What can happen when account cards have errors or if they contain contradicting information? You might be under the assumption that it’s fairly insignificant, but a small error can turn into a bigger deal than you might think. Even when it can be easily cleared up, you still have to inconvenience your members to take their time and effort to come into your branch and fill out new paperwork to correct your mistake. That alone can be costly to your member relationship. If an error is left uncaught however, the cost could be much greater than a lost member, it could also hit your bottom line, hard! Check out a couple real cases where seemingly minor human error in account opening and titling ended up costing credit unions BIG. (Name of CUs redacted)

Real CU Costly Error #1: ABC Credit Union allows numerous changes in account ownership and POD payees over several years. Multiple cards exist with contradicting information and some paperwork is missing.

Oh No…what happened? It didn’t end well for ABC Credit Union when they paid out $210,000 due to records not clearly documenting ownership.

Real CU Costly Error #2: XYZ Credit Union opened a trust account but did not require John Doe to sign documentation in representative capacity.

Oops, that’s seems problematic doesn’t it…guess what happened? A court ruled XYZ CU didn’t follow protocol resulting in a $545,000 judgement against them.

Don’t take chances or assume you’re following the proper procedure. Join us on April 7 & 8 and in these two half day virtual sessions Debbie Crawford will ensure you are well versed and confident in the steps necessary to protect your credit union when it comes to account titling, account ownership, liability protection and more.

See full details for our Share Accounts Essentials workshop and register today, click here.

As we look to the ever-changing future credit unions face, it’s no surprise that lenders are shifting their attention to diversity when it comes to their products, services, employees and members. With nearly 60 million Hispanics living in the US, many credit unions are focusing on strategies that make homeownership a possibility for their growing number of Hispanic members who want to achieve the American dream.

The Urban Institute projects that by 2030, 55% of all new homeowners will be Hispanic. And according to Freddie Mac, in 2018 there were 4.9 million mortgage-ready Hispanic Millennials, also called Hispanials, in the US. So why aren’t even more credit unions establishing a plan to attract either Hispanic members or employees? MGIC recently partnered with CUNA Mutual Group and I had the opportunity to ask Multicultural Strategy Manager Edgar Hernandez that very question — as it turns out, it’s for the simple reason that many credit unions simply don’t know how to go about reaching the Hispanic demographic.

So, what is the best way to attract this new, untapped set of potential first-time homebuyers? According to Edgar, credit unions should focus on what we know Hispanics value most. 

Homeownership has long been referred to as the American Dream. It provides stability for families and neighborhoods, in addition to having a significant impact on generational wealth. So why don’t you have more homeowners among your eligible members? It could be because they think they need a 20% down payment to qualify for a mortgage. In fact, saving for the down payment is routinely identified as the greatest barrier to owning a home.

CUNA Mutual Group recently partnered with Mortgage Guaranty Insurance Corporation (MGIC), a private mortgage insurance company that is the pioneer of PMI. With the help of MGIC you can offer mortgages to your members with as little as a 3% down payment, while providing protection against default to your credit union.

The information shared in this brief online session will help you to:

This program is free to LCUL Member Credit Unions, register here.

As the account onboarding process shifts from personal, in-branch interactions to remote digital channels, it’s important not to drop the ball with it comes to fully communicating how your overdraft program works and how it can be accessed. Learn how attention to onboarding disclosures—along with consistent follow-up throughout the life of an account—can build account holder loyalty and prevent compliance concerns.

Campus Federal Credit Union has officially opened its newest innovative facility, the Interaction Center at Long Farm Village. A Ribbon Cutting ceremony was held in February at the 1,700-square foot Center located at 9555 Antioch Road.

The Interaction Center demonstrates Campus Federal’s commitment of investing in technology to continually improve the service it provides to members across all channels and touchpoints. Campus Federal designed this facility to provide a digital-first, member-centric experience. 

The Interaction Center features a Video Call Center, which allows members to virtually chat with any of Campus Federal’s financial service representatives including mortgage, business and lending experts. This location is also equipped with a Campus Connect Interactive Video Teller Machine, offering members the latest in technological advances with an optional teller via two-way video to assist.

Additionally, this modern banking facility has on-site representatives ready to assist, advise and serve a variety of member needs from account questions to instant issue credit and debit cards and more. 

“We’re continually looking for ways to improve and enhance the overall experience we’re providing to our members,” Campus Federal President and CEO Jane Verret said. “The Interaction Center is the ideal way to provide our members with modern banking technology while preserving the face-to-face service our members have come to love.”

Over the 2020 calendar year, Pelican State Credit Union conducted 2,878 one-on-one credit counseling sessions for members of the credit union.

Pelican is honored to continue its commitment of improving the lives of its members through safe, competitive products and educational services, and that commitment continues to shine. Over 1,000 more credit counseling sessions were hosted in 2020 than 2019, which is almost a 56% increase. Credit counseling is a completely free service for all Pelican members, and sessions can be held either in-person or remotely.

In addition to the 2,878 counseling sessions, the credit union also celebrated 32 members graduating from its award-winning Financial Wellness Program in 2020. These members overcame personal and financial obstacles and reached outstanding milestones such as paying off negative accounts, purchasing new vehicles, and becoming homeowners.