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The Magazine of the League of Southeastern Credit Unions & Affiliates

Financial Literacy

For Adults

R O F G ENT N I SAVTIREM RT A STA GET RE D

H O MORTGME AGE SAv ings Helping Your Members Make Dollars and Sense of it All

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www.myleverage.com/ePurchasing

Yo u r A d v a n t a g e

LSCU

Message from the President When you receive this edition of Signal magazine, there will be about four weeks before the mid-term elections. This fall is shaping up to be another very important election year. I know you hear that all the time from us, but this year in particular we have even more state and federal races on the November ballot. All of the Alabama state Senate seats are up for election, while only the even-numbered state Senate districts are up in Florida. On the federal side, all Alabama and Florida congressional seats are up for election, while only one U.S. Senate seat is up in Alabama, and, since that seat is not contested, Sen. Jeff Sessions is basically already re-elected. To further break down the state elections, in the Alabama State House, there are 41 contested races and 17 in the Senate. In the Florida House, there are 72 contested races and 11 in the Senate. The rest of the races, of course, are uncontested. This is not unusual; however, those competitive races are very important and ones that we can make a difference in the outcome. Let’s get involved in those races and get to know the candidates-especially the ones that we expect to be great champions for credit unions. To help you get to know those candidates, the LSCU puts together a voter’s guide every election cycle. The 2014 guide will go out to credit unions in early October via email. This guide lists the candidates by districts and where they stand on credit union issues, providing some extra insight into a candidate. It is a great resource for credit unions to share with staff, directors, and members. We also have the ability to print copies of the guide if you would like to hand a copy out to your members. It is important that we get this information out to as many credit union staff and members as possible. One of the most watched races on the state level will be the governor’s race in Florida. Gov. Rick Scott is being opposed by former governor Charlie Crist. If you remember, Crist was a Republican governor, but he has switched parties and is now running as a Democrat. LSCU & Affiliates is using its Florida Credit Union Association brand as one of the title sponsors of the Oct. 15 debate between Scott and Crist at Broward College. This is a great opportunity to showcase credit unions since this debate will be seen across Florida, as well as nationally. Florida credit unions will be prominently displayed on-site and in all media coverage leading up to the debate, and our Image Campaign TV ad will run during the debate, reaching more than four million Floridians. Something to watch on election night will be if the Republicans can take control of the U.S. Senate. If that happens, the State of Alabama delegation will become one of the most powerful states in the Senate. Sens. Jeff Sessions and Richard Shelby will assume major leadership roles. Sen. Shelby would most likely become the chairman of the Banking Committee, while Sen. Sessions would become the chairman of the Budget Committee. These are two of the most prominent committees in Washington. There is an outside chance that Shelby could be appointed chairman of the powerful Senate Appropriations Committee, which means he would opt out of chairing the Banking Committee. Make a note of these important advocacy dates for next year: The CUNA GAC is March 8-11, the Florida State GAC is March 24-25, and the Alabama State GAC is April 7-8. These are excellent opportunities to meet with our lawmakers; many of which will be new to Montgomery and Tallahassee. Identify staff that have an interest in advocacy and get them started at one of the above opportunities. Remember, we have needbased scholarships for each GAC event. Active involvement in campaigns and elections is an important component of our grassroots advocacy program. Make sure you and your credit union are engaged this fall. The LSCU Governmental Affairs staff is prepared to answer questions and provide assistance.

To help you get to know those candidates, the LSCU puts together a voter’s guide every election cycle. The 2014 guide will go out to credit unions in early October via email.

Patrick La Pine, CCE, CUDE President & CEO League of Southeastern Credit Unions & Affiliates SIGNAL: Vol. 5, Issue 3

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Table of Contents R O F G T N N I E SAVTIREM RT A STA GET RE D

Editor Amy Jowers

Contributors Bill Berg Mike Bridges Jordan Burroughs Natalie Edwards Teresa Gray Keith Hopkins Ron Jennings Jeff Rendel Jared Ross Laura Vann

H O MORTGME AGE SAv ings

Representative Janet Cruz

Design & Production Perry Albrigo, Pomegranate Studio Letters to the editor may be submitted at submissions@lscu.coop. Congressman Robert Aderholt 1

Connect with us!

Trends 4 Financial Literacy: Helping Your Members Make Dollars and Sense of it All

@LeagueofSECUs

Planting Seeds the DE Way in Africa

The first African DE program was held this year. Read how relationships and learning during the program brought around new ways of thinking.

LeagueofSECUs

President’s Message

What is your credit union doing for its adult membership? Credit unions not only need to think about the adult members who fell through the cracks, but continuing to educate their young members as they become adult members.

LeagueofSoutheasternCreditUnions

WEBSITE www.lscu.coop

Advocacy 10 The Rhyme and Reason for How LSCU Picks Candidates to Support 12 Protect Your Capital at the Capitol 14 Costa Rica Credit Unions Come Away with Plan of Action for Lobbying after Visit to Tallahassee 16 ComplySight – The Wave of Future Compliance

A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 3

LSCU Legislator Profile 18 Representative Janet Cruz 20 Congressman Robert Aderholt Cooperative Initiatives 22 LSCU Young Professionals Group: Growing Chapter by Chapter, Young Professional by Young Professional

HIGHLIGHTS 4 | TRENDS The Development Education (DE) program goes to Africa. Find out how seeds were planted the DE way.

10 | ADVOCACY Find out how the LSCU chooses the candidates it supports for election.

Education 24 New Look for LSCU Education Workshops 25 Upcoming Learning Opportunities Communications 26 Twitter is More Than Just a “Tweet”

22 | COOPERATIVE INITIATIVES The LSCU Young Professionals Group has grown to more than 245 participants. Find out what YPG is and how you can be a part of it.

26 | COMMUNICATIONS Credit unions should utilize Twitter to its fullest. Find out how your credit union can benefit by its use.

League News 28 2014 SCUCE: A Review in Pictures

Industry 34 Keep Your Branch Relevant as Account Holder Service Expectations Change

LEVERAGE 38 LEVERAGE Gives Credit Unions Unique Opportunity to Provide Identity Theft Protection Services to Members through Member Security Center 40 Understanding Your Insurance Program Options

LSCU Directory

34 | INDUSTRY Credit unions are faced with the challenge of having brick and mortar facilities or smart kiosks in certain market areas, or both. How do you know if you have the right strategy in place?

2010, 2011, & 2012

SIGNAL: Vol. 5, Issue 3

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TREND

Financial Literacy: Helping Your Members Make Dollars and Sense of it All By Natalie Edwards, coordinator, Communications, LSCU

Every April, credit unions observe Financial Literacy Month with events and activities geared toward making young members more financially literate. During this time, and often throughout the year, credit unions pay young members special attention. They find creative and fun ways to instill the importance of saving and teach young members how to financially plan for their future. Most importantly, credit unions build a sense of empowerment in their young members and build relationships that result in strong bonds with their financial institutions. All this with the hope that these young members will change the grim picture of how poorly educated Americans are when it comes to managing money. But what is your credit union doing for its adult membership? Particularly adult members who were left neglected and unnurtured by their financial institutions when they were younger; adult members who have received little to no financial education; adult members who feel insecure about their finances; and adult members who, based on past experiences, would rather visit the dentist for a root canal than visit their financial institution? What about those members? Most of the research regarding financial literacy is geared toward teenagers, usually ages 15 through 18. However, a recent article from The Fiscal Times titled “Why Adults Need

Left to Right: Jeff Jones, eCO CIO, Tony Dodd, Andrew Dodd, Dana Dodd, Haylee Dodd, Josh Dodd, Melissa Reeves, eCO Marketing Manager

Financial Literacy, Too” focuses on — you guessed it — adults. The article explains that adults are not fairing any better than American teenagers when it comes to financial literacy. In fact, according to a 2013 survey from the FINRA Investor Education Foundation, when asked five multiple-choice questions about topics like interest calculations, mortgage payments, and investments, just 39 percent of the 25,509 adults answered at least four correctly. That is down from 42 percent in 2009.

Thus, the moral of the story is that credit unions not only need to think about the adult members who fell through the cracks, so to speak, but also need to think about continuing to educate their young members as they become adult members. 4

A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 3

Even a comprehensive early personal finance education in high school may not fully prepare someone years later to buy a home, understand his/her workplace benefits or save for retirement, especially with a rapidly shifting array of financial products and tools in the mix. The article went on to say that there is still a way to buck the trend, and it is not all about starting one’s financial education earlier. “We’re falling into a very common trap. We’re too focused on high school,” said Ted Beck, president and chief executive of the National Endowment for Financial Education. Historically, that is where the bulk of financial literacy programs have targeted their efforts, but studies have found that the retention rate on financial lessons learned is two years at

best, said Beck – a track record that has been supported by financial literacy test results. Thus, the moral of the story is that credit unions not only need to think about the adult members who fell through the cracks, so to speak, but also need to think about continuing to educate their young members as they become adult members. So what is a credit union to do? For eCO Credit Union in Alabama, the answer was incentivizing adult financial education through a contest called the eCO Savings Race. The eCO Savings Race consists of four families or individuals selected by eCO Credit Union with a desire to improve their financial picture. After being selected, each participating family or individual is then paired with two eCO coaches to form a team; teams then work together to create strategies and goals to improve the participants’ financial outlook. As part of the requirements for the Savings Race all participants must complete Dave Ramsey’s Financial Peace University program and attend eCO Savings Race University courses. Additionally, throughout the journey, participants post written and video updates to the Savings Race website to keep the public updated on their savings progress. Likewise, local television station WIAT 42 follows participants each week providing regular updates and sharing practical tips from the teams during the morning and evening newscast. After eight months, the winner of the eCO Savings Race is declared. The winner is selected based on public vote and a selection committee consisting of eCO Credit Union and WIAT 42. The voting encourages participants to share their story and what they have learned with others in order to gain votes. Along with healthier finances, the winner receives a $10,000 grand prize. All runner-up teams receive $2,000 just for participating. Melissa Reeves, marketing manager of eCO Credit Union, explains, “As we saw the great need for financial education in the community, we felt the Savings Race was a great way to help meet the need.”

And it has worked. The eCO Savings Race has made financial education more readily available and accessible to members and nonmembers alike. The program demonstrates practical ways families can improve their finances and highlights that eCO Credit Union employees truly want to help them succeed financially. And eCO has seen more members ask for coaching and assistance with their finances. By setting itself apart as a frontrunner in providing financial education, the credit union has spread its name and message throughout the community. “I would highly recommend implementing an adult financial literacy program. The eCO Savings Race is beneficial to eCO, its members, and the community,” said Reeves. “Providing financial education is a great—and needed— way to show how credit unions live out the ‘people helping people’ philosophy.” Another credit union, West Coast Federal Credit Union in Clearwater, FL, has taken a more traditional class-oriented approach. West Coast offers its members an array of educational opportunities to address what it sees as the biggest problems in adult financial literacy.

So what is a credit union to do? For eCO Credit Union in Alabama, the answer was incentivizing adult financial education through a contest called the eCO Savings Race.

the car buying process; and Power Over Debt, which gives members an understanding of how to use and control debt. West Coast identified these areas of need after seeing trends in the questions of members and repeated issues in loan requests. Since offering the classes, West Coast FCU has received considerable positive feedback from members, and, because classes are not limited to members, they have also seen member growth and loan development from class attendees. Billie Blanchard, CEO/manager of West Coast FCU, states there is one problem with their classes, “The only complaints are the classes run over due Billie Blanchard, CEO/ to questions.” manager, West Coast FCU As eCO and West Coast have proved there are ways your credit union can reach out to your adult members, right some wrongs, help them gain financial literacy, be financially empowered, and turn your credit union into a more desirable option than the dentist – you just have to reach out and get creative.

Their classes currently include Credit Score Boot Camp, which teaches how to build and use credit wisely; the Art of Budgeting, which teaches members how to set and maintain realistic financial goals; Money Mastery, which provides wealth-building tools for families; ID Theft Awareness, which teaches how to minimize and deal with identify theft; Car Buying 101, which aids members with the finances of

SIGNAL: Vol. 5, Issue 3

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TREND

Planting Seeds the DE Way in Africa By Amy Jowers, director, Communications, LSCU The National Credit Union Foundation’s (NCUF) Credit Union Development Education (DE) program has been in existence for 32 years. It was started with a grant from the Biden-Pell Amendment in 1982 that provided special grants for development education. According to Lois Kitsch, program director for the NCUF, the purpose of the DE program is to meld international operating principles of credit unions to global development issues to help credit union professionals think more clearly on how to reach out and serve the most marginalized of members in a way that makes business sense to the institution. If you read the testimonials or talk to a graduate, you will learn how the program was a transformational experience and how they came back invigorated and more aware of global development issues. From the exchange of ideas and different perspectives to really getting the “why” of credit union existence, seeds are planted in each individual for ways to improve at their credit union whether in the business sense or philanthropically.

All the flowers of all the tomorrows are in the seeds of today. — INDIAN PROVERB

TOP: The graduate class of the first African DE program. LEFT: Chad Helminak, vice president of development for the Wisconsin Credit Union League, and Lisa Brown touring STIMA SACCO. STIMA is Swahili for electricity. ABOVE: L to R: Mike Beall president/CEO of the National Cooperative Business Association (NCBA), George Ombado, CEO of ACCOSCA; Lisa Brown; Chad Helminak; and Lois Kitch from NCUF.

The Start of Something Good In addition to the U.S., there are a total of seven international DE programs: Asia, Australia, the Caribbean, Europe, Great Britain, the Philippines, and, the newest, Africa. Kitsch was a co-facilitator for the first African DE program that took place this past summer in Nairobi, Kenya. Kitsch who is no stranger to starting DE programs across the globe - she was also involved in the development of the programs in Asia and the Philippines - says there has to be some DE champions in the home country. ”The easiest way is to have a core of people that have attended other DE programs globally

come back and work together collectively,” said Kitsch. And that is exactly how it happened with the Africa DE program. Three Africans, one from ACCOSCO (like CUNA but a trade association for all the countries in Africa), one from the World Council of Credit Unions, and one from the Malawi league, went through the DE program in January 2013 with the thought of starting a DE program in Africa. They were interested starting such a program because there are

A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 3

many different countries and cultures in that part of world. They thought it would be a way to unify African professionals around a single cause and help them collectively understand the importance of strong financial institutions designed to serve people who need them most. They believed what they experienced during the DE program in Raleigh Durham, NC, could be taken back and used in the African context. Kitsch says that there are many differences between the U.S. and Africa DE programs

but many similarities, too. The African some that I worked with in the program that deposit insurance so if a SACCO fails, members program focused on global issues such as you wouldn’t. Some were far more rural, small. lose their money. Kitsch said the biggest the cooperative principles but then there were Their definition of poverty is incredibly different challenge for the small SACCOs is to thrive and regional issues. Women in development and than ours.” to manage the SACCO in a business sense. In strong financial control of the credit union A similar issue to U.S. credit unions is the larger SACCOs, the challenge is managing were very important to focus on during the regulation; however, in the SACCOs’ case, there growth because they are thriving. African DE program. Individual project work is little regulation. It is because of regulation “The just have to manage the growth and and individual case studies were all connected that U.S. credit unions very rarely fail and the make sure non-earning assets are all in line directly to the African continent. She worked lack of regulation that many and their business model continues makes with George Ombado, president of ACCOSCO, SACCOs sense,” said Kitsch. ight.” N te a L to develop the curriculum, and they brought Reaching the youth and providing DE ce at “ an dan n Afric a in talented group of international financial education to them is a priority. g in rn p is lea e grou th f o e DEs to assist as they rolled out first “They are very mindful of the aging credit Som training. Lisa Brown, president/CEO union population and feel it is important of Tallahassee-Leon Federal Credit to get young people to be part of credit Union, was part of the group that unions,” said Brown. The couple of was invited to participate, along with SACCOs they toured measured those several others from the States and the statistics and focused on them. United Kingdom. Members mostly use SACCOs “We took a lot of time prior, made for savings and loans. There are no adjustments on ground, held mentoring checking accounts or cash ATMs core staff meetings, and rolled it out,” said rather Africans use the M-Pesa (M for mobile, Kistch. “It worked as well in Africa as it did do. In some African pesa is Swahili for money) which is a mobilein the U.S.” countries there are no regulators phone based money transfer system. The whatsoever. In other countries where the purpose for loans however, can be very different Credit Unions in Africa government did not know what should be done than those in the U.S. With no health insurance, According to the World Council of Credit but knew they needed to do something, the some look to SACCOs for loans for medical Unions’ Statistical Report, as of 2013, there trade associations were stepping in being the situations. Dowry loans are also made to pay for is a total of 22,385 credit unions, or SACCOs regulator. Brown learned that there was not any a pretty daughter or buy heads of cattle. (Savings And Credit Cooperative) as they are consistency across the continent on how each “In some cases they have to consider giving called, in Africa. Membership totals just over country handled regulations. a loan to someone with HIV,” said Brown. $17 million. Assets are around $7 billion; “It is very, very early on as far as regulation “Could that person pass away or do they have savings are almost $5 billion; and loans are is concerned or, should I say, in different a need for funeral arrangements? Very different close to $6 billion. stages,” said Brown. dynamics there. All so different but yet we’re The credit union movement is, indeed, a Sustainability is an important issue to the same.” global one. SACCOs are very similar to U.S. SACCOs. For instance, most do not have When Brown said her credit union’s capital credit unions as far as values, principles, and cooperative structure with the same sense of purpose. They serve affluent members but about Traveling in Africa also reach down deep in their programs and 1. Malaria medicine should be taken every night. products and services offered to ensure they 2. Breakfast buffets include chicken livers. are the financial institution of choice of those 3. Most hotels will open room windows during the day to keep them cool. who do not have access to banking services. 4. Monkeys will steal your clothes if you leave them out in your Just as U.S. credit unions do. hotel room. (See number 3.) “If you didn’t know any better you’d think 5. It is not unusual to have lions, tigers, and hippos standing right they were just like any other credit union in outside your hotel room. the U.S.,” said Brown. “However, there were 6. In some cases, security must escort you to and from your hotel room. (See number 5.)

Interesting Facts

7. A “snake/wild animal” check of your hotel room is conducted every night. (See number 3.) 8. No traffic rules = scary experience when riding in a car.

ratio is eight percent, they asked, “How can you possibly be that low??” It turns out, the capital at an African SACCO is a member’s initial deposit. Its share amount is really at-risk capital. When you make a deposit at a SACCO that money is at-risk and not able to be withdrawn.

Planting the Seeds

allow you to grow tremendously.” On the last day of the program, he announced he was going to open up his membership. “You helped me see things differently,” said the CEO of Brown. It was because both sides were open to learning that this breakthrough happened. “She did a beautiful job. She, in a sense, changed his mind,” said Kitsch. “She introduced the idea of growing his membership by offering products and services to women and

In this particular DE program, the participants from 14 African countries, the U.S., and Great Britain came together to a like-minded place. Kitsch said DE is about growing the relationships that get tive. oopera built during the program farm c a g n ri up tou The gro as well as the learning that comes with spending time together. The learning allows breakthroughs around the thinking about a particular thing in a different way, whether it is operational, philanthropical, or even stereotypical. Mentioned previously, one of the program’s focuses was women children and it in development. In some African became his DE project. I don’t think it countries, the equality of women is not would have happened had he not sat at the as it is in the U.S., and women have yet table with Lisa.” to attain senior level positions. A notable “If DE will help people think differently breakthrough happened between Brown and about goals and stereotypes — it may not the CEO and board chair of a large military happen right away but — it will begin to credit union. The credit union was one that change the way people think about credit did not have any women on its board. Brown unions and others,” said Kitsch. “That’s what understood that it was important to quietly DE is really about.” command respect by demonstrating her “There was a big conversation about knowledge and being respectful of her male pouring tea,” said Kitsch. “Some of the counterparts’ opinions to better understand SACCO boards have token women on them where they were coming from. One day over but basically their job is to pour the tea. At lunch they began a discussion. The CEO the end of the discussion, I said, ‘Ladies, I asked, “Women and men are treated equally don’t pour tea. The reason is it marginalizes where you’re from?” To which Brown replied my respect within the group. Gentlemen, yes. “We don’t see why we need women on if you want a cup of tea, get up and get it board because our members are only the yourself.’ They laughed and thought ‘Oh, men in the military,” said the CEO. “Why are that’s that American’ but if it only planted a you not offering membership to the wives seed, then there was success in that. In this and children and siblings and parents of particular case, those seeds went back to 14 your members?,” asked Brown. “That would different countries in Africa.”

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SIGNAL: Vol. 5, Issue 3

Why DE? Kistch has heard many times: I’ve been with credit unions all these years so I really don’t have anything left to learn. Her reply: DE is about what you can give, what you can teach. “And they always come away saying they learned so much. So DE is for everyone… whether you’ve been around for 30 years or three months,” said Kitsch. “Every single time there is a connection.” DEs realize that local issues are indeed global and that credit unions grow stronger by working cooperatively. “Exponential learning helps change lives for all of us,” said Brown. “I feel like something outside of our comfort zone will allow us to grow more as a person and help us grow our credit union. We can learn more about what is going on outside and not get stuck in a rut doing the same old thing or what others are doing. You can really break free of some of that and get creative. It’s especially good if there’s someone out there that is discouraged or tired and gotten in the rut of doing the same thing — if they are tired of getting beat up by regulators or whatever. It’s refreshing to step outside and remember why we do what we do.”

2015 Credit Union Development Education Training Winter 2015 DE Training January 14-21, 2015 Dallas, TX Spring 2015 DE Training April 29-May 6, 2015 Madison, WI Fall 2015 DE Training September 9-16, 2015 Madison, WI

If you are interested in attending upcoming DE Training in 2015 (or even DE Training in 2016), email NCUF at cude@ncuf.coop to be put on a notification list.

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ADVOCACY

The Rhyme and Reason for How LSCU Picks Candidates to Support By Jared Ross, SVP, Association Services & Governmental Affairs, LSCU Every two years we are bombarded with television commercials touting one candidate over the other. They tell us that if we elect candidate A, our state or country is going to suffer severe consequences; but, if we vote for candidate B, he or she is going to fix all of our problems, and we all live happily ever after. Then, November comes, the election occurs, and we wait for that cycle to begin anew. While many ignore the constant barrage of political advertisements, the truth is who we elect really does make a difference. This is why the League of Southeastern Credit Unions & Affiliates (LSCU) is so involved in the election process. LSCU strives to have a voice and make a difference in who gets elected at the state and federal levels for Alabama and Florida. Election time is an opportunity to help elect credit union friendly candidates to the state legislatures and Congress. The one question we often hear is, “How do you pick which candidates to support?” The truth is, there is no one way we select candidates to support, however, we do our best to ensure that those we do help are both credit union supporters and electable candidates. The process begins well in advance of the elections as our governmental affairs (GA) team is often asked by political consultants to meet with a multitude of candidates. We do our best to meet with anyone and everyone who asks so that, when the time comes to pick a candidate, we have done our homework. Many people will file to run and not qualify for the ballot so, as the elections get closer and a better picture ensues on who the real candidates are, we send out candidate questionnaires asking each respondent some credit unionspecific questions. These questionnaires not only help us determine who we believe are the most credit union-friendly, but also help us produce our voter guide. With Congressional candidates, we usually focus questionnaires on the most competitive race or a seat that we are extremely interested in (i.e., Alabama’s open 6th Congressional seat). Additionally, we will reach out to credit unions in the area to get their input on candidates. Often times, this is the most helpful information because our credit unions are the ones in the community. The GA team then sits down and discusses each race and decides whether we want to pick a candidate, stay out of a race, or go all-in. When the League decides to take a stance in a particular race, our support or involvement varies. Sometimes, we will make a campaign contribution to show our support and other times we will

A Magazine of the League of Southeastern Credit Unions & Affiliates

LSCU strives to have a voice and make a difference in who gets elected at the state and federal levels for Alabama and Florida. make a contribution of both time and money. The level of support we give a candidate depends on many factors, most importantly of which is their support of credit union issues. For candidates who have demonstrated strong support of credit unions and issues important to the industry, the League’s GA team will take the time to volunteer on their campaigns, engage credit union advocates in legislative activities, and work to raise the candidate more money. Additionally, the GA team often will recommend certain candidates for endorsement by the PAC Board of Trustees in the candidate’s state. If the candidate is running for U.S. House, U.S. Senate, governor, or other statewide office, the candidate may be considered for endorsement by the LSCU board of directors under a new policy put in place this past January. Under the new endorsement policy, the candidate must first be endorsed by the PAC trustees in his or her particular state before being considered for full endorsement by the LSCU board. When the LSCU board does choose to support a candidate in this way, the endorsement will come from each state’s individual association, the Alabama Credit Union Association or the Florida Credit Union Association. Each step we take to help a candidate who has shown their support for the credit union industry helps to build upon relationships that become important upon that candidate’s election. Lawmakers remember the individuals and groups who were there with them from the beginning, and the League is doing all it can to build a good stable of credit union friendly lawmakers. One thing we always want to stress is that we do not pick candidates based on their party affiliation. We are a non-partisan organization and support Democrats, Republicans, and Independents. If you would like to get involved on a campaign, contact the League’s GA team so that we can help.

SIGNAL: Vol. 5, Issue 3

Important Upcoming Governmental Affairs Conference Dates in 2015

League of Southeastern Credit Unions & Affiliates

CUNA GAC

March 8-11, 2015 Washington, D.C.

Florida State GAC March 24-25, 2015 Tuesday – Wednesday Tallahassee, FL

Alabama State GAC April 7-8, 2015 Tuesday – Wednesday Montgomery, AL

Contact LSCU Director, Legislative Affairs (FL) Jennifer Martin at 866.231.0545 ext. 1150 or Director, Governmental Affairs (AL) Jason Cochran at ext. 2159.

ADVOCACY

Protect Your Capital at the Capitol By Jeff Rendel, CSP, president, Rising Above Enterprises With all of the laws, regulations, new agencies, and checks on your credit union coming from legislative and regulatory bodies around the country, what does an executive do? Hang on for the unavoidable and fiddle with a business model as a result? No. The leading executive advances and defends his or her credit union by developing and upholding political influence in capitals around the land. What does it take to build genuine, long-lasting influence with elected officials? Influence. Local credit union executives have much influence with Congress or any legislature for that matter; and, for each issue, a legislator has a handful of people he consults with initially. These people have the most amount of influence with the legislator. Are you on that list? Influence is much more than writing a timely letter, inundating a lawmaker’s phone system with calls, or joining a lawmaker’s society of ambassadors, champions, and friends. It’s a fine place to start, but – for all intents and purposes – it results in franking privilege letters and the annual Capitol Christmas Calendar. Straight from the source (members of Congress shared this with me during my days as a lobbyist to Congress), here’s what it takes for an executive leader to secure influence and protect his credit union’s capital at the Capitol.

Influence is much more than writing a timely letter, inundating a lawmaker’s phone system with calls, or joining a lawmaker’s society of ambassadors, champions, and friends. It’s a fine place to start, but – for all intents and purposes – it results in franking privilege letters and the annual Capitol Christmas Calendar. Make governmental affairs business-as-usual, not just-in-time or as-needed. The most influential organizations and corporations are the most consistent with time, effort, and resources. They include governmental relations in their strategic plans and annual budget. They require that a senior-level executive, as an official part of the job, represent the credit union before government leaders. Ultimately,

A Magazine of the League of Southeastern Credit Unions & Affiliates

they recognize that influence rests in the hands of only some, and they build systems to be a part of that set.

Clarify, with solid information, the effect that laws and regulations have on your credit union. The best lobbyist is the local business owner or manager. After all, he understands the real world on the corner of Fifth & Main. Communicating how your credit union is affected adds authenticity to your position. Be conscious that your competitors may be selling a different story. Are their statements accurate? Do you have a detailed reply? Do you have a solution? Provide this type of information as you build trust in this relationship.

Be valued as the trusted resource on credit union matters. Trust takes time, commitment, and reliability. For this reason, regular face time is indispensable. Since legislators serve numerous constituents and assess thousands of legislative bills, you may spend plenty of time with their key staff members. That’s OK; in fact, it’s valuable since key staff members are the minds behind your issues and the eyes and ears of the legislators. Building trust with staff builds trust with the legislator. In due course, your relationship with both grows to be a productive partnership.

Invest in the careers of those who invest in your issues. Money – you knew the subject was imminent. In politics, two rules apply: 1) Get elected; and, 2) Get reelected. Both take time and money. You’ll recollect from Point #1 above that “influence rests in the hands of only some.” These “some” supply money and time. Personal contributions matter most. You can’t deduct, for income tax purposes, political contributions. These monies come from the cash flow you produce and make use of through life. Legislators appreciate the sacrifice. Coordinated and PAC contributions show unity. Perhaps the legislator championing your industry lives on the other side of your state. Clearly, your interests aren’t his constituents, but his backing of your cause affects your members. This is a friend you want to keep in office, even if they serve another neck-of-the-wood. Campaign volunteer contributions show commitment. Conceivably more important than campaign money is the time required to administer a political campaign. Your leg work in helping a legislator win office pays dividends for a very long time.

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Take a public stand on your issues and candidates’ stances. Use your internal communications and the local media to discuss business issues. State your case in your newsletter and social media. Write an Op-Ed in your local newspaper. Let your members know how laws and regulations affect their credit union, as well as the products, services, and prices that your members enjoy. If you’re willing, communicate with your members politically, i.e., “Vote for Bob” or “Don’t vote for Bob.” Express endorsement is a competitive advantage and allows lawmakers to recognize that you have influence and the ability to speak politically to your owners. Credit unions hold a tremendous advantage with express endorsement. Both credit unions and banks can communicate politically to their owners. The biggest difference is your credit union is comprised of thousands of local owners. Banks? Maybe hundreds. Executives – and the credit unions they lead – that adhere

to these steps to lasting political influence will prevail. In spite of everything – and for as long as we can see in our mind’s eye – legislators and regulators will endeavor to pass and implement laws and regulations that help or hinder your credit union. The strategic executive understands that he needs a leading voice in this course of action. He needs to always protect his credit union’s capital at the Capitol. © 2014 by Jeff Rendel. All rights reserved. Jeff Rendel, Certified Speaking Professional, and President of Rising Above Enterprises works with credit unions that want elite results in leadership, sales, and strategy. Each year, he addresses and facilitates for more than 100 credit unions and their business partners. Contact: jeff@jeffrendel.com; www.jeffrendel.com; 951.340.3770.

At Office Depot®, we’re here to provide more than just supplies. We’re here to help reduce your costs and consolidate your spending to make a positive impact on the financial health of your credit union because that’s what a true partner does.

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ADVOCACY

Costa Rica Credit Unions Come Away with Plan of Action for Lobbying after Visit to Tallahassee By Jordan Burroughs, specialist, Governmental Affairs, LSCU In June, the League hosted 10 credit union officials from Costa Rica for a three-day meeting that focused on legislative advocacy. The Costa Rican delegates were all members or employees of FEDEAC, the national credit union trade association in Costa Rica, with which the League has an international partnership agreement through the World Council of Credit Unions. The visit included discussion about lobbying and creating an effective, unified message which credit unions can bring to lawmakers. The League’s Governmental Affairs team discussed how they interact with the legislature on behalf of credit unions, how they organize grassroots campaigns, and how they tap credit unions to assist in the lobbying process. In addition to discussing advocacy and grassroots efforts, the group was interested in hearing from Tallahassee-area credit unions about technology, specifically mobile banking and remote deposit capture. The group met with Tallahassee-Leon Federal Credit Union, Envision Credit Union, and First Commerce Credit Union.

The group took a tour of the old Florida Capitol.

“We were able to give our visitors some ideas to help revitalize their lobbying efforts, and explaining our practices. It was a great exercise to remind us why we do what we do. We all came out of the meeting reenergized about advocating on behalf of our credit unions.” 14

A Magazine of the League of Southeastern Credit Unions & Affiliates

“Their trip to Tallahassee was a beneficial exchange for all parties,” said Jennifer Martin, director of LSCU Governmental Affairs. “We were able to give our visitors some ideas to help revitalize their lobbying efforts, and explaining our practices. It was a great exercise to remind us why we do what we do. We all came out of the meeting reenergized about advocating on behalf of our credit unions.” A major point of discussion during the trip was how to communicate a unified message to elected officials. The delegates from Costa Rica voiced their concerns about their current lobbying practices saying that each credit union has their own unique and individual issues they are bringing to lawmakers. As a result,

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The group returned to Costa Rica with a clearer vision of the future of mobile banking technology and a plan of action for lobbying their legislators. League staff and host credit unions left the meeting with an understanding of the financial service environment in Costa Rica and a realization that, regardless of country or culture, all credit unions care for the well-being of their members and their organization, and are eager to work together for the advancement of the credit union movement. If your credit union would like to learn more about getting involved in the League’s grassroots advocacy efforts, contact LSCU Grassroots and Political Action Coordinators Blake Westbrook (Alabama) or Andy Gonzalez (Florida) for information at 866.231.0545, x2164 and x1010, respectively.

The Costa Rican group poses with LSCU & Affiliates staff in front of the Tallahassee office.

lawmakers may be receiving mixed messages from the credit union industry. They complimented the League’s process of creating an issues agenda for credit unions to use while speaking with policy makers. They also commended Alabama and Florida credit unions for sticking with the agenda—even on issues that may not be relevant to certain credit unions—for the greater good of the movement as a whole. “Credit unions need one story. It is important to be consistent,” said Manuel Bolaños, CEO of FEDEAC. “We must have one message, and the more it is seen, the stronger it becomes.” First Commerce’s chief of staff and LSCU Governmental Affairs Committee member Jan Sheffield understands the importance of being involved in advocacy. “We showed the Costa Rican group all the things we do to help influence policy, from political giving to community involvement. The League advocates on our behalf, but it is even more effective when lawmakers also hear from credit unions about the issues and about the great things we are doing to impact that lawmaker’s community. It really is a team effort.”

Meeting with Florida Gov. Rick Scott’s director of legislative affairs, Darrick McGhee.

ADVOCACY

ComplySight – The Wave of Future Compliance By Bill Berg, VP, Compliance Training & Information, LSCU In the compliance world, first there was InfoSight, then there was Policy Pro, and now there is ComplySight. All three of these online compliance tools are available from the LSCU & Affiliates. ComplySight provides a notification element not offered by the other compliance programs and serves as a communication bridge between InfoSight and PolicyPro. Even with InfoSight and Policy Pro you still need to pay attention as new regulations come down the pike. That is where ComplySight comes into play. ComplySight notifies your credit union when a new regulation comes into effect. An email is sent to the credit union’s administrators and a regulatory alert is placed in the system. When your credit union enters its ComplySight website and has received a regulatory alert, it has three options in proceeding: it can address the new regulation, defer it, or state that it does not apply to your specific credit union. An example of a regulation alert that would not apply to some credit unions would be an alert concerning leasing. If your credit union does not offer leasing, that alert does not apply to your credit union. In that case, your credit union can basically shut the file cabinet with leasing information in it. If at some future date your credit union decides to start leasing, you can open the drawer and all the information will still be available for your credit union. Additionally, ComplySight provides a direct link to the appropriate areas on InfoSight and/or PolicyPro. At the bottom of the ComplySight screen, to see additional information on the law, regulation, summary or detailed analysis, click the InfoSight button and InfoSight will be launched immediately. Click on the PolicyPro button and the appropriate policy in PolicyPro will appear. Plus, if you are using PolicyPro to house your credit union’s policies, it will go to your credit union’s policy in the working manual. If your credit union is not housing its policies in PolicyPro, it will go to the Master Policy that is on point. ComplySight is not a free product. However, it is offered at a reduced rate compared to similar products in its field. For credit unions less than $50 million in assets the annual fee is $500 (and you can use your Cooperative Initiatives credit to pay for this). For credit unions between $50 million and $250 million in assets, the annual fee is $1,500. For credit unions over $250 million in assets, the annual fee is $3,000. If you would like additional information about ComplySight, InfoSight, or PolicyPro, contact Bill Berg, VP of compliance training and information or Scott Morris, director of compliance at bill.berg@lscu.coop or scott.morris@lscu.coop or 866.231.0545 x1028 or 2165, respectively.

A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 3

Keys to Maintaining Compliant Overdraft Program Many existing overdraft programs are outdated or obsolete with the implementation of new consumer protection regulations and restrictions on charging fees for overdrafts resulting from ATM withdrawals and one-time debit card transactions (Reg E). To provide account holders with the most up-to-date overdraft solution, programs should include the following: ■■ Updated communications materials for account holders to fully understand the benefits of the service and how to use it responsibly ■■ Improved analytics, and more robust data monitoring and analysis to support better program management ■■ Strong reporting and tracking capabilities to measure program performance and implement any necessary improvements. According to JMFA, the following program safeguards should be implemented: ■■ Reasonable, communicated fees ■■ Clearly established overdraft limits ■■ Transaction clearing policies that avoid maximizing account holder overdrafts and related fees created by the clearing order ■■ The ability to easily monitor excessive usage ■■ Communications materials that outline alternative financial products that more appropriately fit the needs of excessive overdraft users

Politicians know how to count.

Make sure the members of your credit union are counted. Project Zip Code â&#x20AC;&#x201C; it counts! Project Zip Code is a user-friendly, secure computer program that counts your members and matches them with their state and federal legislative representatives. It illustrates the number of credit union members in each legislative district and gives us a clear idea of our grassroots strength. It also allows your credit union to identify potential areas for additional branches and/or ATM locations.

For more information about Project Zip Code, contact LSCU Grassroots & PAC Coordinators Blake Westbrook (blake.westbrook@lscu.coop) or Andy Gonzalez (andrew.gonzalez@lscu.coop).

www.cuna.org SIGNAL: Vol. 5, Issue 3

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LSCU Legislator Profile

Representative Janet Cruz Rep. Janet Cruz was first elected to the House to District 58 on Feb. 23, 2010. Then in 2012 she was elected to represent Floridaâ&#x20AC;&#x2122;s 62nd District. Prior to running for the House of Representatives she worked as an optician and health care executive. She serves on the Ethics & Elections Subcommittee, Health Care Appropriations Subcommittee, Appropriations Committee, Energy & Utilities Subcommittee, Joint Committee on Public Counsel Oversight, and the Select Committee on Gaming.

What interested you enough about politics to lead you to run for the Florida House of Representatives? I have always been active politically. After working and running several campaigns and being involved in issues that affect our state, I thought it was time for me to do more to help the people who live in Tampa. I wanted to run as a voice for the working people of District 62 (then District 58) to help ensure that their quality of life is all that it should be. As we head to the 2015 Legislative Session, what are the three most important issues you see facing Floridians? I have always said that jobs are a priority for me. I just held my fifth annual job fair in my district and hosted more than 90 employers and more than 700 job seekers. People are still struggling, and I want to be there to help them. As a state, support is necessary to help those who are still struggling to find quality jobs. The Florida Legislature continues to fail to provide quality health care for all Floridians. It is wrong that so many men, women, and children in our state do not have basic health care. In the year 2014 it is not right that

A Magazine of the League of Southeastern Credit Unions & Affiliates

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Florida continues to have so many hard-working residents who cannot go to a doctor because they do not have insurance. I am committed to try and find a solution to this problem and hope that the 2015 Legislative Session will be the year we make a change. The education system in this state is broken. We continue to take money away from public schools which contributes to the declining quality of education in Florida. We need to work to ensure that our K-12 system and our higher education system are ranked among the best in the country. The Florida of tomorrow depends on making sure that the next generation is educated and ready for its own future. What role do you see for credit unions in the financial services industry and in Floridaâ&#x20AC;&#x2122;s economy in particular? Credit unions play an important role in the working families of Florida. By making banking easy and affordable, working families are able to save for the future and provide for the present. So many new home owners would not qualify for mortgages under traditional bank standards. The options and flexibility of credit union mortgages can make

all the difference to a family as they move into their first home and realize the American dream. How important do you see the role of grassroots advocacy in the legislative system? What advice do you have for credit union grassroots advocates? As someone who has participated and organized grassroots advocacy I recognize the importance of starting at the beginning and bringing awareness to those in elected office. It is important to educate the public on issues that may be important to them in the future and to build an organization or group of people who believe in a particular issue. As a legislator, it is always important to know what the people in my district and community think about a particular issue. While there are big firm lobbyists in Tallahassee, I have always thought it was important to know what local and state organizations—made up of average Floridians—think about issues that the legislature faces. My door has been, and will always be, open to grassroots organizations.

Suncoast Credit Union’s Gary Vien and Vicki Lovett with Rep. Cruz at a legislative meet and greet held by the Tampa Chapter of Credit Unions.

job and consider it a great honor to represent the people of District 62. I know firsthand the struggles that working families and single mothers face, and I work hard to help all Floridians. n

What has your experience been like working with the LSCU Governmental Affairs team? I can honestly say it has always been a pleasant and informative working relationship with the LSCU team. Is there anything else you would like credit union advocates to know about you? I travel to Tallahassee each session with the hope of doing the best that I can for the people of Florida. I love my

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LSCU Legislator Profile

Congressman Robert Aderholt Born and raised in Alabama, Congressman Robert Aderholt began his ninth term representing Alabama’s 4th Congressional District in January 2013. Congressman Aderholt is a member of the Commission on Security and Cooperation in Europe and a member of House Committee on Appropriations. He is also a member of the Commerce, Justice, and Science; and Defense Subcommittees, and is the chairman of the Subcommittee on Agriculture. Before he ran for office, served as a municipal judge in Haleyville, AL and then as an aide to Gov. Fob James.

How and why did you become interested in public service and politics in particular; and what initially led you to run for Congress? Growing up, I was exposed to politics during my father’s tenure as 25th Judicial Circuit court judge for Alabama. However, I first became interested in the legislative process as a teenager when I had the opportunity to serve as a page in the Alabama House of Representatives. At the State House, I discovered that I enjoyed working with people; I also found fascinating the legislators’ methods of seeking common ground to make law. I actually ran for the Alabama House of Representatives as I was finishing my last year of law school. However, I was unsuccessful, losing 48 percent to 52 percent. But, six years later, Congressman Tom Bevill retired, and I decided to run for the open seat; the people elected me to represent the 4th Congressional District. Again, my interest in helping people, working with them, and finding ways to solve problems is something that continues to motivate me as I serve the 4th District of Alabama.

A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 3

As we get closer to the midway point of the 113th Congress, what are the most important issues that need to be addressed? Immigration and the Affordable Care Act (ACA) will continue to be the most important issues in this Congress. The border crisis and the recent rulings on the ACA highlight the critical nature of these issues and the concerns of Americans across the country. For the financial services sector, the consequences of the DoddFrank Act and over-regulation will be one of the most important issues. Dodd- Frank and the restrictions on the flow of capital available to the economy have done more to stagnate economic growth than any other piece of legislation passed under this president, except maybe the Affordable Care Act. The House has passed a number of legislative fixes to the myriad of problems in Dodd-Frank; the Senate has yet to act on any. Credit unions are seeing an alarming increase in regulatory burden throughout Alabama and across the nation. What do you feel is Congress’ role in helping alleviate the regulatory burden and decrease the amount of red tape credit unions see on a daily

basis? Is there a way to decrease regulatory burden in the near future? The worst thing we can do is apply big bank regulations to community banks and credit unions. These institutions serve as monetary lifelines to our small communities. The government’s over-regulation of them has had a detrimental effect on local jobs and economic growth. Congress’ role is to create common sense solutions that help our communities, not hurt them. What we need is common sense. This process begins with common sense reforms to Dodd-Frank and an understanding by this Administration that over-regulation has consequences— in this case, the consequence of slower than usual economic growth. You recently signed on to a letter by Reps. Peter King and Gregory Meeks that addresses concerns over a rule proposal by the NCUA regarding new risk-based capital requirements being imposed on Alabama credit unions. What led you to sign on to the letter, and what are your concerns with the proposed rule? Right now, we’re in the midst of a difficult and slowmoving recovery. Right now, more than ever, people need to have the confidence to take out loans. More loans mean more spending by investors right in the communities where they live and more spending means more jobs to meet the demand. When Washington overregulates, it makes it difficult for lending institutions to operate well and supply their members with loans. That’s why my colleagues and I signed a letter to the NCUA asking it to further consider the economic impact of new rules that raise the risk-based capital requirement for credit unions. The letter also asks the NCUA to lengthen the implementation period for the rules, so that credit unions can have time to adjust and not decrease their services.

Congressman Aderholt (center) talks to his constituents during CUNA’s Hike the Hill.

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? Outside of your vote in both the primary and general elections, grassroots advocacy is just about the most important thing you can do to make democracy work. The best advice is for you to tell me your concerns by reaching out via email, writing, or calling. There is a lot of activity across the Hill on any given day, which can unintentionally cloud other issues. If you hear something that concerns you, let me know! Is there anything else you would like for Alabama’s credit unions to know about yourself or legislative initiatives you are involved in? Decreased spending and less regulation for small businesses— that is the House’s battle cry. On the Appropriations Committee, we are determined to cut spending (much to the Administration’s dismay), and so far, we’ve been successful. The answer to our national debt is not to increase taxes on the businesses and institutions that work so hard for Americans and drive our economy; the answer is not to smother them with regulations either. n

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INITIATIVES

LSCU Young Professionals Group: Growing Chapter by Chapter, Young Professional by Young Professional By Laura Vann, vice president, Cooperative Initiatives, LSCU Since its launch in 2012, the LSCU Young Professionals Group (YPG) has grown to include more than 245 participants from each of the 19 LSCU chapters. “Our Tampa, Tallahassee, Palm Beach, Northeast Florida, Central Florida, Wiregrass, and Birmingham chapters have active groups,” said April Ales, member relations consultant in the LSCU Cooperative Initiatives Department and the coordinator of the YPG program. “We are in the process of organizing groups in all of our chapters,” she added. According to Ales, any LSCU-affiliated credit union or CUSO employee under the age of 40 is eligible to participate in the LSCU YPG. “The program is structured as a stand-alone group with geographic groups as sub-sets of the appropriate chapter,” Ales said. There is no fee to participate in the group but YPG activities at events such as the Southern Credit Union Conference & Expo do have a registration fee. Those who wish to participate in the YPG only need to complete a registration form on www.lsuc.coop. “If you click on the Cooperative Initiatives tab and then click on Young Professionals Group, it will take you to the registration form,” Ales explained. “Participants are asked to register so that we can contact them about scholarship opportunities, events in their area, and our quarterly webinars.” The webinars focus on professional

development and leadership. “A major purpose for the YPG is to prepare credit union staff members to assume leadership roles both in their credit union and the credit union movement. Through the webinars, as well as the local meet-ups, the young professionals (YPs) have an opportunity to learn from leaders on topics ranging from advocacy to community involvement to building a career in credit unions,” Ales said. “We know that there are a lot of opportunities for young people to network on a social basis and get involved in their communities. We think our YPG program really stands out from programs that focus only on the social aspect. Participants in the LSCU YPG program have the opportunity to build their networks but also learn how to communicate the credit union message to their peers and their communities,” she said. “They will explore how to grow within the credit union movement and look at credit unions as a career path. We

A Magazine of the League of Southeastern Credit Unions & Affiliates

believe participation will motivate young professionals to become more engaged in the credit union industry through participation in advocacy activities such as Hike the Hill or state governmental affairs conferences. We also hope they will take leadership roles with their local chapters, and we are already seeing that happen. Since the young professionals are the credit union leaders of tomorrow, it is vitally important to give them a strong foundation on credit union history, values, and the cooperative philosophy.” Ales said that the LSCU hopes to add some type of more formalized training for the YPG, possibly an online certification program in leadership. “We want to make sure that our young professionals are well-rounded and that they have the necessary skills to continue to grow in their positions. We recognize that not everyone wants to be a CEO or CFO but we want to make sure that our young

The Northeast Florida Chapter of YPGs held a dance marathon. The event raised $10,369 ($20,369 with the CO-OP match) for Jacksonville CMN hospitals.

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consultant for your area. We can provide more detailed information or will be happy to meet with you to discuss how the YPG program can be a good fit for your credit union.” She also noted that the YPs do not allow geographic distance to become an obstacle, the group utilizes Facebook and LinkedIn to stay connected and have group discussions. She encouraged CEOs to support the YPG program and motivate their employees to participate. “Participation in the YPG program will only enhance your employee retention efforts. Collaboration and cooperation are critical to the long-term success of the credit union movement. Each of us has a role to play to ensure credit unions remain the best financial choice for consumers.”

A great showing for the kick-off meeting for the Wiregrass Chapter of YPGs.

“Participants in the LSCU YPG program have the opportunity to build their networks but also learn how to communicate the credit union message to their peers and their communities.” professionals continue to grow professionally, regardless of their individual career path.” She noted that several of the YPGs have held fundraisers for their local Children’s Miracle Network Hospitals. “The Northeast Florida YP participated in Jacksonville’s Second Annual Citywide Dance Marathon and raised $20,369 for their Children’s Miracle Network Hospitals.” Ales said several other groups have creative fundraising projects underway or recently completed, including the Tampa YP’s bingo tournament and the Birmingham YP’s cornhole tournament. “We want to give each YP group the flexibility to evolve on its own and to develop

its own community projects, while adhering to the overall objectives of the LSCU YPG program,” Ales said. “We recognize that each geographical area will have some differences but our over-arching objective is to provide a framework to develop the credit union leaders of tomorrow. Our current participants represent 54 different credit unions and more than 72 job titles ranging from teller to CEO.” Ales noted that there were some geographical areas with very little participation in the YPG. “If your credit union is not involved with the YPG in your area, I encourage you to contact me or the member relations

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EDUCATION

New Look for LSCU Education Workshops By Teresa Gray, senior director, Education, LSCU The one and two day education events have a new look! Now you can determine what topic the workshop is by the icon and color on the promotional material, i.e. web banner, electronic and paper flyers, emails, etc. You may have already seen these on our website, but we want to provide them all to you so you can see the icon and color for each topic.

BSA Schools Basic: provides an overview of all BSA/ AML and OFAC program requirements and is right-sized for those institutions that do not have complex operations, while providing a thorough basis for the advanced training. Advanced: goes in-depth regarding more complex products and services, as well as ramping up risk assessment, due diligence, and internal controls. BSA Workshops – provides an overview of credit union specific BSA regulations and how to remain compliant with BSA training requirements as well as review common mistakes examiners are finding.

Collections & Bankruptcy – provides bankruptcy basics then progresses through complex contract and legal issues. Disaster Recovery – learn what’s expected from examiners, how to safe-guard your credit union, and learn valuable tips on how to create and test a well-prepared disaster plan of action. IRA Essentials: gives attendees a solid foundation of IRA knowledge with class exercises to help apply information to jobrelated situations. Advanced: builds on the attendees’ knowledge of IRA basics to address some of the more complex IRA issues their financial organizations may handle.

Lending – provides the knowledge to improve loan decisions; increase revenue, profitability (ROA), and loan opportunities; as well as membership growth retention. Regulatory Compliance– gain a solid understanding of the rules and regulations facing credit unions along with regulatory updates, including: what’s hot now, what recently changed, and what will change next. Security & Robbery - provides in-depth and comprehensive information to assist in keeping employees and members safe. Workplace violence, robbery, and other threats are covered.

We know in today’s fast-paced world, many still like the simple things of life. These icons are designed to “simply” guide you to those workshops that are of utmost importance to you. When you see the color and the icon, you will be able to immediately mark your calendar for that particular session. The education team aims to find key speakers to provide the most up-to-date topics that are needed to assist in daily operations. Our sessions provide attendees the opportunity to be interactive, not only with the speaker, but with peers as well. Stay tuned for more sightings of these icons. Watch our website as well as our electronic communications for workshops that will work for you.

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SIGNAL: Vol. 5, Issue 3

EDUCATION

Upcoming Learning Opportunities Check out the learning opportunities for 2014 and mark your calendars. More details on each event can be found online at www.lscu.coop. Click the Education tab then Events Calendar.

October 2014 TBD

NFCDCUs Community Development Workshop, Location TBD 12 Fundamental Audit Steps to Strengthen Internal Controls

IRS Reporting Requirements: 1098s, 1099s, TINs, Backup Withholding & Recent FATCA Expanding Loan Portfolios & Improving Loan Profitability Using Credit Migration Modeling

7-8

LSCU Collections & Bankruptcy School, Birmingham, AL

Compliance & Legal Issues in Employee Screening: Pre-Hire & Post-Hire

Frontline Series: Reg E for the Frontline: Compliance & Guidance for Error Resolution

Required Compliance Series: Regulatory Compliance for Deposit Operations, Including BSA

December 2014

Recent Accounting Developments & Future Issues

ACH Specialist Series: Handling ACH Exceptions & Returns

Emerging Leader Series: Turning Credit Union Financial Statements into Useful Ratios & Trends

Frontline Series: Opening Accounts for Nonprofit Organizations

Traditional & Roth IRA Reporting Responsibilities: Requirements, Issues & Answers

Real Estate Lending Series: Residential Appraisal Review

16 21

Safe Deposit Boxes: Compliance, Legal Issues, Delinquencies & Death

GFE & HUD-1 Now: Dealing With Current Forms, Current Challenges & Regulator Hot Buttons

How to Reduce IT Risk Assessment Time by 70% & Still Satisfy Examiners & Your Board

28-29

LSCU Lending School, Birmingham, AL

Social Media Update: Facebook, LinkedIn, Twitter & YouTube

Decision Roadmap for the New TILA/RESPA Integrated Disclosure Forms

November 2014 4-7

Southeast Leadership Development Conference, Destin, FL

Mobile Payments: What You Need to Know Now, What You Need to Do Next

Top 10 Ways to Improve Skills as a Supervisory Committee Member

Increasing the Bottom Line By Preventing Losses

Obtaining & Securing Judgment Liens

HR Audits for Credit Unions

Required Compliance Series: Robbery Preparedness for All Staff

Ability to Repay & Qualified Mortgages: 2015 Changes & Lessons Learned the Hard Way

Self-Examination for Fair Lending Compliance Director Series: What Can We Learn from Failed Credit Unions?

Denied Loan Requirements: Consumer, Commercial & Residential

Advertising Compliance: Website, Print, TV & Radio

eBanking Incident Response: Do You Have a Plan if a Member is a Cybercrime Victim?

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

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COMMUNICATIONS

Twitter is More Than Just a “Tweet” By Mike Bridges, vice president, Communications, LSCU Here’s a revelation - social media is here to stay! I know that is not really big news, but for some credit unions it’s worth repeating. We have become a 24-hours, 7-days-aweek, 365-days-a-year society. It seems like everyone can be reached instantaneously which can be very good for credit unions. However, many credit unions aren’t utilizing social media channels like Twitter to its fullest. Social media is all about engagement; not likes or follows. Twitter has completely revolutionized the way the world communicates. The social media channel has grown from 30 million users in 2010 to more than 270 million users in 2014. These are active users, tweeting 500 million times per day. Major corporations are not writing press releases anymore; they are announcing their news on Twitter. News outlets are now using Twitter to fill their media channels. Breaking news is routinely reported on Twitter first. It is only 140 characters, but this is how the world is talking to each other, sharing information, and making decisions. In other words – how they are engaging. Engagement is where credit unions have opportunities. The majority of Twitter users, 78 percent, are “tweeting” from their mobile devices. This means that you are potentially with your members 24/7/365. As Don Draper famously quipped in an episode of Mad Men, “Once you get inside their heads, you are there forever; free of charge.” By incorporating Twitter into your communications plan, credit unions can now interact with their members on a regular basis and can tweet to them while they are making decisions. This is especially effective on a day-to-day basis. For example, tweet from events that you are sponsoring. Tailor the tweets to show why the event is beneficial or tweet photos of the great things going on. People are always looking at their Twitter feed and will see something they shouldn’t miss. Twitter also gives you the opportunity to speak directly to your member. Members will be upset at times about something the credit union is doing. Don’t be afraid of the negative tweet. By solving their problem or explaining the reason behind what they are upset

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about can strengthen the relationship. This is extremely effective if their question or complaint can help other followers. One way to make sure more than just your followers can see the interaction is to put a period before the @ (.@) symbol of their handle at the start of your tweet. By doing this, it can be seen in both of your timelines. Otherwise, the only people that can see the back-and-forth interaction are just those that are following both of you. You can also take that trick to another level by using the “.@” when interacting with lawmakers and city officials. The League has many social media initiatives that ask credit unions to send messages to lawmakers. Next time you tweet to a lawmaker use the period before the @ symbol and everyone in your timeline and their timeline can see. This can open the eyes of your followers to the issues you are tweeting about. Many times these issues will affect them. By getting a few retweets or replies you can greatly enhance the one message that you sent out. This is very effective as lawmakers’ judge volume as much as the message itself. Another way to effectively use Twitter is as a customer service portal into your credit union. Simply Measured reported last year that it found 30 percent of the top brands have customer services accounts on Twitter. Some are interacting as much as 100 times per day with customers. Not many credit unions would have that many inquiries, but a look at Navy FCU’s Twitter feed shows a significant amount of interaction. The bulk of it is answering questions or complaints. Many of the top brands provide an answer to a question within three hours. This will help alleviate the anxiety of the negative tweet. These are just a couple of examples to help credit unions utilize Twitter to its fullest. There are many more ways it can be beneficial. Diving into Twitter can be difficult and overwhelming, but it can also be incredibly rewarding. The only limit to its use is by the user. Credit unions are known for their member service and community engagement. Think of Twitter as the next step in maintaining and enhancing your engagement with the member. Diving below the simple tweet will pay dividends. #youwillbeamazed

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NEWS

2014 SCUCE: A Review in Pictures The 2014 Southeast Credit Union Conference and Exposition (SCUCE) held in June brought more than 1,100 attendees to Orlando. This year was the first year the event was opened up to attendees throughout the Southeast with credit unions attending from Louisiana, Tennessee, and Texas. The exhibit hall also expanded in reach and attendance.

Awards (TOP LEFT) Baptist Health South Florida FCU receives the LSCU Award for Credit Union of the Year under $100m in assets. Accepting the award is Michael Raley, president/CEO of the credit union. (MIDDLE LEFT) CFE FCU takes home the LSCU Award for Credit Union of the Year in the $500m+ in assets. President/CEO Joe Melbourne accepts the award. (BOTTOM LEFT) Railroad and Industrial CU’s Art Wood is named Professional of the Year. Art began his career as a volunteer in 1969. He loved the credit union way so much he went to work for Jax Navy FCU (now VyStar CU) and the rest is history. (ABOVE) First Commerce takes home the LSCU Award for Credit Union of the Year in the between $100-$500 m in assets. President/CEO Cecilia Homison and board chair Jerry Osteryoung accept the award. (IMMEDIATE LEFT) Alabama Credit Union’s Lynne April poses with her Volunteer of the Year award. Lynne has been a director with Alabama Credit Union for 25 years.

CEO Roundatable Attendees of the CEO Roundtable had the opportunity to discuss current issues important to their credit unions and get feedback from their peers. Mary Ott Wood, president/CEO of Florida West Coast Credit Union, and Steve Swofford, president/CEO of Alabama Credit Union lead the CEO Roundtable.

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Closing General Session (LEFT) Former Florida State Coach Bobby Bowden, the keynote speaker at this year’s SUCE, focused on heart. Coach Bowden entertained attendees with humor and heart drilling home the significance of applying the golden rule to leadership. He asked attendees to keep it pure and treat everyone with kindness. Bowden explained that great leaders have compassion and let their staff do their jobs. Pictured here with Coach Bowden is Jill Evans with San Antonio Citizens FCU. (RIGHT) Filene Research Institute CEO Mark Meyer, one of the speakers at this year’s Closing General Session, stressed the seventh cooperative principle, cooperation among cooperatives. Myers explained that 70 percent of consumers are fed up with their financial institution but only six percent are making the move to a credit union and said by working together credit unions could increase that number.

Dinner (LEFT) Top 40 swing band sensation, Martini-pop, kept attendees on the dance floor with their swing versions of top 40 hits. (ABOVE) SCUCE attendees close out the event at the Dinner, Entertainment, Awards, & Silent Auction.

Directors’ Roundtable

Dr. Jerry Osteryoung talks with attendees of the Director’s Roundtable. The group discussed critical issues in their credit unions, listened and shared fresh ideas and innovative solutions to the issues they were facing.

Exhibit Hall (ABOVE) SCUCE attendees had the opportunity to visit with more than 135 vendors, including 49 new vendors, at this year’s exhibit hall. It gave attendees a chance to inquire about numerous products and services they could take back to their credit unions and all in one place. (LEFT) The League’s service corporation LEVERAGE was front and center at this year’s exhibit hall. SIGNAL: Vol. 5, Issue 3

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Sessions (RIGHT) With more than 1,100 in attendees at this year’s SCUCE many sessions like this one were filled to capacity. (BELOW) The Disclosures, a duo consisting of credit union professions Christopher Morris and Chad Helminak, preform for attendees and tell the credit union story through music. (BELOW RIGHT) Patrick Adams, CEO, St. Louis Community Credit Union, does the math for attendees at his lending session – Status Kwo is Kwazy Talk.

Silent Auction

Silent auction bidders gather and wait to see if they have the winning bids at this year’s Silent Auction. There were several winners at the auction, however the biggest winners were LSCU FedPAC and the Children’s Miracle Network who will benefit from the more than $20,000 raised at the event.

With more than 140 items at this year’s Silent Auction there was a lot for attendees to choose from.

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INDUSTRY

Keep Your Branch Relevant as Account Holder Service Expectations Change By Ron Jennings, executive vice president, JMFA Just about everywhere you look these days, headlines and studies highlight how advanced technology is changing the way that account holders interact with their financial institution. And while the use of online and digital banking services is steadily increasing, personal interaction at the branch level continues to be a valuable component of excellent service delivery for your account holders. According to recent studies, some consumers still prefer to purchase banking products in-person versus online, and rely on branch offices for getting answers to questions and resolving issues related to their accounts. But as competition for transactions increases, banks and credit unions are faced with the challenge of whether to maintain robust brick and mortar facilities that provide valuable and in-demand services to meet account holder needs or to install smart kiosks in certain underserved market areas, or both. Determining whether or not you have the right strategy in place can be timeconsuming, but it is essential for the longterm stability of your financial institution. Evaluating branch profitability and effectiveness Considering that the most common alternative to visiting a branch facility is conducting business on a computer or smartphone, it is essential to determine how to make sure your branch is a valuable resource in your market or service area. There are several factors to consider, including:

Do you have the right number of branches in the right locations to serve account holders? ■■ Should you build a new branch or put in smart kiosks in underserved areas? ■■ Do your delivery methods fit your market demographics? ■■ Are your staff members the right fit for your branch – adequately trained to sell and cross-sell products and services, and to provide support to your account holders? A diagnostic review of your existing branch(es) can provide a data-driven evaluation of your business volume, traffic patterns, and the type of transactions handled on a daily basis. The results, along with an analysis of net operating costs of ■■

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SIGNAL: Vol. 5, Issue 3

your overall institution, will determine the profitability of your existing structure, as well as what changes might be the most beneficial to maintaining a successful, competitive organization. Do you have the right staff and technology? The effectiveness of branch personnel in providing solutions to account holder questions and problems can have a tremendous impact on maintaining longterm member relationships. Do your account holders have access to universal tellers who can help facilitate all of their needs – from opening a new account to discussing a loan or resolving an error on a transaction? Or is your lobby set up in silos where they must

Creating a formula for success Account holders have more options for conducting their financial transactions than ever before. Capturing their business for the long-term requires providing a convenient facility that combines the right amount of technology with motivated, highly skilled staff that can provide the added personal support that sets your bank or credit union apart from the competition. If coming into your branch provides a positive experience where your account holders’ needs are met, they are more likely to be satisfied with the products and services offered, and more inclined to continue their relationship with your financial institution.

wait for different employees to handle their business concerns separately? On a typical day is there a line in the drive-through or at the ATM while the lobby is empty? As the market you serve continues to incorporate technology into every aspect of their lives, it is imperative to provide access to services 24/7 with mobile and digital devices, as well as through integrated services, such as intelligent ATM machines. Incorporating intelligent ATMs can be an incremental step in transforming your bank

Are resources needed to improve service quality? A staffing study can help to determine if you have the right people with the right expertise in the right jobs. Additional tools, such as on-site visits and secret shops, can uncover any areas where service can be improved or where additional training can lead to a more attractive environment. Information gathered during these unbiased observations can also determine what resources might be required to make necessary changes, how much this will cost, and how these changes will affect staffing before any plans for either adding staff or potential downsizing are put into place.

or credit union to offer some of the hightech conveniences your account holders find valuable. By providing access to interactive ATMs in your lobby, members have the option of completing nearly any transaction without going through a teller line or interacting with branch personnel. Interactive ATMs – some enhanced with video technology – can provide a variety of teller services at the branch or remote locations, giving your account holders expanded access to personal financial services, at their convenience. Plus, integrating such self-service technology into your service delivery options can enable your bank or credit union to: ■■ Expand your footprint without the expense of additional facilities ■■ Reduce teller transaction costs and improve productivity ■■ Improve staff scheduling and teller management ■■ Increase sales opportunities ■■ Improve service quality and account holder satisfaction According to a 2013 study by FMSI Teller Line, the average number of lobby transactions per branch has fallen 45 percent since 1992, because financial institutions have done such a good job of pushing consumers out the door with such options as ATMs, ACH, digital banking, and remote deposit capture opportunities. In addition to creating unproductive staff time, this has resulted in a 124 percent increase in branch labor cost per transaction.

Incorporating intelligent ATMs can be an incremental step in transforming your bank or credit union to offer some of the high-tech conveniences your account holders find valuable. SIGNAL: Vol. 5, Issue 3

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“We’re obsessed with providing GREAT MEMBER SERVICE.” After 30 years of partnering with credit unions for mortgage loans, we know something about their philosophy of superior service. Not only do we offer a long-tenured team of experts and a wide range of programs, we retain servicing on 99% of the loans we make with no out-sourcing to third parties. You won’t lose control of your loan and your members won’t be cross-sold by competing financial institutions. And that means a better experience all around, from application until long after closing.

‘At your service. On your side’ isn’t just a slogan. It’s CU Members’ commitment to delivering a higher level of service to your members.

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Go Higher. Rocky growth. Compliance cliffs. Steep risks. You don’t have to make the ascent toward your credit union’s goals alone. At Doeren Mayhew, our highly specialized Financial Institutions Group has helped more than 200 institutions like yours ﬁnd opportunities to drive growth – from climbing toward enterprise risk management, to overcoming steep compliance challenges, to harnessing technology to stay relevant on new delivery systems. Simply put, we know the ropes. So whether your vision is to achieve new heights, or you need a rescue mission, you can always work in tandem with us. Call 954.928.3340 to start the climb.

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LEVERAGE

LEVERAGE Gives Credit Unions Unique Opportunity to Provide Identity Theft Protection Services to Members through Member Security Center By Keith Hopkins, vice president, Product Support, LEVERAGE

In today’s digital world, identity theft continues to be a growing issue. For the fourteenth consecutive year, identity theft has topped the list for Federal Trade Commission consumer complaints and is the fastest growing crime in the United States. In Javelin Strategy & Research’s recent Identity Fraud Report, the number of identity fraud victims jumped to 13.1 million in 2013—the second highest level since 2006. That’s one victim of identity fraud every two seconds! Not to mention, identity theft is timely and costly for members. The total cost of identity fraud for consumers in 2013 was $18 billion. Now more than ever, credit union members are in need of identity theft protection. However, there is an ongoing disconnect

in the market between members’ needs for identity protection services and what they are willing to pay. In Javelin’s 2013 Identity Protection Services Scorecard report, 29 percent of consumers indicated that the service was too expensive, and roughly 20 percent discontinued their service so they would not have to pay to continue a subscription. Credit unions in LEVERAGE’s network now have a unique opportunity to offer this service as a new membership benefit at no cost to the credit union. This new offering, Member Security Center, enables credit unions to add value to current membership benefits and differentiate from other financial institutions. LEVERAGE credit unions’ unique opportunity to bring identity protection products to market is further solidified in the fact that financial institutions are the number one place consumers look to purchase

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this type of service. Eighty-two percent of consumers said they would be likely to buy identity theft services from their bank or credit union in a recent Javelin report. Traditionally, big banks have been some of the most prevalent providers of identity theft protection services. In the past few years, however, the Consumer Financial Protection Bureau (CFPB) has imposed game-changing sanctions and fines on entities that marketed non-compliant offerings. The recent CFPB crack down has caused big financial institutions to shy away from offering these services – leaving a void in the market. The door is now wide open for credit unions to

offer the identity theft services that members are looking for in a CFPB compliant way. Additionally, offering identity theft protection services can positively impact retention rates, serve as an incentive for new acquisitions, and even enable credit unions to drive desired member behavior. For example, a credit union may offer identity protection services to its members as an incentive to enroll in paperless billing. Incidentally, current paperless adoption rates in our industry are as low as 15 percent and the number one reason consumers cite for not going paperless is that there is no incentive to do so. Incentivizing this behavior could save costs by increasing paperless adoption rates while also creating additional value and member loyalty. This cost saving could even offset the cost of adding identity theft protection services to your product portfolio. Identity theft protection is a fundamental need, and credit unions have a real and significant opportunity to integrate this popular product into a member benefits program. At LEVERAGE, we are committed to ongoing improvements of our services and the success of the credit union industry. We’ve partnered with CSID, the leading provider of global identity protection and fraud detection technologies, to enhance our product offerings and enable you to offer identity theft protection services to your members. Coverage can be offered to members through Member Security Center’s three tiers of service – Basic, Gold and Platinum. Depending on the tier of service a member chooses, the following identity monitoring elements are available: Credit Services including credit file authentication, single bureau credit report, and 1-bureau score.

Upcoming LEVERAGE Strategic Purchasing Events Credit unions have more leverage through collaborative strategic purchasing events, that allow collective contract negotiation, saving your credit union, regardless of asset size, significant time and money. For the past six years, credit unions have collectively saved more than $2.5M using LEVERAGE ePurchasing services.

Upcoming Events: October: Janitorial Services November: Armored Car December: ATM Maintenance

For more information or to take part in one of these ePurchasing events, contact your LEVERAGE Business Development Consultant or at consult@myLEVERAGE.com.

24/7 ID Cyber Watch Monitoring screens thousands of websites and millions of data points, alerting registered members if their personal information is found being bought or sold online. Court/Criminal Report tracks municipal court systems and alerts members in real time if a criminal act is committed using their name. Sex Offender Report provides a report of all registered sex offenders living within a defined radius of a member’s zip code, and alerts the member when a new sex offender is added. It also notifies members if a sex offender fraudulently registers using his or her identity elements. Change of Address Report monitors if a member’s mail has been redirected through the U.S. Postal Service. Social Security Trace Report provides members with a report of all names and aliases associated with their Social Security number and notifies the member if a new one is added.

Pay Day Loan Monitoring alerts members if a payday loan has been opened using an element of their identity. Full Service Restoration reduces the time and effort a member endures in the event that their identity is stolen by using a certified identity theft risk management specialist. Lost Wallet assists members in quickly and effectively terminating and re-ordering wallet contents. No pre-registration of wallet contents is necessary. Insurance covers the costs associated with identity restoration for up to $1 million with $0 deductible. For more information about Member Security Center and how to start offering this program to your members, contact a LEVERAGE business development consultant at consult@myleverage.com or visit the Member Security Center website at www.MemberSecurityCenter.com.

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LEVERAGE

Understanding Your Insurance Program Options By Stephen Arnold, vice president, TruStage, a brand of CUNA Mutual Group

Auto and home insurance programs are a proven way for credit unions to increase products per member, build non-interest income, and help members protect their investments in their home or vehicle. But deciding to make the coverage available is just the first step. Equally—if not more—important is deciding how to structure the program. CUNA Mutual Group recently worked with MarshBerry Inc., a provider of consulting services in the financial services industry, to learn more about the most common insurance delivery models used by credit unions and the pros and cons of each. Here’s what we learned.

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INSURANCE DELIVERY MODELS* Build or Acquire In this model, a credit union will either build an insurance business from the ground up or acquire an existing agency. Pros ■■ Control of the process and outcomes ■■ Full ownership of customers ■■ Strong relationships with members enhance the chances of success Cons ■■ Start-up phase can be long and expensive: A successful launch requires your credit union to learn the industry and cover an array of operational, legal, and compliance expenses.

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■■ ■■

Difficult to scale Limited experience or resources to invest in mass marketing: Does your credit union have the expertise to develop effective marketing tools and the budget to afford them?

Joint Venture In this model, the credit union forms a joint venture with an outside party. Each usually owns a percentage of the business and the annual profits are split accordingly. Pros ■■ The outside partner provides/oversees management and production talent: The credit union doesn’t need to staff the program. ■■ Direct monetary incentives for the partners ■■ Avoids complications with licensing, training, and carrier appointments: Partner will handle these issues. Cons ■■ Lack of control over strategic direction ■■ Profit potential may be quite small ■■ Lack of control over customer experience: And members may be confused over who “owns” the relationship, especially if the partnership ends.

Outsource In the final model, the outsourced specialist is responsible for every aspect of the program. Pros ■■ Low cost of entry: There is often no investment on the part of the credit union. ■■ Direct monetary incentives: No payback period, income flow can begin at the point of the first sale. ■■ Can be used in tandem with other distribution models: Even if a credit union has their own agency, they can still opt to use an outsourced program to ensure they meet the needs of customers who won’t be served by their agency or might prefer to buy through online/call center channels. Cons ■■ Partner has primary control of the program’s strategic direction ■■ Lack of control over customer experience: And members may be confused over who “owns” the relationship, especially if the partnership ends. ■■ Channel availability may vary by state

Other Considerations Although these pros and cons are a good starting point, your credit union will also need to weigh a variety of other factors when determining which insurance model is the best fit for you. These include: ■■ Assets ■■ Membership size ■■ Locations ■■ Staff experience ■■ Operational readiness ■■ How insurance aligns with your credit union culture ■■ Whether available model options meet local consumers’ channel preferences—e.g., if most consumers prefer to research insurance online, does your preferred model allow for this?

Why 4,000+ credit unions choose to outsource their program through the TruStage Insurance Agency— the insurance agency built exclusively for credit union members. After you’ve considered the pros and cons listed above, we highly recommend taking a closer look at making TruStage insurance available to your members. More than 4,000 credit unions across the country have already discovered the key reasons why the TruStage Insurance Agency can get results that are proven, predictable, and immediate: ■■ Multi-media marketing—TruStage uses a mix of media to create awareness, including traditional methods, such as direct mail and referrals, and new ones such as social media, emails, and web ads. ■■ Multi-channel access—Members research and buy using the channels they prefer, including call center, online options, and through a local agent. Multi-channel access is a unique capability that sets the TruStage Insurance Agency apart from other outsourced distribution options. ■■ Trusted national carriers —Including Liberty Mutual Insurance and Esurance. Ready to learn more about the benefits of an outsourced program? Contact your CUNA Mutual Group sales team at 800.356.2644, or visit www.cunamutual.com/auto. Stephen Arnold is a vice president at TruStage, a brand of CUNA Mutual Group. Contact him at 608.665.8320, or at Stephen.arnold@ cunamutual.com. *Source: MarshBerry Review of Credit Union Insurance Agency Models, 2013

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