Marketplace Newsletter

In this issue:

Webinar: Navigate through the Noise Technology and Your Financial Institution

CDFI Certification Turns Financial Inclusion Values into Action

Webinar: Accelerating Loan Growth Through Fintech Partnerships

Discovery 2022

Webinar: Join this in-depth look at today's fraud trends impacting your credit union 

CeclSolver Webinar Recording

I Love My CU

Western Small CU Conference

 


       

Register Now to Attend!

Navigate through the Noise Technology and Your Financial Institution

For our CU Executive Members and Friends:
Please join KYCUL Services and the TRGroup! ...and, invite your colleagues.
2.5 hours of relevant and actionable information that will equip you to... Grow your Tech-Enabled Financial Institution
Expert Speakers & Participants include:
  • NCUA Board Member, The Honorable Rodney Hood,
  • The Bancorp Founder and Former CEO, Betsy Cohen
  • Open Lending Founder and CEO, John Flynn
  • Leading Industry Experts, VCs, and Next-Gen Tech Innovators...and, senior executives from hundreds of financial institutions like yours.
Date: June 28th
Time: 12-2:30pm ET
Format: Quick expert insights and relevant tech pitches.
Where: Your laptop.
How: Complete and submit this registration. We will send you more information and access information closer to the date.

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CDFI Certification Turns Financial Inclusion Values into Action

By John Cassidy, Director, Credit Union System Relations | CUNA Mutual Group

While the pandemic shined a bright light on a number of latent societal issues, financial inequity was one of the most pertinent for credit unions. Driving right at the heart of the credit union purpose, the unavoidable fact that financial access in the U.S. is far from equal reenergized financial inclusion efforts across the industry.

Among the programs igniting this renewed spark is the Community Development Financial Institution (CDFI) Fund, which has become the single largest source of grant funding available to credit unions serving low income and financially underserved communities. To participate, credit unions must be CDFI certified or obtain the Certification within three years if they’re applying for a Technical Assistance grant. Although the Certification has existed for decades, misperception around eligibility, participation and the benefits of a CDFI Certification have prevented otherwise qualified credit unions from pursuing it. To help solve for this, CUNA Mutual Group and Inclusiv – the only national association of CDFI credit unions - collaborated on the CDFI Awareness and Certification campaign to educate credit unions about the benefits of Certification and to create a network for existing CDFI credit unions to learn about and access additional resources. To complement this initiative, leaders from four successful CDFI credit unions participated in the panel discussion, Growing While Leading the Way on Financial Inclusion, during CUNA Mutual Group’s Discovery2021 conference to share how they have used their CDFI certification to help more members.

“We never thought we would qualify.”

A CDFI Certification can be earned by any credit union that predominantly serves low-income consumers and financially underserved communities. CDFI grants are meant to increase the capacity of credit unions to lend deeper in their markets and expand access to responsible financial products and services. Financial inclusion and community development are both sustainable activities and drivers of growth and relevance.

An additional benefit is a strengthened set of values-centric financial institutions that grow and deepen engagement with members. Median CDFI credit unions outperform median non-CDFI credit unions in earnings, lending, asset and membership growth.1 Members Credit Union in Connecticut is one such cooperative doing well by doing good via its participation in the CDFI program.

The 10-employee credit union put most of its resources into low- and modest-income people and Hispanic immigrants, including undocumented individuals. As a result, the credit union is outperforming its peers in every way from membership and asset growth to new-low charge-off and delinquency levels.

Notably, leaders of the $40 million credit union assumed the cooperative would not be able to participate in CDFI. “We are located in a very high-income area with one of the largest gaps in the country between the haves and have-nots. We never thought we would qualify,” said Kathy Chartier, Members Credit Union president/CEO. “It really can help the long-term survival of a small credit union to become a CDFI.”

“It’s a very rewarding experience.”

Similarly, Canopy Credit Union in Washington discovered an entirely new line of business through its CDFI Certification. A $190 million financial cooperative, Canopy had no experience with indirect auto lending prior to the day a low-income individual in need of financing walked into the credit union. In helping that one borrower achieve the funds for a used car purchase, Canopy uncovered an important service they could share with many more underserved people in nearby neighborhoods.

That borrower was a community member with a disability who had stopped utilizing credit, and therefore, had no credit score to help him obtain a car loan. He visited Canopy to see if they could help. Because the CDFI-designated credit union believes a person is much more than a score, Canopy lenders worked with him and were able to provide the financing he needed.

Canopy President/CEO Charlotte Nemec tells the rest of the story: “He went to the dealership and told them about us and how we had helped him. That dealership reached out to us to learn how they could do more business with us. They have a lot of customers no other lender will touch – because they either have no credit or they have had poor credit. We are not an indirect lender, so this has been a new experience to work with dealerships, and it’s been a real boon for us. It’s a very rewarding experience from the members’ perspective and ours.”

Full support throughout the movement.

Credit unions that participate in the CDFI program have several influential allies on their side as they stand up their individual financial inclusion initiatives. Aside from CDFI funding, training and collaboration with more than 433 other participating institutions serving 16 million members and combined assets of around $230 billion, they receive support and advocacy from a multitude of organizations, but Inclusiv is the recognized national authority in all things CDFI and community development.2

Inclusiv was instrumental in establishing the CDFI Fund in 1994. With a permanent seat on the board of the national CDFI Coalition, Inclusiv sets an annual list of priorities for advancing the CDFI program. In 2021, those priorities included things like increasing appropriations to the CDFI Fund, achieving greater institution diversity in the CDFI Fund and fostering the formation of state CDFI funds to expand access to credit and affordable financial services.

CUNA Mutual Group joins a collection of credit union leaders that advocate for increased capital infusion for CDFI and Minority Depository Institutions (MDI)3, as well as Inclusiv’s CDFI Awareness and Certification campaign. Different teams within the company get involved in similar initiatives to solve for financial services access issues. The Corporate and Legislative Affairs team, for instance, is working with Congress and the state level to advance dialogue around the importance of broadband, or high-speed internet connections, in helping the underserved access financial services. CUNA Mutual Group’s Multicultural Center of Expertise ensures the CUNA Mutual Group products and experiences credit unions deliver to their members account for the principles of diversity, equity and inclusion.

CDFI Certification for every strategic plan.

The CDFI Fund offers rolling applications and deadlines, so applying to be certified aligns with every imaginable strategic plan or roadmap. Likewise, the requirements for application are flexible enough to accommodate most credit unions’ structure and operations. An eligible applicant…

  • is a legal entity at the time of application;
  • has a primary mission of promoting community development;
  • is a financing entity;
  • primarily serves one or more target markets;
  • provides development services in conjunction with its financing activities;
  • maintains accountability to its defined target market; and
  • is a non-government entity and not under the control of any government entity (Tribal governments excluded).4

Financial inclusion is “the civil rights issue of our time.”

To encourage more financial services leaders to confront the inequities that exist within our global society, NCUA Board member Rodney Hood, famously called financial inclusion “the civil rights issue of our time.”5 As Inclusiv’s 2021 advocacy platform states, CDFIs are one of the most effective ways to channel capital directly into communities that have been hardest hit by the COVID recession and are the last to recover from economic crises.6

Credit unions are called to help everyone achieve a brighter financial future, and CDFI Certification helps turn those values into action. This year alone, almost half a billion dollars in grant funding has been channeled to credit unions. To put this in context, that’s the amount of funding credit unions have received since the CDFI Fund’s inception in 1996. In addition, more than $2 billion in secondary capital investments will exponentially expand the capacity of these institutions to lend deeper in their communities.2

The latest expansion of credit unions joining the CDFI network signals even more growth and engagement for the future. This powerful program is set to make an impact for decades to come in communities across the country.

1Inclusive, 2022.

2Inclusive, January, 2022.

3 National Credit Union Administration, “Minority Depository Institution Preservation”, 2021.

4Community Development Financial Institutions Fund, “CDFI Certification”, 2022.

5National Credit Union Association, “NCUA Chairman Rodney E. Hood Remarks – Institute of International Bankers’ Virtual Summit on Diversity, Equality, and Inclusion”, July, 2022.

6Inclusive, “Inclusive CDFI Advocacy Platform”, 2021.

CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries, and affiliates. Corporate headquarters are located at 5910 Mineral Point Road, Madison WI 53705. CORP-4161260.1-0122-0224

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Fintech Forum Webinar Series

Accelerating Loan Growth Through Fintech Partnerships
06/28/2022 2:00 PM ET
 
With fintechs attracting consumers due to their ease and convenience, it’s really no surprise that credit unions are turning to fintech partners to help grow their loan portfolio. This panel will highlight the unique perspectives from a credit union leader and fintechs who are working towards building successful and sustainable partnerships.

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Join Us August 11 for CUNA Mutual Group’s 13th Virtual Conference

For more than a decade, credit union leaders have expected big things from our Discovery conference. This year, you can expect even more.

Discovery2022 will offer bingeworthy sessions to help with your strategic planning and brand-new opportunities for networking with the credit union colleagues you’ve missed. The networking addition is thanks to an entirely new virtual conferencing platform, which also promises greater interactivity and richer learning experiences for everyone.

Collaboration is the beating heart of the credit union movement, so join us on August 11, 2022, for an all-day, immersive (and free!) occasion. You can expect sessions on…

  • Emerging Financial Industry Trends
  • Technologies of Today and Tomorrow
  • Attracting & Retaining Talent/Employee Engagement
  • Unraveling Cryptocurrency/Blockchain
  • Deep Dives into Member Experience/Consumer Trends
  • Leading in the New Future
  • And much more…

From the sharpest minds to kindred spirits, the virtual Discovery conference hosts thousands of credit union leaders and their staff annually. We hope to count you among them this year!


Join this in-depth look at today's fraud trends impacting your credit union 

Join us live Thursday, ​​​​​June 23 at 11 a.m. PT/ 2 p.m. ET for this 90-minute virtual event when we'll take a deeper look at the top five fraud trends on our 2022 watchlist and highlight any new ones that have popped up. Our team of fraud experts will analyze what the fraud data is telling us to pinpoint where fraud is most prevalent, discover which industries are most impacted and learn how today's fraud trends compare to what we saw in 2021 with a Year-over-Year analysis — giving credit unions valuable insights to fight fraud in their own regions.

Once again, we'll be joined by our panel of industry experts who will share their experiences managing emerging fraud threats. 

Register Here


 

Join QwickRate as they introduce their affordable CECLSolver tool.

In the webinar, they discussed:

  • How you can simply edit a template to create loss estimates and reports
  • An efficient and practical CECL approach that any credit union can afford — without difficult analysis or expensive consulting
  • Why you can be so sure of meeting regulatory expectations (hint: the tool is built on the regulators' guidance)
  • AND. . . How they can aggregate your data and calculate your Weighted Average Remaining Maturity for your portfolio, if you desire

Watch the Recording Here

To schedule a demo contact David.Suri@qwickrate.com

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On July 29th, the credit union movement will come together with the purpose of inspiring authentic and high energy conversation about why we love our credit unions under the common hashtag, #ILoveMyCreditUnion. 

Western Small CU Conference

Event Date: July 17 - July 19, 2022

This low-cost event from small asset-sized credit unions is brought to you by CUNA, Credit Union Association of New Mexico, Dakota Credit Union Association, Mountain West Credit Union Association, Montana’s Credit Unions and Utah’s Credit Unions. In addition, thanks to the generous support of Mountain America Credit Union for hosting and our sponsors, we are able to keep the registration fee at a lower price point.
Small credit unions will be inspired to continue transforming their organizations so that they can better meet the financial needs of members and stay relevant into the years ahead.
Sessions will be inspirational, educational, and actionable and will leave any leader who attends better equipped to position their credit union for a bright and exciting future.
Just as exciting, attendees will have the opportunity to network with other small credit union leaders from across the country.
Who should attend:
This conference is beneficial for CEOs, board members, and all management-level positions at small credit unions.
We care about your safety:
CUNA strives to create safe, face-to-face events where Leagues, credit unions, and system partners can come together and learn from one another. We are in regular contact with event conference sites and local public health officials about the proactive measures they are taking to protect attendees' health and safety. Additionally, our staff closely tracks COVID-19 recommendations from the Centers for Disease Control and Prevention and will follow any applicable local and state guidelines.
We pledge to share updates and information as it becomes available and will communicate with registered attendees and our membership at large. 


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