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Posted: Apr 11, 2018
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ThePaymentsReview continues a new feature that occasionally highlights regulatory topics important to credit unions.

Back on July 11, 2016 the Financial Crimes Enforcement Network (FinCEN) issued a rule requiring covered financial institutions to identify and verify the identity of any beneficial owner. The new Customer Due Diligence (CDD) rule takes effect May 11, 2018 at which time the financial institution must be compliant. For purposes of the CDD Rule, covered financial institutions are federally regulated banks and federally insured credit unions, mutual funds, brokers or dealers in securities, futures commission merchants, and introducing brokers in commodities.

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Posted: Apr 5, 2018
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Journey mapping helps in eliminating pain points from the customer experience.

[Editor's Note: This article was previously published in CUNA News, and has been modified.]

If one of your members stopped using your credit card because they didn’t think it had adequate fraud protection, would you know? What if they stopped using your mobile banking app because they had a negative user experience, would you know that? This is just the tip of the iceberg in terms of the data and intelligence your credit union could learn if you engaged in a member journey mapping program. Knowing this information could mean the difference between retaining and growing that relationship or losing it.

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Posted: Mar 6, 2018
Categories: Regulations, Consulting
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ThePaymentsReview continues a new feature that occasionally highlights regulatory topics important to credit unions.

Accounting for loan losses is at the heart of credit union accounting. Setting aside reserves for loan losses is an important accounting component, but an increase in allowances reduces a credit union’s capital. Under current accounting standards, a credit union recognizes losses when they reach a probable threshold of loss. This is called an incurred loss accounting model. In practical terms, incurred loss accounting is a backwards-looking model, measuring a pool of loans against historic annualized write-offs. This method can drastically underrepresent potential future losses when a loan portfolio is exposed to a financial crisis, especially after a run of several years with lower losses. And this is exactly what happened following the financial crisis of 2008 in which some credit unions found themselves under reserved and unprepared for losses in their loan and mortgage portfolios while losses to their investments, and in many cases, shares declined. In the rising economy of the early 2000’s, losses were not being accounted for as “probable”.

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Posted: Feb 21, 2018
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Author: Lou Grilli

Use of debit continues to grow as consumers shift their cash and check spend to the convenience of plastic. According to the Fed, the number of debit payments increased from 56.5 billion in 2012 to 69.5 billion in 2015, the largest increase in the number of payments among the payment types. More recently, and more relevantly, Trellance credit unions saw their Visa Signature Debit transactions grow year over year in January 2018 by 8.83%. Yet at the same time, credit unions are seeing a decline in average debit interchange. So, what is going on?

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Posted: Jan 18, 2018
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Author: Alexis Nab

Trellance's Optimize Credit Line Increase Program plays a pivotal role

Texas-based Randolph Brooks FCU strives to offer the best-in-class financial solutions to its members.  However, while their quarterly business reviews showed that their credit card program was performing well in comparison to their credit union peers, they wanted to achieve more from their program.  “Through strategic analysis, we identified slower card acquisition and transaction growth than what is expected of a portfolio of our size”, noted Deana Bartel, Vice President of Payments Services.

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