Credit Union Times Magazine November-15, 2000

  • Evolution of a charter consultant

    PORTLAND, Maine - Just who is Alan D. Theriault? He's become recognizable in the credit union industry by many as the mastermind of credit union-to-thrift charter conversions. But Theriault says he doesn't push credit unions to convert to thrifts because it doesn't make sense for a lot of them. He...

  • Digital Insight says Net banking is profitable

    CALABASAS, Calif. - The knock on Internet banking continues to be that it's not profitable. Not true, according to a recently released study commissioned by Digital Insight. The study, conducted by Celent Communications, shows there are two ways financials can benefit from offering Internet banking - cost savings and revenue...

  • CUNA asks for outside consultant to meet with NCUA officials on budget

    WASHINGTON-In a November 3 letter to NCUA Chairman Norman D'Amours, CUNA requested NCUA to meet with CUNA's hired consultant regarding the NCUA budget. The budget is on the agency's agenda for its November board meeting to be held Nov. 16. CUNA has retained former Office of Management and Budget examiner...

  • Growing wealth creates new needs for services, products

    Teresa Freeborn says the financial services market is changing. That's why the $2 billion Hughes Aircraft Employees Federal Credit Union in Manhattan Beach, Calif., has increased wealth management services, says Freeborn, senior vice president of marketing and public relations. Wealth management, a term she says often scares credit unions, ranges...

  • Indirect lending having direct impact on credit unions

    RANCHO CUCAMONGA, Calif. - Credit unions in California and in several other states throughout the U.S. are reaping the benefits of indirect lending - totaling in the billions of dollars - thanks to the efforts of Credit Union Direct Lending and Members Acceptance Co., (MAC) an independent marketing firm. Both...

  • Honesty/integrity tests bring out the honesty in job applicants

    MEMPHIS, Tenn. - There is never a good time for credit unions to relax their employee screening and interviewing practices to weed out unqualified job candidates or those that might perpetrate theft, embezzlement or other internal fraud against the credit union. Even during tight labor markets like the one the...

  • Innovative membership solution saves Australian CU from falling membership

    CAIRNS, Queensland Australia - In the early and mid-1990s the Electricity Credit Union in Australia was down to 13,000 members and more and more were leaving. It had nothing to do with members being dissatisfied with the quality of service or the wide variety of financial products offered at good...

  • Credit union gets down to financial basics

    SAN ANTONIO - San Antonio City Employees Federal Credit Union is helping fight financial illiteracy here by joining forces with the City of San Antonio to create a financial education program. The partnership that created a basic seven-week financial literacy course for the city's Adult Basic Education and General Education...

  • Consumer advocacy pushed in Colorado Credit Union Association

    DENVER - Consumer advocacy has become a high priority issue for Colorado credit unions this fall with the formation of a CU-funded "Consumers United Association" designed as a lobbying and educational vehicle on issues related to "the financial well-being" of consumers. The new organization-considered to be the first of its...

  • CCUL'S Arnould goes from courted politico to CU lobbyist doing the courting

    SACRAMENTO, Calif. - Like many a politician before him, Bob Arnould has easily made the transition from elected official courted by lobbyists, to lobbyist courting elected officials. The jobs may be different - Arnould served in the Iowa Legislature for 17 years and is now the vice president of state...

  • Credit union marketing to youth seems to be growing

    MADISON, Wis. - Credit union resources for kids is growing. Whether it's a kids club newsletter, credit union links to the CUNA originated kids site called Googolplex or a special but limited checking account, more and more credit unions are catering to the needs of youth, according to CUNA's Credit...

  • Credit unions help First Union garner $3.4 million community development award

    CHARLOTTE, N.C. - In an interesting twist on the adversarial relationship between credit unions and banks in a state that has seen its share of suits filed against CUs by their for-profit counterparts, three credit unions are among the recipients of funding from First Union Corp. to help provide mortgages...

  • Credit unions lag other financials in full completion of important SAR section

    WASHINGTON-According to the most recent Financial Crimes Enforcement Network (FinCEN) Suspicious Activity Reporting Activity Review-Trends, Tips, and Issues, credit unions lag behind the other federal financial institutions in completion of the narrative section of the form. The review found that only 76.33% of suspicious activity reports (SARs) filed by credit...

  • Cuila offering Colorado CU members credit insurance products through SWBC

    SAN ANTONIO, Texas and DENVER - Southwest Business Corp. has been selected and endorsed by Cuila-a CUSO of more than 40 Colorado credit unions that finances auto loans for members through its indirect lending program- to be the exclusive provider of credit insurance from CRI for loans funded through the...

  • Personal touch, product diversity fuels CU's No. 1 return-to-member ranking

    PASADENA, Calif. - Servicing your market in today's fast paced society requires more than opening the doors and welcoming your members, says Pat Engel, board chair of Los Angeles Firemen's Credit Union. The credit union recently received a No. 1 nationwide ranking for total return-to-member for credit unions with more...

  • Penfield FCU's friendly wager pushes auto loan sales over the top

    Rochester, N.Y. - Penfield Federal Credit Union's auto loan sale campaign kicked the staff's competitive instinct into overdrive. "We have this auto loan sale every summer so we knew we had to come up with some way to keep everyone motivated," said PFCU Marketing Manager Alaina Stark. "We decided on...

  • Reich cancels CCUL convention speech, cites labor issues at hotel

    SAN FRANCISCO - Former U.S. Labor Secretary Robert B. Reich, scheduled to address the California Credit Union League's annual convention here, has cancelled his appearance because of ongoing labor strife at the downtown hotel where the conference is being held. "I have enormous respect for the California Credit Union League...

  • South African credit union movement small, but dedicated

    CAPETOWN, South Africa-David De Jong does not just go to his job as General Manager of Savings and Credit Cooperative League (SACCOL) Ltd. each day. He considers his work inspirational, and it is part of who he is both "politically and economically." Unlike in many countries, credit unions in South...

  • U.S. Central's image building efforts

    OVERLAND PARK, Kansas - U.S. Central CEO Dan Kampen wants credit unions to trust in the corporate network name, much the same way consumers have grown to trust slogans like "Intel inside." Kampen said consumers may not know exactly how an Intel chip works or even what it is, yet...

  • Understanding the Community Investment Fund

    WEST PALM BEACH, Fla. -The election year may be over but the National Credit Union Foundation wants your support-of the Community Investment Fund. Developed over three years ago as a better way for credit unions to invest and develop domestically and internationally, CIF was rolled out in January 1999. While...

  • Pacific Bay FCU members awash in flexible loan plans

    OAKLAND, Calif. - For many members of Pacific Bay Federal Credit Union, the financial institution may be their "field of dreams." And just like in the motion picture of the same name, President and CEO Leo Hooper believes that "if you build it, they will come." In this case, he's...

  • Nouhan named 2000 CUESr Executive of the Year

    TROY, Mich. - It wasn't an Oscar, but USA Federal Credit Union President/CEO Dorothy I. Nouhan felt like a star accepting the Credit Union Executives Society's engraved crystal Executive of the Year Award. "This is really a big `wow'," said Nouhan. "I feel like I'm at the Academy Awards." In...

  • Martin takes Mission FCU to $1 billion mark in six years

    SAN DIEGO-A lot of people talk about various chapters in their life, but few can outline them as distinctly as Ron Martin, CEO of Mission FCU in San Diego. The Cliff's Notes version of Ron Martin's biography includes the traditional 1950s and a childhood spent in Seattle. The defining `60s,...

  • CALPIRG, other leading consumer groups support attempt to reinstate California's surcharge ban

    SACRAMENTO, Calif. - Leading consumer groups in California and the U.S. including CALPIRG, U.S. PIRG, Consumers Union, California Reinvestment Committee, Consumer Action, Foundation for Consumer and Taxpayer Rights, and the Consumer Federation of America filed a friend of the court brief Nov. 6 in support of the appeal filed by...

  • Michigan takes a turn at revising its MBL rule

    LANSING, Mich. - The Michigan Office of Financial and Insurance Services (OFIS) is following the lead taken by other state regulators and is in the process of updating the state's member business lending rule to meet the statutory requirements of NCUA's MBL rule 721.1. The rule currently on the OFIS's...

  • NAFCU advocates OMB take a second look at CAP

    ALEXANDRIA, Va.-According to NAFCU, the final Field of Membership (FOM) regulation passed at the October NCUA Board meeting was not only overly vague, but also "substantially modified" enough for the Office of Management and Budget (OMB) to give it a second look. In a Nov. 2 letter to OMB's Alexander...

  • NCUA's e-com exams in full swing

    ALEXANDRIA, Va. - Credit unions are being hacked, you're just not hearing about it, said Joseph Cooper, president of Digital Defense, a Web security firm specializing in credit unions. Cooper said that only about 10% of all hacks are ever reported in the press. The public relations hit a company...

  • Navy FCU joins Marine Corps in celebrating their 225th birthday

    VIENNA, Va.-Navy Federal stopped just short of singing "Happy Birthday" recently for the Marine Corps' 225th birthday. The $12 billion, 2 million-member credit union's president/CEO Brian McDonnell; Senior Executive Vice President William Earner and other members of the credit union's staff and management were joined by the 32nd Commandant of...

  • Irish credit union calendar is a countrywide project

    DUBLIN, Ireland - For the past 17 years, the Irish Credit Union League (ICUL) has sponsored an annual credit union poster competition and used the winning posters in the following year's calendar the ICUL produces. This year the ICUL has decided to do things a little differently: the 2001 calendar...

  • Bushwick cooperative receives federal CU charter

    BROOKLYN, New York - After three years of planning, Bushwick Cooperative Federal Credit Union has received its federal charter from NCUA. The new community development credit union (CDCU), which begins operations in mid-December, has a field of membership of more than 110,000. This population is primarily composed of low income,...

  • Presidential toss up leaves NCUA board up in the air as well

    As Presidential candidates Al Gore (D) and George W. Bush (R) wrangle over who has won the presidential election, the make-up of the NCUA board stays just as uncertain. With Florida's presidential ballots hanging in the balance and Democrats questioning their validity, this race may not be determined for some...

  • A number of pro-credit union candidates win their races

    WASHINGTON-Even though the presidential race was still up in the air at press time, many seats in the House and Senate have been decided. "The great advantage for the credit union community has always been that both Republicans and Democrats have given credit unions equal support," NAFCU President and CEO...

  • Australian CU movement launches preferred capital instrument

    SIDNEY, Australia - Credit unions on the continent for the first time will be able to raise Tier One capital while retaining their mutual status through a preferred capital instrument developed by Credit Union Services Corp. Limited (CUSCAL). CUSCAL, a major service provider to 190 credit unions in Australia, developed...

  • After 35 years with Firestone Office FCU, thoroughbred horseracing's still Rush's first passion

    AKRON, Ohio - A conversation with Jeffrey Rush begins with a burst and picks up speed, urgent and unstoppable, like a thoroughbred out of the gate. Which is really quite appropriate, since thoroughbred horseracing is Jeff Rush's passion. Long before Rush, the CEO of Firestone Office FCU in Akron, Ohio,...

  • Service Centers Corporation's 2000 survey tracks Michigan CUs' ATM activity

    SOUTHFIELD, Mich. - Service Centers Corporation, a CUSO which operates SC24 EFT networks, has released the results of its 2000 Credit Union ATM Program Survey, which evaluates various ATM program strategies used by credit unions here. "We have always received positive feedback from the credit union community which has found...

  • NCUA board meeting could get sticky as buttons get pushed

    ALEXANDRIA, Va.-November's NCUA board meeting may prove to be almost as controversial as last month's when the community action plan and increased overhead transfer rate (OTR) were passed. One hot topic listed on the NCUA agenda is the always controversial NCUA budget. Both CUNA and NAFCU have railed about the...

  • Congress to return after elections

    WASHINGTON -Congress passed a continuing resolution through November 14, which President Clinton signed. Congress is expected to return seven days after the elections to carry out its unfinished business. Congress has a large pile of work to return to. They still have six appropriations bills to have signed into law:...

  • Snapshot of how states are using CIF

    California- establish educational programs with Richard Myles Foundation and publishing credit union material in other languages. Colorado- provide scholarships for Community Development Credit Unions, purchase teaching materials for the start up of Spanish classes specific to financial services, and support a student competition, "Match-Wits," in a public television station. Florida...

News

  • Missouri Mini-Renaissance Commission passes on recommendations to national commission

    ST. LOUIS - The Missouri Mini-Renaissance Commission, a statewide, ad-hoc group of eight credit union representatives formed to provide feedback to CUNA's national Renaissance Commission, has compiled and sent a list of 12 issues to CUNA it's recommending the national commission consider to enhance the value of federal and state...

  • Dooley new California Deputy Commissioner of CUs

    SACRAMENTO, Calif. - Elizabeth Dooley has been appointed Deputy Commissioner of Credit Unions at the Department of Financial Institutions by Gov. Gray Davis. Dooley has extensive knowledge of credit unions and the credit union industry. Since 1994, she has been employed as associate counsel for the California Credit Union League...

  • IN CONSUMERS' CORNER

    New Colorado CU consumer advocacy association goes to bat for financial well-being of consumers.........................Page 17

  • Washington State Div. of CUs adopts commercial arrangements final rule

    HELENA, Wash. - The Division of Credit Unions of the Washington State Department of Financial Institutions on Oct. 25, adopted a final rule on commercial arrangements. The new rule takes effect Nov. 25. It allows credit unions more flexibility to enter into prudent commercial arrangements with third parties to offer...

  • Ferguson, Maine CU pioneer, dies

    WESTBROOK, Maine - Alexander Ferguson, referred to as "Mr. Credit Union" for his contributions to the credit union movement in the state for nearly six decades, passed away Nov. 4. He was 96 years old. Ferguson became a member of the Portland Gas CU in 1941 after he emigrated to...

  • Michigan CU League begins revamping CU Act

    PLYMOUTH, Mich. - The Michigan Credit Union League is soliciting input from members of the league's governmental affairs and regulatory affairs committee as part of its first step in revising the state's credit union act. It was last updated in 1986. Lori Bahnmuller, vice president association services for the MCUL...

  • WALKING THE HALLS

    As vice president of state governmental affairs for the CCUL, Bob Arnould spends his time lobbying state elected officials on CU-friendly laws.............................Page 14

Letters to the editor

  • Overhead transfer rate out of whack

    The issue of the overhead transfer is one that I have probably spent as much time on as any single issue over a period of 20 years. I was involved in more studies, more task forces, more committee meetings and received more advice on this area than any other single...

Opinion

  • NCUA budget process needs review

    It's budget time at NCUA again, and the agency needs to take serious stock of how it can hold the line on both spending and personnel. NCUA also needs to afford credit unions some opportunity to substantively comment on the budget as it evolves. As it now stands, credit unions...

  • Don't tell me how to run my credit union!

    I've heard that phrase from more credit union CEOs than I can count over the years - and it's little wonder. No matter where you look, people are exercising their inalienable right to choose. I can pick from 31 flavors at Baskin-Robbins, have it "my way" at Burger King, mix...

  • Keeping pace in a global society

    Ours is an increasingly global society. With its power of instantaneous communication and freedom from national boundaries, the Internet is turning the world into a truly global village. Fueled by this new information and service delivery technology and the advent of regional free trade agreements, international borders are becoming blurred....

Publisher's Column

  • Credit unions are bank-like and much more

    It has become fashionable for certain credit union regulators to accuse credit unions of becoming bank-like. Is that necessarily a bad thing? Not really! However, the way the accusation is made shows an apparent unawareness of how credit unions are structured and how that structure also makes them very un-bank-like....

In Other News

  • MILESTONES

    WestStar Credit Union, Las Vegas, has celebrated 25 years of serving its members. Week-long celebrations were held at all three branches here. WestStar has $100 million in assets and serves more than 27,000 members. First Atlantic Federal Credit Union, West Long Branch, N.J., has celebrated it's 65th anniversary by hosting...

  • AWARDS

    Washington Credit Union League, Federal Way, has honored eight credit unions and two chapters with Dora Maxwell and Louise Herring awards during its 67th annual convention. Separated by category are the following Dora Maxwell award recipients: $100-$200 million-Yakima Valley CU, first place; Global CU, second place; and Tapco CU, honorable...

  • BRANCHING OUT

    North Jersey Federal Credit Union, Totowa, N.J., has celebrated the grand opening of its new main branch. Nearly 100 guests attended the ceremony. Guest speakers at the opening included Mayor John Coiro, state Senator Norman Robertson and Russell Clark, President/CEO of the Credit Union Affiliates of New Jersey. The new...

News Briefs

  • Nation's capital named identity fraud capital

    WASHINGTON - The nation's capital now has the dubious distinction of being named the identity fraud capital of the country, according to the Federal Trade Commission's first tabulation of identity fraud complaints. The FTC report shows that Washington, D.C., has a higher per capita incidence of identification theft than big...

  • CUNA annual report receives recognition

    MADISON, Wis. - CUNA's 1999 annual report supplement in the May 2000 issue of Credit Union Magazine received second place in the nationwide Ozzie awards for magazine design and creative excellence. The award was recently presented at Folio's 14th annual awards for excellence in magazine design in New York City....

  • Credit union turned thrift acquired by PSB Bancorp

    PHILADELPHIA - It's been a rocky "public" road for the former IGA Federal Credit Union, Feasterville, Pa. IGA FCU converted to a mutual savings bank in July of 1998 and went public last summer under the holding company Jade Financial Corp. PSB Bancorp announced that it will acquire Jade for...

  • Utah CU reps win political races

    SALT LAKE CITY - Seven Utah credit union representatives won political races Nov. 7 - five state legislative seats, one county commissioner, and one county council member. Doug Aagard (R), America First CU was appointed this fall to the State House of Representatives and was re-elected. Also from America First,...

  • Gariglio new CU Times Pacific Northwest Correspondent

    WEST PALM BEACH, Fla. - Credit Union Times is pleased to announce its new Pacific Northwest Correspondent Fran Gariglio. Gariglio replaces Jo McIntyre who has accepted a full-time position with an online business publication. Gariglio has been involved with credit unions since 1980. She worked with the North Carolina Credit...

  • North Florida Education CU "envisions" future

    TALLAHASSEE, Fla. - For North Florida Education Credit Union, the new year will bring on a new name. Effective January 1, 2001, the credit union will now be Envision Credit Union. "The name best reflects what we see as the important elements of our credit union-our use of technology combined...

  • Discovery Conference 2001 open for pre-registration

    MADISON, Wis. - CUNA Mutual Group's Discovery Conference 2001, which has the theme "Explore the Territory Ahead," is scheduled from June 20-23 at the Sheraton Centre Hotel in Toronto. The conference will feature national and international speakers, networking opportunities and practical tips to help credit union executives and managers enhance...

Tech Bytes

  • First Data to generate digital certificates

    OMAHA, Neb. and BOSTON - First Data Corp said it will team with Baltimore Technologies to produce digital certificates on smart cards for card issuers. First Data will use the Baltimore UniCert Certificate Management Systems infrastructure to build a certificate authority to issue, maintain and validate certificates used on chip...

  • PSCU's Easy2CUTechLink

    ST. PETERSBURG, Fla. - So far five credit unions have contracted with Payment Systems for Credit Unions for its EasyToCUTechLink, a call-center product that allows credit union's to support their online operations. The product links member to PSCU's technical support representatives. These representatives are on hand 24 hours a day...

  • USERS and Maxxar hook up

    DETROIT - The Maxxar Corporation is now a preferred provider of Natural Language Speech Recognition and Voice Response systems and solutions to credit union data processor USERS. Maxxar's Centrum 9000r will offer USERS' clients the ability to utilize Natural Language Speech Recognition, a feature that simplifies phone-based service by enabling...

  • Computer Consultants names president/COO

    SALT LAKE CITY - Credit union data processor Computer Consultants Corp. has named Charlene Whitener president/COO. Whitener returns to the company after having served as its director of operations from 1998 to 1999. For CCCorp. Chairman/ CEO Hugh Butler, the move gives him more time to stay active in credit...

  • CUShopper enters auto market

    GLENDALE, Calif. - CUShopper is getting into everything these days - auto buying is its latest venture. CUShopper has partnered with iMotors, a direct seller in the online automotive marketplace. Members can visit their CUShopper co-branded credit union Web site to search for and order the vehicle of their choice....

  • Open systems talk dominates re:Member Data conference

    SAN DIEGO - Open systems was a big focus at credit union data processor re:Member Data's Strategic Partner Conference held recently. Participants learned how the implementation of XML (extensible markup language) into re:Member Data's cuStarr core data processing software opens the system up to integration of third party products. XML...

  • Southwest Corporate FCU unveils online system

    DALLAS - Southwest Corporate FCU has launched TranZact, an online solution that allows its credit union members to download their monthly statements. According to the corporate, the services will assist CUs in closing out their monthly accounting faster. The product will be demonstrated at Southwest Corporate FCU's Economic Forum to...

  • EDS offers small business EBPP solution

    PLANO, Texas - EDS has introduced OpenBillExpress, a new electronic bill presentment and payment (EBPP) system designed for small to mid-volume billers. EDS said the system can be implemented in 60 days for less than $100,000. OpenBill Express was developed as a fully hosted Application Service Provider (ASP) service bureau...

  • Symitar behind Conductor

    RICHARDSON, Texas - Symitar Systems recently held here its annual users conference for its Conductor product. Symitar is now a subsidiary of Jack Henry & Associates. Mike Henry, CEO of Jack Henry & Associates, Inc.; Bruce Cormode, President and CEO of Symitar Systems, Inc.; and Kathy Hooker, Symitar Systems National...

Publisher's Notebook

  • E-mails made easy

    Reader feedback is so important to the editorial staff of Credit Union Times that letters to the editor are constantly encouraged. As a result, this publication receives and prints far more readers' letters than any other credit union publication. And there's always room for more. To make it easier for...

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