Around the States: Recent News Stories

Nov. 22, 2024 News Stories

Why Do Banking Deserts Exist? How Can Credit Unions Fix Them?

Andrew Lepczyk, CreditUnions.com

Understanding what constitutes a banking desert can help credit unions determine branching and outreach strategies for underserved communities.

The adoption of online and app-based banking has resulted in less foot traffic and a reduced branch network for many financial institutions.

What Is A Bank Desert? Any census tract without a branch within two miles for an urban area, five miles in the suburbs, and 10 miles for a rural community.

According to the Federal Reserve Bank of Atlanta, the rate of bank branch closures has doubled since 2020. According to a different Federal Reserve study, the rate of closures is faster for institutions with $10 billion and more in assets. Community banks, however, have increased their footprint, and the credit union industry has held relatively flat, with a slight decline. The negative impact on communities abandoned by mainstream banking has become a significant issue in American financial policy.

Where Are Banking Deserts?
According to the Federal Reserve Bank of Atlanta, 66% of bank deserts are located in suburban areas, 20% in urban areas, and 14% in rural areas. Banking deserts are growing the fastest in suburban and urban areas, with branches falling 6% in suburban areas and 6.1% in urban areas compared to 4.2% in rural areas.

Banking deserts tend to fall along stark demographic lines. A full 46.4% of census tracts in majority American Indian or Alaska Native areas are banking deserts. And since 2017, the lion’s share of branch closings have occurred in nonwhite urban neighborhoods. Further, banking deserts are correlated with communities that have more elderly people and people with disabilities. Read more

In NY, Suffolk Credit Union Donates $10,000 to “Give Vets a Smile Day”

New York Credit Union Association

New York Minute: Suffolk Credit Union donation Suffolk Credit Union has shown its commitment to supporting veterans by donating $10,000 to Catholic Health St. Charles Hospital’s “Give Vets a Smile Day.” This program aims to provide essential dental care to underserved veterans who may not qualify for VA dental benefits. By partnering with healthcare providers like Catholic Health St. Charles Hospital, Suffolk Credit Union is helping to ensure that veterans have access to the oral health care they need.

This initiative aligns with the American Dental Association’s goal of promoting oral health equity for all. By supporting programs like “Give Vets a Smile Day,” Suffolk Credit Union is making a positive impact on the lives of veterans and helping to address a critical healthcare need.

New App for Marylanders Enables Businesses to Check mDLs, Digital ID

Joel R. McConvey, BioMetric Update

State shows long-term commitment to mDL adoption with new collaborations

Maryland continues to push the envelope on mobile driver’s license (mDL) adoption in the U.S., announcing this week the launch of a new free app that enables businesses to accept mDLs and digital IDs for in-person age verification.

A release from the Maryland Department of Transportation Motor Vehicle Administration (MVA) says the Mobile ID Check by MD app is self-contained and requires no additional hardware to enable secure digital identity checks with a mobile phone. It allows for the acceptance of any state-issued Mobile ID or ID card.

The Mobile ID Check by MD app lets users share minimal necessary data for age verification, and supports mDLs that are compliant with the ISO/IEC 18013-5 standard. It is available for download on the Apple App Store and from Google Play. Read more

Arizona Solar Panel Contractor Allegedly Defrauds Credit Unions & Homeowners

Peter Strozniak, Credit Union Times

Daniel Ridlinghafer is accused of stealing more than $690,000 from Tucson Old Pueblo CU, Nuvision CU and 25 individuals.

A solar panel installation contractor may face a jury trial in March for stealing more than $690,000 from two credit unions and at least 25 Arizona homeowners, according to federal court filings in U.S. District Court in Tucson. Daniel Jarrett Ridlinghafer, 37, of Marana, Ariz., was indicted earlier this year on 11 felony counts of bank fraud, wire fraud and mail fraud.

Federal prosecutors said Ridlinghafer, who owned a solar installation company, Tucson Solar Pros, allegedly used his business to defraud the $211 million Tucson Old Pueblo Credit Union (TOPCU) and the $3.4 billion Nuvision Credit Union in Huntington, Calif., and 25 homeowners. Read more

NACUSO’s Ronaldo Hardy Reimagines the Organization’s Transformation

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Ronaldo Hardy, President/CEO at NACUSO, joined us in the Studio Lounge to discuss Transformation Thursday (T2) events — one of which occurs at 2024 VentureTech. Ronaldo also shared how he is transforming NACUSO Network into the now Reimagine Conference happening in spring 2025 in Las Vegas.

Check it out and let us know your thoughts. And be sure to watch more of our VentureTech episodes on the interview archive page — and please support conference hosts at Curql and CSS and sponsor Eltropy.

Nov. 15, 2024 News Stories

State Financial Data Protections Lacking, CFPB Report Says

Melina Druga, Financial Regulation News

Privacy protections for financial information in many states lags behind safeguards in other sectors of the economy, according a recent Consumer Financial Protection Bureau (CFPB) report.

The report examines federal and state-level privacy protections for consumers’ financial data and whether consumer financial data is sufficiently protected. Between January 2018 and July 2024, 18 states passed laws giving consumers greater control over and access to their data, and reduced the collection of unneeded data. The laws included exemptions regarding federal regulations for financial data and financial products and services, meaning consumers do not have privacy rights to protect the information collected and/or shared by these exempted institutions.

States generally have authority to go beyond the federal rules.

“Consumers should have meaningful choice and an expectation of privacy about how their financial data is used, but large companies are increasingly harvesting and monetizing this sensitive data in mysterious ways,” CFPB Director Rohit Chopra said. “Given the exemptions in state law when it comes to this personal data, consumers lack fundamental protections for their financial privacy.”

States should ensure citizens are protected in instances where federal law currently has gaps or may be ineffective, the CFPB said. The report also found existing protections for financial data have limits.

High-Performing Credit Unions All Share This One Trait — And It’s Critical to Loan Growth

Corrin Maier, TruStage/Financial Brand

New research reveals a widening gap between credit unions leading in loan growth and their peers, driven largely by their adoption of digital integration capabilities.

This technological edge enables them to embed lending opportunities directly into consumers’ purchase journeys, meeting borrowers at their moment of need rather than waiting for them to seek out credit. The data suggests that mastering digital integration — while maintaining the agility to adapt quickly to market changes — will be crucial for credit unions’ loan growth in 2025.

As consumer expectations shift, they no longer want to interrupt their buying experience to search for a loan. Instead, they expect to be offered credit at the precise moment they need it.

Credit unions are also facing mounting pressure from other directions. In addition to evolving consumer expectations, quickly developing technological advancements, and intensifying competition from big tech companies threaten credit unions in 2025.

The landscape is further complicated by market forces and regulatory pressures putting downward pressure on non-sufficient funds (NSF) fees and interchange income, while liquidity challenges dampen loan growth and drive up the cost of funds. It was the crux of a recent TruStage study, which examines the strategic choices of high-performing credit unions reveals valuable insights into how industry leaders are navigating these challenges while maintaining strong growth trajectories. Read more

Detroit to Accept Crypto Payments with PayPal’s Aid

Wesley Grant, Payments Journal

Next year, Detroit will become the largest U.S. city to accept crypto payments for taxes and fees.

This feat will be accomplished with the assistance of PayPal, which will handle the crypto payments and convert them into U.S. dollars. Detroit will not hold any digital assets, as all conversions will take place before funds are received by the city.

“They are trying to be innovative, and accepting a variety of payments should make it easier for citizens to pay taxes and fees,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “However, by receiving all payments in dollars, the excitement ends there. If at the federal level there are strategic bitcoin or other cryptocurrency reserve plans, it will be interesting to see if cities like Detroit will follow suit.”

An Invitation to Technologists
In a phone interview with the Detroit Free Press, Detroit’s Treasurer, Nikhil Patel said that the city was concerned about the volatility of crypto, which is why Detroit decided to convert all payments immediately. Despite those apprehensions, the city is forging ahead with its crypto ambitions, a movement that has been spearheaded by its mayor. Read more

Teeing Up for Tomorrow: TruMark Financial Cares Foundation’s Golf Classic Raises Over $58,000 for Financial Education Resources and Economic Empowerment

On October 21, 2024, TruMark Financial Cares Foundation’s 9th Annual Golf Classic brought together 115 golfers at the Talamore Country Club in Ambler, PA, for a day of golf, camaraderie, and philanthropy.

The event successfully raised over $58,000 to support financial education programs in local schools, reinforcing TruMark Financial Cares Foundation’s commitment to positive change by promoting financial education and economic empowerment and assisting members of the community in reaching their financial well-being.

In addition to 18 holes of scramble-style tournament play, golfers participated in various skill competitions, including putting contest, closest-to-the-pin, and longest drive for both women and men. The tournament also featured an exciting hole-in-one competition with a chance to win $10,000. Participants connected with colleagues, enjoyed delicious food, and placed bids on an assortment of silent auction items. Read more

Nov. 8, 2024 News Stories

A Strategic Framework for Board Members When Considering Mergers

Peter Myers & David Ritter, CU Times

Developing a merger posture in order to evaluate opportunities confidently and in line with your long-term vision.

Increasingly, discussions at industry directors’ conferences are gravitating towards the topic of mergers. Board members are curious about how their counterparts at other cooperatives are looking at mergers. The drastically changing competitive landscape has some boards doing a double take of their business model and wondering what it will take for their credit union to thrive, not just survive.

According to the NCUA, 130 credit union mergers have been scheduled for member votes in 2024. ALM First’s role in some of the like sized credit union mergers this year has provided us with insights into how some boards are opting to proactively accelerate their strategic position.

Making the situation even more complex, the rate of CEO succession is not slowing down. Our team works with boards years in advance to strategically navigate this conversation, increase succession options, and run through scenarios.

One scenario we are seeing more frequently is prospective CEO candidates offering to be another cooperative’s next CEO and bring their current credit union with them. Reacting to this conversation can create avoidable tension, gum up the CEO succession process, and test the patience of well-qualified candidates while the board drafts a, sometimes rushed, response. In this scenario, boards often end up back at square one. Read more

How Credit Unions Can Help Members with Economic Affordability Issues

Tim Blochowiak, CUSO Magazine/CU Insight

In today’s difficult economic landscape, Americans are grappling with increasing affordability challenges. The dual pressures of inflation and high prices on essential goods and services are eroding consumer spending power and making it harder for individuals to manage their finances effectively.

Affordability is an issue across the board from cars to cheeseburgers. For instance, the president of McDonald’s recently revealed that the average price of a Big Mac meal today is up 27% from 2019. The price for a 10-piece McNuggets meal is up 28% over the same period, and the price of medium french fries increased 44%.

A significant amount of financial strain is felt in the automotive sector. Like many consumers, credit union members are holding onto their vehicles longer due to high vehicle costs and interest rates. However, as vehicles age, the likelihood of needing costly repairs to keep them road-ready increases. According to S&P Global Mobility, the average vehicle on the road is now a record 12.6 years old, meaning many drivers face the possibility of expensive repairs as their cars age.

This scenario underscores the critical need for credit unions to offer added services, such as vehicle protection plans, to help members navigate these affordability issues. Read more

In Connecticut, State Issues Flood-Relief Parameters

Paul Hughes, Citizen News

The state Department of Banking has issued guidance to state-chartered banks and credit unions on providing relief to individuals and businesses affected by devastating 1,000-year flash flooding in August.

Gov. Ned Lamont and Banking Commissioner Jorge Perez also joined CEOs and executives of major banks and credit unions from across Connecticut at a news conference in Seymour to announce partnerships between state government and the financial services industry to provide relief and critical information to individuals and businesses affected by the severe rains and flooding in Fairfield County, Litchfield County, and New Haven County on Aug. 18 and 19.

“With natural disasters increasing in frequency and severity, the partnership between government and the financial services industry has never been more important,” said Tom Mongellow, president and CEO of the Connecticut Bankers Association.

The guidance the Department of Banking has issued urges banks and credit unions to work with borrowers consistent with safe and sound banking practices and providing them with the necessary regulatory framework to do so. Read more

Maryland Labor Department Expands Cybersecurity for Financial Institutions

Southern Maryland Chronicle

The Maryland Department of Labor’s Office of Financial Regulation has introduced a new cybersecurity initiative using SecurityScorecard, a monitoring service designed to enhance the security of financial institutions across the state.

This deployment, announced today, aims to strengthen Maryland’s financial institutions’ defenses against cyber threats and bolster the Department’s overarching mission to protect consumer interests.

“Guarding against cyberthreats is a critical part of safeguarding Maryland’s financial networks,” stated Portia Wu, Maryland Department of Labor Secretary. “These cybersecurity monitoring services enable the Office of Financial Regulation to deploy modern tools to supervise financial institutions and ensure Marylanders can carry out their financial transactions safely and securely.”

The Office of Financial Regulation will use SecurityScorecard to maintain a continuous, real-time watch over the cybersecurity landscape for state-regulated banks, credit unions, and other financial service providers. With the service’s insights, the Office will assess cyber vulnerabilities, monitor cybersecurity improvements, and collaborate with financial institutions to address identified risks. These efforts represent a progressive step toward more resilient financial networks in Maryland. Read more

Nov. 1, 2024 News Stories

Illinois Credit Union League Celebrates Record-Breaking CU Kind Day 2024

The Illinois Credit Union League (ICUL) is thrilled to announce another successful CU Kind Day®, its signature initiative dedicated to spreading kindness throughout the state. Held on October 14, the event saw an outstanding number of participants, solidifying its place as a cornerstone of credit union community engagement.

A Commitment to Giving Back
This year, 80 Illinois credit unions and partners joined forces with ICUL, demonstrating the unwavering commitment of the credit union movement to giving back. Over 900 dedicated volunteers generously donated their time, logging an impressive 5,400+ hours to support their local communities. Their efforts resulted in a record-breaking $112,000+ worth of goods and donations distributed among 183 community organizations across Illinois.

Kindness in Action
The spirit of CU Kind Day manifested in countless acts of generosity. Volunteers participated in a variety of activities, including:

Monetary donations to support vital programs and services.
Food and clothing drives to assist families in need.
Volunteer time at local shelters, food banks, and community centers.
Donating school supplies to ensure students have the resources they need to succeed.
Delivering care packages to brighten the day of those facing hardship. Read more

FBI Nabs Suspect After String of CU Robberies in Alaska

By Peter Strozniak, CU Times

Feds are expected to release the name of the suspect and the charges at a later date.

A male suspect who allegedly robbed three credit unions in Alaska over three weeks is in custody, according to the FBI field officer in Anchorage. FBI spokesperson Chloe Martin said on Wednesday additional information about the suspect and his federal court arraignment date is being withheld at this time, but will be publicly released at a later date.

On Sept. 23 at approximately 11:45 a.m., the suspect allegedly robbed the $1.4 billion Credit Union 1’s midtown branch in Anchorage. After the robbery, he fled the area on a dark-colored bicycle. On Oct. 7 at approximately 10:15 a.m., the suspect allegedly robbed the $11.3 billion Global Credit Union’s Hartzell Road branch in Anchorage. After the robbery, he drove away in a stolen vehicle.

And on Oct. 16 at approximately 12:30 p.m., the suspect allegedly robbed the Global Credit Union Abbott Road branch in Anchorage and fled on foot. In each robbery, the suspect presented a note demanding money to a credit union employee and stated he had a weapon, according to the FBI. Read more

Summit Credit Union Contributes $130,000 to Small Credit Unions and Women’s Leadership

Summit Credit Union is proud to announce its continued dedication to supporting small credit unions and fostering leadership in the industry by committing another $100,000 to the Hamilton Fund for underwriting its Professional Development Grant Program.

This program is designed to support credit unions with $100 million or less in assets by providing opportunities for staff and volunteers to enhance their skills and grow their organizations. Additionally, Summit Credit Union is contributing $30,000 ($10,000 bi-annually) to support the INSPIRE Conference, empowering female leaders in the credit union space in the southeast.

Support for this grant comes from Summit Credit Union and the Hamilton Fund, a legacy of Sis and Jim Hamilton. Sis Hamilton, former CEO of Summit Credit Union for over 60 years and a board member for 70, was a trailblazer in the credit union movement, leaving a lasting impact on the industry and the small credit unions she worked to support throughout her career. Read more

NASCUS Honors Cherie Freed with the Prestigious 2024 Pierre Jay Award at the 59th Annual State System Summit

The National Association of State Credit Union Supervisors (NASCUS) is thrilled to announce that Cherie Freed has been named the distinguished 2024 Pierre Jay Award recipient. The honor was bestowed during NASCUS’s 59th Annual State System Summit (S3), an event that convenes industry leaders to discuss and advance the state-chartered credit union system.

The Pierre Jay Award, named after Pierre Jay, the first Commissioner of Banks in Massachusetts and the inaugural credit union regulator in the United States, is the highest accolade NASCUS offers. It recognizes individuals who have demonstrated outstanding service, commitment, and leadership in supporting NASCUS and the state-chartered credit union system. Read more

IDology’s Joel Sequeira Shares ‘9th Annual Global Fraud Report’ Findings and Best Practices

Mike Lawson, CUbroadcast

Joel Sequeira, Director of Product at GBG IDology, stopped by the show to share findings from their “9th Annual Global Fraud Report” — as well as best practices for credit unions to help protect themselves from today’s growing fraudulent activity.

Joe shared a quick overview of this latest fraud report, as well as a couple of key factors credit unions are facing in the world of trying to meet the consumer demand for frictionless onboarding — while, at the same time, ensuring a secure and protected experience.

He also talked about high level opportunities credit unions have by taking a seamless onboarding approach for new members and how frictionless identity verification can help with that process.

Joel provided some key stats found in the fraud report affecting all businesses, and in particular any affecting financial service organizations like credit unions and banks in their services to members and customers.

Oct. 18, 2024 News Stories

Who Benefits from The First Tech-Digital Merger?

Ken McCarthy, Tyfone

In the aftermath of a mega-merger announcement that rocked the credit union world, industry insiders are weighing in on what it could mean not only for the involved companies but for the industry at large.

On Sept. 30, the $12 billion-asset Digital Federal Credit Union and the $16.7 billion-asset First Tech Federal Credit Union revealed plans to combine in a deal that is believed to be the largest credit union merger ever announced. The new entity – set to use the First Tech name – will emerge as a $28.7 billion credit union serving nearly two million members with more than 50 branches in eight states.

It would be the sixth largest credit union in the U.S. So what does it mean for the organizations? Is it good or bad for the credit union industry? Depends who you ask.

Geoff Bacino, a credit union consultant and former National Credit Union Administration board member, told Tyfone his first takeaway is that mergers appear to be picking up after a slowdown during the COVID-19 pandemic. He’s right. Read more

Federal and State Financial Regulatory Agencies Issue Interagency Statement on Supervisory Practices Regarding Financial Institutions Affected by Hurricane Milton

The Federal Deposit Insurance Corporation, the Federal Reserve Board, the Florida Office of Financial Regulation, the National Credit Union Administration, and the Office of the Comptroller of the Currency, collectively the agencies, recognize the serious impact of Hurricane Milton on the customers and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision. The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities. A complete list of the current disaster areas can be found at https://www.fema.gov/disaster/declarations. Read more

Seven Ways to Gain a Wider Reach with a Narrow Field of Membership

Sharon Simpson, CreditUnions.com

Top-Level Takeaways

Serving employees of a nationwide organization is one way to offer customized financial solutions on a grand scale.
Collaborating with employers and organizations to enhance the member experience and focus on distinct member needs helps deepen relationships within niche fields.

As the financial landscape evolves, many credit unions face a pivotal decision: maintain a closed field of membership — limited to a specific group like employees of a company or members in an organization — or adopt a community charter and open their doors to serve a broader population within a larger geographic area. Preserve the tight-knit, member-centric culture that has long defined credit unions? Or embrace growth opportunities to meet the diverse needs of entire communities? The choice, however, isn’t so diametric. Read more

SECU Foundation Donates $3.75 Million in Disaster Relief to Aid Western North Carolina Communities

In response to the catastrophic flooding, landslides, and widespread destruction in Western North Carolina from Hurricane Helene, the SECU Foundation Board of Directors approved a $3.75 million disaster relief package to assist communities affected. Funding will be awarded to five organizations that have operations underway to immediately provide water, food, supplies, shelter, and other emergency services to those in need. Read more

CUES Celebrates Excellence: Announcing 2024 Award Winners and Hall of Fame Inductees

CUES is proud to unveil this year’s roster of CUES Award winners, celebrating one exceptional credit union and a select group of visionary industry leaders. Each year, these prestigious awards applaud the industry’s highest achievers, inspiring future leaders to shape the future of the credit union movement. The following honorees distinguished themselves in five distinct categories, exemplifying excellence and embodying the highest standards of the credit union movement. Read more

Oct. 11, 2024 News Stories

Rhode Island Marijuana Regulators Approaching Final Rules on Social Equity Business Licensing

Christopher Shea, Rhode Island Current

The Rhode Island Cannabis Control Commission may finally be ready as early as the end of the month to decide how it will define who qualifies as a “social equity applicant” for one of a half dozen cannabis retail licenses.

The agenda for the three-member panel’s meeting Friday afternoon called for a potential vote on the regulations meant to clarify who would qualify as a social equity applicant, generally meant for those who were adversely affected by the war on drugs.

But no vote happened, which led to some whispered grumbling from the nearly dozen cannabis industry workers in the audience.

Teachers Federal Credit Union Sets Goal to Raise $150,000 for the American Cancer Society Making Strides Against Breast Cancer

Teachers Federal Credit Union, one of the largest credit unions in the United States with more than $9.8 billion in assets and over 460,000 members nationwide, is proud to return for its third year as the Presenting Sponsor of American Cancer Society Making Strides Against Breast Cancer Long Island. With a corporate pledge of $75,000, the credit union is kicking off an organizational-wide fundraising effort to help the American Cancer Society support breast cancer survivors, thrivers, and caregivers nationwide. Read more

Fifth Washington-Based Community Bank of 2024 Sells Itself to a Credit Union

tyfone

HAPO Community Credit Union | Banks, Credit Unions & Mortgages The $632 million-asset Community First Bank struck a deal with $2.4 billion-asset HAPO Community Credit Union. HAPO Community Credit Union plans to acquire $632 million-asset Community First Bank in Kennewick, Washington. Financial terms of the deal were not disclosed in a press release Tuesday.

The deal is the 18th announced this year in which a credit union is buying a bank. It is also the fifth of those transactions that involves a community bank based in Washington. The $2.4 billion-asset HAPO said the deal will allow it to offer an enriched suite of financial products and services while reinforcing its dedication to the Tri Cities and surrounding areas. Read more

VyStar Credit Union Hiring Across Florida and Georgia

VyStar Credit Union is actively hiring to fill more than 100 full-time Contact Center and branch positions in markets across Florida and Georgia to continue providing a best-in-class experience for its more than 985,000 members.

VyStar offers all employees a robust benefits package, which includes paid time off, medical/dental insurance and 401(k) with company match. Other benefits include parental/family care leave, child adoption assistance, student loan payoff stipends, upfront tuition assistance and paid time off for volunteering. Competitive compensation will be set based on position and level of experience. Read more

Oct. 4, 2024 News Stories

How to Spot a Hurricane-Related Scam

Erin Jones, Verify

Scammers often prey on vulnerable people in need of help after a hurricane. Here are tips on how to avoid falling victim to a scam during hurricane season.

Hurricanes can cause widespread power outages and displace hundreds or thousands of people. People may be desperate for assistance as they recover from the storm’s damage. Scammers often prey on vulnerable people in need of help after a hurricane batters their area, as well as others looking to help the storm’s victims. Here are VERIFIED tips on how to spot a scam during hurricane season.

WHAT WE FOUND: Common hurricane-related scams and tactics

In the aftermath of a hurricane, scammers have been known to pose as officials who work for government disaster assistance agencies, like FEMA, insurance companies, or building contractors, all of our sources say. They also pretend to be representatives of charities seeking donations for disaster relief or people asking for help on crowdfunding websites, such as GoFundMe.

Many cybercriminals use email or text messages for phishing attacks or use spoofing techniques to make the call appear to be official, according to the Federal Communications Commission (FCC). Spoofing is when a caller deliberately falsifies the information transmitted to the caller ID display to disguise their identity. They also target people through social media posts and sometimes create phony websites to prey on people in need of help.

“Fraudulent emails and social media messages—often containing malicious links or attachments—are common after major natural disasters,” the Cybersecurity and Infrastructure Security Agency (CISA) warns on its website. Read more

Related Reading: Federal and State Financial Regulatory Agencies Issue Interagency Statement on Supervisory Practices Regarding Financial Institutions Affected by Hurricane Helene
Related Reading: CU Provides Warm Meals to Those Devastated by Helene

Previewing the NASCUS State System Summit in Colorado Springs

The National Association of State Credit Union Supervisors (NASCUS) will convene its 59th annual meeting, the State System Summit (S3), from October 21-23, 2024, at the Broadmoor in Colorado Springs, CO. This premier event offers a distinctive opportunity for state regulators and credit union system stakeholders to engage with one another over a multi-day platform.

The NASCUS Summit is a unique platform for dialogue, innovative problem-solving, and collaboration across the credit union landscape. It’s a chance for all of us to come together and shape the future of our industry. Read more

GreenState Teams Up with Local Brewery to Make a Greener Iowa

Big Grove Brewery and GreenState Credit Union have announced the release of the fourth annual A Greener State of Mind, a citrus-forward pale ale. The collaboration between the brewery and credit union aims to support environmental efforts across Iowa. Proceeds from the beer will go to the Iowa division of the Izaak Walton League, a nonprofit focused on conserving and promoting the sustainable use of the state’s natural resources.

The funding will aid the League’s citizen scientist programs, including the purchase of water testing kits for the Save Our Streams initiative, which trains volunteers to monitor local waterways and gather water quality data.

Corporate Central Proudly Sponsors Tunnel to Towers Run & Walk Event, Honoring Heroes

Corporate Central is honored to have been the main sponsor of a recent Tunnel to Towers Run & Walk event, demonstrating commitment to supporting the heroes who have served our nation and our communities. The event, which took place on Saturday, August 3 in Muskego, WI, saw participants from all walks of life come together to honor the sacrifices made by first responders and military personnel in the line of duty.

The Tunnel to Towers Foundation, inspired by the heroism of New York firefighter Stephen Siller who lost his life in the towers on September 11, 2001, provides mortgage-free homes to Gold Star and fallen first responder families, builds smart homes for catastrophically injured veterans and first responders, and supports the families of these heroes with various forms of financial assistance. By sponsoring this event, Corporate Central is proud to contribute to these noble causes and reinforce its dedication to community support and social responsibility. Read more

Sept. 27, 2024 News Stories

Virginia Bureau of Financial Institutions Receives NASCUS Reaccreditation

The National Association of State Credit Union Supervisors (NASCUS) is proud to announce that the Virginia State Corporation Commission, Bureau of Financial Institutions (BFI) has earned Reaccreditation following a series of in-depth reviews and assessments by a panel of veteran state supervisors.

“Our department is committed to best practices and top-tier service. Accreditation ensures we meet the highest national standards, promoting regulatory consistency and validating our competency and transparency,” commented Virginia BFI Commissioner Joe Face. “I’m proud of our team for achieving NASCUS accreditation, confirming the quality of our work, and strengthening the public trust.”

The process of Accreditation entails a thorough evaluation and continuous monitoring carried out by the NASCUS Performance Standards Committee (PSC), consisting of experienced regulators from accredited state agencies.

“This peer-reviewed program highlights the accomplishments of state credit union regulators in efficiently executing regulatory and supervisory programs,” said NASCUS President and CEO Brian Knight. “Achieving NASCUS Accreditation demonstrates the outstanding capabilities of state regulatory agencies in meeting the highest standards of regulatory excellence. Additionally, the accreditation process can uncover opportunities for improvements in statutes, regulations, or supervision, further strengthening both the agency and the state’s charter.” Read more

California Bans Medical Bills from Credit Reports, Limits Bank Overdraft Fees With New Consumer Protection Laws

Cecilio Padilla, CBS News

California Gov. Gavin Newsom signed a package of legislation into law Tuesday aimed at protecting consumers, his office announced. In total, 19 bills were signed by Newsom. His office said in a statement that the legislation addresses “issues that have put financial strain on Californians while setting new standards for transparency and accountability across industries.”

Medical debt barred from credit reports
Senate Bill 1061 by Sen. Monique Limón (D-Santa Barbara) will bar the inclusion of most medical bills on a credit report. Under the law, medical debt listed on a credit report will be prohibited from being considered a negative factor in decisions to extend credit. “No Californian should be unable to secure housing, a loan, or even a job because they accessed necessary medical care,” Limón said in a statement. Limón’s bill was supported by California Attorney General Rob Bonta, who praised the new law on Tuesday. “When someone is scared and in pain, the last thing they should think about is whether seeking care will take away their ability to buy a house or land a job,” Bonta said in a statement.

Canceling subscriptions, auto-renewals made easier
Assembly Bill 2863 by Pilar Schiavo’s (D-Chatsworth) amends California’s Automatic Renewal Law for subscription services, requiring businesses that use auto-renewals to make it just as easy to cancel a subscription as it was to sign up for — a “Click to Cancel” option, as described by Schiavo. Read more

UFCU’s Mobile Branch Drives Financial Sense In Underserved Communities

Savana Morie, CreditUnions.com

The Texas credit union is extending financial services and resources to geographical areas with limited or no banking presence.

Top-Level Takeaways

UFCU’s mobile branch is breaking down barriers for underserved communities by providing convenient access to essential banking services, financial education, and trusted support right where people need it.
The credit union builds trust by offering bilingual services, fostering personal connections, and partnering with local organizations to understand and meet the financial needs of residents.

Banking looks a lot different for Americans today than it did a decade or two ago. Unfortunately, even with evolving technologies that offer accessibility and convenience, millions of people remain under or unbanked.

In 2023, 5% of census tracts in Texas were classified as banking deserts, with another 5% at risk of becoming a desert if a branch were to close. This includes several regions surrounding the state capitol, home of University Federal Credit Union. Read more

American Bankers Association Invests In ‘The Bank of The Future’

Kim Riley, Financial Regulation News

The American Bankers Association (ABA) on Tuesday announced investments in Monit, a small business insight platform, and Posh, which provides artificial intelligence-based virtual agents designed for financial institutions.

The two new venture investments highlight ABA’s ongoing support for businesses and technologies that promise to help banks succeed, the association said, noting that its board of directors approved the investments.

“ABA is committed to supporting the bank of the future through responsible innovation, and part of that commitment includes strategic investments to benefit both our members and the banking industry as a whole,” said ABA President and CEO Rob Nichols. “Monit and Posh represent tangible solutions that align with where the market is heading and are already used by several of our members.”

Needham, Mass.-based Monit was started through Eastern Bank’s technology incubator. It is a two-sided platform that offers small businesses and bankers insight into small business clients’ financial condition and needs, according to the ABA. Read more

Sept. 20, 2024 News Stories

Oldest Credit Union in U.S. Keeps Battling Big Banks, Scamsters

Chana Schoenberger, American Banker

People in New Hampshire’s largest city have the same financial worries they’ve faced for decades: buying a car, saving for a house, paying for their kids’ education. Local credit union CEO Ken Senus, who runs St. Mary’s Bank, has different concerns.

St. Mary’s already knows how to serve members. What it’s trying to do now is fight for their attention and business, while fending off the scams that plague credit unions and banks across the country. As banks get bigger and flex their marketing budgets, credit unions are a harder sell, even in the community where St. Mary’s, the oldest credit union in the U.S., started long enough ago that the term “credit union” wasn’t yet in use.

A major structural challenge credit unions face is that they’re promising a better level of service, when younger people, whom they need to grow their membership ranks, prefer do-it-yourself banking, said Mary Beth Sullivan, managing partner at Capital Performance Group, a financial-institution management consulting firm based in Washington, D.C. Read more

Vermont Dept. of Financial Regulation Seeks Comment on Enhancing Virtual Currency Kiosk Regulatory Oversight to Reduce Their Use in Illicit Activities

The Department of Financial Regulation seeks input from individuals, businesses, nonprofits and others specifically regarding their concerns, interests, insights and experiences with virtual currency kiosks.

Background
On or before January 15, 2025, the Commissioner of Financial Regulation is required to report to the House Committee on Commerce and Economic Development and the Senate Committee on Finance on whether the requirements of 8 V.S.A. § 2577(g) regarding virtual currency kiosks, coupled with relevant federal requirements, are sufficient to protect customers in Vermont from fraudulent activity. Read more

Better Rates and Service Mean Extra Costs for Credit Unions

Trace Jerrett, CreditUnions.com

The average bank in the United States holds $5.2 billion in assets, compared with $503.0 million for the average credit union. With such great scale, banks have the efficiency and flexibility to reach more customers; they also have opportunities to diversify revenue streams in ways that credit unions cannot, often leading to greater net income generation.

However, credit unions do have a powerful advantage over banks: their mission of helping people over profit. In difficult economic times, it is especially important for credit unions to deliver this message to those who need to hear it. In good times, most Americans see banks and credit unions as synonymous providers of financial services. It is in times of struggle that credit unions truly earn their charter. Read more

NASCUS Announces 2024-25 Board and Advisory Council Election Results

In August, the National Association of State Credit Union Supervisors (NASCUS) conducted its annual elections for its Regulator Board and Credit Union Advisory Council. Members of the NASCUS Regulator Board are elected by NASCUS regulator members, comprised of all state credit union regulatory agencies across the nation. Read more

VIDEO: Why Does It Appear ‘Easier’ to Merge Credit Unions Than to Launch One?

CU Broadcast

If you missed it live, Zest AI’s Denise Wymore and Your Credit Union Partner’s Tom Sakash joined us on the show to provide a CU De Novo Collective update — and asking: Why does it appear “easier” to merge credit unions than to launch one?

With more and more credit unions being merged but very few launched (145 lost to mergers to 4 launched in 2023), Tom and Denise are on a mission to make the process of launching new credit unions more efficient and attractive than ever. According to Tom, there are more than 60 new credit union proposals out there right now.

That said, they shared some hurdles de novo credit unions experience getting started but provided ideas on how to mitigate those challenges so more new credit unions can launch. Watch the video here

Sept. 13, 2024 News Stories

‘We’ve Only Just Begun’ NCUA Chairman Todd Harper Shares the Keys to a Successful Future

Todd Harper, NCUA/CU Times

The Federal Credit Union System turns 90, and NCUA’s Todd Harper shares four keys to CU success for the next 90 years.

Ninety years ago, President Franklin Delano Roosevelt signed the Federal Credit Union Act, establishing the federal system of credit unions and increasing access to affordable financial products and services for more Americans. Since then, the system has evolved considerably from one in which credit unions offered basic savings accounts, appliance loans, and short-term credit to one that provides long-term share certificates, money market accounts, auto loans, mortgages, credit cards, commercial lending, and private student loans.

So, as we look ahead to the next 90 years and what the credit union system can become, we should mind the lessons of the immortal lyrics of the Carpenters, “We’ve only just begun.”

Today’s credit union system is thriving, and we at the NCUA need to make it even stronger and more resilient. With the financial services marketplace ever evolving, the system must continue to innovate and focus on the needs of its members, especially those of modest means. Credit unions also need to embrace transparency, fairness, vigilance, and foresight to remain successful in the years ahead.

Transparency
Transparency is the sunshine that better protects credit union members and the system, feeds efficiency, saves time, and leads to better decision-making. When credit unions and their members have good data and information, they can make better decisions, benchmark, and set themselves up for success.

In the spirit of transparency, the NCUA is developing a proposed rule that would require federal credit unions to publicly disclose information about executive compensation. All federal credit union member-owners deserve to know what their credit union leadership is paid, just like what state-chartered credit unions provide to their members and public companies disclose to their shareholders about executive pay. In addition, the NCUA’s recent requirement that credit unions with more than $1 billion in assets report income from overdraft and non-sufficient funds fees on their Call Reports provides transparency into how credit unions operate and compare with their peers. Read more

Wisconsin DFI: State-Chartered Credit Unions Report Sound Second-Quarter Financial Performance

Wisconsin’s 107 state-chartered credit unions continue to exhibit sound financial performance as of June 30, 2024, according to data released today by the Wisconsin Department of Financial Institutions (DFI).

At the end of the second quarter, total assets for Wisconsin’s state-chartered credit unions rose to $65.7 billion. This is an increase of $1.6 billion since year-end 2023. Over the same time period, loans outstanding grew by $570 million, and shares and deposits rose $1.04 billion. This resulted in a decrease to the loan-to-share ratio from 92.40% at year-end 2023 to 91.69%.

In the six months ending on June 30, 2024:

Net worth to assets increased to 10.55%;
Delinquent loan to total loan ratio was 0.80%, an increase from the year-end ratio of 0.79%;
Net income was strong at over $210.5 million, 0.65% return on average assets; and
Growth ratios were all positive.

“The financial indicators for Wisconsin’s state-chartered credit unions through mid-year are strong with solid net worth, strong growth in assets, and marginal loan growth. Higher interest rates have slowed lending, but loan to share ratios continue to be strong,” said DFI Secretary Cheryll Olson-Collins. “Overall, Wisconsin’s state-chartered credit unions continue to be financially stable with a positive outlook, and they continue to provide the financial services needed by their members.”

To learn more, read the DFI’s Office of Credit Unions’ 2024 Mid-Year Financial Bulletin

Illinois & New Jersey Credit Unions Rethink Credit Card Rewards

How credit card reward programs drive business and loyalty at Alliant and Affinity credit unions.

Marc Rapport, CreditUnions.com

Top-Level Takeaways

Credit unions like Alliant and Affinity are leveraging straightforward, easy-to-use rewards programs that align with members’ needs, leading to deeper engagement and higher member satisfaction.
By minimizing costs and focusing on digital innovation, credit unions can offer competitive rewards without annual fees, even as they navigate regulatory pressures and a competitive market.

Credit card rewards programs are more popular than ever. According to a recent Ipsos Consumer Tracker survey, nearly three in four Americans have a credit card that offers rewards and two-thirds of those cardholders prefer to use their rewards-earning cards, primarily due to the points they accumulate, the May report found. Furthermore, 35% of cardholders believe they spend more because of the rewards, and 37% say they would reduce their credit card spending if these benefits disappeared.

The effect of rewards programs on spending is clear, but credit unions have some room to blaze their own trail when it comes to achieving — and sustaining — program success. Read more

In Michigan: What Makes One Credit Union a High Performer

Ray Birch, CU Today

ELGA Credit Union Mobile - Apps on Google Play One credit union ranked highly for performance and which has an eye-opening 1.89% ROAA, says its formula for success can survive even if some deep fee income cuts should lie ahead courtesy of the CFPB. As CUToday.info reported, the $1.529-billion ELGA Credit Union is ranked No. 1 on Forbes’ list of America’s BEST-IN-STATE Credit Unions for 2024.

ELGA EVP David Brandt told CUToday.info the award is largely based on the quality of financial advice, financial services fee structures, ease of navigating through the organization—digital and in-person—and the trust the credit union inspires.

“I think we won because we deliver a great experience to our members,” Brandt said, noting the survey covered primarily 2023. “In our measurements, we’re always trying to find out how we’re doing for our members. How can we do better? With over 5,000 surveys completed in 2023, we had a Net Promoter Score of 86.56.”

Bain & Company originated the Net Promoter Score, and any score over 50 is considered excellent and anything over 80 is considered world class. Read more

Sept. 6, 2024 News Stories

NYDFS Imposes $35 Million Fine on Nordea Bank for Alleged AML Failures Following Panama Papers Revelations

Kelly A. Lenahan-Pfahlert, Money Laundering News

On August 27, 2024, the New York State Department of Financial Services (“NYDFS”) announced a consent order involving a $35 million settlement with Nordea Bank Abp (“Nordea”) for alleged significant failures related to anti-money laundering (“AML”) compliance. Nordea, headquartered in Helsinki, Finland, operates globally, including through a licensed branch in New York, which has its own AML and transaction monitoring requirements.

The enforcement action, which followed revelations from the Panama Papers leak, found that Nordea allegedly failed to conduct proper due diligence on high-risk correspondent banking relationships and maintained inadequate AML controls. According to the NYDFS, the Panama Papers implicated Nordea in aiding clients in establishing offshore shell companies in order to facilitate illicit activities.

The consent order alleges that Nordea violated New York law by allowing compliance failures in its AML program and procedures to persist. Meanwhile, Danish officials recently charged Nordea with repeatedly violating Denmark’s anti-money laundering act between 2012 and 2015, thereby exposing Nordea, potentially, to extremely significant fines. As we will discuss, although the consent order implicates many different issues, the NYDFS enforcement action represents, in part, the latest chapter in the continued fall-out from the massive AML scandal involving Dankse Bank. The consent order also highlights, once again, the particular risks posed by correspondent banking relationships, on which we repeatedly have blogged (for example, here, here, and here). Read more

Credit Unions Rarely Engage in BaaS. North Bay is an Exception

Miriam Cross, American Banker

North Bay Credit Union is an outlier in the banking-as-a-service space.

The flurry of activity in BaaS is almost entirely restricted to community banks partnering with fintechs and other nonbanks to underpin their financial offerings. But the $121 million-asset North Bay is one of the few credit unions to participate as well, and one of the few to speak about it publicly.

“The vast majority don’t do it and legally, it’s challenging,” said Greg Mesack, senior vice president of advocacy at America’s Credit Unions, a credit union trade group.

The biggest hurdle for credit unions to overcome is the field of membership requirement, which dictates which subsets of the population can be a member of the credit union, based on their location, employer, association membership or other factors.

Beyond that, as not-for-profit institutions, this kind of fintech partnership is not typically considered to be part of the credit union ethos. It is also an expensive undertaking to get right, from building or buying the necessary technology, such as application programming interfaces or anti-money-laundering monitoring systems, to hiring staff that specialize in this niche. Read more

CU Tax Exemption, Acquisition of Banks Subject of CNBC Report

CU Today

Credit union acquisitions of banks, and more broadly, the CU tax exemption, were the subject of a segment on the CNBC program “Power Lunch.”

Introduced by host Brian Sullivan who said, “We begin with the intriguing story of the rise of the credit union,” before giving way to Business News Senior Banking and Finance Reporter Leslie Picker, who introduced the issue by saying, “There is this kind of under the radar evolution taking place… Credit unions were established about 150 years ago in rural America to create community based lending for those without traditional access to banking. Throughout the last century credit unions have operated as nonprofits exempt from most taxes. However, recently, they’ve scaled to the point where they are buying billions in assets from community banks, a record trend that’s become controversial. Critics say credit unions’ tax exempt status gives them an M&A advantage and their scale no longer justifies the $21 billion in annual taxpayer subsidies they enjoy.”

Critic of CUs Featured
The segment then turned to Scott Hodge, senior tax policy advisor with the Tax Foundation, who has been a frequent critic of the credit union tax exemption.

“There’s just something wrong with what are essentially nonprofit organizations buying taxpaying commercial and profit-making organizations,” said Hodge. “I think it’s time to reevaluate the tax exemption that the credit unions now have because they’re no longer these…membership-serving organizations. They’re growing and expanding and they’re essentially commercial banks masquerading as nonprofits.” Read more

Southeast Credit Union Trade Groups Announce Merger Plans

Tyfone

Not only are credit unions merging with increasing frequency, the leagues and associations that serve them are joining forces too.

In the most recent example, the League of Southeastern Credit Unions & Affiliates has announced its plans to combine with the Virginia Credit Union League.

In a press release Tuesday, the groups said the collaboration will create a more diverse and powerful network of state and federal lawmakers and regulators, increasing their ability to drive positive change.

If the deal is approved, the new organization would represent 386 credit unions and 31.5 million members across Virginia, Alabama, Georgia and Florida.

“The tried-and-tested advocacy process will continue to provide credit unions with clear control over state-level and local congressional delegation advocacy strategies. Together, the League and credit unions will deepen engagement and increase impact across the entire footprint,” the organizations said in a statement.

In terms of timing, the groups said only that the process is underway and that they will keep impacted credit unions apprised of key developments as the merger progresses. Read more

Aug. 29, 2024 News Stories

‘No Joy Below $10 Billion’ Leading to More Credit Union Tie Ups

Tyfone

A merger of equals recently announced in Florida could set the stage for more credit union M&A.

The current operating environment may be driving a growing number of credit unions to consider mergers. That may be especially true for institutions below $10 billion in assets, which don’t benefit from the economies of scale as larger credit unions do. “There is no joy below $10 billion,” a veteran M&A advisor told Tyfone. “I think you’re going to see more [M&A] because at every board meeting I’m doing they want to know about mergers,” he said.

Among the latest examples:

Launch Credit Union in Merritt Island, Florida, said it plans to merge with Community Credit Union of Florida in Rockledge. The deal is as close to a true merger of equals as possible, as both institutions have roughly $1.4 billion of assets. The transaction is expected to be finalized by the middle of 2025. The resulting credit union would have more than 143,000 members with 22 branches throughout Brevard and Volusia counties.

“Our combined resources and shared commitment enable us to offer enhanced products and services to our members while maintaining the high level of personalized service our members have come to expect,” said Joe Mirachi, Launch CU’s president and CEO, in a press release.

Mirachi will continue as the combined credit union’s president and CEO, and Laurie Cappelli, Community Credit Union’s chief executive, will move forward with her planned retirement and serve as a consultant as needed through the system integration. The M&A advisor said that in the past, credit unions wanted to discuss mergers but wouldn’t admit it. Now board members are talking more openly. Read more

Spotlighting DFI: How to Identify, Prevent and Report Financial Fraud

Charlie Clark is Washington State Department of Financial Institutions (DFI). They are launching an ad campaign to help us identify, prvent and report financial fraud. Financial fraud steals more than money — it robs hundreds of thousands of people of their hopes, dreams, and futures every year. With more than $10 billion in reported losses in 2023 alone, it’s time to take a stand against scams.

At the Washington State Department of Financial Institutions, we believe that education and awareness are the most powerful tools in preventing financial fraud. By learning to identify common scams and knowing what steps to take, you can prevent scammers from stealing money from you, your family, and your community.

Northwest FCU in Stadium Naming Rights Deal with NFL’s Commanders; Bankers Immediately Throw Flag, Urge Congress to Act

CU Today

Northwest Credit Union said it has entered into a multi-year naming rights deal for the home stadium of the NFL’s Washington Commanders, and the banking industry needed less time than the two minute warning to blast the sponsorship and tell Congress it’s another reason to revoke the CU tax exemption.

The team’s home, formerly known as FedEx Field, will now be known as Commanders Field at Northwest Stadium and marks the first credit union naming rights deal in NFL history. The naming rights to the stadium will cost $8 million annually, according to several reports. In 2023, the $4.55-billion Northwest FCU, which is based in Herndon, Va., became the Commanders’ Official Credit Union Partner. The new partnership vastly expands the credit union’s presence with the team.

Press Conference Scheduled
On Sept. 15th, the two organizations said they will officially kick off the extension and expansion of their existing partnership through a joint press conference at the stadium before the Commanders’ home opener. Read more

FBI, Sarasota Deputies Warn of Fraud Scheme Targeting Senior Citizens

Garrett Phillips, WFLA

A fraud scheme targeting senior citizens is on the rise in Sarasota County, the FBI and Sarasota County Sheriff’s Office warned in a joint statement Tuesday.

The scammers use Tech Support and Government Impersonation scams to identify victims, then instruct those victims to liquidate assets into cash and/or buy gold, silver, and other precious metals.

1 dead after train, pickup collide near Lakeland

The victims are then instructed to meet couriers in person to hand over their cash or metals for safeguarding in a protected account on their behalf. Officials say the victims never heard from the scammers again.

“We’ve had victims report losses in excess of $300,000,” FBI Tampa Field Office Special Agent in Charge Matthew Fodor said in a statement. “These criminals follow a well-rehearsed script and are skilled at pressure tactics. Your best defense is to hang up on the scammers, never click on suspicious links, and report to law enforcement immediately.” Read more

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