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Immersion18, the first conference for the Trellance team under their new brand, incorporated the same insightful, educational and informative information as in the previous twenty-six years, but with a lot more collaboration and fun.

Tom Davis, President and CEO, kicked off this year’s annual conference stating “We have to be independent to be your best advocate.” Tom went on to explain that “While Trellance provides many of the same services it offered before, such as card processing; three words will drive its future: Independent, unbiased advocate.” Tom gave the four key factors toward credit union success: Hiring top talent, collaboration, having vision, and using data analytics. Bill Lehman, SVP of consulting services, spoke next, introducing some of the 17 new services offered by Trellance.

 

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Posted: May 2, 2018
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Act Small to Gain Trust

[Editor's Note: This article was previously published in Credit Union Times, and has been modified.]

There is no doubt that the credit union industry has been and still is going through quite a bit of change.  From mergers and acquisitions, to regulatory changes, to incorporating technology and attracting younger demographics. Overall, despite the shrinking number of credit unions; membership, loans and share numbers are up. According to Callahan’s Trendwatch Year-End 2017, The Annual Report for the Industry data, total credit union membership reached 112.9 million, up from 108.2 million at the end of 2016. While new auto loans (13.2%), used auto loans (10.3%), first mortgages (10.2%) and credit cards (9.2%) lead the way in annual growth among loans outstanding, and year-over-year growth in share drafts (10.0%), regular shares (7.1%) and share certificates (6.3%) outpace the rest of the portfolio. However, after being somewhat of the “anti-bank”, many argue that credit unions today are beginning to minimize the fact that they are credit unions and changing their profiles to look and feel more like retail banks in order to compete with their financial counterparts. Many have also been incorporating as many banking lingos in their messaging as they can. However, this may not be a good strategy.

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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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Author: Michele Featherstone

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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