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THE Training iSSUE MAy 2013 VOLUME 8 ISSUE 5 9.95 Credit Union Training and Development The Time is Now Does the Federal Reserve Have a High Amount of Interest Rate Risk Direct Mail Success 9 Essentials of LOYALTY REVENUE AUTO LOANS with AUTOPILOT LENDING by SWBC AutoPilot Lending helps you manage the lending lifecycle from beginning to end enabling you to grow acquire and retain borrowers increase auto loan volume and improve your auto loan performance and revenue. CALL AN SWBC REPRESENTATIVE AT 866-316-1162 OR SCAN THE QR CODE BELOW TO LEARN MORE SWBC 2013. All Rights Reserved. 5540-922 0213 COnTEnTS Credit Union BUsiness may 2013 V O L U m E 8 i S S U E 5 4 6 10 14 18 22 pov Looking Forward Tim O Hara ACHIEvINg SkIllS Holly Herman CU TRAININg 26 29 32 37 lEADERSHIp identifying Future Leaders Dr. Sandra L. Torres TECHNICAlly SpEAkINg Roy W. Urrico MARkETINg MATTERS Tony Rizzo CU SpoTlITE Participate in a College internship Program What s Holding You Back Credit Union Training and Development The Time is now Ken Gonyer CU CoNTENT A Round Up of Recent Announcements 9 essentials of Direct Mail success Making History at Philadelphia Federal Credit Union Sharon Sweda Volunteer Laura Enock One Credit Union s Mark on the Community CFo CURRENCy Does the Federal Reserve Have a High Amount of interest Rate Risk Emily Mor Hollis DEbIT MATTERS Get it for the entire executive team subscription Data Analysis Suzanne Savage Finding Boston Bombers and What it Means for Financial services May 2013 Credit Union BUSinESS 1 aBOUT US Publishing Team Tim O Hara Publisher tim Steve Magnuson Managing editor steve Iliana Nord Operations Manager iliana Patti Manzone Designer Homer Marshman III Circulation Director THE Training iSSUE MAy 2013 VOLUME 8 ISSUE 5 9.95 Credit Union Training and Development The Time is Now Does the Federal Reserve Have a High Amount of Interest Rate Risk Staff Writers Laura Enock CU Content Ken Gonyer Innovation Holly Herman Achieving Skills Emily Mor Hollis CFO Currency Tony Rizzo Marketing Matters Suzanne Savage Debit Matters Sharon Sweda CU Spotlight Sandra L. Torres Leadership 9 Essentials of Direct Mail Success Subscriptions Credit Union BUSINESS is published monthly (12 issues per year) by CU Business Magazine inc. A one-year membership costs 89 for print or 69 for Digital. An online membership form is available at Sales and advertising Bernie Fitzgerald Advertising executive Bernie or 561-282-6015 1 Greg Halpern Advertising services Manager Greg or 561-282-6015 4 Contact information Credit Union BUsiness Magazine P Box 2223 Palm Beach FL 33480 .O. (561) 282-6015 (561) 588-7711 (fax) tim 2 Credit Union BUSinESS May 2013 HELP YOUR MEMBERS SAVE BIG MONEY ON VEHICLE REPAIRS AND CREATE NEW FEE INCOME WITH NAC As a nationally recognized administrator of top quality vehicle service agreements NAC is focused on providing the products credit unions need to create new fee income and expand membership. NAC s fully insured plans provide YOUR MEMBERS with peace-of-mind protection against expensive vehicle repairs. Our powerful online technology provides YOU with simple-to-use sales tools to automatically match vehicles to eligible plans display cost-effective options and generate PDF contracts for your customers when finished FOR YOUR MEMBERS Great Benefits - Roadside Assistance Rental & More Superior Customer Service Fast Claims Processing FOR YOU Online & On-Site Training Fast Personal Support Easy Online Submissions Custom Marketing Materials Auto Powersport & RV Plans NACSOLUTION.COM 800-664-5724 FROM tiM T Publisher s POV Susan is a believer in training and I m looking forward to her reaction to this issue where we launch the first in a series of articles on training. I got the idea to focus on training from another lady named Susan--or Suze as in Suze Orman--the celebrated personal finance guru we see on television all the time. A couple of years ago I had the privilege of interviewing Ms. Orman for this magazine. Naturally I asked about credit unions and all of the opportunities open to them. Her prevailing attitude was Credit Unions It s Your Time Suze felt optimistically about CUs because of their member-based business model a model that is contrary to that of American banking and said Customers know that Bank of America treats them by law and not by love. She also expressed the need for CU employee education adding You need to educate your employees so that they know what they re talking about. Believe me a few untrained employees can bring you down I asked full time credit union professional and part time CUB contributor Ken Gonyer to write our lead feature on training. Ken has written several excellent articles for CUB over the past three years and they are always highly informative. Ken is especially interested in CU Training and he has credentials He is a member of the American Society for Training and Development (ASTD) as well as the International Association of Coaching (IAC). Ken is a soft-spoken professional with a great deal of industry knowledge and I m proud to feature his writing in these pages. Thanks for reading he other day I read another Death of the Branch article on the Internet--a three-part story Its argument that technology will replace the branch was pretty forceful and nearly had me convinced. However later that day I visited my CU branch and was met with a long line of members and a busy staff scurrying about trying to serve them. Clearly this branch was not even close to death What a relief My own family has been members of Tropical Financial Credit Union for more than 20 years. We re a credit union s dream and have done 100% of our banking including mortgages checking and numerous auto loans at TFCU since 1989. When it came time to find a bank for Credit Union BUSINESS magazine we had no doubts TFCU was there to serve. CUB is the only credit union trade publication that is also a credit union business member a practice what you preach fact of which we re very proud. I often read that credit union members actually enjoy visiting their branch. While I m not a fan of waiting in line (my branch even has an special line for shared branching visitors ) I must admit that I really do enjoy running into the folks who work there. The manager of the West Palm Beach TFCU branch is a very hard-working woman named Susan Baum. I suspect that Susan spends a fair amount of time training all her staff. Susan wears many hats and is more often seen working with tellers and staff and personally helping members than sitting in her office administrating. From tellers and MSRs to Werner the branch s mortgage expert--I ve watched her work with nearly every member of her team. 4 Credit Union BUSinESS May 2013 aCHiEVing SkiLLS What s Holding you Back O By Holly Herman ccasionally we ve all felt that something has prevented us from doing the very thing we know how to do. It lies hidden within us and it s mysterious. We ve all experienced it but rarely know what to do about it and worse rarely acknowledge it. What is it It s fear. Why don t we eat healthier Why do we keep putting off having those difficult conversations with employees Why do we put up with poor workplace performance Often it s because we re afraid of change and doing things that make us feel uncomfortable. We ll do everything possible to avoid dealing with uncomfortable or unpleasant situations and use every excuse we can think of. The Do Plan Here s the plan . . . don t just read it do it 1. Learn by doing. Don t learn by reading. Of course reading is helpful but if you read just read a little then do. Don t learn by talking. We talk too much already. Start doing and if you re going to talk talk while doing. In the doing you learn what knowledge or information gaps are stopping you you ll learn that there are steps you don t know about or haven t figured out how to climb you might even be stopped cold. Once you experience these obstacles you can begin to take appropriate action to fill in the gaps anticipate and climb the steps and keep moving on. 3. Conquer your fears. We re going to beat back fear by doing. Afraid of writing Just take two minutes and do it. That s such a small amount of time such a small commitment to writing it s not that scary. We can conquer our fears--we can do things we were afraid of by taking small steps first. We learn that it is possible to do things we didn t think we could we learn that we can. 4. See failure as a learning tool. Most of us are afraid of failing. Failing is an important learning tool. When you can already know how to do something perfectly you re not learning anything. You often have to fail try another way repeat steps 2. Take Action and write down your fears. If you re review your process and try again in order to succeed. Learn to having trouble doing fear is stopping you. What are you afraid think of failure as a kind of opportunity. of Why do you think you re not good enough What beliefs are you holding on to that are preventing you from accomplishing something Write these down. Writing is an action. 6 Credit Union BUSinESS May 2013 aCHiEVing SkiLLS Fear should not be the significant determining factor in our lives. It shouldn t dictate how our lives will go. It is only a little child s voice in the back of our minds trying to get its way trying to avoid discomfort. But we can learn that discomfort doesn t have to be a horrible experience it can lead us to exploring new territory climbing new peaks and pushing ourselves to higher levels of accomplishment. You can beat fear. Start right now. 5. Adjust and readjust. Once again the process is act fail learn adjust and then act again. Once you ve failed at something figure out how to adjust and then try again. This new attempt may or may not be better. If it s not readjust and try again. Keep adjusting until you ve figured it out and then move on to the next step. No plan can tell you precisely how to do something without failure. No map is exactly right. You have to take action and adjust as you go. This is the key skill that you ll learn with this process--how to get good at adjusting. Holly Herman is a former CEO of two credit unions Chief of Staff for National Credit Union Administration Chairman Johnson and currently an Achievement Coach helping individuals and organizations. She can be found at www. or contact her at Holly AchievingSkills. com. May 2013 Credit Union BUSinESS 7 CU Training Credit Union Training and Development The Time is now R By Ken Gonyer emember 2010 Three years ago your credit union was probably in survival mode. Belts were tightened and like everyone else in the financial world it s likely you were wondering if you d seen the worst of what we now call the Great Recession--that unstable uncertain time full of contradictory economic news. In this tension-filled lightning-paced season of financial instability strategic thinking focused on the near future and planning for more than one year at a time didn t seem to make any sense. As a result of this shortsighted thinking companies made dramatic spending cuts on long-term investments such as employee training and development. Now that the economy has shown consistent signs of improvement many organizations are playing catch-up and are allocating significant funds for workplace training. The last year showed modest increases in staff development spending throughout the credit union industry. According to CUNA s State of the Credit Union Training Industry credit unions spent on average 11% more on training in 2012 than they did in 2011. That percentile includes expenses for both education and travel. And CUs aren t the only ones ramping up training In a 2012 survey of banking trends published by the Omega Performance Corporation 92% of bankers cited training as a top priority. The focus on employee development is nothing new to the financial services industry organizations like the American Bankers Association have stressed the value of training for over a century. Here s an excerpt from an 1899 ABA report As never before there is required in every branch of business the most thorough training scientific and technical for the attainment of success under the intense competition that prevails. In no business is this truer perhaps than the business of banking in this country. With constant changes in areas such as compliance and technology the pressure to keep up should come as no surprise. While you might not have dared siphon money into training and development in 2010 the competitive environment of 2013 makes such an investment essential. In fact it s time to pour it on. If you need more motivation to kick your training program 8 Credit Union BUSinESS May 2013 CU Training into high gear consider this a recent CUNA survey revealed that individuals between 45 and 59 years old make up the largest percentage of today s CU executives. As the Baby Boomer generation retires their departure will create a huge vacuum in experience knowledge leadership and skills within the credit union industry. You need to think ahead to prepare for this monumental work force shift. Your organization s succession plans should include development and training goals that will ensure continuity not only in leadership but also in product knowledge technical skills and the capacity to provide excellent member service. 5 W s of Training Whether your executive team needs to create something new or revive a training system that s been moribund for years the thought of developing a training plan for your organization might be a bit overwhelming. One helpful approach is to ask yourself the same 5 W s journalists do when checking to see if they ve covered the whole story who what when where and why. Ask the same questions as you expand your credit union s staff training and development programs. Who needs Training The short answer to this question is of course everyone From loan officers member service representatives and tellers to administrators branch managers and financial advisors every credit union employee can achieve more with increased skills and knowledge. When you invest time and money training employees you re providing them with an ever-growing toolbox of abilities and knowledge that makes them and the work they perform increasingly valuable. The obvious starting point in your training timeline is new hire orientation. Every beginning employee needs to be taught the full range of relevant skills according to his or her role. Even those who bring years of experience in the industry will benefit from training. Another important entry point in the training continuum comes when a staff member gets promoted and takes on new responsibilities. As employees advance mentoring and job shadowing can be important ways to learn but promotion also means working at a higher skill level and these specifics must be taught. May 2013 Credit Union BUSinESS 9 CU Training training for those new to supervision should concentrate on key peoplemanagement skills. to face the many demands of leadership new managers need to cultivate a broad range of relational abilities. What Training is needed There are two broad categories of skills that can be enhanced by training and development--tangible and intangible. Tangible or hard skills are specific abilities that can be defined and measured. Examples include capacity to use software knowledge of products and proficiency with technical details. Intangible or soft skills are subjective behavioral competencies such as leadership interpersonal communication and teamwork. Training for new employees should focus mostly on the tangibles developing fundamental job skills and teaching basic CU policies and procedures that will guide them in their daily work. New hires will need training on use of office equipment software and technology and have access to step-by-step instructions for their job responsibilities. Staff members who ve been promoted to new levels of responsibility may need training in both hard skills and soft skills. They will benefit from specialized training in the advanced tangible skills required for their new position. If they will be joining a new work group they should also get trained in intangible skills such as how to be a team player. Provide resources that help them build solid relationships with their new peers. Continuing education should provide your employees with up-to-date technical skills in a workplace where software and equipment upgrades are routine. It s also an opportunity to give your seasoned management personnel a periodic refresher in intangible people skills. Some have risen in the ranks by virtue of possessing a few well-developed strengths. Work with them to enhance their management repertoire. Training for those new to supervision should concentrate on key people-management skills. To face the many demands Ken Gonyer A third important segment of your training timeline is continuing education. The way we do business is constantly evolving whether you re an administrator teller loan advisor or marketer. It is important that part of your training includes keeping employees up to speed with changes in procedure use of technology or even in new programs and products. New managers whether they come from within the organization or are hired from the outside often have more specific job skills than management know-how and are another key entry point on your training timeline. Give new managers a full range of management training resources and don t assume they ve got the specific skills necessary to succeed in these areas. The rough terrain of the recent recession may have shaken the confidence of even C-level executives in your organization. Many feel as if their diploma has expired and they re no longer masters of their areas of expertise. They recognize that if they want to keep leading they ve got to keep learning. Executive retraining programs are a valuable addition to your training timeline. 10 Credit Union BUSinESS May 2013 CU Training in this one-time training will help get them up to speed faster and provide better member service. Similarly any employee promoted into a new position should get retrained before making their transition. At minimum they ll need an initial review of their new job duties and an introduction to their team. Ongoing training programs should include frequent skills training sessions for every significant change in technology regulations and policy for all departments. Routinely scheduling training updates throughout the year keeps your entire staff well informed and allows your CU to continue providing consistent and uninterrupted levels of service. Managers and executives should retool and broaden their professional knowledge at least once a year. The entire organization benefits when its leaders get an annual dose of big picture thinking. Webinars teleseminars and online courses are convenient and flexible as they can be accessed from the employee s work computer or phone. Where should the Training Happen Most of the employee development activities on your training timeline will occur via one of three channels in-house training national industry meetings or online education. In-house options are great for the hands-on training needed by new employees learning new work skills. This face-to-face training often includes an on-the-job shadowing or mentor component. In-house trainers can also teach existing employees any new procedures they ll need to learn whenever changes in workplace technology regulations and policy are implemented. The ability to focus on procedures specific to your workplace is one of the chief advantages of in-house training. It also gives you the flexibility to schedule training sessions at a time and place least likely to impact daily operations. Training for management and executive-level staff should include occasional opportunities to get away from the day-today pressures of the credit union to think and to learn from expert outside professionals. Off-site training events such as industry-sponsored conferences or seminars help your leaders stay abreast of important trends work on leadership skills and maintain connections with their professional peers. Webinars teleseminars and online courses are convenient and flexible as they can be accessed from the employee s work computer or phone. These remote learning options offer the benefits of cutting-edge expert input from outside their credit union without the need for travel. Even though webinars and of leadership new managers need to cultivate a broad range of relational abilities. Examples include communication team building delegation and giving feedback to employees. Executive-level retraining should reinforce a mixture of tangible and intangible skills helping organizational leaders keep in touch with current technology and new products and services as well as contemporary models for strategic thinking and leadership. When should Training be Done Your credit union s training calendar should reflect the full range of your employees educational needs. In addition to focused one-time learning opportunities a complete training timeline will provide ongoing training as well as annual enrichment. New staff should receive an orientation experience that familiarizes them with all the skills they ll need to perform their jobs and delineates all of their responsibilities. Investing May 2013 Credit Union BUSinESS 11 CU Training other e-learning methods don t allow participants the chance to network and share ideas with their colleagues the money they can save often make them worth the sacrifice. CUNA s State of the Credit Union Training Industry report showed that as much as 40% of the average credit union s training budget is spent on transportation lodging and meals. Where you hold your training sessions will likely continue to include a combination of in-house and out-of-town industry meetings. The new options of webinars teleseminars and online courses simply give you a greater range of choice enabling you to train a larger number of staff. Whether it s in basic job skills updates in technology or learning better management skills any additional training benefits your business. Having a dedicated experienced workforce has been linked to more loyalty among customers. this leads to improved sales and an increase in productivity overall. In this competitive marketplace there is no better time than now for credit unions to revamp revive and reinvent their staff development and training programs. The American Bankers Association says that the objective of all their training is to improve the performance of banks by improving the performance of bankers. Our calling is even greater--to improve the performance of our staff members so they can improve the financial lives of our members. Ken Gonyer serves on the executive team at Park View Federal Credit Union in Harrisonburg VA overseeing member care. He is a member of the American Society for Training & Development (ASTD) and the International Association of Coaching (IAC). The Virginia Credit Union League hosted his recent Train the Trainer workshop. Contact him at Why implement More Training A more robust training timeline improves your workforce at every level from new hires just tackling the basics to seasoned executives plotting new business strategies. Increased training benefits your staff your members and your bottom line and impacts employee creativity retention and professionalism all of which lead to member satisfaction and greater profitability. More staff education sparks more staff innovation. According to the American Society for Training & Development the organizations that score highest in innovation spend much more on education and training per employee than do less-innovative firms. The resulting environment is a hotbed for idea generation development of new business concepts and the application of creative solutions. The time and money you spend on training kicks off a cascade of positive business outcomes. Research across multiple industries shows that staff training and development is a key factor in employee satisfaction and happier staff members tend to stay with the company. In turn having a dedicated experienced workforce has been linked to more loyalty among customers. This leads to improved sales and an increase in productivity overall. CEO SUbSCrIpTIOn WITh BENEfITS Benefit your CFO COO CMO CCO CLO CIO HRD With frEE Monthly E-Newsletters Subscribe NOW 12 Credit Union BUSinESS May 2013 250 000 Credit Union Employees 92 Million Members 100 Million Miracles Since 1996 Credit Unions for Kids has raised more than 100 million for Children s Miracle Network Hospitals giving hope and healing to kids in your local community. YOUR FUNDRAISING DOLLARS IN ACTION MILLION 10 2 1 iMRI machine and surgical suite 1 Cardiac X-ray machine 1 Ultrasound machine 1 Bone marrow transplant 1 Fully-equipped Giraffe OmiBed incubator MILLION THOUSAND 270 THOUSAND 250 THOUSAND 100 CU COnTEnT One Credit Union s mark on the Community Volunteer By Laura Enock C an your credit union successG U I D ELINES ABOUT TEEN CORNWALL fully engage young people generate lots of community buzz and get great media coverage for just over 5 000 According to Jon Begg Manager of Strategic ABOUT OUR COMMIT TEE Alliances at Kawartha Credit Union in OnCHAIRS tario Canada the answer is you bet APPLIC ATION Like many U.S. credit unions Kawartha in business for 60 years takes pride DECLARATION AND WAIVER in giving back to its communities and has ABOUT K AWARTHA CREDIT UNION recently expanded into four additional markets. Begg immediately began networking in the new communities and says We re always looking for opportunities to work with other businesses and charities to help the credit union while helping other organizations. He was soon collaborating with the head of an organization called Team Cornwall which at- ments of young volunteers. That s when he floated the idea of tracts new businesses and promotes the quality of life that area recognizing the area s high school students and focusing on residents have come to love. those who gave more than the 40 mandatory hours of commuKawartha supports four categories that are meaningful to nity service. The beauty of Kawartha s concept is that everyone the community and to the CU youth programs environment benefits from the added volunteerism. healthcare and education. Team Cornwall was interested in working with teens and In what may be a uniquely Canadian concept students in On- had recently reintroduced a program called Teen Cornwall. tario are expected to volunteer a mandatory 40 hours through- Crystal Damon Kawartha CU s VP of Marketing and Communiout their four years of high school. While that averages to only cations bought into the program and immediately committed to 10 hours per year it manages to create a what can I volunteer sponsoring three scholarships of 1 500 each. This became the for sense among young people. credit union s program and there were no other sponsors. Begg looked at the existing youth awards and found that Team Cornwall organized a press conference to announce nothing was offered locally that specifically honored the achieve- the program. The mayor and members of the local parliaThe Youth Volunteer Awards program is run in accordance with the following guidelines Teen Cornwall is an organization that works to empower the with Team Cornwall Teen Cornwall provides resources and recognition to youth for their leadership and community involvement in the city of Cornwall. youth of Cornwall to become community leaders. In affiliation 1. The nominee must meet the eligibility criteria outlined in the nomination form. 2. The nominee must be a resident of Greater Cornwall at the time of the nomination. 3. The individuals identified as references for the nominee must agree to have their name included in the nomination form. 4. Nominations made by family members will not be accepted. 5. Nominations cannot be submitted without permission of the nominee. 6. Only one nomination per nominee will be considered. 7. By signing the nomination form each nominator and nominee agrees to PAbide by the guidelines that govern the Youth Volunteer Awards. PParticipate in the awards program and in the nomination process. 8. In the event the nominee is chosen to receive an award the nominee agrees to participate in all awards-related activities including an awards ceremony media functions and post-awards communications. 9. The decisions of the selection committee are final. 10. Nominations become the property of the Teen Cornwall awards committee and will not be returned. 11. Nominations that are incomplete or do not comply with these guidelines may be disqualified. The Teen Cornwall awards committee will not accept responsibility for incomplete inaccurate lost or late nominations. Guidelines are subject to amendment by the Teen Cornwall awards committee. Teen Cornwall ambassadors Tony Luis a professional boxing offer themselves as examples of youth achieving excellence within their community. champion and Nada Kovinich a professional businesswoman The Youth Volunteer Awards is organized and lead by a great team of community leaders including Tony Luis Teen Cornwall Co-Chair Nada Kovinich Teen Cornwall Co-Chair David Murphy Teen Cornwall Captain Andre Pommier Teen Cornwall Captain Jon Begg Kawartha Credit Union Teen Cornwall Sponsor If the nominee is under the age of 18 the Nominee s Parent Guardian must sign and agree to the following I have read the complete nomination submission and certify that it accurately describes my child s volunteer and community work. I agree that it may be provided by the nominator to the Youth Volunteer Awards Committee and that the Youth Volunteer Awards Committee may collect the information on that basis so that my child may be considered for the Youth Volunteer are identified in this submission to verify the information provided or to seek additional related information from them. Kawartha Credit Union is one of the fastest-growing credit Awards. I also agree that the Youth Volunteer Awards Committee may contact the references who unions in Ontario. Kawartha employs over 325 people and serves 50 000 members in Central and Eastern Ontario with 25 branches. With 1 billion in assets under administration and Should my child be selected for the Award I consent to the use and disclosure of my child s compensation for awards-related publicity. with 60 years of banking history Kawartha delivers a full range member s individual needs including access to The Exchange Network with more than 2 400 surcharge free ATMs in Canada. focus financial services provider. personal information (including photographs video name and quotation) as necessary without of financial services solutions and advice tailored to meet each Signature ____________________________________________________ Date _______________________________________________________ Membership at Kawartha is open to anyone looking for a local- 14 Credit Union BUSinESS May 2013 CU COnTEnT We ll be there year after year Begg says. It s gone over so well in Cornwall we ve set up an agreement to do the same thing in another community. The program s slogan is This is not about your marks but the mark you leave on your community. To be considered for the scholarship award teens are required to provide supporting letters from people at their school people outside their school and a resume of their volunteer activity. This fairly stringent application process means that only 19 applications have been submitted. The award rewards high school students who have demonstrated leadership skills volunteerism and pride in their community. Kawartha has heard many stories about students who participated in other fundraising activities and volunteered at other charities in addition to those shared on the applications they received. So even students who chose not to apply for a Teen Cornwall scholarship were caught up in the spirit of giving back to the community. I was at a home show in Cornwall Begg says and though people didn t necessarily stop at our booth we heard people taking about us and referred to us as the organization that gives out the student awards. How are student volunteer efforts measured It s not about hours but about spectacular results. Judges may view a student who raises 30k for a hospital to buy blankets for the pediatric unit as more impressive than the student who spent 60 hours picking up garbage. Begg is quick to admit that much of the success may be due to the fact that no one else in the area has ever offered this type of award. Even if this isn t the case for your credit union Begg believes that most credit unions would benefit from participating in a similar community promotion. Part of this was luck because no one had done this before and the community needed it Begg says. Every credit union can find out what programs don t exist in their market and then create one to fill the void. But getting high school students to volunteer whatever the program is a very powerful incentive. How can you get typical high school students excited about volunteering Kawartha enlisted the help of Tony Luis a world champion boxer who lives in the community where he operates a gym that offers free admission to kids who can t afford the fees. Tony went to the schools with Begg and spoke to the How are student volunteer efforts measured it s not about hours but about spectacular results. Judges may view a student who raises 30k for a hospital to buy blankets for the pediatric unit as more impressive than the student who spent 60 hours picking up garbage. ment--equivalent to state senators in the US--attended along with principals and guidance counselors from several area schools. The result Kawartha CU was featured in three newspapers and on several websites. The event generated a lot of local interest and community goodwill. While the media coverage was wonderful and the CU did experience a boost in membership from the town of Cornwall the best part of their participation came from Kawartha s enhanced access to and awareness by the local youth market. Most of our local schools don t allow any type of advertising or promotion to their students Begg explains. And yet here they were inviting us into their schools where we spoke about young entrepreneurship the power of volunteering and of course our credit union and its Youth Volunteer Program. While the materials the credit union distributed were educational everything was branded with the credit union s logo and information. Begg was able to talk about the credit union s location and told students they were welcome to come in to the credit union either to apply for the scholarships or to receive additional information. A small ad placed on the back of the program s collateral material promoted the credit union s free banking for anyone under the age of 26. The deadline for applications has just passed and Kawartha CU will be selecting the three winners soon. An additional PR opportunity recently presented itself when all six participating schools invited Begg to come back and make a presentation at graduation should one of their students be awarded a scholarship. And it doesn t end there Kawartha CU has already been invited back by all six high schools in October . . . to start the program again May 2013 Credit Union BUSinESS 15 CU COnTEnT CATEGORY IMAGE ENHANCEMENT Youth Volunteer Awards Program Celebrating it s 60th year in business Kawartha Credit Union was new to the City of Cornwall Ontario. As with any new business Kawartha was unknown to the vast majority of the community. Using existing contacts on city council and the chamber Kawartha s manager of strategic alliances arranged a meeting which would enhance Kawartha s profile in the business and public communities grow the level of volunteerism in Cornwall and assist three outstanding students with Youth Volunteer Award bursaries for post-secondary school. At the press conference to launch the campaign close to 60 attended including 5 media outlets city councillors the mayor the local MP principals and board members from all the local highschools and members of the chamber of commerce and leaders from an active local youth group called Teen Cornwall. Not only did Teen Cornwall and Kawartha get permission to do in-school presentations the media pick-up on the program was outstanding Kawartha was recognized at the Chamber AGM and the program was splashed all over social media. We could not have asked for a better outcome. The program will be launched in three more communities this coming September. The Kawartha Credit Union It s not about your marks in school It s about the marks you make on your community. City of Cornwall web site Team Cornwall web site Teen Cornwall FaceBook page Submitted by Jon Begg Manager Strategic Alliances Kawartha Credit Union wall split the printing costs with the credit union. Volunteering is an important value for kids to learn Begg says. When you volunteer you get much more than you give. Going forward Begg plans to run the campaign every year. There may also be a smaller award with all entrants participating in a draw for an iPad. Credit union membership as a whole has grown 16% in Cornwall an impressive number. In this case the size of the awards the benefit to local charities and programs and the fact that students donated additional volunteer time in the spirit of the event got people excited. So much so that it took on a life of its own. What awards can you offer your members that might get them excited Even if you can t partner with schools what options are available to you for reaching out to tomorrow s members What lessons can you take from Jon Begg s tremendous success and how can you implement them at your own credit union These are the questions you can ask at your credit union and we d love to hear how you did Email your success stories to lenock so we can share them with other credit unions too students about the benefits of giving and how good it makes you feel adding that they should be proud of their community and give back whenever and however they can. In this small town of 30 000 Luis is a local superhero. The World Boxing Association (WBA) just named him their international ambassador for youth because of his spirit of giving back to community. Total costs for the program included 4 500 in scholarship awards and 600 for collateral materials. That s it Team Corn- Laura Enock Managing Editor of Credit Union Toolbox and founder of provides credit unions nation-wide with content for their websites newsletters email marketing and social media communications. Enock moderates the popular CreditUnionToolbox webinars on best practices and provides individual credit unions with social media marketing and PR support on a consulting basis. Contact her at laura or follow her on Twitter CUtoolbox. 16 Credit Union BUSinESS May 2013 BENEFIT FOCUS We Specialize in Executive Benefits for Credit Unions In today s environment of ever-changing regulations your organization needs someone entirely dedicated to your industry. We understand your needs better than anyone and no one is better equipped to help you develop implement and administrate executive benefit plans that will attract and retain the most talented executives and directors. You can be confident knowing we have designed your plan to be compliant from the moment we put it in place and will work to make sure it remains compliant for its entire life. Let us show you how our focus will benefit your Credit Union. FROM OUR 888-494-8911 tquigley CFO CUrrEnCy Does the Federal Reserve Have a High amount of interest rate risk T By Emily Mor Hollis CFA Partner capital would still be 55 billion. Still to examine interest rate risk we must take a look at the Fed s assets and liabilities. he Fed is currently holding a mortgage portfolio that is bigger than Fannie Mae s or Freddie Mac s along with a massively expanded government portfolio. Assets have grown to more than 3 trillion. With only 55 billion in equity the Fed has a capital-to-assets ratio of 1.8 percent. On top of this low capital-to-assets ratio the Fed holds investments in longer-term mortgage-backed securities of greater than 900 billion. And it is buying more to the tune of 40 billion a month This profile in any financial institution would be an examiner s nightmare. But is it Will the Fed have an immense problem on its hands if rates rise Well not really. The Fed does not keep its books on a market value basis so its book capital would be unaffected. The Fed accounts for its securities at cost not fair market value. Also under an accounting policy set by the Fed in 2011 if it had losses it would not reduce book capital. The net loss would go against the interest that the Fed pays to the U.S. Treasury which by the way has increased fourfold since 2005 because of these higheryielding assets. In other words if the Fed had a loss equal to its total capital of 55 billion its book The Fed s Assets The Fed s assets are mainly comprised of Treasury and mortgagebacked securities. It is important to note that the size of the monetary base is determined by the amount of assets held by the Fed which is decided by the Federal Open Market Committee as part of its monetary policy. During the 2008 2010 time period the Fed authorized liquidity facilities to provide liquidity during the time of financial stress. After that time span most 18 Credit Union BUSinESS May 2013 CFO CUrrEnCy called the required reserve ratio. Most financial institutions are depositing much more than required. Any reserves above what are required are excess reserves. In October of 2008 Congress granted the Federal Reserve the authority to pay interest on bank reserves a seemingly small change that marks a major break in the way it conducts monetary policy. Because of this financial institutions are depositing greater amounts into the Fed and the Fed is subsequently holding a greater amount of excess reserves. Case in point some of the larger corporate credit unions sweep large amount of deposits to the Fed every night. Since the Fed has started purchasing mortgage-backed securities the weighted average maturity of its portfolio has risen from between two and three years before the financial crisis to between four and five years now. the longer duration of the Fed s portfolio dictates that its market value is even more sensitive to changes in interest rates. of the assets have been acquired as part of the large-scale asset purchase programs. Since the Fed has started purchasing mortgage-backed securities the weighted average maturity of its portfolio has risen from between two and three years before the financial crisis to between four and five years now. The longer duration of the Fed s portfolio dictates that its market value is even more sensitive to changes in interest rates. The Fed s interest Rate Risk Even though mortgage-backed and longer-term Treasury securities are held at cost the increased amount of these securities held by the Fed could result in unusually large financial gains and losses from market fluctuations. In general when short-term interest rates rise financial institutions that finance longer-term assets by short-term deposits face spread compression. This is certainly the case for the Fed as its net interest income will fall when interest expenses rise and holdings of fixed-coupon longer-term mortgage securities are essentially unchanged. Thus rising short-term interest rates will squeeze the Fed s net interest income. But as shown in the graph above the Fed s allocation to currency is just shy of 40 percent that has zero funding cost. So it could be estimated that short-term rates would have to approach 7 percent for the Fed s expenses to surpass its income. At some point the Fed will stop purchasing mortgages and as time passes the securities will indeed pay down or be sold. But it is conceivable that capital losses could reduce the Fed s net income to zero or even generate net losses. In such unlikely circumstances the Fed s capital base would be maintained by letting remittances to the Treasury fall to zero. In the most extreme case future remittances would also be reduced (and recorded as a change in deferred credit) but the Fed s capital would remain unaltered. The Fed s Liabilities Where is the Fed Getting All of This Money The major items on the liability side of the Fed s balance sheet are Federal Reserve notes (U.S. paper currency) and the deposits that thousands of depository institutions the U.S. Treasury and others hold in accounts at the Federal Reserve Banks. The expansion of Federal Reserve assets resulting from the aggressive response to the current financial crisis has been matched by an expansion of the Fed s liabilities particularly the deposits of depository institutions. The Fed regulates financial institutions by requiring them to hold a certain amount of their assets as either cash or deposits with the Federal Reserve. The amount of reserves and the form they take are determined by government regulation. More than 7 000 depository institutions maintain accounts at Federal Reserve Banks. They hold balances in those accounts to make and receive payments or to meet reserve requirements. The amount of reserves financial institutions must hold is calculated as a percentage of the deposits they hold. This percentage is The Fed is Paying the Treasury A Lot of Money On the bright side the Fed is earning a lot of money. The residual earnings of the Federal Reserve Banks are distributed to the U.S. Treasury after providing for the costs of operations payment May 2013 Credit Union BUSinESS 19 CFO CUrrEnCy of dividends and the amount necessary to equate surplus with capital paid-in. In early 2006 the Fed paid 18.1 billion to the U.S. Treasury for its 2005 earnings while in early 2013 the Fed paid 88.9 billion for its 2012 earnings. That is a substantial increase and can be attributed to the larger holdings of longer-term securities. We all know that the Fed s primary focus is the economic stability and financial health of our economy. In 2000 Ben Bernanke (while holding a tenured professorship at Princeton University) wrote to allow consideration of possible capital losses to block needed policy actions is misguided. In other words interest rate risk should take a back seat to the macroeconomic goals of monetary actions. But the question remains does the Fed have a massive amount of interest rate risk It s not all that clear. But what is clear is that the Fed s actions are unprecedented. Emily Mor Hollis CFA is a partner with ALM First Financial Advisors LLC. CEO SUbSCrIpTIOn WITh BENEfITS Benefit your CFO COO CMO CCO CLO CIO HRD With frEE Monthly E-Newsletters Subscribe NOW 20 Credit Union BUSinESS May 2013 DEBiT maTTErS Finding Boston Bombers and What it means for Financial Services Data Analysis T By Suzanne Savage he incredibly sophisticated use of data jumped into the news in April but not for the reasons you might think. In the wake of the Boston Marathon bombing the country was reminded of the tremendous amount of data that is collected every minute of every day. Law enforcement was able to collect thousands of photos and video recordings of the marathon and its physical surroundings within 24 hours of the explosions. This unstructured data came from many sources Everyday folks capturing the event on hand-held cameras and cell phones cameras from retail residential and commercial locations as well as myriad other street cams. While the amount of data may not come as a surprise the speed with which it was analyzed might. Once the bomb s location was discovered on video it is likely that experts used facial recognition technology to scan all germane video footage and photographs to assemble images of potential suspects from all the collected data. The results were then compared to a number of databases containing citizen s faces--like the ones kept by law enforcement agencies motor vehicle departments colleges and universities and U.S. passport offices--to try and identify the bombers by name and location. Once narrowed down you can be sure that experts analyzed images captured at airports subway stations and bus terminals for matches. Where else did law enforcement look for clues Social media of course. All Facebook posts Twitter tweets and other comments posted on the internet originating within a one mile radius and in the 24 hours before and after the race were collected for analysis providing more investigative avenues to pursue. Stunning. The fact that the source data was unstructured makes this type of data analysis especially impressive. Unlike numbers names and other easily quantifiable data unstructured data does not fit neatly into the fields of a traditional database. Yet photos and freeform text provided critical investigative leads. 22 Credit Union BUSinESS May 2013 DEBiT maTTErS that they could make similarly large investments but that the challenge in managing all of the data doesn t mean credit unions can t take advantage of their data to lies in determining what and how much reduce expenses grow income and perform target marketing. data should be collected balancing data Fortunately vendors with increasingly valuable analytics capabilities can provide credit unions with access to technology storage costs against the value of the often employed by their much larger competitors. data and managing the software engines Current Data Applications needed to translate inputs into useful Much like law enforcement the financial services industry has decision informing output some pretty slick uses for data. It s good to know that law enforcement has the data access and analytical capabilities to search out and capture the bombers using unstructured data from such a wide range of sources. All of this got me thinking about how financial services companies use data to make decisions about its products and services find ways of squeezing out more profit identify expense leaking processes and predict and prevent fraud. As decisionmaking is more and more data driven credit unions and their vendors increasingly use analytics to derive more meaningful information. The internal and external systems credit unions use to manage operations make it possible to collect more data than previously imaginable. The challenge in managing all of the data lies in determining what and how much data should be collected balancing data storage costs against the value of the data and managing the software engines needed to translate inputs into useful decision informing output. Large financial institutions have invested millions to corral and harvest data to make strategic business decisions. For example in 2012 JP Morgan Chase began to combine internal transaction data with economic statistics from the US government. The bank used this data to develop insights into consumer behavior which allowed the bank to segment consumers into more narrowly defined groups. This segmenting allowed the marketing department to create specifically targeted campaigns for bank products. In another example Bank of America used data about customer behavior from its website along with call center logs to find deficiencies in its cash management products then restructured the products to improve customer satisfaction. The smaller scale represented by credit unions makes it unlikely risk Management Unfortunately risk management functions require more CU resources everyday. Credit unions must be able to identify fraudulent loan applications bill pay transactions ACH transfers wire transfer requests check deposits and ATM deposits and often rely on vendor provided solutions to identify potential threats. Third party solutions are also used to block fraudulent debit and credit card transactions and to comply with anti-money laundering and OFAC regulations. OFAC and anti-money laundering compliance can be tricky and requires that all kinds of variations on member names be compared to blacklisted individuals and everchanging behavior profiles for illegal activities. Vendor solutions that crank name and transaction data through sophisticated algorithms are used to identify potential compliance issues and minimize false positives that might impact legitimate members. Consider the complexity of fraud monitoring for debit and credit transactions which requires massive amounts of transaction history. Data compiling of confirmed fraudulent transactions and card breaches is gathered daily. At the cardholder level patterns relating to transaction amounts velocity and location are combined with known fraud patterns to predict and block potentially fraudulent transactions. Fraudsters are nimble and ever changing which means fraud monitoring rules need to be modified on a daily sometimes hourly basis. Marketing In today s environment effective marketing means segmenting members to match products and May 2013 Credit Union BUSinESS 23 DEBiT maTTErS services with members who are most likely to use them. Long gone are the days when an attractive marketing campaign that blanketed all credit union members could be deemed successful. Consider how vendors like Experian can provide FICO scores and other credit data to identify members ripe for new loan solicitation. Another opportunity to collect member data lies in credit union initiatives around personal financial management tools (PFM). These tools offered through home banking allow members to aggregate their financial relationships across multiple institutions and brokerage firms. The credit union s ability to look into a member s complete financial picture provides more opportunity to target members with relevant offers. The knowledge that a member has a car loan at Bank of America or a credit card with American Express might prompt a credit union to solicit its member with auto loan or credit card offers. the future requires gathering data from disparate systems for analysis. For example we could greatly improve fraud detection by allowing systems to detect a cash withdrawal made at a branch in Los Angeles at 10 00 a.m. and a card present transaction in Chicago just a few minutes later. One of those transactions is likely to be fraudulent but systems that do not analyze all transactions cannot accurately identify potential risk. As the industry improves the use of structured data like credit scores and transaction data it also looks for ways to leverage unstructured data like pictures text and voice recordings. Think how you might use call center voice recordings. Sure you tell the members that the calls are recorded for quality assurance but wouldn t it be nice to use the data in other proactive ways IBM has developed data solutions that analyze call center recordings to look for trends in customer dissatisfaction with a service or product. Across hundreds of calls and customer service agents the voice recordings are used as an early detection system to identify and address problems more quickly by looking at the velocity of key words. This call data can help identify problems with products documentation or call center training. Speedier issue detection leads to faster resolution and fewer impacted customers. Financial institutions are also using third party services to manage their online reputation. These services monitor unstructured data in social media sites and other sources of posted comments to look for trends in feedback allowing credit unions to respond to postings and resolve customer service issues before they get out of hand. These services have also been effective in identifying phishing schemes that use fraudulent versions of a CU s website. Card Portfolio Management Fortunately many debit and credit card processors offer some form of portfolio management service. Whether through selfservice analytics engines or consultative services the processing vendors are helping credit unions optimize card portfolios. Services include identifying cards that have not been activated or are under utilized and targeting these members for specific marketing messages designed to spur usage. More sophisticated programs allow credit unions to segment members using any number of criteria including ticket size transaction velocity transaction location and usage by merchant category. What s next in Analytics for Financial services Data strategies for Credit Unions Understanding behavior is at the core of these data driven processes. As law enforcement searched for bombing suspects in Boston they initially looked for out of place or unusual behavior and it was an ATM transaction that gave away the suspect s location. After the second suspect was captured data was used to track the bombers earlier behavior in hopes of finding other potential threats. In financial services we identify behavior that is out of place using transaction history. Much of the data used in analytics is collected and siloed within the source systems. Making data more meaningful in Moving towards more data driven decision-making and performance measurement requires more strategic thinking about desired outcomes. Meeting a goal to grow outstanding credit card balances by ten percent may lead to improved revenues but do you know how much growing credit card balances by ten percent really adds to the bottom line How much will each percentage point growth in card balances affect interchange revenues fee income and interest income Would a rate increase or decrease generate the same contribution to the bottom line Would managing the expense per card achieve 24 Credit Union BUSinESS May 2013 DEBiT maTTErS Use Data to Define Desired Outcomes Be specific in goal setting. If your goals include increased profits on share draft accounts be sure you measure all the income and expense components related to these accounts. Examine profitability at the account level and identify which accounts are profitable and which ones are not. When you understand what drives share draft profitability you can set more specific goals. For example if you find that 25% of your share draft accounts are not profitable you can dig deeper to determine the underlying cause. Perhaps these account holders are heavy users of your call center and maintain low balances. The next step may involve moving members away from the call center and into self-service channels such as home or mobile banking for account status and history information. Engage Your Vendors Lending solutions home banking core system and transaction processing vendors all offer analytics capabilities with some solutions more robust than others. Discuss your data and analytics needs with your vendors to determine how they can help support your goals. As you renew contracts and search for new vendors be sure your evaluation criteria includes a review of the analytics capabilities. Whether it s finding bombers improving profitability or protecting the credit union brand data is king. Suzanne Savage founded the Savage Consulting Group ( in 2001 after holding a number of management positions in various financial institutions networks and consulting firms. Savage Consulting Group provides credit unions a wide range of consulting and project management services with a primary focus on the card programs. Savage specializes in strategic development business planning and operations market research and the evaluation of payment systems products services and technologies. She holds a master s degree from the California State University at Fullerton and a bachelor s in Business Economics from the University of California at Santa Barbara. Suzanne is also a certified Project Management Professional (PMP). the same results Would the addition of a rewards program with a commensurate growth in the number of transactions per card achieve greater improvements in profitability The amount of data available can be overwhelming. As credit unions integrate greater data use in operations management they should keep the following in mind Meaningful Metrics Using data to make decisions starts with making sure you re measuring the right things. Many credit unions report only simple transaction related statistics which tell very little about how well a program is managed. ATM debit and credit card transactions along with sales volumes are not especially meaningful even when you include a graph showing growth in these areas. More meaningful measurements might include the number of new cards opened and closed during each month and the number of transactions revenue and expense per active card. Comparing these statistics to industry benchmarks can also show how and where improvements might be achieved. Measuring more specific data elements also allows credit unions to monitor the effectiveness of marketing and expense reduction initiatives. Scrubbing Databases It is imperative you keep in mind garbage in garbage out when you are planning for greater data use. The highest level of reporting accuracy is only achieved with clean current and relevant data. Having thousands of cards in your database that are closed or inactive could lead to the wrong conclusion about transaction velocity per card. May 2013 Credit Union BUSinESS 25 LEaDErSHiP Identifying Future leaders Participate in a College internship Program s the global economy continues to expand competition for good talent continues to rise. Organizations actively seeking to develop and nurture qualified individuals need steady pools of qualified potential leaders from which to draw. One smart way to accomplish this is through partnerships with local college and university internship programs which benefits both the organization and the student. Students benefit from getting real world experience which complements their classroom learning and have greater marketability upon graduation. Organizations benefit from enhanced community good will and get access to a better-trained talent pool. A By Dr. Sandra L. Torres Because the decision of whether or not to pay an intern is left to the employer some unpaid interns complain that they are only given menial work and learn very little which raises questions about whether or not their specific positions violate federal rules. the argument for paying a college intern is simple most need the money. The term unpaid can be somewhat misleading. Getting handson work experience and training sessions can be expensive but interns get both at no cost and rewards come in the form of enhanced job skills and work experience which have real value in the marketplace. Paid internships are highly competitive and difficult to find especially in a slow economy and studies have shown that unpaid internships tend to be more challenging and potentially more enriching than paid ones. Because the decision of whether or not to pay an intern is left to the employer some unpaid interns complain that they are only given menial work and learn very little which raises questions about whether or not their specific positions violate federal rules. The argument for paying a college intern is simple most need the money. So rather than paying an employment agency thousands of dollars to fill open positions the employer College internships Paid or Unpaid Colleges usually offer their internship students college credits and employers decide whether they are to be paid or unpaid positions although most are unpaid and considered one way for employers to ease strained budgets. Employment experts estimate that more than one million undergraduates work in internships each year and the research firm Intern Bridge reports that half of those are unpaid. According to Labor Department guidelines unpaid internships must meet the following guidelines Internshipsmustresemblevocationaleducation Internsmustworkunderclosesupervision Anintern sworkcannotbeusedasasubstitute for regular employees Anintern sworkcannotbeofimmediatebenefit to the employer 26 Credit Union BUSinESS May 2013 LEaDErSHiP should consider paying minimum wage to an intern while test driving a potential future leader--its just good business. six elements of a Value-Added internship Program Internship programs have always been a great source of talent for firms and opportunities for students. According to New Level Partners an educational marketing firm students and businesses have shared objectives and expectations since both are looking for a productive work experience and the opportunity to learn. Starting a successful internship program begins with defining the purpose of the program and assessing the impact it will have on your business. New Level Partners have developed their Six Elements of a Value-Added Internship Program that can help you define its purpose and measure its impact. 3. Align the intern with two employees. One employee should be the intern s direct reporting manager and the other should be the intern s mentor. The mentor should have the same area of subject matter expertise as the reporting manager for best results. 4. Map out a training plan. The intern will need some orientation to your business subject matter and or product training. Blend their training schedule with an increasing amount of work and responsibility. Both training and work should be measurable. 5. Empower the intern to impact the organization. Since the intern will most likely be a college senior ready to graduate minimize the clerical duties. Select meaningful projects and assignments that will bring value to your organization. 6. Supervise the intern. Start the week with a clear plan and goals. End the week with summary and feedback including positive achievements and encouragement for further growth. Be ready to increase responsibilities for the intern if they are performing at a top-level. If the Intern appears to be achieving all assignments above average and fits within the company s culture be prepared to discuss possible future employment before their assignment ends. six elements for building a successful college internship program 1. Establish a clear objective for the intern. Whether it is to improve or update the firm s prospect files or expand the firm s social networking reach the intern s tasks should be specific. 2. Give the intern a title. This gives the intern a sense of belonging. She will respond much better to being named an Account Executive Intern or Management Intern than to being called the intern. May 2013 Credit Union BUSinESS 27 LEaDErSHiP interns Today Leaders Tomorrow lEADErSHiP program. If so offer to join forces to area. Take this Thanksensure that leaders develop skills in this develop a successful-- and hopefully make your workplace the exception and use evgiving season topaid--internship program. A properly created college internship ery opportunity to program is a big victory for both intern and employer. demonstrate your gratitude to your Dr. Sandra L. Torres is an author speaker and leadership team. consultant. Miami based Dr. Torres has researched leadership practices around Author speaker the world. More than 20 years of experience in the leadership and credit union industry has made her an ardent believer and practitioner consultant Mi- of the credit union philosophy people helping people . ami-based Dr. Leadership Si offers bilingual leadership expertise researched leadership practices around the world. Torres hasvia her writings training workshops and speaking engagements. Her of experience in the leadership. Get to More than 20 years specialty is women scredit union indusknow made her an ardent believer and practitioner of the try hasher better by visiting credit union philosophy people helping people. Leadership Si offers bilingual leadership expertise via her writings training workshops and speaking engagements. Her specialty is women s leadership. Get to know her better by visiting Many college interns have gained valuable experience performing entry-level tasks while taking part in skills development activities as part of the internship experience while other programs assign interns to more advanced tasks such as strategic projects or job shadowing a supervisor or manager. But whatever path an employer takes requires a commitment of time energy and resources. Internships are good for everyone Employers that embrace the experience add value to their organization and students get a better understanding of the real world workplace. The old adage it s not what you know but who you know applies to employers as well as interns. Having access to the best and the brightest college seniors is a smart strategy. Becoming a college industry partner can lead to a pool of future business ed message will bring you success in employee motivation as leaders that will positively impact your firm. Contact your local well as in building a positive productive workplace. college or university and inquire whether they have an internship For many leaders employee appreciation is part of their DNA but for others it can be a scarce commodity. in fact many organizations are offering leadership development training to leaders need to say thank you in a genuine manner. Your team members will likely work much harder if they feel that what they re doing really makes a difference and that their efforts are noticed by those with power. Dedicated to developing leadership across cultures. Leadership Programs Develop Talent and Achieve Results Studies show that on average leadership development programs have a 20-40% significant impact on the following Personal Ability--Communication - Collaboration--Teamwork Productivity--Quality and Cost of Work Consider how an investment into coaching mentoring or training initiatives will result as a positive ROI on your organization s income statement. Dr. Sandra L. Torres Leadership authority and founder of Leadership Si (see) offers bilingual leadership expertise via her writing training programs workshops and speaking engagements. Become an extraordinary leader November 2012 May 2013 Develop great leadership skills. For more information contact her at drsandi Union BUSinESS 28 Credit Credit Union BUSiNESS 21 TECHniCaLLy SPEaking a Round Up of recent announcements I By Roy W. Urrico n case you missed some recent financial technology product announcements here is a rundown of a few introductions that credit unions might find helpful. EFT Source is a provider of turnkey card programs and personalization services for ATM and debit cards for financial institutions. Card Once EFT Source s new Card Once instant issuance solution enables members to walk into a branch and within seconds receive a fully-functioning active payment card. When a customer requests a card the data is securely transferred from the branch location to EFT Source. The data is immediately processed and converted into a data encrypted print file that is sent back to the branch electronically. Card Once encodes the data and prints the card allowing the customer to walk away with a ready-to-use active card. According to EFT Source Card Once produces a cost savings of up to 30 percent over traditional issuance methods. MoneyDesktop recently launched MoneyMobile its personal financial management (PFM) mobile app which combines extensive account aggregation capabilities functional design and a back-end synching engine that immediately syncs financial information between devices. A key feature within the app is BubbleBudgets which replaces bar charts with a bubble for each budget sized by its relative value. By aggregating all account information in one place MoneyMobile can position the credit union as a member financial hub. Profitstars ipay Solutions Introduces billSimple This electronic invoicing and receivables management system simplifies the way small business customers bill and collect receivables. iPay Solutions BillSimple allows credit unions to offer self-branded invoicing with the option to accept credit card and ACH payments. Gladiator Managed IT Services Provides a dedicated team to optimize manage and maintain sophisticated integrated multi-vendor and multi-platform information technology (IT) environments. These services will monitor and report on critical components that include physical and virtual environments as well as common applications and networking infrastructure equipment. Some examples of the scope of service provided include vulnerability remediation patch and upgrade management malware cleanup and removal and recovery testing. Gladiator Advanced Malware protection A new layer of malware defense capable of blocking sophisticated malware threats including downloads unsafe website redirects command and control activity and phishing links. It also gives financial institutions the ability to pass all domain name system (DNS) requests through Gladiator s secure cloud-based DNS system. All requests May 2013 Credit Union BUSinESS 29 TECHniCaLLy SPEaking are analyzed in real-time for fraud patterns malware and data-stealing risks before connections are allowed to send or receive data. MaxConnect Interactive A hosted Integration between clients core processing system and Margin Maximizer InteractiveTM (MMi) a Web-based loan and deposit pricing engine. The solution is supported by Microsoft Silverlight its application framework and Windows Azure the cloud computing platform. ProfitStars MMi helps credit unions maximize net interest income and better qualify growth opportunities. It provides all the benefits of cloud computing including access to configurable pricing capabilities from any location at any time. Jack Henry & Associates partners with TransCard to Offer Credit Unions Prepaid Card Solutions that generate revenue and increase customer loyalty. The solution enables credit unions to offer a product that generates new sources of noninterest income. TransCard provides operational support and customizable marketing materials. ProfitStars and Symitar will sell the solution that enables credit unions to offer payroll cards reloadable prepaid cards and gift cards that generate additional revenue from commercial and retail customers while attracting new customers from the underbanked and unbanked market segments. Q2ebanking introduces Q2clarity customizable analytics across mobile online and security platforms. Q2clarity provides credit unions with a dashboard interface to customizable key performance indicators across Q2ebanking s mobile online and security platform. Providing analytic data on elements for system usage helps credit union executives realize greater benefits from their electronic banking channel by helping to increase cross sales identify opportunities for greater efficiency and position an institution for future growth. Q2clarity is tablet-optimized. banno unveils new features for its Grip that the company says strengthens the mobile banking standard with pre-transaction insights. With Grip credit unions can brand and offer an app that provides comprehensive mobile support for purchase decisions. Its new features are designed to bridge the gap in mobile information from the traditional balances and statements to real purchasing ability. Pre-transaction insights derived from location historical spending outliers and upcoming bills are analyzed to provide consumers with all of the information they need to supplement their purchase. ClosingCorp s SmartOrder allows lenders to order real estate services online that include verified prices tied to the good faith estimate (GFE). By eliminating price discrepancies between GFE quotes and final service costs lenders improve RESPA compliance while expediting processes. SmartOrder connects lenders to their preferred vendors as well as more than 12 000 service providers from ClosingCorp s nationwide database that includes 30 categories such as title and settlement home and pest inspection appraisal management and natural hazard disclosures. SmartOrder eliminates the disparate systems traditionally used for receiving quotes and ordering related services which commonly resulted in significant price inconsistencies. iMM Document Exchange IMM s document delivery and electronic signatures capture solution provides financial institutions with Web contracting and electronic signatures in the cloud. Powered by Adobe EchoSign an electronic signature service that currently supports 6 million users worldwide Document Exchange does not require scanning software signature pads or digital certificates traditionally needed for electronic signing events. TotaleAtlas Solution has undergone significant upgrades including the addition of a new automated workflow announced in September 2012 to drive greater productivity 30 Credit Union BUSinESS May 2013 TECHniCaLLy SPEaking for credit unions through pre-determined document routing and process management. As a result financial institutions achieve timelier processing and are assured the proper and accurate completion of all required steps associated with a business transaction. In April 2013 IMM announced additional enhancements to TotaleAtlas including its compatibility with Windows 8 and Internet Explorer 10 and the ability to more easily create unique workflows. The ability to operate browser-based user sessions in Internet Explorer 10 running in a Windows 8 environment allows for broader use of tablet devices over desktop computers in-branch as more banks and credit unions incorporate mobile devices into their brick and mortar facilities. Malauzai Software and Allied payment network recently launched Picture PayTM a standalone mobile payment solution. Picture Pay allows users to complete payments via their mobile device camera in three simple steps take a photo of the bill statement confirm the amount to be paid and submit the payment to the financial institution. Optical character recognition (OCR) technology reads the data from the statement and built-in analytics confirm biller information. Users also have the option to rush payments for a fee creating a strong value proposition and a revenue opportunity for credit unions. By leveraging the solution as a standalone channel credit unions can offer the service in addition to Internet banking bill pay while reducing the time customers and members must spend entering biller information for new billers. CTS north America which creates branch automation solutions for the financial services industry recently launched its Instant Issuance Systems. credit unions have the ability to instantly issue new or replacement credit and debit cards in the branch on-demand. CTS family of devices includes three different models developed specifically for in-branch issuance. Studies show that one third of branch-issued cards are used the same day of issuance. For credit unions this translates into increased profitability and reduced service costs and security concerns compared to cards delivered by mail. In addition instant issuance increases activation rates for credit unions. Fis FIS Mobile Wallet a cloud-based mobile payment and coupon technology for iOS or Android-based mobile devices. FIS Mobile Wallet provides FIS employees a way to pay for purchases with their smartphone instead of with cash or cards. It is a software-only offering enabling simple deployment for financial institutions retailers and consumers. The cloud-based architecture is compatible with existing point-of-sale equipment and compatible with current iOS and Android mobile devices. FIS people pay a P2P payments offering for financial institutions that allows accountholders to send payments directly to other consumers using an e-mail address or mobile phone number while utilizing the institution s secure online Web site. FIS People Pay enables credit unions to provide members with real-time P2P payments. PayNetTM the industry s first global real-time payments network for domestic and international money movement for both retail and commercial trade. FIS paynet provide real-time access to deposit accounts enabling instant authorization of transactions PayNet is a non-card based solution for E-commerce person-to-person (P2P) bill pay mobile and international money movement. The solution leverages FIS network assets for real-time account access settlement between parties interchange processing multi-currency conversion and exception processing. Built using open architecture PayNet is easily integrated using standard XML to support financial institutions as well as emerging digital payment models. Roy Urrico is a freelance ghostwriter and byline writer of books articles newsletters guides case studies and white papers about financial institutions financial technology compliance information security credit and collections foreign exchange and many other financial topics. To find out more about how Roy can help your organization check out Roy s profile on LinkedIn visit his Web site at or email him at roy May 2013 Credit Union BUSinESS 31 markETing maTTErS 9 Essentials of Direct Mail Success D By Tony rizzo irect marketing remains the only tried and true method financial institution marketers have to generate remarkable measureable results. Yet many banks and credit unions still rely on nonmeasurable forms of mass marketing--TV radio newspaper PR or even the yellow pages--and haven t transitioned to direct marketing. It s time to step up and out Ladies think of direct mail as the little black dress you ve just got to have. Gentlemen think of successful direct mail as sinking a 20-foot birdie putt. If you are looking for a provable way to show senior management that marketing is more than an expense and can produce both revenue and profit growth then direct mail is your Rosetta stone. Financial institution marketing departments that have embraced direct marketing campaigns as proven results generators spend at least half of their marketing budgets on direct mail and companion cross-channel events like email. Are you missing out on their results You cannot go from having little direct mail experience to seasoned expert until you understand the terminology and the benefits successful direct marketing practices can generate. Here are the key elements you need to know to make direct marketing your go to results generator While these percentages still apply elements within each of these segments have changed substantially over the last several years The Terminology with remarkable results. Let s look into some of the basics first After visiting France Comedian Steve Martin remarked It s like and talk about some really cool direct mail campaigns later. those French people have a different word for everything Can Understanding the following concepts is crucial if you want to the same be true for Direct Marketing Perhaps. At the very least get the most from direct mail and will facilitate your asking the here are the three main areas of Direct Mail and where you can right questions along the way. find success 70% is the List 20% is the Offer and 10% is the Creative. 32 Credit Union BUSinESS May 2013 markETing maTTErS Dataanalysisandtargetmarketing Offer Creative(branding deliveryofvisuals) Variablemessaging Marketingchannels(multichannelmessaging) Testing&controlgroups Calltoaction(PURL QRcode phone in-branch) CommunicationwithSales Measuring let s examine two concepts. The first is Onboarding. The second is Re-Boarding. While there are many truly meaningful direct marketing opportunities let s start slow. Onboarding is simply new member cross-selling. Onboarding is the process of creating a system of automated communications and sending them out to new members. Starting with a static series of letters today s systems can generate a variety of offers. Essentially onboarding creates a decision tree whereby members receive individual offers that make sense for them but not for a broad group of people. These programs will track responses for two important reasons. First 80% of cross sales occur within six months after a member comes to your institution. This means that new members present enormous target-rich lead generation potential. Second 30-40 percent of these same new relationships will leave your institution during the first year unless you quickly get them into another product service. So for cross selling and retention reasons onboarding your new relationships will benefit you with more profitable and more loyal members. Direct mail can do this. Re-Boarding is similar to onboarding but re-boarding cross-sells to existing not new members. Let s say you want to reach out to members who have been with you for more than a year but have only one product with you. Creating a list of names and a campaign targeting this group is called re-boarding or the re-introduction of your products and services to a select group of members. Are many of your members single product households From our experience working with hundreds of financial institutions over 40 percent of your members have only one product with you. Re-boarding these folks offers target rich lead generation potential. We have established two worthwhile segments to contact and every institution should be marketing to both. For more opportunities take an outline of your institution s strategic goals and overlay the data points and analysis found in MCIF data The options become obvious. Data drives direct mail success and data is the main ingredient that drives the customized variable creative content we ll describe later. Data Analysis & Target Marketing How do you create a direct mail list The list is paramount for success in direct marketing and represents as much as 70% of a campaign s success. Creating an accurate list depends on knowing what you want to accomplish and getting access to the right member and marketplace intelligence. Most financial institutions struggle with gathering these basic elements because member data is not readily available and even when marketers have access to member data they are not always sure what parts of the data are important to creating the right list. Business intelligence which is fundamental to most retail companies is not always available to financial institutions even though they have the data. Many choose to employ an MCIF software program or hire a company that will manage and drive an MCIF for them. Yet once you have access to this member (business) intelligence how do you make sense of it to uncover the actionable data Filtering a member database for clues is a start. Having a tightly filtered list of members prospects who are likeliest to respond to your direct mail offer is vital. To make the most of your budget dollars sending 2 000 pieces to a highly target group is better than sending 20 000 pieces to those who may or may not respond. You want a high response buy rate on every mailing you send. The main reason database marketing MCIF software is so popular is its ability to segment your list along with its ability to measure the results of every campaign. Many sophisticated direct marketers utilize life stage codes demographics and even credit data for many of their campaigns. Depending on the project this data may not be necessary for you to use to deliver on your strategic objectives. In time however Offer you may find that appending this data is invaluable. The list and the offer are uniquely tied together. One doesn t To make data analysis or list generation simple to grasp make sense without the other. Establishing the appropriate offer May 2013 Credit Union BUSinESS 33 markETing maTTErS for your segment is essential You just segmented this unique group with something specific in mind. So what unique offer do you present to incentivize these likely buyers to action The offer must be visible obvious and compelling. If you can t get excited about what you are offering why would your target group The offer can be a variable dependent upon demographics or life-stage of each person in the targeted group or by branch location. But whether it s a rate payment savings package premium or convenience offer in the end your offer must be compelling. One quick way to test the clarity of your offer is to tape your message up on the opposite side of your office and stand back. Can you clearly see what you are selling Do you understand your offer Would it make you act If not you need to improve your offer. Remember it is action we want and action we expect from this targeted group. will deliver results. Variable Messaging In direct mail variable content has become an increasingly valuable enhancement to creative. Traditionally variable content simply consisted of mail merging a member or prospect s name. Today it means offering a variety of different visual materials and offers within a specific campaign targeted to various segments based on life-stage codes. Some of the variables might include the picture and name of each branch manager along with the branch name address and phone number or a map showing targeted members the nearest branch locations along with driving directions. Does using variable data improve campaign response rates Unquestionably it does make a difference. It s been proven that variable content based on variable data elements generates upwards of a 50% lift in a single campaign But in order to utilize variable data properly you must understand the data elements. You will need to append demographics life-stage codes and or credit data to your system. While this information is not expensive or difficult to get it does require some skill to use it effectively. Creating complex variable elements in direct mail requires special software and a proven track record. If you are not familiar with how to leverage variable data get help from a knowledgeable creative agency or direct mail firm and look for an agency or firm with the appropriate systems and experience to insure that there will be few mistakes. When done right using variable content in your direct mail is well worth the effort. Creative Creative represents only ten percent of the success of a direct mail campaign yet ironically the creative element is where most marketers spend the bulk of their time and energy. Rather than trying to get the look just right you ll achieve better results by spending more time on market segmentation and creating the offer. Everything you do creatively must fit your brand. Your CU probably has brand standards that your direct marketing should follow. Make sure your creative team asks for guidelines and follows these standards. If they haven t find out why not. Your creative should be simple. Resist cute or cerebral approaches. Remember you want to move someone to action and from a creative perspective the easiest way to do that is to keep your approach simple. How you construct a direct mail piece can influence response rates. Your creative firm can help you select the best and or most cost effective presentation whether it s a postcard tabbed piece lumpy mail or even a standard letter with or without a perforated reply mechanism. Don t make the mistake of ignoring the tried and true AIDA model (attention interest desire action) which has worked successfully for decades. Embrace the simple and proven methods represented by this acronym. Applying AIDA Marketing Channels Virtually every direct mail campaign benefits from using multiple channels that reinforce your message and offer. Sending a oneoff direct mail letter will not pull the same response as sending similar messages twice. And you will get even better overall results if your e-mail marketing and web banner messaging share the same message and call to action as your direct mail solicitation. The cost of including e-mail marketing and web banner ads to complement your primary direct mail solicitation is extremely low especially when compared to broad based media and direct mail. Yet most financial institutions still don t take advantage 34 Credit Union BUSinESS May 2013 markETing maTTErS of the simple power this multi-channel approach offers. If you want to amp up your direct marketing results and get an even better yield from every dollar spent use as many channels as you can. giving each member and or prospect a personalized web page and message This is one-to-one marketing Even if your prospect doesn t buy after viewing his personal URL you ll know whether or not they opened their page because only they have the access code. Your sales team can follow up and try to close with anyone who has expressed interest by looking. A QR Code stands for Quick Response. You may have already seen QR codes on some advertising. Essentially a QR code is a 2-dimensional bar code. Smart phone users can download a free QR Reader app to scan the QR code. Once the QR reader captures the image it immediately launches the phone s web browser and opens a special QR-based mini web page. Because QR codes are essentially smart phone apps it is highly recommended that the QR landing page be a smart phone ready mini web site. QR codes will become extremely commonplace within the next year. In fact this white paper will probably seem stale one year from now as it describes what QR codes will be instead of what they have already become. If you aren t using personal URLs or QR codes in your marketing to generate a unique call to action you are missing out on business. Success in direct mail demands that you maximize response rates by using multiple channels for your call to action. Make it as convenient as possible for your members and prospects to act. Testing and Control Groups Naysayers of direct marketing will insist that any results generated by a direct mail campaign would have occurred anyway because the CU has an established presence in its market. Use a control group in your campaigns to persuade non-believers that direct mail is effective. A control group simply sets aside a small percentage of your segment members prospects and deletes them from any mailing. Doing so allows you to compare the response rate of those you mailed to with those who were sent nothing. Effectiveness can be easy to prove if you know how. In addition to control groups savvy marketers test and retest individual elements of their direct mail campaigns. For example you might make a unique offer to one set of recipients to see if that offer gets a better response rate than others you re using. Or you might try using different mail construction methods--postcards vs. folded & tabbed pieces for example. Testing enables you to fine tune the message delivery price or offer of your direct mail to get the best possible results. Do you have to utilize control groups or perform testing of your marketing campaigns for success No but the more adept you become at refining your messaging to improve your results the more better it will be for you your career and your institution. Communication with sales Occasionally marketers are surprised to learn that the sales team is supposed to be working with marketing and vice versa. Senior management generally sends the sales group clear goals and objectives. In order do deliver the success management expects it is critical that marketing and sales work in tandem. Marketing must also communicate effectively. This means that they must share the concepts offers and objectives for every direct mail campaign with the sales staff. The last thing anyone in the retail branch wants is for a member to walk in holding a piece of direct mail containing an offer that no one knows anything about. As a plus when marketing shares the details of every direct marketing campaign with sales sales is given the opportunity to call select segments within the direct mail campaign to drive up sales revenue and response rates a benefit to both sales and marketing. Internal communication is pivotal for getting the Credit Union BUSinESS 35 Call To Action Mere marketing may make you feel but great marketing will make you feel and act A marketing statement should be logical but it should also appeal to the target audience s emotions. The emotional element motivates action. Personalized messages customized to address who your members are and what they need confirm that your bank understands them. In addition to making a compelling offer you must make taking action as easy as possible for members and prospects which means using today s tools of action--the phone your branch network your web page PURLs and QR codes. Are you familiar with PURLs PURL is an acronym for personal URL --a unique personalized web address. Imagine May 2013 markETing maTTErS most out of direct mail. segmentation list generation offer creation creative etc.-- all by themselves the majority prefer to get help from experts. Unless you are comfortable doing it yourself getting help may be your best first course of action. Once you gain confidence and experience you can take over. I hope you ve learned a little about the essentials behind direct mail s success. While it may be new to you direct mail is not a new concept. In fact direct mail may be the most tried and true of all marketing elements at financial institutions today. If you and your financial institution are looking for tangible and measurable results then direct mail is your answer. It is the go to results generator. By following these nine essentials you can achieve success too. Tony Rizzo is the general manager and creative director of MARQUIS Software Solutions. MARQUIS is the largest provider of MCIF CRM solutions to credit unions worldwide with a long-standing reputation for excellence. Measuring If it isn t measured it didn t happen. Why bother using direct mail if you aren t going to measure a campaign s impact Precious little marketing can be measured but direct mail is easy to track making it almost imperative that you to do so. Besides only by tracking results can you begin to prove that what you are doing delivers measurable revenue and profit growth. MCIF software programs or MCIF service bureaus make it easy for you to measure everything you do with direct mail. If you struggle with the tracking side of direct mail you should explore what an MCIF can do for you or find a partner who will measure your results for you through direct marketing fulfillment services. The 9 essentials of Direct Mail success Direct mail can help you generate measureable results and although many marketers opt to manage the process-- RESULTS. NOTHING ELSE MATTERS. 800.365.4274 MQ CU1-13 Business Ads 36 Credit Union BUSinESS May 2013 CU SPOTLigHT making History at Philadelphia Federal Credit Union By Sharon Sweda regulatory red tape associated with the restoration and remodeling of a listed historic building because the community was in obvious need of a financial services provider. Philadelphia Federal Credit Union is excited to become a part of the Fishtown Neighborhood shares PFCU s Communication Specialist Karen Eavis. We are the only financial institution within the historical district and we are eager to provide financial tools and education to its residents. Our intention is to serve and assist in financial growth for both members and businesses. The delicate remodeling process demanded preservation sensitivity without sacrificing functionality and while PCFU considers the move a long-term investment in the community they also see their move as a golden opportunity for expansion. Fishtown is an emerging market Eavis continued. Our location offers a new convenience for those who have not had local financial services in the past and we re able to extend our reach at the same time. PFCU s roots are similar to those of most large credit unions Chartered in 1951 as the Municipal Employees Credit Union they have since evolved to include a broader member base and today have well over 110 000 members with more than 900 000 in assets. They are proactive in an array of community-minded efforts with a strong focus on education offering seminars aimed at personal financial management and growth. We already have several upcoming seminars planned for the Fishtown district said Eavis. Our programs will be available to T he mere mention of Philadelphia stirs images of founding fathers the Liberty Bell and our nation s early history. It is an image matched by few other cities in the United States. Yet beyond its historical heritage and colonial landmarks Philadelphia is home to several of the oldest streets in America. Philadelphia Federal Credit Union has chosen to open their tenth bricks and mortar branch near one such street that dates back to the early 1700 s. Bricks and mortar literally describes PFCU s newest branch location. Housed in a building that appears on the National Register of Historic Places it occupies the original 26th District Police and Patrol Station in the heart of Philadelphia s historic Fishtown district which is situated on the banks of the Delaware River and dates back to the 1600 s. PFCU grabbed the opportunity to become part of the historic district in spite of all the stringent May 2013 Credit Union BUSinESS 37 vISIT THE MARkETplACE pAgE AT www.CUbUSINESS.CoM Marketplace Card Processing Payment Solutions Branch Services Coin Counters Coin Counters Branches still matter Bancography builds branching strategies Branch site analysis Current branch performance Branch network optimization Branch profitability Staffing review Sales goals branch info 205.252.6671 FoR ADvERTISINg INFoRMATIoN Call GreG Halpern 561-282-6015 4 GreG Cubusiness.Com Marketplace Currency Coin Handling What Does Automating Your Currency Handling Needs and Providing Self Service Coin Redemption do for Your Branch It Gives Your Tellers Tools for Success Increases Branch Teller Increases Cross Selling Efficiency Opportunities Helps to Meet Member Strengthens Member Expectations Retention Reduces Costs Adding to your Bottom Line What Does it Take to Learn a Little More Not a Lot... Just ask your Magner Representative Phone 800-243-2624 Email solutions Online Let s talk about doing things the right way... Self-Service Coin Centers Currency Dispensers Currency Recyclers Proven Performance and Quality Facilities & Design Lending A Nationwide Lender with the Expertise to Get Your Deal Closed Business Partners is a nationwide provider of commercial real estate lending services with years of experience funding loans. We provide financing for most property types in primary and secondary markets Loan amounts of 500K to 20MM Competitive rates Terms of 3 5 7 or 10 years 25 year amortization Up to 75% LTV of appraised value or purchase price of the loan amount Loan fees 1% Atlanta GA - Los Angeles CA - Chicago IL - Dallas TX - Denver CO - Stamford CT CU SPOTLigHT anyone who is interested and are not restricted to members only. Although our new branch has seating for only twelve to fifteen attendees other locations typically attract a crowd of between twenty and thirty. Because of the strong interest and popularity of our offerings we often reserve a room at local public libraries. The seminars are always well attended. The new branch is as much an attraction as institution. The decor is a respectful blend of past with present that is decorated with historical snapshots and progressive enhancements that position PFCU ahead of traditional banking alternatives. The Fishtown location has an Internet cafe a free coin-counting machine and a full-service ATM. A beautiful mural that pays homage to Cramps Shipyard is both a tribute to and reminder of the fishing legacy of the neighborhood--hence Fishtown. The branch s soft-launch was held on April 16 2013 and a ribbon cutting with ceremonial activities will follow. The 40 Credit Union BUSinESS Fishtown location opens at 8 00 a.m. on weekdays and has extended service hours on Thursdays until 6 00 p.m. and Fridays until 7 00 p.m. Committing to Fishtown is PFCU s effort to become Fishtown s financial partner and resource. The 3 000 square foot building itself a landmark is where Philadelphia Federal will begin to establish a history of their own by offering lower rates expanded and affordable services and convenience as they engage with their new neighbors who are looking for personal attention and a caring financial resource. Sharon Sweda is a freelance writer who has worked in the real estate and finance industries for the past 28 years. Contact Sharon at SharonSweda to SpotLite your credit union. May 2013 GIVE FREE INSURANCE QUOTES WITH EVERY LOAN. Introducing LoanINSURE SM AUTOMATICALLY. a technology platform that generates instant auto and home insurance quotes as part of the mortgage and auto loan application process. The LoanINSURESM platform integrates into your loan origination system so you can say Here s your loan approval and here are your free competitive insurance quotes . If you need to create a powerful new source of fee income let us show you how our turnkey insurance agency solution can help. Call 860.653.1134 today for a free strategic assessment or go online at