Friday, October 20, 2017

New Research Shows How Credit Unions Can Attract Members of All Generations

By Laura Williams
For the first time in modern history, there are four generations of consumers, and soon there will be five.  Each generation has its own unique attitudes and emotions, especially towards financial topics—which means credit unions should be prepared to talk about finances in different ways.  

To help credit unions better serve their members and grow through more consumer-focused products and services, we sponsor the Filene Research Center of Excellence for Consumer Decision Making, which studies money behaviors, consumer preferences and behaviors, as well as emerging societal trends.  

Filene’s latest research report, entitled “Generational Money Chatter”, provides research-based insights on how each generation views money and finances. 
A few highlights from the report include: 
  • Baby Boomers view debt as helping make their dreams a reality. 
  • Gen X feels debt is necessary to achieve goals. 
  • Millennials Silents perceive debt negatively, and both distrust corporate messaging. 

By understanding how each generation of consumers feels about money and finances, credit unions can better communicate with members and attract new members of all generations 

You can learn more in the report summary slides and short video.  To read the full report and access more consumer insights, consider becoming a member of Filene Research Institute 

Thursday, October 19, 2017

Orange County’s Credit Union Partners with AdvantEdge Analytics

Our data analytics company,  CUNA Mutual AdvantEdge Analytics, today announced Orange County’s Credit Union, based in Santa Ana, California will implement AdvantEdge Analytics’ data reporting and performance management services to accelerate their data analytics strategy. 

With assets exceeding $1.5 billion, Orange County’s Credit Union serves more than 103,000 members at ten locations across southern California.

“Data is critical to our ability to gain better member insights, but it is also important that we have resources in place to build that type of data-driven organization,” said Laura Thompson, chief information officer, Orange County’s Credit Union. “We are excited to work with AdvantEdge Analytics to help us not only embrace our data journey, but also partner with us on integrating data into our processes and decision making so it becomes a part of our culture. We want everyone to feel part of this transformation.”

Click here to read the full press release. 

Credit Unions Make the World a Better Place in More Than a Few Ways


Today is a day we celebrate the impact of credit unions in communities all over the world. 

As we all focus on how our movement helps  dreams to thrive for people and families everywhere, we’re grateful for the safety of our staff in Puerto Rico, the Caribbean and other regions affected by storms and wildfires this year. And, we’re honored to support causes like CUAid and WOCCU’s Caribbean Relief Fund, efforts that are giving all of us ways to help credit union people in need now and in the future.

If you would like to connect with these efforts, you can do that through CUAid.coop or WOCCU.org. And, if you would like to spread the word, these social media graphics may be helpful.

These are two of countless ways credit unions give back to the people and communities they serve – and to the movement itself. They’re also two of many ways credit unions are making the world a better place for others. Isn’t that what it’s all about?

Credit unions, we salute you for your tireless commitment to making a difference. You make dark days brighter, and you bring great things to life for the people and families you serve – wherever they may be.

Thank you for all that you do.

Wednesday, October 18, 2017

Are You a Retirement Plan Sponsor? Connect With A New Retirement Toolkit for National Retirement Security Week!

It’s National Retirement Security Week* (Oct. 15 to 21), and we have something new for credit unions who offer any of our plans to employees.

In time for this national observance, you can leverage a new toolkit that can help educate and inform retirement plan participants who are saving for retirement.

The online kit includes three on-demand learning modules. These address savings opportunities and obstacles, experienced by people in different generations. More specifically, plan participants can use the information and interactive learning sessions to explore topics designed for Millennials, mid-career employees and those approaching retirement (50 years+) in ten minutes or less.

As a plan sponsor, you can find links to these modules and additional retirement week messages on the Participant Homepage, the Financial Education Page and the Sponsor Information Center Page of BenefitsForYou.com. You can also find promotional materials to help you connect with participants this week including a poster and a “select and send” employee message – are also available on the Sponsor Information Center Page of BenefitsForYou.com.

To provide a layer of promotional support to any of the plan sponsors we work with, we’re issuing promotional emails for this week’s focus to plan participants (who have opted in for email alerts). These go out on Oct. 19, 24 and 26.

Have you watched our RetireOnTarget® eLearning Series this year? If not, take a look and see the value we’re bringing to our clients.


*National Retirement Security Week is sponsored by NAGDCA, The Voice of the Public Sector Defined Contribution Plans, and focuses on helping employees take control of their financial future.

Tuesday, October 17, 2017

Ask A Risk Consultant: Indirect Lending

By Casey Hunt
In a recent risk and compliance webinar we call “Office Hours," we met with several hundred credit unions to discuss the questions they have with the lending landscape today. 

The vice president of a $765-million-dollar credit union had a great question regarding auto dealerships: What should credit unions be doing to manage due diligence and indirect lending in our dealer relationships? 
Ongoing due diligence for automobile dealerships in indirect lending programs is critical to your program’s success. In fact, in situations where relationships were loosely managed and monitored, credit unions have seen some of the largest losses caused by unscrupulous dealerships and their employees or practices.  

To minimize the risks, be sure to: 
  • Understand how the dealership fits into your member demographics, loan growth and risk appetite strategies. 
  • Have a clear understanding of the dealership’s operational structure, and conduct reviews regularly including on-site visits and sales staff interviews. 
  • Establish appropriate growth goals, concentration limits and minimum standards for creditworthiness. This can include credit score and debt-to-income requirements and loan-to-value limitations 
  • Maintain quality control on the vendor’s program administration, underwriting and contract expectations. 
  • Manage your incentive structure effectively to ensure dealers and staff are focused on loan quality, not just loan volume. 
  • Take early action to revise the dealer relationship if you find that one of your lending relationships shows red flags or adverse performance trends.
This question was asked during our October 5, 2017 Office Hours. For more questions from your peers, watch the full recording. Topics included loan fraud, indirect lending, and compliance issues related to the Home Mortgage Disclosure Act, Military Lending Act, and the Telephone Consumer Protection Act.  

To learn even more about lending risk, or submit your own questions, contact the Risk & Protection Response Center at riskconsultant@cunamutual.com or 800.637.2676. 

Saturday, October 14, 2017

The Top Threats to Teen Drivers May Surprise You

According to youth.govOctober 14-20 is National Teen Driver Safety Weeka week dedicated to raising awareness of the serious risks today's teens confront on the roads. 

The Federal Highway Administration reports that there were nearly 10 million licensed drivers aged 19 and younger in the U.S. as of July 2016. And, according to AAA, teen drivers are 9 times as likely as drivers 18 and older to be involved in a crash and 6 times as likely to be involved in a fatal crash.

Statistics like this are sobering for any parent, any teen and anyone who shares the road with these young drivers. Understanding the risks and finding ways to help neutralize them are good first steps in striving for a safer, better driving experience for everyone.


Understand the Threats
The top threat to teens’ driving safety may surprise you. It's not their smartphones. According to the CDC, the No. 1 threat is driving or riding in a car with another teen driver. And, the main cause of fatal teen auto crashes is driver inexperience.

And, as we all heed warnings about distracted driving, a 2017 study by Liberty Mutual shows that getting older may not help younger drivers. It reports older teen drivers are more likely to use a phone while driving than younger teens: In fact, 67 percent of high school seniors, 58 percent of juniors and 49 percent of sophomores admit to using apps while driving. While other dangerous behaviors include having 3 or more passengers, speeding and driving when drowsy.

Find Safety Solutions and Tools
To support awareness and safety for teen drivers, you can leverage a number of resources that are available for free. For example:
  • The National Highway Transportation Safety Administration offers resources to help people of all ages avoid distracted driving. It reminds us that teens, parents, educators and employers can all take action to help enhance safety for teen drivers. 
  • Some of the solutions make a lot of sense. Graduated Driver Licensing systems can reduce crashes involving teen drivers by as much as 40 percent, according to the National Safety Council
  • If you have an iPhone, you know the latest iOS update includes a Do Not Disturb While Driving feature that can disable notifications, calls and texts while you're driving. And, there are several smartphone apps and other tech tools that can help support safe driving for anyone of any age.
  • For parents with teens, the CDC suggests having regular conversations about safety, practicing driving together, and leading by example. It can go a long way in ensuring your teen makes smart decisions when they get behind the wheel.

No matter how old you are, we remind you that your safety always comes first -- whether you're seventeen or seventy -- especially when you're driving.

For more information supporting National Teen Driver Safety Week, see the tools, links and resources available through youth.gov here, or search #TeenDriver this week through your social media channels.
 
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Wednesday, October 11, 2017

Safeguard Your Members’ Confidentiality

By Bob Bouvier
Data breaches, hacked, stolen data and identity theft are all terms weve become accustomed to hearing
Unfortunately, it can be difficult to repair the damage these can cause to your reputation -- especially if data compromises occur with social security numbers, birthdates, addresses or account numbers.

Credit unions can 
perform a review of daily practices to help minimize the risks and protect member information from fraudsters. Unfortunately, member information can be easily compromised, and it often happens inadvertently. It can leak during business-hour conversations in public areas, through after-hours access to information. And, sometimes, it's even leaked right in front of members. 

To help keep your members’ confidentiality secure, consider these tips
  • Keep member information confidential. Don’t leave member loan files, account cards or deposit slips on your desk or at your teller stations.
  • Keep private conversations about members private. Avoid discussing members business in front of other members or use the other members names.
  • Maintain detaileddocumented procedures for identifying members over the phone and online.
  • Enforce a clean-desk policy to help prevent after hour compromises, and be aware of who has access to the credit union after hours (for example, cleaning and maintenance crews, tech consultants, etc.). Be sure loan files and account information is always secured whenever not in use.
  • Place documents for shredding in a locked, shred bin at the end of the day, not a small container under your desk. When the shredding company comes to unload the bins, they should do the shredding onsite while a credit union employee observes to ensure all the documents are destroyed.
  • What happens at the credit union stays at the credit union. Reinforce with staff that they should always maintain member confidentiality when off the premises.
  • Develop and provide policies regarding what staff can and can’t share on social media. An innocent picture or comment posted to social networks can unintentionally share confidential information. 
Member confidentiality is a critical component to maintaining your members’ trust. Be sure you are continuously protecting your members and your credit union’s data: Enforce policies and train staff to carefully handle information and keep it confidential.  
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