I’ve seen two extremes in my fifteen plus years in the credit union movement. I’ve seen credit union leaders so paralyzed by fear of change that their credit union dies on the vine. It’s like walking into granny’s house, a house that has not changed in years. (That yellow corded rotary phone is still on the wall and the 1988 phone book is still in the cabinet underneath.) I talk a lot about fear of change in this blog because it’s a common occurrence. I’ve also seen credit union so afraid of failing that they hustle and bustle and grasp on to every new idea, half-heartedly implement it just to ..read more

In 2005, George W. Bush was President and the BlackBerry was the cool handheld. The iPhone would not debut until 2007. The financial crisis was still on the horizon, and the Dodd-Frank Act wouldn’t hit banking for another five years. Also this: 2005 was the year that a group of merchants and associations sued Visa, Mastercard and six major banks and related payments affiliates in a federal antitrust case called “In Re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation.” Stripped to its essence, the case hinges on merchants’ complaints that interchange fees have long been t ..read more

The Federal Communications Commission (FCC) should reject a request to require an automated opt-out mechanism on every call with an artificial or prerecorded message, including those made to cell phones, America’s Credit Unions and other organizations wrote in comments filed with the FCC. Existing rules require a caller to provide an opt-out mechanism when making an artificial or prerecorded telemarketing voice call or making an informational call to a residential line, however the current mechanism is not required for cell phones. This request would “impair the ability of consumers to receive ..read more

Tesla recently reached a settlement over the 2018 crash that killed a driver while he was operating his car on autopilot. Tesla’s position is that it’s the driver, not the automaker, that’s responsible for crashes while in autopilot mode. The term “autopilot” is misleading because the driver still must be alert with hands on the wheel. The same can be said of your credit union member experience…you must stay vigilant and keep your hands firmly on the wheel to avoid a crash. Members walk into your branch, call your call center or log into your digital banking. How are they greeted? Is it easy f ..read more

“Leveraging technology” is the mantra of the day for any business committed to relevance, or as we like to say, ‘remaining in business.’ For global fast-food chains and independent, local retailers alike, that means in-store kiosks replacing counter staff and reducing overall wage expenses, all seamlessly integrated with inventory and accounting systems, reducing front-line and back-office burdens, and improving NOIs. Order-ahead technology: What’s the big deal? Order ahead functionality manages flow, meeting consumers where we are – on our smart phones. For the banking industry, the secret sa ..read more

Renowned songwriter Paul Simon has gifted us with a plethora of memorable lines throughout his illustrious career, ranging from the haunting “hello darkness my old friend” to the enigmatic “people say she’s crazy, she’s got diamonds on the soles of her shoes.” Over nearly seven decades, his body of work has captivated many, including myself, often prompting deep reflection on the profound themes within his lyrics, which can offer valuable insights for leadership. Brace yourself for potential earworms! In 1977, Simon released “Slip Slidin’ Away,” a poignant exploration of the human experience ..read more

With many credit unions facing liquidity woes, they are left with having to pay for much needed money to lend. As a result, the significance of yield on loans has never been more critical. How do you keep lending when you must pay for the money yourself? It is a compelling question with an easy answer. As our founder Rex Johnson often said, “The trend is your friend.” If we can recognize which members are trending upward, we can build on our commitment to our communities and continue lending to higher-risk members. With the proper score code training and interviewing skills, we can easily iden ..read more

Carlene Alexander, VP/DEIB & global diversity officer at United Nations Federal Credit Union, is responsible for using a DEIB lens to develop and implement its workforce, workplace and marketplace initiatives. The $8.9 billion New York City-based financial cooperative aligns its corporate social responsibility with the UN Sustainable Development Goals. UNFCU recently achieved several significant wins in sustainability, including the launch of a Supplier Diversity program. We recently caught up with Carlene Alexander, who spoke about why diversity, equity, inclusion and belonging ..read more

I’m afraid I must rant again about NCUA’s management of the NCUSIF investment portfolio. From the most recently posted financials as of February 2024, the Investment Committee appears to have learned nothing from the past two years of Fed Reserve short-term rate increases. The Committee bought a $650 million Treasury bond yielding 4.26% with a final maturity of 6 years and three months on February 15. The investment extended the NCUSIF’s duration, increased the portfolio’s interest rate (IRR) risk, and reduced short-term liquidity. The term portfolio (75% of the $22.5 billion total) is underw ..read more

With the rise of online retail, the influence of social media, and the impact of inflation, the traditional banking experience has undergone a profound transformation. Customers expect nothing short of seamless, personalized experiences, drawing glaring parallels to other popular industries. The BAI Banking Outlook: 2024 Trends survey reveals that customers benchmark their bank’s digital services against their favorite online retailers. And it makes sense—if we can easily order groceries or retail items online and have them delivered to our doorsteps or opt for same-day curbside pick ..read more