of Aspire FCU from being strictly service oriented to a sales environment within a culture of service. Our departments will be divided to execute three main functions--sales, service and support--yet they will be interdependent. This will create the deliberate extraction of sales from our existing service functions, creating more opportunities for our members to do business with us and generating more revenue for Aspire. What is your long-term career goal? My long term career goal is to continue to change the credit union industry for the better and to eventually work my way up to a C-level position. Fill in the dots: The future of credit unions will be bright if ... We can do a better job of educating the general public about the credit union difference and ask our members for their business and referrals. What my generation brings to the credit union movement is … A fresh perspective on the way people will conduct their financial business in the future. People consider me a leader because … Im not afraid to express my opinions and ideas to others, yet Im very receptive to other peoples ideas as well. Also, I have the tenacity and gentle temperament of a pit bull, which makes me approachable, yet extremely determined to accomplish my goals. Who is your hero and why? My mom is my hero because she is always there to rescue me when I need her. She always supports me in my endeavors, no matter how crazy they may seem to other people. Plus, she gave me a free spirit and courage to chase my dreams, wherever they may take me.Who is a must-follow on Twitter?@mashable for all things technology and social media related. View all the 2011 CUES Next Top Credit Union Exec finalists profiles: Josh McAfee Christopher Byrd Devin Selte Amanda Thomas Jay Hansen

Incumbents Re-Elected by Acclamation, from cumanagement.org Daily Deposits.

Thu, 21 Jul 2011 01:00:00 CDT

July 21, 2011 The Credit Union Executives Society congratulates three board members who have been re-elected for a three-year term: Director Gerrianne Winky”; Burks, CCE, president/CEO of $2 billion Northwest Federal Credit Union, Herndon, Va.; Director Shelley Clarke, president/CEO of $785 million Goldenwest Credit Union, Ogden, Utah; and Immediate Past Chairman/Director Dale F. Schumacher, president/CEO of $233 million Tampa Bay Federal Credit Union, Tampa, Fla. Burks was appointed in May to serve through November, completing the third term of Carol A. Humenick, CCE, SVP/community and government affairs for $1.5 billion Citadel Federal Credit Union, Thorndale, Pa., who resigned due to personal reasons. (The maximum number of terms a CUES director may serve is three.) The three were elected by acclamation as no nominations by petition were received by the July 11 deadline. The newly re-elected directors will start their new terms after the CUES Annual Business Meeting to be held during CEO/Executive Team Network™, Nov. 6-9 in Las Vegas. Board Chairman Frederick D. Healey said, We are pleased to welcome back these dedicated and knowledgeable volunteers.”; Other CUES Board members include Vice Chairman/Chairman-Elect Lary McCants, CCD, CCE, president/CEO, $868 million IBM Southeast Employees Federal Credit Union, Boca Raton, Fla.; Treasurer Teresa Y. Freeborn, president/CEO, $718 million Xceed Financial Credit Union, El Segundo, Calif.; Secretary Robert D. Ramirez, CCE, CEO, $1.1 billion Vantage West Credit Union, Tucson, Ariz.; Past Chairman and Director Carla Altepeter, CCE, president/CEO, $348 million CitizensFirst Credit Union, Oshkosh, Wis.; and Past Chairman and Director Mark Hawkins, president/CEO, $724 million Altura Credit Union, Riverside, Calif.

Inside Marketing: Google+ for Credit Unions, from cumanagement.org Daily Deposits.

Thu, 21 Jul 2011 01:00:00 CDT

July 21, 2011Credit Union Managements Web-only Inside Marketing”; column runs the third Thursday of every month. By Mike LawsonJust when we were getting this whole social media thing wired, Google has to go and one-up everything with its Google+ network. Theres no doubt its a hit. More than 10 million folks have already signed up to use it--this on the heels of Foursquare boasting about its monumental feat of reaching 10 million users. Thats great, but it took Foursquare over two years to reach this milestone. It took Google all of two weeks it seems. What does G+ mean for credit unions? Does this industry really need another social media network to occupy more of our limited time? For the future of credit unions, the answer is yes. Heres why: If credit unions want to succeed well into this century and continue on that path for eons, they have to embrace the new. Its an important marketing message that appeals to younger demographics--and this group is vitally needed to keep extending our industrys future. Once they embrace it and it becomes proven, then the older demographics join in to solidify the trend.But lets not get too ahead of ourselves yet. First off, Google is discouraging businesses from setting up regular profiles to connect to customers and promises that Google+ Business Pages are in the works.Still, Google+ has a number of features that can certainly benefit a credit union--or any other business, for that matter. It has loads of potential not just based upon the platform itself, but rather its easy integration with Google's other belongings, such as: Seamless YouTube video integration (member video contests, CEO messages, how to”; videos, etc.) Real-time photo sharing via Google Photos or Picasa (day-in-the-life of a credit union photo essay, grand openings, philanthropic events, etc.) Music library streaming via Google Music (staff and members share music, creating a vital bond to strengthen relationships) Document sharing (no more faxing or snail mail!) Connections via Google Talk (conferencing between branches or other remote locations, IM, free PC-to-PC long distance, etc.) Even more features are sure to be introduced over the coming weeks and months to the millions of users who are still trying to learn the ropes of this network. But that's the beauty of this technology; it gives users an opportunity to figure out how it will ultimately be used, and shape its growth.CirclesCredit unions, in this case, can tweak, massage and mold this platform to meet their evolving needs for marketing, selling, supporting, collaborating, educating, etc. One of G+s coolest features, which has already been written about extensively, is Circles. Instead of having everybody you know all in one group, aka Facebook, Circles allows users to separate their connections into separate groups, or Circles – such as friends, family, co-workers, professional contacts, etc. Credit unions can divvy up members, prospects, partners, vendors, peers, SEG groups, employees, etc. and target communications more effectively.Circles also allows professionals to easily collaborate with each other. For credit unions with numerous branches–or even just a couple–Circles is a godsend. When you collaborate with teams on projects, Googles Gchat integration in Google+ gives you real-time chat. But now with Googles new group video conferencing capabilities with up to 10 people, Hangouts, it will do nothing but enhance in-house communication–even for conducting intimate, educational member webinars.HangoutsAgain, Google is focusing on collaboration with Hangouts. On the surface Hangouts appears to be a novel way to video chat with friends. It is, but what about using it for meetings to include remote employees? Hangouts lets employees work from anywhere and still have face time with co-workers. You can do this with Skype, iChat, Yahoo and others quite easily, but Googles easy integration with its other tools lets users conduct all sorts of tasks without ever leaving the platform. Thats efficient.Google DocsWith Google Docs, combined with Google+ and Gmail, your credit union now has all the tools it needs to easily collaborate, share documents, and have virtual meetings. Thats a huge advantage to any business, enabling credit unions to work more efficiently than ever.As credit unions continue to look for ways to work smarter and boost membership, Google+ isnt the ultimate answer. We all still have to perform and provide superlative service. But G+ coupled with Googles robust toolbox will make life much easier and more effective for credit unions to save money, conduct better service and increase their value all at the same time. Thats attractive to any demographic.What are your thoughts on how credit unions can benefit from Google+?Other resources to find out more about Google+:The Google+ ProjectHow to Get Started With Google+, Your Complete GuideWhy Google Has the Hammer To Make Businesses Use Google PlusThe Google Plus 50Is Google+ a Game Changer? Mike Lawson, principal of the PR/marketing firm DML Communications, has two decades of journalism, public relations and marketing experience. His unique and robust knowledge allows him to meet the varied needs of editors, end-users and clients. Lawson's expertise enables him to enhance his clients' market exposure through media relations, social media tools, advertising efforts, target marketing strategies and more. He also speaks on PR, marketing and media issues to audiences nationwide. For more info, visit www.dmlcommunications.com.

CUES® Board Member Incumbents Re-Elected by Acclamation, from CUES.org Press Releases.

Thu, 21 Jul 2011 00:00:00 CDT

MADISON, Wis.— The Credit Union Executives Society congratulates three board members who have been re-elected for a three-year term:
• Director Gerrianne Winky”; Burks, CCE, president/CEO of $2 billion Northwest Federal Credit Union, Herndon, Va.;
• Director Shelley Clarke, president/CEO of $785 million Goldenwest Credit Union, Ogden, Utah; and
• Immediate Past Chairman/Director Dale F. Schumacher, president/CEO of $233 million Tampa Bay Federal Credit Union, Tampa, Fla.

Insurance Matters: The Impact of Social Media, from cumanagement.org Daily Deposits.

Wed, 20 Jul 2011 01:30:00 CDT

July 20, 2011Credit Union Management magazines Web-only Insurance Matters”; column runs the third Wednesday of each month.It seems like every magazine I pick up contains articles on why you need to join the social media revolution.”; How about the risks to your credit union when your employees Twitter away?The reality is, most credit unions are on the Internet. Tweeting, poking and the like are new iterations of the website and customer communications. The issue is, how does insurance respond, or not respond, to these new communications technologies? Here I will focus on the liabilities associated with communications on the Internet or in social media. Here are the risks that exist in communications–be it verbal, by mail, email, blogs or Twitter: libel/slander/defamation; violation of copyright or trademark; false advertising; harassment and violation of privacy/data breach. For most credit unions, commercial general liability coverage is a part of the standard insurance package policy. Its the section of insurance where you have coverage for product liability and slip-and-fall accidents. The CGL policy is designed to pay for bodily injury and property damage arising out of your business operation. There is also coverage for false arrest, malicious prosecution, wrongful eviction, slander, libel, violation of privacy for information broadcasted, infringement of copyright, trade dress, or slogan in your advertising.Is there coverage there for the communications issues I raised above? Well, kind of.Most general liability policies exclude criminal acts and acts where you intentionally violate the rights of another. Copyright infringement that is not a part of advertising is also excluded. Further, most policies exclude coverage for insureds in the advertising, broadcasting and web hosting business. Also excluded are Internet search companies, chat rooms, bulletin boards, and content providers.You may have coverage in your directors and officers insurance. Check out your cyber liability coverage as well. (You do have cyber liability coverage, dont you?)A key component to protecting your credit union is preventing a loss. Your organization should have a written policy that spells out who can speak for the credit union, what types of issues should not be discussed in social media, and the difference between blogging for the credit union as part of marketing and blogging about the credit union in your personal life.These issues are nothing new. Credit unions have long had policies regarding who can speak to the press about credit union matters. The social media environment just adds another iteration.Talk with your insurance provider about your insurance program. Discuss with your insurance agent your CUs marketing plans and how the Internet and social media will be used. Understand your policies exclusions and limitations.Here is how you start the conversation with your agent, How are we covered for the issues that can come up for our CUs Internet and social media activities?”;Scott Simmonds is the unbiased insurance guy, consulting on, but never selling, insurance, www.CUinsuranceConsultant.com. He welcomes questions from readers, and will attempt to answer as many as possible in future columns. E-mail him for a copy of his white paper, Questions Credit Unions Should Ask About Their Insurance.”;

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CUES® Honors Outstanding Councils and Top Recruiters, from CUES.org Press Releases.

Opening Online Bank Accounts, from cumanagement.org Daily Deposits.

Technology and Tradition, from cumanagement.org Daily Deposits.

On Compliance: Fines for Social Media Violations, from cumanagement.org Daily Deposits.

CU Management Magazine issue publish

Tech Time: Evaluating Big-Ticket Purchases, from cumanagement.org Daily Deposits.

Supplier Member News, from CUES.org Member News

Community Involvement, from CUES.org Member News

Community Involvement, from CUES.org Member News

Honored, from CUES.org Member News

Event, from CUES.org Member News

Name Change, from CUES.org Member News

Retirement, from CUES.org Member News

Promotion/Retirement, from CUES.org Member News

Honored, from CUES.org Member News

Loan Zone: Troubled Debt Restructuring, from cumanagement.org Daily Deposits.

CUES® Names 2011 Future Leader Award Recipient, from CUES.org Press Releases.

Forward Focus, from cumanagement.org Daily Deposits.

CUES® Names 2011 Outstanding Executive Award and Hall of Fame Inductees, from CUES.org Press Releases.

The Difference of a Decade, from cumanagement.org Daily Deposits.

Inside Marketing: International Credit Unions Collaborate to Thrive, from cumanagement.org Daily Deposits.

CCCU, CUES to Partner on International Event, from cumanagement.org Daily Deposits.

Insurance Matters: How Good Is Your Agent?, from cumanagement.org Daily Deposits.

CCCU, CUES® Introduce Groundbreaking Event-CCCU and CUES International Convention, from CUES.org Press Releases.

Facility Solutions: Branch Color Palettes & Brand, from cumanagement.org Daily Deposits.

Supplier Member News, from CUES.org Member News

Supplier Member News, from CUES.org Member News

Honored, from CUES.org Member News

Honored, from CUES.org Member News

Event, from CUES.org Member News

Event, from CUES.org Member News

Merger, from CUES.org Member News

New Position, from CUES.org Member News

Anniversary, from CUES.org Member News

Community Involvement, from CUES.org Member News

Community Involvement, from CUES.org Member News

Community Involvement, from CUES.org Member News

Community Involvement, from CUES.org Member News

Hope for the Hopeless, from cumanagement.org Daily Deposits.

Exploring Credit Unions Around the World, from cumanagement.org Daily Deposits.

CFO Focus: Top 5 Tips for Reporting, from cumanagement.org Daily Deposits.

NextGen Know-How: Confront Your Gremlins, from cumanagement.org Daily Deposits.

Teaching Smart Money Management: Financial Fitness, One Habit at a Time, from cumanagement.org Daily Deposits.

Mobile Banking Vendor Scorecard, from cumanagement.org Daily Deposits.

Create Banking Alternatives for the Hispanic Community, from cumanagement.org Daily Deposits.

PR Insight: Is Public Relations an In-House Function or Should You Use an Agency?, from cumanagement.org Daily Deposits.

Good Governance: The Journey to ERM, from cumanagement.org Daily Deposits.

Community Involvement, from CUES.org Member News

Community Involvement, from CUES.org Member News

Community Involvement, from CUES.org Member News

Community Involvement, from CUES.org Member News

Community Involvement, from CUES.org Member News

Community Involvement, from CUES.org Member News

Honored, from CUES.org Member News

Honored, from CUES.org Member News

Anniversary, from CUES.org Member News

Anniversary, from CUES.org Member News

Event, from CUES.org Member News

HR Answers: Documenting Employee Problems, from cumanagement.org Daily Deposits.

Obstacles in Recruiting, from cumanagement.org Daily Deposits.

Top Three Disaster Recovery Planning Tips, from cumanagement.org Daily Deposits.

Community Development CU Case Study, from cumanagement.org Daily Deposits.

Tech Time: Payday Processing, from cumanagement.org Daily Deposits.

Supplier Member News, from CUES.org Member News

Supplier Member News, from CUES.org Member News

Community Involvement, from CUES.org Member News

Community Involvement, from CUES.org Member News

Community Involvement, from CUES.org Member News

Community Involvement, from CUES.org Member News

Community Involvement, from CUES.org Member News

Community Involvement, from CUES.org Member News

Sponsorship, from CUES.org Member News

Honored, from CUES.org Member News

Loan Zone: Visa Program Profitability, from cumanagement.org Daily Deposits.

PR Insight: Getting the Most From Your Credit Unions Media Kit, from cumanagement.org Daily Deposits.

Facility Solutions: The Financial Spa, from cumanagement.org Daily Deposits.