By The Way

The By The Way newsletter is a great way to keep Kentucky credit unions informed of the latest updates in governmental affairs, compliance and regulations, education and training.  In addition, By the Way highlights the difference credit unions are making on a daily basis.

League Updates

CUNA Announcements

Educational Opportunities

Credit Union News

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A Message from the President

How in the world did it get to be the end of July?  I can’t decide if time has flown by or if it’s been the longest five months of our lives.  

Some might suggest that we just write 2020 off, get through the rest of the year and start over in January.  But, we all know we can’t do that.  Credit Unions just can’t close their eyes and let the year just fade away.  Credit Unions have important jobs to do and memberships to serve.  

Members need their credit unions more now than ever before and the challenges of meeting these days are ever-changing.  The good news is that credit unions are up to the task.  Masks, no masks, social distancing, temperature checks, and so on, will not prevent credit unions from serving their members. Credit Unions are built for the hard times as well as the good times.

Again, on behalf of your League staff, thank you for your service to your members and your communities.  We are so proud to have the opportunity to serve you.

Sincerely, 

Debbie Painter
League President

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Governmental Affairs Update

Hike the Hill is an annual grassroots effort sponsored by your League to provide Kentucky credit unions with the opportunity to connect with lawmakers on credit union issues.  While COVID-19 has forced us all to alter plans and events, it is more important now than ever to stay engaged with these decision-makers.  

We are excited to announce that Hike the Hill will be going virtual! 

Make plans to join us on our Virtual Hike the Hill on September 15-17, 2020.  Our Virtual Hike the Hill will still provide you with an opportunity to engage with our elected representatives on how you serve your members and community.  Make an impact without the added time and travel expense of traveling to Washington, DC.  

More information will be available in August.

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YOU’RE INVITED!  Announcing the VISION 2020 EXPO

The VISION 2020 EXPO is an online experience specifically designed to help Kentucky credit unions discover new, innovative products and services to help enhance member service offerings while improving the credit union's bottom line. 

WHY YOU SHOULD ATTEND VISION 2020 EXPO 

  • It's FREE.  Employees of League affiliated credit unions can attend at no cost. The first 200 registered attendees will receive a "swag bag" full of valuable goodies.  
  • It's Virtual.  Attend this event from the comfort of your branch, office or home.   
  • Learn about new products and services to better your credit union. 
  • You could WIN $500.  Participating attendees will have a chance to win awesome door prizes, as well as, a $500 GRAND PRIZE* for participating in the exhibit hall. 
MORE INFORMATION

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New scholarship aims for 100 new credit union financial counselors from 100 credit unions by 2021

Even before the American economy started shedding jobs as a result of the coronavirus (COVID-19) pandemic, Americans wanted access to reliable financial advice, according to a 2019 J.D. Power retail banking study. By adding credit union financial counseling services, your credit union can be better financial partners for members and help members manage the economic fallout of the coronavirus pandemic. And now, there’s a new scholarship opportunity to help you bring credit union financial counseling expertise to your credit union.

CUNA, The National Credit Union Foundation and CUNA Lending Council are dedicated to getting 100 new credit union financial counselors in 100 credit unions by 2021 to help credit unions make a lasting impact for members throughout their life stages and circumstances. With this goal in mind, they want to provide 100 credit unions a scholarship for CUNA Financial Counseling Certification Program (FiCEP). FiCEP teaches the empathy and financial skills professionals need to provide personal finance advice, including budgeting and debt management.

Professionals who complete the FiCEP program are eligible to test for their Certified Credit Union Financial Counselor (CCUFC) designation. To reach our goal of adding new financial counselors in credit unions by 2021, scholarship recipients must start the program by August 28, 2020, and complete two exams by December 31, 2020.

Learn more and submit your scholarship application at cuna.org/ficepscholarship.

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CUNA-League System Small CU Webinar Series

We all want to do more to preserve small credit unions. That’s why we’re thrilled to announce that CUNA and every State League in the U.S. has committed to create a new series of free webinars just for you.  

Starting Tuesday, August 4, CUNA and Leagues will be hosting weekly FREE webinars tackling the most important issues and subjects facing small credit unions today: new member growth, technology best practices, succession planning, marketing, board engagement, the list goes on. 

With every League and CUNA committed to hosting a weekly webinar, we will have sessions through Spring 2021, allowing us to record and create a library of 30+ sessions packed with ideas and actionable information. 

This is a fantastic opportunity to learn new strategies for the success of your small credit union and engage with peers from across the nation. We look forward to seeing you on Tuesdays at 2 PM CT starting August 4! Thank you to our sponsor CUNA Mutual Group. 

LEARN MORE AND REGISTER TODAY >

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Board & Committee Leadership Conference (formerly Volunteer Leaders Conference)

October 15-17, 2020 | Gatlinburg Convention Center | Gatlinburg, TN

Gatlinburg Convention Center
234 Historic Nature Trail
Gatlinburg, TN 37738

Make plans to join your peers for an education conference designed just for credit union volunteers. The 2020 Board & Committee Leadership Conference (Formerly Volunteer Leaders Conference) is set for October 15-17 in beautiful Gatlinburg, TN and features a full range of informative sessions on critical, timely issues, with first-rate speakers.

MORE INFORMATION

REGISTER TODAY!

Discovery 2020

Join thousands of credit union leaders across the country online, Thursday, August 13 for a day of Discovery! This free conference is designed to help boost your strategic planning with innovative ideas and key insights. 

Don’t miss this valuable opportunity. Check out the Agenda and Register Today! 

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A Credit Union Career Isn’t For Me. Change My Mind. (Part 3)

Industry leaders talk about how they cultivated a career in credit unions and how credit unions across the United States can recruit enthusiastic employees to fill tomorrow’s leadership bench

Research from the Society for Human Resource Management (SHRM) puts the direct cost of replacing an employee at as much as 50%-60% of an employee’s annual salary. Total costs associated with that turnover can range from 90% to 200% of annual salary. That’s a lot of moola to manage when an employee moves on. 

What’s more, the same research found even a tight employment market has little impact on the turnover of top-performing employees. Yes, even during a recession — and even during a pandemic — good employees will leave for greener pastures. And if the trade news is any indication, good executives will retire. 

Quarterly performance data shows credit unions have avoided laying off employees during the COVID-19 pandemic and subsequent shutdowns. Instead, anecdotal evidence suggests, they’ve opted to redeploy staff members to support areas of increased demand, such as call centers and mortgage departments. But what about the other side of that equation? How can credit unions attract new talent? And, once they have that talent in-house, how can credit unions keep it there? 

CreditUnions.com reached out to prominent leaders across the credit union industry to ask them three questions: 

  • How did you get started in the credit union industry?
  • How can credit unions recruit young workers? Why is that important?
  • How would you “sell” a young executive on why they should enter the credit union field?

Ray Springsteen, CEO, Abound Credit Union 

How did you get started in the credit union industry?

Ray Springsteen: I was lucky. I found credit unions through Callahan & Associates when I was 22 years old. During eight years at Callahan, I had the opportunity to: 

  • Learn from credit union leaders. I interacted with a generation of leaders who were so passionate about credit unions they called it a movement. I adopted the same words early on and began to understand what the movement has been able to do for consumers’ lives. 
  • See the inner workings of credit unions. In my roles at Callahan, I interacted with credit unions across the United States. I saw how investments worked and discussed them with credit union CFOs. I participated in strategic planning sessions at large and small credit unions, wrote articles about technology, and interviewed credit union IT professionals. I even worked with credit union accounts payable departments collecting on slow pays for Callahan directories. 
  • Understand what influences credit unions. Being in DC, I attended public meetings for associations and regulators and even attended some of the House Financial Services hearings in the late ’90s. This gave me a sense of what influenced credit union unions and the decisions their leaders made. 

The opportunity to participate in so many aspects of the credit union industry had a big influence on my career choice. It gave me the chance to see how credit unions, and those who influence credit unions, make a difference in the lives of members. 

How can credit unions recruit young workers? Why is that important? 

RS: Credit unions generally have great cultures, an incredible mission to serve members, and lots of opportunities to learn and do more. When young people learn this, credit unions can compete with other organizations to recruit talented young people. 

Connecting with schools has been one of the better ways Abound recruits young workers. We support a Work Ready designation for a local school system and conduct mock interviews. This has helped create some opportunities. We also created a relationship with a local university with about 20,000 students. We have met with the dean of its business school, spoken to business classes, and discussed research ideas. We also have an intern program with the college, which has allowed students to experience the credit union and potentially work for us after college. 

We hired one intern, Abigail McGraw, after graduation to work in analytics. Abby is a great example of the type of person we try to recruit out of college. She makes an impact immediately, has amazing ideas, and influences how we think about serving members. 

“It gives me a chance to take the skills I have learned in a completely different direction,” Abigail McGraw, an intern at Abound Credit Union, told WKU News in a student spotlight. Read more. 

How would you “sell” a young executive on why they should enter the credit union field? 

RS: A career in credit unions gives you the opportunity to: 

  • Impact the lives of consumers. An executive at a credit union will have an impact on the lives of thousands of people. Every day, consumers come to the credit union with ridiculous loan rates from other financial institutions. We’ll turn these loans, usually with rates exceeding 20%, to a 5% credit union loan and save the member thousands of dollars. This does two things for members. First, the loan will save a member and their family money. Second, we’ll likely change the way that member sees banking forever because they’ll never pay 20% on a loan again.

  • Work with a group of selfless people who care about what they do. To be good at impacting members’ lives, credit unions recognize they also must impact the lives of team members. At a credit union, you’ll find a group of smart, hardworking, passionate people.

  • Collaborate with communities. Credit unions look for ways to work with others. We have collaborated within the credit union industry and with community partners for our entire existence.

  • Grow your career and become a leader. Credit unions are not stagnant. We are all looking for ways to better impact the lives of members. Because of this, there will be new opportunities within the organization for team members to continue learning, grow careers, and lead. 

Read more: A Credit Union Career Isn’t For Me. Change My Mind. (Part 3) | Credit Unions http://www.creditunions.com/articles/a-credit-union-career-isnt-for-me-change-my-mind-part-3/#ixzz6TbBdLCpK

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Lake Chem Community FCU Receives 2020 Best of Murray Award

Murray Award Program Honors the Achievement

Lake Chem Community FCU has been selected for the 2020 Best of Murray Award in the Credit Union category by the Murray Award Program. This is this their 3rd consecutive year to win the award, earning their place in the Murray Business Hall of Fame. 

Each year, the Murray Award Program identifies companies that we believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and our community. These exceptional companies help make the Murray area a great place to live, work and play. 

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Some outstanding EIP checks canceled by IRS

FRB Services has posted a notice that, effective July 6, 2020, the Treasury Department’s Internal Revenue Service has announced the cancellation of outstanding Economic Impact Payment (EIP) checks issued to recipients who may not be eligible for such program payments, including those that may be deceased.

The Bureau of the Fiscal Service encourages financial institutions to determine the status of EIP checks by using either the Treasury Check Verification Application (TCVA) for single queries, or the Treasury Check Verification Service (TCVS) for bulk queries using an automated programming interface (API). 

If a financial institution inadvertently negotiates a canceled EIP check, Treasury will not request or demand recovery from financial institutions, unless there is an additional reason to do so, for example the check was not properly endorsed. Similarly, Treasury will not reclaim from financial institutions ACH payments made to recipients who may not be eligible for such payments under program specifications. 

Source:  FRB Services

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July 1, 2020 Effective Date Reminders

  • Expedited Funds Availability Act - Regulation CC in the Accounts Channel was previously updated to include changes effective July 1, 2020, which included: 
  • Increasing the "next day availability" amount from $200 to $225 and the “Large Dollar” amount from $5,000 to $5,525;

  • Eliminating "non-local" checks;

  • Threshold amounts for funds availability will be adjusted for inflation every 5 years.
  • HMDA Reporting Thresholds were previously updated in the Home Mortgage Disclosure Act Channel to include the change in the reporting threshold for closed-end mortgage loans from 25 to 100.

 

 

FinCEN guidance on due diligence for hemp-related customers

FinCEN has issued Guidance FIN-2020-G001 to address questions related to Bank Secrecy Act/Anti-Money Laundering (BSA/AML) regulatory requirements for hemp-related business customers. The guidance: 

  • Explains how financial institutions can conduct due diligence for hemp-related businesses
  • Identifies the type of information and documentation financial institutions can collect from hemp-related businesses to comply with BSA regulatory requirements
  • Is intended to enhance the availability of financial services for, and the financial transparency of, hemp-related businesses in compliance with federal law
  • Supplements the December 3, 2019, interagency statement on providing financial services to customers engaged in hemp-related businesses
  • Does not replace or supersede FinCEN’s previous guidance on the BSA expectations regarding marijuana-related businesses


 

Field of Membership – Rural Districts (Letters to Credit Unions)

On June 29, 2020, the Supreme Court denied the American Bankers Association’s petition to review the D.C. Circuit Court of Appeal’s decision on the NCUA’s field of membership rules. This ends nearly four years of uncertainty and helps the NCUA foster greater financial inclusion for all Americans. 

The lack of financial access is especially prevalent in rural communities, which have experienced the withdrawal of financial institutions over the last decade. The Supreme Court’s decision will assist the agency’s efforts to bring these important and often overlooked communities back into the financial mainstream. 

Read the Letter to Credit Unions 

Source:  NCUA

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