Bridging the Gap - Cornerstone Credit Union League

Transcription

L
NESTAR
Perspectives
The Official Publication of Texas Credit Union League
Summer 2006
Bridging the Gap
The Importance
of Community
Involvement
Striking a Balance: HighTech and High Touch | In Times of Crisis: Is Your Credit Union Prepared for Disaster
Contents
TEXAS CREDIT UNION LEAGUE
EDITORIAL
Managing Editor, Linda Webb-Mañon,
Associate Editor, Allison Castle
Contributing Writer, Allison Griffin
Contributing Writer, Lucinda Rocha
ADVERTISING
Advertising Sales Director, Rick Grady
Account Executive, Tom Hodge
Advertising Design Director, Steve Stovall
BUSINESS
Chief Operations Officer, Bob Gallman
Communications Administrator, Mikki Stokes
Subscription Coordinator, Sue Epperson
HOW TO REACH US
Mail
4455 LBJ Freeway, Suite 1000
Farmers Branch, TX 75244-5998
e-mail: lwebb-manon@tcul.coop
Web site: www.tcul.coop <http://www.tcul.coop>
Main Office: (469) 385-6414
(800) 442-5762, Ext. 6414
Editorial: (469) 385-6486
Advertising Sales: (469) 385-6485
Advertising Design: (469) 385-6473
Subscriptions: (469) 385-6483
Letters to the Editor: lwebb-manon@tcul.coop
LoneStar Perspectives is a quarterly publication of the
Texas Credit Union League (TCUL) and is offered to
TCUL–affiliated credit unions as a dues-supported service.
If you are not an employee or volunteer of a Leagueaffiliated credit union and would like to subscribe to this
publication, an annual subscription rate of $20 is available.
LoneStar Perspectives is a trademark used herein under
license. Copyright 2006 by Texas Credit Union League.
All rights reserved.
16
FEATURES
10 Community Involvement
Brings ‘People Helping People’ Philosophy to Life
By Allison Griffin
16 How A Bill Becomes Law in Texas
The biggest obstacle for any bill is making its way out of the
committee process
By Allison Castle
19 ‘At risk’ teen proves she’s anything but…
Credit union/school program helps prepare teens for business world
By Linda Webb-Mañon
DEPARTMENTS
2
Products and Services
Community Investment Funds, by Jill Pharr
MAGAZINE PARTNERS
4
Kristen Bohn
6
Kelly Ryan Murphy
Brian Smith
8
BUSINESS DEVELOPMENT DIRECTOR
9
ACCOUNT SERVICES DIRECTOR
Shaneen Romero
PRODUCTION MANAGER
Missy Saunders
DIGITAL IMAGING SPECIALIST
Chris Mulder
News:
Striking a Balance, by John Worthington
ART DIRECTORS
Lindsay Thomas
News:
Winning the Battle with Fraudsters, by Kirk Ergang
DIRECTOR of CUSTOM PUBLISHING
News:
The Best Potential, by John W. Howard, Ph.D.
Philosophy in Action
4
Awards & Recognition, by Linda Webb-Mañon
22 Professional Development
In a Time of Crisis, by Bob Mellinger
Work Ethics, by Garrison Wynn
Lessons from the Cheshire Cat, by Robert Smith
HOW TO REACH US
4311 Oaklawn Avenue,
First Floor, Dallas, Texas 75219
www.magazine-partners.com
214.939.3636
26 Small Credit Unions
CPD Online
27 Small Credit Unions
The Right Stuff, by Paul Montoya
28 Regulatory
Profile: Harold Feeney, by Allison Castle
LONESTAR PERSPECTIVES IS DESIGNED BY MAGAZINE
PARTNERS, 4311 OAK LAWN AVENUE, DALLAS, TEXAS, 75219.
COPYRIGHT 2006 BY LONESTAR PERSPECTIVES.
ALL RIGHTS RESERVED.
30 Regulatory Q&A
TCUL’s Information Central
31
The Round up
TCUL Council Program, by Lucinda Rocha
32 The Round up
Breaking Records, by Lucinda Rocha
25
SUMMER 2006 ★ TCUL
1
Products and Services
CIF?
Choose To Make A Difference Through
The Community Investment Fund
T
By Jill Pharr,
Texas Credit Union Foundation Executive Director
reach out to the Hispanic community via the Juntos
Avanzamos program and other initiatives
(Richard L. Ensweiler Fund);
bring financial education to members and Texas school
students (Financial Education Fund); and
support for Texas credit unions’ related
programs (Development Fund, new in 2005).
HE COMMUNITY INVESTMENT FUND (CIF) IS A UNIQUE
social investment opportunity for your credit union
that pays dividends to your bottom line, and makes a
big difference in Texas, the U.S. and worldwide.
What Is It And How Does It Help?
CIF works thanks to a partnership between the National
Credit Union Foundation (NCUF), U.S. Central Credit
Union, corporate credit unions, and state leagues and foundations, including the Texas Credit Union League (TCUL)
and Texas Credit Union Foundation (TCUF).
CIF is a common fund into which credit unions of all sizes
can choose investment products through their corporate
credit unions including Southwest Corporate Federal Credit
Union. Participating credit unions receive at least 50 percent
of the dividend on their investment and NCUF receives 50
percent—with a maximum cap of two percent to NCUF. In
other words, when the dividend exceeds four percent, the
credit union receives any additional percentage amount.
Half of NCUF’s dividend share is returned, pro-rata, directly to the leagues or state credit union foundations in the
states of investment origin. The shared funds, both national
and state, are earmarked specifically for development initiatives that increase credit unions’ capacity to impact the financial lives of consumers, including financial education,
small credit union programming, community outreach
such as affordable housing, and international development.
National CIF funds also come back to state and regional
credit union foundations via grants for outreach programs.
In January 2006, TCUF received a grant of $40,500 from
the CIF fund to sponsor a statewide teacher training pilot
with the Texas Education Agency, State Securities Board
and the Office of Consumer Credit Commissioner. This
pilot is a groundbreaking collaborative project, that will
help thousands of Texas school students learn personal financial management, the first of its kind in the nation.
In Texas, TCUL and TCUF together oversee four designated funds that expand both the League’s and the
Foundation’s ability to help credit unions:
build their capacity to serve members through improved
training, equipment, and technology (Small Credit Union Fund);
2 TCUL ★ SUMMER 2006
Best of all, investing credit unions choose how they want
their investment for the NCUF share and for the
TCUL/TCUF share of the dividend.
Texas CIF grants were awarded to a variety of initiatives
in 2005, including sponsorship of the Newspapers In
Education programs in Ft. Worth and Harlingen, the Texas
Council on Economic Education for scholarships to teachers who belong to credit unions to attend economic and
financial education conference, sponsorship of National
Credit Union Administration’s (NCUA) Small Credit
Union Workshop, a 24/7 lending program that benefited
small credit unions and support to Juntos Avanzamos
qualifying credit unions.
What Are The Investment Choices?
There are a variety of standard investment products available which match ALM investment strategies through
Southwest Corporate FCU.
Products include a 90-day Notice Account, as well as threeyear and five-year term Certificates of Deposit. Southwest
Corporate has also added a menu of structured products including a Fixed Callable Share Certificate, an ACP, or high
yielding amortization certificate, and a FRAP, or floatingrate, fixed-term share certificates benchmarked to a floatingrate index. For more information, click on the CIF link at
www.swcorp.org. Southwest Corporate Federal Credit
Union investment advisors can assist you with questions and
decisions about products that are best for your credit union.
How To Invest in CIF
Investing in CIF is easy. Investor forms are available on the
TCUF’s website at www.tcuf.coop, as well as Southwest
Corporate’s web site and the NCFU’s website, www.ncuf.coop.
CIF is indeed a win/win/win investment opportunity
with the added benefit of strengthening the credit union
movement and helping more people reap the benefits that
credit unions provide. With rising rates, now is the time to
choose to make a difference with CIF.
Currently, 61 Texas CIF Investors with more than $30
million in combined CIF investments are leading the way.
Join them today. ★
GalaxyAD2006.indd 3
7/21/06 3:41:17 PM
By Kirk Ergang,
Senior Vice President,
First Data Debit Services
News
Winning the Battle
with
Fraudsters
By not taking action, you could threaten your
business’ viability and lose your customers’ trust.
W
E KNOW THAT ALL FINANCIAL INSTITUTIONS,
credit unions included, can incur losses through
fraudulent activity. What’s interesting is that
many institutions continue to focus on recovering
losses rather than being proactive. With the increased threat,
reactive measures won’t work as a long-term solution. By not
taking action, you could threaten your business’ viability and
lose your customers’ trust. By forming a proactive strategy to
mitigate fraudulent activities, you can dramatically minimize the opportunity fraudsters have on your customers.
Education and Communication
Employees, customers and industry partners need to understand the various scams that exist as well as where and
how they occur. Sharing data across the organization can
quickly improve communication and education.
It’s important that a centralized organization exists to
track and categorize losses, sending it to one point of responsibility and contact, enabling databases to share information and develop uniform policies. Data from losses
within the various programs can then be provided to
managers across business lines to better understand the
risk areas.
Consumer education is another key element. Many victims are successfully attacked more than once, so there’s still
work to be done in education. Credit unions need to consider how to increase communication with their customers
about fraud through various communication vehicles.
Don’t forget to leverage the intelligence of other organizations in the industry, which can help one another improve
security, detection and fraud resolution. Financial institutions, card associations and solution providers can work together to establish groups to exchange experiences, and discuss best practices.
Prevention
3
To lessen fraud risks, organizations need to invest more resources
in proactive prevention versus reactive investigation. To help prevent incidents of fraud, consider adopting the following three rules.
1
1 – Save the Data
It’s important for credit unions to retain all relevant transaction
information to facilitate monitoring, identifying, tracking and resolving fraud, including information on:
Each share draft account customer;
Each transaction; and
Prior fraud cases/transactions.
Compiling this data enables you to identify repeat offenders and
spot suspicious behavior. The data can also help build and refine
fraud-scoring models, including background on consumers who:
Purchase goods or services at unusual locations or merchant types;
Make an unusual number of transactions in one day;
Buy unusually large-ticket items;
Purchase a large-ticket item using several cards to obtain the
required authorization amount; and
Conduct unusual transaction activity following an
address change request.
2
2 – Use Similar Prevention Tools for PIN,
Signature and Credit Transactions
PIN debit cards are often housed within the credit union organization, while credit card processors handle signature debit transactions and are subject to similar credit card fraud controls. If the data
isn’t kept together, be sure that similarly robust tools are used to
monitor all transactions.
A variety of tools have been developed recently that can aid in protecting debit programs. Each focuses on a specific area of potential
fraudster infraction and helps strengthen the protections a credit
union can place around its debit business. Examples include:
Velocity checking and transaction scoring;
Card verification programs;
Address verification services;
Identity authentication and age verification;
Office of Foreign Assets Control database lookup; and
PIN offset edits.
3 – Defend on Multiple Fronts
Leaders in fraud management don’t rely on one solution; instead
they use various methods through multiple channels to address
fraud, such as:
Employing multi-factor authentication for Internet purchases;
Deploying more sophisticated ATMs and testing new security
devices on ATMs to protect against skimming; and
Periodic audits of fraud and risk management functions to
uncover weak links in processes, tools and technology.
Online transactions need to be reviewed as diligently as card
transactions, and again, it’s best to examine all data generated by the
different transactions with a holistic view.
Fraud Detection and Resolution
The most prevalent tool for card-based fraud detection is a neural network, which relies on purchase histories to identify unusual
spending. But surprisingly, not enough debit card portfolios are taking advantage of this tool.
Detecting fraud within debit businesses requires enhanced neural scoring tailored for debit transactions. Consumers tend to use
debit cards differently than credit cards, so enhancing neural network tools to recognize these differences is essential when fighting
debit payment fraud.
Since an essential element of a neural network is communicating
apparent unusual card behavior, make sure your neural network has
a fast, effective means of contacting the cardholder to report suspicious card usage.
Another element critical to resolution is the need for thorough
fraud tagging and tracking. Knowing which transactions resulted in
losses, with which type of fraud, provides critical intelligence in detecting the next fraudulent transaction.
Credit unions need to continually improve their detection capabilities by investing in new technologies and solutions. Sample solutions include:
Computer fingerprinting to create unique PC identifiers;
Enhancements to neural networks;
Profiling online banking patterns;
Digital signatures and biometrics; and
Enhanced Internet security.
The battle with fraudsters continues, but being proactive can
make your organization a winner. Develop and refine fraud policies
and procedures to help alleviate the threats and cut costs associated
with losses, helping protect and preserve your customers’ trust and
confidence. ★
5
By John Worthington,
Senior Vice President
of Corporate Communications at Security Service FCU
News
Striking a Balance –
Tech and HighTouch
High
Best practices research and understanding your
members are important steps in the due diligence
required before adopting new technology.
1995 AND MANY INDUSTRY “EXPERTS” AND CONsultants were advising financial institutions to join the internet revolution. In 10 years, they alleged, there would
be no more brick and mortar. We would all become virtual institutions, checkbooks would become museum pieces
and everyone would be tethered to computers. Computers
certainly have become ubiquitous and have impacted the demand for checkbooks. But, the number of brick and mortar, hands-on branches continue to endure and actually increase in response to member demand.
What the industry pundits didn’t understand when they
predicted the demise of brick and mortar were the attitudes
and desires of the members that use the facilities. Yes, members have embraced the computer age and many opt for electronic service options. But there are a significant number of
members that want to visit a branch to figuratively (and
sometimes literally) touch their money, find comfort in completing a transaction with a live person or just enjoy their personal interaction with credit union employees.
At San Antonio-based Security Service Federal Credit
Union (SSFCU), we have been proactive in searching for
technological advances to allow us to operate smarter and
provide our members increased efficiency and convenience.
But, from the beginning, we realized that as we used technology to good effect, at the same time we needed to retain the
personal touch that has distinguished Security Service, and
credit unions in general, from others in the financial services
world. As we have sought technical solutions to operational
challenges we have been true to our desire to be on the “leading, not bleeding” edge of technology. And that means vigorous research and a thorough review of best practices before
adopting new technology solutions.
Best practices research and understanding your members
are important steps in the due diligence required before
adopting new technology. Research should include a comprehensive review of the literature of the industry, participation in conferences and seminars, involvement in professional organizations and associations as well as site visits to
vendors and users of new technology applications. Equally
I
T WAS
important is research with members. Surveys about new
products or processes, member focus groups, exit interviews
with members as they leave a branch and participation in
syndicated research programs can help gauge member attitudes and likely acceptance of technological innovations.
According to Credit Union National Association
(CUNA), there are more than 87 million credit union members across the country. As memberships continue to grow
and member demand for service increases, credit unions are
faced with a dilemma—meet the growing demand for service without building, staffing and equipping multiple new
branch locations. However, by employing a balance of technology and brick and mortar branches credit unions can continue to provide a high level of personalized service to a growing membership while keeping costs to reasonable levels.
As SSFCU has grown over the last 50 years, we have incrementally adopted technological advances to enhance our
service delivery capabilities. Some of those advances seem almost mundane today—ATMs, direct deposit, toll free num-
bers (we have them for North America frequent them. A more traditional member
and overseas locations) and even drive- base with an older population may not readthru tellers have been in play for more ily accept a remote teller operation where a
than two decades.
location with a younger demographic may
Our Member Contact Center is an in- rapidly embrace the new technology. Other
creasingly popular delivery channel for our actions that we have taken to extend personmembers to connect with Security Service. alized service and convenience for members
It provides our members an opportunity to include expanded hours of operation at
talk to a live member service representative Service Centers, with seven day a week op24 hours a day, seven days a week, 365 days erations at selected locations, establishing
a year, in English or Spanish, and some Service Centers in shopping malls operating
225,000 members do just that each month. during mall hours, and placing our
Our Integrated Voice Response (IVR) sys- Investment Group and Mortgage Lending
tem averages more than
representatives in the
one million member calls
Service
Centers.
monthly. The Member
Additional products and
Contact Center also proTechnological services such as debit cards
vides members direct conand indirect lending also
advances for
tact through specialized
provide members intoll-free numbers with sub- branch operations creased convenience and
ject matter experts on spe- have also helped efficient service delivery.
cial marketing promoTruly, providing an array
us achieve
tions, our Operation
of electronic service deliveconomies while ery channels is necessary to
Homefront service for destill providing keep up with a growing
ployed military members
and their families and nu- positive member member base that embraces
merous other subjects.
cyber operations. At the
service.
We entered the internet
same time, research and exworld officially in 1996
perience have shown that
when we launched our web
we need to maintain a
site. The next year we introduced our on- ground presence to accommodate the alline banking system, CompuBranch, which most 40 percent of our members that want
has made a solid connection with our mem- to touch their money and conduct a transbers electronically, as has our on-line Bill Pay action in person.
service. In fact, demand for CompuBranch
But, none of the innovations detailed will
service pushed the system to its limits and it be successful without proper employee and
was upgraded earlier this year, greatly ex- member education programs executed well
panding its capacity and allowing members before introducing new products or systo obtain on-line account statements and tems. Members will adapt to innovation if
check images, in addition to regular on-line they are properly prepared and employees
activities. With almost 200,000 registered will be effective ambassadors when properly
users, CompuBranch continues to add sat- trained and equipped to assist members
isfied members daily.
with the transition.
Technological advances for branch operCredit unions can definitely enhance
ations have also helped us achieve their service to their members by employeconomies while still providing positive ing a mix of technological channels with
member service. The introduction of re- brick and mortar. Thorough research and a
mote teller systems at selected service centers coordinated employee and member comwas well received by our members. munications plan can help the credit union
However, when selecting a location to intro- employ both high tech and high touch servduce such high tech systems, it is important ice delivery channels to make the member
to understand the demographics of each lo- service experience convenient, efficient and
cation and the attitudes of the members that successful. ★
News
By John W. Howard, Ph.D.,
Profiles International, Inc.
Operations
The Best
Potential
Tackling the Three Major
Challenges of Retention
#1 – Hire Good Employees
Employers, have three places they can deal with lazy, unreliable, drug abusing, dishonest members of the workforce:
Before you let them in your front door;
While they are in your house; and
As you kick them out the back door. Unfortunately, in our
current legal system and social system, only one of those
places is cheap.
By screening potential employees for past behaviors and attitudes, you can dramatically reduce the cost of hiring bad
people, and make your workplace more productive, happier,
safer and more profitable. Combine an efficient prescreening
assessment with an effective pre-employment background
check, and you cut your risk by half or more.
The really good news is that the combination of an assessment and a background check may well cost less than your current pre-employment drug screening, and be more effective in
the long run! Pre-employment drug screening has fallen victim to an amazing array of devices and practices with one purpose: to make the screening ineffective. If you have doubts, go
to www.google.com, and enter the search words, “beat drug
test.” The 312,000 responses will make a believer of you.
Whatever combination of tools you use, your goal is to
identify the best potential employees in the pool you have to
work with—don’t let the bad ones in the front door!
#2 – Hire and Promote for Job Fit
A well-documented study, published in the Harvard
Business Review concludes that “Job Match” is by far the
most reliable predictor of job effectiveness. The study considered many factors including age, sex, race, education and experience of approximately 300,000 subjects. It evaluated
their job performance and found no significant statistical differences, except in the area of “Job Match.” Conclusion: “It
is not experience that counts or college degrees or other
accepted factors; success hinges on a fit with the job.”
Other studies have found that job fit not only predicts
effectiveness, but it also predicts retention—if an employee fits
the job, it is likely that they will stay on that job, liking it, and
being rewarded in a variety of ways for doing it well.
If success is determined by job fit, our challenge is to predict that fit. This requires that we measure thinking style, behavioral traits, and occupational interests, and that we do so
in a cost-effective, efficient way. The Profile XT was designed
and validated as an efficient way to predict job fit. With this
assessment, an employer can assure that the people hired fit
their new jobs; that the people promoted can succeed in the
new position; that employees can identify a career path likely
to work; and that newly opened jobs can be filled from
within, with a high probability of success. These assurances
add up to better productivity and improved retention!
# 3 – Improve Managers,
Keep your Best People
“People quit people, they don’t quit jobs.”
Guess which people they are most likely to quit? Hint:
Managers have the most significant impact on a worker’s daily
activities, the mood of the work setting, and the reward structure on the job. Identifying the strengths and weaknesses of
your managers, and improving their most critical skills, is a key
component of keeping your best people. In this economy,
budgets for training have been curtailed, making it difficult to
find the money to improve management skills. Many companies are concerned that they will invest money in training, and
then lose the people and their investment. As Zig Ziegler said,
though, “If you think it’s expensive to train people and lose
them, try not training them and keeping them!”
Invest in a cycle of assessment and training! You will find
managers get better. Better managers will improve retention.
Profiles International is a preferred provider of Credit
Union Employment Resources. Profiles offers a variety of
tools to assist credit unions in hiring and retaining the right
employees. For more information, please contact Susan
Looney, at (800) 442-5762, Ext. 6431. ★
By Linda Webb-Mañon,
TCUL Communications Director
Philosophy in Action
Awards & Recognition
TCUL honors best and brightest in Awards & Recognition program
T
HE AWARDS & RECOGNITION PROGRAM OF THE TEXAS
Credit Union League (TCUL) is an opportunity for
credit unions and leaders of the industry to be recognized for their tireless efforts in serving their members
and communities. It’s also an opportunity to illustrate to your
members, community, public opinion makers and lawmakers the credit union difference. This is becoming increasingly
more important as bankers continue to turn up the heat in
their pressure to eliminate the tax-exemption for not-forprofit credit unions.
Annually, Texas credit unions may submit nominations
and/or entry forms for the following awards:
Hall of Fame
Professional and Volunteer of the Year
Small Credit Union Achiever’s Award
Dora Maxwell Social Responsibility Recognition Program
Louise Herring Award for Philosophy in Action
Desjardins Youth Financial Education Awards Program
The latter three are part of the national awards program
through the Credit Union National Association (CUNA)
supported and promoted by TCUL.
The Professional and Volunteer of the Year awards are designed to recognize leadership, integrity, service and commitment to the credit union movement. Nominations will be
judged on a combination of outstanding personal accomplishments, accomplishments for their credit union and accomplishments for the credit union movement. TCUL issued a call
for nominations in May and the entry deadline is Aug. 4.
The Small Credit Union Achiever’s Award is the newest
TCUL award program. It is designed to recognize accomplishments, time and effort in support and promotion of the
credit union movement by professionals dedicated to serving
credit unions $20 million and under in assets. Nominees will
be asked, among other things, to describe professional positions held within the movement, as well as any extraordinary
contributions they’ve made as a paid credit union employee.
They will also be asked to describe their level of involvement
on the local and state level. The deadline for this award program is also Aug. 4.
The Hall of Fame award program honors those in the credit
union who reflect a long history of service to Texas credit unions.
The 2006 Hall of Fame recipients were selected in April.
The Dora Maxwell, Louise Herring and Desjardins are national awards programs; however, TCUL accepts nominations on the state level first. TCUL’s Awards & Recognition
Committee is responsible for judging entries and only first
place winners advance to national. A call for nominations for
all three awards programs was issued in May and the entry
deadline on the state level is Sept. 11. First place winners on
the state level will then go on to compete against credit unions
from across the country.
The Dora Maxwell Social Responsibility Recognition program was established to encourage credit union and chapter
involvement in community projects and activities. Credit
unions and chapters are encouraged to assess the needs of
their communities and participate in community outreach
programs such as fundraising for charity, making classroom
presentations, sponsoring community activities or loaning
employees to volunteer in hospitals, retirement homes and
shelters. When documenting activities, credit unions should
be prepared to explain:
How the project goals show social concern for the community
How the project helped solve community problems
How the project was implemented
How it demonstrates credit union values of mutual self-help,
cooperation, economic empowerment and volunteerism
The Louise Herring Award for Philosophy in Action recognizes credit unions that extraordinarily demonstrate the
practical application of credit union philosophy. Philosophy
in action is what distinguishes credit unions from other financial service providers. When compiling entry materials,
credit unions should detail:
How the project demonstrates the credit union philosophy in
actual operations
How the credit union put its philosophy into action
How the project demonstrated the credit union’s commitment to
educating its members about credit union philosophy
The purpose of the Desjardins Youth Financial Education
Award Recognition Program is to recognize the leadership of
individual credit unions and chapters (or groups of credit
unions) on behalf of youth financial education. The award
program considers all activities supporting the personal finance education of young credit union members and nonmembers, including but not limited to, face-to-face teaching,
publicity, lobbying for curriculum requirements, t eacher and
volunteer training and promotion and use of the National
Endowment for Financial Education (NEFE) High School
Financial Planning Program.
Additional information is available in the Awards &
Recognition section of TCUL’s web site at www.tcul.coop. ★
AWARD SUBMISSION DEADLINES
September 11, 2006:
August 4, 2006:
Dora Maxwell Social Responsibility Award
Professional of the Year
Louise Herring Award for Philosophy in Action
Volunteer of the Year
Desjardins Youth Financial Education Award
Small Credit Union Achiever’s Award
9
By Allison Griffin,
Contributing Writer
Community
Involvement
E
VERY COMMUNITY HAS THEM-
those companies that seem to
be involved in everything.
They have a presence at all
the major charitable events.
Their senior managers are
leaders of civic groups like
the Chamber of Commerce and Rotary Club.
Their CEO is in the newspaper next to the
mayor at the big ribbon cutting, while their directors win awards for their voluntarism.
Their corporate name and identity seem to be
associated with everything that is good and
right with the world.
10 T C U L ★ S U M M E R 2 0 0 6
MAIN POINTS
Why Community Involvement matters.
Take stock of what you are doing.
Focus on doing a few things well and formulate a plan.
Setting a budget and leverage other resources.
Brings ‘People
Helping People’
Philosophy to Life
How do they do that? It’s not by accident; it’s by design.
Organizations that have a strong presence in the community have
put a lot of thought and effort into developing a strategic community involvement plan.
Community involvement, often called community relations, is
just what it seems: an organization’s volunteer and financial support
of charitable and civic activities in its community.
Credit unions are involved in their communities. They provide
countless volunteer hours and significant financial resources to a variety of worthwhile causes across Texas. It’s in the nature of the credit
union’s “people helping people” philosophy. However, not all credit
unions approach their community activities strategically, which
means many are missing out on all the benefits of being involved in
community service.
Why community involvement matters
What are some of the benefits? First and foremost, community involvement benefits people in the community. Whether it’s raising
funds to help a sick child in the hospital, providing financial guidance
to a first-generation college student, participating in the local economic development committee, or reaching out to an immigrant
family who has never before entrusted their hard-earned dollars to a
financial institution, a credit union’s actions can have a dramatic impact on their community.
Community involvement also builds stronger connections
11
Lake Highlands
High School
“We don’t do advertising and sales … we just help people.”
JAMES MCQUIRTER, PRESIDENT OF NEW MT. ZION BAPTIST CHURCH CREDIT UNION
among a credit union’s members and staff. Rallying around a worthy cause builds camaraderie and a sense of unity that makes people
even more loyal to their credit union.
“Our board is very committed to doing financial education,”
notes Anne Boatright, president and CEO of Capitol Credit Union
in Austin. “Several of our board members attended last year’s
National Endowment for Financial Education (NEFE) training
and are very motivated to share their knowledge with the community on behalf of our credit union.”
Not surprisingly, that sense of camaraderie and connection also
extends beyond the walls of the credit union. Hundreds or even
thousands of people who are not members of a credit union may be
affected by the credit union’s not-for-profit activities, generating a
lot of good will. And civic involvement is a great way to shape the
future of the community. Of course, community leaders and
elected officials may also take notice, which can’t hurt a credit
union’s advocacy activities.
Community involvement also complements a credit union’s marketing and communications initiatives to help define and
strengthen its identity or brand.
However, all of these benefits cannot be achieved if a credit union
employs a haphazard approach to community outreach or treats it
as an afterthought, just another item added to the already-lengthy
12 T C U L ★ S U M M E R 2 0 0 6
list of responsibilities delegated to the marketing director or business development officer.
Make community involvement a priority
That is not the case with People’s Trust Federal Credit Union of
Houston. Angela McCathran, President and CEO of People’s
Trust, says that her credit union views community involvement as
an essential component of their overall strategic plan.
“We created our community development department almost
three years ago,” explains McCathran. “We did a whole realignment
to determine who we are, where we are going and what we want to
achieve. As part of that process, community development began to
take a central role.”
McCathran adds, “It’s important that you hire the right person
and give them the resources to perform. We found someone who is
passionate about community service and financial literacy, and we
made her a full-time manager who is a direct report to the senior vice
president. You can’t treat this as a side project or hide the position
deep within another department.”
Likewise, community involvement may be the primary means by
which a credit union makes itself known to the community.
“Community outreach is our marketing program,” says James
McQuirter, president of New Mt. Zion Baptist Church Credit Union
in Dallas. “We don’t do advertising and sales … we just help people.”
Like People’s Trust and New Mt. Zion, a growing number of Texas
credit unions are engaged in well-organized, strategic community
outreach plans. Particularly when a credit union adopts a community charter, it becomes increasingly imperative to develop a plan to
establish a good reputation among people who may be new to the
field of membership.
“It was hard at first to find our niche,” admits Boatright, whose
credit union recently began the transition to a community charter.
“However, the key is to stay true to our core membership and select
employee groups. Our members have traditionally supported programs that benefit children, such as the Children’s Hospital of
Austin, college scholarships and financial literacy efforts. As we
work on our written community involvement plan, we will continue to focus on projects that involve children.”
Putting together an effective community involvement plan can
be intimidating, if not downright daunting. How does a credit
union begin?
Be strategic
Rule number one is to be strategic. Credit unions across Texas receive frequent requests for help from a lot of worthwhile local charities. Choosing which ones to support can be overwhelming,
tempting a credit union to make their decisions sporadically. As one
credit union CEO confessed at a recent Texas Crdit Union League
(TCUL) training session, “We give a little money here and a little
money there, and then try to help different groups the next year.”
That is not a strategic approach. In fact, that kind of haphazard
approach can backfire, as the credit union develops a reputation for
being an unreliable community partner that offers support one year
then yanks it the next. Non-profit leaders talk to each other, and
that certainly is not the way a credit union wants to be talked about.
So how should a credit union choose from so many great causes?
How can a credit union get started with a more strategic community involvement plan?
Take stock and narrow the focus
Texas Credit Union Foundation (TCUF) Executive Director Jill
Pharr says the first step is to take stock of the causes and organizations the
credit union already has embraced, including chapter activities. “Credit
unions are already doing great things in their community,” explains
Pharr. “They just may not have taken the time to analyze and document
the different activities in which they and their employees are involved.”
Next, pare down the activities and select a cause that is aligned
with your credit union and its membership. Review your mission
statement and core values. Evaluate which issues and organizations
13
PICTUREYOUBEAUTIFUL.NET
“We survive, thrive and flourish, not because we do a better financial
job than banks, but because of all of our efforts in the community.”
JAMES MCQUIRTER, PRESIDENT OF NEW MT. ZION BAPTIST CHURCH CREDIT UNION
are important to your members. As Pharr explains, “This becomes
the umbrella under which your programs and activities will reside.”
“For us, it’s about being focused,” says McCathran. “We do not
have the budget to be all things to all people, so we primarily focus
on four activities.”
One activity that is close to the hearts of many Texas credit
unions is financial education. In addition to being actively
involved in the 2005 passage of a financial education curriculum
that will be instituted in Texas schools this fall, credit unions are
providing financial education to help people build a successful
future.
Nearly all Texas credit unions engage in financial education to
help their members, but how can that be taken outside of the credit
union to benefit others who really need it?
New Mt. Zion Baptist Church Credit Union has developed several programs, including College Entrance 101, which is offered to
an ever-increasing number of Dallas-area high school students and
their parents. Now in its fourth year, the word is spreading about
the program’s mentoring approach to helping students and their
parents navigate the world of college preparatory coursework, financial aid, scholarships and grants and college applications. “This
program really helps the students and their parents gain the financial literacy tools to know how to plan for college, make it through
14 T C U L ★ S U M M E R 2 0 0 6
school, and then graduate into a good career,” explains Bridget
Armstrong, credit union manager for New Mt. Zion.
Financial education is also a central focus for Capitol Credit
Union’s partnership with Classrooms on Wheels, an Austin startup organization working to take financial education into the classroom. “This gives us another opportunity to put our NEFE training to work to help kids in the community,” says Boatright.
Houston teenagers now have “A Night to Remember,” thanks to
the brainchild of Linda Birt, community outreach director
for People’s Trust Federal Credit Union. The program serves
disadvantaged high school students from five Houston-area school
districts, providing prom dresses and a makeover, mixed in with an
important money makeover. “We wanted to give them a night of
their dreams,” says McCathran, “but we want them to earn it. We
teach them about managing their finances, filling out job applications, putting together a resume, etiquette and basic life stills.”
The invitations to “A Night to Remember” list each sponsor, with
a description of their workshops. Students are required to attend
every workshop and have their invitations stamped by each sponsor. Upon completion, students may select free formal wear and accessories. In addition, the students are eligible for giveaways that include dining, salon and floral gift certificates to help defray
additional prom costs.
Texas Credit Union
Foundation Offers
Community Involvement
Assistance
Did you know TCUF may be able to help a credit union with its
community outreach program?
TCUF conducts NEFE “Train the Trainer” sessions throughout the
year to help credit union volunteers and staff provide invaluable financial education in their communities.
TCUF also offers community grants to foster collaborative programs between credit unions and their community partners.
“We want to encourage community involvement for our credit
unions,” Pharr explains. “If they need some support to get started,
we can help.”
A TCUF community grant can be provided either to a credit union
or its non-profit community partner. Pharr says that when determining whether or not to approve a community grant, the Foundation
Grants Committee looks for projects that have a financial education
element and a strong volunteer component that involves staff and
leaders of the credit union.
For more information about NEFE training or community grants,
contact the Foundation at (469) 385-6443 or go to the TCUF website at www.tcuf.coop.
Formalize the program
Once you have identified the direction, Pharr recommends that
you formalize your program. Define the components and goals.
Appoint a coordinator or committee to oversee. Establish a timeline and create an action plan for each component. Name or brand
the program, even if it’s just internally. Then use this written plan
as the framework to document the activities, successes and challenges once the plan is implemented.
Set a budget and leverage other resources
Set a budget. Keep in mind that a credit union doesn’t need a million dollar budget to make a major impact in the community.
Credit unions of all sizes are making a significant impact in their respective communities.
Look at New Mt. Zion, whose total assets are around a million
dollars. “Our strategy is to find the leading providers of services,”
explains McQuirter. “Then we work to identify other partners to
help us deliver that service to the community.” For example, the
credit union has assembled partners such as TCUF, the Katherine
Muriel Education Foundation, State Farm Insurance, the
Tougaloo College Dallas-Fort Worth Alumni Chapter, local
school districts, the Dallas Police Officers Association and the
New Mt. Zion Baptist Church scholarship committee. All of
these partners served to bring College Entrance 101 to life.
Similarly, People’s Trust has engaged its community partners
and the local educational community in its “A Night to
Remember” program, involving TCUF, Sam Houston State
University, the Downtown YMCA, Women’s Center of Houston,
the Shell Oil Black Networking Group, Kelly Temporary
Services, the Green Sheet Foundation, Mary Kay cosmetics company and local photographer pictureyoubeautiful.net to make
the dream a reality.
Think outside the box. If a credit union finds a deserving cause
that is too big to handle on its own, look for community partners.
Or invite other credit unions to get involved. One credit union’s
idea might make a great chapter project.
Bring it to life
Finally, implement your program. Don’t just throw money. Offer
volunteers, too. McCathran, Boatright and McQuirter agree that
involving staff and board members is what generates excitement and
brings the “people helping people” philosophy to life.
As McQuirter explains, “We survive, thrive and flourish, not because we do a better financial job than banks, but because of our efforts in the community. Community service and outreach is our
trademark.” ★
15
How a
Bill Becomes
a Law in Texas
By Allison Castle
TCUL Communications Director for Advocacy
MAIN POINTS
The biggest obstacle for any bill is making its way
out of the committee process.
Bills must gain the support of a majority of
181 lawmakers in a short 140-day session.
Once a bill makes its way to the Governor’s desk,
the Governor has 10 days to sign, veto or do nothing.
I
N TEXAS, THE LEGISLATURE IS THE LAW-
making body of the government, officially deemed the legislative branch. Its
primary function is to enact laws to provide for the health, welfare, education,
environment, and economic and general
well-being of the citizens of Texas,
according to Texas Legislature Online.
Each regular legislative session, Texas lawmakers propose thousands
of bills, only a fraction of which becomes law. Charged with such a serious collection of duties, it is no surprise that the process of passing
legislation in Texas is both detailed and complex. By design, bills encounter a number of obstacles to ensure a thorough vetting of issues.
16 T C U L ★ S U M M E R 2 0 0 6
MATT ARCHER
The actual course that legislation must follow from the time it
is introduced until it reaches the governor’s desk remains the same
each session. Perhaps posing the biggest obstacle for any bill is
making its way out of the committee process and ultimately gaining the support of a majority of 181 lawmakers in a short 140-day
session.
Govt. 101
A quick refresher course
Texas has a bicameral legislature, meaning it consists of two
chambers: House (lower) and Senate (upper). The House has 150
members and the Senate has 31, elected to 2- and 4-year terms respectively.
The Texas Constitution requires lawmakers to convene for 140day sessions every odd numbered year. The governor can call 30day special sessions as needed. During a special session, lawmakers can only consider legislation relating to the call (or the subject
of the session as determined by the governor).
Either chamber can introduce a bill, although a tax bill can only
originate in the House. A bill must be passed by both the House
and Senate, and signed by the Governor to become law. Note that
if a bill sits on the governor’s desk without signature or veto for
more than 10 or 20 days (see Governor’s Desk below), it automatically becomes law.
On Your Mark, Get Set, Go
Only a member of the Legislature can introduce a bill, also
called the bill sponsor. In an effort to save time, lawmakers can
prefile a bill before session starting the first day of the week following the November general election.
According to House and Senate rules, bills can be introduced
during the first 60 days of each regular session. Bills filed after that
deadline (other than local bills or bills relating to an emergency
matter declared by the governor) require the consent of four-fifths
of members present and voting in the House and four-fifths of the
entire membership in the Senate.
Once filed, a bill is assigned a number. Bills originating in the
House start with HB, Senate bills start with SB.
Every bill must be read three times. A bill is formally introduced
on what is referred to as first reading. This is when the house clerk
or senate secretary read the caption and a brief summary of the bill
and announce to which committee the bill has been referred (the
17
Once a bill makes its way to the
Governor’s desk, the Governor has
10 days to sign, veto or do nothing.
ALEX WONG
If the Governor does nothing, the
bill automatically becomes law
after the 10-day deadline.
speaker of the house and the lieutenant governor assign bills to
committees).
Committees
It is here—in the committee—where the first real debate on a
bill occurs. It is also where many bills meet their demise.
It is the job of the committee chair to decide when and if a bill
will be considered. If a bill is heard—and voted on favorably—it
is then referred back to the full chamber. If the committee decides
to report the bill unfavorably, or not at all, the bill dies.
House
Once a bill leaves a house committee with a favorable nod, it then
goes to either the Local and Consent Calendar (legislation impacting
local jurisdictions, consent bills and non controversial resolutions) or
the powerful Calendars Committee, which then sends them to the
Emergency Calendar, Major State Calendar or General State Calendar.
The Calendars Committee, which is chaired by credit union
and financial literacy champion Beverly Woolley, has 30 days to
vote on placing the bill on one of the three calendars; Emergency,
Major State or General State Calendar.
When a bill is brought up for consideration on the House floor,
it is read for the second time and then debated. Lawmakers each
have about 10 minutes make their points. After all debate and
amendments, the bill is read for the third time. At this point,
amendments can still be offered, but it takes a two-thirds majority
vote. To pass the bill on third reading requires a simple majority.
Senate
Bills are placed on the senate calendar in order they are received
from senate committees, and they can only be brought to the floor
out-of-order if the sponsor has filed a written motion to suspend
the rules and take up the bill out of order. In order to suspend the
18 T C U L ★ S U M M E R 2 0 0 6
rules, a two-thirds vote is required.
Once up for debate, a bill is, as in the House, read for the second time and ready for debate and any amendments. After this,
any amendments require a four-fifths majority vote.
Conference Committee (as needed)
When a bill passes, it is engrossed (meaning put into final form)
and this version is sent to the opposite chamber for consideration.
When the opposite chamber passes the same bill—with no changes
—it is sent back to the originating chamber, and then signed by the
speaker, lieutenant governor and then sent to the governor’s desk.
If, however, the second chamber makes any amendments and ultimately passes a different version than the original bill, it is returned to the originating chamber which then, can accept the
changes or assign the bill to a conference committee. A conference
committee is comprised of five members from each chamber. Once
the committee works out their differences, a report is issued back
to both chambers, for a final vote with no amendments allowed. If
approved by both chambers, the bill goes to the Governor.
Governor’s Desk
Once a bill makes its way to the Governor’s desk, the Governor
has 10 days to sign, veto or do nothing. If the Governor does nothing, the bill automatically becomes law after the 10-day deadline.
If the legislature is still in session when the Governor vetos a bill,
a two-thirds majority in each chamber is the only means to override a veto. If, however, a bill is sent to the Governor’s desk within
10 days of final adjournment, the Governor has 20 days to sign,
veto or let the bill become law without signature. ★
Sources:
Texas Constitution;
Texas House of Representatives;
Texas Legislature Online;
Texas Politics, Liberal Arts Instructional Technology Services, University of Texas at Austin
MAIN POINTS
Why Community Involvement matters.
Take stock of what you are doing.
Focus on doing a few things well and formulate a plan.
Setting a budget and leverage other resources.
‘At risk’
teen proves
she’s anything
but…
Credit union/school
program helps prepare teens
for business world
S
By Linda Webb-Mañon
TCUL Communications Director
Photography by Lisa Means
HE MAY BE “AT RISK” BY DEFINITION—LIVING IN A SINGLE PARENT, LOW-INCOME,
household—but Jessica Bonner has no intentions of allowing the circumstances of her life to
define who she is today or who she will be tomorrow. Bonner has big dreams and City Credit
Union (Dallas) wanted to do something to help this recent high school graduate achieve those
dreams. Bonner was one of two students to participate in “The Apprentice,” a new program
developed in partnership by City Credit Union and Roosevelt High School in Dallas.
19
Jessica Bonner and classmate Allen Davis shake hands with Grant Lappin, board of director,
during their two-week internship at City Credit Union.
Bonner, along with classmate Allen Davis, was among those
competing for the opportunity for a two-week internship at City
Credit Union. This youth development and mentoring program
was designed to enhance and develop personal and professional
skills in graduating seniors.
According to David Frith, director of member and support services with City Credit Union they distributed more than 100 applications to high school seniors. The six-week program was divided into four levels.
In the first level, students were asked to complete an
“Apprentice Application Essay,” specifically explaining:
Why they want to participate in the program;
What they would contribute to the work environment if selected; and
What their goals are for the future and how this employment can
help them reach this goal.
They were also required to provide three references—one from
the school (staff or administrator), one from the community
(church, community service or extra-curricular activities group),
and one personal reference (someone other than a family member).
The second level required candidates to participate in personal
image and development consultation training. Candidates were
taught among other things professional attitude, etiquette, dress,
interviewing skills and more.
Level three was the interview process. The panel of judges selected winners based on interviews, as well as the applicant’s portfolio.
The final level of the program was the two-week internship at
the credit union. After successful completion of the two-week internship, the chosen student would then have the opportunity to
20 T C U L ★ S U M M E R 2 0 0 6
become a part-time employee at the credit union.
Initially, Frith says they were only going to select one winner.
The panel of judges, which consisted of credit union and school
officials, knew what they were looking for—something special, an
individual that stood out from the rest. Choosing between Bonner
and Davis proved to be a difficult task.
“Allen had such an impressive resume and a true desire to succeed,” Frith said of Davis. “And Jessica, she just has such a wonderful personality. Despite her hardships, she has a strong motivation to succeed and such a positive outlook on life.”
Unable to decide on who would be named the first “apprentice,”
the judges decided to offer it to them both.“I was so excited to be
chosen as one of the first apprentices,” Bonner said. “I knew I
would get a lot out of the program, and also be a valuable contributor.”
Bonner graduated fourth in her class in May from Roosevelt
High School, a school where 71 percent of the student body is defined as “economically disadvantaged.” But that didn’t deter
Bonner, who was left parentless two years ago when her mother
passed away. For the remainder of her high school career, Bonner
lived with her 23-year old sister, who was only 21and in college
when she assumed the role as head of household in 2004. Bonner
is now headed to Houston to pursue a higher education.
“My mother was such an inspiration and motivator,” Bonner
says. “She instilled in me, and my sister, the confidence that we can
do anything we set our minds to. Never settle for less than the best,
she use to tell us.”
Settle Bonner did not. In addition to focusing on academics,
Bonner was a senior class officer, a member of the cheerleading
team and a mentor—helping fellow classmates prepare for the
writing and essay portion of the TAKS test. She is also a volunteer
Bonner training with Sallie Horace, the Ferguson Branch Manager.
Davis building his computer skills with Sofia Preciado, the Member
Service Supervisor for the Ferguson branch.
in the community, primarily at a local nursing home.
“There are leaders and there are followers. At some point we all have
to follow, that is how we develop into leaders,” Bonner said. “But there
comes a time when you have to be willing to step up and step out.”
While Bonner does not envision a credit union career for herself, this future entrepreneur says she learned a great deal from the
experience of working at City Credit Union—from balancing the
books to developing effective marketing strategies and delivering
quality member service.
“City Credit Union definitely offers a friendly work environment. Everyone seemed to really enjoy what they were doing and
being part of a team,” observed Bonner.
Aside from owning her own business, Bonner says her hope for
the future is simply, “to be in a good place mentally, physically,
spiritually and financially.”
Like Bonner, Davis also aspires to owning his own business—a
jazz café. And he will likely turn to his credit union for financing
when the time comes. Bonner and Davis—who have no previous
relationship with a financial institution—have just opened their
first accounts at City Credit Union.
Davis, who also graduated in May, was a standout student at
Roosevelt High School. Brought up in a two-parent household
with strong Christian values, Davis was active in the Fellowship of
Christian Athletes, as well a captain of the soccer team, a football
player, golfer and a base guitar player in the jazz band.
“My parents have instilled in me the value of education—without education you limit your potential.”
With a future in entrepreneurship, Davis says he realizes he has
a lot to learn—from understanding the financial risks of owning
your own business to developing a solid business plan. Interning
at the credit union, Davis says, exposed him to the “real world” of
business. Over the course of two-weeks, Davis had the opportunity to learn about many aspects of the operation, from serving on
the front line to working behind the scenes in accounting.
“It was really a great experience for me,” Davis says. “I was so
impressed with the level of professionalism amongst the employees. It was obvious that they worked well together as a team.”
Going into this program, Bonner and Davis confess that they
knew very little about credit unions. But both agree it didn’t take
long for them to realize credit unions are different. Bonner says she
got a strong sense that the credit union really cares about their
members and is willing to do what is necessary to meet their needs.
Davis says what he favors most about credit unions is their structure—one member, one vote.
Frith says among the goals of this program was to:
Cultivate positive thinking and attitudes;
Affirm the student’s innate abilities and assets;
Guide the student in personal and professional growth through mentorship; and
Enhance the young person’s ability to succeed professionally and
in personal concerns.
“I truly believe we achieved these goals and more. The students walked away with a strong sense of achievement and we
(the credit union) came away with a feeling of pride that we’ve
done something positive in these kids’ lives,” Frith says.
Frith says his hope is that the credit union can offer the program
again next year, and also bring more schools into the program.
“Young people need to know that people care about them and
their future,” Frith says. “I think this type of program prepares
young people—our future members - for the world that exists
after high school.” ★
21
Professional Development
By Bob Mellinger,
Attainium Corp
In a Time of
Crisis
Is your credit union prepared
for disaster?
A
N UNEXPECTED DISASTER COULD CAUSE YOUR CREDIT
union stress and confusion, as well as severely affect
your ability to perform critical functions and, therefore, continue normal business operations. Is your
credit union prepared to handle such a crisis? In my experience, the biggest challenge credit unions face when preparing a business continuity/disaster recovery strategy is figuring out what they need to anticipate so they’ll know how to
prepare. In order to ensure the most likely business continuity scenario, you need to assess your organization’s readiness
in crucial functional areas. A business impact analysis, or
business continuity audit, is the tool that can help you figure
it all out.
Your first step is to identify all your key business processes
and assess the impact of each on normal customer or member service levels: what would happen to your operations if
one or more of these processes were unavailable for a period
of time? The following three elements will help you identify
potential risks, their likelihood, and their probable impact on
day-to-day operations.
Service Interruption Time-Bands - Identify the time limits for your ability to do without your key business processes
including those that are outsourced to a third-party vendor or
organization. Use a range of time periods - under two hours,
2-24 hours, 24-48 hours, 2-5 days, over five days - and identify the critical time band for each key process.
Emergency Incident Assessment - To determine the
types of disruptive events that are most likely to affect your
normal business process, review any plans, policies, and/or
procedures relating to the areas under investigation (evacuation plans, building management documentation, backup
procedures, etc.). Consider any unique operational risks of
your business and examine each potential disruption and develop a list of consequences for each threat.
22 T C U L ★ S U M M E R 2 0 0 6
Operational Impact - Overlaying the ServiceInterruption Time Bands and the Emergency Incident
Assessment results will help you establish areas of “significant
impact” on normal operations. Significant impact represents
a level where members’ service levels will be negatively affected. This overlay will guide the development and help you
prioritize the elements of your Business Continuity Plan.
Once a business continuity or emergency response plan is
created, it’s important to remember that the job is far from
over. It’s like fire drills… you
don’t plan one and never test the
escape routes. We have to deIt is a major
velop the same attitude about
challenge to keep
your plan updated, testing business continuity plans.
Why test the plan? There’s
but that plan is
the obvious reason, of course –
critical to your
ability to keep your to make sure it works. Training,
organization – and, Testing
and
Exercising
most important,
(TT&E) also gives you an opyour people – alive. portunity to evaluate the skills
of everyone involved and to improve their skills, to make sure
that all contingencies have been covered, to satisfy any policies or legal requirements, and to help keep the plan updated.
To be effective, a plan must be (1) accessible and (2) a dynamic document that constantly evolves to reflect changes
in the environment, staffing, regulation, policies and procedures. If you’re not going to test the plan regularly to keep it
current and ensure its viability, you might as well throw it
away after a few months. What happens, for example, when
a disruption occurs, and someone goes to the plan to find
out whom to contact, only to discover that the person in
charge left the company six months ago? Finally, the plan
has to be easy to use. Don’t make it easier for people to run
for the door than to locate the correct procedure in the plan
(of course, if the plan is tested and people are trained, this
shouldn’t be an issue).
A comprehensive TT&E program would encompass a
number of components, including:
Executive briefings for senior management that would
familiarize them with the business continuity plan and policy, the emergency response and disaster recovery plan currently in place, and an explanation of their roles.
Seminars for managers to familiarize them with the
plan and explain what is expected of them and their staff to
prepare for and respond to a crisis or disaster.
Literature for all staff to inform them of business continuity news and events.
Most important, workshops for crisis management and
recovery team members, including scenario exercises and
role-play sessions. These can take a number of forms as described below.
It is a major challenge to keep your plan updated, but that
plan is critical to your ability to keep your organization – and,
most important, your people – alive. A carefully constructed
plan can save lives, prevent total chaos in the face of a crisis or
disaster, and is a critical tool to guide an organization’s recovery and survival.
Bob Mellinger is the founder and president of Attainium
Corp, which he launched to deliver business continuity, disaster recovery and crisis management services. He will conduct the Texas Credit Union League’s (TCUL) Disaster
Experience seminars Sept. 19 in Houston and Sept. 20 in
Dallas. For more information, please visit the Education section of TCUL’s web site at www.tcul.coop. ★
23
Professional Development
Work
Ethics
How to deal with motivationally
challenged younger workers
By Garrison Wynn,
President of Wynn Solutions
o you find it difficult to motivate younger workers?
Have you noticed that employees under 25 will quit
their job to go on a ski trip? They will choose pleasure
and friends over work every time — actions that indicate that there may be a different work ethic in place. What
about people in their 30s? They seem to need more time off
and value flexible schedules over money.
Whatever happened to dedicated, committed people who
did what was right for the company, the customer and the
wallet? Well, for starters, they grew up. Now at least in their
40s, many of them are managing the thirty-something and
twenty-something workforce and realizing that these
younger people cannot be motivated the same way they were.
I don’t know about you, but I start thinking, “You know back
in my day (I am now officially old enough to have had a day),
we did what we had to do. We ate dirt and we liked it; we
walked to work, up hill, both ways, in the snow — we had no
shoes. Heck, we had no feet! We walked on our nubs everywhere we went…”
I admit, I’m taking it a bit far here. I never walked to work,
I spent most of my life in Florida (no hills, no snow) and I do
have both feet, but I think you know where I’m coming from.
How can we effectively motivate people who feel so differently than we do about their job? Wynn Solutions did some
research on how some organizations get amazing results from
their younger people. These top-performing organizations:
Understand that these people grew up in the most affluent
time in American history and were raised to expect more out of
life. They inherited not only a world of material abundance but
also a workplace with perceived unlimited opportunity.
Know younger workers measure success not just in dollars but also in equality of pay; that is, they expect to paid as
much as anyone who holds the same job.
Know workers in their 20s will not respect someone just
because that person is older or holds a superior position; they
will only respect those who show respect for them.
Create goals that work; younger people respond to small
goals with tight deadlines and want a quick track for success
with praise along the way.
D
24 T C U L ★ S U M M E R 2 0 0 6
Let younger workers know that the skills and training
they are getting will help them in the future with other companies, not just with the job they have now. Younger workers
believe that companies won’t take care of them for life so they
don’t value long-term employment.
Know they want stimulating work; they grew up with
video games and fast-moving, quickly edited movies. They
like to multitask and can become easily bored with processes
that move too slowly or have no flexibility.
Know that younger workers need to be shown that the
boss (not just the company) cares about them. They want to
know that their supervisor will give direct praise on a consistent basis for a job well done and will encourage and support
them when they are not doing well.
Understand what they think about us: They believe our
computers crash because we are old and that we have chosen
work and money over fun and family, which makes us uptight
and cranky as we multitask unsuccessfully.
For those who are thinking these people are just spoiled and
should grow up and face reality … each generation would
naturally be a bit more spoiled than the previous one as long
as the economy continues to grow and parents keep scheduling play dates for their children, telling them they can be anything they want to be and driving them to soccer practice.
That’s reality! It’s simply the result of an affluent society.
The good news is that, properly motivated, these young
people are brilliant. We talked to many organizations that
were implementing some of the strategies outlined above and
achieving phenomenal results. The key to long-term organizational growth and change is knowing how to motivate the
new talent that can take you into the future. The key does not
involve wishing they were more like you. Remember that they
are not living in our times; we are living in theirs.
Garrison Wynn, president and founder of Wynn
Solutions (www.wynnsolutions.com), is a nationally known
speaker, trainer and consultant. He is also on the Southwest
CUNA Management School (SCMS) faculty. To contact
Wynn, you may email garrison@wynnsolutions.com or call
(888) 833-2902. ★
Lessons from the
By Robert Smith,
SCMS Senior Faculty
Cheshire Cat
“
By their own
ould you tell me, please, which way I
To be a leader with vision requires courage.
ought to go from here?” Alice asked.
You must first look inside yourself to assure you
passion, they
“That depends a good deal on where
are ready to lead. Is this a purpose for which you
convinced us we
you want to get to,” said the Cheshire
are willing to sacrifice? Are you ready to accept
were headed to a
Cat. “I don’t much care where...,” said Alice.
criticism not only of your ideas but of your self
“Then it doesn’t matter which way you go,” said
and your motives? Do you accept responsibility
better
place
and
it
the Cat.1 And the same advice is true for leaders
for those willing to follow you? Are you willing
was well worth
as well. If you don’t know where you are going,
to enter places dark with doubt, roads not well
our collective
then it doesn’t matter which way you go.
paved, and signposts few and far between? After
Holding a clear vision and retaining a sharp focus
all, the place you want to go is not a place where
efforts to get
on that vision determine leadership success more
you or others have been before.
there.
than anything else.
New visions cross uncharted territory.
Too often, we describe leadership by various
Consequently, the successful leader has to be
personal attributes or skills such as communicatcomfortable with ambiguity and have an opening, decisiveness, delegating, organizing, etc. However,
ness to change. There are always multiple paths across any
we all know fantastically successful leaders who didterrain. Crossing uncharted territory also requires
n’t display strength in all or even many of these
resolve. Getting there is more about attitude
areas. What made them leaders? My argument
than techniques or tools. The test is when
is that they knew which way we needed to
progress is slow or challenging. As a
go and painted for us an image of what
friend once said, winners make their
that final position looked like and why
goals; losers make excuses.
we needed to reach it. By their own pasTo be a leader with vision resion, they convinced us we were
quires self-regulation and selfheaded to a better place and it was
awareness. Strong leaders have
well worth our collective efforts to
the power to control their destrucget there.
tive tendencies and redirect their
Then those of us who
moods for the greater good.
follow, committed to
The embodiment of selfreaching that vision, find
regulation is strong ethics
the means and the deterand integrity: are you who
mination to get there.
you say you are? Is this venThe leader might have ofture for the greater good of
fered us suggestions for the
the team? Then you are ready
travel and might have preto lead. ★
sented ideas on how the road is to
be traveled but his or her most powerful contribution was to instill reason
enough for us to find the means to
1 LEWIS CARROLL, ALICE’S ADVENTURES IN
get there.
WONDERLAND, 1865.
W
25
small Credit Union
CPD Online
Scholarship Provides Small CUs
Access to Quality Training
WARE OR THE LATEST
gadgets at these “sign up” parties, but what these
members of the Texas Credit Union League’s (TCUL)
Committee for Small Credit Unions will be pushing is
the Credit Union National Association’s (CUNA) Center
for Professional Development (CPD) Online Scholarship
program. Thanks to CUNA, small credit unions are eligible
for a $3,000 scholarship that will cover the annual standard
membership subscription cost for CPD Online. With this
membership, credit unions will have access to more than 160
online, interactive courses.
“This is a great opportunity that more credit unions should
be taking advantage of,” says Val Atkins, TCUL liaison to the
committee. Atkins is encouraging members of the committee to host “sign up” parties in their respective areas, and
encourage them to take advantage of this opportunity.
“The scholarship program provides an opportunity for small
asset credit unions to receive up to date information about essential training,” notes committee member Gary Parker.
For credit unions with limited training budgets, committee member Suzanne Chism adds, “This is great. It allows
smaller credit unions the opportunity to provide employees
with standardized in-house training. CPD Online is a valuable training tool.”
Among topics examined in CPD Online Courses are:
T
HEY WON’T BE SELLING TUPPER
Accounting, budgeting and finance
Collections
Compliance
HR staffing and the law
Interpersonal skills and career building
Member services and accounts
Technology
Management skills and managing employee performance
Lending and loan processing
And more
The scholarship does not cover the cost of testing, and
credit unions will be responsible for paying the minimal
fee for online exams. Small credit unions interested in applying for the scholarship should visit www.training.cuna.org
and choose CPDOnline and then Small Credit Union
Scholarship application. ★
26 T C U L ★ S U M M E R 2 0 0 6
Committee for
Small Credit Unions
Alamo (San Antonio)
Linda Tudyk, Express-News FCU
Assets: $7.8 Million
Members: 2,473
Ph. 210.250.3081
e-mail: ltudyk@enfcu.org
Amarillo/Top O’ Texas
Sherri Schaible, Pamcel FCU
Members: 2,262
Ph. 806.663.4950
skschaible.pampa@celanese.com
Big Spring
Sherry Roman, T&P FCU
Members: 2,038
Ph. 432.263.1631
swtpfcu@wtconnect.com
Central Texas
Gary Parker, 1st University CU
Members: 3,641
Ph. 254.752.2797
gparker@culink.net
Coastal Bend (Vacant)
Dallas
Teri Portillo,
Women’s Southwest FCU
Members: 583
Ph. 214.887.0700
wsfcudallas@aol.com
East Texas
LaWanda Drennan, Sweetex CU
Assets: $10 Million
Members: 1,150
Ph. 903.753.1150
lgdrennan@cs.com
Ft Worth
Rita Dexter, NRCS FCU
Members: 1,421
Ph. 817.921.9302
ritadexter@nrcscreditunion.org
Houston
Lynda Milton
Houston Teamsters FCU
Members: 1,605
Ph. 281.876.2501
houstonteamsters@sbcglobal.net
Permian (Midland/Odessa)
Kay Rankin,
Ward County Teachers CU
Members: 1,560
Ph. 432.943.3445
kay@wctcu.net
Sabine
Loyd Patterson, Firestone
Community FCU
Members: 4,291
Ph. 409.697.2461
lpatterson@firestonecommunity.org
Texas Crossroads
Betty Shelton,
Guadalupe Valley FCU
Members: 1,100
Ph. 830.857.1204
bshelton@gvec.net
Wright Patman
Ronda Nichols,
Texarkana Terminal Emp FCU
Members: 1,530
Ph. 903.794.8216
ttefcu3@aol.com
ASSET CATEGORY
DIRECTORS
Under $10 Million
Carol Murray,
Southeast Community CU
Members: 1,250
Ph. 210.333.3700
carolatseccu@hotmail.com
$10 - $20 Million
Suzanne Chism, Texas Health
Resources CU
Members: 4,098
Ph. 214.361.3800
thrchis@aol.com
TCUL Liaison
Val Atkins,
Small CU Development
Ph. 800.442.5762, ext. 6824
vatkins@tcul.coop
By Paul Montoya
President of Human Resource and
Management Services
The Right
Stuff
Challenges for Small Credit Unions in
Finding Qualified Applicants
9/11, THE ECONOMY WAS
buzzing, consumers were excited about having
more disposable income, and companies were
spending on upgrades, conversions, training, extra
staff, and marketing efforts. During this time, whenever
openings existed, a large pool of qualified applicants was available just for the asking.
Since that time, however, huge corporations have folded,
many executives have been disgraced, war has erupted, bankruptcies have increased, and consumer spending has decreased.
Only until recently has this trend shown any indication of
going back to pre-9/11. Hopefully, this trend will continue.
In the meantime, however, whenever there is an opening
for an organization, the number of applicants is still fairly
large, but, the number of qualified applicants is severely limited. Reduced spending, downsizing, restructuring, layoffs,
and other events have forced organizations to become smarter
and leaner. As a result, in far too many instances, the people
looking for work are sometimes the ones that couldn’t keep
up with the standards being required. Therefore, they were
downsized, laid off, or disillusioned. And this is the dilemma
facing credit unions, especially the smaller credit ones.
The reason smaller credit unions feel this more than the
larger credit unions is because of the inherent organizational
problem associated with smallness—properly defining the
common job duties of the open
If an opening exists, smaller credit unions
position.
need to be honest with themselves:
Smaller credit unions can’t
• Are they going to lower their standards
match the staffing, resources,
and hire someone not fully meeting the
training, sponsorship, support,
qualifications of the opening?
and budgets of larger credit
• Are they prepared to go to Plan B and
unions. So when an opening exPlan C in the event no qualified applicants
ists, smaller credit unions have a
come through the door?
more difficult time in finding:
• Are they willing to wait for the right
A
FEW YEARS AGO, BEFORE
person, even if it means redistributing the
work for a few employees with no definite
timetable in mind?
1. Applicants that are wellversed in teller, member service,
and lending transactions;
2. An HR person having experience in marketing and
public relations;
3. A CEO having strong experience in HR and finance, and
4. A strong member service person knowledgeable in
IT operations.
Properly defining the common job duties becomes a problem because typically, the smaller credit union goes through
the following:
1. The credit union will have a pretty-good idea of
what they need.
2. Once they experience the disappointing number of
qualified applicants, they start re-defining the position:
• “Maybe we should forget about the marketing
background and I’ll do it,” or
• “Instead of looking for someone with strong IT
experience, let’s outsource that function,” or
• “Don’t we already have someone we could train?,” or
• “Why don’t we just forget about that background for now
and maybe come back to it in the summer.”
As mentioned, the low number of qualified applicants in
effect virtually forces this type of thinking, resulting in
changing the focus of the type of background needed for a
certain position.
If a credit union, particularly a small one, feels confident
about the opening and its qualifications, then the credit
union needs to be prepared to not fill the opening for at least
four to six weeks. This is the average considered for all credit
unions. As with all averages, some credit unions will get lucky
and fill the position immediately, while others will take six to
nine months to fill the position with the right person.
These are tough decisions that address a tough situation,
but ones that need to be debated and settled before the
position is advertised. ★
27
Regulatory
By Allison Castle,
TCUL Communications Director for Advocacy
Profile
Harold Feeney:
The man behind the job
Ten years into his job as
commissioner, he shows no signs
of slowing down.
T
HIS YEAR MARKS HAROLD FEENEY’S 10TH ANNIVERSARY
as Commissioner of the Texas Credit Union
Department (TCUD). In this role, he is charged with
chartering, regulating and supervising state-chartered
credit unions. Beyond the job, he is a devoted husband, father
and grandfather.
Carolyn Merchan Saegert, Texas Credit Union League’s
(TCUL) legislative and compliance counsel and I set out to
meet with Commissioner Feeney on a Tuesday morning in
early April to talk about the state of Texas-chartered credit
unions and the future for the movement. But mostly, we
wanted to get a sense of who Feeney is beyond the job.
Just off the westbound frontage road on highway 290 in
Northwest Austin sits a small, one-story building. In fact, you
might miss it if you aren’t paying close attention (we almost
did). This stand-alone structure is home to the TCUD.
Just inside the lobby, the Commissioner greeted us. Even
mid-week, Feeney is dressed in a conservative pinstriped suit,
making me glad I picked out my Sunday best to wear. He ushered us back to his office, where for the next hour or so we
talked about children, credit unions, clocks and cruises.
We sat down in his office, which runs along the back of the
building, with windows facing North. Immediately I notice
the calm and simple surroundings, state-agency issued furniture (for those of you unfamiliar with state agency décor —
think Brady Bunch) and a handful of plants. It’s for the most
part quiet, no music, no television, just a solar-panel powered
wind chime making its music every few minutes.
Born in Olympia, Washington, Feeney grew up near a lake
where he and his father spent time together fishing. He graduated from Arizona State University, actually attending college while in the Air Force. His job was in military pay. After
graduating an official Sun Devil, Feeney worked as an examiner for the Arizona Banking Department. In Arizona, both
credit unions and banks are regulated by a single state agency.
Feeney focused his examinations on credit unions, later
28 T C U L ★ S U M M E R 2 0 0 6
working his way up the
chain of command at
the agency.
In 1996, TCUD
lured Feeney, then a 15year-veteran of the
Arizona’s
Banking
Department, to take
the helm of state-chartered credit unions.
When he first started,
Texas had 300 statechartered credit unions. The number has since lessened to
225, something Feeney says has been a disappointing process.
But don’t misunderstand, he insists “Texas-chartered credit
unions are in excellent shape given the economy.”
Feeney and his wife, Barbara, have three grown children
and five grandchildren. The oldest grandchild will be a sophomore in high school and the youngest a fourth grader. Last
year when the Longhorns went to the Rose Bowl, Feeney’s
oldest grandchild marched with the Allen Marching Band in
Pasadena. One proud grandpa, Feeney taped the parade on
three channels to make sure he didn’t miss a drumbeat.
So what does Feeney do in his spare time? “You mean besides
work,” he jokes. He spends time with his family. “Family is probably the most important to me,” he says. “We spend most weekends driving back and forth to Dallas to visit the grandkids.”
When not trekking the I-35 corridor between Austin and
Dallas, the Feeney’s enjoy going on cruises. Recently they
toured the New England states and Canada, and this
December they will take a Christmas cruise through the
Panama Canal.
Most travelers might bring back a T-shirt or two, maybe
even a coffee mug, but the Feeney’s collect clocks from their
worldly destinations. Their first was a grandfather clock.
Since then, they have amassed an enormous collection, in-
cluding cuckoo clocks. “I have them set to go off at different
times,” he says. Because I don’t yet have a feel for his sense of
humor, I assume he’s telling me the truth.
The master of credit union finance has actually built his
own clock. However, before all of you clock enthusiasts start
ringing him for advice on your old timers, he insists it was a
kit, and he couldn’t really make one from scratch.
Nevertheless, collecting clocks is a pretty cool way to spend
your time.
As much as I attempted to pry a little more into his personal
life, the conversation took a natural turn back to the subject
of credit unions.
Feeney shared insight into what he believes credit unions
should do better: diversify. Credit unions, in the opinion of
our state regulator, rely too heavily on auto loans.
He also touched on TCUD’s ongoing effort to hire and re-
tain examiners. (At the time of the interview, they were not
fully staffed.) While the pay is comparable across the board
for college graduates in the field, the pay increases at TCUD
don’t keep pace with the rest of the industry.
Feeney shared his take on technology and the pros and cons
of our increased reliance on it. Several high-profile phishing
scams this year have brought the Internet and its safety to the
forefront of many conversations. However, Feeney sees technology as a blessing for most credit unions. With technology,
credit unions can make up for what we don’t have in brick and
mortar. We can offer convenience without building branches.
Ten years into his job as commissioner, he shows no signs
of slowing down. Fortunately, for Texas, Feeney does not intend to retire any time soon. When he does, he and his wife
plan to stay put right here in Texas. After all, it is where most
of his grandchildren live. ★
29
Regulatory
Regulatory
Q&A
TCLU’s Information Central
Question: Truth in Savings (TIS) rules will change on Oct. 1,
2006 regarding Overdraft Protection Plans. If we promote or
advertise the payment of overdrafts, what disclosures are
required?
Answer: TIS requires the disclosure of fees that may be im-
posed in connection with the account and under what conditions. Credit unions that promote the payment of overdrafts must include the following disclosures in advertising:
The applicable fee or charge;
The categories of transactions covered;
The time period members have to repay or
cover the overdraft; and
The circumstances in which the credit union
would NOT pay an overdraft.
An advertisement does NOT include providing educational
materials, responding to member-initiated inquires about
overdrafts, or notifying a member about a specific overdraft.
Credit unions promoting the payment of overdrafts in advertisements must disclose on the periodic statement, the
total fees incurred for paying overdrafts and the total fees
charged for returning items unpaid. The totals must include
the amount charged for the statement period and for the calendar year-to-date for any account that the advertisement applies. The calendar year-to-date fee totals for 2006 are required to begin on Oct. 1, 2006. The fees for paying
overdrafts and returning unpaid items (NSFs) MUST be separate and not grouped together.
Periodic statement disclosures do not apply to credit
unions that do not promote the payment of overdrafts or that
transfer funds from another account to avoid an overdraft.
The following are examples of advertising or promoting an
ODP program:
Print
Broadcast
Telephone
Electronic advertisements and promotions
Indicating the overdraft limit on a periodic statement
Stating on an ATM receipt or screen that the account
includes available overdraft funds
Indicating the overdraft amount available on an
automated telephone response system or
30 T C U L ★ S U M M E R 2 0 0 6
home banking/website
Periodic statement disclosures must be included on the first
statement that begins after advertising the payment of overdrafts. Credit unions will be required to provide the periodic
statement disclosures for a full two years after the latest advertisement but if a credit union discontinues promoting or advertising their ODP program prior to the mandatory compliance date of Oct. 1, 2006, the two-year rule will not apply,
as it is not retroactive.
The mandatory compliance date has been extended until
Oct. 1, 2006 to allow credit unions the time to implement
procedures, make any software changes and to test their ODP
program for compliance.
Question: I understand that the Office of Foreign Assets
Control (OFAC) has issued a new list that credit unions are required to monitor, in addition to the Specially Designated
Nationals (SDN) list. Can you tell me more about it?
Answer: Yes, OFAC issued regulations restricting dealings
with the Palestinian Authority, which has been in control of
the Hamas political party since March 30. OFAC has created
a new list called the “Palestinian Legislative Council List”
(PLC List) which is separate from the SDN list.
Credit unions should make sure the PLC list is included in
their interdiction software as it is now a requirement to monitor the PLC list in addition to the SDN list.
Question: I ran across NCUA Legal Opinion 05-0903 regarding Skip Payment fees and am totally confused. Our credit
union has never charged a fee on our Skip Pay program because
TCUL’s “Information Central” informed us that skip payment
fees are generally considered a finance charge. NCUA’s Legal
Opinion Letter dated March 28, 2006, states that skip payment
fees are NOT finance charge. Who is correct?
Answer: After consultation with the Federal Reserve
Board, NCUA published Legal Opinion Letter 05-0903A,
dated April 19, 2006, as a “statement of clarification.”
If a credit union charges a fee each time a member skips a
loan payment, the fee is generally considered a finance charge
unless the fee is charged to all members, regardless of whether
the members use the skip payment feature or not. ★
The Roundup
By Lucinda Rocha,
Director of Chapters & Councils
TCUL
Council
Program
The Value of Council Membership:
Credit Union Professional Development
R
EPRESENTINGTHESEVENKEYAREASOFCREDITUNION man-
agement, the Texas Credit Union League (TCUL) Council
Program took form in 2000 providing credit union executives an opportunity to build a statewide network among
peers based upon similar interest, expertise and experiences. To
date, the role of the Council Program has grown exponentially to
a membership comprised of 899 credit union executives (senior
and mid-level managers) sharing resources, contacts, and information related to their specific responsibilities.
TCUL offers the following Councils :
Compliance
CFO
Human Resources
Lending
Marketing
Technology
Operations
Collectively the TCUL Council Program serves as a powerful resource to credit union professionals while providing a
forum for an exchange of ideas that are tightly focused as a way
of maintaining trust and relevance for its membership.
Councils provide some or all of the following :
A governing body, which is the executive committee
White Papers
Seminars
Roundtables
List Services
Annually, members of the executive committees meet to
plan a series of educational forums for their respective membership that tackle current concerns, compare procedures and
policies, investigate new vendors, and help their membership
develop themselves personally and professionally.
The educational offerings are plentiful and growing. Council
roundtables prove to be a more favorable means to receiving
training and educational opportunities. The open learning environment encourages dialogue between participants and presenters. The format of the telephonic roundtables invites members to attend trainings and informational sessions without
having to leave the credit union. With the geographic diversity
in Texas, participants find roundtables appealing due to not hav-
ing to travel great distances to receive trainings. Many credit
union executives throughout the state have described the
roundtables as “…extremely beneficial, offering great content,
and a great way to get required training or updates within a manageable way.”
Even for presenters, participating in council roundtable is a
tremendous opportunity. Beverly Dobesh, director of education services with SWACHA and past presenter shares, “I enjoyed my experience of presenting at the council roundtable
and it was very rewarding. Credit union executives are becoming more aware of the need to keep abreast of the industry
changes and the roundtables are convenient and a very cost effective approach to this type of training.”
Outside of the popular council roundtables, each council also offers its membership access to the council listserv,
allowing members to post questions and receive immediate
answers from their peers as well as exchange vendor information. Several councils produce white papers, host seminars, and serve as an advisory panel in the planning of some
League related events. Two of the seven councils assist in the
planning of conferences. The Marketing Council assist in
the planning of the League’s Annual Marketing Conference
by providing input on topics presented at the conference.
The Lending Council, with its annual Southwest Lending
Conference, offers its membership the opportunity to hear
and interact with top lending professionals from throughout the country.
Membership within any of the seven councils is invaluable
and provides an opportunity for continual learning, professional and personal development, and a means to gaining efficiency to ensure the success of your credit union.
Membership is open to credit unions that are affiliated with
the League. The councils have an executive committee composed of professionals from around the state representing
credit unions of all asset sizes.
If you are interested in membership within any of the councils or want more information on how to participate in any
council related educational programs, please contact Rocha, at
(800)442-5762, Ext. 6413 or via e-mail lrocha@tcul.coop. ★
31
The Roundup
By Lucinda Rocha,
Director of Chapters & Councils
2006 Southwest Lending Conference Breaks New Records
With an all-star line up of speakers discussing the hottest issues taking
place in the world of lending, the 2006 Southwest Lending Conference
proved once again why it is becoming the most popular conference
hosted by the Texas Credit Union League’s (TCUL) Lending Council.
With record-breaking attendance and sponsorships exceeding that
of any other year, TCUL’s Lending Council delivered a stellar conference to credit union lending professionals. The conference, held May
21-24 at the Embassy Suites Outdoor World in Grapevine, brought
credit union lenders from all over the state, including a few from
Arkansas and Oklahoma. Participants gained new insights on how to
deal with the changing face of branch lending, creating collection
strategies, developing effective card programs, implementing direct
lending campaigns and a host of other related topics.
Highlights included an economic outlook presented by Dr. Charles
Idol addressing the underlying factors of slow economic growth and
continued upward pressure on short-term interest rates. Other keynote
speakers featured included Brett Christensen and motivational speaker
and a credit union league favorite, LaDonna Gatlin.
Planning for a conference of this caliber is a yearlong process with work
by members from both the executive and conference committees. Dean
Barnes, chairman of the lending council feels strongly about the benefits
of that the conference provides, stating that, “The lending conference
strives to give its membership the most up-to-date information taking
place in lending. We want our credit unions to aware of the current issues
in the world of lending and remain competitive in the marketplace.”
Conference committee co-chairs Larry Seidl and Gary Parker feel
very passionate about the annual conference as well. Seidl comments,
“I feel it is very valuable to join other lenders at the TCUL Lending
Council Conference. Along with having some of the best speakers
coming in from all over the country, it is a perfect setting to meet fellow lenders and find out what they are doing to generate new loans and
new products.”
“We have exceeded all expectations and the lending council conference is second only to the CUNA lending conference. The conference is
tailored to lenders in Texas by lenders in Texas and has a commitment to
addressing the current and future needs of our members,” states Parker.
With hardly any downtime from this year’s conference, planning
for the 2007 Southwest Lending Conference is underway. Mark your
calendars to attend this informative event May 20-23 at the Hilton
Clear Lake. ★
HOW DOES YOUR CREDIT UNION MAKE A DIFFERENCE?
The Texas Credit Union League (TCUL) would like to highlight the efforts of your credit union or chapter in the LoneStar Perspectives. Please
send any information, details, and quotes about the work you have done to help make a difference in your community to Managing Editor
Linda Webb-Mañon, at lwebb-manon@tcul.coop. This is your chance to take center stage in the LoneStar Perspectives “Credit Unions
Make A Difference Every Single Day” Spotlight. For more information, contact Mañon, at (469) 385-6486 or (800) 442-5762, Ext. 6486.
32 T C U L ★ S U M M E R 2 0 0 6
If you think
what happens here,
stays here. . .
Attend CUNA Mutual’s 2006 Discovery TM Conference in Las Vegas, and you’ll bring back plenty of new ideas to put to work immediately in your
credit union. You’ll be inspired by great presentations and valuable workshops, and network with your peers to learn innovative best practices.
Don’t miss three days of ideas, inspiration and innovation that will stay with you forever. CUNA Mutual is about to make you . . .
Think again.
To get the facts and register, visit
www.cunamutual.com/discovery
or call 1-877-447-5174.
Registration ends May 12th!
001-0412-0206
© 2006 CUNA Mutual Group

Bridging the Gap - Cornerstone Credit Union League

Transcription

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