Q3 2012 LSCU Signal Magazine.indd

Transcription

The Magazine of the League of Southeastern Credit Unions
Fall 2012
The Evolution
of the Branch
Experience
Is EMV Right for
Your CU?
Chip Card = Good Strategy?
Why Facebook
is Becoming Tool
of Choice for CUs
Leveraging Most Popular Social Network
Election Resources
for CUs & Members
Utilize Election Resources for 2012 Election
Leveraging Industry Knowledge
Credit unions have more leverage through established strategic relationships with
innovative credit union service providers that help your credit union capitalize on
opportunities that may not be available otherwise.
Generate Member Smiles
One Gift Card at a Time
Giving a gift for any occasion has never been easier.
And now, with the new and improved designs, generating
smiles one gift card at a time is more fun than ever before!
Sign up for the program today to be ready for the upcoming
holidays. To view the new designs and to learn more about
LEVERAGE’s Gift Card Program, visit www.myleverage.com.
“Our credit union truly appreciates the
ease of using the gift card
program provided by LEVERAGE. This
low-cost product
provides another excellent service to
offer our members!”
Marquetta Cantrell, President/Manager
Rocket City FCU
866.231.0545 | www.myleverage.com | consult@myleverage.com
LSCU
Message from the President
Every four years when we are electing our nation’s president, we hear that it is the most important election of our lifetime. While often this is an
exaggeration, there is some truth to the statement. Every election is important because we as Americans have the freedom to choose. This is a freedom
that has been fought for since our forefathers declared independence and led to George Washington being elected as the first president of the United
States in 1789. For credit unions, each election is an opportunity to help elect candidates that understand our issues.
Every election cycle, either presidential or mid-term, the LSCU works to get credit unions as much information as possible about candidates’
positions on our issues and ask them to dissimulate that information to their staff, volunteers, and membership. We also work with chapter leaders to
hold legislative meet-and-greets. This is always a great opportunity to get to know candidates and current elected officials who are running for office.
Nothing beats a face-to-face meeting to find out what the candidates believe in and how much they know about credit unions. I can’t stress enough
how important it is to form relationships with our current and future lawmakers as early as possible. Our Alabama and Florida Governmental Affairs
Committees also formulate a list of endorsed candidates. We share that with credit unions and also house that on our website.
Every two years, the League puts together a voter’s guide for state and federal candidates. Each guide provides our credit unions a good view of
how each candidate feels about credit union issues. On the federal side, we document whether the representative or senator co-sponsored credit union
legislation and how they voted on issues important to our industry. This is important to know when going to the polls because we can’t keep trying to
work with lawmakers that aren’t willing to work with us.
On the state side, we work to educate candidates on the credit union difference and what issues are important to us. Along with this information, we
send a credit union questionnaire to all of the candidates running for state office. This is an invaluable tool when it comes to electing our local officials. This
year in Florida, the five-question document gauges where the candidate stands on credit union taxation, public deposits, expanding the credit union charter,
the non-judicial foreclosure process, and data breach legislation. Each candidate is graded on their answers. All of the candidates did not fill out the survey,
but we did get enough responses to help you make decisions on Nov. 6. It also highlights the key credit union-friendly candidates in the House and Senate.
Since there are no state elections in Alabama this year, a survey was not sent. However, you can expect to see one in 2014.
The state and federal voter’s guides have been emailed to all of you. We house both guides in our LSCU Action Center which is under the
Governmental Affairs tab on the LSCU Homepage. We also have a webpage, Campaigns and Elections, that houses the Alabama and Florida elections
pages, resources on finding your legislators, and state and federal district maps. These resources can help when researching the candidates in your
district. As we get closer to Election Day, the Campaigns and Elections webpage will have resources such as stickers,
lobby posters, and voter materials for your branches.
Each of these resources should help credit unions make informed decisions when they go to the
ballot box in November. The voter’s guides and list of endorsed candidates really tell a story
of which of the candidates understand our issues and how well they understand credit
unions. The list is non-partisan and as a trade association we work with elected
officials from both parties. We will not support a candidate that votes against our
issues or one that is not willing to meet with us and discuss our issues. Credit
unions need to be diligent and not accept the status quo any longer.
Our country has been voting for more than 200 years and we are
afforded the freedom to make choices. As your League, we work hard
to get you the most up-to-date information on candidates’ positions
on our issues and where the candidates stand so you can make an
informed decision on Nov. 6. I hope you will take advantage.
Patrick La Pine
President & CEO
League of Southeastern Credit Unions
Table of Contents
Editor
Amy Jowers
3
President’s Message
6
Trends
Is EMV Right for Your Credit Union?
Contributors
Bill Berg
Mike Bridges
Jared Ross
Joseph Davis
Mary Elicia Del Santo
Andy Gonzalez
Keith Hopkins
Brandy Norvell
Laura Vann
Adena Whitman
Between now and the end of 2012, every credit union should, at a
ation
minimum, complete an evaluation of EMV and made a determination
ortfolios.
whether chip cards are a good strategy for the growth of their portfolios.
The Evolution of the Branch Experience
The credit union industry will most likely never move away from having a
large brick and mortar presence for its members. What is needed is for
each credit union to have a strategic vision for the future of its branches?
10
Production
Detra White
April Banta
Advocacy
Election Resources Available for Credit Unions & Members
Credit union advocates are in a unique position to help influence the
elections this year. Utilize the resources that LSCU and CUNA have
provided to member credit unions in conjunction with the 2012 election.
Letters to the editor may be submitted
at submission@lscu.coop.
Through Project Zip Code: Strength in Numbers
Connect with us!
14
LeagueofSECUs
LSCU Legislator Profile
Congressman Jo Bonner
Senator Chris Smith
Representative
Jo Bonner
@LeagueofSECUs
Senator
Chris Smith
Highlights
LeagueofSECUs
www.lscu.coop
4
6 | Trends
Read why every credit union should complete
an evaluation of EMV and make a determination
whether chip cards are a good strategy for the
growth of their portfolios.
A Magazine of the League of Southeastern Credit Unions
SIGNAL: Vol. 3, Issue 3
10 | Advocacy
Credit unions can influence policy by working
together to do so. An easy way is to participate
in the Project Zip Code program.
19 | Compliance
RateMap is a free resource for competitive
strategies, decision-making, and advance
revenue and profit goals.
19
Compliance
Free Access to Online Interest Rate Research Tool
20
Cooperative Initiatives
SAS Program Continues to Evolve to Meet the Changing Needs
of the Small Credit Unions
24
Foundation
SECUF Scholarship Program Offers Opportunities to Credit Union
CEOS, Employees, & Volunteers
“If I did not receive the scholarship, I would not be able to attend the conference [LSCU AC&E],”
Diane Long, CEO of Calhoun-Liberty Employees Credit Union, said. “The breakout sessions were
very good but the small credit union roundtable was most beneficial. I came back from the annual
conference pumped up and ready to start new and better ways of making loans.”
28
Education
Effects of Training on Employee Performance
LSCU Learning Opportunities for October-December
30
Communications
Why Facebook Is Quickly Becoming the
Credit Union Tool of Choice
33
League News
2012 AC&E Highlights
2012 LSCU Supervisory Committee Conference “A Wonderful
& Informative Conference”
36
Industry
The Justices Have Spoken: The Affordable Care Act Is Upheld.
Let the Compliance Begin!
38
LEVERAGE
Cross-Selling to Members from Indirect Lending
ELT Process Mandated in Florida
42
LSCU Staff Directory
Highlights
20 | Cooperative Initiatives
28 | Education
30 | Communications
Has your credit union taken advantage of any of
the suite of services available through the SAS
Credit Union Program? Credit unions have more
resources and options than ever before.
Credit unions can reap the rewards of providing
training for their employees and volunteers because
well-trained workers help increase productivity and
income.
Credit unions now have access to users in their
target market and more who may be potential
credit union members by leveraging the most
popular social networking tool for marketing.
www.lscu.coop
5
TREND
Is EMV Right for
Your Credit Union?
Brian Scott, vice president, sales, The Members Group
There are many unknowns where the future of chip cards in the
U.S. is concerned, making strategic planning very difficult for credit
unions across the country. The past year, however, has brought
forth several developments, each of which is providing a more
detailed roadmap.
Here Is What We Know:
Very soon, merchants wishing to reduce their security
compliance burden will begin to deploy dual interface POS
technology to support contact and NFC chip transactions. If by
October of this year a merchant logs 75 percent of all transactions
on these terminals, that merchant will not have to validate
compliance with the PCI Data Security Standard.
Some major retailers, including Wal-Mart and Target, have
already begun upgrading their terminals for chip acceptance.
By October 2015, Visa and MasterCard will shift the liability
to the party (issuer or merchant) with the least secure method
of processing transactions. For the purposes of this deadline,
both networks deem chip technology to be the most secure
transaction method available.
U.S. processers similarly are preparing to support merchant
acceptance of chip transactions. Both Visa and MasterCard are
requiring processor support by the spring of 2013.
We also know some early adopters of EMV technology – credit
unions that have implemented chip cards to meet the EMV standard
abroad – are reporting successes from their individual upgrades.
6
For its part, United Nations Federal Credit Union (UNFCU) –
processed by The Members Group and the first credit union
to adopt EMV technology in its credit card program – has made
international headlines about the early results of its migration. Since
introducing chip credit cards in 2010, UNFCU reports a more than
150-percent jump in credit card applications for the chip and PIN
segment. The demand stems from the fact that many of UNFCU’s
members either reside or travel internationally and require EMVsupported credit cards to transact abroad. Wanting to best serve
its members around the world, UNFCU understood a chip-enabled
credit card was a must to provide cardholders with convenience, as
well as protection against fraud.
Not only did the UNFCU EMV migration result in a dramatic
increase in applications; it also resulted in a 38 percent increase
in overall purchases from January 2011 through June 2012 and a
23-percent increase in revolving balances for that period on those
cards with chip technology.
Between now and the end of 2012,
every credit union should, at a minimum,
complete an evaluation of EMV and make a
determination whether chip cards are a good
strategy for the growth of their portfolios.
With ongoing results like this, it’s easy to anticipate more U.S.
credit unions will be attracted to the potential of EMV at their own
cooperatives – albeit UNFCU’s unique membership. In short, many
credit unions with similarly high-travel members do not want to lose
their top-of-wallet positioning to a competitor.
Indeed, providing a convenient method for cardholders to
transact abroad is the sweet spot for credit unions. While EMV
champions may tout the security and fraud-reduction qualities of
EMV, it will be some time before the U.S. can fully realize these
benefits. That’s because EMV issuers today are still required to have
mag stripes on their plastic for their cards to be useable at all U.S.
merchant locations. So, knowing what we do about the near-term
future of EMV, how should credit unions plan for their eventual
migration to chip technology?
Between now and the end of 2012, every credit union should,
at a minimum, complete an evaluation of EMV and make a
determination whether chip cards are a good strategy for the growth
of their portfolios. From there, card managers should develop a
strategic plan, including what steps will be taken and on what kind
of a timeline (keeping the liability shift deadline of October 2015
well in mind).
Budget, of course, must be a part of the plan. However, credit
union leadership may find budgeting for EMV more palatable when
viewed as a marketing expense. Think of chip technology as an
upgrade to the card portfolio (similar to platinum cards a few years
back) – one designed to secure or solidify top-of-wallet positioning.
Because the shift is not yet a mandate, early adopters can consider
adding chip technology the same way they would any other upgrade,
such as rewards or customizable photo cards.
When conducting your due diligence on EMV partners, credit
unions should look to sources of information other than looking
solely to their card processor. Certainly the processor should be
involved as a credit union researches its alternatives, but the credit
union itself should be the driving force behind the due diligence on
the broader EMV-provider marketplace. The more EMV experts a
credit union can speak with, the better they can fully understand the
entire picture, especially the ability to create growth in the portfolio
from the marketing advantages of EMV.
It’s no longer a question of if EMV is coming to the U.S.; it’s a
question of when all issuers and acquirers will be fully functional.
While we understand a few of the important deadlines, we don’t
yet know how the various entities in the payments ecosystem will
respond to those deadlines – or more importantly, how consumers
will respond.
Unfortunately, the unknowns do not provide enough of a reason
to “wait and see.” Credit unions must begin to act now, researching
the options, examining current cardholder behavior and aligning
their EMV plans with what they do know today. ■
www.lscu.coop
7
TREND
The Evolution of the
Branch Experience
Mike Bridges, vice president, Marketing & Communications, LSCU
For most consumers, their first experience with a financial
institution was stopping by a branch. The traditional branch was
usually in a stately building; the consumer stood in the teller line, had
their passbook stamped, and maybe got a lollipop on the way out for
the kids. While these are great memories for Baby Boomers and Gen.
X, it’s not quite the experience the new generation of credit union
members is looking for.
Studies show that Gen. Y and Millennials, those people born between
1982 and the early 2000s and the largest generation in U.S. history, want
their financial information now. Investing in technology is a major step in
courting this segment. According to a Fiserv consumer trends survey,
Gen. Y uses ATMs more often than Boomers and Gen. X and surprisingly,
Gen. Y visits branches more often. So what does this mean for credit
unions? Should they invest in technology or continue to build branches or
do both? Actually, they need to rethink the branch model.
“In the current credit union branch construction we are seeing
80-plus percent of all new branches going with a dialogue banking
delivery method as opposed to the traditional teller line,” says Justin
Sweetman, regional vice president at DEI, a leading financial institution
design company from Cincinnati. Sweetman says the days of building a
branch with the traditional teller line are slowly fading away.
8
“It does not embrace the employee utilization desired by credit
unions nor does it provide the member service qualities of the
dialogue approach,” says Sweetman.
Listerhill Credit Union, based in Muscle Shoals with $500 million
in assets, has been one of the more progressive credit unions when
it comes to their member services and branch experience. Listerhill
actively pursues Gen. Y members while keeping a close watch on
the rest of its membership base. The credit union currently has one
branch on the campus of the University of North Alabama that has a
cell phone charging station, a Wii, and a place for students to relax,
as well as conduct their credit union business.
“Our decision to depart from normal branch design on campus
was born out of a desire to become a destination for students on
campus regardless of whether they were credit union members or
not. We have found through our efforts with younger generations that
a substantial conversation is essential to their understanding of the
credit union,” says Brad Green, CEO of Listerhill.
While the University of North Alabama branch is non-traditional,
the rest of Listerhill’s branches are more of what members are used
to seeing. Green says that’s important for the credit union as it grows.
“I don’t think that the traditional teller counter service is in danger
of completely disappearing any time soon. Some members have been
readily receptive to utilize more automated technological solutions.
On the other hand, many have refused to embrace anything but a
person,” says Green.
Innovations Federal Credit Union, based in Panama City with $150
million in assets, is true to its name. It’s innovating the branch model
by doing away with the teller line and utilizing kiosks with Innovations
staff standing beside the member instead of behind a counter. Many
credit unions in Alabama, Florida, and across the country are also
adopting this model. Credit unions have to adapt to the member’s
needs to continue to remain relevant.
“Credit unions need to be convenient and have a physical
presence so our members have the option of how they can be served.
Branch designs are continuing to change and credit unions must be
mindful of this, so as not to be left behind,” says David Southall, CEO
of Innovations FCU.
Southall says the member experience with the kiosks has been
very positive for his credit union.
“Our members love the freedom to see their financial information
at the same time as our team member versus the old way of holding
the member’s information hostage with the antiquated design of the
teller line,” says Southall.
The credit union industry will most likely
never move away from having a large brick
and mortar presence for its members.
What is needed is for each credit union
to have a strategic vision for the future
of its branches. Many brands have gone
from initially being a niche industry into
a national brand. Credit unions have that
opportunity right now.
(l to r): Innovations FCU’s “kiosk” branch,
DEI branch renderings of Bay Winds CU and
Harvard University Employees Credit Union
“At DEI we are building a high retail branch with dialogue banking
and improvements in technology in an almost Starbucks-meetsApple-store approach, making the branch a true destination for these
highly influential groups,” says DEI’s Sweetman.
Listerhill’s Green also sees similarities to how Starbucks and Apple
have grown to not only sell products but become a trusted brand for
consumers; a place that many people want to experience as much as
a place to buy coffee or shop.
“Both have created destination retail establishments that introduce
and showcase their products. People actually enjoy going to both
of these retailers to experience the product. We need to create
destinations that feature an enjoyable and relevant experience of the
value of the credit union,” says Green.
Whichever route credit unions take during their growth
opportunities or branch renovations, they must evolve and have an
eye toward the future. Every company within an industry that has
succeeded has seen the future and been open to change. Members
love their credit union, but their needs are changing.
“I see smaller branches filled with new technologies that we don’t
know of yet. I also see the need for increased brand recognition and
culture shifts within credit unions. We need to be open-minded and
explore the shifting delivery channels as well as the ever-changing
products and services in this industry,” says Southall.
“The time someone expends to visit our branch is a sacred
opportunity. We need to discover and innovate an experience that
gives the member the most value and quality in the time that they
choose to spend in our branch,” says Green.
Competition is as tough as ever in the credit union industry.
Long-term vision and innovation can transform the credit union
branch experience for members. In the end, it will create a whole
new generation of memories for members, and it will still come
with a lollipop. ■
www.lscu.coop
9
ADVOCACY
Advocacy
Election Resources Available for Credit Unions & Members
By Andy Gonzalez, grassroots & political action coordinator (FL), Governmental Affairs, LSCU
There is not a more fundamental right that can be exercised by
Americans than the right to vote. As the 2012 elections near, LSCU
has been working to ensure that credit unions and their members’
voices are heard.
It is a known fact that nearly half of registered voters are
credit union members and surveys of credit union members state
conclusively that they trust their credit unions when it comes to their
decision-making process about political and electoral issues.
As credit union advocates, we are in a unique position to help
influence the elections this year. Active participation can make
a significant difference in whether we elect credit union-friendly
candidates and conversely, sitting on the sidelines can result in the
election of candidates who are more pro-regulation and less credit
union-friendly.
Below are some of the resources that LSCU and CUNA have
provided our members to utilize in conjunction with the 2012 election:
• Candidate Voter Guide for Alabama and Florida: The voter
guide is available for credit unions to share with their staff
and members to help determine the candidates that are credit
union-friendly. The guides were developed from surveys given
to Alabama and Florida candidates seeking election both at
the state and national level to gauge their understanding and
support for the credit union movement. This year the LSCU
Governmental Affairs team received more than 135 survey
responses! Responses to the candidate surveys have been
used to put together a voter guide for credit unions. The
voter guide can be found by visiting the LSCU Action
Center under Campaigns & Elections at www.
lscuactioncenter.com.
• Legislative Meet & Greets: These events,
hosted by LSCU chapters, are great
opportunities for credit unions to interact
with legislators and show the services
credit unions provide their constituents
as well as the service credit unions give
back to the community. These events
have been underway in both Alabama
and Florida. See the sidebar for upcoming
Legislative Meet & Greets in your area.
10
• CUNA Guide to 2012 Election Activities Pamphlet: CUNA
has developed this pamphlet as well as several marketing
materials that can be used to encourage both credit union
employees and members to vote on Election Day. The
marketing materials and pamphlet can be found at http://
cuna.org/pol_affairs/election.
• LSCU Action Center (www.lscuactioncenter.com): It’s not only
your one-stop-shop for advocacy! If you, a fellow employee,
or member would like to register to vote, request an absentee
ballot or have any other questions regarding voting in the
2012 election, visit the LSCU Action Center’s Election
Resources section to find pertinent information and links.
Utilizing the resources available to us is a great way to ensure
that credit union-friendly candidates become credit union-friendly
lawmakers. Every election season gives us another opportunity to
flex our grassroots and political muscle. Remember, if credit unions
don’t vote, credit unions don’t count!
If your credit union would like to get involved or has questions
regarding the 2012 election, contact LSCU Grassroots and Political
Action Coordinators Blake Westbrook (AL) at 866.231.0545 x2164
or blake.westbrook@lscu.coop, or Andy Gonzalez (FL) at x1010 or
andrew.gonzalez@lscu.coop. ■
Numbers
Strength in
Through Project Zip Code
Jared Ross, vice president, Governmental Affairs, LSCU
There is an old saying in politics that holds true in most areas of
everyday life, too. “There’s strength in numbers!” If there is strength
in numbers, then credit unions should be one of the most powerful
organizations in the political process. Boasting more than 6.5 million
members between Alabama and Florida, credit unions really can
influence policy by working together to do so. One of the easiest ways
to show that strength is to provide elected officials with an accurate
account of the number of members living in their district. When the
League, as lobbyists, and you, as constituents, go to a member’s
office and can say “You have 200,000 credit union members living
within your district,” it can truly make a significant impact.
Project Zip Code (PZC) is an easy-to-load, user-friendly, and
secure software application that counts
5
your members and matches them by
congressional district, state legislative
4
district, and county. These counts are
then uploaded to CUNA’s Project Zip
Code website (www.pzconline.com) and
3
6
combined with data from other credit
unions nationwide. Many credit union
7
members reside in states other than
the state in which their credit union is
domiciled. This is why it’s important that
2
all credit unions participate; without full
1
participation we can’t get a clear picture
1
4
2
3
6
5
PZC counts your members and matches
them by congressional district, state
legislative district, and county.
7
11
12
14
10
15
9
13
8
17
16
18
21
19
20
22
25
23
24
26
of our grassroots strength. PZC aids in federal and state advocacy
efforts, and participation provides operational benefits. Credit unions
can view credit union members by geographic area, which can be
useful in placing ATMs and shared branching.
nching.
One of the biggest concerns we hear
ar
with PZC is whether it is secure. Your
information is completely secure.
No personally identifiable data or
individual information leaves your
computer. PZC only receives the
counts of records successfully
matched by the program. All of your
data remains confidential and secure with
ith
PZC. It is also compliant with the privacyy laws
created in Gramm Leach Bliley.
So what are the benefits of PZC? PZC aids in both federal
and state advocacy efforts when we lobby our elected officials on
legislation that impacts credit unions. This simple program directly
benefits your credit union by strengthening our position as we
continually build relationships with your legislators. In years past,
we could only estimate the number of credit union members in our
districts; PZC will allow the League to pinpoint exactly how many
members reside in each legislative district, lending us more influence
when dealing with legislators. Further, PZC provides operational
and marketing benefits. Credit unions can view their membership
by geographical area, which can be helpful when deciding ATM and
branch locations.
We like to boast our membership numbers, touting nearly two
million members in Alabama and more than 4.5 million members
in Florida. Unfortunately, according to our current project zip code
numbers, we are well below that, showing fewer than 1.4 million
members in Alabama and just over four million members in Florida. By
running PZC we will have a more accurate count of our members and
ability to utilize the “strength in numbers” mentality. Remember, if you
don’t count your members, then your members don’t count! Help us
help you by running PZC at least twice a year.
If you need assistance in running PZC, contact LSCU Grassroots
and Political Action Coordinators Blake Westbrook for Alabama at
866.231.0545 x2164 or blake.westbrook@lscu.coop and Andy
Gonzalez for Florida at x1010 or andrew.gonzalez@lscu.coop. ■
27
www.lscu.coop
11
ADVOCACY
How to Get Started with Project Zip Code
Get Started with PZC 12.0:
1.
Go to the Project Zip Code website, www.pzconline.com.
2.
Download the program and the full user manual.
4.
Design your credit union’s own report with the query and
reporting tools that can help your credit union’s marketing
activities. For those credit unions that are already using PZC,
log-in with your username and password. If you have forgotten
your password or username, send an email to pzc@cuna.com.
Project Zip Code is a user friendly program, however if you run
into any problems or would like a CD copy, contact LSCU Grassroots
and Political Action Coordinators Blake Westbrook in Alabama at
866.231.0545 x2164 or Andy Gonzalez in Florida at x1010. If
you have a technical question, contact Kristen Prather at CUNA at
202.508.6708.
3.
Once you have the program up and running, your membership
totals will be matched to both the current 113th federal and
state legislative districts.
12
12,000,000
12,000,000
12,000,000* members protected and growing!
You work hard to help your members plan, build and achieve their financial
Our diverse product offerings, sophisticated means of communicating, targeted
future. Today more than 4,000 credit unions help protect the futures of over
marketing efforts and 24/7 access give you the ability to build more and stronger
12,000,000 members and build deeper and stronger relationships in the process.
connections while protecting your members and earning non-interest income.
Every year as credit union membership increases, more members trust their
There’s a good reason we are 12,000,000 strong and growing.
credit union to provide them with access to high quality and competitively priced
insurance protection. And more credit unions look to CUNA Mutual Group for the
protection developed specifically for their members.
Contact your CUNA Mutual Group sales executive today to
find out how your credit union can protect more members
through the MemberCONNECT Program.
With the MemberCONNECT® Program your members can choose from more than
Call 800.356.2644 or visit www.cunamutual.com for details.
just one type of insurance. They’ll find Auto, Home, AD&D and Life insurance,
along with the expertise to guide them to the right ones for their needs.
More Members protected.
Members protected more.
MemberCONNECT.
* Source: Internal Analysis of MemberCONNECT Program data 12/2010.
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual
insurance holding company, its subsidiaries and affiliates.
Life and AD&D insurance sold through CMFG Life Insurance Company. MEMBERS Auto & Home
Coverage made available by CUNA Mutual Insurance Agency, Inc. and underwritten by leading
insurance companies. These insurance products are not deposits and are not federally insured
or guaranteed by credit unions.
10002626-0111-MHC © CUNA Mutual Group, 2011 All Rights Reserved.
Common Purpose. Uncommon Commitment.
Representative Jo Bonner
How and why did you become interested in public service and
politics in particular; and what led you to run for Congress?
While I earned a degree in journalism from the University of
Alabama, it was not until I completed an internship with former
Congressman Jack Edwards of Mobile that I became interested
in politics. I worked on the campaign of Sonny Callahan who
succeeded Edwards and eventually was hired to be his press
secretary and later his chief of staff. The idea of public service
is special to my family since my father once held elective
office in Wilcox County. It has been an honor to follow Sonny
Callahan in representing the people of Southwest Alabama for
the last decade.
Jo Bonner was first elected to Congress in
2002 and was recently re-elected to a fifth
term representing the state’s fast-growing Gulf
Coast region.
A member of the powerful House
Appropriations Committee, Bonner has served
as a vigilant guardian of the taxpayers’ money,
helping to eliminate wasteful and questionable
spending. He has led by example, personally
prohibiting congressional earmark requests from
private, non-public entities, while instituting
practices of increased transparency in the
earmarking process. Over the years, he has
been ranked by numerous national organizations
as the most conservative member of Alabama’s
seven-person House delegation.
On the House Appropriations Committee,
Bonner serves on the Commerce, Justice
and Science subcommittee; the Defense
subcommittee; and the Financial Services
subcommittee.
14
What are the most important issues you see facing
Congress today?
The most serious problem facing our nation is the unsustainable
growth of federal spending. We are now nearly $16 trillion in debt,
and our annual deficits have been more than $1 trillion for each of
the last three, and soon to be four, years, and we are borrowing
42 cents of every dollar we spend. If left unchecked, this growth
will drive our nation toward a fiscal crisis from which we may
never recover.
You co-sponsored H.R. 1418, legislation to give credit unions
greater flexibility to make small business loans. How do you
see the role of small businesses in the recovery, and what
should credit unions be able to do to assist?
Small business is the key to economic recovery now, as it has
been in the past. Access to capital from all sectors for business
investment must be freed up to allow for increased growth and
hiring. Just as I have with respect to energy policy, I believe the
current economic malaise requires an “all of the above” strategy
-- one that facilitates the injection of capital into small businesses
from all available lenders, including credit unions.
Credit unions are seeing an alarming increase in regulatory
burden throughout Alabama and you have co-sponsored
H.R. 3461, financial institution exam fairness, a credit union
friendly bill. Do you see H.R. 3461 as a way to decrease
regulatory burden on financial institutions?
In the aftermath of the economic crisis of 2008, the pendulum
has swung too far in the direction of over-caution and overprotection, which has manifested itself in over-regulation. We
must continue to work to free the lending community to make
reasonable and sound business decisions that allow for more
robust economic recovery.
What role do you see for credit unions in serving the
people of Alabama and how do you see them as part of the
economic recovery?
I believe credit unions, along with large and community banks,
need to be at the forefront of our economic recovery. Without the
needed capital, combined with a lessening of the overall federal
regulatory and tax certainty, business owners will be unable and
unwilling to provide the kind of economic growth and job creation
needed to bring this recession to an end.
If you could give one piece of advice to grassroots
advocates for credit unions, what would it be?
The League of Southeastern Credit Unions has been very effective
in sharing the goals and objectives of your industry in Washington.
That said, continued efforts to educate the general public and
Members of Congress on the important role credit unions play in
communities across our nation is vital to your continued success
on legislative and regulatory matters affecting your industry.
With the recent announcement of Airbus in Mobile, AL, what
are your thoughts on the increasing presence that Alabama
is having in the global business market?
Thanks to a number of high-profile foreign investments in
Alabama over the last two decades, our state is well known
to international business. We are all aware of how Mercedes
transformed our economy, ushering in tens of thousands of auto
industry jobs since 1993. As a result, Alabama is on track to
become the country’s third largest auto manufacturing state – a
position unheard of a generation ago. Similarly, Airbus’ landing
in South Alabama holds tremendous potential to remake the
state’s aerospace industry landscape. Having recently participated
in aviation supplier recruitment at the international airshow
in Farnborough, I can tell you that Alabama was the topic of
conversation and recipient of great interest. I am optimistic about
the future of high tech industry in our state. ■
Azalea City Credit Union CEO Ola Anise greets Congressman Bonner at the CUNA GAC.
www.lscu.coop
15
Senator Chris Smith
What it is about politics that interested you enough to
help guide your decision to run for public office?
While at Florida State University Law school I spent some
time at the Capitol and learned about the legislative process.
I quickly learned that the legislature could have both a
positive and a negative effect on local communities and the
state of Florida. These experiences lead me to run for State
House in 1998 because I knew I could be a positive voice for
my community.
In 1998, Chris Smith was elected to the
Florida House of Representatives for District 93,
serving unopposed for two consecutive terms,
2000 and 2002.
He led the charge to reform the elections
process in Florida after the Election of 2000.
He helped author the election reform bill that
is now law in Florida and is being used as a
model nationwide.
In 2003, he was unanimously selected
to be the Democratic House Leader for
the Democratic Party. His duties included
fund raising nationwide for the Democratic
Party, candidate recruitment, and developing
democratic policy for the state.
He was elected to the Florida Senate in 2008,
for District 29. He is currently with the law
firm of Johnson, Anselmo, Murdoch, Burke &
George, P.A., practicing in the areas of civil trial,
municipal law, and civil rights litigation.
16
In your eyes, what are some of the biggest issues facing
Floridians as we move toward the elections and into the
2013 Legislative Session?
Once again the budget in 2013 will be one of the biggest
issues facing Florida. Each year the budget determines the
priorities of the state government. Over the last few years the
legislature has cut millions of dollars from higher education and
K-12 education funding. Next year we must make education
funding one of the priorities in the budget and restore funding
to schools and universities that desperately need it.
Last session, you sponsored SB 936 which would have
given credit unions the ability to become qualified public
depositories. What were your thoughts behind filing this
bill and why was it an important issue to you?
I filed SB 936 because I believe consumers should have
choices. Providing consumers with more choices leads to better
prices and service. Currently in Florida, commercial banks
enjoy a virtual monopoly over the deposit of state and local
funds. Frequently, credit unions will receive deposit requests
from local governments but due to current laws they are forced
to turn them away. Credit unions play an important role in local
communities and it only makes sense that local governments
should be able to use them as qualified public depositories.
How important do you feel the role of grassroots
advocacy is in the legislative process? What advice
would you give to grassroots advocates when contacting
their elected officials?
Grassroots advocacy is extremely important to the legislative
process because it allows us to hear the concerns of
constituents on issues that come up during a legislative
session. Every time I vote on a bill I consider its effect on my
community and the constituents who took the time to advocate
for or against the issue. When you contact your elected official
it is important to be specific about your issues and how it will
affect your community. The input from my community helps
to shape and inform my voting on bills as well as what bills I
sponsor and write.
Can you describe your experience working with the
LSCU Governmental Affairs team during your time in the
Legislature?
Working with the LSCU Governmental Affairs team has always
been a pleasure. My meetings with them have always proven
to be both informative and educational. They have provided me
with information to make sound policy decisions on legislative
matters dealing with credit unions and my community. ■
What three things do you believe the Legislature should
accomplish during the 2013 Legislative Session?
The three things that the legislature should accomplish during
the 2013 Legislative Session are restoring education funding,
working to fix the FCAT crisis, and finally working to create
economic development and jobs.
Senator Smith with community members.
www.lscu.coop
17
Upcoming Governmental Affairs
Conference Dates
in 2013
Join the League in meeting
with legislators face-to-face
Alabama State GAC
April 9-10
Montgomery, AL
Embassy Suites Hotel Conference Center
Florida State GAC
March 19-20, 2013
Tuesday – Wednesday
Governor’s Club - Tallahassee, FL
CUNA GAC
Feb. 24-28, 2013
Washington, D.C.
For more information visit www.lscu.coop or contact
LSCU VP, Governmental Affairs Jared Ross
at 866.231.0545, x1012.
Compliance
Membership Has its Benefits: Free Access to Online
Interest Rate Research Tool
Bill Berg, MBA, CCUE, CUCE, BSACS, vice president, compliance training & information, Governmental Affairs, LSCU
RateMap has been available for three months now – have you
taken full advantage of it? If not, you’re missing out on a resource
designed to assist you with your competitive analysis strategies,
improve decisions on what products to offer and how to price them,
and advance your revenue and profit goals.
The League is now offering affiliated credit unions free access
to RateMap, an online interest rate research tool, as a benefit of
League membership. RateMap is a web-based pricing tool offered in
collaboration between the League and RateWatch.
When Baptist HealthSouth FCU President/CEO Mike Raley and
Memorial Employees FCU President/CEO George Glasser found out
that this product was now being offered as a “free service” and “value
of affiliation,” both CEOs were very pleased because they previously
had been spending hundreds of dollars annually with RateWatch to get
that information. Free is a price that most of us like, especially with the
ongoing regulatory and competitive pressures to reduce costs.
“I’ve been very pleased with the amount of money we’ve been able
to save using RateMap,” Glasser said. “The depth of information that
we have access to has also been extremely helpful.”
RateMap provides affiliated credit unions online tools to see what
key rates other financial institutions are currently offering and is
delivered through the League’s InfoSight portal.
Users may choose from the following selection of the most
commonly offered deposit and loan products:
• 12, 36, & 60-month Certificates of Deposit
• Money Markets at $2,500 & $25,000
• 60 & 72-month new auto, and 48-month used auto
Deposit rates are updated weekly and loan rates are updated monthly.
RateMap users can filter by institution type, product type, and rate,
as well as search by address, zip code, or city and state. Credit unions
can also view every surveyed branch’s address, phone number,
website, number of locations, and deposit balances.
Credit Union Benefits
Benefits for your credit union include free and easy access to
competitive pricing information; more branch level rate data available
than any other source in the industry; insight into the current rate
environment to assist in pricing decisions; and discounted pricing for
other RateWatch services.
With free access to RateMap’s key rates in your area and
throughout the country, a credit union can increase its competitive
advantage by utilizing:
• Rates for a selection of the most commonly offered deposit
and loan products
• Rate coverage of all the institutions/branches monitored by
RateWatch
º Deposit rate data on more than 90,000 branches nationwide
º Loan rate data on more than 40,000 branches nationwide
• Searching by address, zip code, or city and state
• Filtering by institution type, product type, and rate
• Details such as address, website, number of locations, and
bank deposit balances
• Customer/member reviews from online review sites such as Yelp
• Listing of internet bank rates
• Ability to print deposit rate reports
To Access RateMap:
1.
Login to the League’s website at www.lscu.coop. Click on “Site
Login” and enter your log-in name and password.
2. Once logged in, scroll down to Rate Map box located on the
home page of www.lscu.coop and click on the Get Started Now!
button which will take you to the InfoSight/RateMap home page.
3. Under “Access Rate Map,” click on the Rate Map link for
Alabama or Florida as appropriate.
4. Once you have entered RateMap, enter the address where you
would like rate comparisons centered around. You will need to
fill out some registration information (just a few seconds), and
you are now on your way.
Also, as a League member, you are also eligible for exclusive
offers from RateWatch. RateWatch provides one-time as well as
subscription services for a wide variety of retail and commercial,
deposit and loan, rate and fee, and competitor comparison reports.
Template and custom reports are available to meet your comparison
needs and your budget.
If you have any questions about RateMap, contact LSCU VP,
Compliance Training & Information Bill Berg at 866.231.0545, x1028. ■
www.lscu.coop
19
INITIATIVES
SAS Program Continues to Evolve to Meet the Changing Needs of the
Small Credit Unions
Adena Whitman, director, member relations, Cooperative Initiatives, LSCU
The world of finance has become more challenging to navigate as the economic conditions have continued to fluctuate. Is your credit
union under $50 million in assets? Has your credit union taken advantage of any of the suite of services available through the League’s Small
Asset Size (SAS) Credit Union Program? Credit unions have more resources and options than ever before through the SAS program to help
them grow and thrive.
Through the Cooperative Initiatives Department and its five consultants, the SAS program offers many targeted tools, including on-site
consulting to improve operational efficiencies and enhance member utilization of products and services, guidance in resolving Document of
Resolution (DOR) items and/or other issues revealed by exams and audits, facilitation of strategic planning sessions/development of business
plans, support in determining feasibility of field of membership expansion, and guidance on regulatory requirements, budget development and
assistance with Bank Secrecy Act risk assessments and other risk assessments.
The services listed above are just a sampling of the type of assistance available from the League’s member relations team housed in the
Cooperative Initiatives Department.
Small Credit Union Resources
“Our SAS program continues to evolve to meet the changing needs of the
On-site consulting on improving
small credit unions in Alabama and Florida,” said Laura Vann, vice president,
operational efficiencies and enhancing
Cooperative Initiatives, for the League of Southeastern Credit Unions. “Our
goal is to help small credit unions thrive, and we don’t take a one-size-fits-all
member utilization of products & services
approach. We recognize that small credit unions have different ideas about
Guidance in resolving Document of
how to best serve their members and work with our SAS credit unions to
Resolution (DOR) items and/or other
develop plans and strategies that will work within the uniqueness of their own
issues revealed by exams & audits
credit unions.”
Facilitation of strategic planning sessions/
Vann explained that the member relations team has assigned geographical
territories but credit unions benefit from the combined experience of the
development of business plans, support
entire team. “Our Cooperative Initiatives team has more than 80 years of
in determining feasibility of field of
experience working with financial institutions, primarily credit unions, in
membership expansion & guidance on
operational, compliance, and business development roles. We also have
regulatory requirements
significant marketing and communications experience in other sectors. We
Budget development
bring a wealth of experience to our positions at the LSCU and can utilize our
knowledge base to help credit unions develop and execute strong strategic
Assistance with risk assessments
business plans,” Vann said.
+
+
+
+
+
+
CONTINUED ON PAGE 22
20
SAS Program Continues to Evolve (Continued)
Cooperative
Initiatives Staff
Laura Vann
VP, Cooperative Initiatives
laura.vann@lscu.coop
x2181
Adena Whitman
Director, Member Relations
adena.whitman@lscu.coop
x2134
April Ales
Member Relations Specialist
april.ales@lscu.coop
x1038
David LeNoir
david.lenoir@lscu.coop
x2158
Judy Scott
judy.scott@lscu.coop
x1062
22
“We consider the LSCU as our partner in
success,” said Kristin Sturges, CEO of East
Alabama Community Federal Credit Union in
Opelika, AL, with $10 million in assets. “I have
managed two small credit unions and the League
has always been at my side to answer questions,
serve as a sounding board, and to motivate us to
better serve our members.”
Sturges said the League facilitates a planning
session for the credit union every two years. “Our
planning sessions have helped us develop our
blueprint for growth,” said Sturges. “As a result of
our planning, we have built a new building, changed
to a community charter, implemented an advertising
program, restructured loan programs, and added
products and services such as bill pay and credit
cards. The League staff not only facilitated our
planning sessions, but continued to work with us to
make sure that we achieved our goals.”
Judy Surles, CEO of Jefferson County Teachers
Credit Union in Monticello, FL, with $7 million
in assets has also been pleased with the SAS
program. “We are particularly pleased with the
initiatives account that the League has provided for
the last three years,” she said. The SAS initiatives
account provides each credit union under $50
million in assets with $500 in 2012 to use toward
any LSCU or CUNA educational event, product, or
service. “In previous years, we used our initiatives
account for training and this year we used it for a
strategic planning session,” said Surles.
SAS credit unions have also used their
initiatives account to attend the LSCU’s AC&E,
Leadership Development Conference, Supervisory
Committee Conference, as well as workshops
and webinars said Vann. “Small credit unions
have used their initiatives account toward
registration at CUNA events such as America’s
CU Conference and the Governmental Affairs
Conference. In addition, the $500 initiatives
account has also been used for auditing services
provided by LEVERAGE’s audit and consulting
service, strategic planning sessions facilitated by
the Cooperative Initiatives team, and registration
for the Southeastern Credit Union Managers
Association annual conference.”
“The League’s Small Asset Size Program has
provided a wonderful support group, especially
with my being new to the credit union industry,”
said Taren Dawson, manager of Stevenson Federal
Credit Union with $16 million in assets. “In
addition to attending conferences with foundation
scholarships, which I wouldn’t have been able to
attend otherwise, the League has really helped
me with my role as manager and understands the
challenges I am facing. They have been there for
me 24/7, offering great advice and training.”
Taren Dawson, manager of Stevenson Federal
Credit Union, at the 2012 AC&E.
Customized and on-site training is another area
specially targeted for the SAS program.
Buster Castiglia, CEO of Miami Federal Credit
Union, with $28 million in assets worked with one
of the League’s member relations specialists to
identify an opportunity to assist the credit union
with cross-sell training.
“[He] did a wonderful job,” said Castiglia. “I am
a former teacher and I know good teaching. His
presentation was first-class in every way. It was
not only informative and well presented, but the
material was put together in such a way that it was
easy for my staff to understand and he connected
very well with each and every one of them.”
So whatever your needs, the SAS program has
or will create something to fill your requirements,
contact any of the Cooperatives Initiatives staff. ■
“Stop thinking in terms of
limitations and start thinking in
terms of possibilities.”
— Terry Josephson
Find us this November in booth #107
at the Leadership Development Conference!
ThinkCreative.com
Facebook.com/ThinkCreative
FOUNDATION
Foundation
SECUF Scholarship Program Offers Opportunities to Credit Union CEO,
Employees, & Volunteers
Laura Vann, vice president, Cooperative Initiatives, LSCU
The Southeastern Credit Union Foundation (SECUF) offers
scholarships to credit union employees and volunteers to attend
specific educational events. “The scholarship program suffers from
some misconceptions: scholarships are only available to CEOs at
small credit unions, the application process is very difficult, and
scholarships only cover registration fees,” said SECUF Director
Leonard Parkhurst. “Professional development scholarships are
awarded to credit union employees and volunteers based on need,
either financial need or the need to obtain specific information,”
he said. “While the scholarship will probably not cover the entire
expense of an educational event, it will cover the registration fee and
a significant portion of the travel expenses,” Parkhurst noted.
In 2012, SECUF allocated $55,000 for professional development
scholarships to the following events: CUNA Governmental Affairs
Conference (GAC), LSCU State GACs, LSCU Annual Convention &
Exposition (AC&E), LSCU Hike the Hill, LSCU Leadership Development
Conference, LSCU Supervisory Committee Conference, CUNA
educational events, and select CUES educational events (CUES
Director Development Seminar, CEO/Executive Team Network, CUES
Symposium, Director’s Conference, and CUES School of Applied
Strategic Management). The application is easy to complete and is
available at the Southeastern Credit Union Foundation’s website,
www.supportourCUcommunity.org.
According to scholarship recipient Elizabeth Spexarth, branch
manager/HR at Four Seasons Federal Credit Union in Opelika, AL, the
online application process is extremely easy. “The form was very easy
to fill out and the response time was very quick.”
Diane Long, CEO of Calhoun-Liberty Employees Credit Union
in Blountstown, FL, chose to download the application, complete
it, and email it. She called the application process “very simple.”
Long said that Calhoun-Liberty Employees Credit Union has a very
limited budget for education. “If I did not receive the scholarship,
I would not be able to attend the conference [LSCU AC&E],” she
said. “The breakout sessions were very good but the small credit
union roundtable was most beneficial. I came back from the annual
conference pumped up and ready to start new and better ways of
making loans.”
Keith McKinley, CEO of The Infirmary Federal Credit Union in
Mobile, AL, attended the CUNA GAC in March. “The GAC was a
tremendous opportunity for me, as a first-time attendee, to interact
with colleagues and legislators to help promote the credit union
movement,” McKinley said. “The scholarship was extremely beneficial
in providing the funding necessary to attend the GAC. As a small
credit union, we tend to have limited resources to allocate to such
a conference. I am grateful and appreciate the scholarship and the
opportunity to attend the GAC. I look forward to attending many
more,” he added.
If I did not receive the scholarship, I would
not be able to attend the conference [LSCU
AC&E],” she said. “The breakout sessions were
very good but the small credit union roundtable
was most beneficial. I came back from the
annual conference pumped up and ready to
start new and better ways of making loans.
Four Seasons Federal Credit Union’s Spexarth attended CUNA’s
America’s CU Conference. She said she expected to walk away
from the conference with some new marketing and loan ideas.
Spexarth said she also attended sessions focused on the generational
differences and came away with ideas for marketing to members
as well as a better understanding of how employees think. “I gained
some valuable insights into new loan strategies and how to improve
our loan program during difficult times,” she said. “I believe the
information I brought back will be very useful as we plan for our credit
union’s future.”
Debra Childress of COO of HCA Federal Credit Union in Gainesville,
FL also attended CUNA’s America’s CU Conference on a SECUF
scholarship. She noted that as a small credit union, they have faced
some financial challenges and have limited educational resources. “It
is critical that education and training continue,” said Childress, “and
the scholarship provided us with an excellent opportunity to do so.”
For Childress, a primary take away from the conference was the
recognition of staff and how important they are. “They are the back
bone of the credit union. Happy employees drive profits and success
for the credit union. Positive employees pass on positive attitudes and
contribute to the success and continued growth of the credit union.
As management, we need to depend on staff and ask them for more
feedback on what does and does not work. We need to trust their
insight and knowledge since they are the ones on the front line.”
CONTINUED ON PAGE 26
24
VISIONARY
$25,000-$49,000
DREAMER
$10,000-$24,999
HUMANITARIAN
SUPPORTER
$1,000-$9,999
$100-$999
Alabama CU
Alabama Telco CU
Card Services for Credit Unions
Charles Faulkner
Cheaha Chapter of CUs
CUSC of Alabama
Envision CU
FCUSS
Fairwinds CU
Family Security CU
First Commerce CU
First Florida CU
FiServ
Florida CU
Florida West Coast CU
IBM Southeast FCU
Illinois CU League
Jefferson CU
Legacy Community FCU
Listerhill Employees CU
McCoy FCU
Michigan CU League & Affiliates
Mobile Chapter of CUs
Montgomery Chapter of CU
Northeast Alabama Chapter of CUs
Railroad & Industrial FCU
Riverdale CU
San Antonio Citizens FCU
South Florida Educational FCU
State Employees CU
Tampa Bay FCU
Texas CU League
Tropical Financial CU
Tuscaloosa Chapter of CUs
Tyndall FCU
USF FCU
Vining Sparks
Absolute Financial Services
Adena Whitman
Alabama State Employees CU
Alabama Teachers CU
Alive CU
APCO Employees CU
Art & Mary Ott Wood
Auto Advisor Services
Auto Nation
Becki Payne
Cassandra Grayson
Central Florida Chapter of CUs
CFE FCU
Community CU of FL
Craig CU
CUES
Doreen Mayhew, CPA
Elizabeth Chavez
EPL Employees
Florida Central CU
Florida Customs FCU
Guardian CU
IWS
Jared Ross
Jason Cochran
Jason Neifield
Julianne Talley
Julie Renderos
Kansas CU Association
Keith McMurtrie
Kevin Johnson
Laura Vann
Leonard Parkhurst
Linda Darling
Members First CU
Michele Miller
Muscle Shoals Chapter of CUs
Naheola CU
Nancy Blattner
Nearman Maynard Vallez
Neicha Sharpe
Patrick La Pine
Pennsylvania CU League
Robert Beskovoyne
Prime Alliance
Rocky Stewart (Print Resources)
Sara-Mana Chapter of CUs
Scott Bunkers/Insurance
Consultants of Central FL
Susan Johnson
Tampa Postal FCU
Teresa Gray
The Infirmary FCU
Tim McMurry
Tom Garcia
Tori Shamy
William Berg
FRIEND
Under $100
Andy Gonzalez
Anita Fumaria
April Ales
Dan Balogh
David LeNoir
Debbie Caruthers
Diane Troch
Gary Vien
Judy Scott
Mario Garcia
Martin FCU
Mary Elicia Del Santo
Mike Bridges
Mike Couey
Richard Abt
Steve Schipull
Tracy Shimansky
Wanda Chambers
www.lscu.coop
25
SECUF Scholarship Program (Continued)
Childress said that a session featuring author John Izzo, Ph.D. left her
with a lot to ponder. The session, titled “Five Secrets You Must Discover
Before You Die,” made the following points: be true to yourself, leave no
regrets, become love, live the moment—train your mind for happiness,
Debra Childress, CEO of HCA Federal Credit Union in Gainesville, FL,
attended CUNA’s America’s CU Conference on a SECUF scholarship.
and give more than you take. “My behavior and optimism do matter,” said
Childress. “Happiness is a choice. Our attitudes do matter and it filters
over into the success of our credit union.”
Scholarships are still available for 2012 educational events, including
two CUES events. The CUES CEO/Executive Team Network is scheduled for
Nov. 4-7 at The Ritz-Carlton, Palm Beach. The educational and networking
event is designed to build on the legacy of the credit union movement and
shape its future. Topics include integrative thinking and innovative solutions,
enterprise risk management issues, channel management, and the future
of the credit union movement. The CUES Directors Conference will be
held from Dec. 9-12 at Desert Springs, a JW Marriott Resort & Spa in
Palm Desert, CA. This event takes an in-depth look at the governance and
economic issues affecting your credit union.
To apply for a scholarship, visit the Southeastern Credit Union
Foundation’s website at www.supportourCUcommunity.org. For
more information about scholarship availability and eligibility, contact
SECUF Director Leonard Parkhurst at 866.231.0545, x1154 or
leonard.parkhurst@lscu.coop. ■
NETWORK SERVICES
CO-OP Network
By providing service to members who
wish you were everywhere, CO-OP
Network gives you greater accessibility
and convenience through more ATMs
than any bank in the nation.
PAYMENT PROCESSING
CO-OP ATM
CO-OP Debit
CO-OP Credit
Full-Service & In-House
With products to match the largest
ÄUHUJPHSinstitutions, CO-OP handles
all aspects of ATM, credit and debit
transactions to increase revenue
sources and member convenience.
OUR COLLABORATION
CREATES THE CO-OP
FAMILY OF PRODUCTS
AND SERVICES
Offers Cynthia Adams anytimeanywhere access to her money
for a home-field advantage even
when her team is on the road.
E-COMMERCE SOLUTIONS
CO-OP Mobile
CO-OP My Deposit
By introducing innovative technology
to expand access and convenience,
CO-OP keeps you at the forefront of
the latest trends, at minimum cost.
SHARED BRANCH SERVICES
CO-OP Shared Branching
Giving the reach your members expect
from big banks, CO-OP lets you offer
the convenience of the largest credit
union-owned shared branching network
in the country.
CALL CENTER SERVICES
CO-OP Member Services
CO-OP Lending Services
Offering more channels to both satisfy
your members and generate more
revenue, CO-OP Member and Lending
Services meet your high standards,
24/7—without high-overhead, in-house
operations.
To learn more about the
industry’s most comprehensive
and innovative product suite,
visit CO-OPFS.ORG.
©2012 CO-OP Financial Services
EDUCATION
League Education
Effects of Training on Employee Performance
Brandy Norvell, events coordinator, Education, LSCU
Education Staff
Teresa Gray
Director of Events
teresa.gray@lscu.coop
x2110
Julianne Talley
Director of Conferences
julianne.talley@lscu.coop
x1148
Brandy Norvell
Events Coordinator
brandy.norvell@lscu.coop
x2172
Becki Payne
Association Services Support Specialist
becki.payne@lscu.coop
x2129
28
Training plays a key role in employee commitment,
Proper training results in satisfied and
according to Scott Brum of the University of Rhode
productive employees and volunteers. The League
Island. Credit unions are more likely to retain
of Southeastern Credit Unions (LSCU) strives to
employees who view their training as relevant to their
offer training that meets the needs of credit union
jobs and subsequently have a positive commitment
employees across the board, from the front line, to
to their organization. A successful training program
the board of directors.
consists of providing personnel with accurate
Credit unions can reap the rewards of providing
information and communication about the training as
training for their employees and volunteers because
well as ensuring that training is relevant to their jobs.
well-trained workers help increase productivity and
Keeping well-trained employees and volunteers
income. Investing in training should improve worker
pays off significantly for credit unions and other
retention rates, member satisfaction, and creativity
because the cost of employee, board of directors,
for new product ideas. Effective training saves labor
by reducing time spent on problem-solving
and saves money in the long run by
producing a better workforce.
Investment in training can improve
a credit unions financial standing. Poor
performance often results when employees
and volunteers don’t know exactly what
they’re supposed to do, how to do their
jobs, or why they need to work a certain
way. Training can help solve these
performance problems by explaining the
details of the job. Improved performance
from employee training can reduce staff
turnover and result in fewer member
complaints. Better performance from employees Credit unions attend the LSCU Regulatory Compliance Update which
provides training on the most recent regulatory/compliance issues.
typically creates less need for supervision and
and committee turnover can be high. A study by the
brings increased worker output.
University of Wisconsin found that 75 percent of the
Job satisfaction generally increases and selfdemand for new employees was related to replacing
esteem improves when employees and volunteers
workers who left the company.
better understand the workings of the credit union.
The League’s Education department is here to
Training can also enhance morale on the job and
help its credit unions provide relevant top notch
loyalty to the credit union. Workers who believe their
credit union offers excellent training opportunities are
training to their employees and volunteers through
multiple training styles and resources. Visit the LSCU
generally less likely to leave their credit unions within
Events Calendar on www.lscu.coop to view available
a year of training than employees with poor training
education opportunities. If you have any questions
opportunities, according to Howard Community
regarding education events, contact any of LSCU’s
College in Maryland, which points to a poll of
Education Department personnel via email or phone
employees by Louis Harris and Associates.
(866.231.0545). ■
Upcoming 4th Quarter Learning Opportunities
Download the complete 2012 LSCU Events Calendar at www.lscu.coop.
October 2012
2 HR Danger Zones: What You Need to Know to Stay
Out of Trouble
3 Computer Security for All Staff
3 Fall LSCU Council Meeting
St. Augustine, FL
9 LSCU Collections Conference
Birmingham, AL
10 LSCU Bankruptcy Conference
Birmingham, AL
10 Conducting the 2012 ACH Audit
11 Completing the New SAR Line-by-Line: Crimes, People
& Narratives
15-16 Philosophy in Action Workshop
Lake Mary, FL
17 Beyond ALLL Doubt: Methodology & Policy Development
in Uncertain Times
17-18 LSCU IRA Essentials & Advanced Training
Miami, FL
18 LSCU BSA Training Workshop
Muscle Shoals, AL
23 Lending Series: Advanced Underwriting Skills for
Consumer Loans
24 Working with Troubled Members: Loan Extensions,
Deferments, Re-Aging, Refinancing & Incentives
30 Frontline Series: Business Accounts: Who is Authorized
to Open, Close, Transact?
November 2012
7 Director Series: The Board’s Role with the Loan Committee
7-9 LSCU Leadership Development Conference
Point Clear, AL
8 Top 10 IRA Issues: Compliance, Minimum Distributions,
Reporting & Year-End Issues
13 Completing the New CTR Line-by-Line: People,
Businesses & Fiduciaries
14 10 Steps to Increased Loan Growth
15 Vendor Due Diligence & Effective Vendor
Management Programs
27 Debit Card Error Resolution & Regulation E Investigations
28 Legal Update - Loans: 2012 in Review
29 Required Compliance Series: Robbery Preparedness
for All Staff
December 2012
4 Escrow Account Compliance
5 Opening Trust Accounts: Documentation, Authority, Liability
6 The Last Frontier: Risks & Opportunities for Business Loans
11 Unfair, Deceptive & Abusive Practices: Is Your Credit
Union at Risk?
12 Legal Update - Deposit Operations: 2012 in Review
13 Credit Union Business Documents: Email & ESI Retention/
Destruction Policies & Procedures
18 Regulation E Alert: New Requirements for Consumer Foreign
Remittance Transfers
19 Bankruptcy Today: Reporting, Proof of Claims
& Identifying Fraud
*Bolded listings denote workshops and conferences. Non-bolded listings denote webinars.
2012 Leadership Development Conference
November 7-10, 2012 | Point Clear, AL | www.lsculeadership.com
COMMUNICATIONS
Why Facebook Is Quickly Becoming
the Credit Union Tool of Choice
Joseph Davis, communications coordinator, Communications, LSCU
Liked
Message
Credit unions should be utilizing Facebook to connect
and engage membership
Photos
What if credit unions had a tool that altered the traditional
methods of doing business? What if something came along that
changed the way credit unions interacted with membership? It
has. For many businesses-big or small-the use of digital tools has
created a groundswell of ingenuity around making business better
and more successful.
For the better part of a decade, digital media has rapidly
closed the distance between business and consumer.
Specifically, social media has become the driving force behind
sentiment, buying decisions, and influence. Social media
is commonly referred to as a medium that connects users
through channels in a digital space. Right now-and for the last
nine years or so-Facebook has been king of the social media
landscape. According to Facebook Inc., the social network
titan currently has 955 million active users – not to mention
137 million unique visitors in the U.S. per month. Imagine the
influence more than 900 million people have.
Why is this important for credit unions? Well, now credit unions
have access to users in their target market and friends of those users
who may be potential credit union members. There isn’t a better time
for credit unions to leverage a social network that is not only free, but
the most popular social networking tool for marketing on the web with
a 92-percent marketer preference (Source: thesocialskinny.com).
30
Likes
Events
Actively Incorporating Facebook into
Marketing Initiatives
At a time when corporations such as Nike, Coca-Cola, Red Bull,
and Disney are harnessing the power of Facebook as a tool for
business, financial institutions and small businesses have a placespecifically credit unions. In Facebook research statistics recently
published by thesocialskinny.com, it’s noted that 80 percent of
U.S. social network users prefer to connect with brands through
Facebook. For the credit union brand, this can be optimal territory
for promoting the credit union difference.
Now, the means by which credit unions grow membership has
accelerated. Many are placing more of a strategic focus on Facebook
and social media as tools to market their credit union and engage
their membership. “On Facebook, interacting and engaging with fans
is paramount,” said First Commerce Credit Union eServices Manager
Nick Chiamardas. “We try to post about things that people want to
read, like, and comment about. Because Facebook is open for public
consumption, credit unions must be prepared to address member
service, right there in the public eye.”
Not only does the use of a social network such as
Facebook increase the opportunities to brand more efficiently,
it allows credit unions to remain relevant in an evolving space.
Marketing to membership-and potential membership-can
be tricky terrain considering the level of interaction and
information that many consumers desire.
League of Southeastern Cred...
At America’s First Federal Credit Union in Alabama, they
have come to understand the fine line between marketing their
credit union and delivering what members want. “We have spent
a lot of time researching different types of content and how our
audience responds to it,” says America’s First eServices Manager
Zack Sylvan in reference to the credit union’s use of Facebook.
“At America’s First, we’ve been very considerate of the fact that
we’re operating in our fan’s space, and we don’t want to lose their
trust by constantly blasting out pushy marketing messages.” It’s
important to remember that Facebook, as well as the myriad of
other social networks require forethought and a content plan that
speak to credit union values.
Shifting the Focus of Traditional Member
Connections
The credit union industry prides itself on member service and
reliable banking. What is more and more evident throughout the
last decade is the fact that the industry has evolved in the way it
connects with membership. This is also true in other customercentric industries.
No longer are members bound to entering the branch.
Convenience and ease-of-use have begun to take the place of
the teller line. Deposit slips are no longer stacked in one’s car
glove box for the next branch visit. Credit union transactions
are now frequently digital, mobile, and paperless. But what
Facebook and other social networks have done is allow credit
unions to remain top-of-mind and connected when members
aren’t making transactions. Print and direct mail pieces have
become cumbersome and more expensive-thus, less efficient.
Credit unions are finding that they can now expand the use of
Facebook and other social media channels. Facebook pages now
aid in online branding, some even taking the place of traditional
webpages. Facebook is often used for crowdsourcing marketing
ideas and research. For example, Frito-Lay was able to use
Facebook to find out what its fans liked and what its new Dorito
chip flavor should be, leading to the production of a fan-developed
flavor. Of course credit unions aren’t looking to use Facebook to find
potato chip flavors, but they are looking to display custom content
like multimedia as well as find out the percentage of members that
prefer connecting through social channels. Credit unions also have
the ability to enhance SEO (search engine optimization) through
a Facebook presence, transition page fans to their website, and
possibly recruit staff and/or membership through Facebook.
Home
Facebook’s Role in Engaging Credit Unions with
Members
“Ninety-three percent of U.S. adults are now on Facebook
(Source: BlogHer, April 2011),” Chiamardas said. “Facebook
isn’t just for younger generations. The fastest growing age
demographic on Facebook is ages 50 and above (Source:
Pew Research Center, 2010). I think it’s finally safe to say that
Facebook isn’t just a fad. Still, at its core, Facebook is about
engagement.” With this in mind, Facebook and other emerging
social networks have taken on a new role in connecting credit
unions with members.
Facebook has quickly become more than a connection point
for credit unions and membership, it’s serving as a means for
customer service and meaningful engagement. When asked about
Facebook’s role in member relations, Tropical Financial Credit Union
VP, Marketing Amy McGraw said, “We have to be looking for ways
to make social networks useful for our members in the financial
services realm; engagement is one of them.” McGraw explained
how credit unions should be focused on being a trusted source for
financial information, by educating and informing members through
digital means—namely social media.
In terms of using Facebook for customer service and awareness,
McGraw said that Tropical Financial has had “several members
go through the message feature on Facebook to ask questions
regarding auto loans and mortgages, allowing us to directly
connect that person with a loan officer to get their needs taken
care of.” The reach of credit unions has been extended because of
Facebook, making it a vital marketing and customer service tool.
Understanding the network’s ever-expanding potential, credit unions
that have already established trust through engaging membership
will thrive much more swiftly than those that have not.
“The extent to which credit unions can successfully connect with
members on Facebook (and other social media platforms) lies in their
ability to provide great and relevant content to users, the ability to be
‘likable,’ and the ability to create and deliver interesting messages that
can be integrated across many channels,” Sylvan noted.
Whether your credit union has utilized Facebook to market and
engage members or you’re hesitant on making the tool a focal
point of your marketing, it can deliver a real impact. Sure, there will
always be value in interacting with members face-to-face, but as
the internet eliminates that need, credit unions will have to adapt.
Social media has become ubiquitous in business and has firmly
asserted itself as an integral industry of growth. If credit unions are
truly dedicated to member service, making the choice to connect
with members within their preferred space should be simple. ■
www.lscu.coop
31
Thank You
Thank you for your part in another successful cooperative image campaign. Close to $1.3 million was raised by 113
participating credit unions across Alabama and Florida. In 2012, 33 new credit unions joined in sending the message that
credit unions are giving banking a better name. Your support, monetarily and cooperatively, has allowed Alabama and Florida
credit unions to continue educating consumers in both states about credit unions.
121 Financial CU
Achieva CU
Alabama CU
Alabama River Emp. CU
Alabama Rural Electric FCU
Alabama State Employees CU
Alabama Teachers CU
Alabama Telco CU
Alive CU
America’s First FCU
Andalusia Mills Empl. FCU
APCO Employees CU
Army Aviation Center FCU
Azalea City CU
Baptist Health South Florida FCU
Blue Flame CU
Brassies CU
BrightStar CU
Broward HealthCare FCU
Buckeye Community FCU
Campus USA CU
Central Florida Postal CU
CFE FCU
Champion Community CU
Chattahoochee FCU
City County CU
Community CU
Community CU of Florida
Councill FCU
Craig CU
Darden Employees FCU
DCH CU
East Alabama Community FCU
eCo CU
Energen CU
Envision CU
FAIRWINDS CU
Family Savings FCU
Family Security CU
Farmers FCU
Federal Employees CU
Fedmont FCU
First Commerce CU
First Florida CU
First Kingdom Comm. Dev. FCU
Five Star CU
Flag CU
Florida A & M University FCU
Florida Central CU
Florida CU
Florida Customs FCU
Florida State Employees FCU
Florida West Coast CU
Four Seasons FCU
GTE FCU
Guardian CU
Gulf Coast FCU
Health CU
IBM Southeast EFCU
Jacksonville Firemen’s CU
Jax FCU
Jax Metro CU
Jefferson Co. Employees CU
JM Associates FCU
Lauderdale Co. Teachers CU
Lee County Mosquito Control CU
Legacy Community FCU
Local 606 Elec. Workers FCU
Manatee Community FCU
McCoy FCU
Mead Coated Board FCU
Members First CU of Florida
Memorial Employees FCU
Miami Postal Service CU
Milestone CU
Mobile Chapter
Mobile Educators CU
Mobile Postal Employees CU
Naheola CU
NUCOR Employees FCU
Okaloosa Cnty Teachers FCU
Orlando FCU
PBC CU
Pen Air FCU
Pinellas FCU
Pompano Beach City ECU
Priority One CU of Florida
Progressive FCU
Railroad & Industrial FCU
Riverdale CU
Rocket City FCU
San Antonio Citizens FCU
Sarasota Municipal ECU
Service 1st CU
Shoreline CU
South Florida Educational FCU
State Employees CU
Suncoast Schools FCU
Tallahassee-Leon FCU
The Infirmary FCU
TMH FCU
Tri-Rivers FCU
Tropical Financial CU
Tuscaloosa Teachers CU
TVA CU
Tyndall FCU
United Police FCU
University of South AL FCU
USF FCU
VyStar CU
West Coast FCU
West Coast Federal ECU
Wiregrass FCU
Wolverine CU
NEWS
League News
2012 LSCU Supervisory Committee Conference “A Wonderful & Informative Conference”
The 2012 LSCU Supervisory Committee Conference, held in August,
had a record attendance of 149 attendees and guests representing 48
credit unions. Attendees heard from Tim Harrington, CPA, president of
TEAM Resources, as he broke down the roles of the board of directors,
supervisory committee, and CEO and described how the three entities
work together to keep the credit union afloat and in good standing.
Steven Rick, Catherine Bruder, and Robin Hoag also presented in depth,
highly-evaluated sessions covering the state of the economy, IT risk,
and ERM. NCUA Economic
Development Specialist
Lisa Terrell and attendees
discussed practices
that NCUA examiners
wish every supervisory
committee had in place.
For the newer supervisory
committee members,
two in-depth sessions
were offered, covering
the fundamentals of the
supervisory committee
and how best to carry out the duties of the position as well as required
annual BSA training.
Eugene Johnston, secretary of the supervisory committee at Azalea
City CU commented, “I had a great time and got a number of good
ideas. We had our meeting last week and I gave our CEO a long list of
things I think we can do or improve upon in the future. Thank you again
for a wonderful and informative conference.” ■
NEWS
2012 AC&E Highlights
With the theme “The Power of One:
e: One Vision and One Voice,” more than 1,000 credit union executives, staff, volunteers, and
guests attended the 2012 LSCU Annual Convention and Exposition (AC&E) June 13-15 in Orlando. The AC&E featured Game
Change authors Mark Halperin and John Heilemann, as well as 20 educational breakout sessions that were overflowing,
and six hours of exhibit hall time. The silent auction brought in more than we’ve ever collected before: a total of
$13,879.00 was raised pluss a $10,000 CO-OP match that is in process, totaling $23,879.00 raised for Children’s
Miracle Network! Eleven-year-old
-year-old piano prodigy Ethan Bortnick provided the entertainment. The LSCU AC&E is one
of the largest credit unionn annual conventions in the country. ■
34
Save the date for
next year’s AC&E
Download pictures at www.lscuconvention.com.
June 12-15, 2013
JW Marriott Orlando | Grand Lakes Resort!
www.lscu.coop
35
INDUSTRY
Industry
The Justices Have Spoken: The Affordable Care Act Is Upheld. Let the Compliance Begin!
Mary Miller, manager, Employee Group Benefits for CUNA Mutual Group
The Supreme Court made it official: It’s full speed ahead with
compliance and strategic planning to implement the remaining
provisions of the Patient Protection and Affordable Care Act (ACA).
Some states have been hard at work since the law went into
effect in March 2010. Of course, not all states were enthusiastic
about the healthcare reform and chose instead to either challenge
the law or to wait and watch as other states filed suit. And some
states are awaiting the results of November elections in hopes
that power will shift to Republicans, such as Mitt Romney, who
have vowed to repeal and replace the existing law. Even states
that politically supported ACA may have waited on implementation
planning out of fear of investing too much time and too many
resources in a program ultimately declared unconstitutional.
Regardless, everyone has the green light for now.
In fact, the clock has already started ticking, rules are in effect,
and compliance really can’t wait. As things stand now, employers
are required to fulfill the ACA requirements that have already been
implemented as long as the law is in effect.
Credit unions are, naturally, among the employers faced with
the task of reviewing existing health care plans and revising
them in order to comply with ACA. While some questions about
implementation remain, several components of the 2010 legislation
are already established with guidelines regarding compliance.
Because of ACA, fully insured plans must now reveal how
much of premium dollars they actually spent on health care and
administrative expenses. Your credit union may qualify for a rebate if
the insurance company spent less than 80 percent of premiums on
medical care (85 percent in the large group market). Credit unions
should have received notification from their insurance carriers
indicating whether they met or exceeded this standard. The rebates
must be paid by August 1 each year and must be distributed to
participants in accordance with Department of Labor guidance.
Other provisions of the health care reform law that are not currently
in effect will continue to be implemented. Of course, the biggest of the
ACA changes affects states, not employers, and is a little further down
the road. The state exchanges are supposed to go live on January 1,
36
2014. A federal exchange is in development to fill gaps for states that
have not moved forward to develop their own exchanges or for those
behind schedule. Employers should note that they will be required to
provide exchange-related notices to plan participants ten months prior
to the exchange launch (by March 2013).
There are many significant changes coming in 2014. This is
also when the “pay or play” penalties that will affect employers
with at least 50 full-time equivalent employees kick in. “Pay or
play” requires credit unions to provide eligibility for coverage to
any employees working 30 or more hours per week. Larger credit
unions should take note: This could dramatically increase costs for
credit unions with significant part-time rosters, typically comprised
of front-line employees, if no strategic action is taken to optimize
scheduling in light of the new regulations.
Obviously, the “pay or play” provision means that ignoring the
mandate is not an option. If one or more of a credit union’s full-time
employees obtain a premium credit through an exchange, the credit
union will pay a penalty. An employee can earn a premium credit
if an employer does not offer health coverage or if the coverage is
not deemed affordable or if it does not provide minimum value. It is
imperative that credit unions work with their carriers to ensure that
their plans meet statutory requirements.
While the list of changes and requirements seems long, the
reality is that employer attitudes about health care coverage have
not really changed much. Early modeling indicates that most
employers both desire and expect to continue offering health
insurance plans similar to what they currently provide. Further,
credit unions are well known in the financial services industry
Health insurance benefits have long been
a priority to credit unions and a recognized
asset in attracting quality employees.
for their robust benefits packages even as coverages elsewhere
dwindle. Health insurance benefits have long been a priority to
credit unions and a recognized asset in attracting quality employees.
Even so, all employers—including credit unions —will need to
continue to work on controlling managed care costs. The goal of
healthcare reform is to insure more Americans, and employers
are expected to shoulder a share of that burden. More employees
on plan rosters will drive up costs, particularly for employers that
already pay a high proportion of benefits expenses.
Early planning can help blunt the impact of ACA
requirements that are a couple of years off.
Despite some of the rhetoric, the outlook for credit
unions is not at all grim and they need not fear a
dramatically different benefits landscape if they begin
preparing for and implementing changes now. New
requirements and costs are coming, but there has
been adequate notice and time to plan and implement
them. Those employers that look ahead and act
proactively should be able to continue providing the
coverage and control that they desire, and they should
be able to maintain the kinds of benefits offerings they
use in recruitment.
Also, the marketplace factors that the exchanges
will usher in could present new, currently unidentified,
opportunities to both insurers and employers. As health
costs rise, a renewed focus on more control over the
employer’s contribution exposure has spurred interest
in “defined contribution” health plans in conjunction
with private
ate health insurance exchanges. The forwardlooking credit
redit unions that move ahead confidently will
be in the best position to take advantage of these and
other innovations
ovations that emerge.
Of course
urse things can change—and they frequently
do. What is a good guiding principle now may
be misguided
ided in six months. Credit
unions should
hould stay in touch
with their carriers and benefits
consultants
nts to ensure that what
is a soundd compliance plan now
remains a prudent strategy this
time next year. ■
Healthcare spend is one of the most
pressing issues facing businesses
today. While most credit unions are
unwilling to eliminate employersponsored health plans altogether,
they struggle to find ways to
effectively manage skyrocketing
premiums without sacrificing
employee benefits. LEVERAGE
continues to research and address
the implications of healthcare reform,
its possible effects on health plans,
and strategies credit unions can use
to save money amidst the volatility.
www.lscu.coop
37
Cross-Selling to Members
from Indirect Lending
Mary Elicia Del Santo, vice president, Business Development, LEVERAGE
Cross-selling credit union products to members whose
relationship originated from indirect loans is not for the faint of heart.
During our recent LSCU Annual Convention and Exhibition (AC&E)
I spoke with several credit unions who still struggle with expanding
those member relationships. This certainly isn’t a new challenge. I’ve
been having this conversation for almost 10 years now. The good
news is that with credit unions eager to make loans, the avenues for
indirect lending have expanded beyond the typical auto loan. Pointof-sale merchant lending has increased the opportunities to reach
out to even more potential members who have not walked through
your lobby doors. These loans can range from medical procedures to
golf carts and bring in a whole new crowd of members to your credit
union. Here are some recommendations to help you achieve success
in cross-selling to these new members.
Be Committed
You must be committed to making cross-selling part of your sales
objectives. Your program won’t be successful if you don’t consider
it an ongoing program that includes both your lending team and
your sales team. For best results cross-selling activities should be
conducted weekly and that means a commitment of staff, time, and
technology resources.
Cultivate Merchant Relationships
The credit union member relationship starts with the merchant.
The stronger the relationship between the credit union and the
merchant, the better advocate you will have in representing your
credit union. Assign the merchant a relationship manager. This
person’s role will be to visit them and provide ongoing support and
communication. If you and your indirect partner work well together,
this will create a positive experience for the member and, in turn, set
the stage for establishing additional business.
38
Utilize Incoming Information
Once you’ve received the credit application from a merchant, you
have invaluable insight into what the member may be interested in for
additional products and services. Review the application for clues to
identify where the member is in their financial life cycle. For example,
someone that is in the early stages of their financial life cycle and
renting their residence may be interested in looking into a mortgage.
Identifying where a member is in their financial life cycle will indicate
what product and service offerings may resonate with them. Doing
your homework to identify potential needs will pay off when it comes
time to reach out to that member.
Develop a Process
Consistently following a plan will yield dividends. Statistics show
that companies that deploy a formal sales process, when compared
to the mean, win 48 percent more, have sales cycles 37 percent
shorter, and generate two times the revenue per head. Elements
of a good indirect cross-selling process should include welcome,
education, offering alignment, follow-up, and tracking.
Welcome
Welcoming the new member to your credit union should be your first
point of contact. We all know we should do it but sometimes we forget
to just simply thank them for their business. During this phase you can
confirm information of their purchase. Are you happy with the hot tub
you purchased? How would you prefer that we contact you? You can
also experience additional benefits like helping to ward off delinquencies
and fraud by building strong relationships right at the start.
Education
Many new indirect borrowers don’t realize that, because they
received their loan financed through the credit union, they become
Almost $2 Million Saved Through
ePurchasing Events
Credit unions are leveraging their buying power, reducing capital, and seeing real savings
on everyday products like ATMs, armored cars, janitorial services, computer equipment, and
more through the LEVERAGE ePurchasing platform. The platform, powered by Ventelligence,
encourages competing companies to more aggressively bid for the business, ultimately providing
participating credit unions with an average immediate savings of more than 20 percent! Plus, a
reduction in staff hours is seen because we look for competing vendors to bid on the business.
Powered By:
Credit unions are able to save on almost anything they need. Since 2008, 61 participating credit unions have saved
almost $2 Million through ePurchasing events. Even more impressive than these savings is that it represents the savings
experienced after credit unions received their lowest paper bid.
a member. In fact research shows that 60 percent of
consumers don’t know what a credit union is. This is an
excellent opportunity to educate the member about the
difference between your credit union and other financial
institutions. By illustrating the value of joining the credit
union, you’re telling the story that credit unions are giving
banking a better name.
Offering Alignment
Utilize the homework you did earlier when you received
the indirect borrower’s information from the merchant.
As stated above, identify where they are in their financial
life cycle. By doing this, you can match your product and
service offering to their needs.
Follow Up
Be consistent with your follow-up. Studies reveal that
only two percent of sales occur during the first contact, 10
percent are in the fourth contact, but 80 percent are after
the fifth contact. In other words, you should follow up at
least five times. The number of contacts is only part of the
equation. They way you follow up is critically important.
Use the borrower’s preference of communication. If you’ve
identified the communication preference in the welcome,
your job is easy. If a member has indicated that they do not
like phone calls or email, try a hand written thank you note
or mail offering. If they are always texting or utilizing their
smart phone, use email. The point is to communicate to the
member in the way they want to be communicated.
Tracking
Last but not least track your results. Tracking will
not only gauge your success but it will also hold you
accountable for performing the activities.
Overcome Objections
Be prepared to overcome objections and try turning
a negative into a positive. One of the most common
objections from indirect borrowers is that the branch is
not convenient for them. For example, after
asking some need-determining questions,
a credit union employee uncovered that
a member, an indirect borrower, had
been trying to save money but was
having difficulty. In this case, opening a
savings account with direct deposit would
help them put the funds away and the
distance to the branch would deter them
from taking the funds out. In this example, the
inconvenience actually turned out to be a positive
and the member appreciated the consultative
approach. Members can tell whether you’re
just trying to product push, or you’re
really trying to meet their
financial needs. Being
authentic and genuine
will build a long-term
relationship.
If you’re committed
to cross-selling to
those members
who have found
their way to
you through a
merchant, you
can increase
wallet share;
however, you do have to work at it. ■
www.lscu.coop
39
Product Support
ELT Process Mandated in Florida - Many Benefits to System
Keith Hopkins, vice president, Product Support, LEVERAGE
Many credit unions today utilize electronic lien and title (ELT)
program to manage their new and used car titles. Credit unions
that have utilized this process did so voluntarily, as Florida was not
a state that mandated the use of ELT registration. However, that all
changed during Florida’s 2012 Legislative Session. As of January
1, 2013, Florida statutes 319.27 and 328.15 will include the new
requirement, which is aimed at reducing title fraud and providing
faster notification of lien satisfaction.
As many credit unions already know, there are many benefits to
the ELT system. They include:
• Reduction of title paper usage
• Reduces title fraud
• Faster notification of lien satisfactions
• Reduction in storage of title documents
• Access to expedited title printing
• Better customer service
• Reduced costs
The cost and time savings represented above, can really
streamline credit union business process.
The new law is required for any credit union that is titling a
vehicle in Florida. Though Alabama does not currently have a
system in place for ELT, we will monitor upcoming legislative
sessions for activity relating to the implementation of title
requirements. The move to electronic from paper titling is now
mandatory in several states. Florida and Georgia are the most
recent adopters, both requiring January 1, 2013 compliance. In
total, there are 11 states currently requiring electronic titles, with
several states in the process of considering legislation.
To assist with this transition, LEVERAGE has partnered with
VINtek, a provider of automotive collateral management and electronic
lien and title (ELT) services for automotive finance lenders. For more
information about VINtek contact a LEVERAGE Business Development
Consultant at consult@myleverage.com. ■
40
DIRECTORY
LSCU Directory
LEAGUE
22 Inverness Center Pkwy, Ste 200
Birmingham, Alabama, 35242
3773 Commonwealth Blvd
Tallahassee, Florida 32303
866.231.0545
Administration
Patrick La Pine, x1002
President & CEO
patrick.lapine@lscu.coop
LEVERAGE
April N. Ales, x1038
april.ales@lscu.coop
David LeNoir, x2158
david.lenoir@lscu.coop
Judy Scott, x1062
judy.scott@lscu.coop
Cassandra Grayson, x1004
Association Services Chief of Staff
cassandra.grayson@lscu.coop
Leonard Parkhurst, Jr., x1154
Director, Southeastern Credit
Union Foundation
leonard.parkhurst@lscu.coop
Brooke Collins, x1050
Executive Assistant
brooke.collins@myleverage.com
Education
Communications
Mike Bridges, x1022
VP, Communications & Marketing
mike.bridges@lscu.coop
Amy Jowers, x1020
Director, Information Services
amy.jowers@lscu.coop
Joseph Davis, x1014
Communications Coordinator
joseph.davis@lscu.coop
Compliance
Bill Berg, x1028
VP, Compliance Training & Information
bill.berg@lscu.coop
Scott Morris, x2165
Director, Regulatory Advocacy
scott.morris@lscu.coop
Laura Vann, x2181
VP, Cooperative Initiatives
laura.vann@lscu.coop
Adena Whitman, x2134
Director, Member Relations
adena.whitman@lscu.coop
Julianne Talley, x1148
Director, Conferences
julianne.talley@lscu.coop
Teresa Gray, x2110
Director, Events
teresa.gray@lscu.coop
Brandy Norvell, x2172
Events Coordinator
brandy.norvell@lscu.coop
Becki Payne, x2129
Association Services Support Specialist
becki.payne@lscu.coop
Governmental Affairs
Jared Ross, x1012
VP, Governmental Affairs
jared.ross@lscu.coop
Jason Cochran, x2159
Director, Governmental Affairs (AL)
jason.cochran@lscu.coop
Blake Westbrook, x2164
Grassroots & Political Action Coordinator (AL)
blake.westbrook@lscu.coop
Andrew Gonzalez, x1010
Grassroots & Political Action Coordinator (FL)
andrew.gonzalez@lscu.coop
Finance & Administration
Scott Morgan, x1110
SVP, Finance & Administration
scott.morgan@lscu.coop
Debbie Caruthers, x1116
Director, Accounting
debbie.caruthers@lscu.coop
Marvin Garland, x1102
EVP & COO
marvin.garland@myleverage.com
Transactional Services
Larry Rodriguez, x2169
VP, Transactional Services
larry.rodriguez@myleverage.com
Mike Couey, x2136
Accounting Manager
mike.couey@lscu.coop
Janice Jordan, x2176
Director, Transactional Services
janice.jordan@myleverage.com
Chris Staggs, x2127
Staff Accountant
chris.staggs@lscu.coop
Win Cooper, x2115
Sr. Transactional Services Specialist
win.cooper@myleverage.com
Susan Sungelo, x2153
Staff Accountant
susan.sungelo@lscu.coop
Lynda Knox, x2135
Service Corporation Support Specialist
lynda.knox@myleverage.com
Angie Meisenheimer, x1114
Staff Accountant
angie.meisenheimer@lscu.coop
Chris Dirmann, x1182
Director, Card Services
chris.dirmann@myleverage.com
Josh Booth, x1118
Staff Accountant
josh.booth@lscu.coop
David Todd, x1198
Member Services Representative
david.todd@myleverage.com
Jason Neifield, x1142
Human Resources Manager
jason.neifield@lscu.coop
Robert Plant, x1194
P/T Member Services Representative
robert.plant@myleverage.com
Di Troch, x1054
Operations Assistant
diana.troch@lscu.coop
Linda Medina, x1200
linda.medina@myleverage.com
Sue McKenzie, x1124
Operations Assistant
sue.mckenzie@lscu.coop
Angela Harris, x1190
Card Services Manager
angela.harris@myleverage.com
Tameka Dukes, x2178
Shared Branching Manager
tameka.dukes@lscu.coop
Amy Bryant, x1196
Sr. Member Services Representative
amy.bryant@myleverage.com
Phillip Tyre, x1132
Director, Information Technology
phillip.tyre@lscu.coop
Belinda Wilson, x1184
belinda.wilson@myleverage.com
Tyrell Baker, x1136
Network Administrator
tyrell.baker@lscu.coop
Barbara Parsont, x1186
barbara.parsont@myleverage.com
Michelle Kelly, x1192
michelle.kelly@myleverage.com
42
Audit & Consulting
Business Development
Keith McMurtrie, x2133
VP, Audit & Consulting
keith.mcmurtrie@myleverage.com
Mary Elicia Del Santo, x1144
VP, Business Development
me.delsanto@myleverage.com
Bonique Turner, x2124
Auditor
bonique.turner@myleverage.com
Anita Fumaria, x1140
Business Development Consultant
anita.fumaria@myleverage.com
CUNA Mutual Group
Telecom Recovery
Insurance and protection for your credit
union and members; lending solutions
and marketing programs for bottom-line
impact; employee benefits to recruit
and retain the right employees. CUNA
Quickly recover communications in the
event of a disruption in telephone service.
Telecom Recovery offers an affordable
protection service that enables callers
to get through to a credit union’s main
phone or fax number, through rerouting
technology and recover inbound calls to
mass notification. That’s Life
LEVERAGE’s merchant lending platform
links credit unions with businesses in
their communities to provide point-of-sale
financing to consumers.
Strategic Services, Inc.
Access for credit unions to products,
services, and technologies.
Kathy Reynolds, x2121
Auditor
kathy.reynolds@myleverage.com
Steve Pullara, x1164
steve.pullara@myleverage.com
Marya Sampson, x2132
Auditor
marya.sampson@myleverage.com
Michael Baswell, x2151
michael.baswell@myleverage.com
Earn non-interest income and provide
an overdraft protection program to your
members.
Product Management
Richard Abt, x1152
Account Manager, Card Services
richard.abt@myleverage.com
Landrum Professional
Keith Hopkins, x1170
VP, Product Support
keith.hopkins@myleverage.com
Deirdre Rhodes, x1104
Product Support Manager
deirdre.rhodes@myleverage.com
Jean Noel, x1188
Product Support Specialist
jean.noel@myleverage.com
Lori Vary, 941.747.9646
Director, ePurchasing
lori.vary@myleverage.com
Brandt Vinson, x1044
ePurchasing Coordinator
brandt.vinson@myleverage.com
Tori Shamy, x1172
Product Manager, Merchant Lending
tori.shamy@myleverage.com
Marketing
April Banta, x1162
Director, Marketing
april.banta@myleverage.com
Detra White, x1156
Production Artist
detra.white@myleverage.com
Ron Dod, x1030
Marketing Coordinator
ron.dod@myleverage.com
Product Development
John Brumit, x1120
Director, Product Development
john.brumit@myleverage.com
LEVERAGE PARTNERS
CO-OP Financial Services
Enhance services to your members by
expanding your ATM service delivery
channels through more than 28,000
surcharge-free ATMs.
ComplyTrac
Automated compliance solution that
streamlines compliance procedures and
reduces costs through procedural controls
to meet compliance requirements on
a single platform and helps effectively
execute regulations through automated
software.
Corporate Business Solutions
Streamline and enhance your payroll,
benefits administration, and employee
legal compliance processes by outsourcing
to Corporate Business Solutions, a
Professional Employer (PEO) and
Administrative Services Organization (ASO).
CU Members Mortgage
Earn fee income based upon your
participation in the origination and/or
temporary funding of loans and build your
mortgage loan portfolio.
John M. Floyd & Associates
Outsource most of your daily human
resources functions with Landrum
Professional, a full-service PEO.
NADA
Access the most current used vehicle
values and new vehicle invoices for a wide
range of vehicles, 24/7.
NewGround
Enhance your retail delivery with a
combination of branding, consulting,
branch design and build, marketing, and
culture development.
Office Depot
Save money on office supplies, break room
supplies, promotional products, furniture,
and computers.
OneMain Financial
Solve out-of-area repossession needs with
experts dedicated to providing the most
up-to-date information including state
laws, FDCPA laws and regulations, and the
newest tracking software.
O’Rourke & Associates
An exclusive credit union focus on
executive and management recruiting.
Remarketing by GE
VERAFIN
Detect BSA/AML fraud with leading-edge
compliance and fraud detection software.
Vining Sparks
Combining strategic support services with
broad trading capabilities to execute fixed
income securities transactions.
VINtek
Complete collateral management solutions
help increase operational efficiencies by
streamlining processes, reducing user
errors, and managing expenses every day.
For more information on any of these
solutions, contact a Business Development
Consultant at consult@myleverage.com or
visit www.myleverage.com.
For information on partnership with
LEVERAGE, contact a Product Development
Consultant at partner@myleverage.com.
Corporate CU PARTNERS
Corporate America Credit Union
Thomas D. Bonds, president
4365 Crescent Road
Irondale AL 35210
205.313.4300
www.corpam.org
Take advantage of preferred auction lanes
and best-in-class processes to maximize
your recovery dollars for auto liquidation.
CU Solutions Group
CU Solutions Group provides credit
unions with marketing, membership
enhancements, technology, and
performance management solutions.
www.lscu.coop
43
SIGNAL MAGAZINE RETURN ADDRESS
3773 COMMONWEALTH BOULEVARD
TALLAHASSEE FL 32303
22 INVERNESS CENTER PARKWAY, #200
BIRMINGHAM AL 35242
LEADERSHIP
guide people toward great
accomplishments
EDUCATION
better your knowledge to
positively affect operations
ACHIEVEMENT
realize your goals by
expanding expertise
DEVELOPMENT
build industry relationships to
cultivate higher development
Attend the LDC!
DEVELOP YOUR
2012 Leadership Development Conference
November 7-10, 2012 | Point Clear, AL
w w w.l s c u l e ad e r s h i p.c o m

Q3 2012 LSCU Signal Magazine.indd

Transcription

Similar documents

OUR TOP PRIORITY! - Truliant Federal Credit Union

bellyacher

RESP 6x4 CMYK 150902

Welcome to WESTconsin Credit Union

Silver Hill - Democracy Federal Credit Union > Home

Legacies - The California and Nevada Credit Union Leagues

FAMILY MEMBERS WELCOME - ACIPCO Federal Credit Union

Pull the Plug on Scammers! - 121 Financial Credit Union

check out - Synergent

June 2012 - the UltraData Enterprise Users Group