Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

CU System Archive

CU System

Digital FCU Registers More Than 100,000 Members For RDC

 Permanent link
MARLBOROUGH, Mass. (9/6/13)--Bolstered by a tech savvy membership and a hands-on education strategy, Digital CU has enlisted more than a quarter of its  membership in remote deposit capture.
 
Introduced in March 2008, online deposit helps members to remotely deposit checks via an Internet-connected PC, and through iPhones, Android phones, and corresponding tablets. Since then, DCU has handled more than $1 billion dollars through these very popular, self-service channels. In the process, the credit union has accomplished many of its original goals, including greater member convenience, reduced member attrition, an expanded reach for members who do not live near existing DCU branches, and reduced processing costs compared with more costly deposit channels such as shared branching and lockbox operations, said Julie Moran, DCU vice president of support services.
 
"Because we were one of the first financial institutions in the country that enabled members to deposit a check from their homes or business, we had to provide a lot of education on how to use the service," Moran said. But, because the service was so easy to use, members quickly grasped and embraced using it." 
 
An in-branch campaign with demonstrations of the RDC technology helped convince members of the convenience of the technology, Moran said. That effort continues today. Branch personnel are equipped with iPads, and they will demonstrate the service each time a member joins, as well as provide demonstrations to existing members who utilize the branch to deposit checks.
 
"A large portion of our membership is not close to a branch," Moran added. "Shared branching is pretty popular with them. This gave them a fast, easy way to make deposits."
 
While a good portion of DCU's membership base is located within New England, the credit union has members in all 50 states. Members who relocate outside the area are able to maintain their banking relationship because of DCU's strong online presence, and the ability to use online deposit.
 
DCU has also seen lower infrastructure costs for supporting lockbox operations for what was previously a very active deposit by mail operation, Moran said. In 2010, online deposit transaction volume surpassed mailroom volume for the first time, and the gap has continued to widen ever since, she added.
 
Also, DCU's members have become less reliant on shared branching to make deposits. Because online deposit is a relatively less expensive service than other deposit methods, the credit union has been able to redirect the costs normally associated with processing deposits. "This is a tangible cost savings," said Moran, "and we have been able to redeploy the resources across tens of thousands of these transactions for further service improvements for our members."

CU System Brief(2)

 Permanent link
HONOLULU (9/6/13)--Farouk Wang, long-time board member of Hawaii FCU, has died at the age of 70, the credit union said. Wang had served on the credit union's board of directors for more than 30 years, including a term as board chair and serving most recently as treasurer. He also helped shape the path of all credit unions in Hawaii as the chair of the Hawaii Credit Union League (HCUL) and a  director of the CUNA Mutual Group. He is survived by his wife, Noreen, their son, Shareef, daughters, Aisha and Jamilah (husband, Ronald) and two grandchildren, Jasmin and Ronin ...

Five Star CU Agrees To Buy Bank

 Permanent link
DOTHAN, Ala. and CAMILLA, Ga. (9/6/13)--Five Star CU, Dothan, Ala.,  has signed an agreement to  purchase substantially all of the assets and assume deposits and other liabilities of Flint River National Bank, Camilla, Ga.. The acquisition is subject to regulatory approvals and pending shareholder approval of FRNB.
 
Under the terms of the agreement, FSCU will purchase all loans, investments, real estate, accrued interest receivables, and other banking-related assets of FRNB, with an estimated value of roughly $21 million, after a discount to the loan portfolio agreed to by the parties) and will assume all deposits, and accrued interest payable of about $21 million. It will continue to operate its new credit union branch at FRNB's current location.
 
"We welcome FRNB's customers and employees to the FSCU family and look forward to integrating ourselves into these additional communities in southwest Georgia," said Five Star CU president/CEO Bob Steensma.
 
"Unsuspecting" former Flint River National Bank customers are likely to be pleasantly surprised to discover the benefits of being a credit unions members, said Credit Union National Association Chief Economist Bill Hampel.
 
Five Star CU's purchase of FRNB is the fifth credit union acquisition of a bank since 2011.  Municipal Employees CU of Baltimore announced in April it has agreed to buy the $61 million asset Advance Bank, also of Baltimore (News Now April 5).The National Credit Union Administration approved New Berlin, Wis.-based Landmark CU's request to purchase and assume Hartford Savings Bank last month (News Now March 18).
 
GFA FCU, Gardner, Mass., acquired Monadnock Community Bank in December (News Now Dec. 12). United FCU, based in St. Joseph, Mich., purchased Griffith (Ind.) Savings Bank in December 2011 (News Now Dec. 15, 2011).

Belvoir FCU Celebrates Military Servicemembers

 Permanent link
WOODBRIDGE, Va. (9/6/13)--Belvoir FCU, Woodbridge, Va., recently hosted its Eighth Annual Celebrate Fort Belvoir to give back to the military, their families, and the surrounding community.
 
Click to view larger image Belvoir FCU recently hosted the Eighth Annual Celebrate Fort Belvoir to give back to the military, their families and the surrounding community. (Photo provided by Belvoir FCU)
The event welcomed thousands of military families, Fort Belvoir residents and community members to a day of family fun, entertainment, free food, and showcased more than 40 local vendors.
 
"We are honored to be celebrating our base and partnership with Fort Belvoir with Belvoir Federal's largest annual event. It is our duty to serve our members just as they have served our country," said Patty Kimmel, Belvoir FCU CEO.
 
Patrons enjoyed two bounce houses, a rock wall, two face painters, a balloon artist, more than five local restaurant and bakery samplings, music from radio station WMZQ, a visit from former Washington Redskins player Derrick Dockery, and local vendors.
 
Throughout the event, patrons were able to enter to win prizes donated by event sponsors. There were 32 prizes awarded to attendees which totaled over $2,000 in value. Prizes included restaurant gift cards, golfing, free nights at hotels, retail gift cards, movie tickets, car wash certificates and event tickets.
 
Such events can foster service excellence while raising awareness about the value of credit unions. Fostering service excellences and raising awareness, along with removing barriers, are the components of the Unite for Good campaign launched by the Credit Union National Association and state leagues to work toward the vision of Americans choosing credit unions as their best financial partners. Use the links for more information.

Nevada CU's Small-Business Workshop Helps Startups, Existing Businesses

 Permanent link
RENO, Nevada (9/6/13)--Great Basin FCU in Reno, Nev., recently hosted a free Small-Business Workshop at its main branch to help area business owners as the economy recovers from the recession. Those business owners are seeking new opportunities to help their businesses grow and thrive.
 
Click to view larger image Marcy and Emily (from left)--a mother-daughter team from Reno looking to start their own business--meet with Great Basin FCU Chief Operating Officer Jennifer Denoo and Small Business Administration  Reno Branch Manager David Leonard. (Photo provided by Great Basin CU)
The $126 million asset credit union said it was heartened by the overwhelming interest from members and the community to attend the workshop. Nearly 30 business owners and budding entrepreneurs were in attendance. Speakers included Jennifer Denoo, chief operations officer at Great Basin in charge of the business loan program, as well as David Leonard from the Small Business Administration (SBA) of Northern Nevada.
 
Leonard discussed the various SBA loan types and special programs available to business owners. "Many folks are not aware of the incredible counseling and outreach centers available right here in our area," he explained. "From SCORE [The SCORE Association "Counselors to America's Small Business" is a nonprofit association comprised of 13,000-plus volunteer business counselors throughout the U.S. and its territories], to the Nevada Small business Development Center, to special programs for veterans, there really is a lot of assistance out there available to help our local businesses succeed."
 
Several attendees said they were excited to learn about the specialty programs they qualify for. "I had no idea that I qualified for several categories to which I can apply," said one attendee.
 
"I wasn't aware of the HUB Zones prior to the workshop. I'm also glad to know my credit union offers SBA loans," another said.
 
"So many of our own members came to learn about the vast amount of resources available to them and their businesses," Denoo said. "We really want them to know we are here to be their partner in business. They don't have to figure this all out on their own. Big or small, established or just in the planning phase--we can help them navigate and succeed."
 
The Credit Union National Association and credit unions are pressing Congress to increase credit unions' member business lending cap to 27.5% of assets from 12.25%. Doing so would open up more opportunity to offer MBLs, inject $13 billion in loans into the economy and create as many as 140,000 new jobs, with no cost to taxpayers, CUNA said.

First Missouri CU Gives Away $4K In Gasoline

 Permanent link
ST. LOUIS (9/6/13)--First Missouri CU in St. Louis had an early morning gift for customers at the Petro Mart in south St. Louis County on Aug. 28. The credit union gave away $4,000 worth of gasoline to customers, with employees of the credit union pumping gas and chatting with drivers about products and services offered by the credit union.

The first 200 vehicles that came to the station received cards worth $20 in free gas. The giveaway is an outreach effort by the $54 million asset credit union to educate consumers about the benefits of credit unions. "We want to educate possible members that banking locally benefits the community and account holders," Jana Wolfe, marketing director of First Missouri CU, told the Missouri Credit Union Association (The Missouri difference Sept. 4).

"Credit unions are not-for-profit financial cooperatives, owned by their members," said Don Cohenour, president/CEO of the Missouri Credit Union Association. "This means credit unions can offer better rates on checking accounts and loans, in addition to providing non-traditional benefits to the local community--like a gas giveaway promotion. Credit unions truly are consumer focused and are a great asset to the local community."

Credit union growth is up in recent years, with outreach efforts in place the help spread the word about credit unions and the better rates offered to consumers, said the league.

The First Missouri gas giveaway promotion was included in an article highlighting credit union outreach efforts in the St. Louis Post-Dispatch.

To read the article, use the link.

Such events can foster service excellence while raising awareness about the value of credit unions. Fostering service excellences and raising awareness, along with removing barriers, are the components of the Unite for Good campaign launched by the Credit Union National Association and state leagues to work toward the vision of Americans choosing credit unions as their best financial partners. Use the links for more information.

New Mexico CUs Show Good Member, Loan Growth

 Permanent link
ALBUQUERQUE, N.M. (9/6/13)--New Mexico credit unions saw increases in loans and membership in 2012, according to figures from the Credit Union National Association.
 
Credit union loans outstanding jumped 7.2%, totaling $4.9 billion last year--a gain from $4.6 billion in 2011 (Albuquerque Business Frist Online Aug. 27).
 
Credit union membership statewide expanded to 710,600 from 692,000 in 2011, per CUNA statistics.
 
Also, New Mexico's credit union assets rose to nearly $8 billion last year from $7.4 billion the prior year.
 
The rate of delinquencies decreased last year down to 0.84% from 0.92%, as loans and assets grew.
 
In a related matter, credit union membership growth nationally is moving three times faster than U.S. population growth, according to the Credit Union National Association's monthly sample of credit unions for July. That report also reflects a continuation of strong, overall first-half-of-the-year results (News Now Sept. 4).

Total memberships expanded rapidly in July--increasing by 0.4% in the month and pushing them over the 98 million mark, Mike Schenk, CUNA vice president of economics and statistics, told News Now. To see the full article, use the link.