working together to build a stronger credit union system

Spring 2015
WORKING TOGETHER TO BUILD A STRONGER CREDIT UNION SYSTEM
COMPONENTS OF A HEALTHY
CREDIT UNION SYSTEM
ADVOCACY PLAN UPDATE
EENIE, MENY, MINY, MOE
CONSIDER A CUSO
page 3
page 8–9
page 13
EDITORIAL & REPORTS
From My Perspective by CUNA President/CEO Jim Nussle
THE CUNA/LEAGUE PARTNERSHIP: UNITY IS AS IMPORTANT AS EVER
COVER STORY
Components for a
Healthy CU System
page 3
Sharing Staff
Expertise
page 5
Working Together
to Support Community
Development
page 6–7
Advocacy Plan
page 8–9
Eeny, Meeny, Miny,
Moe...Have You
Considered a CUSO?
page 13
Credit Union
Service Stars
page 15
page
Cover Story. . . . . . . . . . . . . . . . . . 3
For Your Dues. . . . . . . . . . . . . . . 4,5
Community Development. . . . 6, 7
The Advocacy Plan. . . . . . . . . . . 8, 9
LSG Business Partners. . . . . . . . 10
Group Benefit Trust . . . . . . . . . . 11
Directors' Corner. . . . . . . . . . . . 12
KCCU Update . . . . . . . . . . . . . . . 13
Recognition. . . . . . . . . . . . . . . . 15
Network News
Publication Staff
Beth Satre
Editor and Design/Layout
KEEPS US FOCUSED ON SERVING THE BEST INTERESTS OF
OUR MEMBER CREDIT UNIONS.
Editorial Board
Tracie Kenyon, Circe Gleeson,
Alana Listoe, Renee Lyman
Donya Parrish, Karen Smith,
and Tracy Thornburg
2—NETWORK NEWS
From My Perspective, cont. on page 14
WEEKDAYS WITH BERNIE
BERNIE: What does the Credit Union System mean
to you?
~ In Each Issue ~
The strong CUNA/League
partnership played a critical role in maintaining a
strong support system and
advocacy voice for credit
Jim Nussle
unions during the finanToday we are working toward our shared vision that
cial crisis that swept through the country. It is
Americans choose credit unions as their best finana partnership built on trust and the fact that we
cial partner. We will reach that vision by placing at
can rely on each other to be our best. At the state
the top of our priorities work that reduces barriers to
and local level, CUNA and the leagues compleservice, raises awareness, and delivers service excelment each other to deliver effective advocacy and
lence to our membership. It is vital work at both the
service to credit unions. And that advocacy is
state and national levels.
best when it comes from a unified state
and national voice, whether with lawTHE PARTNERSHIP BETWEEN CUNA AND CREDIT UNION
makers, regulators, the media or any
LEAGUES IS THE LYNCHPIN THAT HOLDS US TOGETHER AND
other audience.
The partnership between CUNA and credit union
leagues is the lynchpin that holds us together and
keeps us focused on serving the best interests of our
member credit unions. It is more important today
than it has ever been.
TRACIE: The System is built around credit unions,
state leagues, and CUNA with great System partners
like CUNA Mutual Group, Filene Research Institute,
CO-OP Financial Services, World Council of Credit
Unions, The National Credit Union Foundation,
the many Corporate Credit Unions, the National
Federation of Community Credit Unions, and Credit
Union Leagues.
BERNIE: The past couple of years I’ve had the opportunity to travel with you to AACUL (American Association of Credit Union League) meetings and see
how the System works together. It’s been eye-opening.
TRACIE: The System has so many integrated parts,
and when we’re working together, I believe we’re
unstoppable.
BERNIE: Absolutely, when we take the perspectives
from individual credit union members to the state
and regional level, then connect at the national level,
we have a well-rounded viewpoint.
TRACIE: And, the advocacy support we provide from
grassroots to grasstops is the envy of other groups.
Tracie Kenyon
and MCUN
Board Chair
Bernie Neibauer
BERNIE: What’s next for the System?
TRACIE: As credit unions grow and evolve, so will the
System…
BERNIE: Credit unions are finding ways to collaborate.
TRACIE: Whether through consolidation or partnerships, credit unions are changing and that impacts
the System.
BERNIE: Some of the other entities within the System
are looking to collaborate.
TRACIE: You bet, just as we’re working with the Idaho
and Dakota credit unions to plan their education
and we partner with the Illinois credit unions for
card services.
BERNIE: The interdependence continues…
TRACIE: It’s inevitable, we’re a connected System!
COVER STORY
Components of a Healthy Credit Union System
by Alana Listoe, MCUN PR & Advocacy Director
Any healthy relationship requires effort from
both sides, and it’s no different when it comes to
the credit union system—there’s just a few more
organizations and personalities that need to work
together.
The pieces of the credit union system—CUNA,
WOCCU, CUNA Mutual Group, young professionals, credit unions, members, and credit union
leagues—play different roles and are dependent
on each other for support, expertise, and consistency. This issue of Network News aims to provide
a deeper understanding of those components
and how they work like pieces of a puzzle linking
together to create one big dynamic system.
CREDIT UNIONS ARE CENTRAL TO THE SYSTEM
Jack Lawson joined the credit union movement
in 1999 after working as a carpenter, researcher,
and legal assistant. That year he was a founder of
the Brooklyn Cooperative FCU and later was the
COO of Self-Help FCU in Oakland, Calif. Those
positions, he said, gave him experience and helped
him learn how to strengthen credit unions in
underserved communities. One strategy is finding
creative ways to get loans done. Since Fall 2013, he
has served as president and CEO of Missoula FCU,
which has 45,000 members and 140 employees
and, he says, is known to have strong commitments to financial strength, social responsibility,
and the environment.
NETWORK NEWS OVERVIEW
This year, Network News will highlight the ways
in which cooperation connects the credit union
system, gives it strength, and drives it forward.
Each of our three issues will take a look at how the
credit unions and various credit union organizations work together to
• benefit the System
• benefit communities, and
• benefit members.
Working together, we get amazing things done.
We can make a difference and truly be “People
Helping People.”
This issue addresses Working Together to Build a
Stronger Credit Union System. In it, we explore
how various elements of the credit union system
join forces and reinforce one another.
BELOW: Jack Lawson
(Missoula FCU) poses
outside at the 2015 GAC.
BOTTOM: Jill Tomalin
(CUNA) laughs during a
presentation.
to have impacts and a common
voice to let the world know we are
here to make a difference.”
Jill Tomalin, deputy chief of staff
and COO at CUNA, said the first
step is to ensure that those
within credit unions
Lawson believes credit unions are at the core of the
understand how they are
system. In today’s market—where consolidation
different. CUNA’s Memis rampant, complexity in regulations continues,
ber Activation Program
and growing compliance demands can often seem
(MAP) is a tool that can
daunting—he says it’s crucial to stay focused on
help advance the key
the credit union difference and the cooperative
issues that confront us tostructure.
day: data breaches, the tax
exemption, and
“WE MUST FIND THE RIGHT PLACES TO HAVE IMPACTS AND A risk-based capital
among them.
COMMON VOICE TO LET THE WORLD KNOW WE ARE HERE TO
MAKE A DIFFERENCE.”
– JACK LAWSON
PRESIDENT/CEO of MISSOULA FCU
“We must be willing to take risks to make a difference
in the world,” he said. “We must find the right places
“We’ve learned in developing this program
that members who receive advocacy outreach from their credit unions have a stronger bond with those institutions,” she said.
Healthy Credit Union System, cont. on page 14
NETWORK NEWS—3
FOR YOUR DUES
Your Network Staff
Capitol Shuttle
Tracie Kenyon
Traditionally, parking has been
next to impossible near the State
Capitol when the Legislature is
in session. Things are different
this year thanks to a new shuttle
service sponsored, in part, by
Montana’s credit unions.
President/CEO
[email protected]
406-324-7203
Kara Connors
Director of Administrative Services
[email protected]
406-324-7377
Alana Listoe
Director of PR & Advocacy
[email protected]
406-324-7465
Renee Lyman
Business Partnership Manager
[email protected]
406-324-7458
Carin McClain
Tax Program Manager
[email protected]
406-324-7459
Donya Parrish
VP–Dues Supported Services
[email protected]
406-324-7374
Beth Satre
Communications Manager
[email protected]
406-324-7457
Karen Smith
Executive Director, MCUCD
[email protected]
406-324-7376
When the idea was first proposed, Montana’s credit unions
were quick to jump on board
and answer the call for support. For the first time, residents
can park and catch a ride up
to Capitol Hill completely free.
And, the best part is, a Helena
Area Transit (HATS) bus runs
the loop every 10 or 15 minutes
every day the session is operating.
TOP: The Capitol Shuttle leaves its second stop, heading
toward another parking lot before looping back toward
the Capitol. LEFT: Helena resident Bruce Baumgart steps
on board with a smile.
The service has been
While the shuttle may seem like a small gesture, it
applauded. Bus drivers say there are more than
encourages public participation in the democratic
300 riders on any given day. Helena resident Bruce
process. Being able to easily park your car and hop
Baumgart is one of them and avails himself of the
on a shuttle that takes you directly to the Capitol
service two or three times a week.
makes it easier for people to testify at hearings,
watch floor sessions, and meet with their elected
“It’s an amazing service that saves me hours and hours
representatives.
and hours every week,” he said on a recent bus ride.
Ranel Smith
AVP–Education Services
[email protected]
406-324-7456
Tracy Thornburg
Director of Compliance Services
[email protected]
406-324-7455
4—NETWORK NEWS
AT THE CAPITOL …
TESTIFYING ON BEHALF OF CREDIT UNIONS
During the 64th Legislative Session credit unions
have been well-represented at the State Capitol
with Donya Parrish, MCUN VP of dues supported
services. TOP: Donya talks with Montana Banking
Commissioner Melanie Hall after a committee
hearing. MIDDLE: Donya delivers testimony to the
House Business and Labor Committee. BOTTOM:
Senator Dee Brown looks on as Tracie Kenyon
(MCUN) talks about credit unions at a Senate page
lunch hosted by MCUN.
FOR YOUR DUES
Sharing Staff Expertise
Just like credit unions find it necessary to partner
with other credit unions on occasion, leagues sometimes work together to provide services to their member credit unions. Such a partnership has been quietly
bearing fruit here in Montana and our neighboring
states since 2013.
Ranel Smith, AVP of education services for the
Montana Credit Union Network, has been planning
major education events for the Credit Union Association of the Dakotas (CUAD) for the past two years.
In fact, that partnership has gone so well, that the
Idaho Credit Union League asked Ranel to contract
with them starting this year.
STAFF EXPERTISE
After the first event Smith planned for CUAD in
June 2013, President/CEO Robbie Thompson sent an
email to Tracie Kenyon, his Montana counterpart,
saying “Ranel did an excellent job…. Certainly distance and unfamiliarity can make cooperation like
this more difficult than just ‘doing it yourself’ but
like many other cooperative ventures, the end result
can often be better.”
Since then, Smith has gone on to become the fifth
person in Montana to earn the Certified Meeting
Planner (CMP) designation. She’s also been getting a
lot of hands-on practice. This year, she’s responsible
for 14 events, including three annual conventions,
most of which will have between 150-250 attendees.
Her first event for the Idaho Credit Union League,
the Governmental Affairs Conference, drew rave reviews from President/CEO Kathy Thomson. Thomson called Smith “a skilled meeting planner,” saying
“She worked well with the hotel and convention center
staff and knew her way around a meeting of this sort.”
SHARING AND SAVING
The cooperation, Smith explains, is not just about
saving on staff costs. Having one person in charge of
the major meetings for Montana, Idaho, and the Dakota leagues makes it easier to negotiate with speakers and identify potential sponsors and vendors, who
might be interested in expanding their reach.
“Because there are a lot of similarities in our credit
unions and the people we serve, it means we can pool
resources and ideas
and save money,”
says Smith.
Speakers are often
willing to reduce
their fees if they
think they might
be hired for more
than one event. Not
only is that a good
deal for everyone,
notes Smith, but the
arrangement also
opens up a whole
new tier of presenters who might
otherwise be too
expensive.
Ranel Smith (far right) poses with Diane and David Reed, two of the
speakers she recruited to present at the 2013 Fall Forum in Billings.
“CERTAINLY DISTANCE AND UNFAMILIARITY CAN MAKE COOPERATION
LIKE THIS MORE DIFFICULT THAN JUST ‘DOING IT YOURSELF’ BUT LIKE
MANY OTHER COOPERATIVE VENTURES, THE END RESULT CAN OFTEN
BE BETTER. “
– ROBBIE THOMPSON, CUAD PRESIDENT/CEO
In her expanded role, Smith also meets many more
sponsors and vendors than she would working for
just one state. As a result she has encouraged a lot
of sponsors and vendors in the Dakotas to come to
Montana and vice versa.
PERSONAL CONNECTIONS
While planning meetings for three leagues keeps her
busier than she ever imagined, Smith is loving her
new responsibilities. Not only is she learning a lot,
she’s making contacts and connections that help her
plan even better events. Plus, she says, “It’s been a
total blast to meet and work closely with CUAD and
Idaho league staff.”
Clearly, this cooperative arrangement strengthens
the system while offering numerous benefits for the
Montana, Idaho, and Dakota credit union leagues.
Perhaps, CUAD’s Robbie Thompson put it best
when he wrote, it’s “a great example of cooperation
that I hope we can continue to build on and make
even stronger in the future.”
League Board
Bernie Neibauer
Chair
Tom Boos
Vice-Chair
Jeremy Presta
Secretary/Controller
Bob Bjelland
Director
Jim Kenyon
Director
Ed Stofko
Director
Leslie Womack
Director
NETWORK NEWS—5
COMMUNITY DEVELOPMENT
e
H
MONTANA CREDIT UNIONS AND THE FOUNDATION
Working Together to Support Community Development
For the past 12 years MCUCD
has been acting as the catalyst to implement programs
through Montana’s credit
unions that improve the social and economic well-being
of all Montanans. Our vision has been to
have Montana credit
unions provide the right
financial services to help
members become and stay
financially independent.
There are many ways
credit unions
can and do
help members
become and
stay financially
independent.
Not only are today’s members benefitting from the
programs being offered, but the efforts will have a
ripple effect for generations to come. Together, we
have played an integral role in breaking the cycle of
poverty that exists in so many Montana families.
PARTNERING WITH THE FOUNDATION
The successes we’ve seen are the result of multiple
collective efforts across the years. One partnership
in particular has been that between the National
Credit Union Foundation (the Foundation) and
MCUCD.
Similar to MCUCD, the Foundation believes that
all consumers should have the education, tools
and resources needed to achieve financial freedom.
Through Foundation grants and programs, credit
unions provide widespread financial education, create greater access to affordable financial services,
and empower more consumers to save, build assets,
and own homes.
WE’RE PROUD OF THE WORK THE FOUNDATION DOES TO LIFT UP
THE CREDIT UNION SYSTEM, THE EFFORTS MCUCD HAS PUT FORTH
TO SUPPORT OUR CREDIT UNIONS, AND THE WORK MONTANA’S
CREDIT UNIONS ARE DOING TO SUPPORT THEIR MEMBERS.
In 2013, MCUCD held
a Retirement Fair in
conjunction with the
MCUN Annual Convention.
TOP: Mark Lynch (The
Foundation) explained the
process to participants.
ABOVE: Deanna Brost took
the opportunity to double
check her plans. The timing
was perfect for her—she
retired in August 2014.
6—NETWORK NEWS
LEFT: Montana was one
of the first states to get
involved in the Foundation’s
REAL Solutions program. In
2007, MCUCD organized a
REAL Solutions orientation
session. Here, State Senator
(and long-time credit
union member) Mary
Caferro explains to credit
union representatives the
importance of combatting
predatory lending while
Nancy Pearce, our state’s
advisor, looks on.
COMMUNITY DEVELOPMENT
Whether it’s collaborating on projects, convening resources, igniting passion, honoring leaders, or making financial education meaningful, the Foundation represents credit unions at
the national level, kick starting their efforts to
strengthen the financial well-being of everyone
in their community. To help people achieve financial freedom, they work with credit unions,
state trade associations and foundations, government agencies, and other partners.
REAL SOLUTIONS TO FiCEP AND EXPERIENTIAL LEARNING
The collaborative efforts between the Foundation, MCUCD, and Montana’s credit unions
have been ongoing for the past ten years
through their REAL Solutions efforts. Initially
the REAL Solutions supported Montana’s
credit union work to combat predatory lending
and increase the awareness of small loans.
The work through the Foundation continues
today through a partnership on their Enhanced
FiCEP Financial Counseling program and
their experiential learning programs such as
the Retirement Fairs.
We’re proud of the work the Foundation does
to lift up the credit union system, the efforts
MCUCD has put forth to support our credit
unions, and the work Montana’s credit unions
are doing to support their members. Together,
we are making a difference.
THE CHARITABLE DONATION ACCOUNT
A New Way to Support MCUCD
The Charitable Donation Account (CDA) is a
hybrid investment which grants a federal credit
union expanded investment powers to fund charitable giving through investment returns rather than
operating income. This offers the potential for a
better earnings potential—for your credit union
and for MCUCD and the Foundation. All earnings
are split, with 49% going to your credit union and
the remaining 51% split between MCUCD and the
Foundation. Contact Karen Smith to learn more
about how your credit union can support MCUCD
through the CDA.
LEFT: In Fall 2014, a group
of FiCEP candidates listen
to John McEwen (Rocky
Mountain CU) discuss a
few tips and tricks that he’s
learned through his work
as a financial counselor.
John earned his FiCEP
certification through the
MCUCD program in 2013.
NETWORK NEWS—7
ADVOCACY PLAN
THE PHILOSOPHICAL LEG
CREDIT UNION DEVELOPMENT EDUCATION
For 33 years, the National Credit Union
Foundation’s Credit Union Development
“DE IS THE ONLY PROGRAM I AM AWARE OF THAT FOCUSES
Education (DE) Program has been providON MAKING THE BUSINESS CASE OF WHY COOPERATIVE
ing “critical lessons in cooperative principles,
FINANCIAL SERVICES MAKE SENSE... THE OLD ADAGE THAT
credit union philosophy, and international
development issues.” ‘PHILOSOPHY IS GOOD BUSINESS’ IS DEMONSTRATED TIME
AND AGAIN IN THIS INTENSIVE TRAINING.”
National Program Director
for CUDE Lois Kitsch (The
Foundation) and Gary
Singleton (CUNA Mutual
Group) talk at the 2015
Wegner Awards Dinner in
Washington, D.C. CUNA
Mutal Group has been a
primary sponsor, helping
sustain the DE program so
it could continue educating
and reinvigorating credit
union professionals in the
tenets and applications of
credit union philosophy.
8—NETWORK NEWS
The program started
in 1982 thanks to
a grant from the
United States Agency
for International Development and has persevered with
the support of credit unions,
credit union leagues, and
sponsors from within the
credit union movement. Currently, The Foundation holds
three, week-long DE Trainings each year. Each training
is limited to 45 participants
and is open to everyone from new employees who
need a credit union orientation to seasoned
executives who need to recharge.
Since its inception, more than
1,200 credit union advocates from
over 34 countries have graduated
from the training to become certified as Credit Union Development
Educators (CUDEs).
– DICK ENSWEILER, PRESIDENT CEO
CORNERSTONE CREDIT UNION LEAGUE
in credit union outreach, problem solving, technical
assistance, team building, and public presentations.
They realize that local issues are actually global, and
that credit unions grow stronger by working cooperatively. They return to their jobs with a new understanding of how to promote cooperative principles
and credit union values as distinct advantages in
today’s competitive financial services industry. And,
finally, DEs often return home “transformed”—more
passionate about and committed to their credit union
and the movement as a whole.
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RENEWED RELEVANCE
Linking credit unions’ past with the
present, DE brings new relevance to
the philosophy of “People Helping
People.” The primary focus is giving
attendees a better grasp of how credit
unions can “live” the credit union
philosophy and bring financial services to those that need them most,
whether by implementing development programs in their local communities or abroad.
BENEFITS OF THE DE PROGRAM
The benefits are myriad—for individual DEs, their credit unions, and the
movement. Graduates acquire skills
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ADVOCACY PLAN
THE PHILANTHROPIC LEG
CREDIT UNIONS FOR KIDS
Created in 1996, “Credit Unions for Kids” is the
brand under which America’s credit unions raise
funds for the 170 Children’s Miracle Network Hospitals (CMNH) in the United States and Canada.
Since then, all states have joined the effort in some
way—with credit unions, chapters, leagues, and
business partners working together to raise funds to
support the work in local hospitals.
Over the years, the Credit Unions for Kids program
has generated over $130 million for local hospitals,
making credit unions the third largest “corporate”
contributor to CMNH hospitals overall. The credit
union community has helped to fund breakthrough
research, numerous programs and services, and the
construction of new facilities.
Fundraising activities are varied. They range from
major events specific to a region (like the annual
Cherry Blossom Run), to online giving campaigns,
to participation in Miracle Jeans Day. Individual
credit unions sell paper icon and chocolate, and
Leagues and Associations hold fundraisers at their
events. Best of all, it’s not hard for local credit
unions to get involved. They can tailor their efforts
to their communities, their resources, and their
members’ interests.
THE POTENTIAL IS HUGE
As more credit unions get involved, even more money can be raised. In 2013 alone, Credit Union for
Kids activities raised $10.2 million. In 2014 the total
was nearly $11 million. Think of the huge difference
we could make if all 250,000 credit union employees
and 100 million plus members participate.
In 2014, Trico Community
FCU focused its charitable
efforts on Credit Unions
for Kids. Through a
combination of special
events, the “Shodair Care
Bear” in its lobby, and
special CU4Kids debit cards,
the credit union raised over
$12,300 for Shodair. Here
President/CEO Eddie Black
signs the “big check,” which
was presented to Shodair
representatives in January.
THE POLITICAL LEG
GOVERNMENT AFFAIRS CONFERENCE
Every year, the Credit Union National Association (CUNA) Government Affairs
Conference brings thousands of credit union professionals and volunteers from around
the United States to Washington, D.C. Attendees get the chance to network, learn about
the issues facing credit unions on the
federal level, and finally head to Capitol
Hill for visits with their state’s federal
delegations. Montana always sends a
nice contingency. This year, the group
met with Senator Daines and Tester and
Congressman Zinke’s staff. FROM FAR
LEFT TO RIGHT: Senator Daines listens to
a point Tracie Kenyon (MCUN) is making
while Al Vukasin (Bear Paw CU) looks
on. Montana’s “Crasher” Stephanie
Vredenburg (Park Side Financial CU)
poses below the GAC sign in the Expo Hall.
Jeff Adams (Horizon CU) in the Expo Hall.
Senator Tester and Tracie Kenyon (MCUN)
wait for the Senator to be called on stage
to speak to the general session in 2014.
NETWORK NEWS—9
LSG BUSINESS
PARTNERS
College Savings Bank
CO-OP Financial
Services
CSCU/FIS
CUAdvantage
CUNA Mutual Group
Douglas Wilson
MCUL Group
Benefit Trust
Harland Clarke
*
Invest in America
LSC
*
Member Driven
Technologies
PeeWee Penguin
*
business partners of
both LSG and CSS
CUNA STRATEGIC
SERVICES (CSS)
Look Beyond the Bottom Line a Message from CUNA Mutual Group
Soon, corporate earnings reports and other year-end
statistics for 2014 will begin flowing into the media,
where they will be parsed by journalists and industry analysts. CUNA Mutual Group’s numbers will
be among them, and the company expects excellent
2014 results.
In March 2014, the IRS reversed its ruling about
Unrelated Business Income Tax (UBIT), resulting in
millions of dollars in refunds to more than 200 state
credit unions. Hundreds of the company’s employees joined in the UBIT effort by contacting their
legislators.
That’s a good sign for the credit union industry as
a whole, but it’s more than that. It means CUNA
Mutual Group will continue to invest more effort,
expertise, and resources on behalf of all credit unions
and members, as the company does year after year.
The UBIT campaign isn’t unique. In December,
CUNA Mutual Group partnered with the National
Cooperative Bank to form a national Co-op Coalition to stand together in mutual support as Congress
embarks on tax reform.
Below is a look beyond the bottom line—beyond
products and services—at some of what CUNA Mutual Group does to support the credit union industry.
FUELING INNOVATION AND GROWTH
CUNA Mutual Group is a founding member of the
Filene Research Institute and supports The Cooperative Trust, a community of young credit union professionals. The company also sponsors its own research,
including the monthly Credit Union Trends Report.
LENDING A STRONG VOICE TO CREDIT UNIONS
Working alongside credit unions and other industry
partners, CUNA Mutual advocates for our industry
with legislators and regulators at the federal and state
levels. Whenever the credit union industry needs to
be heard in Washington or in state capitals, CUNA Mutual Group is there.
3SI Security Systems
Agility Recovery
CU Calendars
Diebold
GreenPath Debt
Solutions
Informa Research
Services
Intuit Financial
Services
LendKey
MoneyGram
Newtek, SBA
OfficeMax
OneID
Ongoing Operations
Passageways
SilverSky
TraceSecurity
Twenty Twenty
Analytics
Verafin
10—NETWORK NEWS
Jointly owned by CUNA
and the state credit union
leagues, CUNA Strategic
Services (CSS) provides
credit unions with access to high quality products, services and technologies. CSS alliance programs are designed to serve credit unions by
• CONTRIBUTING TO THEIR BOTTOM LINE through
increased operational efficiency or revenue
generation;
• ADDING TO THEIR PEACE OF MIND as they effectively meet regulatory standards and address
security concerns; and
• ENHANCING THEIR RELATIONSHIPS with services
designed to grow and retain membership.
In 2014, Montana’s credit unions saved more
than $142,000 by working with our alliance providers last year. Overall, America’s credit unions
saved $35 million. For more information on CSS,
go to www.cunastrategicservices.com.
INVESTING IN THE INDUSTRY’S CRITICAL SUPPORT SYSTEM
CUNA Mutual Group provides financial and
other support for a network of organizations—state
leagues, CUNA, the National Credit Union Foundation, WOCCU, and dozens more—that credit
unions use for critical services like training, leadership development, compliance resources, and
community-building initiatives.
GIVING BACK, LENDING A HAND, CARING
Local, national, and global community groups
receive millions each year from CUNA Mutual
Group, often in cooperation with credit unions and
industry partners. The company supports the United
Way, Children’s Miracle Network hospitals, Susan
G. Komen, Juvenile Diabetes Research Foundation,
Boys & Girls Club, WOCCU Relief Fund, and on
and on.
However, money isn’t everything. CUNA Mutual
Group also takes enormous pride in how many hours,
how much sweat, and how much care individual employees devote to helping people. It’s a reflection of the
credit union ethic of people helping people.
In the end, that’s really what CUNA Mutual Group
is: A reflection of the credit unions it serves. It’s hard
to quantify that, and it’s unlikely to get much media
attention. But it bears repeating every so often.
MONTANA CREDIT UNION LEAGUE
GROUP BENEFIT TRUST
Working Together to Control Health Insurance Costs
It started with a few voices: credit union CEOs concerned about the rising price of health insurance and
their frustration over lack of control. From the start,
these executives wanted to find a solution that was
affordable, provided a great benefit to their staff, and
was inclusive. Eight years later, the current Montana
Credit Union League Group Benefit Trust board
members still agree with those original tenets.
Of the original group, Rhonda Diefenderfer, president and CEO of Altana FCU, and Steve Grooms,
president and CEO of 1st Liberty FCU, remain on
the board and Al Vukasin, though no longer serving
on the board, remains a participant in the trust.
“The Health Insurance Trust has worked better than
I think anyone of us could have imagined these past
eight years, we are in a great position to better control our rate increases, which have been
lower than the market place, manage
expenses for us better than a big insurance company and most importantly
taken care of our staff members and
their families in a way that works for all
of us,” commented long-term trustee
Steve Grooms.
Because the Trust has been so suc- “ THE HEALTH INSURANCE TRUST
cessful, other states are interested
HAS WORKED BETTER THAN I THINK
in partnering and the trustees are
ANYONE OF US COULD HAVE IMAGINED
discussing this possibility with
THESE PAST EIGHT YEARS.”
neighboring states.
– STEVE GROOMS, PRESIDENT CEO
As a self-funded group, the Trust
1ST LIBERTY FCU
has great flexibility in the product
offerings and the way it can structure programs; and
like all cooperative ventures, it’s much stronger with
more participation. If you’re interested in a quote,
please call Montana Credit Union League President/
CEO and Trust Chairman Tracie Kenyon.
A Vast Network of ATMs, Branches, and More
by Bill Prichard, CO-OP Financial Services
Though credit unions are generally
smaller financial institutions, the cooperation between these organizations enables the movement to
serve members of individual credit unions nationwide. Among the best examples of this is a network of ATMs larger than any single bank, and a
network of “shared branch” locations larger than
all but three national banks. CO-OP Financial
Services manages these networks for its 3,500
client credit unions.
CO-OP ATM is a network of 30,000 ATMs across
the country. This network allows members of
participating credit unions to access their accounts
without incurring a surcharge fee. CO-OP Shared
Branching incorporates more than 5,000 “live teller
branches” and 2,000 self-service locations throughout the U.S. Members can go to any of these outlets
and transact their business as if they were in their
own home branch.
Montana has more than 110 CO-OP ATMs and,
for shared branching, our state has 13 branches and
three self-service locations.
While these two networks (and payment processing)
remain at the core of the company’s services, CO-OP
offers a wide range of products to make sure credit
unions can compete in the arena of advanced mobile
and online options for payment and account access. In 2014, for instance, the company introduced
CardNav by CO-OP, a new mobile card controls and
alerts application.
In addition CO-OP also supports the credit union
system by supporting credit union leagues and industry organizations. Its Miracle Match program also
provides $1 million per year in matching funds for
Credit Unions for Kids fundraisers.
After more than 30 years in business, CO-OP, which
is owned by nearly 1,200 shareholding credit unions,
remains focused on its mission to ensure credit
unions can “Be There. Be More.” for their members.
Bill Prichard, APR, is Senior Manager, Public Relations
and Corporate Communications for CO-OP Financial
Services. He can be reached at (800) 782-9042, ext. 3450,
or at [email protected].
ADDING OR
REVIEWING
SERVICES?
FOR QUALITY
BUSINESS
SOLUTIONS
FOR YOUR
CREDIT UNION
call
Renee Lyman
406.324.7458
[email protected]
NETWORK NEWS—11
DIRECTORS’ CORNER
NCUA OFFICE OF SMALL CREDIT UNION INITIATIVES
Grants, Consulting, and Other Great Resources
When discussion turns to the National Credit
Union Administration (NCUA) at a board meeting,
the first word that comes to mind is probably “examination” or “regulator,” not “resource.” But, since
the agency created the Office of Small Credit Union
Initiatives (OSCUI) in 2004, it has actually become
an incredible resource for credit unions.
OSCUI’s primary goal is to “ensure the long-term
viability and growth” of small, new, and low-income
designated credit unions. To that end, it offers support in the following four areas.
TRAINING: Using webinars, videos, and written
materials, OSCUI delivers training to credit union
staff and volunteers on various aspects of operational
management and regulatory compliance. OSCUI
staff also travel to present in person.
CONSULTING: OSCUI has a stable of experienced
Economic Development Specialists who
provide six months of hands-on consulting services to credit unions on a variety of
operational and strategic management issues
(like budgeting, business plans, developing
new services, field of membership expansion, succession planning, etc.). Each year,
OSCUI has two consulting cycles, January
DIRECTORS AT THE GAC
through June and July through December. Credit
unions can apply or be recommended for the program by their NCUA examiner.
GRANTS AND LOANS: The office administers the
Community Development Revolving Loan Fund
(CDRLF) that provides grants and loans to assist
low-income credit unions. The goal of the fund is to
support credit unions in a variety of ways that stimulate economic activity in the communities they serve.
PARTNERSHIPS AND RESOURCES: The office works with
other federal agencies and non-profit organizations to
identify programs and services that help credit unions
meet their members’ needs. These resources help
broaden credit union access to beneficial resources.
IN MONTANA
Access to the training, partnerships, and resources is
readily available at ncua.gov/Resources/OSCUI. In addition, all but a handful of Montana credit unions in
Montana qualify to apply for grants and consulting
because of their size or their low-income designation.
Many Montana credit unions have taken advantage
of this assistance. To date, a number of credit unions
have participated in the consulting program, and
even more have applied for grants. Since 2008, those
credit unions have received
money to fund student interns,
apply for CDFI certification,
pay for staff or board member
training, as well as enhance
member services, build internal capacity (especially around
technology and mobile services),
and conduct partnership and
community outreach.
TAKE ADVANTAGE OF OSCUI
So, sure, NCUA will always
be connected with the terms
“examination” and “regulation,”
but the next time it comes up in
conversation, don’t forget to consider it as a potential resource.
In addition to all of the other benefits of the CUNA Governmental Affairs Conference,
The
expertise or funding availcredit union directors who attend get the chance to spend quality time with staff
from your credit unions. LEFT: Mark Lodine and Jodie Olson (Horizon CU); ABOVE: Jim able through OSCUI might well
Kenyon and Tom Cullen (Whitefish CU).
benefit your credit union.
12—NETWORK NEWS
EENY, MEENY, MINY, MOE …
Have You Considered a CUSO?
by Circe Gleeson, KCCU Marketing Manager
Credit union folks are a savvy bunch. You know
what your members need and you work to deliver it.
Could you internally develop each and every service
your members demand? Probably. Would it cost you
an arm and a leg? You betcha. Are there alternatives?
Scads. In the pool of potential partners sit CUSOs,
credit union service organizations. CUSOs are credit
union owned, operated, and directed organizations
that primarily serve credit unions (which should give
them a leg up in knowing your business). CUSOs
typically evolve from a credit union that identifies a
strength within its organization, which correlates to a
need in the marketplace.
CONSIDER SUPPORTING THE SYSTEM
When making your choice of service partners, should
supporting the credit union system factor into the
decision-making process? Considering CUSOs possess the knack, the knowledge, and your shared business philosophy—most definitely.
It did for us. Our members were seeking industry
partners for things like business services and additional investment services. We put on our R&D hats, did
our research, and inevitably decided it wisest to invest
capital in organizations that already had the expertise
and the wherewithal to be the best in their fields. Low
and behold, they were CUSOs, and we’re now coowners of three—CU Business Group LLC, Primary
Financial LLC, and CU Investment Solutions LLC.
cessful program
eliminates or
reduces your
need for CUBG;
nobody can help
you grow your
business services
program like CU
Business Group.
In 2013, the CEOs of Kansas Corporate Credit Union’s three CUSOs got their
PRIMARY
photo taken with WSU Men’s Basketball Head Coach Gregg Marshall after he
FINANCIAL LLC, or spoke at the KCCU Annual Meeting. Pictured left to right: Larry Middleman
(CUBG), Mark Solomon (Primary Financial), Gregg Marshall, and Mike Doherty
SIMPLICD, works
with credit unions (CU Investment Solutions, LLC).
to invest money when cash is abundant and procure
deposits when it’s not. SimpliCD entered the market
STATISTICAL
to help simplify investing in bank and S&L CDs for
TIDBITS
credit unions. From the beginning, they also offered
from kccu’s cusos
an alternative to the high cost of borrowing from outside sources, by getting money in your door to fund
CU Business Group
loans. Not surprisingly, they streamlined this process,
membership
too. One partner to solve both sides of your liquidity
23 kccu members
equation … simply beautiful.
The genius behind CU INVESTMENT SOLUTIONS LLC,
or ISI, is capitalizing on the corporate staff you already trust with your business, to serve as your broker/dealers, through their Corporate Agent Program.
Corporate credit union investment staff earn their
required securities licensing and become registered
representatives of this CUSO to assist credit unions
with building a profitable marketable securities portfolio. No need to manage relationWE PUT ON OUR R&D HATS, DID OUR RESEARCH, AND
ships with multiple parties trying to sell the
INEVITABLY DECIDED IT WISEST TO INVEST CAPITAL IN
bond-of-the-day. With no hidden agenda or
ORGANIZATIONS THAT ALREADY HAD THE EXPERTISE AND fees, success is all that’s on the table.
THE WHEREWITHAL TO BE THE BEST IN THEIR FIELDS. LOW
AND BEHOLD, THEY WERE CUSOS.
CU BUSINESS GROUP LLC is the industry answer to
all things business services. They are the go-to for
more than 450 credit unions (and counting) across
the nation because of their expertise in developing and supporting the business services needs of
credit unions. Whatever you determine your role to
be, CUBG is the partner that helps you ultimately
achieve it. And don’t think a well-defined, suc-
The credit union system continues to evolve,
but the principles behind it remain. Service,
above everything, drives us. Credit union
SERVICE organizations are an important component of this system, and we’re proud that our ownership allows us to support the needs of our members
and all credit unions.
If you’d like additional information about our CUSOs,
please contact Circe Gleeson, Marketing Manager, toll-free
800.721.2677, ext.106 or email [email protected].
are cubg members
Primary Financial
$310 mil invested
$60.8 mil issued
in simpliCD in 2014
CU Investment
Solutions or ISI
39% of all marketable
securities held by kccu
members were sold
via isi
Kansas Corporate
Credit Union
Corporate Office
8615 W Frazier
Wichita, Kansas 67212
Montana Office
101 N Rodney, Ste 2
Helena, MT 59601
800.721.2677
www.kansascorporate.org
NETWORK NEWS—13
COVER STORY
FROM MY PERSPECTIVE, CONTINUED. FROM PAGE 2
Jim Nussle speaks at
the 2015 GAC. Photo
courtesy of Credit
Union Magazine.
Last fall, when I asked the
CUNA board of directors their
expectations of me as I took
on the role of president and
CEO, their instructions were
clear: They wanted bold leadership, a member-centered service
culture, and a full-court press
on strengthening the value
proposition that belonging to
CUNA must deliver—in partnership with the leagues—for
our member credit unions.
At the beginning of the credit union system’s second
century, we can reach our vision that credit unions
are Americans’ best financial partner by working
together and defining what makes us different. After
all, it’s not what we do as a financial institution that
makes us different, it’s how we do it.
I am excited about the journey ahead and honored
to be working with you.
Jim Nussle took over as head of the CUNA in September
2015. He is a former eight-term congressman from Iowa. In
Congress, he witnessed first-hand— and grew to admire—the
strength and enthusiasm of credit union grassroots advocacy.
HEALTHY CREDIT UNION SYSTEM, CONTINUED. FROM PAGE 2
“Eighty-two percent of members are ready to do more
business with their credit union after exposure to advocacy messaging that defines and reminds members
about the differences between credit unions and Wall
Street banks. And, here’s the silver lining—the goals
of generating grassroots contacts go hand-in-hand
with increasing member loyalty and growing wallet
share for credit unions.”
“EIGHTY-TWO PERCENT OF MEMBERS ARE READY
TO DO MORE BUSINESS WITH THEIR CREDIT UNION
AFTER EXPOSURE TO ADVOCACY MESSAGING
THAT DEFINES AND REMINDS MEMBERS ABOUT
THE DIFFERENCES BETWEEN CREDIT UNIONS AND
WALL STREET BANKS.
– JILL TOMALIN
DEPUTY CHIEF AND COO of CUNA
CREDIT UNION LEAGUES PLAY AN IMPORTANT ROLE
Tomalin also says that credit union leagues are an
important partner to CUNA.
“I believe we can strengthen and deliver on the
CUNA-League value proposition for our member
credit unions,” she said. “Together, with credit unions,
we need to find new ways to further educate consumers about credit unions and raise awareness through
media outreach, social media, and advertising. Many
credit unions and leagues are already making gains in
all of these areas, but more outreach can be done.”
14—NETWORK NEWS
Jill Tomlin (CUNA) talks with Creighton Blackwell (Coastal FCU in Raleigh
NC) in the Expo Hall at the 2015 CUNA Governmental Affairs Conference in
Washington, D.C.
Hopefully the articles throughout this issue not only
serve as a reminder about the credit union system, but
also a call to action to help spread the word about the
movement that continues to gain traction. By uniting together the voice is stronger, louder, and more
meaningful.
RECOGNITION
MONTANA CREDIT UNION SERVICE STARS
In January, MCUN asked credit unions to nominate staff and
volunteer from their credit union who provide stellar service. Below
are a couple of the responses we received. The “service excellence”
quotient in our credit unions is amazing. Make sure you give your
service stars a well-deserved pat on the back.
nominated by Eddie Black, President/CEO
WHITNEY WORM, MSR • TRICO COMMUNITY FCU
“Whitney consistently takes the time and effort to help our members. In one
particular case, the members get paid for the summer in early June and
have to make the funds last until they get paid again in September. Each
year, Whitney provides financial education to the members to help them
create a budget for the summer. A few years back, they had gotten in deep
trouble with payday lenders and credit cards. Whitney quickly analyzed the
situation and helped them consolidate their credit card debt and break the
payday lending cycle.”
nominated by Stephanie Sauers, MSR
ROBIN KUNZ, VOLUNTEER • COMMUNITY 1ST FCU
“Robin diligently keeps up with all the member closings/openings/
dormancy accounts every month. I am new to the credit union and see
her with her paperwork always working away. She is a member also and
is always so friendly when visiting. I always feel a burst of energy after
assisting her with her financial needs. I believe she represents the credit
union in a very positive way.”
nominated by Becky Cheyney, Member
ERIN RUHTER, MSR • LINCOLN COUNTY CU
“Erin Ruhter provided exceptional customer service in setting up my loan.
She was readily available by phone and email, and followed up in a timely
manner. She helped me understand options to make the best decision. She
executed the action expeditiously to meet my needs. All of which is much
appreciated. Thank You!”
Montana Credit Union Service Star Jordan Parrish talks to a member while
working at her desk.
nominated by: Connie McNamera, President/CEO
JORDAN PARRISH, BRANCH MANAGER
NORTHWESTERN ENERGY EMPLOYEES FCU
“Jordan came on board during some turbulent times
at our branch. She eagerly took on the position and
all its responsibilities (as well as headaches) with a
determined mind and a hardworking style. She does
it all with a smile on her face and a pleasant word for
everyone. She is very bright and has quickly picked
up the sometimes daunting task of management
in a professional and diligent manner. She is very
important to the success of our credit union, and
certainly embodies service excellence.”
TRACIE KENYON
NATIONAL LEADERSHIP ROLE
Thanks to Tracie Kenyon, president and CEO of the Montana
Credit Union Network, Montana’s credit unions have a strong
national presence. In December, Kenyon became the chair of
the American Association of Credit Union Leagues (AACUL).
In that role, she also serves as an ex officio member of the
CUNA Board and CUNA Executive Committee. Kenyon also
sits on the Executive Committee of the Credit Union Legislative
Action Council (CULAC).
LEFT: Tracie Kenyon (on the far right) joins CUNA President/CEO Jim Nussle and incoming
CUNA Chairwoman Susan Streifel at a press conference during the GAC. Photo courtesy of
Credit Union Magazine.
NETWORK NEWS—15
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PAID
Mark your CALENDAR
MAY 13-15 Annual Convention and Expo • Billings
JUNE 15-16 Executive Staff Roundtable • Fairmont Hot Springs
AUG. 4-5 IRA Conference • Great Falls
SEPT. 15-16 Director/CEO Forum • Miles City
SEPT. 16-17 CEO/Managers Roundtable • Miles City
OCT. 7-8 Directors’/CEO Forum • Helena
OCT. 27–29 Fall Forum • Great Falls
information
and registration at www.mcun.coop/EducationEvents
Join CUNA and the World
Council of Credit Unions
in Denver
as they co-host
America’s Credit Union
Conference and the World
Credit Union Conference
Montana
Credit Union
Network
101 N. Rodney St.
Helena, MT 59601
•
go to
www.CUinDENVER2015.org
for registration and more info
phone
406.442.9081
800.745.5546
websites
www.mcun.coop
montanacreditunions.coop