Q2 2013 lscu signal magazine by ThinkCreative

The Magazine of the League of Southeastern Credit Unions Summer 2013

Protecting Your Credit Union & Your Members

Plus Donâ&#x20AC;&#x2122;t Tax My Credit Union

Credit Unions Asked to Mobilize Membership

LSCU & Affiliates Is Now a Nationally Registered CPE Sponsor

LEVERAGE Launches Innovation Group

IMPROVE

REGULATORY COMPLIANCE WITHOUT DEPLETING RESOURCES YYou ou have have reduced reduced risk risk aand nd iimproved mproved ccontrols. ontrols. YYou ou have have confidence confidence tthat hat yyou’re ou’re uup-to-date p-tto-date w ith rregulatory egulatory cchanges. hanges. with YYou ou have have streamlined streamlined processes processes aand nd ccosts osts aassociated ssociated w ith with compliance management. management. compliance YYou ou have have peace peace of of m ind. mind. YYou ou have have tthe he rright ight ppartner. artner. YYou ou hhave ave L LEVERAGE. EVERAGE.

AUTOMATED COMPLIANCE EXECUTION

FFind Fi nd oout ut hhow o aatt ow LEVERAGE LEVE RAGEE is the busi business ness ser service services vicess subsid su subsidiary bsidiary ary of the Leag League ue of of Southe So Southeastern utheaste astern rn Credi C Credit reditt Unions Unions

myleverage.com myleverage.com

LSCU

Message from the President As you know, preserving the credit union tax exemption is the highest priority for CUNA and the leagues. Over the years our tax exemption has been reaffirmed by Congress numerous times, but in Washington, D.C. anything can happen. One of Congress’ main priorities is looking at comprehensive tax reform. The House Ways and Means Committee has indicated that it will look at all tax exemptions and that it will start with a blank piece of paper. This means more than 400 tax exempt companies are working to get on that piece of paper and that includes credit unions. This past February, the credit union tax exemption was one of the main talking points as credit unions and the LSCU met with lawmakers as part of the CUNA GAC. The League’s governmental affairs staff has been to Washington, D.C. a couple of times already this year and we continue to educate our congressional delegations and their staff on the credit union difference and the benefits of the credit union tax exemption and why it is still good public policy. In May, CUNA unveiled a “Don’t Tax My Credit Union” initiative to not only get credit unions involved in the tax exemption conversation, but to get them to take this issue to their membership. Most of you have not been asked to mobilize your membership before. H.R. 1151 was 15 years ago and that was the last time the movement really came together, as a whole, to push a piece of legislation. I would think that preserving the credit union tax exemption would qualify as a priority. “Don’t Tax My Credit Union” is asking you to not only do the traditional correspondences from your staff and volunteers, but to ask your members to also let their lawmakers know that they want their credit union to continue providing the same great service they expect. How do we do this? CUNA has a website, www.donttaxmycreditunion.org, and a Credit Union Tax Status Advocacy Toolkit on its website, www.cuna.org. Credit unions are encouraged to visit both websites to familiarize themselves with the resources available. The Credit Union Tax Status Advocacy Toolkit has sample articles, news releases, and a Credit Union Tax Advocacy Plan to mobilize your membership. The plan includes what credit unions should be doing, including setting up a kiosk in your branches to get members to visit the “Don’t Tax My Credit Union” website and take action right on the spot. There are many other good ideas inside the plan. I ask that you take this tax exemption fight seriously. We need the entire movement to begin putting a plan together and pushing this information out to staff, volunteers, and members. Don not sit on the sidelines to see where we are at in a month or two. It could be too late. If the credit union tax exemption is left off that blank piece of paper, it could mean the end of credit unions as we know it and maybe the end of credit unions, as a whole. While that may seem farfetched, it is not and I frankly do not want to cut it close. One thing to note, this should not be confused with CUNA’s “Unite for Good” initiative which was introduced at the CUNA GAC. That is a separate initiative that will help the entire movement speak with one voice. I understand that there could be some confusion since CUNA has rolled out two programs within a couple of months. If you have any questions, contact me or my staff. Let’s work together to get back on the piece of paper so we can continue to serve our almost 100 million members well.

Patrick La Pine, CCE, CUDE President & CEO League of Southeastern Credit Unions

Table of Contents

President’s Message

Trends Data Breach: Protecting Your Credit Union & Your Members

Editor Amy Jowers Contributors Bill Berg Mike Bridges Natalie Edwards Kevin Lytle Jared Ross Adena Whitman Laura Vann

Financial institutions are particularly vulnerable to data breaches, unfortunately so are their members. Though your credit union is subject to regulations and rules designed to protect it from a breach, your members and the merchants they use may not be. Regardless of where the breach occurs your credit union will be accountable in making it right with your members.

New CEOs Popping Up Across Alabama & Florida

Design & Production Detra White April Banta Letters to the editor may be submitted at submission@lscu.coop.

Connect with us!

Advocacy Meet LSCU’s Contract Lobbyists – An Integral Part to GA Success Advocacy in Action: CUNA GAC & State GACs 2012 PAC Awards

LSCU Legislator Profile Representative Oliver Robinson Congressman Patrick E. Murphy Representative Oliver Robinson

Congressman Patrick E. Murphy

LeagueofSoutheasternCreditUnions @LeagueofSECUs

Highlights LeagueofSECUs www.lscu.coop 4

11 | Advocacy

Lobbyists are an essential part of any effective advocacy group. Learn more about lobbyists who are helping the League educate and persuade lawmakers.

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 4, Issue 2

20 | Compliance

At a roundtable discussion, the CFPB discussed its future goals and proposed changes to the Qualified Mortgage Rule.

22 | Cooperative Initiatives

The League, along with eight other credit unions, hosted interns from Costa Rica as part of the WOCCU International Credit Union Leadership Program.

Compliance Roundtable Discusses CFPB’s Future Goals & Qualified Mortgage Rules Q&A with Drew Breakspear

Cooperative Initiatives Learning by Example through WOCCU Leadership Program CUDE Certification: An Investment Worth Making Hurricane Season Is Upon Us A Voice of Experience: Hope Dahlke, Business Development Officer, Secure First Credit Union

Education LSCU & Affiliates Is Now a Nationally Registered CPE Sponsor Upcoming Learning Opportunities

Communications September to See Launch of 2013 Image Campaign

League News Credit Union Philosophy in Action Workshops

Industry Don’t Tax My Credit Union – Credit Unions Asked to Mobilize Membership

LEVERAGE LEVERAGE Launches Innovation Group How to Maximize the Sprint Marketing Incentive for Credit Unions CUNA Mutual Group Invites Credit Unions to Go Paperless The Shift Towards Self Service: What Does This Mean to Credit Unions?

LSCU Staff Directory

Highlights 33 | Industry

It will most likely be a busy summer for credit union advocacy. Therefore, CUNA has launched the new “Don’t Tax My Credit Union” initiative to aid credit unions in their advocacy efforts.

28 | Education

31 | Communications

LSCU & Affiliates is now a nationally registered CPE sponsor and approved to offer continuing professional education worth CPE credits for CPAs and other licensed professionals.

The third installment of the LSCU Cooperative Image Campaign will debut across Alabama and Florida on September 3. SIGNAL: Vol. 4, Issue 2

2010, 2011, & 2012

www.lscu.coop

TREND

DATA BREACH Protecting Your Credit Union & Your Members Natalie Edwards, coordinator, Communications, LSCU Data breaches are an ongoing concern to companies, and rightfully so. No company, regardless of if it is a small â&#x20AC;&#x153;mom and popâ&#x20AC;? or a large national chain, is immune to a data breach. Financial institutions are particularly vulnerable. According to the 2013 Verizon Data Breach Investigation Report, 37 percent of data breaches affected financial institutions, which is a higher percentage than any other victim company. The high percentage was mainly due to a large number of ATM skimming incidents. However, based on network intrusions alone (incidents involving hacking or malware actions), the percentage of data breaches affecting financial institutions dropped to 8.1 percent. The lower network intrusions percentage is not surprising as credit unions are subject to regulation, rules, and letters issued by the National Credit Union Administration (NCUA), Federal Financial Institutions Examination Council (FFIEC), and the Department of the Treasury regarding the safe keeping of data and breach notification. In fact, according to the Government Accountability Office, the existing requirements on credit unions are among the toughest in the nation. Even though credit unions are proactive and significantly more successful than many other companies in preventing network intrusions, when data breaches do occur it is the credit union that pays the price, both literally and figuratively. When a merchant data breach occurs, credit unions and other financial institutions are typically the ones who foot the bill, an expense that is often more than meets the eye. Tyndall Federal Credit Union (FCU) in Panama City knows this all too well. Though Tyndall has not had a data breach at their credit union, their members have had card account information compromised through various merchants and third party sites by means of skimming devices, network intrusions, and more. The last major data breach occurred at a merchant less than six months ago and affected 230 Tyndall FCU members. To resolve the breach Tyndall covered the cost of the fraud, blocked the compromised cards and card transactions, issued members new

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 4, Issue 2

cards, and covered the cost of getting the new cards to members. Tyndall also provided, and continues to provide, member education regarding fraud, industry trends, and fraud prevention. Additionally the credit union proactively monitors transaction trends and blocks high fraud risk transactions before they are approved at the merchant. To maintain confidentiality, Tyndall FCU did not release the financial cost of that data breach, but did explain that due to their fraud processes and enhanced software solutions its losses have been less than what it would have been expected otherwise. In addition to the financial cost of a data breach, credit unions also have to think about reputational cost. Unfortunately, credit unions are not permitted to disclose the source of a breach to members. Thus, a credit union often becomes a victim of guilt by association and, ultimately in its effort to make members whole, becomes the face of the data breach. To minimize any potential reputational damages, Tyndall has worked to inform members of the steps it takes as an organization to protect its data and suggest ways members can also be proactive in protecting their information.

“Educate members on the steps they can take to protect themselves while continuing to evaluate and enhance organizational tools so you that you can be proactive, rather than reactive, when it comes to fraud,” said Todd Peeples, Tyndall FCU’s vice president of informational technology. In addition to Peeples’ recommendation, the 2013 Verizon TTodd dd Peeples P l Data Breach Investigation Report makes eight suggestions regarding what credit unions can do to reduce breach activity: 1. Eliminate unnecessary data and keep tabs on what’s left. 2. Ensure essential controls are met and regularly check them. 3. Collect, analyze, and share incident data to create a rich data source to drive security program effectiveness. 4. Collect, analyze, and share tactical threat intelligence-especially indicators of compromise--that can aid defense and detection. 5. Without deemphasizing prevention, focus on better and faster detection through a blend of people, processes, and technology. 6. Regularly measure data such as number of compromised systems and mean time to detection in networks, and use them to drive security practices. 7. Evaluate the threat landscape to prioritize a treatment strategy. Avoid the one-size-fits-all security approach. 8. If you are a target of espionage, don’t underestimate the tenacity of the adversary or the intelligence and tools at your disposal.

“It would be beneficial to all consumers if merchants were held more accountable. Presently, the consumer and the financial institution carry most of the burden if fraud or data breaches occur at the merchants. Merchant accountability would go a long way to help improve the current data breach environment,” said Peeples. Only Minnesota has a law that makes merchants liable for the cost of data breach, however five other states (California, Connecticut, Illinois, Massachusetts, and Texas) have proposed similar legislation. Minnesota’s law, enacted on May 21, 2007, gives financial institutions the right to sue a merchant to recover the costs of a breach, including the financial institution’s cost to cancel and reissue cards, to close and reopen related accounts, to reimburse cardholders for unauthorized transactions, and to notify card holders affected by the breach. In Alabama, data breach legislation has been introduced in past sessions with very little movement. In Florida, data breach legislation has not been introduced; however, several lawmakers have mentioned that it may be something to look at in the future. Any interest at this time is a base level interest of learning more about the issue and what the legislation would entail. “We have been trying to educate lawmakers on the issue and why it is important to financial institutions,” said Jared Ross, vice president of governmental affairs, LSCU. “At this time, no one has expressed a specific interest in filing legislation, but we are working on trying to have that done in the very near future.” ■

SIGNAL: Vol. 4, Issue 2

www.lscu.coop

New CEOs Popping Up Across Mike Bridges, vice president, Communications, LSCU

Spend any amount of time with credit union folks and you will hear great stories about longtime employees. These are seriously longtime employees who have given their entire life to the movement. It is not uncommon to hear about a credit union employee who has worked for 40 or 50 years at their credit union. Many times that person is the CEO. As the economy improves, many CEOs are retiring which opens the door for new CEOs. For credit unions in Alabama and Florida, new CEOs are starting to pop up across both states. South Florida Educational Federal Credit Union (FCU), based in Miami, saw its CEO Bill Page recently retire after 38 years. In January, Mike DiBenedetto was hired to replace Page. DiBenedetto is a native Alabamian that has worked at a number of credit unions in Alabama and Florida, following a nine-year Mike DiB Mik DiBenedetto d tt stint at the NCUA. He said he made a decision while at the NCUA that his heart was more into working at a credit union instead of working for the regulator. “For 20 years I worked to be competitive and to be successful in a credit union role. I had an internal plan to transition from the regulator to CEO,” said DiBenedetto. That meant leaving Washington, D.C. and relocating back to his roots to work at University Credit Union (CU) and Dade County CU in Miami and Family Security CU and Legacy Community FCU in Alabama. By 2007, he had moved from the Southeast to Texas and accepted a job at FirstLight FCU in El Paso as the executive vice president of administration. At FirstLight, he began to see how the entire credit union experience impacts members. “What I saw in El Paso was how to be active in the community and what that meant to our membership. It taught me how to be serviceoriented in everything I do,” said DiBenedetto. “That impacts me today as a CEO at South Florida Educational. Plus, I know what it’s like to live in a multicultural area and serve the community.”

Alabama and Florida credit unions have seen at least 15 new CEOs in the past year. Below is a list of new, recent CEOs: • Joe Akins at SunState FCU, Gainesville • Sadie Chaney at Clarke Educators FCU, Grove Hill, AL • Tim Cook at TMH FCU, Tallahassee • Theresa Johnson at SRI Employees FCU, Birmingham • Dan Kelley at Seminole Schools, Sanford, FL • Will Lieb at IAM Community FCU, Enterprise, AL • Aaron Logue at City & Police FCU, Jacksonville • Ray Price at Fedmont, Montgomery • Pam Rower at South Atlantic FCU, Boca Raton • Anita Crews at Country FCU, Macclenny, FL • Steven Nazaruk at Ocala Community CU, Ocala • Joe Mirachi at Kennedy Space Center, Merritt Island • Rich Simonton at AOD, Bynum, AL

Almost 700 miles away, Pen Air FCU, based in Pensacola, had made a change at CEO. Former Fort Campbell FCU CEO Stewart Ramsey was hired away from Clarksville, TN. Unlike DiBenedetto, Ramsey did not have a credit union career path in mind. He had an accounting background but looked in the paper and saw a credit union position. His life was about to change.

Stewartt Ramsey St R

Alabama & Florida “Despite no financial institution background, the CEO felt like I was the right fit for the team he was building,” said Ramsey. “Once I got to understand the industry I wouldn’t work in any other now.” In 2007, two years after joining Fort Campbell FCU, Ramsey was named CEO. He helped the credit union add $200 million in assets in five years. While he was secure in his position in Tennessee, the opportunity to join Pen Air presented itself in 2012. Ramsey saw enough in the opportunity to head south, far away from his beginnings in Wisconsin. “What drew me to Pen Air was their financial strength through the difficult economic times, their great community presence, and reputation. Once I met the board and some of the executive team, I couldn’t imagine a better place to work,” said Ramsey. DiBenedetto and Ramsey are just two of 15 new CEOs in Alabama and Florida. What each brings is a unique perspective of the credit union movement from outside of Alabama and Florida’s borders. While

DiBenedetto did spend considerable time in the two states, he also picked up many nuances from FirstLight in El Paso. Both DiBenedetto and Ramsey say that credit unions are not that much different across the country. “Every credit union is unique and every credit union needs to focus on their niche. South Florida’s niche is that it’s an educational community,” said DiBenedetto. “At South Florida Educational we give 15 fully paid scholarships. These small things have a huge impact and permeate throughout the culture.” Ramsey does see a difference in advocacy efforts from previous credit union jobs. “My observations would be that most all Wisconsin credit unions get very involved in legislative issues and, thus, have a strong presence in the state. Florida and Tennessee have both been a bit more divided in participation levels. I would encourage all Florida and Alabama credit unions to get and stayed involved,” Ramsey said. ■

The boards of Pen Air FCU and South Florida Educational utilized the services of LEVERAGE partner O’Rourke when searching for a new CEO. In addition, new Seminole Schools CEO Dan Kelley was chosen after the board utilized LEVERAGE’s new executive recruiting services, HR Executive Recruiting.

SIGNAL: Vol. 4, Issue 2

www.lscu.coop

INCREASE NON-INTEREST INCOME AND MEMBER SATISFACTION YYou ou have have additional additional in income ncome ffrom rom ffees ees aand nd m marketing arketing iincentives. ncentives. YYou ou have have a broader broader range range of of services services ttoo ooffer. ffer. YYou ou have have satisfied satisfied members members who who value value the the options options yyou ou pprovide. rovide. YYou ou have have overdraft overdraft pprivilege rivilege ccompliance, ompliance, bbusiness usiness llending ending ggrowth, rowth, and additional additional rrevenue. evenue. and YYou ou have have the the right right ppartner. artner. YYou ou hhave ave L LEVERAGE. EVERAGE.

myleverage.com myleverage.com

ADVOCACY

Advocacy Meet LSCU’s Contract Lobbyists – An Integral Part to GA Success Jared Ross, vice president, Governmental Affairs Passing legislation is never an easy task, even when the policy makes complete sense. In order to be an effective advocacy group, trade associations and other organizations often employ lobbyists, both internally and on contract, to help educate and persuade lawmakers on their issues. Along with expanding our internal staff, the League has contracted with firms in Alabama, Florida, and Washington, D.C. to help in our advocacy efforts. In Alabama, the League hired Kim Adams on retainer and, in her first year, she has already made tremendous strides. Kim was able to help the League’s GA team file legislation to update the Alabama Credit Union Act and see it pass through one Senate committee. While the legislation failed to receive a floor vote, that was due to political Kim Adams Ki Ad issues outside of our control, and we are certain that next year, similar legislation should have no issues being passed. “I applied to work with the League of Southern Credit Unions because I feel that credit unions provide a unique service to the citizens of our state. Credit unions play a vital role in the financial economy of this state,” Adams said. Kim became a credit union member during her time as special counsel to Alabama Supreme Court Chief Justice Perry Hooper, a membership she maintains today. She says we, as credit union advocates, must continue to educate elected officials in Alabama on the value of membership. Kim believes that education process has already started. We asked Kim why she felt the Alabama Credit Union Act bill did not receive a floor vote. “This session was a very difficult session for everyone. A bill now known as the Education Accountability Act was passed fairly early in the session and due to its controversial nature and the way in which it was passed by the legislature the legislative process completely broke down. The Democrats began a relentless filibuster and the Republicans with a super majority in both the House and Senate further exacerbated the problem with a series of cutting off debate motions. The Democrats could therefore only slow things down for a limited amount of time resulting in further delays at every juncture. As a result very few bills passed. Unfortunately, the Credit Union Modernization Act got caught in this log jam and was prevented from

becoming law. Its introduction did however facilitate educating many legislators about credit unions and the services they provide. We fully expect this bill to pass in the next legislative session.” She continues to believe LSCU has made some great strides on educating lawmakers, however, she said we must continue to get better organized in order to promote a grassroots organization where members can be mobilized so the voice of the credits unions can be heard. Kim says, “Our legislative team has committed to hosting functions and doing our part to promote credit unions. I am honored to be a part of the credit union team during this transition. I feel very confident that the future is bright for this industry.” In Florida, the League continues to employ the firm of Fearington & Smith, longtime credit union advocates, who just finished their twelfth legislative session representing the League in Florida. Clark Smith, one of the partners of the firm, stated that while a contract employee of the League, he truly believes in the credit union mission and feels “part of the credit union family.” Their effort to help the League pass legislation has been tireless and while the main proactive piece of legislation has yet to be passed, the firm believes we have made great strides since the initial introduction of this issue. “Three years ago, the public deposit issue was filed as a standalone piece of legislation for the first time. Most legislators either didn’t know what it meant, or didn’t realize that credit unions couldn’t accept public funds. Since then, we’ve had the bill pass out of a committee and have seen it become one of the bigger issues in Florida politics. While it will Mercer Fearington never rise to the level of the state budget, the fact that the speaker of the Florida House and Senate president are well aware of the issue and have been supportive, shows just how much work has been done,” said Mercer Fearington. Clark, Mercer, and fellow Fearington & Smith lobbyist Steve Dyal, have been working hand in hand with the League on all of our legislative efforts. While success is usually measured by wins and losses, Dyal cautioned that credit union advocates should not take the failure to pass a bill as a sign of defeat. “Passing legislation is a multiyear process in Florida. There will always be issues that pop up and pass in one year due to extenuating circumstances, but it normally

SIGNAL: Vol. 4, Issue 2

www.lscu.coop

takes several years to pass a single piece of legislation. Just this past session, two interest groups were able to come to an agreement on an issue that they had fought for over two decades. Patience is a virtue in lobbying, even in our instant gratification society.” Clark said the biggest piece of advice he can give to credit union advocates is to get involved early and stay involved. “Whether public deposits is your issue, or something else, it is important to be an outspoken advocate Clark Smith for credit unions. By flexing our grassroots muscle on this issue, it will show lawmakers, and our opponents, that our base is strong and our message is clear. Getting in to see your member while he or she is home in the district is a big key. They hear from us all the time in Tallahassee, they must hear from their constituents back home.” Also contracting with the League is longtime credit union lobbyist John McKechnie. John works with the League on our federal issues and is based in Washington, D.C. He has been in the credit union industry for more than 25 years, spending John McKechnie 18 and a half years with CUNA in a variety of political and legislative roles. He left after receiving a presidential appointment as director of public and congressional affairs at the National Credit Union Administration. Since leaving NCUA, he has spent over two years as a partner in the Washington lobbying firm Total Spectrum.

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 4, Issue 2

John says that the credit unions in Alabama and Florida “get it” when it comes to governmental affairs. “They have always been engaged, active, and very aware of the need for comprehensive involvement in the advocacy process.” John, who also works with other Leagues, has said that working with the LSCU is much different and in many ways, more rewarding. “The congressional delegations encompassed by LSCU are not only large and diverse, but they feature some of the most influential and powerful members of Congress concerning credit unions. This makes the task presented all the more important, challenging, and ultimately rewarding.” John also believes the key to being successful in advocacy is being involved with your lawmakers. It is important for them to understand why these issues matter and why credit unions are significant. He says that the most important piece of advocacy advice he can give is to make everything about the credit union member. “ This connects the dots for lawmakers regarding the essential role credit unions play in the marketplace on behalf of consumers, and that translates into influence, being listened to, and ultimately being effective in helping credit unions serve their members,” said McKechnie. These contract lobbyists and our internal governmental affairs staff strive each day to be the best credit union representation in the country. While the GA team does a great job, it cannot be done alone. We need you, our credit union advocates, to be involved in order to really make a difference. We will continue to put the resources necessary to pass legislation and prevent negative legislation from becoming law, and hope that you will partner with us in our efforts. ■

E N GAGE MOBILE/VIRTUAL CO-OP Mobile P2P | Sprig CO-OP Check Imaging CO-OP Online Services

CARD PAYMENTS CO-OP Debit CO-OP Credit

ACCE SS

LOCATIONS CO-OP Network CO-OP ATM CO-OP Shared Branching CO-OP Member Center

SH O P

Be there when they need cash on a cross-country road trip. A check deposit while away at college. A human voice at 2 A.M. Or to transfer funds with the tap of a fingertip. Be there for more members, at more points in time, in ways they never thought possible. Be

more.

Dig deeper at co-opfs.org ÂŠ2013 CO-OP Financial Services

ADVOCACY

Advocacy in Action: CUNA GAC & State GACs Each year, the League and our member credit unions attend several important grassroots lobbying events. Chief among these events are the annual Governmental Affairs Conferences (GACs) held in Washington, D.C., Montgomery, Alabama, and Tallahassee, Florida. These conferences give credit union advocates an opportunity to interact with lawmakers, network with other credit union professionals, and bring awareness to the most important issues facing credit unions at federal and state levels.

CUNA GAC In February, more than 140 advocates from Alabama and Florida attended the CUNA GAC in Washington, D.C. LSCU President Patrick La Pine was recognized on the first day of the event for the League’s fundraising efforts towards a rehabilitative playground at All Children’s Hospital in St. Petersburg, Florida. The playground was last summer’s leave behind project in conjunction with the Republican National Convention. Other first day highlights included keynote presentations by renowned author Jean Chatzky and famed journalist Tom Brokaw, as well as the Herb Wegner Memorial Awards. South Florida Congresswoman Debbie Wasserman Schultz commenced the second day of the CUNA GAC, meeting with LSCU advocates before speaking at the morning session. She was followed by Alabama Congressman Spencer Bachus, a point/counterpoint featuring former Mississippi Governor Haley Barbour facing off with former Democratic National Chairman Terry McAuliffe, and the Speaker of the United States House of Representatives John Boehner. LSCU Chair Mary Wood and her husband Art Wood, both credit union CEOs, received the Buck Levins Award. The award is given annually to the League or individual who exemplifies outstanding grassroots advocacy in furthering the credit union mission. Mary and Art became the first couple to ever win the award and the League’s second recipient. Former League employee and longtime credit union advocate Aletta Shutes won the award in 2008. The League also recognized Congressman Bill Posey and Congressman Jo Bonner as the 2012 Federal Lawmakers of the Year for their respective states. The League’s advocates were able to visit with every congressional office on Capitol Hill. They discussed the credit union tax exemption, member business lending, supplemental capital, and regulatory relief with legislatures. The message was well received, and the League continued to see results from its advocacy efforts as several cosponsors were added to key pieces of legislation after the visits. It was another successful trip to Washington, D.C. and set the stage for both the Alabama and Florida GACs that would follow. 14

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 4, Issue 2

Florida State GAC The 2013 LSCU Florida State GAC was held in Tallahassee in March and was attended by dozens of credit union officials and members. The GAC offered attendees an in-depth look at advocacy on the state and federal level, and provided two unique opportunities to build relationships with state lawmakers. The first opportunity, the lawmaker reception, was highly attended, with more than 30 legislators stopping in to say hello or staying awhile to speak with attendees in an informal setting. The second opportunity, the Hill visits, provided attendees an opportunity to advocate on behalf of credit unions and communicate the industry’s legislative priorities to lawmakers and their staff. Florida Chief Financial Officer Jeff Atwater was featured as the keynote speaker. His message focused on economic recovery in the state and the role that credit unions play in that effort. CFO Atwater also publicly announced his support of legislation that would allow credit unions to apply to become Qualified Public Depositories (QPD’s). Other sessions featured at the 2013 GAC included a closer look at regulatory and legislative priorities, the state legislative outlook, and PAC fundraising with an emphasis on member involvement.

Alabama State GAC The 2013 Alabama State GAC was held in Montgomery in April. More than 40 attendees representing credit unions from across the state attended. The conference offered various sessions on current political happenings in Alabama and Washington D.C., and included updates from Sam Whitfield, VP of legislative affairs, CUNA, and Jared Ross, VP of governmental affairs, LSCU. Joe Perkins the founder/CEO of Matrix LLC., a political development firm in Montgomery, also spoke to attendees. In addition to the sessions and speakers, the GAC hosted two events designed to build relationships between credit union attendees and state lawmakers. The first event was a legislative reception where more than 40 House and Senate members stopped by to visit and discuss credit union issues with attendees. The second event was a regulator roundtable with representatives from the NCUA and ACUA, followed by visits to legislators’ offices at the Statehouse. Attendees had the opportunity to meet with House Speaker Mike Hubbard and Senate President Pro Tem Del Marsh while at the Statehouse. Attendees at both State GAC’s found the conferences exceedingly valuable and were instrumental in driving forward the credit union’s legislative priorities this session. ■

2012 PAC Awards Successful advocacy requires a collective and individual credit union effort. The LSCU Federal Political Action Committee (LSCU FedPAC), Alabama Credit Union Legislative Action Council (ACULAC), and the Florida Credit Union Political Action Committee (CUPAC) were created to effectively communicate the credit union message. One of the top priorities of the League is promoting good government, favorable legislation, and a regulatory climate that ensures an equitable view of our industry and we would not be able to achieve this without the help of our members. Thank you for your contribution! Below are the credit unions recognized for meeting and exceeding their 2012 PAC fundraising goals.

President’s Award Alabama ACULAC – Five Star CU FedPAC – Family Security CU

Honor Roll Credit Unions Florida CUPAC - Suncoast Schools FCU FedPAC - Suncoast Schools FCU

Chairman’s Award Under $50 Million: Alabama ACULAC - Riverdale CU FedPAC - Blue Flame CU

Florida CUPAC - Jacksonville Firemen’s CU FedPAC - Tallahassee-Leon FCU

$50 to $100 Million: Alabama ACULAC - N Alabama Educators CU FedPAC - Valley CU

Florida CUPAC - Community South CU FedPAC - Florida west Coast CU

$100 to $500 Million: Alabama ACULAC - Five Star CU FedPAC - Five Star CU

Florida CUPAC - First Commerce CU FedPAC - First Commerce CU

Over $500 Million: Alabama ACULAC - Alabama Telco CU FedPAC - Alabama Telco CU

Florida CUPAC - Achieva CU FedPAC - Community First CU

Alabama Alabama CU Alabama Teachers CU Family Security CU Five Star CU Listerhill CU Redstone FCU Riverdale CU

Florida Achieva CU Campus USA CU Community South CU Envision CU First Commerce CU floridacentral CU Florida West Coast CU FSU CU Gold Coast FCU GTE Financial FCU IBM Southeast Employees FCU Members First CU of Florida Miami Postal Service CU Railroad & Industrial FCU State Employees CU Suncoast Schools FCU Tropical Financial CU University CU

2012 Lawmaker of the Year Alabama Senator Bill Holtzclaw Florida Representative Jason Brodeur

Chapter Leadership Award Alabama Tuscaloosa Chapter

Florida Tallahassee Chapter

SIGNAL: Vol. 4, Issue 2

www.lscu.coop

LSCU Legislator Profile

Representative Oliver Robinson How did you become interested in public service and politics in particular; and what led you to run for the Alabama House of Representatives? My interest in politics goes back to my undergraduate years at the University of Alabama at Birmingham. I had a professor, Odessa Wolfolk, who really encouraged me to look at public office. I was fortunate enough to be elected to represent the 58th District in 1998.

Rep. Robinson was elected as a Democrat to the Alabama State House of Representative, District 58, in 1998. He currently serves as a member of the Financial Services, Jefferson County Legislation, Rules Committees as well as the Regulations (Financial Services) and Resolutions Subcommittees. The Oliver Robinson Foundation, under his direction, works to empower Alabamaâ&#x20AC;&#x2122;s families through community education and to recognize achievements in minority communities.

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 4, Issue 2

What are the most important issues you see facing Alabama today? This yearâ&#x20AC;&#x2122;s legislature spent much of the session talking about how to adequately fund education in the state. This is an important issue because we want to continue to provide educational opportunities to all residents of the state. The General Fund Budget is always a hot topic during session and one of the most important things we discuss. When you think about it, both of these issues touch every person in the state. Now that the 2013 Legislative Session has wrapped up, what pieces of legislation that passed the Alabama House are you most proud of? What pieces disappointed you the most? The worst piece of legislation was the School Accountability Act. I continue to have serious reservations regarding the financial impact this legislation will have on the Education Trust Fund. This bill provided tax credits for individuals and businesses, and these credits will be paid for through the Trust Fund. The best legislation passed this session was the Medicaid Delivery Reorganization. This legislation creates several regional Medicaid regional care facilities throughout the state. It is also a great example to the state working with all interested parties and coming together to do something positive for the people of Alabama.

Credit unions are seeing an alarming increase in regulatory burden throughout Alabama. In your opinion, what can the Alabama Legislature do to help decrease over-regulation seen in the financial services industry? That shouldn’t be occurring with the new leadership in the Legislature. Credit unions should use their influence with the leadership on regulatory issues. Regulatory issues led to the financial crisis of the past and credit unions need to be allowed to operate in an environment free from unnecessary regulatory burden. Credit unions are not part of the problem so the solution should not be over-regulating an industry that is doing the right thing.

How important is grassroots advocacy in the legislative process? If you could give one piece of advice to credit union advocates, what would it be? The credit unions have millions of members who should use their influence with each member of the legislature. As a representative, if an issue comes up, I hope that those people that could be potentially impacted by it will let me know. If I don’t hear from them, it tells me that the issue may not be that bad. If I meet people in the district or in my office in Montgomery, it shows me that they are passionate about issues. Engaging your lawmaker is a fundamental right that more people need to take advantage of. ■

What role do you see for credit unions in serving the people of Alabama and how do you see them as part of the continuing economic recovery? As Alabama continues to recover from high unemployment and layoffs that occurred statewide, credit unions must continue to be financial institutions that take care of all of Alabama’s citizens. Whether that is making personal loans, providing mortgages, or loaning to the Alabama’s small businesses, credit unions are doing the right thing and need to continue going forward.

Rep. Robinson (center) speaks with America’s First CU’s Alan Stabler (l) and Alabama Telco CU’s Linda Cencula,.

SIGNAL: Vol. 4, Issue 2

www.lscu.coop

LSCU Legislator Profile

Congressman Patrick E. Murphy How and why did you become interested in public service and politics in particular; and what led you to run for Congress? After graduating from college, I went to work at Deloitte & Touche as a CPA and then I started my own small environmental company. In these roles, I saw things that the government could be doing better to promote economic growth. I also grew very frustrated with the â&#x20AC;&#x153;my way or the highwayâ&#x20AC;? approach of the Tea Party that led to a do-nothing Congress. I decided that instead of complaining about these things, I was going to do something about it and run for Congress and bring my CPA, and small business experience, and bipartisan, business approach to Washington.

Congressman Patrick E. Murphy represents Floridaâ&#x20AC;&#x2122;s 18th Congressional district, which includes Martin, St. Lucie, and northern Palm Beach counties. He was sworn into Congress at the age of 29, becoming the youngest member of the 113th Congress. Congressman Murphy currently serves on the House Committee on Financial Services, where he sits on the Subcommittee on Financial Institutions and Consumer Credit as well as the Subcommittee on Domestic and International Monetary Policy. Additionally, Congressman Murphy sits on the House Committee on Small Business, where he serves as the ranking member on the Agriculture, Energy, and Trade Subcommittee. Congressman Murphy is also a member of the New Democrat Coalition, a group of moderate, pro-business Democrats.

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 4, Issue 2

What are the most important issues you see facing Congress today? First and foremost we need to get our fiscal house in order by reducing spending, reforming our tax code, and fostering economic growth. But beyond the fiscal issues, above all, we need to find a way for Congress to work together to come up with balanced, bipartisan solutions that address the challenges facing our nation, which I am committed to doing. What role do you see for credit unions in serving the people of Florida and how do you see them as part of the continued economic recovery? I believe that credit unions will be vital to the continued economic recovery, especially in Florida, where small businesses and entrepreneurs play such a leading role. Small business owners need access to credit in order to expand their companies and hire additional workers, and credit unions have long been an important source of credit for small businesses. Credit unions also allow their members to finance consumer purchases with, for example, affordable car and home loans. Without this necessary access to credit, the economic recovery will surely stagnate.

If you could give one piece of advice to grassroots advocates for credit unions, what would it be? Grassroots advocates for credit unions have been doing a fantastic job, and I would urge them to continue to engage with their elected representatives. Grassroots advocates are most effective when they enable credit union supporters to communicate directly with their members of Congress, either through meetings with staff, issue education, or letters detailing their positions.

Is there anything else you would like credit union advocates to know about you? I place a very high value on the feedback I receive from constituents. When legislative issues that would affect credit unions arise at the federal level, I would strongly urge advocates to contact my office to express their concerns. â&#x2013;

Congressman Murphy at his Palm Beach County Swearing-in Ceremony.

SIGNAL: Vol. 4, Issue 2

www.lscu.coop

ADVOCACY

Compliance Roundtable Discusses CFPB’s Future Goals & Qualified Mortgage Rules Bill Berg, MBA, CCUE, CUCE, BSACS, vice president, compliance training & information, Governmental Affairs, LSCU In May, the LSCU & Affiliates and the Consumer Financial Protection Bureau (CFPB) collaborated for a roundtable discussion in Miami, Fla. Acting Deputy Director Steve Antonakes initiated the discussion, giving an overview of the CFPB’s future goals. Pete Carroll, assistant director for Mortgage Markets, continued the roundtable conversation giving a presentation on the Ability to Repay/Qualified Mortgages Rule, which proved to be a hot topic at the event, and the primary focus of the credit union professionals in attendance. One of the first concerns raised at the roundtable was the decrease of the current Fannie Mae/Freddy Mac debt to income (DTI) percentages. Currently, a homebuyer can possess a 45 percent DTI. Additionally, if that homebuyer has excellent credit or is able to make a larger down payment their DTI can go as high as 50 percent. However, these current percentages are expected to be reduced to 43 percent for qualified mortgages beginning January 10, 2013. A percentage that is significantly lower than the current Fannie and Freddie guidelines, making qualification more difficult for first time homebuyers. “We like to operate in a safe zone where we have a reasonable expectation that borrowers will not indiscriminately use this new suitability test as a means to contest a foreclosure,” said Richard Helber, CEO of Tropical Financial Credit Union. “This rule could materially reduce the availability of mortgage related credit.”

The Ability-to-Repay and Qualified Mortgage Rule Guide along with a link to CFPB’s recent presentation on the Ability to Repay/Qualified Mortgages Rule, is available at the LSCU website in the Compliance & Operational Support section of Governmental Affairs. 20

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 4, Issue 2

(l to r) Rich Helber, Tropical Financial FCU; Aaron Small, JetStream FCU; Pam Rower, South Atlantic FCU; Pat Mason, Sun CU; and Dan Walker, Broward Healthcare FCU listen intently to Pete Carroll talk about the Ability to Repay/Qualified Mortgages Rule.

To help address this concern the CFPB did subsequently revise the rule to carve out smaller institutions (under $2 billion in assets or those who originate less than 500 mortgage loans a year), providing them the protection of the qualified mortgage designation for loans over 43 percent DTI if they hold the mortgage on their own books. Whether you are a large or small financial institution, it is expected that if potential homebuyers do not meet the secondary market guidelines, their rates are going to be higher and the cost of mortgages will escalate. Likewise, the new standards will reduce the ability of credit unions to use compensating factors since the CFPB is using a one size fits all definition. Credit unions that exceed this new, lower threshold will see their mortgage balances increase which will be a burden for regulators. The National Credit Union Administration and state regulators all share the same concerns about interest rate risk and putting long term assets on balance sheets funded by short term money. Though the roundtable discussion did not result in solution to this issue, it was an opportunity for credit union professionals to share their concerns with the CFPB. ■

Q&A

with Drew Breakspear

Drew Breakspear was appointed as the commissioner of the Florida Office of Financial Regulation in October, 2012. He brings more than 40 years of experience to the Office of Financial Regulation, having worked in the international banking industry and management consulting. He most recently served as executive vice president and general auditor at State Street Corporation in Boston, joining the company in 1995. Previously, he worked as senior vice president and director of audit and corporate compliance officer at First Nationwide Bank FSB in San Francisco, vice president and head of consumer services audit at Citicorp/Citibank N.A. in New York, and as a management consultant at Touche Ross & Company in New York. Breakspear received an MBA from the Harvard Business School and a bachelor’s degree in Economics from the University of Witwatersrand. View the complete interview with Drew Breakspear in the LSCU Video Room at www.lscu.coop.

What drew you to take the commissioner job at the Office of Financial Regulation?

What can credit unions do to foster a better relationship with OFR?

I always said that if I went back to work after I retired, it would have to be new, different, and intriguing. I think the Office of Financial Regulation job offered me all of those opportunities. I wanted to make a difference in the state and I felt like this offered me the opportunity to do something different and really add value.

Better, I’m not sure it can get any better. I think Florida credit unions are growing, creating jobs, and providing financial services that are needed by the Floridians that they serve. We are aggressively trying to reach out to all of the industries we regulate to foster and build relationships. I think the relationship between OFR and Florida’s credit unions are a form of partnership. We have a common goal in providing Florida’s consumers and businesses with safe and sound institutions and those that will develop products and services for the needs of those communities. My advice to credit unions throughout the state is to continue building relationships with the OFR examiners, listening to them, and sharing your thoughts, your concerns, and your ideas with them so we can continue to have an open dialogue. I have found over the years that if one has an open and honest relationship with their regulator that it helps immensely. For years I sat on the other end of the table from regulators and I found by building that trust it was much easier to have a partnership/trust relationship.

Where do you see credit unions fitting into the financial picture in the state? I’ve always viewed credit unions as a critical and an important component of the financial services industry; not only in Florida but nationwide. One of the benefits is their focus on the small communities they serve and their help to small businesses. Credit unions do offer financial opportunities to similar segments of people by tailoring financial services they offer to the population’s needs. I believe credit unions have done an extraordinarily good job of actually serving those communities of business and community populations.

How can credit unions better serve Floridians? Through consumer outreach, we at OFR highly support educating the citizens of Florida so they are better prepared to manage their financial needs. We’re confident that credit unions will similarly seize the opportunity to educate their members and communities to make them more financially literate and more financially adept. ■

SIGNAL: Vol. 4, Issue 2

www.lscu.coop

INITIATIVES

Cooperative Initiatives Learning by Example through WOCCU Leadership Program Laura Vann, vice president, Cooperative Initiatives Eight credit unions and the League of Southeastern Credit Unions (LSCU) participated in an International Credit Union Leadership Program, a partnership between the World Council of Credit Unions (WOCCU) and the U.S. State Department. The International Credit Union Leadership Program is funded by a grant from the U.S. Department of State, Bureau of Educational, and Cultural Affairs, Office of Citizen Exchanges, and is part of the larger U.S. Department of State Professional Fellows Program. The International Credit Union Leadership Program brought emerging leaders from Costa Rican credit unions to Alabama and Florida for intensive short-term credit union internships designed to broaden their professional expertise. The program is designed to facilitate idea exchanges, promote foreign language skill development, enhance cultural diversity, and improve problem-solving skills as they relate to credit union development and management on a global basis. In addition, the program focuses on helping credit unions find new ways to attract younger members. The interns completed an application process that included interviews conducted by WOCCU. The application included an overview of their current responsibilities, specific areas of interest, and what they hoped to obtain from the internship. WOCCU then attempted to match areas of interest with the host credit unions. After completing one-month internships with Alabama and Florida credit unions, the Costa Ricans joined 220 leaders from 44 countries and territories in Washington, D.C. for the Professional Fellows Conference.

In addition to coordinating the program, the LSCU hosted an intern from FEDEAC, the Costa Rican league. The LSCU welcomed Milagro Vargas, assistant business administrator for FEDEAC to Alabama and Florida. Milagro spent time in both the Birmingham and the Tallahassee offices, learning about LSCU and LEVERAGE operations. She visited both state capitals and saw the legislative process in action. Milagro also attended the Chapter Leaders’ Retreat in Pensacola. Milagro spent the final week of her internship at South Florida Educational Federal Credit Union in Miami, learning about how they serve their members and the development of strategies to attract new members. “I learned about the financial services they offer and how they focus on giving members an immediate answer to their questions,” she said.

Randall, the Costa Rican intern that’s interning with Alabama Credit Union, got to experience a little SEC football at the alumni football game for the University of Alabama in Tuscaloosa.

Alabama Credit Union hosted Randall Chavarria, financial director at Coopebanpo. Steve Swofford, CEO of Alabama Credit Union said, “You can tell Randall quickly grew to love our staff, our credit union, our state.” In a message to the Alabama Credit Union staff, Randall stated that he was leaving a part of his heart with them. “These exchange opportunities are very valuable, in that they promote international understanding,” Swofford said. “You also never know what doors it opens for the organization or our staff.” Milagro met with the LSCU Education department in Birmingham this morning (from l-r: Milagro Vargas, Becki Payne, Brandy Norvell and Teresa Gray) to share FEDEAC’s educational offerings to its members in Costa Rica.

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 4, Issue 2

Pablo and Douglas (second and third from the left) meeting with senior managers at CFE Federal Credit Union.

Laida Garcia, CEO of floridacentral Credit Union, praised their intern, Erick Vargas, branch manager at Coopenae. “Erick is extremely bright, hard-working, and eager to learn and explore ideas that will benefit his members and his credit union. We also learned much from him about Coopenae and their successful growth strategies.” Garcia also mentioned a presentation that Erick made to their management team, highlighting the history, philosophy, structure, and regulatory differences between Coopenae and floridacentral. “Clearly, he paid close attention to the information delivered during the course of his brief time with us. Without a doubt, our management team and staff benefitted much from this mutual exchange and we hope that Erick found it of value as well,” Garcia added.

Cristina Zuniga, debit card official with Coopeorotina, spent her internship with Innovations Federal Credit Union. On her application, she indicated an interest in new products and services, leadership training, and technological innovation. At the conclusion of the internship, Zuniga said, “It was a great experience in the professional fellows program. Thank you for the opportunity.” The second phase of WOCCU’s International Credit Union Leadership Program continues in June. During this phase, 12 U.S. credit union professionals will intern at credit unions in Costa Rica, learning how Costa Rican credit unions serve underserved populations and support their communities through member education and other special projects. It is a two-week immersion program and the participants will be lodged with a host family. Like the first phase of the program, expenses such as meals, communications, local transportation, and traveler’s insurance are covered by the grant. Transportation to and from Costa Rica is not included in the grant. Jordan Burroughs, governmental affairs specialist, LSCU; Benson Bolling, vice president of lending, Alabama Credit Union; Susan Wise, financial service representative, Innovations FCU; and Emily Thomasee, financial service representative II, Innovations FCU are among the participants selected for the Costa Rican program. Look for details on their experiences in a future issue of Signal magazine. For more information on how you and/or your credit union can get involved with the international partnership with Costa Rica, contact Laura Vann at 866.231.0545, x2181 or laura.vann@lscu.coop. ■

Intern Name

Title

Costa Rican CU

Host CU

Manfred Aguero

Head of Accounting Department Corporate Supplier

Coopenae

Suncoast Schools FCU

Coopealianza

CFE FCU & Martin FCU

Douglas Arias Pablo Barrantes

Coopealianza

CFE FCU & Martin FCU

Randall Chavarria

Customer Service, Human Resources Coordinator Financial Director

Coopebanpo

Alabama CU

Ana Mora

Marketing Manager

Coopeande #1

Redstone FCU

Eric Vargas

Branch Manager

Coopenae

floridacentral CU

Milagro Vargas

Assistant Business Administrator Debit Card Official

FEDEAC (Costa Rican League) Coopeorotina

LSCU & South Florida Educational FCU Innovations FCU

Cristina Zuniga

SIGNAL: Vol. 4, Issue 2

www.lscu.coop

INITIATIVES

CUDE Certification: An Investment Worth Making Adena Whitman, director, member relations, Cooperative Initiatives Passion. Innovation. Teamwork. Life-changing. You may have heard some of these words recently – specifically in relation to the Credit Union Development Educators (CUDE) certification being offered by the National Credit Union Foundation. LSCU President/ CEO Patrick La Pine and I graduated from the most recent CUDE class (Spring 2013), and I can honestly say that it has changed my perspective on the credit union world. In addition to refreshing my awareness of the history and philosophy of the movement, the weeklong seminar provided insight into the ties our industry has within the wider world of cooperatives. Essentially, DE training provides hands-on critical lessons in cooperative principles and credit union philosophy while incorporating the challenges credit unions face today. During the week-long program, we were involved in group exercises, field trips, issue discussions with speakers from around the credit union system, and researched team projects proposing solutions for credit unions to help alleviate or eliminate challenging situations.

CUDE Class of 2013

“During DE training, we work to ensure the lessons in credit union philosophy are applicable and relevant to current events,” said Lois Kitsch, DE facilitator and NCUF National Program Director. “For example, for the final case studies, participants worked through and presented solutions to critical issues that included credit union solutions to payday lending, a small credit union merger dilemma, the low-income designation, building an Islamic banking center, developing a credit union awareness campaign, and league consolidation.”

But there is also an epiphany that happens over the intensive sessions. In addition to bonding with credit union professionals from all over the world, I became better aware of how LSCU and how our credit unions impact the whole movement. Credit union professionals who have attended the program jokingly say they “drank the credit union Kool-Aid” because this session makes those who were passionate about credit unions even more so. “The CUDE program is an exciting and unique journey into our movement’s heritage, as well as the global cooperative landscape,” said David Tuyo, vice president of solutions, Lending Solutions Consulting, Inc., another spring 2013 graduate. “The program will challenge you in many ways and it meets the single best definition of education I have ever come across: Education is the process of taking a mind and making it an open one. I highly recommend credit union professionals and strategic partners join the more than 1,000 CUDE’s in opening up to an extraordinary trip chartered by the National Credit Union Foundation.” DE training is open to everyone -- from new employees who need a credit union orientation to seasoned executives who just need to recharge and reinvigorate. • Graduates acquire skills in credit union outreach initiatives, problem solving, technical assistance, team building, and public presentations. • Graduates earn certification as CUDEs and join a networking group including more than 1,000 graduates across America and 30 other countries. • CUDEs realize that local issues are indeed global – and that credit unions grow stronger by working cooperatively. • CUDEs return to their jobs with new understanding of how to promote cooperative principles and credit union values as distinct advantages in today’s competitive financial services marketplace. LSCU has committed to sending more staff through the CUDE program, and already has five graduates, with two more attending the fall 2013 session. I encourage you all to “drink the credit union Kool-Aid.” For more information on the CUDE program, visit the national Credit Union Foundation website at www.ncuf.coop. ■

When your member downloads AskAuto

you’re with them on the lot. AskAuto™ is the new research and lending app from CUNA Mutual Group, coming soon to your members’ mobile devices. AskAuto will get your customized lending message to members when they’re on the dealer’s lot and knows whether the dealer is your

Over $500 million in loans requested through loanliner.com via mobile devices. Source: CUNA Mutual Group internal reports, 2012

lending partner, or competitor. AskAuto will also simplify

to streamlining the application process. Find out how

Want help getting your share of auto loans? Just AskAuto at 800.356.2644 or visit

AskAuto can help your credit union build relationships

loanliner.com/askauto.

the member’s auto buying experience, from validating the selling price, to comparing vehicles they’ve scanned

with members and grow auto loans at the same time.

Common Purpose. Uncommon Commitment.

FOUNDATION

Hurricane Season Is Upon Us Recently at 27th Governor’s Hurricane Conference in Ft. Lauderdale, Dr. William Gray shared with the attendees that going back to 1850, there has never been a recorded seven year period without a major hurricane (category 3, 4, or 5) hitting the U.S. until 2006 to 2012. He added, “Mother Nature has a way of evening things out.” This could be the year that Mother Nature settles the score. Make sure your credit union’s information and disaster plan is up to date. With the beginning of hurricane season quickly approaching on June 1, the League has sent out an updated plan to assist credit unions in the event of a disaster. One essential component of the plan is the ability to provide emergency backup communications. It is important to ensure that your credit union’s backup communications plan meets its current needs in the event of a power outage. Another, equally important, component of any disaster plan is Emergency Contact Information (ECI). An ECI form was included in the League’s annual disaster letter. The information on this form, which is kept confidential, is crucial to the League’s disaster plan. Keeping this information current will allow the LSCU to have multiple ways to communicate with key staff at your credit union in the event that a disaster has occurred and primary communications are not working. If your credit union has not returned its ECI form, do so as soon as possible. If you have any questions regarding the LSCU disaster plan, the ECI form, or would like an electronic copy of the ECI form, email LSCU VP, Compliance Training & Information Bill Berg at bill.berg@lscu.coop. ■

A Voice of Experience: Hope Dahlke, Business Development Officer, Secure First Credit Union Secure First Credit Union, located in Birmingham, Alabama, experienced and recovered from major tornado damage in January 2012. Dangerous weather and its resulting devastation are all too common. As I write this article, there is fresh news of a small community in Oklahoma losing more than 50 of its citizens to a mile-wide tornado. Natural disasters come in all shapes and sizes and they are inevitable. What we do to prepare for them makes the difference in how quickly we recover. Here are a few common sense suggestions: 1. Have a disaster recovery plan. Dust it off and review its contents often. 2. Keep your disaster recovery team current. Ensure that each member is aware of their respective responsibilities. 3. Have a list of key contact information. Keep the list current and readily available. 4. Communicate a positive message. Your members will benefit from a knowledgeable staff that is able to articulate that the credit union has a plan and is working to maintain stability. 5. Review your plan for revisions at least annually. It’s hard to imagine, but those who have experienced disaster and recovery will tell you they found a silver lining on the other side. You will witness your employees pulling together as never before. Your community will be there for you. People you don’t know will show up to help. Having a plan in place for dealing with disaster will help ensure that your institution not only survives, but thrives through the storm. Questions for Hope? She can be reached at 205.313.9411. ■

Some of Secure First’s damage from tornado.

Another view of the damage. SIGNAL: Vol. 4, Issue 2

www.lscu.coop

EDUCATION

League Education LSCU & Affiliates Is Now a Nationally Registered CPE Sponsor Developed in 1990, the National Registry of CPE Sponsors is a program offered by the National Association of State Boards of Accountancy (NASBA) to recognize CPE program sponsors who provide continuing professional education (CPE) programs in accordance with nationally recognized standards. Many state boards of accountancy require CPAs to earn required CPE credits through companies approved on the National Registry of CPE Sponsors. State boards of accountancy and their licensees can refer to this listing, at www.learningmarket.org, to identify and select approved learning providers.

NASBA reviews applications on an ongoing basis and approves organizations to offer continuing professional education worth CPE credits for CPAs and other licensed professionals. All LSCU face-to-face educational offerings are now eligible for continuing professional education credits. Visit the education calendar online at www.lscu.coop or call the education department at 866.231.0545 to find out more. ■

2013 LSCU Supervisory Committee Conference Providing Your Supervisory Committee the Proper Tools to do the Job Right!

League of Southeastern Credit Unions & Affiliates

LSCU Supervisory Committee Conference August 4-7, 2013 Hilton Sandestin Beach Golf Resort & Spa Destin, FL

Give your supervisory committee the proper tools to do the job right! Whether a new Supervisory Committee or board member; or a “seasoned volunteer”; attendance at the 2013 LSCU Supervisory Committee Conference will enrich contributions to your credit union. Although designed with supervisory committee members and board

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 4, Issue 2

members in mind, this conference is also a perfect fit for credit union managers, compliance officers, and internal auditors. Attendees can earn up to 16 hours of CPE credit in Behavioral Ethics and Specialized Knowledge and Applications.

Upcoming Learning Opportunities Download the complete 2013 LSCU Events Calendar at www.lscu.coop. July 9 10 11 14-17

2013 Handling ACH Origination Exception Issues Consumer Debt Resolution Series: Collecting Decedents’ Accounts Internet Fraud Claims: Who is Liable? SRCUS Southeast Regional Directors Conference Charleston, SC 16 Simple Guide to Asset Liability Management that Everyone Can Understand 17 LSCU BSA Training Workshop Tuscaloosa, AL 17 Frontline Excellence Series: Avoiding Loss at the Teller Line 18 Interagency Appraisal & Evaluation Guidelines: Appraiser Selection, Review, Policies, & Procedures 23 Mandatory Compliance Series: Compliance Rules All Staff Must Know: Red Flags for ID Theft, Bribery, & Privacy 24 LSCU BSA Training Workshop Ft. Lauderdale, FL 24 Business Writing Boot Camp, Including Submission & Critique of Your Own Writing Sample 30 Director Series: Understanding & Utilizing Call Reports for Credit Union Governance August 2013 4-7 LSCU Supervisory Committee Conference Destin, FL 6 Home Equity/Second Lien Risk Management 7 Assessing E-Banking Services & Delivery Channels: Strategic Deployment & Risk Assessment 8 Is Your Member Fully Insured by the NCUSIF? Best Practices & Common Mistakes 13 Electronic Compliance: Tools, Policies, & Best Practices for Email, Internet, Mobile, & Social Media 20 Underwriting Basics: Interviewing, Credit Reports, Debt Ratios, & Reg B 21-23 SCUMA Annual Meeting Hilton Sandestin Beach Golf Resort & Spa, Destin, FL

Consumer Debt Resolution Series: Modifications, Workouts, & Rescue Options: Working with Troubled Members 27 Directors & Financial Literacy Session 1: Understand Your Credit Union’s Financial Condition with Key Ratios, Balances, & Estimates 28 Protecting the SBA Guarantee Start to Finish September 2013 4 Putting the “Credit” Back in Credit Unions: Making Loans Members Want 5 Garnishment Rules: Including Accounts Receiving Federal Benefit Payments 10 LSCU Regulatory Compliance Update Tallahassee, FL 10-11 LSCU Hike the Hill Washington, DC 11 Frontline Excellence Series: Detecting Counterfeit Items & Fraudulent ID 12 LSCU Regulatory Compliance Update Birmingham, AL 12 Handling Member Credit Report Disputes 17 Directors & Financial Literacy Session 2: Monitoring & Measuring the 9 Risks Your Credit Union Faces 18-19 LSCU ALM Essentials & Advanced Training Tampa, FL 18 Mandatory Compliance Series: Compliance Rules Deposit Operations Must Know 19 Skip Tracing Tools & Techniques 25 Conducting the 2013 ACH Audit

*Bolded listings denote workshops and conferences. Non-bolded listings denote webinars.

SIGNAL: Vol. 4, Issue 2

www.lscu.coop

COMMUNICATIONS

Communications September to See Launch of 2013 Image Campaign Mike Bridges, vice president, Communications, LSCU

The third installment of the LSCU Cooperative Image Campaign will debut across Alabama and Florida on September 3. The campaign will once again utilize the creative elements used in 2012; the TV ad, “Coffee,” remains fresh. New for 2013 will be a digital online element that has the potential to go viral. With more consumers getting their information online through smartphones, tablets, and computers, it is important to continue to establish a digital footprint for credit unions. The first two waves of the LSCU Cooperative Image Campaign have been successful. In about one year, research from the Southeastern Institute of Research (SIR) shows that consumer awareness of credit unions has risen 27 percent. In 2011, before the first wave of ads hit the air, consumer awareness of credit unions was at 23 percent across both states. Following the second wave of advertising in 2012, that awareness rose to 50 percent. These are phenomenal numbers for a campaign that has only run for two years. SIR has indicated that some industries only see any significant spike in advertising following 10 or 12 advertising cycles. For credit unions, it is important to understand that raising the image and awareness of credit unions is a process, especially when the campaign does not run the entire year. One of the most important parts of the implementation of an image campaign is patience. That is tough in today’s business environment. Every business is doing more with less, scrutinizing the budget, and looking for a return on every dollar used on marketing. A cooperative image campaign should not be measured by an immediate return on your investment. Credit unions in Alabama and Florida are seeing the incremental effects by positive gains in membership and assets.

What has made the LSCU Cooperative Image Campaign unique is that it integrates easily with affiliated credit unions’ advertising. The campaign fits well with the campaigns that credit unions are already implementing with their brand. When a consumer sees an advertisement from the LSCU Cooperative Image Campaign or the credit union’s marketing, it’s seamless. This is the best way to keep the credit union message resonating with potential members. Fundraising for the 2013 campaign will wrap up July 1. For more information on the campaign and information on how to contribute, visit www.lscu.coop/Communication-Press-Room/ Cooperative-Image-Campaign. ■

Cooperative Image Campaign Expands to Idaho & Texas The LSCU & Affiliates have franchised the Cooperative Image Campaign to Idaho and Texas. East Idaho Credit Union is using the campaign as the main piece of its advertising this year. The Sabine Chapter of Texas Credit Unions just debuted the “Better Name for Banking” Cooperative Image Campaign on June 1. The LSCU has now seen its campaign franchised to four states – Connecticut and Mississippi state leagues ran the campaign last year. The money raised from the franchising the campaign will go back into media buys for 2013.

SIGNAL: Vol. 4, Issue 2

www.lscu.coop

NEWS

League News Credit Union Philosophy in Action Workshops The League of Southeastern Credit Unions offers two Credit Union Philosophy in Action Workshops each year, one in Alabama and one in Florida. The workshop is modeled after the National Credit Union Foundation’s (NCUF) Credit Union Development Educators (CUDE) program and provides participants with a historical perspective on credit unions and cooperatives while focusing on how to implement the cooperative principles of credit unions in day-to-day work activities. Through a series of interactive exercises and discussion, participants discover the history of cooperatives and the presence of cooperatives in today’s marketplace. The participants build a stronger foundation on the history of credit unions through the “Not For Profit, But For Service” learning map. They learn about the nine operating principles governing credit unions: democratic control, open and voluntary membership, non-discrimination, service to members, distribution to members, building financial stability, cooperation among cooperatives, social responsibility, and ongoing education. The workshop is designed for people new to credit unions, young professionals on their way up the corporate ladder, and anyone who wants to be re-energized about what we do on a dayto-day basis. Participant Sarah McMillan, HR generalist at Alabama Telco CU, said “Love the ‘refreshed’ understanding of why credit unions are different (and awesome)…reignited a great feeling of the difference we really do make in our community.” April Ales, member relations specialist at LSCU, commented that seeing the history of credit unions on the learning map was thought-provoking. She also said that “the workshop was very interesting, engaging, and fun.” Shelby Samuell, training manager at Alabama Telco CU said, “I thought I knew everything about credit unions—until today.” It is our hope that the Credit Union Philosophy in Action Workshop will inspire participants to attend the NCUF’s CUDE program. We also hope that participants will incorporate the lessons learned in their own employee orientation or training programs. Make plans now to attend or send your staff members to the next Credit Union Philosophy in Action Workshop. It is scheduled for October 23-24 in the Orlando area. For more information, contact Laura Vann at 866.231.0545, x2181 or laura.vann@lscu.coop. ■

The workshop explores the cooperative movement and the role of credit unions and coordinating cooperative partnerships. Cabot Cheese has made a concerted effort to reach out to other cooperatives in order to foster growth and strength in the cooperative movements.

The hands-on class uses various exercises like this one to help CU staff identify and communicate the qualities which make credit unions different from other financial institutions.

One of the program’s exercises is to go through the history of the credit union and explore the opportunities and obstacles pictured on the map, which is being held up here by program facilitator, Jen Kuhn. 32

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 4, Issue 2

INDUSTRY

Don’t Tax My Credit Union Credit Unions Asked to Mobilize Membership It is shaping up to be a busy summer and fall for credit unions. Congress is looking at comprehensive tax reform and every tax exemption is on the table. This does not mean that the credit union tax exemption is in jeopardy, it just means that credit unions need to redouble their efforts on educating lawmakers about the benefits of the tax exemption. CUNA has launched a new initiative, “Don’t Tax My Credit Union,” as well as a Credit Union Tax Toolkit. The initiative includes a website and resources for credit unions to not only educate lawmakers but to also mobilize their membership. Credit unions have a great reputation in Washington, D.C. Most lawmakers look at the credit unions’ nearly 100 million members and realize that an orchestrated advocacy effort can be very powerful. No other sector of the financial industry can count on its membership to stand with them in an advocacy fight. “Don’t Tax My Credit” is asking credit unions to send messages out to their members and ask them to sign petitions, make calls, or send emails to local lawmakers informing them of how much their credit union means to them. The House Ways and Means Committee Chairman Rep. Dave Camp (R-MI) says that the committee is taking a blank sheet of paper to tax reform. This means that every tax exempt entity is being analyzed. When you look at it this way, it means that in order to get the credit union tax exemption back on the paper, proactive education about the benefits of the tax exemption needs to take place over the next two to three months. LSCU & Affiliates President/CEO Patrick La Pine says that credit unions need to set aside time to form a plan of action. “We continue to hear that the credit union tax exemption is safe. However, in Washington you never know until a bill is signed. That’s why we’re asking credit unions to have a plan in place when it comes time to put the full-court press on for the tax exemption. “The ‘Don’t Tax My Credit Union’ website is a good starting point on what credit unions can do to mobilize their staff, directors, and members. The LSCU will also be in constant contact with credit unions during this process,” said La Pine. The general feeling is that the House will take up tax exemption legislation in June or July. Judging by how quickly

Congress moves, this could be a long process. The League’s governmental affairs team met with Rep. Vern Buchanan’s (R-FL) staff in May. Rep. Buchanan is on the Ways and Means Committee. His staff said that the committee is trying to simplify the tax code and not complicate things. If the credit union tax exemption were to be eliminated, it would change the industry completely and Rep. Buchanan’s staff said that’s not the point of tax reform. “Our governmental affairs staff will be in contact with our delegation on a regular basis until credit unions get back on that sheet of paper,” said La Pine. The League and CUNA are looking for credit unions to put together a communications plan for their staff and members. They are asked to contact their lawmakers, especially those in key positions on the House Ways and Means Committee (Rep. Buchanan) or the House Financial Services Committee, and let them know that taxing credit unions is taxing nearly 100 million members. Lawmakers need to understand that credit unions help drive competition in the marketplace and keep rates and fees lower. In the long term, a major push to the credit union membership is needed. If lawmakers even hear from a tenth of the credit union movement, 10 million voices hold plenty of weight. Credit unions should be visiting the “Don’t Tax My Credit Union” website on a regular basis and the Credit Union Tax Toolkit, located on CUNA’s website, to find more resources for a tax exemption plan. This is the first time the League and CUNA have asked credit unions to mobilize their members. Preserving the tax exemption is a good enough reason to spread out the advocacy message. When lawmakers hear from credit unions and members, it sends a strong message that the credit union tax exemption is more than just money; it’s a way of life for nearly 100 million members. ■

SIGNAL: Vol. 4, Issue 2

www.lscu.coop

BE MORE

EFFICIENT AND REALIZE GREATER ROI YYou ou have have the the power power to to aattract ttract and and rretain etain m motivated, otivated, qqualified ualified employees. employees. YYou ou hhave ave aaccess ccess to to best-in-industry best-in-industry strategies strategies to to ggrow row m embership. membership. YYou ou have have a plan plaan to to ensure ensure continuity continuity ooff ccommunications ommunications in tthe he event event of of aann ooutage. utage. in YYou ou have have all all the the resources resources you you need, need, right right at at your your fingertips. fingertips. YYou ou have have the the right right ppartner. artner. YYou ou hhave ave L LEVERAGE. EVERAGE.

myleverage.com myleverage.com

LEVERAGE Launches Innovation Group Kevin Lytle, vice president, Innovation & Business Development, LEVERAGE Looking to the future and to better serve their clients LEVERAGE recently launched a new innovation group. The LEVERAGE Innovation Group was created to assist with the testing of new products and services being considered by LEVERAGE. Essentially members of the group will give new products and services, as well as enhanced features on existing products and services a trial run to evaluate its features, how it works, and if it makes sense to offer to clients on a broader scale. Additionally, if a product or service does not apply to group members, they will make a recommendation of a credit union that can better evaluate the product or service in question. At the group’s first meeting they discussed product and service ideas related to membership growth, lending, managing healthcare benefit costs, and equipment maintenance warranties. Wasting no time, the committee will jump in head-first taking on healthcare. LEVERAGE management has been closely monitoring the Affordable Healthcare Act, also known as “Obamacare”, and its possible impact on credit unions, members, and select employee groups. It will be relying on the Innovation Group to aid in recommendations on proposed products and services that will help reduce healthcare cost for credit unions.

The Innovation Group consists of three board members and two LEVERAGE management staff: Chairman Bob Steensma, president/ CEO, Five Star Credit Union, Dothan, AL; Shane Nobbley president/ CEO, Family Security Credit Union, Decatur, AL; Pat Mason, president/CEO, Sun Credit Union, Hollywood, FL, Marvin Garland, EVP/COO, LEVERAGE; and Kevin Lytle, VP, innovation and business development, LEVERAGE. The committee chairman, Bob Steensma, will be at the LSCU Annual Convention and Exposition in Orlando, FL, to report on the Innovation Group’s first meeting and update the LEVERAGE board of directors on the committee’s next steps of action. ■

Bob Steensma

Shane Nobbley

SIGNAL: Vol. 4, Issue 2

Pat Mason

www.lscu.coop

Product Support How to Maximize the Sprint Marketing Incentive for Credit Unions Tori Shamy, product manager, LEVERAGE In order to maintain the integrity of the Sprint Credit Union Discount Program, members must periodically provide documentation to verify credit union membership or eligibility for the program discount. New customers are required to verify credit union membership within 30 days of activation. Current Sprint customers are required to provide proof of discount eligibility when upgrading their device if it has been more than 20 months since their last validation. The current verification numbers are slowly building (currently at 36 percent, up from 15 percent). We need your help to inform your members of the importance of verification and share with them how easy it is to verify their membership. If they do not verify, they will lose their discount and will fall off the program. This will drastically reduce the marketing incentive pool available for credit unions that are participating in the Sprint program.

How your credit union can help: • Post information regarding Sprint verification to your credit union website (all available on the www.lovemycreditunion.org Partner Center) º Button to the Invest in America app

Verification Form º Tutorial º Benefits • Include the verification newsletter article in multiple newsletters • Add the QRC to the Invest in America app to: statements, newsletters, etc. • Educate frontline staff of the verification process • Connect with local Sprint store representatives (keep their business cards at teller stations to refer members requesting additional information or assistance) • Make sure to have the most up-to-date Sprint literature with the QRC • Communication, communication, communication! With your help, we can maintain the integrity of the program and continue to generate additional non-interest income from the program. ■ º

CUNA Mutual Group Invites Credit Unions to Go Paperless Earth Week Initiative Could Also Raise Up to $30,000 for National Credit Union Foundation CUNA Mutual Group is encouraging its credit union customers to sign up for paperless policy delivery to help the environment and raise money for the National Credit Union Foundation. During May, CUNA Mutual Group will donate $5 to the NCUF for every credit union that signs up for paperless policy delivery. The insurer kicked off the month-long initiative with an email May 1, to all credit union customers. “As a strong ‘green’ advocate, CUNA Mutual Group launched this campaign to reduce waste, save money, and take another step toward environmental sustainability,” said Jennifer Norr, director, customer operations. “Plus it’s a great way to support the NCUF and their programs that do so much to support credit unions.” A CUNA Mutual Group policy package averages 264 pages. With 6,000 credit union policies in force, the total number of printed pages can exceed 1.5 million, which provides enormous potential for savings, Norr added. The company’s goal is to get 2,000 credit unions to go paperless, thereby raising $10,000 for the NCUF. “But we won’t stop there,” Norr said. “If more than 2,000 of our customers go paperless within the month, we’ll continue to add to the donation with the potential to give $30,000.” CUNA Mutual Group began making policies available online in 2012 in its Credit Union Protection and Collateral Protection lines of business. Lending policies will be added later this year. The 800 credit unions that have already gone paperless will not be left out either, as donations also will be made on their behalf to the NCUF (www.ncuf.coop). “Everyone wins by going paperless,” Norr said. To learn more, follow @CUNAMutualGroup on Twitter, circle +CUNA Mutual Group on Google+, or visit http://www.cunamutual.com/pressroom. ■ 36

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 4, Issue 2

The Shift Towards Self Service: What Does This Mean to Credit Unions? Self-service is the name of the game for today’s consumer. Many of today’s day-to-day tasks are done through a self-service channel, whether opting for the self check-out line at the grocery store, renting a movie through a Redbox kiosk, or checking into a flight at an airlines’ self check-in kiosk. The adoption of self-service tools in the financial services industry is no different, especially with the availability of video-enabled ATM machines and other ATM innovations, such as the CO-OP NextGen ATM, that streamline the process of handling a transaction. Many credit unions, along with other financial institutions, are grasping the shift towards self-service in the branch, which has multiple advantages. Members conducting simple transactions such as deposits or withdrawals can save time by using a CO-OP NextGen ATM to quickly handle their transaction, freeing up branch employees to assist members looking to make a more complex transaction or open an account. Video-enabled ATM machines are also a great addition to a credit union’s branch offering, especially for after-hours and weekend support. With 24/7 availability, members can count on their credit union to be available when a transaction needs to be made; no matter what time or day. The comfort of speaking to and seeing the representative conduct their transaction offers peace of mind to the member, deepening the relationship between the credit union and member. Through the relationship between LEVERAGE partner CO-OP Financial Services and Diebold, Inc., the availability of these innovative services to credit union members is seamless and inexpensive. The two entities recently joined forces on CO-OP NextGen ATM, the industry-first, self-service innovation that facilitates shared branching transactions at the ATM. This software solution, which is available today, maximizes and leverages the mainline ATM infrastructure,

which allows members of participating CO-OP Shared Branching credit unions to conduct nearly all branch transactions, including loan payments, at Diebold Opteva® ATMs. With CO-OP NextGen ATM, members can select a shared branching option to access all of their accounts with the credit union, not just those linked to the card as with standard ATM transactions. Credit unions that participate in CO-OP Shared Branching as acquirers and allow guest members to visit their branch to conduct transactions can utilize a CO-OP NextGen ATM to decrease lobby traffic by serving the guest members through this channel, while retaining the acquirer revenue. CO-OP NextGen ATM offers credit unions an extension of their branch network, without the expense of brick and mortar and increased staffing. The innovation continues with the emergence of Concierge Video Services, an initiative headed once again by CO-OP Financial Services and Diebold, with Diebold supporting member identification and video services, and CO-OP Financial Services providing network access and terminal capabilities. The solution, which enables the credit union to visually connect with members to answer questions, fulfill marketing opportunities, and process any call center-capable transactions from the ATM, is currently being piloted at a credit union in Montana and one in Utah. CO-OP is hoping to bring this innovation to a broader market by mid-2013. As the adoption of the self-service channel continues to evolve throughout the financial services industry and beyond, the partnership LEVERAGE and CO-OP makes it possible to easily and affordably offer these innovative services to members, especially for credit unions that already participate in CO-OP Shared Branching. For more information, contact a Business Development Consultant, consult@myleverage.com. ■

Eliminate Manual Compliance Processes & Reduce Labor Expenses LEVERAGE, in partnership with Continuity Control, offers ComplyTrac, the only complete compliance execution platform exclusively offered to credit unions, with a standardized regulatory compliance process housed in one easy-to-manage system. The platform was built specifically with the rate-of-change in mind, so credit unions can efficiently keep up with Washington, because solving one change at a time simply doesn’t work. Gone are the days of missing a new regulation or rule. Controlling compliance costs is no longer wishful thinking. And, with day-to-day compliance being managed by the platform, pertinent regulatory updates are distributed as they occur. ComplyTrac clients are able to save time, lower risk, and focus on serving members! Automated Compliance Execution Powered By:

To request a demonstration, email consult@myleverage.com.