March 2015
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FOCUS is the monthly e-Newsletter of the Office of Small Credit Union Initiatives (OSCUI). It focuses on helping small credit unions achieve success by providing news and highlighting opportunities. Subscribe
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 Featured this Month (Click on a heading to go to the article.)
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Headliner
New from OSCUI - a CDFI certification video
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| Click the image above to view the video. |
Our newest video is directed toward credit unions interested in becoming certified as Community Development Financial Institutions. It features a series of five modules during which staff from OSCUI and the CDFI Fund provide guidance to credit unions on the benefits of certification and advice on the certification application. The explosive increase in low-income designated credit unions in recent years is the main reason we initiated this video project with the CDFI Fund. Since 2012, NCUA has made obtaining the low-income designation easier and as a result, the number of low-income credit unions has increased nearly 80 percent to 2,152 as of year-end 2014. Due to the CDFI Fund's mission and target population, the increased number of credit unions providing financial products and services to low-income individuals and communities expands the number of credit unions potentially eligible for award from the CDFI Fund. In 2014, the CDFI Fund awarded more than $160 million to 152 organizations through its flagship program. Credit unions represented less than 14 percent of the number of awards. Certification is generally a prerequisite to accessing funding from the CDFI Fund, which is why this video was so important for us to offer as a resource and to increase credit union awareness of the opportunities available through the CDFI Fund. The video is offered in five modules for viewing ease and includes stories of three credit unions that have obtained certification. Each module is less than 10 minutes long.
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| Webinars begin at 2 p.m. Eastern and last 90 minutes. Register on our website. March 25 Successful Strategies for Field of Membership Expansion April 15 New Products and Services for the NCUA Grant Program April 22 Credit Union Partnerships and Collaborations: Success Stories May 20 Cyber-Security: The Basics June 17 Remittances and Other Money Transfer Services Aug. 19 Small Credit Union Accounting Issues Sept. 16 Participation Lending in a Safe and Sound Manner Oct. 21 Data Mining: Golden Nuggets for Your Marketing Campaign Nov. 18 Auto Lending Dec. 16 Getting Started in Mortgage Lending |
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We value your input. Email suggestions for webinar topics to our Training division at
[email protected].
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| In FOCUS with Bill What's the challenge for small credit unions? 
The general, bleak assessment of small credit unions notes that over this last decade, 38 percent of small credit unions merged, 7 percent shrank and 3 percent were liquidated. In the aggregate, this is a dismal picture with plenty of negative trends. We often ignore the 52 percent of small credit unions that grew. We rarely mention the 10 percent that grew significantly beyond the designation of "small." The fact is, more than half of small credit unions are doing well. At OSCUI, we're trying to understand how big "small" is and how we can best assist these valuable credit unions. Most small credit unions employ a protected niche strategy. This gives them some incubation time before they enter the waters of competition. The typical profile is:
- Single market: community, employer, association
- Single profitability strategy
- Single manager
- Single economic condition
- Single internal control system/function
- Single location
Read Director Myers' entire column.
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OSCUI in the News
Recent media citings about our office and services
NCUA Board Proposes $100 Million Threshold for Regulatory Relief
NCUA Media Release
"Small credit unions are essential to their communities, but many are struggling," NCUA Board Chairman Debbie Matz said. "Few economies of scale, tight interest margins, outdated technology and new competitors are among the market forces our Office of Small Credit Union Initiatives works to help them overcome. To further help small credit unions compete, the NCUA Board has already taken several steps to alleviate regulatory burdens, including scaling our rules for interest rate risk, liquidity and risk-based capital and revising our examination process."
NCUA Hosting Field-of-Membership Webinar
NCUA Media Release
This webinar is offered at no cost to participants. Vanessa Lowe, Economic Development Specialist with NCUA's Office of Small Credit Union Initiatives, will be joined by Ynette Gibbs, Chief Executive Officer of Newrizons Federal Credit Union, Hoquiam, Washington, and staff from NCUA's Office of Consumer Protection. The panel will discuss how field-of-membership expansion and reaching underserved communities can be part of a credit union's strategic plan.
NCUA slates free FOM strategies webcast
NAFCU
Webcast speakers will include Vanessa Lowe, an economic development specialist in NCUA's Office of Small Credit Union Initiatives; Ynette Gibbs, CEO of Washington-based Newrizons Federal Credit Union; and staff from NCUA's Office of Consumer Protection.
NCUA Webinar On FOM, Underserved Set For March 25
CU Today
Vanessa Lowe, economic development specialist with NCUA's Office of Small Credit Union Initiatives, will be joined by Ynette Gibbs, CEO of Newrizons FCU in Hoquiam, Wash., and by staff from NCUA's Office of Consumer Protection.
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For Your Attention
New online NCUA resource
 Small Business Lending Resource is a newly added page to the NCUA website. It offers detailed information about NCUA's member business lending rules and regulations, supervisory guidance, links to the Small Business Administration's loan programs and related articles from The NCUA Report, NCUA's monthly newsletter. [Back to top] |
Consulting
Strength through strategic planning
Thanks for your assistance throughout this process. I believe we are starting to see some of the strategies that we have initiated since April's assistance from the Economic Development Specialist as reflected by our earnings and additions to our capital. Our October and November incomes have been very encouraging in our pursuit to increase our capital position. Victor Gioiosa, CEO, ARC Federal Credit Union One of the most frequent requests we receive through our Consulting Program is for strategic planning. During these contacts, our economic development specialist consultants work with the credit union's management and board of directors to cultivate effective planning processes for the management group. As the results of our impact analysis study revealed, this is one of the most successful services we offer.
For example, during April 2014, an economic development specialist worked with the leadership of ARC Federal Credit Union to fine-tune its strategic initiatives. The credit union's management contacted OSCUI for guidance in assessing its progress and building on its financial health.
The credit union had a
business strategy and plan but wanted professional expertise to assess it. So, the management contacted OSCUI. We assigned an economic development specialist, who provided the requested guidance. The credit union management continued working subsequent to the consultation. Six months following the consultation, the credit union approved a new strategic plan and reported operational enhancements.
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Grants and Loans
Round 1 of grants attracts great interest
More than 300 credit unions submitted applications to the funding round that closed earlier this month. Funding was available under two initiatives: Staff Training and Student Internship. Based on the total amount of funding requests, both initiatives are oversubscribed, as shown in the graph below. 
We will notify applicants of their award status in April.
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Partnerships & Outreach
Money Smart Week is April 18 - 25
Money Smart Week is a public awareness campaign designed to help consumers better manage their personal finances. Organizations across the country, including businesses, financial institutions, schools, libraries, nonprofits, government agencies, and the media, will promote the importance of financial literacy. Find out how your credit union can take part. NCUA is one of more than 20 federal entities that comprise the Financial Literacy and Education Commission. An abundance of consumer-oriented materials is available on the Commission's website.
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Training
Low-income designation guide now available
"Maximizing the Low Income Designation" is a new white paper recently released by OSCUI and available on its website.
Credit unions serving predominately low-income member/owners face unique challenges meeting the special needs of this segment of the population. They are often required to provide labor-intensive products and services. Finding ways to supply quality financial services to low-income individuals is no small task and in many cases may be more expensive than services to other members. This paper describes the benefits of NCUA's low-income designation, discusses the challenges and ways to better serve low-income members, provides guidance on obtaining the low-income designation and includes links to resources for more information.
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Happening in OSCUI
Information and updates Outreach OSCUI Director Bill Myers had meetings with the Special Trustee for American Indians, Fedcomp, the National Association of State Credit Union Supervisors and credit union league representatives from several states. Details OSCUI welcomes the assistance recently provided by the following NCUA staff from other departments: Carlos Arze is an examiner with NCUA's Region II office. He joined NCUA two and
half years ago and is stationed in Washington, D.C. Prior to joining NCUA, he worked at different financial institutions, including credit unions, a mortgage company, banks and a county government agency. "I chose to perform a detail with OSCUI to learn more about the many resources it offers small credit unions. Now that I have my own district, which includes small credit unions, I want to share these opportunities with them. Miguel A. Polanco manages NCUA's Supplier Diversity Program, which promotes the in clusion of minority- and women-owned businesses in the agency's contracting activity. Miguel is stationed in NCUA's Central Office. Prior to joining NCUA, he held a variety of positions in the public and private sectors, including working as a business development specialist with the U.S. Small Business Administration, service as a military intelligence officer in the U.S. Army, and a business consultant for non-profit institutions and small businesses. Miguel's detail to OSCUI helped him fulfill a requirement under NCUA's Management Development Program. This competitive, 18-month program is designed to further develop and prepare non-supervisory staff to assume management-level positions. "I selected OSCUI as a detail assignment to understand and experience first-hand the work and mission of this office. My background in small business consulting . . . aligns perfectly with my professional interests and OSCUI's mission to provide support and guidance to small credit unions." [Back to top] |
Announcements
Non-NCUA sponsored events and opportunities
Partner Events
Guidance to Encourage Financial Institutions' Youth Savings Programs. Five federal financial regulators issued guidance in February regarding youth savings programs. The guidance was designed to encourage financial institutions to develop and implement programs to expand the financial capability of youth and build opportunities for financial inclusion for more families. It also addresses frequently asked questions that may arise as financial institutions collaborate with schools, local and state governments, non-profits, or corporate entities to facilitate youth savings and financial education programs. CDFI Fund Releases Two Independent Reports on the CDFI Program. Two independent reports provide comparative analysis and evaluation of the effectiveness of CDFIs as compared to mainstream lenders. The findings confirm that CDFIs are resilient and a reliable resource for capital in areas that need it the most.
Other
The Financial Solutions Lab application is now open with a $3 million competition. The Center for Financial Services Innovation invites innovators to submit financial product and service solutions that help households better manage their finances on a tight budget. Applications are being accepted until April 7.
The National Community Reinvestment Coalition Annual Conference. The conference will be held March 25 to 28 at the Capital Hilton in Washington, D.C. The conference also helps educate community development banking practitioners about challenges and opportunities. NCRC and its partners are dedicated to bringing together financial institutions, community advocates, and regulators to improve fair and equal access to financial services, including credit and capital, for low- and moderate-income communities and communities of color.
Financial Literacy Summit. The Federal Reserve Bank of Chicago and Visa will sponsor this conference on April 15 in Chicago. During the summit, senior financial literacy experts from government, the financial services industry, non-governmental organizations, the news media, and academia will discuss potential ways to improve financial literacy for the unbanked and underbanked.
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Pamela L. Williams
Editor
Contributing writers: Carlos Arze, Dominic Carullo, Victor Costa, William Myers, Jason Penn, Miguel Polanco, Oscar Trejo
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NATIONAL CREDIT UNION ADMINISTRATION
The Office of Small Credit Union Initiatives
1775 Duke Street, Alexandria, VA 22314
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