Marketplace Newsletter

In this issue:

From Laura's Desk

Credit Union Connect

VolCorp

Envisant

Co-op

Servion

tHRive

SRM

CMG Winter Report

CMG Article

CMG Upcoming Webinar

Save The Date

Save The Date At The GAC

Subscribe to Marketplace


 

From Laura’s Desk

  

As the Vice President of Association Services, I keep a close pulse on the vendors who serve this industry.  It’s my job to make sure you are receiving the best-in-class products and services so that you can serve your membership seamlessly. 

 With every new year comes new opportunities.  I am excited to work with each of you individually.  We are on the road and ready to visit to your offices and meet in person! Please reach out to schedule a visit! Let’s work together to find products to help your credit union meet the ongoing demands of the industry.

2022 is going to be a great year… I can’t wait to see all the great things we will accomplish together!

If I can do anything to assist you, please feel free to reach out by sending me an email or calling me at (502) 855-8209.

 

Sincerely,
Laura Parrish
VP, Association Services

Your Vision is My Purpose

 

 BACK TO TOP


 

 

 

March 10 – 11, 2022

Nashville Embassy Suites

Registration ONLY $75

Kentucky 50% off Discount code: KYConnect2022

Questions about this event?

Please email [email protected]

Register Today...

 

Join Us in Nashville for an In-Depth Educational Conference and Trade Show Focusing on Products, Services, and Service Providers

 

 BACK TO TOP


   

 

VolCorp Forms Corporate Partnership with KCUL  

News Release

1/20/22

 BACK TO TOP


  

 

 

Fraud trends

December 15, 2021

by MARYANNE COLUCCIENVISANT

 Account takeover (ATO) fraud is a common type of identity theft. Fraudsters gain access to victims’ accounts, and make non-monetary changes that include modifying personally identifiable information (PII), requesting a new card or adding an authorized user. This allows criminals with stolen credentials access to victims’ accounts. ATO fraud is not new; however, it is hard to detect, and can happen in a variety of ways. It also allows attackers longer windows to monetize fraud, making ATO an increasingly attractive fraud avenue.

Billions of stolen user names and passwords are being sold on the dark web. Hackers use enumeration as a way to validate a user name on a database. They accomplish this through automated programs or bots that take milliseconds to respond. Payment account enumeration is automated testing of common types of required elements–such as card number, expiration date, or CVV2. ATO is increasing at alarming trends and continues to target e-commerce merchants that offer digital goods.

The pandemic, and the ensuing lockdown, caused e-commerce sales to skyrocket. This upward trend continues today. Merchants and issuers are trying to stay ahead of the bad guys by implementing EMV and contactless payments to make it more difficult for hackers to obtain card numbers. The never-ending battle continues, as hackers have developed digital skimming devices on merchant’s web pages.

Cyber criminals have developed web shells. They install these small pieces of malicious code onto web servers to find remote access and then send commands to steal your data. They scan the web looking for vulnerabilities and gaps in security. These web shells are difficult to detect, making them an attractive tool for criminals.

Data can also be stolen as users type in Personally Identifiable Information. The business is unaware that there is a problem because this data is taken directly from the customer’s computer. This prolongs the attack and allows cyber criminals to harvest more debit and credit card numbers.

There are several ways to reduce account takeover. You’ve heard them before, but they are worth repeating:

  • Do not use the same log in and password on multiple sites. If you tend to use the same login and password you are making the attackers job easier.
  • Take advantage of Multifactor authentication. This is a one-time passcode by email or text.
  • Incorporate biometrics like facial or fingerprint recognition.
  • Monitor accounts for unusual activity and activate transaction notifications.

Payment fraud is evolving and happens quickly. Fraud prevention and detection are more important than ever. A layered approach and education will help to reduce fraud losses.

 

 BACK TO TOP


 

  

CO-OP Financial Services Celebrates 40th Anniversary

 

with a Year of Product Roadmap Achievements on Behalf of Credit Unions 

 CO-OP Financial Services celebrated its 40th anniversary in 2021 with numerous achievements that signal its continued leadership in building a modern financial services experience.

 “CO-OP’s mission for the past 40 years has been to champion the growth of credit unions and their members’ financial well-being, and we are just getting started,” said Todd Clark, President/CEO of CO-OP. “In the past year we invested $50 million in our technology roadmap to ensure our clients remain competitive, strong and able to delight their members with leading-edge technology and services. Our financial strength, which has allowed us to transform into a true financial technology engine for the credit union industry, was bolstered by record-breaking payments transactions of more than 8 billion in 2021.”

 Product Roadmap Investments

 CO-OP’s investments are reflected in the many market-leading solutions the company delivered this year, all designed to help credit unions meet their members needs as they continue to migrate to more digital services. New products include Digital Card Issuance, expansion of the CO-OP Springboard card servicing application and the introduction of CO-OP Resolution Center, the company’s proprietary new disputes and chargebacks processing platform, designed with credit union input.

 In addition, CO-OP launched COOPER Fraud Score, a machine learning tool to detect, prevent and mitigate fraud. During its initial free-trial period for clients, COOPER Fraud Score successfully identified and stopped fraud attempts that would not have been detected otherwise. COOPER Fraud Score saved clients more than $200,000 in fraud in the first two weeks of service. 

 “These product deliveries are the fruit of our multi-year investment plan and validate the strategic decision to leverage a strong, debt-free balance sheet and invest capital on behalf of our clients to provide new products and services,” said Clark. “The past year was the strongest yet for technology delivery, and in the past five years we have launched more than 150 products to help our clients meet the seamless digital payments experience their members expect today. We intend to continue this path of innovation, as we announced with our 2022 product roadmap in September.”

 More information about CO-OP and its work on behalf of credit unions can be found here.

 

 BACK TO TOP


 

 

  

 

2022 Housing Market Outlook

Written by The Servion Group

Published on January 13, 2022

2021 finished up as one of the most competitive years the housing market has ever seen. Home prices skyrocketed to levels that easily blew past the experts’ predictions. 

So, what about 2022? Will home shoppers see conditions start to tilt in their favor? Let’s walk through some of the possibilities for housing and home lending for the upcoming year. 

Home sales expected to increase yet again

Despite affordability challenges and rising interest rates, Realtor.com Chief Economist Danielle Hale says 2022 will be a “whirlwind for the housing market.” Hale told Forbes that home sales are expected to increase another 6.6 percent while home prices will rise another 2.9 percent on top of 2021 highs. The National Association of Realtors thinks prices will climb even more: 5.7 percent higher than 2021.

Purchase originations volume to rise

Those continuing home price increases are expected to lead to even higher purchase mortgage originations in 2022. Freddie Mac says purchase originations should rise from $1.9 trillion in 2021 to $2.1 trillion in 2022.

Refinance activity will soften – a lot 

With higher interest rates forecast for 2022, Freddie Mac anticipates a major drop in refinance activity. The GSE expects refinance volume to drop from $2.6 trillion in 2021 all the way to $995 billion in 2022.  That would be a roughly 62 percent decline in volume.

Overall origination volume will decline

Freddie Mac forecasts that total originations (purchases plus refinances) will decline from $4.5 trillion in 2021 to $3.1 trillion in 2022. That $3.1 trillion is still a massive amount of business, but a sizeable slowdown from the breakneck pace of 2021.

About those rates

As of mid-January, economists are expecting the Federal Reserve could raise interest rates four times during 2022 as the central bank turns its attention to controlling inflation. The Fed Funds rate is NOT the same as mortgage rates, but the Fed’s plan to raise that rate plus slow down the bond-buying program are a recipe for higher mortgage rates. 

Economists at both Freddie Mac and the National Association of Realtors expect the 30-year fixed mortgage rate to rise to 3.5 percent by the end of 2022. Realtor.com predicts an average rate of 3.3 percent for the year, hitting 3.6 percent by the time 2022 is over.  

What’s driving such high purchase demand even though prices are so high?

There are 45 million millennials aged 26-35 – prime first-time buyer age.  Hale says demand from these young households will keep the market competitive and high-priced, even though housing inventory is expected to finally start to increase. The small increase in available homes won’t be enough to offset millennial demand.

Home equity offers should take off

“2022 will be the biggest year for home equity accounts opened in the history of the mortgage market,” says Jeff Taylor, managing partner at risk compliance firm Digital Risk. 

“If a client already has 2.5% on their mortgage, and they need to borrow $100,000, do you refinance the whole thing at 3.5%? Or do you just go get a home equity loan or HELOC and leave your 2.5% alone over?” he said in an interview with National Mortgage News.

At Servion, we don’t offer home equity loans, but we wrote about this topic in December as part of our commitment to helping partners identify all kinds of opportunities. 

The bottom line

Mortgage rates and home prices will rise, albeit slowly. More homeowners are expected to list their homes for sale in 2022, which could alleviate some of the supply shortage, but demand from millions of millennials will still far outpace supply, leading to those home price increases. Buyers will therefore still need to act quickly when they see a home they want.

For lenders, expect far less refinance requests. Purchase volume, however, is expected to slightly grow. No matter what the market holds for 2022, you can rely on Servion Mortgage to be here to meet your needs and exceed your expectations.  

NICOLE COWAN
Senior Account Executive
c: 765-994-6022
www.myservion.com

 

 BACK TO TOP


 

 

  

 

HR Non-Compliance Has Never Been More Costly

With dozens of employment laws changing every year, employers can often find themselves in a constant state of wondering whether they’re in compliance with employment labor laws. Even more concerning, the Department of Labor increased maximum labor law posting fines last year. Current maximum fine amounts for not having employment posters accessible to employees are as follows:

 Family and Medical Leave Act (FMLA): $178

Title VII of Civil Rights Act (EEO): $576

Job Safety and Health: It’s the Law (OSHA): $13,653

Employee Polygraph Protection Act (EPPA): $21,663

 These increases underscore the importance of displaying up-to-date labor law posters in your credit unions. While a fine for failure to display a poster typically applies in situations where an employer willfully violated the law, the fact that maximum penalties have increased to over $36,000 demonstrates that federal agencies are serious about employment posting compliance.

 tHRive recommends that employers update their posters each year as part of your normal year-end processes. Companies that specialize in poster compliance can help you establish an easy, automatic process for federal and state all-in-one posters at a very nominal cost of around $20 - $30 per location.

 Contact tHRive for a complimentary consultation to learn more about HR compliance in your credit union and the many concierge HR services available to your credit union. You can follow tHRive HR, Inc. on LinkedIn at https://www.linkedin.com/company/65465103/admin/ to keep up with important HR services, news and updates.

Ray Mitchell, PHR, SHRM-CP
Principal HR Advisor | Chief HR Officer
tHRive HR, Inc.
(502) 671-3098

 

 BACK TO TOP


 

 

As your team focuses on a strong start to 2022, there is no shortage of critical topics our endorsed partner, SRM, is discussing with our members as another year of both uncertainty and opportunity commences. Their expert team can help you identify savings to improve your bottom line and provide strategic guidance for any transformation initiatives.

Here are the latest insights from SRM relevant to you:

SRM welcomes the opportunity to hear about your priorities in 2022 and be of service. They continue to find savings in vendor contracts for our members – with over $5 billion saved to date across their client base. They also offer advisory services across payments, operations, experience and engagement, data strategy, and technology.

You can also learn more about the SRM Account Boost solution – an invaluable, data-driven tool that drives account and loan growth, even in a time of unprecedented liquidity. For more on this topic, download SRM’s report on "How Financial Institutions Can Boost Account Growth to Move with Changing Margins". 

Don’t hesitate to contact Uma Zielinski at [email protected] or (740) 400-9141. SRM will help you find new ways to unlock savings and can support the strategic efforts of your organization. You can subscribe to their blog here for more insights.

 

 BACK TO TOP


 

 

 

CMG Winter Report

 The CMG Winter Report is ready for you to review. Thank you to our trusted partner!

 CMG 2021 Winter Report

 BACK TO TOP

 

Learning from Top-Performing Credit Unions:  Strategic Do’s & Dont’s

 By: Steve Heusuk, CUNA Mutual Group’s Sr. Manager, Customer Intelligence

 In 2008, the bottom fell out of the economy. The Great Recession devastated world financial markets, the banking industry and real estate. During this time of great economic upheaval, CUNA Mutual Group launched what would become a series of informational presentations to raise thought-provoking questions and share strategic insights to help inform Credit Unions’(CU) strategies for surviving the recession and thriving beyond. Some of the topics explored included “Why the Credit Union System is Needed Now More Than Ever” and “Battle for the American Consumer”. As a member of the team that produced and delivered these early thought leadership presentations, I conducted much of the secondary research on these topics and helped create this content. 

Fast forward 13-years. The COVID-19 global pandemic ushered in a new worldwide recession. And I now lead CUNA Mutual’s annual thought leadership research effort to help inform CU strategies.

According to research cited in CUNA Mutual Group’s newest study titled, “Making Strategic Choices for Growth,” the CU value proposition is under attack as evidenced by:

  • Three in five CUs with total assets of less than $1 billion lost members between 2017 and 2020. 
  • Credit Union’s share of total Primary Financial Institution relationships declined from 21% in 2018 to 12% in 2020.
  • Credit Union’s market share for certain loan classes has declined in recent years. For example, CUs’ share of total new and used vehicle financing declined from 22.7% in Q2 2018 to 18.2% in Q2 2021 according to Experian.

It’s enough to make you feel like the sky is falling! And when you feel like the sky is falling the last thing you want to do is look up. But’s that exactly what you should do. You should look up and learn from those (in this case CUs) that are successful. Fortunately, CUNA Mutual’s research this year explored the strategic choices of these top-performing CUs. Based on top performers’ strategic choices, you may want to consider these three strategic do’s and don’ts.

1. DON’T assume member service is a competitive advantage; validate it

Forty-one percent of CU executives with more than $250-million on their balance sheets list member service as one of their top three competitive advantages. However, CUs lagged banks on the courtesy and helpfulness of staff - 84 versus 85 points – according to the 2020 American Customer Satisfaction Index (ACSI). They were also on par with banks in terms of call center satisfaction with both at 79.  Credit Unions’ scores for these two service-related metrics have declined in recent years. If CU leaders believe their institution leads competitors on service, the ACSI results suggest that it may be prudent to validate this belief through a survey comparing members’ and competitors’ customers’ ratings of service.

2. DO consider what metrics matter to your Credit Union

Through this year’s research, we learned that the strategic choices of loan growth, membership growth and Return on Assets, differed in important ways. Credit Unions seeking to learn from top performing CUs may want to consider which metric matters most. For example, many CUs are de-emphasizing branches and dedicating more resources to expanding their digital offerings like digital auto loans and mortgages. However, if your CU is focused on membership growth, you may not want to move away from branches just yet. Membership growth leaders are more likely to say branches will be a top-three distribution channel in 2022. CUs focused on membership growth still view branches as being mission-critical.

3. DO Focus on organizational culture and internal alignment

Our survey found that organizational culture, i.e., a credit union’s core values, norms [e.g., how employees act / behave when no one is looking], accountability systems, talent management, etc., was cited by only one-in-three CUs surveyed as a top-three source of competitive advantage. However, the critical importance of culture is more likely to be recognized by top-performing CUs. A majority of these CUs agree that:

  • Their leadership team fosters a positive culture that helps them differentiate in the marketplace.
  • Leaders and employees at their credit union are aligned on their strategy and how it will be executed.

As our research has shown, top performers’ answers to the “Playing to Win” questions differ in important ways from other credit unions.  However, making the right choices might not be enough.  Having a performance culture and ensuring leadership and frontline staff are rowing their proverbial boat in the same direction help ensure a CU’s strategic choices are successful.

These were just some of the insights found in this year’s thought leadership study, “Making Strategic Choices for Growth.” CUNA Mutual provides its annual thought leadership research to help inform credit unions’ strategic discussions and planning to ensure a vital, thriving credit union system for years to come.  You can learn more about this year’s findings by visiting our landing page.

 BACK TO TOP


 

 

Upcoming Webinars

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

  

Fintech Forum Webinar Series

 Fintech Forum Webinar: Building Successful Fintech Partnerships – featuring Rodney Hood, Eleventh Chariman & Board Member a NCUA; Ty Muse, CEO Visions Federal Credit Union; Tanya Van Court, Founder & CEO of Goalsetter; Carlos Molina, Sr. Risk Consultant at CUNA Mutual Group

Tuesday, January 25 @ 1 pm CT  | Register Now

  

Discovery Webinar Series

Exploring Fintech Partnerships to Enhance Your Lending Strategy

CMFG Ventures has been and is continuing to invest in lending fintechs to help credit unions stay competitive and grow their loan portfolio. Join us to learn from the founders of three CMFG Ventures portfolio companies focused on lending:

  • WithClutch – Auto loan refinancing solution enabling credit unions to recapture members’ loans through an all-digital experience
  • RenoFi - Renovation lending platform underwriting loans using the post-renovation appraisal value
  • Splash Financial – Student loan refinancing platform for young professionals with a focus on medical and graduate-level professions

Wednesday, February 9 | 1:00-2:00 p.m. CT | Register Today!

 

 BACK TO TOP


 

SAVE THE DATE!

 

KASASA Webinar

DRIVING 52% MORE LOANS PER BORROWER
Webinar, Wednesday, January 26th
10:00 AM CST | 11:00 AM EST

 

The loan market is ultra-competitive, and community financial institutions continually lose market share. Add to that the fact that borrowers have more debt at more than one institution. Engaged borrowers adopt secondary products – like checking accounts and can make your loans more profitable than what you have today.

During this webinar, Kasasa will discuss:

  • Current market headwinds in lending
  • Challenges with "the way lending has always been done" in today's environment
  • Trends in top lending performers

REGISTER HERE

There is no charge to attend the webinar.

 

 

 

  

CRYPTO CURRENTS:
RECAPPING THE LAST YEAR IN CRYPTO AND DEFI 

A Webinar Hosted by SRM

SRM will review the year in crypto in 2021, highlighting the developments that matter the most to financial institutions. We'll also look ahead to this year, including the latest market trends and predictions for speed of adoption and new solutions.

Join SRM's crypto leaders Larry Pruss, Patti Wubbels, and Keith Ash on January 25 at 11 AM Eastern. Complete the form to reserve your spot. 

Register Here!

 BACK TO TOP


  

SAVE THE DATE AT GAC!

 

 

 

 

  

 

Are You Ready to Rock?

We’re back—and ready to rock! Please join us for CO-OP Rocks GAC 22, an exclusive, invite-only evening event on Tuesday, March 1 featuring BROADWAY’S ROCK OF AGES BAND®.  

With a serious commitment to playing great 80s rock hits the way they were meant to be played, the band features musicians and singers from the original five-time Tony Award-nominated show, including American Idol finalist Constantine Maroulis, as they crush renditions of the decade’s best songs all in one exciting performance.  

The fun begins at 6:30 pm at The Hamilton, an eclectic music and dining venue just steps from the White House. Bring a guest and join us for a fun-filled evening of live music.  

CO-OP Rocks GAC 22 with the Broadway Rock of Ages Band

Contact Laura Parrish for a VIP badge!


When: Tuesday, March 1 from 6:30 to 10:30 pm
Where: The Hamilton - 600 14th St NW, Washington, DC 20005

 

 

  


FIS® invites you to an evening of insight and inspiration at the historic Watergate Hotel! Join us on Tuesday, March 1, from 7:00 p.m. to 10:00 P.M. ET.

Located at the historic Watergate Hotel, this evening will include a chance to meet with our leaders while enjoying some hors d’oeuvres and cocktails.

Plus, take in some very valuable insights from our special guest speaker and award-winning leadership, diversity and inclusion strategist, Dr. Omékongo Dibinga. His keynote will bring education and takeaways that will empower you to make change in your community.

Also, be sure to stop by the FIS booth at the GAC with any questions you may have or simply visit to say hello. Our team would love to see you!

To RSVP, click here. We look forward to seeing you there!

 

 BACK TO TOP

 


 

Subscribe