Virginia Credit Union League, Lynchburg, has named Jesse and Gladys Fleming the league's 1999 Volunteer of the Year, in recognition of their efforts in organizing the NCP Community Development FCU, a nonprofit financial cooperative that serves low-income families in the neighborhoods of Norfolk, Chesapeake and Portsmouth. In addition, Susan Adams, CEO of Richmond's Forenbord FCU has been named the 1999 Gene Farley Credit Union Professional of the Year. Patelco Credit Union, San Francisco, has been recognized by Dr. William Bryne of the Children's Hospital Oakland for its sponsorship of the Emergency Department Respiratory Care Center. The center has the most advanced medical technology available and will educate patients and their families living with asthma. Patelco CU has committed to raise $175,000 over a three-year period of which $75,000 has been raised in 1999. John Deere Community Credit Union, Waterloo, Iowa, has announced that Director Roosevelt Taylor has been presented with the Leonard Katoski Award in recognition for his volunteer contributions and commitment to Waterloo for over 50 years....

OSU Federal Credit Union, Corvallis, Ore., has announced the grand opening of its new Lebanon branch. OSUFCU has over $217 in assets and serves 31,978 members. Educational Community Credit Union, Jacksonville, Fla., has announced the opening of its tenth branch at Fleming Island. ECCU has $400 million in assets and serves over 65,000 members. Federal Aviation Administration Employees Credit Union, Oklahoma City, has awarded HBE Financial Facilities, a design-build firm, a $4.5 million contract for the construction of its new home office and retail space in Oklahoma City. FAA employees credit union has $167 million in assets and serves 30,006 members. Gateway Metro Credit Union, St. Louis, has announced the opening of its seventh branch in the Robert A. Young Federal Building. Gateway Metro CU has $80 million in assets and serves 16,180 members. Security Service FCU, San Antonio, has broken ground for its new corporate headquarters campus on La Cantera Parkway. SSFCU is utilizing an all-San Antonio development team and is projected to open in May, 2001. Dallas Teachers Credit Union, has contracted with HBE Financial Facilities, a design-build firm, to construct three new branch facilities in Lewisville, Irving and Plano, Texas. DTCU has $719 in assets and serves 137,173 members. Dupaco Community Credit Union, Dubuque, Iowa, has announced the grand opening of its new branch location in Galena, Illinois. According to President/CEO Bob Hoefer, the facility was built to better serve the growing number of members in Galena and surrounding communities. Dupaco Community CU has over $213 million in assets and serves 33,310 members Community Educators Credit Union, Rockledge, Fla., has welcomed Congressman Dave Weldon to speak to credit union employees at their weekly training/information session. Mr. Weldon's remarks covered a wide spectrum including gasoline pricing and politics in general in Washington, D.C. Royal Credit Union, Eau Claire, Wis., will be relocating its employee development and training center to the Farmers Store Office Plaza in downtown Eau Claire on June 1, 2000. This new space will enable RCU to conduct concurrent classes for new hires....

Sikorsky FCU's Tom Williams defends CU's decision to convert to state charter against small CUs' accusations.....Page 12...

STRATFORD, Conn. - He expected it to happen, and now that Tom Williams, president/CEO, Sikorsky FCU is hearing the rancor building among small area credit unions triggered by Sikorsky's filing with the state Department of Banking to become the first FCU in Connecticut to convert to a state charter (CU Times, May 3,) he is neither surprised nor daunted. It comes down to competition, Williams says. "I understand where they're (small credit unions) coming from," he told Credit Union Times, "but things change. If the small credit unions are concerned they can't compete with a larger state-chartered credit union, they should think about merging." Sikorsky FCU applied to the Connecticut Office of the Banking Commissioner and to NCUA for the charter conversion in late April. When the charter conversion is completed, the credit union will be known as Sikorsky Financial Credit Union. Its field-of-membership will include "persons who live, work, worship, volunteer, or businesses, partnerships, corporations or organizations located within the state of Connecticut with the specific exclusion of the existing fields of membership of: Amphenol RF Operation Employees CU, Inc.; The B.M.G. Credit Union Inc.; Bethel Stamford CU Inc.; Brand-Rex Employees CU Inc.; The Coca-Cola of Hartford Employees CU Inc.; The East Haven Municipal Employees CU Inc.; Enbic Company Employees CU Inc.; The Harborview CU Inc.; Heim Employees CU Inc.; Taylor & Fenn Co. Employees CU Inc.; and U.S. Baird Employees CU Inc." Of the 11 credit unions listed above in the FOM exclusionary clause, the largest-East Haven Municipal-is about $1.5 million in assets; the smallest Taylor & Fenn is $111,000 in assets. Kevin Stewart, president, Connecticut Credit Union League said the relative small size of credit unions in the state does not reflect CUs' lack of interest in growing, but rather the economic recession in the late 80's and early 90's which Stewart said changed the dynamics of the state from a manufacturing to a technology-based economy. "We're still seeing some of the effects of the recession," he said, noting that only last year the population in the state stopped declining and stabilized. The closing of many of the manufacturing plants in the state meant the loss of many credit unions' primary sponsor and the subsequent closing of many credit unions in Connecticut. In the five years Stewart has been with the league, he said the state has lost 33 credit unions. "A state without a growing population is limited in the number of potential small businesses out there for credit unions to take in as SEGs," Stewart commented. Stewart withheld comment on whether the league was for or against Sikorsky's conversion application because, he said, the league's position is any issue concerning field of membership is between the credit union and the state regulator. But he conceded that given the federal-to-state charter conversion activity around the country, "it is unreasonable to think Connecticut would be immune from it." Reactions to Sikorsky's plan were not only directed at the credit union. State Banking Commis-sioner John Burke was also the target of accusations such as he is more interested in attracting federal chartered CUs into the "state-charter fold," than in the effect the conversion will have on small state-chartered credit unions. Other credit unions wanted to know what kind of protection the commissioner intends to give other small credit unions besides the 11 included in the exclusionary clause. At press time, DFI Communications Officer Dave Tedeschi said Burke would not comment on the situation while the conversion application was out for the the 10-day comment period. It expires May 5. Williams said he thought it ironic that the small credit unions in Connecticut should be reacting the way they are to the news about Sikorsky's conversion plans. He explained that a few years ago, First Connecticut CU-the third largest state-chartered CU in the state with approximately $40 million in assets-merged with a smaller community charter CU which included five towns in its field-of-membership. "First Connecticut sent out postcards and went on cable television advertising the credit union's expanded service reach and residents' eligibility to join First Connecticut. We didn't complain to them or say what they were doing was unfair." First Connecticut's strategy though did help move along Sikorsky Board's decision to apply for the charter conversion, Williams admits. "We were late getting started taking in select employee groups," he said. "By the time we took in our first SEG in 1995, the small credit unions were eating us up. So when Sikorsky Aircraft began downsizing about two years ago, all the potential SEGs were already taken. All we're trying to do by converting our charter is survive and grow." Williams is sure if any other credit union in the state wanted to merge or convert their charter, state Banking Commissioner Burke would encourage them to apply because "he believes in open competition. He'll be as fair in making a decision for them as he has been for us." Marjorie Mitchell, manager, East Haven Municipal Employees CU said the 575-member CU has no interest in merging or expanding from being a plain vanilla CU. The credit union serves all employees and their families of the town of East Haven and offers besides savings accounts, limitted personal and car loans, vacation and Christmas clubs. It doesn't offer share draft accounts. Mitchell said the credit union considered merging with another credit union a few years ago, but the board decided against it because East Haven Municipal Employees was in good financial shape and saw no reason to change things. As for Sikorsky's conversion plans, Michell said she is neither concerned nor upset with them. "We're so confined here that we'd be almost isolated from any competition from them." In Williams' book, that shouldn't stop a credit union from expanding its product offering. "There's no such thing as loyal members in our industry, they go where they can get the best products and services, even if it means to a bank," he said. "If credit unions remain small for the sake of remaining small but don't offer competitive products and services, they're not helping their members. They're doing them a disservice." -...

SANTA MONICA, Calif.-CUSO Web sites are challenged to provide financial information to their CU member/investors so they won't go surfing elsewhere, but where are they getting the content to fill the site? Ken Davis, director of sales for GoInvest.com here is hoping more CUSOs and credit unions will discover the four-level content base of such information his company provides. "CUSOs are a target market for us, and I'd sure like to have more of them know about what we do," said Davis. A 20-year veteran of the securities business, Davis said, "What we have isn't gimmicky. It's solid information that is available elsewhere, but you'd have to collect it from various sources. What we do is bring it together in one place. I think there's value in that now, because of information-overload. There's more than enough to satisfy 90% of investors." Right now, the only CUSO using GoInvest is XCU Capital (xcucapital.com) but Mark Allen, president said that they had been working with GoInvest.com for six months now and was very satisfied. "We right now on Level 2 (Level 4 is the most complex, 1 the least) and I think it's a great way to provide information at a reasonable price. The cost is around $20,000 per year," said Allen. Allen said that the link on the CUSO's page goes directly to GoInvest and that the transition is relatively transparent. There is a link for each of the 11 credit union's working with XCU Capital and the CU identity is carried over. He's pleased with the feedback, he said, because they haven't done any aggressive marketing yet to promote the link. "At first, we just wanted to make sure everything worked right. Now, we'll start promoting it, and the separate CUs will start as well." Davis got lucky, he said, because he got XCU Capital as a client through a "cold call." "It just goes to show you that if you have the right product at the right time, the cold call still works," he laughed. Now that he's become aware of CUSOs and credit unions and met and spoken with several managers, he's impressed with the dedication they have to serving the needs of members. Next up for the site is to implement on-line trading, he said. -...

Long-time Wisconsin CU official Tom Knabel retires after more than a quarter of a century of CU service............Page 18...

UNIVERSAL CITY, Texas-The multi-taskers at Randolph-Brooks FCU have their hands full these days; and they couldn't be happier. The 46-year old credit union that emerged from the Brooks Air Force Base has become a $1.2 billion financial institution that serves some 164,000 members. They made their success the old fashioned way, said Randy Smith, the CU's president- through consumer lending and solid member service- but that's just about the last thing they'll do the old-fashioned way. The new business paradigm has met the old credit union philosophy, and now RBFCU is ready to make money the new-fashioned way, but with a CU twist. One of the last billion-dollar CUs that hadn't formed a CUSO (credit union service organization) Smith explained that yes, he came late to the party, but it's better to be late than let the good times pass you by. They will make up for lost time by doing it right: by not having to undo, redo or make-do with plans and strategies that are formulated in a hurry and have to be jury-rigged later on. "Sometimes we may take too long to make decisions on new programs and products," said Smith (they just now implemented a debit card program). "But I've also seen credit unions that have formed CUSOs and didn't really know what they wanted to do with them. Sometimes, they get into things too soon, and they pay a price for that." Smith isn't just referring to start-up costs and personnel expenditures, either. He means when a thing falls flat on its promise and disappoints members, the resulting bad word-of-mouth can take almost forever to overcome. So he's unapologetic about taking a long time (years, in fact) to form a CUSO. But the driving force is that paradigm; that credo that credit union members are out there not waiting, and if their CUs don't offer up what they want, they will have to go elsewhere. Rather than letting competitive ear driving the machine (although it may be an element to any tech-driven business plan) the braintrust at RBFCU chose to meld the tried and true with the hip. In forming Randolph-Brooks Services Group, the wholly-owned CUSO, they are meeting a challenge they set for themselves, as that has always been their best benchmark, said Smith. "I've seen how others have done it and I always thought we could do it better, faster, cheaper," he said. The `tried and true' element comes from CUNA Mutual Insurance Group, as the CUSO will continue to market the mutual fund products and financial planning services of Members Financial Services, and the `hip' comes from the excitement the planners express about the importance this venture has to the CU's future. "Most credit union planning is, `how do we get through the next six months?' and some don't see any sense in looking past two years," reflected Smith. "And while we can't presume to know what the world will look like in five or 10 years, I see these young kids today and I have to wonder about the future of credit unions. We need to market relevant services to the next generation even while we service their parents' needs." "We've been lucky. Our revenue is solid. But I look around and see the consolidation in the financial sector and I know we can't survive on our present offerings alone. You can't make it forever on auto loans and other consumer lending. We need other revenue streams," said Smith. That revenue stream will come from marketing insurance products like long-term healthcare, auto and homeowners and the full-range of stocks, bonds and mutual fund investments the CUSO will offer, said Jimmy Junkin, senior VP of finance. These products bridge the interests of Baby Boomers and their Gen-X children. And the CUSO would bring members to the one-stop shop, credit union style. "I know change takes time, but we in credit unions don't make it easy enough for new ideas to go from concept to completion," he said. Junkin is on the CUSO board, along with Brooks, Ron Barrett, SVP of consumer lending, John Kelly, SVP of marketing and Roger Zearfoss, SVP of mortgage lending. He's been a promoter of the CUSO idea for a long time. Junkin warned that while speed is now important, they aren't writing that new paradigm plan just yet, and with good reason. They need a CEO before a business plan is written. "Why tie a CEO to a plan he (or she?) had no opportunity to contribute to? "A candidate list is whittled now to only two or three, and a selection is imminent, he said. They avoided making a mistake like having a plan the chosen CEO might not love by changing the way they think. (That's the hip part, too.) But they came to that knowledge the old way, by seeking out experts who taught them what they had learned by trial and error. "We went to a CUNA seminar on CUSOs in New Orleans, and there we met Bob Dorsa (president of NACUSO) and Guy Messick (NACUSO attorney) and later we hired Bob to consult with us," said Junkin. The three days Dorsa spent with them resulted in formulating the criteria for the CEO position, and that has helped during the interviewing stage. "Oh, the timing is just right," said Junkin. "There's so much unrest in the financial world, people, and I mean our members, will be able to look to us as a reliable source, a trusted source, and the CUSO operations will be completely integrated with the credit union." The first integration will be in transferring the current book of business over to the CUSO. That's $25 million (assets under management). That `integration' mindset, the seeming invisibility of the CUSO and it's meld with the CU, what Junkin referred to as "in sync thinking," is very new-age talk, especially for a traditional CU- one whose board is made up of mostly retired military and civil service personnel. But there's that new paradigm again. "The only difference is legal," Junkin said. "To the members, these services come from the credit union, but that's a double-edged sword. If we don't get it right..." The big claim that CUs have traditionally made is that a credit union does all it does for the sake of members. "That we provide services and products at less cost than taxable entities. We've got to fulfill that promise." Promises made must be kept, he said. And like Smith, Junkin sees the inter-generational pull in the membership. Being ready with a product menu that younger, more tech-cozy members will be expecting to see has to be part of a CU's overall plan. Kelly's four-person marketing department is doing the multi-tasking dance right now, juggling a bunch of new product roll-outs. They will soon start generating the introduction of the CUSO's services throughout RBFCU's 12 branches and its Web site (RBFCU.org). "We're really pumped on this CUSO. We think it's exciting." The plan of attack will be a blend of the old reliable stuff and the new stuff (sound familiar yet?). "We'll do the classic treatment," said Junkin. "We'll promote through the CU newsletter, the Web page, and break it together with in-branch merchandising and the usual point-of-purchase stuff, brochures, and posters. But the idea is not to overwhelm members. My point is that if it's well done, the members will come. We've had great success in the past, and it's true: here, we take our time and get it right." One more thing, Kelly said in closing. "We'll come up with a new name. Randolph-Brooks Services Group? Members will not understand what that means." The new paradigm name search is on. -...

SACRAMENTO, Calif. - The state Assembly Banking and Finance Committee Monday April 24 unanimously passed a bill A.B. 2503 that amends sections of the state credit union code and one section of the state Insurance Code relating to financial institutions. Sponsored by the California Credit Union League and introduced in February by state Assemblyman Darrell Steinberg (D-Sacramento), A.B. 2503 originally included language dealing with electronic signatures. Bob Arnould, vice president state government affairs for the league said that provision was taken out of the bill because "it would have required additional work and held things up." He noted the league is thinking about introducing a separate bill on e-signatures before the legislature adjourns Aug. 31. If the league doesn't get to an e-signatures bill this year, it plans to revisit it next year. The amended version of A.B. 2503: * gives the commissioner of the Department of Financial Institutions "super wild card authority" to allow state-chartered credit unions to engage in any activity allowed other licensees under the commissioner's authority-banks, thrifts, trust companies-and for state-chartered credit unions in any other state. (Existing CU law gives the commissioner "wildcard authority" to permit state-chartered credit unions to engage in any activity authorized by law or regulation for federal credit unions.) * expands the types of funds the DFI commissioner can consider as equity capital to include member entrance fees, dues, fees and assessments paid by the member to the credit union excluding fees charged in connection with member share accounts or loans by the CU's board of directors or approved by the DFI commissioner. * gives state chartered credit unions the authority to sell the same types of insurance products now allowed banks to sell as a result of the passage of the Gramm-Leach-Bliley Act, including fire, casualty and individual life insurance (state chartered CUS can currently sell health, accident and group life insurance.) A.B. 2503 further allows a credit union to become a member of any organization(s) composed of financial institutions or nonprofit organizations (existing law permits a state-chartered credit union to become a member of any organization(s) composed of credit unions, credit associations or chambers of commerce.) It also permits a credit union to accept as a member those persons who purchase a membership in the CU as provided in the CU's bylaws. (Existing law allows a credit union to admit to membership anyone who qualifies for membership by payment of either an entrance fee or the purchase of one or more shares of the CU.) Bob Arnould, vice president of state government affairs, CCUL described A.B. 2503 as "an update bill," not a housecleaning bill. He explained that late last year the league asked credit unions to send in their ideas about those items of the credit union code that needed to be updated. Among the diverse ideas the league collected were those concerning credit unions in the state having parity with banks' ability to sell insurance as a result of passage of S.900. A.B. 2503 now goes to the state Assembly Appropriations Committee. At press time, Mark Lowe of the league said not date had been set for a hearing on the bill. Arnould does not expect any opposition to the bill in the Appropriations Committee and described the hearing as "perfunctory." Looking down the pike, he said there are signs the equity capital provisions of the bill could run into obstacles when it reaches the Assembly and Senate banking committees. Arnould said the California Bankers Association sent a letter to both committees expressing its opposition to the portions of A.B. 2503 concerning equity capital and "super wildcard authority" Specifically the CBA said credit unions shouldn't be able to go beyond their member base to get capital because their not-for-profit and don't pay taxes. -...

ONTARIO, Calif. - Dave Maus, president/CEO of Public Service CU and current CUNA chairman, has joined the board of directors of CO-OP Network. Maus will represent the former CU Link Network, which was acquired by CO-OP Network last year. "Credit unions are striving to develop a national presence and CO-OP Network is helping to lead the way. I've watched CO-OP Network grow from a small group of California credit unions back in 1981 to become the No. 1 credit union EFT network in the country..." said Maus, who was elected for a one-year appointment. Maus also recently joined the board of Internet solutions provider cavion.com, Colorado Springs. Another CUNA leader, CEO Dan Mica, recently joined the board of Internet banking provider FundsXpress....

WASHINGTON - Ray Springsteen, vice president of business development at Callahan & Associates has been named to the board of directors of both Callahan & Associates Inc. and Callahan Financial Services. Springsteen, 29, has been with Callahan & Associates since 1993. He has been involved in all aspects of the company's products and services including serving as publications manager and director of marketing. Springsteen was also instrumental in developing many of the company's financial publications and the company's Web sites, and he helped launch Peer to Peer. The credit union financial anaylsis software program allows credit unions to assess their financial performance in areas of their Call Report data and compare it to the performance of other CUs in the country....

VALLEY FORGE, Pa. - Dave Schlenker, president of credit union data processor USERS here, has resigned to join e-Profile, a subsidiary of Sanchez Computer Associates. Schlenker will be reunited with Greg Derkacht, who just last month resigned as president of Fiserv's Credit Union Systems Division to head up the e-Profile unit. Derkacht is also a past president of USERS. Oscar Mireles, USERS' Chief Operating Officer, was named acting president of USERS. Fiserv CEO Les Muma said he wasn't surprised by Schlenker's move, given the past working relationship between Derkacht and Schlenker....

SACRAMENTO, Calif. - Four more large federal credit unions in California have applied to the state Department of Financial Institutions to convert to a state charter, as of the week of April 24. The four credit unions are: American First FCU, La Habra, $375 million (filed April 20); Rockwell FCU, Downey, $500 million (filed April 4); Water & Power FCU, Los Angeles, $325 million (filed April 5); and Whittier Area FCU, Whittier, $165 million (filed March 31). That brings to eight the number of federal credit unions in the state that have applied for charter conversion so far this year. By this time last year, there were six....

TALLAHASSEE, Fla. - After four unsuccessful consecutive unsuccessful tries, the Florida legislature May 2 passed a bill, supported by the Florida Credit Union League and other consumer advocates, that will bring an end to title loan abuses. H.B. 301, sponsored by State Rep. Bill Sublette (R-Orlando) was passed unanimously. The state House of Representatives passed an identical measure a few weeks ago, also by a unanimous vote. As a result of the legislation, title loan interest rates will be limited to 30% APR (a statute passed in 1995 allowed title lenders to charge up to 264% per annum.) Title loan stores also will be required to be licensed and regulated by the Florida Department of Banking and Finance. Gov. Bush has indicated he will sign the bill. Rep. Sublette sponsored similar title loan legislation three times before this year's measure. The earlier bills were successful in the state House but consistently died in the state Senate. This year though, Sublette's efforts were supported by Senate President Toni Jennings (R-Orlando)....

LOS ANGELES - AFTRA-SAG FCU here passed a resolution to aid its members who are involved in the nationwide strike against the advertising agencies and producers of radio, television and Internet commercials. The American Federation of Television and Radio Artists and the Screen Actors Guild, two of the CU's main sponsor groups, announced earlier this week their plans to strike. The groups feel the producers and agencies are trying to limit commercial actors' income by eliminating "pay-per-play" policies in broadcast television and refusing to implement "pay-per-play" in the cable realm. The credit union announced that it would allow 90 day loan payment deferments for all members of the CU with certain loan types in good standing. "The credit union recognizes that a work stoppage could be tough on a lot of our members. Commercial work is the bread and butter of this industry," said AFTRA-SAG CEO Glenn "Skip" Ludwig. "Skip-a-payment promotions similar to this deferment that coincide with breaks in employment are a common credit union practice," said Ludwig....

*...

AUSTIN, Texas - Vought Heritage FCU, Grand Prairie has become the largest federal credit union in the state to receive approval from the Texas Credit Union Department to convert to a state charter. Texas Credit Union Commissioner Harold Feeney approved the $330 million, nearly 53,000 member credit union's application on Friday, Apr. 28. Vought Heritage's President/CEO Jim Gray said the credit union applied for the charter conversion late last year so it would have the ability to expand its field-of-membership in Tarrant and Dallas counties. Unlike California which has seen eight federal-to-state charter conversions so far this year, Vought's conversion is the tenth since 1996, the CU Department reports....

DALLAS - It's hard enough for a new printed publication to gain a large following, but a Net-based finance publication faces even greater challenges. The Web is an easy and cheap way to reach people with an editorial product, but at all times those people are just a click away from leaving. So how do you keep them interested? "We wanted to build an editorial base on consumer finance and deliver it through a channel that had the right nodus and integrity-and that is credit unions," said Thomas White, CEO of c2future.com, the publisher of eMoney Digest, a weekly online personal finance magazine for credit union members. "Banks are just not customer driven. They're more like large corporate goliaths. They're faceless and nameless, whereas credit unions have a personal relationship with their members," said White. So step one was down. They found the conduit (credit unions) to deliver the product. But once you get there, you need to get and keep credit union members' attention, said White. Afterall members can go to any one of the hundreds of personal finance sites that have cropped up as the Web has empowered Americans to become their own financial advisors and stock brokers. So c2future.com did a number of focus groups to find out what CU members were looking for in personal finance editorial. For one, the company found out that personalizing the information by region is a plus. Also, the magazine is geared to be more digestive than a Money magazine said White. White said financial magazines like Money can intimidate readers with its large editorial whole. He said eMoney Digest is geared to be "digested" in five minutes if that's all the time a member has. "Right now we have great read through. Twenty-five percent of our audience reads through. That's a pretty loyal following," said White. c2future.com said approximately a half a million credit union members are reading eMoney Digest, which they get to via their credit union's Web site. White said the goal of eMoneyDigest is to educate members, while also helping the credit union with one of the cheapest marketing channels-e-mail. "The FDIC came out with a report that 98% of the 50 largest banks are capturing customer e-mail addresses. E-mail marketing is 98% cheaper than other avenues, and besides being cheaper it can be targeted to the people you know are driving your business. Credit unions are behind the game in this area," said White. When members register for eMoney Digest they submit their e-mail address, allowing c2future.com to track who is reading the magazine. White said privacy isn't an issue because e-mail addresses aren't being sold to third-parties-they are only available to its credit union clients. White said besides the ability to market to their members, the credit union can use the e-mail channel to alert members when a key credit union political issue arises. eMoney Digest runs six stories per week, including three feature stories, and three columns. It also has an agreement with Knight Ridder to pick out relevant feeds on personal finance issues. To sweeten the pot for readers, c2future.com has just announced that it will be giving away $5,000 a week to a credit union member who reads eMoney Digest. "We have created a unique technology that allows us to do an instant click and win similar to the way you twist off the cap of a bottle and see if you're a winner," said White. Basically a random number is put into a c2future.com database. When a reader launches eMoney Digest they are assigned a number, if it matches they receive a pop up message alerting them that they have won a prize. The member is then sent an e-mail with the details. "We're not sure how long we're going to be doing it, but it will be for a while. In the scheme of things $5,000 a week isn't that much considering all of our readers," said White. c2future.com is planning on unveiling two more online magazines later this year that will be focused on specific age groups. -pgentile@cutimes.com...

ATLANTA- CheckFree has announced that BlueGill Technologies, a competing bill pay firm it acquired on April 28, will form a new operating group within CheckFree's Software Division. The new group, named CheckFree i-Solutions, will provide integrated software and services to accelerate business-to-consumer and business-to-business electronic billing and payment and statement delivery applications. CheckFree said the new group will leverage electronic bills and statements as interactive conduits to customer relationship management, marketing and service applications. What was BlueGill's i-Series software solution suite will now be marketed under the CheckFree i-Solutions brand, and will be integrated with CheckFree's Internet distribution and payments technology infrastructure, as well as CheckFree's integration and professional services offerings. -pgentile@cutimes.com...

LOS ANGELES - Hughes Aircraft Employees FCU is the latest credit union to go wireless-and the credit union did much of the tinkering needed to go wireless on its own. The credit union will offer members access to its Paymaster DirectT home branching system via the popular Palm VII personal digital assistant and the Palm.Net service. "Back in September of 1999 I purchased my first Palm VII and was pretty excited about the ability to wireless. I just thought it would be a terrific addition to our home banking capabilities," said Rudy Pereira, senior vice president and chief technology officer for HAEFCU. Little did Pereira know his inclination to go wireless would become an industry trend. In just the last month Texans FCU, USE CU and The Golden 1 CU have all unveiled wireless services. The unique aspect of HAEFCU's wireless initiative is that it's not sending members to a scaled down version of its Edify Internet banking solution. "We developed a code to the backend of our Concentrex platform. We've put all the functionality of the home banking system on the Palm. So that's a little unique. It speaks to having a back-end solution open enough to bring in all the information needed for home banking," said Pereira. "We didn't have to create a wireless platform. We're making API (Application Program Interface) calls directly to the back-end," said Pereira. Pereira said the credit union began the coding in February and had the application done in just two months. Members can download the Web clipping application for Paymaster Direct from HAEFCU's Web site at paymaster.org. The Palm.Net service gives members wireless access from over 250 metropolitan markets. -pgentile@cutimes.com...

INDIANAPOLIS - Credit union data processor re:Member Data is teaming up with the Riley Hospital for Children in a fund raising effort that will award a Harley Davidson motorcycle to one re:Member Data customer at the data processor's July 19-22 2000 Technical Conference. re:Member Data employees participate in charitable events with Riley Hospital every year. The Harley Davidson campaign is the largest contribution made to the hospital and the first to involve customers. If the winner isn't a motorcycle rider, the credit union can use the motorcycle in their own promotional campaign, contest, raffle, etc. "A lot of the business we receive is by word-of-mouth recommendations. This contest rewards our customers for their referrals and is a way for us to express our appreciation to them for their continued business," said Terri Renner, CEO of re:Member Data....

SOUTHFIELD, Mich. - Service Centers Corporation, Michigan's only credit union-owned shared branch and ATM network, has launched an enhanced online home banking and electronic bill payment solution. Called PC Branch, the new service is available through an agreement SCC made with Online Resources & Communications Corp., an Internet solutions firm located in McLean, Va. "Our research showed that credit unions were very interested in offering a processor neutral home banking and electronic bill payment service to their members," said Dan Balagna, SCC's president and CEO. The new service will be offered through the same on-line connection to SCC's switch which also supports shared branching and EFT network services. At press time four credit unions-Bell Com CU, Chief Pontiac FCU, First General CU and Dearborn Schools CU-have signed on for the service. Six more are scheduled to bring the service online shortly. PC Branch includes all aspects of home banking and electronic bill payment, including member registration, merchant services, payment processing, inquiry resolution and technical support. Members can access up to 12 accounts on an expanded menu via SCC's existing interfaces with credit union data processors....

BOCA RATON, FLA.-Members Insurance Services, Inc., the CUSO formed by six credit unions to provide insurance products for their collective 250,000 members celebrated their opening here with a ribbon cutting ceremony on May 5th (CU Times, April 12). Barry Hughes, executive vice president of IBM Southeast FCU, one of the catalysts in forming the jointly-owned CUSO told Credit Union Times that "When the government decided to allow financial institutions to play in the insurance field, a group of us visionaries knew that this was the next step." The CUSO's Web site is now up and running at (membersinsuranceservices.com)....

FEDERAL WAY and TACOMA, Wash.-Glenn Christensen will be leaving his position as the Washington CU League's service corporation, League Services, Inc., VP/COO to become president of a newly formed venture that will specialize in offering technology asset management service to credit unions. A joint venture of Telco Community CU and Woodstone CU, the operation will spearhead joint technology initiatives among credit unions, Christensen told Credit Union Times. To start, both CUs will outsource host systems management, network support, telecom management and e-commerce development to the CUSO. "Right now, it's called `the no-name CUSO,' but we'll remedy that soon enough," Christensen said, adding that the joint venture is still mulling over its structure-to-be. "We might go with a CUSO or a LLP structure. We're still looking at the right format." He's very sure, however, about its purpose. "It's becoming so expensive for credit unions to compete on the tech-front. Things change so fast. We'll keep out eyes open for ways we can do things jointly with other credit unions. It'll make us more competitive, and that'll help us remain viable."...

None...

MADISON, Wis.-The sea of change taking place at CUNA Mutual by its 49% stake in Members Development Company (the remaining 51% is owned by 31 CUs and six CUSOs) continues as the venture is on the verge of making its first foray into unchartered waters, said John Henry, president (CU Times, March 15). Having just concluded the second board strategy session, Henry said that all the group's stated initiatives were discussed and are now prioritized. "We spent two days talking and we trimmed the list. There's some due-diligence to be done but work may begin in as little as 30-days. Right now, I have to keep things close to the vest. What I can say is that everyone is interested in becoming the aggregator of credit union information together with CUNA Mutual." The data mining capabilities of the millions of financial records held by the combined entities is enormous, but the CU standard of maintaining the privacy of member information will be foremost, Henry assured. The formerly-staid insurance giant has taken on a more flexible approach to new arrangements with CUs and CUSOs, he said. "The last five years have seen an evolutionary process take place. We're no longer just tied to proprietary products. In the member service area we now have an open architecture. We see that credit unions are the point of distribution; that the new financial marketplace and the dotcom world have changed everything and that has recultured CUNA Mutual. It's not your Grandfather's insurance company anymore." - caburger@cutimes.com...

Mike Welch raised an important issue in his column "Better way needed to appoint NCUA Board members" (May 3), in which he clearly stated some of the shortcomings of the political patronage system. Despite its imperfections, overall the system has served Americans well. Presidential appointees who oversee federal agencies such as NCUA ensure that they are the most safe and sound in the world. Regardless of political party, Presidents have the right, if not the obligation, to place persons who support their agenda into positions of leadership. These people work for the President to advance the goals and ideals that encouraged a majority of American voters to support and elect him. While the President has the ability to select people to direct government agencies, there remains a strong system of checks and balances. For example on the NCUA Board, multiple political parties must be represented; and board members can only serve one term after being confirmed by the U.S. Senate. Similar limitations are in place for other federal boards that are nominated by the President and subject to Senate confirmation. It is true that the anticipated NCUA Board nominee Geoff Bacino, a Democrat, would face confirmation in a Republican-controlled Senate. However, remember that Senate Banking Committee Chairman Phil Gramm (R-Texas) was asking the Clinton Administration for a new NCUA Board nominee late last year and expressed his willingness to consider holding confirmation hearings. The Senate confirmation hearing would give credit union leaders throughout the country the opportunity to work with all 100 Senators, including the Senators seeking re-election in November. Credit unions would have another vehicle for showing their increasing influence in the national political process. Mr. Bacino knows credit unions, as does his family. He would join two NCUA Board members who understand how credit unions serve their members. Credit unions have been seeking new leadership since December 1993, and he may be our best opportunity for that new leadership. Mr. Bacino deserves a fair opportunity to be considered by the U.S. Senate and credit unions. David Chatfield President/CEO California Credit Union League...

WORLD WIDE WEB - Credit Union Times' third annual credit union Web site contest, the eAwards, is now open for entries....

Since I came on board at NAFCU, I have become a student of credit unions and their issues. To date, it's been a fascinating experience: I've found that credit unions and the people within them are vital, vibrant and passionate about the financial cooperatives they've built and nurtured. My observations have also led me to believe that there are key issues that must be addressed within the credit union community (and the sooner the better) to ensure that the passions of credit union people will continue to be focused on the nurturing and growth of vital and vibrant credit unions throughout the country. The top key issue, in my view, is ensuring that the federal charter remains an attractive and viable alternative for credit unions. Doing so makes certain that there is an alternative available to state credit unions - an option that strengthens the credit union community. The strength is rooted in the very reason why the federal charter was first established in 1934 - to make it easier to charter credit unions across the nation, so that more and more consumers could have access to credit union services. Under Pressure There is little question in my mind, however, that the strength of the federal charter is under pressure. An indication of that pressure is the growth in the assets of credit unions that are changing from federal to state charters. Since 1997, the average assets of these credit unions have more than doubled. That figure implies that the most progressive credit unions-those that are dedicated to expanding services to more Americans-are becoming increasingly less content with the powers and rewards available to them as federal credit unions. When these credit unions have been queried as to why they have taken this action, their common (and almost uniform) response involves: * Specific powers authorized under a particular state's law that are either unavailable or only available on a restricted basis under the federal statute, or * State practices that serve to enhance membership growth or provide a more favorable business climate. Early into my tenure at NAFCU (in fact, within the first two weeks of joining the association as president and CEO), I hosted a meeting of credit union representatives from around the nation to discuss with them what is happening to the value of the federal charter. Their comments: although there are some issues that should be addressed with H.R. 1151 (the Credit Union Membership Access Act), the more current problems relate to "the ultra-conservative interpretation of H.R. 1151." And, "the process (of NCUA approving expansions) has a chilling effect on SEG acquisition efforts." Finally, "it is important that the regulatory environment allow for continued growth and not impair our ability to remain competitive." These were all comments from credit union leaders who were either considering, or who were in the process, of changing their credit union charters from federal to state. Thus, the issue, as I see it, is that the value of the federal charter is eroding, primarily because of developments such as the narrow interpretation of H.R. 1151 by the federal regulatory authority. Further, I believe that some relief has to be forthcoming-and soon-from NCUA to curtail this erosion and begin reinforcing the foundation for federal credit unions. The recent decision in the U.S. District Court by Judge Kollar-Kotelly, which even goes so far as to suggest that the NCUA could be more aggressive in some areas, clears the way! With the virtual, complete dismissal of that lawsuit, NCUA now has little reason to be cautious in its approach to H.R. 1151 and field of membership additions. Having taken the lead in the issue of federal charter enhancement and conducted a thorough examination of the issue over the past several months, NAFCU has some specific suggestions for NCUA. Listen Up First, NCUA should articulate a more conclusive position on when it is "practicable" for a select group to form its own credit union. Doing so would speed up the process for adding groups of more than 200 potential members, but less than 3,000, and allow federal credit unions to move as quickly and efficiently as their brethren state charters in adding new member groups. Second, NCUA should issue formal procedures for each of its regional offices to adopt in dealing with select group additions. Currently, the lack of such procedures means that the regional offices tend to implement policy positions in different ways - resulting in confusion at the least, and delays at the worst. Furthermore, NCUA should require processing of select group additions within certain time frames, with reporting by the regions to NCUA when processing is outside the specified time frame and the reasons therefor. Third, in light of Judge Kollar-Kotelly's comments concerning the voluntary merger of credit unions in her recent ruling in the FOM case, NCUA should immediately loosen up its policy toward voluntary mergers of credit unions with select groups of less than 3,000 members. The agency can do so by merely subjecting all voluntary mergers (regardless of the size of the select groups constituting the merging credit unions' fields of membership) to the same regulatory scrutiny. NCUA's first concern in approving voluntary mergers should be the future viability of the surviving credit union (including the credit union's ability to provide a full range of services to the members). Simpler The Better Fourth, NCUA can and should streamline the process in which additions are made to multiple common bond credit unions, no longer requiring that all such additions be subject to the same requirements imposed on select group additions. Groups should be examined by their ability to be integrated into the credit union because they share a common bond with the existing field of membership. Additionally, NCUA should take steps to protect single common bond credit unions from being designated "multiple common bond" merely because of corporate restructuring by their sponsor companies. These four steps, if taken by NCUA now, would immensely help federal credit unions meet the kind of growth their business plans call for, and which they are telling us they need to remain effective financial institutions for their members. Additionally, and most important, these steps would help to maintain the value of the federal charter and encourage more credit unions to look to the federal charter as a viable alternative. I've personally discussed these four steps with each of the three NCUA Board members, focusing first and foremost on the impact these actions would have on the value of the federal charter. I sincerely appreciate the time and attention each board member devoted to discussion of this critical issue. NAFCU has also delivered two separate letters to each of the NCUA Board members on both the specific topic of streamlining the "member group addition" process, and on maintaining the significance of the federal charter. These efforts have worked hand in hand to forward our position that this is an issue of vital importance to all federal credit unions and, by association, the credit union community at large. Now is the time for NCUA to act - because this is the time when the issue of the value of the federal charter is so crucial. By keeping the federal charter viable and attractive, the entire credit union community can benefit from the resulting strength and flexibility. It's the top issue for NAFCU - one that we'll continue to press....

Motherhood, apple pie, and RegFlex. Could anyone not be for them? NCUA Board Member Dennis Dollar feels that the federal regulator of credit unions should reward well-managed credit unions. He also feels NCUA should make it easier for them to serve their members. And he much prefers that approach rather than just concentrating on hammering those that stray afield from acceptable numbers and other regulatory parameters. Most everyone agrees with his premise. For example, in an entirely unscientific Net poll conducted by Credit Union Times recently, over 80% of respondents agreed with this statement: "Do you agree with (Dennis) Dollar's premise that credit unions that have demonstrated a proven historical performance of safe and sound operations, should be exempt from or have greater flexibility in certain lending restrictions? Another 8.8% "agreed somewhat." Many people I talked to found Dollar's approach refreshing. Some viewed it as a sincere attempt to keep NCUA on track as a safety and soundness regulator and leave the policymaking and management duties up to the credit union volunteer boards and paid staffs. In case you missed it, you may be asking at this point exactly what is RegFlex? Simply put, in Dollar's own words, it is "an earned regulatory flexibility program based upon the realization that each credit union is different and therefore all NCUA regulations cannot be applied to each individual credit union in exactly the same manner." In other words, RegFlex is a risk-based approach to regulation. To qualify, credit unions must meet certain standards. Once they do, they get certain privileges. This assumes, of course, that RegFlex gets enough grassroots credit union level support to convince the other two members of the NCUA Board to eventually vote to implement it. To take advantage of RegFlex, credit unions would have to earn a specified level of net capital strength (9% is the proposed figure) and have a proven risk management ability (CAMEL 1 or 2 for the past two exam cycles). In return, based on RegFlex changes under consideration, these credit unions could be granted a higher fixed asset cap (5% is standard), the removal of certain limited investment restrictions, changes in the charitable contributions restrictions, and adjustments regarding the limits on public funds and certain eligible obligation restrictions. By the way, this is by no means a program aimed at a small number of large credit unions as some skeptics opined initially. If implemented as proposed today, nearly 3,500 credit unions would be eligible for RegFlex. Over 50% of them would be less than $10 million in assets. Whatever any final menu of benefits RegFlex ends up being, the point is that Dollar is trying to do something positive in recognition that most credit unions are well-managed and very successful in serving their members. He's attempting to put a positive spin on the role of the federal regulator to counteract all the negativity that has come out of NCUA in recent years. For that, he should be thanked and commended for his efforts, and supported, too. Yet, there are those who feel RegFlex is much ado about nothing. Who cares about being able to build bigger buildings or give more money to charity, asked one CU CEO when asked to comment on Dollar's proposal. I have a lot more important things to worry about and they have to do with competition, technology, and personnel problems, not modest changes in a few unimportant regulations, he said. Keep in mind, too, that despite the apple pie and motherhood aspects of RegFlex, Dollar came close to not even getting a second, let alone a favorable vote from his NCUA Board colleagues. Chairman D'Amours, for example, used the proposal to get in another shot at his number one agenda item, namely, serving the underserved. He wouldn't go along with RegFlex unless service to the underserved be included as an eligibility criteria. Frankly, it shouldn't really matter at this point what is in RegFlex. What matters is that there is enough good in it that all credit unions can and should support it by submitting comment letters (deadline is May 22nd). What matters is it is something positive coming out of NCUA that gives credit unions the rare opportunity to speak up on something that they can support rather than oppose. There is plenty of time to fine tune it along the intent originally conceived by Dollar. As I view RegFlex, I see it as a rare opportunity for credit unions in the trenches to acknowledge that somebody in a position of authority is trying to do something for credit unions to make life easier for them, not more difficult. That somebody is Dennis Dollar, the only NCUA Board Member who has walked in credit union shoes and understands what it takes to manage a successful credit union. What a shame if credit unions don't acknowledge this positive effort by getting on the comment letter bandwagon. Is RegFlex perfect? Is it everything a group of credit union CEOs, chairmen, and CU lobbyists would come up with if they were asked to design a RegFlex proposal from scratch on their own? Of course not. But knowing how the political, bureaucratic, and regulatory system works, this is as good as it is going to get under the current circumstances. RegFlex may also signal a return to letting credit unions run their own credit unions in the best interests of members and having NCUA concentrate on safety and soundness issues. Who knows, it could also be the first step towards a long list of needed regulatory improvements! Dollar himself probably said it best when he commented: "We can learn a lot by listening to those we regulate about how a more flexible regulatory approach for well-managed, safe, and sound credit unions can help foster innovation and enhanced member service for folks from all walks of life." Comments? Call 1-800-345-9936, Ext. 15, or Fax 561-683-8514, or E-mail mwelch@cutimes.com....

CUShopper, Burbank, Calif., an e-commerce solution provider to credit unions, has appointed Mason Wiley vice president of membership marketing and R. Allen Urban chief financial officer. Huntington Mortgage Company, Columbus, Ohio, has appointed C. Eric Pennington vice president and division manager of indirect production. Southwest Business Corporation, San Antonio, which provides the credit union industry with investment, mortgage and insurance services, has appointed Tami Webb director of training. Card Capture Services, Inc., Portland, Ore., an independent provider of ATMs, has promoted Eric Muller to director of technical service and installations. Visionary Systems, Atlanta, a provider of automated credit and marketing decision services, has named Deborah Bailey senior vice president and chief financial officer. Equifax, Atlanta, Chairman and Chief Executive Officer Tom Chapman has named J. Michael Cummins corporate vice resident and chief marketing officer. Creditor Resources, Inc., Atlanta, a provider of insurance programs, automated systems ad professional training and support, has appointed JP Nerny chief marketing officer. Concentrex, Portland, Ore., a provider of technology-powered solutions to deliver financial services, has promoted Lois M. Roberts to executive vice president for sales, marketing and customer services. Weiner Agency, Inc., Elkridge, Md., a provider of integrated technology and financial services to credit unions in the mid-Atlantic region, has named Amy Diedrich, training consultant and Jo Ann Talbot, account executive. In addition, Joseph Bowyer and Gerald Hunt have joined Weiner's Software Installation Group....

SAFE Federal Credit Union, Sumter, S.C., has announced that Beverly Gagne, senior vice president of finance, has earned her Certified Credit Union Executive designation. The program teaches advanced credit union management and operations techniques. Only 1,822 people have earned the CCUE designation nationwide. Gulf Coast Community Federal Credit Union, Gulfport, Miss., has promoted Judy Pisut from controller to vice president of finance. Motorola Employees Credit Union-West, Scottsdale, Ariz., has re-elected Thomas E. Cummiskey chairman of the board. Education Credit Union Council, Spanish Fort, Ala., an association serving educational credit unions, has elected the following to their board: University of Wisconsin CU Vice Chairman Phillip Hellmuth, president; U-LANE-O FCU CEO Gordon Hoerauf, vice president; Norwich-Pequot Teachers FCU Director Raymond Marineau, secretary; and Jeffco Schools CU CEO Janet Meyers, treasurer. In addition, ECUC has elected the following as board members: Eva Chesley, director, Educational Systems Employees FCU; Constance Kennelly, director, Tulane-Loyola FCU; Warren Marshall, CEO, Stanford FCU; Janice Thomas, CEO, PSE CU; and John Vastine, CEO, Northern Kentucky Educators FCU....

Hawaii State Federal Credit Union, Honolulu, has elected the following directors to its board: Beverly Lee, chairperson; Tit Mun Chun, vice chairperson; David Shimbukuro, treasurer; Linda Martell, secretary; Louise Akamine, director; Andrew Endo, director; and Amy Motooka, director. Sierra Central Credit Union, Yuba City, Calif., has announced the following structural changes to its management team: Donna Rogers, central regional district manager; Sandy Seaman, northern regional district manager; and Wendi Daneau, vice president of corporate business development. Community ONE Federal Credit Union, Las Vegas, has named Mike Schneider to its board of directors. Heritage Community Credit Union, Rancho Cordova, Calif., has appointed Dave Wilde vice president of marketing....

Virginia Credit Union League, Lynchburg, has named Jesse and Gladys Fleming the league's 1999 Volunteer of the Year, in recognition of their efforts in organizing the NCP Community Development FCU, a nonprofit financial cooperative that serves low-income families in the neighborhoods of Norfolk, Chesapeake and Portsmouth. In addition, Susan Adams, CEO of Richmond's Forenbord FCU has been named the 1999 Gene Farley Credit Union Professional of the Year. Patelco Credit Union, San Francisco, has been recognized by Dr. William Bryne of the Children's Hospital Oakland for its sponsorship of the Emergency Department Respiratory Care Center. The center has the most advanced medical technology available and will educate patients and their families living with asthma. Patelco CU has committed to raise $175,000 over a three-year period of which $75,000 has been raised in 1999. John Deere Community Credit Union, Waterloo, Iowa, has announced that Director Roosevelt Taylor has been presented with the Leonard Katoski Award in recognition for his volunteer contributions and commitment to Waterloo for over 50 years....

OSU Federal Credit Union, Corvallis, Ore., has announced the grand opening of its new Lebanon branch. OSUFCU has over $217 in assets and serves 31,978 members. Educational Community Credit Union, Jacksonville, Fla., has announced the opening of its tenth branch at Fleming Island. ECCU has $400 million in assets and serves over 65,000 members. Federal Aviation Administration Employees Credit Union, Oklahoma City, has awarded HBE Financial Facilities, a design-build firm, a $4.5 million contract for the construction of its new home office and retail space in Oklahoma City. FAA employees credit union has $167 million in assets and serves 30,006 members. Gateway Metro Credit Union, St. Louis, has announced the opening of its seventh branch in the Robert A. Young Federal Building. Gateway Metro CU has $80 million in assets and serves 16,180 members. Security Service FCU, San Antonio, has broken ground for its new corporate headquarters campus on La Cantera Parkway. SSFCU is utilizing an all-San Antonio development team and is projected to open in May, 2001. Dallas Teachers Credit Union, has contracted with HBE Financial Facilities, a design-build firm, to construct three new branch facilities in Lewisville, Irving and Plano, Texas. DTCU has $719 in assets and serves 137,173 members. Dupaco Community Credit Union, Dubuque, Iowa, has announced the grand opening of its new branch location in Galena, Illinois. According to President/CEO Bob Hoefer, the facility was built to better serve the growing number of members in Galena and surrounding communities. Dupaco Community CU has over $213 million in assets and serves 33,310 members Community Educators Credit Union, Rockledge, Fla., has welcomed Congressman Dave Weldon to speak to credit union employees at their weekly training/information session. Mr. Weldon's remarks covered a wide spectrum including gasoline pricing and politics in general in Washington, D.C. Royal Credit Union, Eau Claire, Wis., will be relocating its employee development and training center to the Farmers Store Office Plaza in downtown Eau Claire on June 1, 2000. This new space will enable RCU to conduct concurrent classes for new hires....