By The Way
The By The Way newsletter is a great way to keep Kentucky credit unions informed of the latest updates in governmental affairs, compliance and regulations, education and training. In addition, By the Way highlights the difference credit unions are making on a daily basis.
- Make an Impact in CyberSecurity
Credit Union News
Exciting things are happening at the League, and we want to share some important news with you. It is our pleasure to inform you that we are relocating to new, smarter business premises this August. An official date has not been set but once it has been determined, we will send a notice out to all credit unions.
Our new address will be 5111 Commerce Crossings Drive, Suite 210, Louisville, KY 40229.
The new office is conveniently located right off the Gene Snyder Freeway in the Commerce Crossings industrial park and offers a larger, more comfortable training room and better parking facilities.
Our contact information will remain the same:
- Phone: (502) 459-8023 or (800) 333-5285
- Email: www.kycul.org.
If you have any questions on the relocation, please contact us. We look forward to continuing to work with you at our new address.
Steve Rudy was raised in Ballard County in far western Kentucky. After graduating from the Ballard County School System, he went on to Paducah Community College and finished his degree in Agriculture Education at Murray State University. He returned home and joined the family business of Rudy’s Farm Center. At only age 39, Steve has already served 14 years in the General Assembly representing House District 1. In 2017 he was named Chairman of the powerful House Appropriations & Revenue Committee. Coming out of the divisive 2018 Session that dealt with both Public Pension and Tax Reforms, we sat down with him to learn more about him and why he is a member of C-Plant Federal Credit Union.
Q: Tell us about your family.
“My wife and I have an 8- year old daughter. I’ve actually been in the legislature longer than I’ve been married and a dad. My daughter has grown up always seeing this side. I work in our family business; Rudy’s Farm Center, with my dad and brother and am very blessed that they allow me the time to serve our state as a representative.”
Q: Tell us a little more about the family business.
“The business first started as a farm industrial store. Our family has been in the Agriculture business since the 60’s. My dad started working in this store in 1986 and ended up buying it. Today our business has expanded and we sell more industrial supplies than agriculture supplies.”
Q: What motivated you to run for office?
“I have spent my whole life following politics and I found a niche in state government and fell in love with it. I do like the “part-time” legislature – it helps us reconnect to family, business and our community.”
Q: Tell us about the 2018 Legislative Session.
“It was my life for the first 4 months of the year. As Chairman of the Budget Committee, I knew that getting a budget passed was the highest priority and the most important bill that passed. We saw major policy shifts. Step one was passing meaning tax reform and we still have a long way to go. My goal is to get personal and corporate taxes even lower and to expand sales tax but, this has to be done in steps. We were able to fully fund the pension fund while lowering taxes and increasing revenues. We have taken the state from 37th in competiveness to 18th. We are probably looking at a 10 year transition to a full consumption tax.”
Q: If you weren’t doing this, what would you be doing?
“My degree is in agriculture and it’s always been an integral part of our family. One of my passions is dealing with people – it’s like customer service where you balance doing what’s right and doing what’s popular. Also, I would spend a lot more time on the golf course!”
Q: What is the most challenging part of being a state legislator?
“The time away and the time it takes me to get home. Also, some decisions are black and white but there are times when seeing both sides is tough and you need to in order to do the right thing. You have to be open-minded and have the desire to build consensus.”
Q: What else would you like our readers to know about you?
“I appreciate the opportunity to serve, to work with groups like the credit unions. Working with groups helps me keep an open mind and ears to the issue. It’s really important to build relationships with your legislator – these relationships can very much help shape public policy. If we don’t hear from you, we assume you’re ok with it. One good example of getting your voice heard is the story of an Amish gentleman who felt having the orange triangle on the back of his buggy violated his religious rights. He was placed in jail and hand wrote 138 letters to members of the legislature and the law was changed.”
Q: What lead you to become a credit union member?
“I was looking to buy a new truck and the dealer recommended I use the credit union.”
Q: What is your favorite thing about the credit union?
“Great rates, great service and they make a difference in the community and to the economy.”
Watch for future editions of Nine Questions where we introduce you to the public officials that shape Kentucky.
The nomination is subject to confirmation by the Senate
President Trump nominated Rodney Hood for a seat on the NCUA board on June 18, 2018.
His term would expire Aug. 2, 2023.
The seat is the one currently occupied by Democrat Rick Metsger. Metsger's term technically expired last August.
Hood is a former member and vice chairman of the NCUA board, who now serves as a corporate responsibility manager for JPMorgan Chase, where he manages national partnerships with groups that work on community development, civil rights and with the disabled community.
He also served as the associate administrator of the Rural Housing Service at the Department of Agriculture. The North Carolina Legislature has elected him to a term as a member of the Board of Governors for the University of North Carolina College System.
Hood earned a B.A. in business administration, communications and political science from the University of North Carolina.
The nomination is subject to confirmation by the Senate. Hood is a Republican; no more than two members of the three-member board may belong to the same political party as the president.
National Credit Union Administration Board Chairman J. Mark McWatters issued the following comment on President Donald J. Trump's announced intention to nominate Rodney Hood to the agency's Board:
"I extend my sincerest congratulations to Mr. Hood on President Trump's intent to nominate him to the National Credit Union Administration Board," McWatters said. "Mr. Hood will bring a wealth of financial industry and community development knowledge to the position. His familiarity with the federal government process, the NCUA, the credit union community, as well as his financial institutions expertise will enable him to serve as an effective credit union industry regulator. I wish him well as he proceeds through the nomination process."
In fall of 2017, the Green River Credit Union Chapter initiated a contest to choose a new name to better reflect its Membership. Sherry Roberts of Labor Management Federal Credit Union and President of the chapter won with the name of Midcentral Credit Union Chapter.
The name change became official June 15, 2018. It covers the following counties of; Daviess, Hancock, Henderson, Union, Webster, Hopkins, McLean, Ohio, Grayson, Breckinridge, Muhlenburg, Butler, Edmonson, Todd, Logan, Warren, Simpson and Allen.
TRGroup: Helping Credit Unions Prosper
Seven Leagues joining forces to offer best-of-class services to credit unions.
The Raiffeisen Group, LLC (TRGroup) is a collaboration of seven state leagues utilizing our collective strength to bring the best-of-class products, services and service to credit unions at the lowest possible cost. TRGroup's mission is to empower credit unions to better serve their members, build loyalty, expand market share, realize savings on certain operational functions, and grow revenue. They are committed to providing credit unions with state associations where they have the greatest level of input, ownership and control.
TRGroup was formed by the trade associations serving credit unions in Indiana, Kentucky, Louisiana, Mississippi, Tennessee, Virginia and West Virginia. Affiliated credit unions in those seven states boast a combined 10 million members, $100 billion in assets, and 25,000 employees.
Kentucky Award Nominations
Each year, your League hosts an Awards Banquet to recognize the achievements of individuals, credit unions, and chapters. Your League sponsors several different awards programs to recognize these achievements.
Click HERE to view each award category.
The deadline to submit nominations for the Kentucky Awards is August 31, 2018.
Two from Kentucky Graduate from SE CUNA Management School
Congratulations to Alan Parrot (Members Choice CU) and Kathy Roberts (Commonwealth CU)!
“SRCUS was an awesome experience where I was able to network with other credit union executives. During this time, I was pushed out of my comfort zone and this allowed me to grow as an individual and I feel this will make me more valuable to my credit union. Beyond fear lies freedom!” – Alan Parrot
“I cannot express how wonderful the SRCUS experience has been. The knowledge and the friendships that I have gained over the past few years are priceless. It enabled me to network with other credit union professionals as well as develop me as a manager.” – Kathy Roberts
In addition, Kathy and her group were awarded Best Presentation on their whitepaper on “Workplace Diversity.”
For more than 45 years, the SRCUS Southeast CUNA Management School has equipped graduates with the skills and knowledge to meet the leadership challenges that arise in the credit union industry. The curriculum develops students’ operational, managerial and leadership abilities as they receive advanced academic instruction on a variety of topics including management, leadership, and financial analysis. Students also apply the knowledge gained from the on-site sessions to projects that require strategic analysis of their credit unions and research of relevant issues facing the credit union industry.
In addition to a rigorous academic curriculum, the Southeast CUNA Management School provides students the opportunity to develop their leadership capabilities and better understand the credit union philosophy so that they can contribute to the success of their credit unions and to the movement as a whole. In the true credit union spirit of “people helping people”, the Class of 2018 participated in a volunteer outreach effort with the Food Bank of Northeast Georgia, where they assisted with food recovery for families in need in Northeast Georgia.
Graduation from the Southeast CUNA Management School is recognized throughout the credit union industry as a prestigious mark of achievement. Upon successful completion of the program, students received a graduation diploma issued in conjunction with the University of Georgia Center for Continuing Education. For more information on the Southeast CUNA Management School, visit www.srcus.org/management.
Giving back to the community is a way of life for credit unions. During this year’s Southeast CUNA Management School, students took a break from the academic rigors of the program to put credit unions’ “people helping people” philosophy into action, as forty-three individuals from the Class of 2018 volunteered at the Food Bank of Northeast Georgia (FBNEGA) in Athens, Georgia.
FBNEGA recovers donated and salvaged surplus food and, with the help of volunteers, distributes it to human-service agencies that then distribute the food to residents in need in the community. Students gathered on Tuesday morning and packed nearly 1,000 meals that will be provided to food-insecure families and individuals in northeast Georgia. In addition to giving of their time, the Class of 2018 also made a financial donation of $1,000 to the food bank, which will help further the mission of the food bank as they work toward ending hunger as part of an overall community effort to alleviate poverty.
“Concern for community is the 7th cooperative principle – these principles are the foundation for why we do what we do as credit unions,” explained Michael Poucher, President of the Class of 2018 and Financial Center Manager at First Commerce Credit Union in Florida. “This is one of the many things we learn at SRCUS. Each year we come to Athens, Georgia to embark on our journey to improve ourselves as leaders within our organizations as well as the credit union movement. While we spend our time here, the community of Athens – the “people" – welcome us with open arms, so when given the opportunity to engage in the community that has been so good to us, we jumped on board. Why? Enhancing peoples’ quality of life is what we do.”
The Southeast CUNA Management School is administered by the Southeast Regional Credit Union Schools (SRCUS). Students in the Class of 2018 serve credit unions in ten states among the southeast region, including Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, and Virginia.
August 18-19, 2018 | Denver, CO
Develop a roadmap for your credit union’s long-term success
One of the largest contributors to long-term success at a credit union is dedication to building a dynamic strategic plan. This requires attention to detail and discipline to implement successfully.
Attendees will receive guidance from industry experts on strategic issues that are vital to incorporate into your future planning.
By attending you will:
- Explore trends likely to affect credit unions in the coming years
- Discuss how to implement 2018-2019 CUNA Environmental Scan trends into your strategic plan
- Share your perspective from your peers and discover new ideas from industry experts
Who Should Attend?
This roundtable is beneficial for board members, CEOs and senior leaders who are interested in learning how to incorporate data driven industry trends into their strategic planning process.
CUNA announced three senior staff promotions.
Mike Schenk has been named CUNA's deputy chief advocacy officer for policy analysis and chief economist. During his time with CUNA, Schenk has played a critical role in the organization's success through exceptional policy analysis. His team is closely integrated into CUNA's advocacy strategy to produce data, analysis and research that influences policymakers. He was previously vice president of research and policy analysis.
Trey Hawkins has been named deputy chief advocacy officer for political action. Hawkins plays an instrumental role in the growth of the Credit Union Legislative Action Council (CULAC), CUNA’s political action committee, and the successful execution of the organization's political advocacy strategy. He was previously vice president of political affairs.
Vicki Christner has been named vice president of strategic communications. Christner spearheads the development and implementation of strategies across all communications functions for the organization. Through collaboration with other leaders throughout the association, the strategic communications team works to strengthen credit unions in the marketplace and advance the association's public policy objectives.
CUNA Councils announced the name change of the CUNA CFO Council to the CUNA Finance Council. The new name more closely unifies the members and their professional backgrounds with the intent of the group. The change is effective immediately.
“As credit unions have evolved, and finance departments have expanded, the CFO Council membership has increasingly included both CFOs and a wide range of other finance professionals,” said Steve Arbaugh, chief financial officers at SECU in Linthicum, Md., and chair of the council’s executive committee. “We felt that replacing ‘CFO’ with ‘Finance’ is more inclusive and better reflects the breadth and depth of our council’s membership.”
The CUNA Finance Council will continue to provide high quality resources to credit union CFOs, finance leaders and other finance professionals, including white papers, scholarships, access to networking opportunities and an annual council conference and CFO Forum.
More than 1,300 credit union finance professionals across the U.S. are members of the CUNA Finance Council.
CUNA Operations, Sales & Service Council Changes Name
The CUNA Operations, Sales & Service Council is now the CUNA Operations & Member Experience Council, CUNA Councils announced.
The new name more closely unifies the members and their professional backgrounds with the intent of the group, according to CUNA Councils.
“The executive committee felt that it was time for a change, and while the term ‘operations’ makes sense, the term ‘sales and service’ does not fully represent all of the various disciplines within the Council membership,” said Greg Inman, chief operating officer at Neighbors FCU, Baton Rouge, La., and executive committee chair of the council. “Replacing it with ‘member experience’ is more current and truly captures the essence of the membership by casting a larger net.”
The CUNA Operations & Member Experience Council will continue to provide resources to credit union operations and member experience leaders, including white papers, scholarships, access to networking opportunities and an annual council conference.
The name change is effective immediately.
CUNA Councils has officially launched their 2018 All In campaign. Starting in 2015, the annual campaign encourages credit unions to unlock the full value of CUNA Councils by signing up one credit union professional for each Council.
“CUNA Councils each provide an incredible professional development platform to individual members, yet credit union with staff participating in all Councils gets compounded value,” said Jason Osterhage, CUNA Councils executive committee chair and senior vice president of lending at Alliant CU, Chicago.
“They can be confident that leaders of every critical functional discipline are equally encountering new and relevant ideas, connecting with other accomplished credit union executives, and taking full advantage cross-Councils content and resources,” Osterhage continues. “The ‘All In’ campaign celebrates the wealth of opportunities CUNA Councils provide for credit unions to learn, network, collaborate, and grow together.”
Credit unions represented in all 7 CUNA Councils by Aug. 17 will be entered to win a choice of two prizes, valued up to $10,000.
The CUNA Research Library at America’s Credit Union Museum was unveiled yesterday at a ribbon-cutting ceremony.
The new CUNA Research Center is a result of a $3.3 million campaign that completely renovated an unused building next to the Museum. Credit Union National Association (CUNA) was the lead sponsor with a gift of $1 million. Campaign funds will also be used for a second phase which will renovate the main Museum building; add new exhibits; and digitize documents so they can be made available to credit unions, credit union partners, and researchers across the county either physically or electronically.
At the ceremony, Michael L’Ecuyer, Chairman of the Museum and President/CEO of Bellwether Community Credit Union, thanked CUNA by saying, “Good trade associations are effective advocates for their constituents; great trade associations also develop and deliver relevant industry products and services to members. Exceptional trade associations do all of the above and while looking for opportunities to transform their industry. CUNA’s investment in the Museum was one of those opportunities. For that we are forever thankful.”
Jim Nussle, President and CEO of CUNA said, “Sometimes you go to a Museum and all you care about is the past. With the opening of the CUNA Research Center, it gives us the opportunity to talk about the future and to celebrate the innovative things credit unions are going to be able to do in the future. CUNA is honored to be part of this. We invite all credit unions to come to the CUNA Research Center to celebrate history and to get ready for an exciting future.”
The ceremony also featured a dedication of the Richard “Dick” L. Ensweiler Research Library. Dick Ensweiler, long-time credit union leader and recently retired CEO of the Cornerstone Credit Union League, and his family were present for the event. Dick remarked, “To see my name here is beyond anything I could have ever imagined. The spirit and energy I gave was because it was something I love.”
Ribbon-cutting of the CUNA Research Center and Ensweiler Research Library at America’s Credit Union Museum in Manchester, NH. Left to Right, Director Jim Nussle, President/CEO of CUNA; Chairman Michael L’Ecuyer, President/CEO of Bellwether Community Credit Union; Director Ron Covey, President/CEO of St. Mary’s Bank Credit Union; Director Peter J. Lemire, Esq, Lemire Family Representative; former Director Dick Ensweiler, retired President/CEO of Cornerstone Credit Union League; Director Paul Gentile, President of Cooperative Credit Union Association; Director Bill Raker, President/CEO of Firefly Credit Union.
August 3-5, 2018 | French Lick Springs Hotel
French Lick, IN 47432
HOTEL DEADLINE IS JULY 2ND. RESERVE ROOM >>
As a volunteer, no one is better positioned to affect the future of your credit union than you. Ongoing education is important in overcoming challenges and recognizing opportunities for your credit union.
That’s why Kentucky and Indiana have joined forces to become Partners in Progress for Education.
Join us at the beautiful French Lick Springs Hotel for a weekend of informative learning sessions, valuable networking opportunities, and great fun and entertainment!
Closing Keynote: Steve Haffner
Steve’s unique blend of insight, humor, stories, and amazing mentalism demonstrations create a thought-provoking and interactive experience that inspires the audience to confront their “lizard brain” impulses and become better versions of themselves.
How can we overcome the fears, worries, and negative impulses that often overwhelm us and keep us from performing at our best?
In this entertaining keynote program, Steve creates the a-ha by helping audience members discover subconscious biases and negativity that affect their thinking and decision making.
September 25-26, 2018 | Nashville City Club
20th Floor, ServiceSource Building
201 4th Ave N
Nashville, TN 37219
Educational Investment: EARLY BIRD SPECIAL is $699 for TRG Members
Mark your calendar! Your League (as part of the TRGroup) and Woods Rogers Attorneys are teaming up to offer credit union professionals a two-day Human Resources Seminar in exciting Nashville, TN.
Graduate Level Courses
200 Fourth Ave N
Nashville, TN 37219
The Raiffeisen Group, LLC (TRGroup) is a collaboration of seven state leagues utilizing our collective strength to bring the best-of-class products, services and service to credit unions at the lowest possible cost. Our mission is to empower credit unions to better serve their members, build loyalty, expand market share, realize savings on certain operational functions, and grow revenue. We are committed to providing credit unions with state associations where they have the greatest level of input, ownership and control.
TRGroup was formed by the trade associations serving credit unions in Indiana, Kentucky, Louisiana, Mississippi, Tennessee, Virginia and West Virginia. Affiliated credit unions in those seven states boast a combined 10 million members, $100 billion in assets, and 25,000 employees.
Cyberattack is one of the most notable threats for credit unions and the number one concern for credit union regulators. TRGroup, a collaboration of seven credit union Leagues, has joined forces with Virginia-based Radford University’s IMPACT Lab to provide online award-winning IMPACT cybersecurity training to credit union staff responsible for keeping your data safe.
The Award-Winning Cybersecurity Training Is:
A competency-based education workforce development program focused on cybersecurity.
An online program designed for busy professionals, delivered in an asynchronous, self-paced manner and credit union professionals have up to twelve months to earn 18 credit hours.
Helping to prepare students for industry-aligned certification exams and teaches them theory, problem solving, analytical thinking and understanding computational logic.
Aligned with industry workforce standards (e.g., NIST) and employs research-based practices from cognitive science, analytics, simulation-based learning and gamification to ensure it is highly effective and engaging.
Delivered by Radford University, who has been designated a National Center of Academic Excellence in Cyber Defense Education by the National Security Agency and Department of Homeland Security.
Now is the time to expand your knowledge and skills and help further protect your credit union’s assets! Learn more at trgroup.org/impact.
by Jeff Rendel, Certified Speaking Professional
As credit union members’ and consumers’ expectations and options for financial services continue to expand, so must the member experience. How does a credit union further develop member service and experience skills when so many possibilities are presented? In listening to scores of credit union CEOs and senior executives, more than a few themes emerged for enhancing the next level of skills for the member experience. Let’s explore how your credit union can practically enhance the member experience at the point of first, and most often, connection – the front line leader.
Be an expert. It’s a given that front line leaders should know a credit union’s products inside and out. More important, though, is the ability to ask questions, determine potential solutions, and make simple recommendations. It’s as down-to-earth as considering one’s self a consultant to members and helping each member achieve expected results. The expertise delivered to members demonstrates in-depth knowledge of issues and answers, positioning your front line as a trusted resource for members.
Be engaging. While a great deal of the member experience focuses on achieving results, it’s also pleasant to enjoy the human interaction. Communication skills, professionalism, individual focus, a personal touch, and body language awareness come into play. The front line is often the only point of personal contact for members; an engaging experience displays respect and appreciation, generating repeat business and long-term loyalty. Every interaction with a member is an opportunity to increase the value he or she expects and deserves from the credit union.
Be empathetic. Every member has a different story and need. Where one member applies for a jumbo mortgage, another member is checking a deposit balance daily until payday. Part of the member experience is seeking to understand where a member stands now, and helping the member move toward to the next step of success, regardless of business value. The role of the front line leader is to serve – in times of plenty and when budgets are stretched. Building lifetime partnerships with members involves serving members through all lifetime experiences.
Be elastic. Odds are high that your credit union’s business model has changed over the years; and, odds are higher that it will continue to change for members and their expectation levels. While positions at credit unions may remain; roles, duties, hours, and locations may change. The character of a business that grows with its members is that it changes with and for its members. It’s all part of upholding a business model that adapts with members. The better we are at changing and providing what members want, the greater the odds of members’ continued loyalty.
Be an entrepreneur. A business that is growing is one that is selling its products and services. Sales is a natural part of a business on the move. Entrepreneurial success takes an energetic, go-getter attitude that wants nothing more than the member to win with the value the credit union provides. Seeing every member interaction as an opportunity to help a member win leads to discovering where appropriate products and services help members most. Dismissing an opportunity to viably add value to a member’s financial and experiential well-being is effective neglect. When the member wins, your credit union wins. An entrepreneurial outlook and set of habits focus on success for every member, every time.
For most members, most times, their primary interactions with a credit union are via technology. Yet, human interaction is still a large share of the member experience and business development cycle. Consider the insights above, from credit union leaders, as you hire and develop the first – and most functional – level of leadership at your credit union.
Jeff Rendel, Certified Speaking Professional and President of Rising Above Enterprises, works with credit unions that want entrepreneurial results in sales, service, and strategy. Each year, he addresses and facilitates for more than 100 credit unions and their business partners. Hear Jeff at this year’s Volunteer Leaders Conference.
Class Act FCU has hired 24 work study students and has begun training them this summer to run their High School Branches. Their student-run branches are open to the public and offer sophomores, juniors and seniors at Doss and Southern High Schools in Louisville, the opportunity to gain valuable hands-on, real-world work experience. This will be the 9th year that their Class Act Academy of Business and Finance has offered this program to an elite group of exceptional students chosen to become Student Member Relations Specialists.
During their summer break, these students are paid employees at Class Act FCU. They go through a rigorous training program on credit union operations. They spend weeks learning credit union rules, regulations and standards as well as the software program necessary to process transactions. The students also have several weeks where they work one-on-one with members and perform real transactions under the supervision of regular staff. They are expected to adhere to the same high standards as any other employee of the Credit Union and must maintain an accurate cash drawer, open accounts, and complete branch paperwork for members.
“The goal of the Board, management and staff at Class Act is to provide financial education to our community,” says Tom Anonson, EVP at Class Act FCU. “As the only education-based credit union in Louisville we pride ourselves on serving this community in a unique way. Our partnership with JCPS goes back to 1954 and shows our commitment to the students and staff.”
Terra Greenwell, Academy Principal of Business & Finance at Doss High School, said that since opening their new academy model location, “it has become ingrained in the school’s culture as something for which students can be proud. Class Act has become the cornerstone of the success of the Business and Finance Academy,” she said.
Southern High School Faculty Instructor Tim Laha said the partnership the school has with Class Act FCU has been “amazing. “they’ve put a ‘real’ financial institution in our school to help students learn about financial services. This work-based learning experience begins with a paid summer internship and continues during the school year as a class that students earn credits for their Financial Services pathway. It not only teaches students employability skills, but helps them learn how to make good decisions about their own finances as they advance into adulthood.”
Students complete CUNA modules throughout the school year to obtain state certifications and acquire additional knowledge and training to grow their skill set. Students have relied on the hands-on job experience offered by Class Act FCU to build outstanding resumes by working on some fall, winter, spring and summer breaks and/or on weekends. They have worked not just in Member Relations, but in many different departments such as: Marketing, Accounting and Loans. They have been selected throughout the school year to work at other Class Act FCU branches and hired in positions of management, once they have been graduated. Several have been hired to work at shared branches, other credit unions, in addition to financial institutions outside of the credit union industry.
Team members from Commonwealth CU came together this past month to take part in Main Street Clean Sweep, an annual event hosted by Bluegrass Greensource. This community-led litter clean-up campaign takes place in numerous cities throughout Central Kentucky. Early on a Saturday morning, team members met at the Shelbyville Branch to do their part in leaving the earth a little greener for future generations. At the end of the event, an estimated 204 pounds of trash had been collected in the Shelbyville community alone.
As a follow up to Main Street Clean Sweep, Commonwealth CU’s team headed out to GreenFest, another event sponsored by Bluegrass Greensource. This event serves as a “one-stop shop” to educate and celebrate sustainable living throughout Kentucky. Team members were on site to distribute wildflower seed packets made completely from recycled materials and to host the CU’s first Shred Day of the year. Started in 2005, Shred Day is a free community event that allows individuals to safely and securely dispose of sensitive documents. Donations for Backpack Snacks and Senior Living Centers are also collected at these events.
On June 20th, staff members from KIT Federal CU cooked and served breakfast for the kids of Cultivating the Youth Experience (CTYE), a non-profit advocacy group targeting middle to high school youth especially, but not exclusively, in the West End of Louisville.
CTYE sponsors a one-day Youth Work Readiness program in June and a Summer Reading Program spanning 7 weeks from late June to early August at Iroquois High School. This program provides meals for the children, and for a few of them, it may be the only substantial meal they receive during the day.
KIT Federal plans to visit and cook breakfast again at CTYE on July 11th.
KIT Federal CU has adopted a new policy, Babies in the Branch, making KIT the first credit union in Kentucky to allow new mothers to bring their newborn infants to work.
Head Teller, Elana Hall, unexpectedly delivered her daughter, Ellie, 10 weeks early. As a premature baby, there would be several milestones Ellie would have to complete before she would be able to go home. Furthermore, once released, doctors recommended that Ellie not enter daycare, making it difficult for Elana to return to work.
“Great employees are hard to find, especially for a small credit union like us. When we realized that we would lose Elana because she needed to be able to take care of Ellie, we knew that we had to figure out a way to make it work for all of us,” said Andrea Trujillo, EVP.
The Babies in the Branch idea came from an article in the credit union journal, “Babies on board: Why allowing infants at the office benefits some CUs” (Ghosh, 2017).
KIT hoped that the Babies in the Branch policy would achieve two things:
- Relieve Elana’s worries and allow her to continue working, maintain an income, and take care of Ellie;
- Allow KIT to keep a valuable employee who does a spectacular job serving members.
In February, and at 10 weeks old, Ellie Clair Hall became a member of the KIT family.
The KIT staff cleaned and organized a back room to help make Ellie comfortable. The room was complete with a rocking chair, changing table, diaper dispenser, basinet, and bouncy seat.
“We were uncertain how it would affect our work environment, member services, and production. It has been 6 months and we are happy to say that Babies in the Branch’ is a success!” said Andrea. Ellie is now six months old and members have enjoyed seeing her in the branch.
Team L&N Walks with a Purpose for FEAT Louisville
L&N employees and volunteers participated in FEAT of Louisville's – 2018 Outrunning Autism 5K on Saturday, May 19th. Team L&N raised $3000.00 to benefit FEAT - Families for Effective Autism Treatment of Louisville. We appreciate everyone that participated and helped make this possible.
UKFCU Financial Fitness Day Recap
An annual event for UKFCU members, Financial Fitness Day is essentially a crash course on managing money. Four seminars divided into 30-minute segments cover topics from investments to mortgages, and debt management to insurance. This year Financial Fitness Day was held on June 16th at the New UKFCU Corporate Office.
While being financially-well is a necessary life skill, Financial Fitness Day isn’t just nonstop information. We encouraged everyone to show up early to enjoy a catered breakfast, learn about our Smart Money Center and there was even a prize table. Members could guess the number of coins in a jar (it was 1120, by the way) and spin a wheel to instantly win one of several prizes. Furthermore, those who attended all four sessions were entered to win a $250 Southwest Airlines gift card!
Financial Fitness Day is an annual event open to all UKFCU members. If you didn’t make it out this year, please join us in 2019 for even more financial fun!
To learn more about our Smart Money Center, visit https://www.ukfcu.org/education/smart-money-center.
There has been many questions about the provision in Senate Bill 2155 that addresses the copying and scanning of driver's licenses or personal identification cards.
As you know, new laws and regulations are always open to interpretation, but for now let's look at the specific language of the bill and how it may interact with your BSA member identification procedures:
Senate Bill 2155
(b) Use Of A Driver's License Or Personal Identification Card.—
(1) IN GENERAL.—When an individual initiates a request through an online service to open an account with a financial institution or obtain a financial product or service from a financial institution, the financial institution may record personal information from a scan of the driver's license or personal identification card of the individual, or make a copy or receive an image of the driver's license or personal identification card of the individual, and store or retain such information in any electronic format for the purposes described in paragraph (2).
Some of you have asked, "haven't we always been able to do this, why do we need a federal law to allow it?" Some state laws prohibit the copying of driver's licenses. Additionally, the Department of Defense prohibits members of the military from allowing their military IDs to be copied or scanned – Senate Bill 2155 will not change military protocol.
You will note in section ( C) below that this bill supersedes and preempts state laws that conflict with this provision.
(2) USES OF INFORMATION.—Except as required to comply with Federal bank secrecy laws, a financial institution may only use the information obtained under paragraph (1)—
(A) to verify the authenticity of the driver's license or personal identification card;
(B) to verify the identity of the individual; and
(C) to comply with a legal requirement to record, retain, or transmit the personal information in connection with opening an account or obtaining a financial product or service.
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Ever since the passage of S.2155 CUNA has, and continues to receive, a steady stream of questions from credit unions about how the various provisions of the Act will impact operations going forward. They previously posted a summary chart of each section of the Act here, but they are going to use their CompBlog to take a deeper dive into some of the specific provisions that are causing the most concern for credit unions. This post will focus on the changes to HMDA as there seems to be a lot of confusion surrounding Section 104 and what it does and does not do.
What it DOES NOT do: It does not exempt any previously covered institution from the mortgage loan data reporting requirements of HMDA that were in effect prior to January 1, 2018. If your credit union originates at least 25 closed-end mortgage loans or 500 HELOCs in each of the preceding two calendar years, you are still subject to HMDA reporting. S. 2155 just rolls back the rule to the state it was in on December 31, 2017 before the new Dodd-Frank enacted additional data collection requirements were implemented on January 1, 2018. So essentially if you originate between 25-500 closed end loans, you will report only the old HMDA data points that were in effect last year. And if you originate less than 500 HELOCs, you will not report this open-end data.
Click here to read what S.2155 does do!
On July 1st, new warranty and indemnity rights, liabilities and obligations to Regulation CC could impose greater risks for credit unions. The final rule creates a new Remote Deposit Capture Indemnity in Section 229.34(f) to address the allocation of liability when a depositary institution, such as a credit union accepts deposit of a check through “remote deposit capture.” In other words, when the depositor/ member sends the credit union electronic information about a check, such as a photographic image, which the credit union uses to create an electronic check or substitute check for collection. The indemnity would be provided by a credit union that accepted a check by remote deposit capture to a financial institution that accepted the original check for deposit, in the event the financial institution that accepted the original check incurred a loss because the check had already been paid. The final rule also added an exception to the indemnity which would prevent a bank from making an indemnity claim if it accepted the original check containing a restrictive indorsement inconsistent with the means of deposit, such as “for mobile deposit only.”
Some check vendors are now printing checks with a checkbox on the back which states, ”check here if Mobile Deposit,” but there has been some question as to whether simply checking that box fulfills the restrictive endorsement requirements.
Further Action. If your credit union accepts checks by remote deposit capture, you may want to review the language in your Mobile check deposit agreement or Remote Deposit Capture Agreement (if the language isn’t already there) that requires the credit union’s member to add a specific restrictive indorsement to the check such as “For Mobile Deposit Only, at ABC FCU into account #123456789” and also require the new check box which identifies the check as “For Mobile Deposit” to be checked.
Source: CUNA Compliance Community
The NCUA has issued a final rule in response to the passage of the Economic Growth, Regulatory Relief, & Consumer Protection Act (S. 2155), which was signed into law last month. The rule provides clarification that a 1-to-4 family dwelling that is not the member’s primary residence will no longer be considered a member business loan (MBL) under the Federal Credit Union Act.
This rule provides credit unions with parity to banks, and allows for additional lending opportunity since these loans will no longer be counted towards the aggregate MBL cap.
The final rule is effective immediately.