Marketplace Newsletter

IN THIS ISSUE:

What's New in the Partner Center

ATM Pull Out Attacks

What Matters Now: Insights from Multicultural Consumers

LSC: Coming this Fall 2018

Give Your Members Peace of Mind with the TruStage Auto and Home Insurance Program

Is Your Overdraft Solution a Disclosed Service or a Hidden Fee?

Summer Travel Safety

CO-OP Financial Services Hosts Regional Roadshows Offering Digital Transformation Strategies to Credit Unions

New Tax Brackets and Your Members

The Value of Validating the Negotiated Contract

Upcoming Webinars


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What's New in the Partner Centerwhats new in partner center June2018updated

When’s the last time you visited the Partner Center? We have added several new marketing materials in the Partner Center, available now, to help your credit union promote the value of Sprint to your members.

Updated Materials - New Sprint Offer

Effective May 18, 2018, there was an update to the Sprint Credit Union Member Cash Rewards offer. All of the Sprint, the League and All Bundle Marketing Materials have now been updated in the Partner Center. For more details on the Sprint offer update, please check out the Sprint offer information hub.
 

Sprint Unlimited Plan with Hulu Customer Journey / How to Guide

Many credit unions have requested information about how their members can add Hulu to their Sprint Unlimited plan. We have added a step-by-step guidePartner Center under “Sprint Resources and Educational Materials.” 

Second quarter is almost over but it is not too late to send your members an email. Be sure to utilize new updated materials to let your members know about the Sprint Credit Union Member Cash Rewards program! Forward your Q2 Sprint marketing documentation to This email address is being protected from spambots. You need JavaScript enabled to view it.  by July 13.

 

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ATM Pull Out Attacks

The Challenge

ATMs typically contain large amounts of cash, up to $100K or more, making them attractive targets for criminals. Thieves can be very creative in finding ways to get to the cash, using trucks, nearby construction equipment or even hand carts to steal the ATM. Sometimes, the criminals break into the machine and steal the cash out of it (a “break-in attack”); other times, they simply steal the entire machine (a “pull out attack”), take it to a secure location, and have plenty of time to break into the cash compartment to get the money inside. Pull out attacks tend to be especially costly for the following reasons:

  • Extensive damage to the property and costly repairs.
  • Replacing the ATM machine valued at up to $50,000.
  • Loss of cash inside the ATM, up to $100,000.
  • Sometimes not knowing of the ATM attack until the next morning when employees arrive to open the branch, meaning that the criminals are long gone with their prize.

In recent years, the FBI identified a crime ring targeting ATMs throughout the East Coast and having a very high success rate. Even if one or two of the criminals were arrested, the rest of the ring would break off and start a new rash of attacks somewhere else. Within a small amount of time, over 20 entire ATM machines were ripped from their foundation and stolen in three minutes or less. Video and alarm systems were too slow to notify police in time to catch the criminals so the crimes continued.

Founders Federal Credit Union, serving 210,000 members, became a victim of this crime ring in 2014. The robbers used extreme force, ramming the ATM with a forklift stolen from a nearby job site until the machine broke loose from the concrete base. Using the forklift, they loaded the ATM into a stolen pickup truck and were gone in under three minutes. Six days later, the ATM was found but all of the money was gone. Founders’ COO of Business Development/Procurement/Security Joe McCain and his team decided to take a proactive

approach to protect their machines. A colleague recommended ATM Tracker™, a fully automatic GPS tracking solution that notifies local law enforcement as the pull-out attack is in progress.

The Solution

McCain and his team identified ten high-risk locations that were most vulnerable to ATM crime. They installed 3SI’s ATM Tracker in these locations and one of the ATMs was attacked within days of the installation.

The tracker successfully notified local law enforcement and police were dispatched. Responding units quickly located the truck containing the stolen ATM. The two suspects bailed, so police used helicopters and K-9 units in the search for the suspects. The morning ended with recovery of the ATM, all of the cash contents ($113,000) and both robbers in custody.

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Conclusion

Impressed with how well ATM Tracker worked, Founders installed trackers into all of their freestanding ATM machines, a total of 74 units. Word spread that Founders FCU had taken these measures to “harden the target” and they have not experienced another ATM pull-out attack since. One of the challenges in apprehending ATM robbers is that they typically commit the crime in the middle of the night when no witnesses are around. Construction equipment and trucks are left unattended at job sites so can be easy to steal to assist with the crime. Add to that the fact that surveillance video is less effective in identifying criminals in the darkness. Financial institutions and businesses can realize cost-effective 24/7 protection by installing ATM Tracker. Standalone, drive up, and smaller machines located in pharmacies, convenience stores, outside events, are especially vulnerable to attack and can be protected with ATM Tracker. This highly effective solution has recovered 95% of all stolen ATM cash and has led to many criminal apprehensions.

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what matters now

6 key differences drive multicultural consumer behavior

Over the past five years, multicultural consumers* have accounted for 100 percent of the U.S. population growth and 61 percent of credit union membership growth. As the population becomes increasingly diverse, understanding cultural differences might cause credit unions to reconsider their communication messages and product delivery channels.

What Matters Now™: Insights from Multicultural Consumers research uncovered significant differences in behavioral areas like financial product ownership and research behaviors. It also uncovered six attitudinal themes where multicultural consumers ranked considerably higher than white consumers: optimism, hustle, living in the moment, worry, generosity, and community spirit.

Optimism. A mindset that includes hopefulness and confidence about the future.

People of color view optimism as an element of their identity significantly higher than the white population. In addition, African American, Hispanic, and Asian consumers responded “yes” twice as often than White consumers when asked whether they believed they would become rich in their lifetime.

Hustle.  It’s more than having multiple streams of income.

Research shows a much deeper definition--one of resilience and creativity and, like optimism, hustle is often fueled by hopes and dreams, as well as concern for others.

Multicultural consumers feel that always striving for excellence is an important part of their personal identity and growth. Think of all the ways you can align with multicultural consumers as they strive to achieve their financial goals.  Loans for school and businesses, savings plans for reaching larger goals, retirement, and giving back to the community are just a few!

Living in the moment. This doesn’t just mean spontaneous purchases. 

It was found that multicultural consumers value the experiences around purchases and sharing those purchases with others more than the material item itself.  Living in the moment is a goal, with 42% of Hispanic consumers, compared to 23% of White consumers, saying they strive to live in the moment.

Worry.  What people worry about varies greatly among racial / ethnic groups.  

While one in five Asian consumers worries about having enough money to care for a parent or loved one, White consumers are most concerned about retirement and health care costs. African American consumers share the same concerns, plus paying bills and mortgages. Hispanic consumers’ worries are more pronounced across all areas.

Generosity. While White and Asian consumers might be more likely to purchase traditional passive investment products—like mutual funds—Hispanic and African American consumers might take a more active approach. They prefer to finance a family or local business, something that's connected to them, something they can touch and feel rather than giving their money to an impersonal, financial institution. 

Community Spirit. Multicultural consumers think about their family, extended family, and even their community more often when it comes to financial decisions. African American and Hispanic consumers believe they can achieve more by working together, eight to 16 percentage points above that of White consumers. 

Consider how these cultural differences can and will impact your credit union’s performance. Download our e-book at cunamutual.com/whatmattersnow to learn more.

* For this research our definition of multicultural focused specifically on race and ethnicity as defined by the U.S. Census: African American, Asian, Hispanic, and Non-Hispanic White.

 

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LSC-Prepaid-Program-Enhancements-Fall18

Coming this Fall 2018!

LSC is dedicated to providing powerful solutions to support your prepaid programs and strengthen engagement from your members. It is their goal to create a positive member experience, making your prepaid card a preferred option for your members.

LSC is excited to announce some upcoming enhancements scheduled for their Prepaid Products. The following will be available later this year as LSC implements program changes:

  • Immediate funds availability
  • All EMV reloadable cards
  • Prepaid Access functionality to query for members’ card balances
  • Introducing Card IDs! A Card ID will be printed in the window portion of instant issue cards in lieu of the card number.
    • Quickly access Card ID information in Prepaid Access without removing the card from the package New cardholder alerts will be available in the mobile app and on the cardholder website for your members to subscribe to or request on demand
  • New CUMONEY Mobile App for the Everyday Spend and Visa TravelMoney Programs
  • Card Controls – Your members can suspend and reactivate their cards through cumoney.com and on the mobile app

LSC will be sending regular updates as they progress towards these and other enhancements scheduled for Fall 2018. Thank you for your continued support of LSC Prepaid Products.

Please direct any questions to the Prepaid Department at This email address is being protected from spambots. You need JavaScript enabled to view it. .

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Give Your Members Peace of Mind with the TruStage Auto and Home Insurance Program

JUNE EdCal TruStage-edited 270x270

Summer is here! Before your members take a road trip this summer, make sure they stop by your credit union to learn how they may be eligible to save hundreds on auto and home insurance from the TruStage Auto & Home Insurance program.

The TruStage Auto & Home Insurance Program is built specifically for credit union members and aligns with your values, empowering your credit union to better meet members’ needs. With the TruStage Auto & Home Insurance Program from your credit union, members can protect what they love, and travel with piece of mind. Members can click here to get a free quote or by calling 800-789-6286.

Benefits for Your Credit Union 

  • Your credit union earns royalties for all TruStage Auto & Home Insurance Program policies purchased by your members through the Love My Credit Union Rewards program.
  • Free, turnkey marketing materials help you communicate the benefits of the TruStage Auto & Home Insurance Program to your members.
  • The TruStage Auto & Home Insurance Program is also included in the All Bundle.

Not participating in Love My Credit Union Rewards? Visit the Partner Center to learn more and enroll today!

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Is Your Overdraft Solution a Disclosed Service or a Hidden Fee?

by, EVP-COMPLIANCE REVIEWIn the Federal Reserve’s fifth annual Report on the Economic Well-Being of U.S. Households,  released in early May, the number of Americans who say they are managing okay financially has increased from previous years since at least 2013. However, disparities in economic well-being still make it difficult for many families and individuals who lack financial stability.

According to the report, four in 10 adults would either not be able to cover an unexpected $400 expense; or would do so by selling something or borrowing the money. One-fifth of adults are not able to pay all of their current month’s bills in full, and over one-fourth of the respondents skipped necessary medical care last year because they couldn’t afford it.

While most Americans rely on their credit union for financial services, the report revealed that many survey respondents either lack a traditional account or rely on alternative financial services as additional resources when they are short of funds. For some, obtaining approval for a new credit card application would be difficult.

So, when your members struggle to make ends meet at the end of the month or find themselves in unexpected financial situations, where do they turn for a safe, convenient and reliable solution with a reasonable fee to meet their short-term funding needs?

Transparent, consumer-focused service at a reasonable cost

Credit unions that offer a fully disclosed overdraft program provide members with the choice of having their transactions covered to an established limit with their full knowledge of how the program works and how much the service costs. 

Plus, members can always avoid additional overdraft charges by:

  • opting out of the program;
  • abstaining from making purchases that will incur an overdraft fee; or
  • withdrawing one large check or ATM transaction instead of writing several smaller checks or making several smaller debit card purchases.

On the other hand, if an overdraft solution is undisclosed or overdraft limits are based on an unknown matrix, members can be blindsided by fees they aren’t expecting. This can lead to confusion for those who don’t understand their overdraft limit and frustration for frontline staff who have difficulty explaining the program effectively. This lack of transparency can also lead to greater risk for the institution from a compliance and litigation standpoint.

Short-term solution provides long-term financial stability

According to a study by The Consumer Financial Protection Bureau (recently renamed the Bureau of Consumer Financial Protection), most consumers who overdraw their accounts bring their accounts to a positive balance quickly – more than half become positive within three days; and more than 75 percent become positive within a week.

So other options, such as conventional or payday loans that require extensive documentation for approval, charge high-interest rates or include terms that extend the interest beyond the needed length of credit can be less convenient and more costly solutions for short-term needs.

Until you have an overdraft service that is disclosed, your employees can’t help a family that is trying to make ends meet; until you have a disclosed overdraft service, you don’t have an option for someone who has difficulty getting credit or does not want to go through the credit process. Everyone has occasional short-term financial needs. Your credit union can deliver a much-needed service by providing a fully disclosed, fully optional overdraft privilege service to help your members when they need it most.

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LSC

Summer Travel Safety

5 Tips to Offer your Members

It’s finally here. That magical time of year when the days are hot, the coffee is iced, and the nights are spent dreaming of upcoming vacations and travel adventures far, far away.

We’re not here to rain on anyone’s summertime daydream; however, your credit union spends a huge amount of time and energy working to keep your members’ data safe and secure, and their summer travel plans can sometimes compromise those efforts.  

We know that that dealing with cyber predators and unsafe travel conditions are not on your members’ bucket list, and we also know that dealing with the fallout from identity theft is no fun for your members or for your team.

Help keep your members safe and informed this summer by offering them these 5 essential travel tips for wherever their adventures take them:

Make copies of important travel documents.
Your members should include their travel itinerary, health insurance cards, credit cards, and passport. They should then give the copies to someone they trust in case of an emergency. It’s also smart to email any important information about their trip to themselves before they leave so it’s easily accessible if something gets lost, especially if they’re travelling overseas.

Don’t overshare on social media.  
Not only do your members not want every person with access to their social media accounts to know that they’re away from home (hello, burglars!), they also don’t need their followers (or lurkers) to know where they are in real time. This can invite all kinds of unwanted attention and danger. Your members should also avoid posting any pictures with personal information, like their boarding pass or passport, to social media. These photos might look fun on Instagram, but they also give cyber predators easy access to your members’ secure data.

Don’t use public Wi-Fi to access financial information or make online purchases. 
It’s very easy for hackers to steal information from public internet servers. Further, your members should never leave their laptop or cell phone in a vulnerable position (i.e. at the breakfast table while they run to the bathroom or on their beach chair while they take a dip);  this might seem like common sense, but it’s easy to let your guard down when you’re on island time!

Use a prepaid debit card specifically designated for traveling. 
A prepaid travel card will help your members stay within their budget while they’re on vacation and keep their personal information safe. Prepaid travel cards, like the CUMONEY® TravelMoney® prepaid Visa card by LSC, are not linked to your members’ checking or savings accounts, so if their card information is compromised, you’ll both have less clean up down the road. Another bonus: your members won’t have to worry about foreign ATM skimmers and various other threats to their financial data while they’re trying to relax on vacation. Interested in learning more about how your credit union can start offering a prepaid debit card designed to protect your members while they travel? Contact the LSC prepaid department at This email address is being protected from spambots. You need JavaScript enabled to view it. .

Research, research, research. 
It’s important for your members to learn the ins and outs of their destination and do some digging to find out what areas are safe and what areas should be avoided.  A good place to start? Read hotel reviews online to see what neighborhoods and destinations other travelers recommend. Remind your members that if a place seems unsafe or makes them feel uncomfortable, they should leave right away. You can also suggest that they download the State Department’s Smart Traveler app (travel.state.gov) and sign up for the State’s Smart Traveler Enrollment Program (STEP), which allows U.S. citizens who are traveling abroad to enroll their trip with the nearest U.S. embassy or consulate.

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CO-OP Financial Services Hosts Regional Roadshows Offering Digital Transformation Strategies to Credit Unions

CO-OP Financial Services is bringing strategic and tactical learnings to help credit unions on their digital transformation journey through six, single-day “Roadshow” events running July-October in locations across the country.

“Last month’s THINK 18 Conference shed light on the many challenges and emerging trends credit unions need to consider in the digital age,” said Samantha Paxson, Chief Experience Officer for CO-OP. “From the rise of AI to open banking and changing patterns in fraud, credit unions have a lot to keep pace with. THINK was a great place to start the conversation but it is just one leg of the ‘Race to Excellence.’”

Each CO-OP Roadshow will feature industry thought leaders, both within and beyond CO-OP, sharing hands-on strategies credit unions can put to work immediately. CO-OP has identified seven strategies it is pursuing and recommends credit unions follow to accelerate the digital transformation process.

Roadshow speakers will share insights and guidance on topics including:

  • The latest consumer and fintech trends that will impact credit unions now and in the future.
  • How to respond to these trends with seven strategies to accelerate digital transformation.
  • The vital role data plays in fueling growth and how to establish an effective data strategy.
  • Why integration is the key to innovation, empowering credit unions to deliver excellence.
  • How CO-OP is evolving to become a world-class ecosystem, enabling the company to serve as a strategic partner to credit unions on their path towards digital transformation.

2018 CO-OP THINK Roadshow Schedule

  • July 17: Boulder, Colorado
  • August 21: Detroit, Michigan
  • August 23: Des Moines, Iowa
  • September 26: Irvine, California
  • October 2: Philadelphia, Pennsylvania
  • October 4: Boston, Massachusetts

There is no cost for credit union personnel to attend, and each event will include breakfast and lunch. Online registration is open now for each individual CO-OP Roadshow.

In addition to the CO-OP Roadshow dates, the company is already preparing the conference agenda for THINK 19, with a theme of “The Race Continues.” THINK 19 will be held in Miami, Florida, May 6-9, 2019. The Early Bird registration rate is $999, good through October 31, 2018. Credit union employees can register immediately at http://co-opthink.org/events/think-19/.

“We are intensely focused on co-creating the future of financial services with our credit union clients,” said Paxson. “The Roadshow events, combined with the outcomes of our Co-Creation Councils, are giving CO-OP’s leaders the feedback they need to build that future in a way that is highly customized to the industry and as member-centric as possible.” 

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TurboTax

New Tax Brackets and Your Members

The 2017 tax season has come to a close, but taxes may still be top of mind for your members. Congress has passed the largest tax reform legislation in more than three decade. The bill will affect most taxpayers, so it’s never too early to educate your members on these changes. Visit the Partner Center in the upcoming months for some great educational content with up-to-date information from our partner, TurboTax.

TurboTax Has Your Members Covered

If you are concerned about how these changes will affect your members, don’t worry. TurboTax will be up to date with the latest laws. Plus, if your members have more questions when filing their taxes, they can connect via TurboTax Live to speak with a CPA or enrolled agent to answer their questions.

Don’t leave your members in the dark, visit the Partner Center for more information on the TurboTax credit union member discount program or to enroll for next tax season. Click here to read the full TurboTax article on 2017 Tax Reform Legislation.

For married joint filers:

joint500

For single filers:

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The Value of Validating the Negotiated Contract

Are you a go-getter, confident in your skills and rarely delegating the big, important tasks to ensure they’re done correctly? There are a lot of talented people with the do-it-yourself attitude toward contract negotiations. But whether you’re a skilled negotiator, an experienced financial expert or a talented researcher, nothing compares to an insider who spends their days exclusively securing the best deals for financial institutions. 

That’s the contract negotiation team at JMFA. They negotiate vendor contracts for credit unions day in and day out, and have seen it all. So when a do-it-yourselfer says, “I’m happy with my current vendor, and I’ve already negotiated a great renewal contract,” the team at JMFA replies: “Let’s check it out!”

Why seek validation?

A second opinion and some validation never hurt anyone. In fact, it’s likely to help you save even more, even if you think you’ve got the best deal already. Plus, when the negotiations come with a 100% contingency-based fee structure, you have nothing to lose. In other words, if you don’t save money, you shouldn’t pay a fee!

But one thing you can gain is a reputation as a stellar negotiator. Whether you’re one of the 98% JMFA helps find savings or the 2% they evaluate who have scored the best deal on their own, you’ll have the validation that a third-party industry expert has looked over your contracts to make sure you’re not overpaying. Having a well-known expert in contract negotiations to double check your work can earn you the trust of your board members and upper management. And, they’ll likely remember that when bigger opportunities arise.

Other benefits of consulting an expert negotiator

Aside from securing the best deal and becoming a shining star at your credit union, a third-party review of your contracts can also:

  • save you time so you can focus on your day-to-day tasks and long-term goals;
  • bring you additional vendor perks like signing bonuses, more favorable terms, and retroactive pricing; and
  • allow your credit union to reinvest the savings into account holder services and improvements or employee loyalty and retention efforts.

Time is of the essence

To negotiate the greatest savings on your contracts, it’s advisable to get the ball rolling 12-18 months before the contract is set to expire. It is possible to experience substantial savings and additional vendor terms, like when Garden Island Federal Credit Union — was in a pinch with less than seven months left on a contract. But, earlier is definitely better so you can have the upper hand and evaluate all your options.

The first step is simple: request an analysis of your contract(s) and learn more about the process. Then, you and your credit union will be well on the way to not only discovering, but experiencing, the value of getting a second opinion. You might even get that well-deserved pat on the back from management and the even the board. How’s that for validation?

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Come Learn With Us

Upcoming Webinars

Come learn with us and jump-start your success with interactive webinars featuring cutting-edge information from experienced facilitators that help you understand not only product details but how to achieve financial success, reduce your risks, and better serve your members.

To register for any of these webinars, please go to https://www.cunamutual.com/resource-library/webinars.  

Recognizing Performance

7/10/2018 12:00 PM (CT)
When employees know and use their strengths, they're more engaged and have higher performance. Increase employee performance through the use of targeted recognition strategies.
Lending Resource Center/Live Events

Credit Insurance: Product Essentials

7/11/2018
This course focuses on the foundations of Credit Life and Credit Disability. You will learn what Credit Insurance is and what value it provides to your members.
Lending Resource Center/Live Events

Performance Coaching

7/12/2018 12:00 PM (CT)
Ever wonder why your employees are performing below expectations? Analyze the situation to close the performance gap and identify solutions to positively impact behavior.
Lending Resource Center/Live Events

Member Focused Conversations: Guide with Confidence, Part 1

7/17/2018 10:00 AM & 2:00 PM (CT)
Members are looking for someone to provide them financial guidance. Even if your members are doing well right now, the unexpected can have an immediate impact on their financial well-being. Part 1 focuses on helping your member feel the impact through a Money Game as they make difficult decisions during an already tough time.
Lending Resource Center/Live Events

Member Focused Conversations: Guide with Confidence, Part 2

7/18/2018 10:00 AM & 2:00 PM (CT)
Go the extra mile. Part 2 focuses on using consultative questions and a consistent process to provide your members with personalized solutions. Be committed to being your members' trusted financial consultant. If you don't take the opportunity to guide your members, they will look elsewhere for the guidance they need.*
Lending Resource Center/Live Events

Member Focused Conversations: Guide with Confidence, Part 3

7/19/2018 10:00 AM & 2:00 PM (CT)
Part 3 builds on what you learned about a member focused conversation and takes it to a new level. You won't simply present benefits, you'll personalize them, helping your members to see the value and why payment protection is so important. . .to them!. Go the extra mile.*
Lending Resource Center/Live Events

Navigating Regulation & Compliance Overload

7/25/2018 10:00 AM (CT)
When risk and compliance management is effective, typically nothing bad happens. But if you’re blindsided by a problem, your credit union reputation and bottom-line can take the hit. Don’t let not knowing what’s around the corner take the blame. Hear what’s in store from a regulatory and compliance perspective and better understand how you can minimize potential violations and penalties.
Protection Resource Center Webinars & Education

Addressing Concerns: Close the Case

7/26/2018 10:00 AM (CT)
What if the member asks a question or raises a concern? Don't let this question stop you any longer from educating your members on payment protection. Confidently address four common member questions and concerns related to payment protection.*
Lending Resource Center/Live Events

 

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Kentucky Credit Union League
3615 Newburg Rd.
Louisville, KY 40218

Call: 502-459-8026 or 800-333-5285
Fax: 502-459-0189
Email: kycul@kycul.org