Credit Union Times Magazine March-22, 2006

In Other News

  • DONATIONS

    Greater Minnesota Credit Union, Milaca, raised more than $1,000 for Gillette Children's Specialty Healthcare through its Chain of Hearts campaign, a fundraiser coordinated by the Credit Unions for Kids program. The campaign raised funds through the sale of paper links and hearts that were personalized and linked together to form...

  • DONATIONS

    USA Federal Credit Union, San Diego, in partnership with the Armed Forces Financial Network, has donated $1,000 to the Fisher House at Naval Medical Center. The donation will be used for gift cards redeemable at any Department of Defense commissary for military families staying at the Fisher House. The Fisher...

  • BRANCHING OUT

    Delta Community Credit Union, Atlanta, celebrated the grand opening of its newest branch in Fayetteville at Summit Point. Special events were held each day of the six-day celebration, but the ribbon cutting ceremony was held on March 2. Delta Community recently received approval from the Georgia Department of Banking and...

  • MILESTONES

    Sandy Smith, president/CEO of Texas Federal Credit Union in Dallas, will be honored by her board and staff for her 20th anniversary with the credit union at its 59th annual meeting on March 29. Lacamas Community Credit Union, Camas, Wash., will have a yearlong celebration in observance of its 70th...

  • AWARDS

    SAFE Federal Credit Union, Sumter, S.C., honored outstanding employees at its annual employee awards luncheon on February 20. The employees were honored for their dedication and professionalism by nominations from peers or supervisors and became the CU's employees of the year: Rita Cody, volunteer of the year; Wendy Ballentine, teller...

News

  • Serving Hispanic Market Requires Asking Difficult Questions

    MONTEREY, Calif. - Credit unions that want to serve the Hispanic market should be prepared to ask themselves difficult questions, like whether or not their current members will feel comfortable standing in teller lines with large numbers of newly arrived immigrants, said CES Credit Union Vice President Kelly Schermerhorn, who...

  • Florida CU Takes Security Firm Up on Free Anti-Phishing Toolbar Offer

    TALLAHASSEE, Fla. - When fraudsters started spear phishing at board members themselves, Jeff Bond figured it was time to get even more proactive. That hack attack and others like it were reasons the IT director at $250 million Florida Commerce Credit Union took TraceSecurity up on its offer for a...

  • Sandia Lab FCU Serves as Live Lab for New Passageways Module

    ALBUQUERQUE, N.M. - Perhaps befitting a credit union whose founding SEG is one of the nation's high-tech pioneers, Sandia Laboratory FCU has stepped forward and become more than just a beta for Passageways - it's the alpha beta. The $986 million CU is beta testing the Indiana-based credit union intranet...

  • New Zealand Credit Union Members Buck Savings Trend

    AUCKLAND, New Zealand - Like the Americans, New Zealanders are not great savers according to the media. Not so fast, says Doug McLaren, CEO of the Association of New Zealand Credit Unions. He is frustrated with those newspaper and television stories decrying the spendthrift ways of citizens, because credit union...

  • Dollar Defines Six Key Issues That Will Shape Industry's Future

    MONTEREY, Calif. - Credit unions must address six key issues that will determine the future of the industry, said former NCUA Chairman turned consultant Dennis Dollar at the California Credit Union League's Big Valley Educational Conference. Dollar's six key issues include capital modernization, marketplace competition, cooperation among credit unions, the...

  • IntegraSys Wants to Give CUs a 360 Look at its Members

    FRISCO, Texas - Most credit unions have some sort of member relationship management system in place. And most are doing less with the data within it than they could, and thus missing opportunities to push new products and services out to their members. This was the rationale behind IntegraSys's recent...

  • March is Canadian Fraud Prevention Month

    TORONTO, Ontario - Credit unions, private sector firms, consumer and volunteer groups have banded together in Canada to highlight Fraud Prevention Month. Credit Union Central is working with the Fraud Prevention Forum, which is chaired by the Competition Bureau, an independent law-enforcement agency. Working on the belief that an aware...

  • Technology is an Art, Not a Science, Internet Expert Says

    MONTEREY, Calif. - Credit union executives need to start thinking of technology as an art rather than a science, said Internet entrepreneur Scott Klososky. Klososky shared his views on technology trends and how credit unions can use them to increase youth market share during the general session of the California...

  • Keesler Details Katrina Lessons

    BILOXI, Miss. - The Katrina property damage at the $1.4 billion Keesler Federal Credit Union could have been a lot worse and so could have loan write-offs, but there are plenty of lessons learned when it comes to disaster preparedness. "You know when the power went out, our backup generators...

  • S1 Targets Credit Union Industry, Says it Can Save Credit Unions Money on Internet Banking Costs

    ATLANTA - S1, traditionally a banking technology vendor, has its sights on the credit union market. The company has created a new credit union team to increase its penetration in the industry. The team attended CUNA's Governmental Affairs Conference and a recent Symitar users' conference to try and get the...

  • Advanced Content Management Systems Bring Enterprise Functionality to Credit Unions

    WASHINGTON - Like most credit unions, Bank-Fund Staff Federal Credit Union is awash in paper, from multi-page member account statements to mortgage loan applications. But if most credit unions find that managing paper files is at best a hassle, at Bank-Fund, it was a nightmare. Bank-Fund has $2 billion in...

  • Credit Union Gains From Bankruptcy Reform Not a Done Deal, Attorney Says

    MONTEREY, Calif. - Much was gained in recent bankruptcy reform legislation, but those gains will be lost unless credit unions fight local court interpretations that don't reflect Congress' intentions, says industry attorney Eric North. North, a San Jose-based attorney who provides educational Webinars for the California Credit Union League, addressed...

  • Cheney Cautions NCUA About Data Methodology During League Management Report

    MONTEREY, Calif. - The NCUA must take into account the different types of credit union charters during its data collecting initiative, said new California Credit Union League President Bill Cheney during the opening session of the league's Big Valley Educational Conference. Cheney covered a number of topics during the session,...

  • There Are Real People Behind Vantis CU's ATMs

    WINNIPEG, Manitoba - ATMs have often been blamed for decreasing human contact with bank personnel, making transactions cold and unfriendly. However, Vantis Credit Union is planning to change all that with video kiosks at its ATM sites. Live VCU representatives will respond to any of the 22,000 members asking questions...

  • ACB Acknowledges CU Political Fund-Raising Prowess; Urges Bankers to Mimic

    WASHINGTON-America's Community Bankers President and CEO Diane Casey-Landry highlighted the fund-raising ability of the Credit Union Legislative Action Council of CUNA and urged the bankers to compete. To illustrate her point, Casey-Landry held up a copy of a Credit Union Times article regarding CULAC's size and breadth of contributions both...

  • Just Like 2005, But Slightly Worse: CUNA Economist Predicts Even Lower ROA

    MONTEREY, Calif. - The economic forecast for 2006 means further tightening of the belt for credit unions, but a bleak rate environment doesn't necessarily mean an impending recession, said Chief CUNA Economist Bill Hampel, as he spoke at the California Credit Union League's Big Valley Educational Conference. Overall, Hampel predicted...

  • Corillian Chief Cites Focus on In-House Solutions, Smaller CUs

    PORTLAND, Ore. - Already dominant in the online banking space for big credit unions, Corillian Corp. is now adding a new focus down market while working to help all its clients, big and small, reach out to the millions of consumers who still eschew the online channel, its CEO says....

  • Dejardins Credit Union to Expand Services

    QUEBEC, Canada - One of Canada's first credit unions, named for one of the founders of the credit union movement, Desjardins Group, is looking to expand its business outside Quebec by opening a brokerage unit in Toronto and to sell insurance in Ontario if legislative approval is granted. Some provinces...

  • Open Solutions Closes BISYS Deal, Launches Two-Factor Authentication

    GLASTONBURY, Conn. - There has been a flurry of news coming from Open Solutions Inc. of late. The company recently announced its plan to handle two-factor authentication for online systems access. Vendors have been tackling two-factor authentication in a variety of ways; some relying on deeper questions to end users,...

  • NCUA In Action

    Turn to page 30 for complete coverage of NCUA's March meeting where it ruled on two community charter applications and an interim rule on share insurance coverage. It also reviewed its annual budget and its five-year strategic plan.

  • Symitar, OSI Lead the Pack in Top 50 CU Clients

    The nation's three largest credit unions still choose to do their data processing on their own in-house. In fact, seven of the top 50 CUs go that route. Putting them aside, Symitar Systems has the largest slice of the big credit union market with 14 clients. They are followed by...

  • Member Verification Service for UK Credit Unions

    MANCHESTER, United Kingdom - British credit unions have a new tool to fight money laundering while complying with Verification and ID Solution regulations required by the Financial Services Authority, the regulatory agency for all United Kingdom financial institutions. The first requirement of Verification & ID Solutions is to have sufficient...

  • NACHA to Test Bank-Provided Online Authentication And Private Payments

    HERNDON, Va. - NACHA, The Electronic Payments Association, will test online transactions in a pilot that requires consumers to authenticate their own financial institutions, and initiate private, secure electronic payments via their financial institutions' online banking Web sites. "As a result of the recent FFIEC guidance on authentication, financial institutions...

  • ACB Boosts Talk on CU Charter Choice, Charges NCUA with Stall Tactics

    WASHINGTON-America's Community Bankers listed among its priority issues for 2006 the Credit Union Charter Choice Act (H.R. 3206) and clearing obstacles to further conversions of credit unions to mutual savings banks. ACB First Vice Chairman Mark Macomber, president and CEO of Litchfield Bancorp in Litchfield, Conn., taunted NCUA as a...

News Briefs

  • CUNA Chairman Fires Back on Banks' United Front Against CURIA

    WASHINGTON-In response to a recent letter to Congress sent jointly from the three major national banking trade associations in opposition to CURIA, CUNA Chairman Juri Valdov, CEO of Northwest Federal Credit Union, urged Congress to reject the bankers' rhetoric. Valdov's letter to lawmakers came after the American Bankers Association, America's...

  • Minnesota CUs Continue Strong Fundraising Tradition, Raise $13,350 for CULAC

    WASHINGTON - Minnesota credit unions upheld their reputation of being strong fundraisers at CUNA's Governmental Affairs Conference held Feb. 26-March 1. Sixty-three Minnesotans joined the Minnesota Credit Union Network's Capital Club, contributing $13,350 to CULAC. In total, $56,560 was raised at the GAC for CULAC, the CU political action committee...

  • NCUA-FDIC Host Deposit Insurance Coverage Change Update

    WASHINGTON-NCUA Vice Chairman Rodney Hood and FDIC Acting Chairman Martin Gruenberg held a meeting last week to update consumer and financial services organizations on the upcoming changes to federal deposit insurance coverage. "I was pleased that the NCUA and FDIC joined together for such an important forum to discuss the...

  • More than 300 Credit Unions Jumped into Business Lending Arena in 2005

    WASHINGTON - In 2005, 310 credit unions launched business lending programs contributing to the 1,484 credit unions that were currently offering members such programs, according to Callahan & Associates, Inc. The rising number of credit unions offering business loans made the lending category the fastest growing lending area in 2005....

  • Siler Named CEO of Knoxville TVA Employees CU

    KNOXVILLE, Tenn. - Glenn Siler has taken over the reins as CEO of Knoxville TVA Employees Credit Union, replacing Bob Stone, who retired two weeks ago after 24 years as CEO. Siler has been with the CU even longer than Stone - 32 years. He started in the accounting department,...

  • Kansas Regulator Places Credit Union Group CU Under Conservatorship

    TOPEKA, Kan. - The Kansas Department of Credit Unions has placed The Credit Union Group Credit Union located in Lawrence, Kansas under conservatorship effective March 14. According to a release issued by John Smith, administrator, Kansas Department of Credit Unions, the day-to-day management and operations of The Credit Union Group...

  • North Dakota League CEO Larson Announces Retirement

    BISMARCK, N.D. - Capping a 37-year career serving the industry, Kermit Larson, the president/CEO of the North Dakota Credit Union League, is retiring from full-time work at the end of the month. Larson, 63, who joined the North Dakota trade group as a consultant in 1989 and in 2002 was...

Marketing

  • US FCU Sets Up "Ship" at Local Event

    BURNSVILLE, Minn. - Deciding to "be onboard" as title sponsor of a local fundraising event took on a new meaning when US Federal Credit Union created an eye-catching marketing installation. The credit union, participating in the local Burnsville Chamber of Commerce's major fundraising event - the Bite of Burnsville -...

  • Wescom Rolls Out the Welcome Wagon

    PASADENA, Calif. - In a tribute to its humble beginnings in 1934 as the Telephone Employees Credit Union, Wescom CU recently unveiled a restored 1934 Ford stake bed pickup truck and welcome wagon trailer. It debuted at the 2006 Susan B. Komen Race for the Cure of Breast Cancer. The...

  • Nothing Like a Harley to Raise Funds to Protect the Tax-Exemption

    ALBUQUERQUE, N.M. - On display at First Financial Credit Union is the 2006 Screamin Eagle Fat Boy Harley Davidson that the Credit Union Association of New Mexico will raffle. Tickets are $100 each and can be purchased at most CUs statewide, but the association will only sell 1,000 tickets. Ticket...

Regulatory/Compliance

  • NCUA Releases 2006 Regulatory Review

    ALEXANDRIA, Va.-NCUA recently posted to its Web site (www.ncua.gov) the regulations it plans to look at this year as part of its regular one-third review of its rules. NCUA goes through all of its rules every three years in an effort to keep them up-to-date and eliminate unnecessary burden. The...

  • Hood: Open Lines of Communications with Other Regulators on CUs and Business Services

    ALEXANDRIA, Va. - NCUA Vice Chairman Rodney Hood recently said he's willing and able to do what is necessary to be sure credit unions have the support they need to have vital business service programs. Hood spoke with members of CUNA's Business/SEG Services Task Force, at a meeting held in...

  • CUNA Makes Recommendations to OFAC on Enforcement Interim Final Rule

    WASHINGTON-While generally supporting the Office of Foreign Asset Control's interim final rule regarding economic sanctions enforcement procedures, CUNA did request a few adjustments. "CUNA supports OFAC's separate enforcement process for credit unions and other financial institutions, which is designed to take into consideration the role of such institutions, the nature...

  • Regulatory Flexibility a Top Priority for NCUA Vice Chairman

    BOSTON-NCUA Vice Chairman Rodney Hood told a group of 50 Massachusetts credit union CEOs in Boston that regulatory flexibility is a top priority for 2006. He explained to the Massachusetts Credit Union League's CEO Roundtable that the recent final rule would bring another 413 federal credit unions under RegFlex by...

  • NCUA Investigates Wallingford Municipal FCU

    WALLINGFORD, Conn.-NCUA is looking into Wallingford Municipal Federal Credit Union for violations of suspicious activity reporting regulations, according to a report from the Record-Journal of Connecticut. The news source reported that a former employee of the credit union was to be arraigned for stealing about $27,000. According to an arrest...

Special Report

  • Research Says Unbanked Still Use Credit Cards

    NEW YORK - A leading market research firm says that its surveys are showing that people without bank accounts are often still users of some sort of credit card, whether from a retail store, oil company or financial institution. Scarborough Research said its surveys of 200,000 adult consumers in 75...

  • Elan Picks Up Another One

    BOSTON - Elan Financial Services, a subsidiary of U.S. Bancorp, has purchased another CU credit card portfolio, according to the Kessler Group, the firm which brokered the sale. The $156 million 1st Pacific Credit Union, headquartered in Vallejo, California, sold its card program to Elan and entered into an agent...

People

  • VENDOR

    PSB, The Marketing SuperSource, a full-service, end-to-end marketing solutions provider, has named Christy Ortiz West Coast account manager and Natalie Taylor senior account representative. D. Hilton Associates, The Woodlands, Texas, has appointed Rosanna Russell as an account manager to join their marketing and advertising practice.

  • EAST

    Service Credit Union, Portsmouth, N.H., welcomes Rachel Hynes as a contact center representative I at its Rochester branch and Crystal Hammond as a member service representative I at its Pease branch. Anna Stone was promoted to member service representative III at the CU's Keene location. Leominster Credit Union, Leominster, Mass.,...

  • MIDWEST

    Home Town Federal Credit Union, Owatonna, Minn., has named Mitch Myre, vice president of operations. Community Financial Credit Union, Plymouth, Mich., recently hired Dawn Beswick as the Lewiston branch manager.

  • SOUTH

    SAFE Federal Credit Union, Sumter, S.C., welcomes Amy Wilson as the manager of mortgage services. Founders Federal Credit Union, Lancaster, S.C., promoted Al McIntosh to senior vice president, internal audit. Vystar Credit Union, Jacksonville, Fla., elected to its board of directors, P.E. (Ted) Hewitt, chairman; George R. Berry, vice chairman;...

  • WEST

    HawaiiUSA Federal Credit Union, Honolulu, elected Richard Sagawa, vice chairman; Maxine Joe, secretary; and Ronald Ogata, board member. Security Service Federal Credit Union, Colorado Springs, Colo., has promoted Melissa Grier to service center manager at its Briargate location. Wauna Federal Credit Union, Clatskanie, Ore., welcomes Carl Schmele, the CU's new...

Publisher's Column

  • Credit Unions Have to be Ready for Good, Bad or Ugly Publicity

    In Hollywood, all publicity may be good publicity, but that entertainment tenet certainly doesn't hold up in the financial services sector. Credit unions have to be careful to shape their perception in the press as consumer-friendly institutions that exist to advance the financial standing of their members. That's not an...

Opinions

  • How Can Technology Improve Your Credit Union's ROI?

    Strategic business decisions are either enabled or hampered by the available technology. Return on Investment is hampered if the technology investments that stem from the business decisions are not aligned. From configuring product and service offerings with the core system to extending those offerings through the integration of third-party applications,...

Tech Bytes

  • Jack Henry Selects RSA Cyota for Online Banking Authentication

    MONET, Mo. - Jack Henry & Associates has selected RSA Cyota Consumer Solutions to provide authentication for its online banking clients. Jack Henry will offer it to its 1,500 financial institution clients using its Internet banking systems. RSA's Adaptive Authentication technology analyzes online transactions and scores their potential fraud risk...

  • Empire Chooses VSoft Branch Capture Solution

    ATLANTA - Empire Corporate said it will implement VSoft's eDesk Capture, Image Archive, Research, Image Exchange products. Empire will also offer VSoft's Branch Item Capture solution to their member credit unions to help facilitate image exchange. VSoft's Branch Item Capture provides full-featured, image-enabled data capture functions. Through Empire's Internet-based cash...

  • USERS Chooses Andera for Online Account Opening

    VALLEY FORGE, Pa. - Credit union data processor USERS has partnered with Andera, Inc. to help USERS' credit union clients open and fund new accounts for their members online. Andera's popular New Accounts Online solution has been integrated with DataSafe, USERS' core processing system. USERS said New Accounts Online interfaces...

  • RSA Fraud Survey Indicates Consumers Want More Online Security

    BEDFORD, Mass. - RSA Security released key findings of its annual Financial Institution Consumer Online Fraud Survey, which surveyed over 400 U.S. adults about online banking authentication and e-mail fraud. The findings include the following: * 73% of account holders believe that financial institutions should replace username-and-password log-in with stronger...

  • Credit Unions Go Interactive

    ALEXANDRIA, Va. - While the number of credit unions with Web sites was up only slightly from 5,369 as of year-end 2004 to 5,523 as of year-end 2005, the number of interactive CU Web sites jumped dramatically. According to Callahan & Associates, NCUA year-end data show the number of interactive...

  • Cavion Partners with Andera for Automated Online Account Opening

    MOUNDS VIEW, Minn. - Cavion Plus has entered into a strategic alliance with Andera to add automated online account opening functionality for its credit union clients. Andera's New Accounts Online allows members to open new accounts, add products and shares to existing accounts, and fund those accounts online. Andera's product...

  • eCU Technologies Branches Out to Summit Users

    HARRISBURG, Pa. - eCU Technologies' online deposit system, UPost, now interfaces with the Summit core processing system. The interface is currently being tested at $505 million Purdue Employees' Federal Credit Union. This is a groundbreaking announcement for eCU Technologies as previously it has only worked with Symitar clients. eCU Technologies...

Letters to the editor

  • Blaine is Colorful and Quirky, But You Can't Question His Heart

    I just wanted to congratulate you on the selection of my favorite credit union zealot, Jim Blaine, as the Credit Union Times' CEO of the Year! Jim certainly "bleeds" credit union, and you couldn't have picked a finer man to honor, especially at a time of such unrest in the...

  • Don't Let Bankers Drive Our Business

    Wescom Credit Union and PSCU have proposed a new CUSO to buy and manage credit card portfolios. It is a service credit unions are by regulation allowed to undertake. The idea is brilliant. It keeps the credit card business within the movement. Of course it meets with great consternation by...

Quotes Worth Quoting

  • Quotes Worth Quoting

    "The issue isn't how home prices have increased in value which is often talked about, but that we've gotten there through questionable lending practices." - Dwight Johnston, WesCorp, vice president economic and market research, commenting on the possible effects rising interest rates may have on ARM borrowers' ability to afford...

In Memoriam

  • Longtime Credit Union Volunteer Eugene Ball Dies

    ALEXANDRIA, Va. - The credit union industry has lost one of its most respected volunteers. Eugene Ball, 88, passed away on Feb. 28. A military service was held on March 13 at Arlington National Cemetery. Ball, who spent 50 years in the military, joined the board of Pentagon FCU in...

Voting Poll

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