ICUL Service Corporation
 
ICUL League Directors Report
 
 
     LEAGUE             
DIRECTORS' REPORT
Illinois Credit Union League                                                 March 2015
  
Feature Story
  CU Mobile Apps, LSC partnerships
to help credit unions meet demand of evolving mobile age
  
Mobile app solution allows members to carry their credit union with them 24/7 
  
LSC® is teaming up with CUNA Strategic Services (CSS) to deliver CU Mobile Apps -- a true, single mobile service delivery solution and new "equalizer" to help League partners and more than 2,300 small-and-mid size credit unions across the country more effectively compete and capture today's mobile members.
  
CU Mobile Apps is a customizable, affordable, turnkey mobile delivery solution that heightens essential two-way communication between credit unions and their members and puts the power of a credit union branch right into the member's hands.  It is the latest product offering to be announced for the existing LSC/CSS prepaid card portfolio and as part of a continued strategic alliance between the two entities, who have partnered since 2009.
  
"Credit unions need comprehensive and cost-effective mobile solutions to remain competitive as well as to attract the next generation of members," said LSC's Patricia Smith, Senior Vice President, Sales, Brand, and Marketing.  "CU Mobile Apps exists to provide those solutions as well as a crucial competitive edge in the financial services marketplace."
  
With security top of mind with credit unions and their members, CU Mobile Apps imbeds a unique, patent-pending security technology, with anti-malware and anti-spyware functionality.
  
"Not only can credit unions of all sizes customize the technology to fit their unique brand and needs, but they also have the reassurance that the CU Mobile Solutions team has put app security at the top of their priority list," said Wes Millar, senior vice president, CUNA Strategic Services.
  
More specifically, CU Mobile Apps encapsulates the credit union's current banking solution, Remote Deposit Capture (RDC) capability, integrated locator searches, P2P solutions, social media, and podcasts, and takes a credit union from an online banking or mobile banking tool to a full service mobile app.   It requires no additional software or hardware and supports the most utilized mobile platforms, including Apple, Android and Kindle Fire.
  
"The value of this mobile delivery channel is in the experience and relationship it facilitates between credit unions and their members, and driving new product sales and loan growth via direct mobile marketing," concluded Smith.
  
CU Mobile Apps is leveraged by the synergy and strengths of a unique trio of organizations - LSC®; Member Service Solutions LLC (MSS), which helps credit unions maximize technology to strengthen their position in the marketplace; and Metova LLC, which has been on the leading edge of successfully combining next-gen technology with practical solutions, including implementing popular mobile apps such as Yelp, WebMD, and EHarmony.  Metova's technical savvy and experience made it evidently clear to LSC and MSS that the three should pursue a strategic partnership.
  
To learn more about how they can capture today's mobile members and keep up with the ever-changing and evolving mobile age, credit unions of all sizes are invited to attend one of CU Mobile Apps' no obligation online demos today where its state-of-the-art iPhone simulator is used to view its apps.  Call (800) 537-9035 or go to http://www.cumobileapps.com.
Important News
  
2015 Board Elections Announced
  
Listed below are results of the 2015 League Director elections as tabulated and confirmed by the independent Teller of Elections, Selden Fox, Ltd., Certified Public Accountants, Oak Brook, Illinois.  Terms of office commence on April 16, 2015, immediately following the League's Annual Delegates' Meeting and expire in 2018.
  
District 1 - Sangamon Valley, Southern, Boyle, Danville Area, Quincy, Burnett, Egyptian, Greater Decatur, Kelly
  
Class B - Kerry Fearn, CEO, Area Educational CU
  
District 2 - Central Illinois, Kankakee, Chicago Metro (former Southeast), Will County, Galesburg, Aurora, Bloomington, Illinois Quad Cities, Tri-County
  
Class C - Tim O'Donnell, CEO, Financial Plus CU
  
District 3 - Northwest Illinois, Chicago Metro (former Southwest), Rockford Area, Brietzke, Doig, Fox Valley, Northern Cook
  
Class A - Jose Garcia, CEO Northwest Community CU
Class D - Peter Paulson, CEO, Corporate America Family CU 
 
  
  
Illinois movement shines at GAC
  
A mighty delegation of more than 70 political advocates from Illinois credit unions along with League and LSC officials were among the 5,000 in attendance at the CUNA GAC.  Among the highlights of the event were:
  
* LSC® partnering with CUNA Strategic Services to engage with attendees about CU Mobile Apps and the NewGen reloadable pre-paid debit card to help credit unions thrive in the very competitive mobile sphere and with the highly sought-after younger member demographic;

 

* NCUA Vice Chairman Rick Metsger addressing the Illinois delegation at our opening night reception;

* ICUL CEO Sean Hession and staff taking the opportunity to meet with NCUA Board Member J. Mark McWatters;

* Motorola ECU Board Member John Fiore representing Illinois during the Parade of Flags;

* ICUL's Patrick Smith speaking on a panel to discuss Illinois' landmark exam consistency legislation (HB 5342) and regulatory exam issues.

* The Delegation participating in nearly 20 Hill visits;

* A Constituent Coffee with Illinois Senators Durbin and Kirk.

Be sure to check out ICUL's Twitter Feed for photos from GAC. 

 

 

Annual Convention Update:
Announcing...2015 Crashers!   
  
The League, Illinois Youth Involvement Council and CU Reach are thrilled to announce it's select group of first-time convention attendees under age 40 who have been chosen to "crash" the Convention.
  
This unique program, designed by their CU Reach peers, is a great opportunity to develop our future leaders.  This group will be wearing identifying t-shirts so please help us welcome them throughout Convention. 
  
This year's group includes: Leslie Barsema, 1st MidAmerica Credit Union; Heather Miller, Champaign County Schools ECU; Daniel Jorgensen, Community Trust Credit Union; Mauro Chavez and Amber Lockman, Earthmover Credit Union; Mayra Guerrero, Michael Leahy, and James Medina, First Financial Credit Union; Stefanie Allison, Michelle Dyer, Danielle Scharf, and Mary Ellen Spencer, ISU Credit Union; Whitney Degenhart, Jeff-Co Schools Federal Credit Union; Shea Walters, Land of Lincoln Credit Union; Jenny Pearson, Members First Community Credit Union; Kelsey Spoonmore, Members First Community Credit Union; Denice Saucedo, North Side Community Federal Credit Union; Donald "Mack" Story, NuMark Credit Union; Blake Wallace, Staley Credit Union; Wendy Hawkins and Sonia Woosley from Streator Onized Credit Union; and Vincent Drake, Tee Pak Credit Union.
Educational Opportunities
  
Credit unions have an opportunity to capitalize on the economic upswing. Successful credit unions must be innovative and proactive, not reactive, in their effort to maximize loan growth, profitability, and retention while managing risks and minimizing losses. At the Lending Strategies for Growth, Profitability and Retention QuickBites on March 25 (Session Code: 443), explore key lending strategies to help you capture more loans, increase your ROA through increased profitability, and attract and retain new members.

 

The goal of vendor due diligence is for a credit union to gather and review enough information about a potential business partner to make an informed business decision on whether or not to work with that party. The key to achieving this goal is the balance between the amount of due diligence conducted and the needed time and resources the credit union spends on gathering and analyzing the information.  Learn more at the Vendor Due Diligence QuickBites on March 31 (Session Code: 444).

 

The Problem Loan Workout in Today's Market Telecourse on April 8 (Session Code: 458) will focus on what happens when a "good" loan turns into a "bad" loan.  What should the credit union do and not do at this point in time? This session will address the "legal rights" of the credit union and the "practical steps" that the credit union should take in order to protect itself including repossession, foreclosure, filing a law suit, forcing the borrower into bankruptcy and/or simply "walking away."

 

Now that you understand mobile lending, have you learned what it can do for your credit union and your members?  Member experiences, fueled by technology, are driving new expectations for your members. Find out more at the Integrating Mobile into Your Loan Growth Strategy QuickBites on April 20 (Session Code: 459).

 

The new RESPA/TILA changes are looming... will you be ready?   Are you and your systems prepared for the changes?  Will your loan originators and processors know how to effectively communicate the forms to your borrowers? Are you ready for the changes in timing and how it will affect your closing dates?   Tune in to the RESPA/TILA QuickBites on April 23 (Session Code: 460) and get up to speed!

 

When members want the credit union to hold trust accounts, does the credit union member service rep know how to set up the accounts? This question and many more will be answered at the Trust Accounts QuickBites on April 28 (Session Code: 461). From establishing the account to offering lending to trusts, the speaker will cover the ins and outs of credit union trust accounts and offer advice on how to avoid common errors.
  
New and on-demand for 2015 is H.B. 5342 - BOD & Supervisory Committee Training.  H.B. 5342 was initiated by the League to establish a framework for consistency and clarity in the credit union regulatory exam process and signed into law by Governor Quinn on July 24, 2014. One element of HB5342 requires that each credit union board director must understand the credit union's financial statements. The provisions also establish an annual training obligation for Supervisory Committee members, so they understand their statutory duties. Sign up for this important training today  (Session Code: 419).
  
On-going resources also include on demand training for the Bank Secrecy Act and Financial Exploitation of the Elderly.  In addition, the audio archive of all QuickBites and telecourses is 60 days with paid registrations!
  
For the complete calendar, please see the League's Web site.




                             
    
Connecticut State Employees, members to see increased prepaid benefits
$1.6 billion CU signs with LSC® for Everyday Spend   
  
When the $1.6 billion Connecticut State ECU had to find an alternative for a crucial service its members came to trust and heavily rely upon, the credit union selected LSC® and its Everyday Spend reloadable debit card program as the clear choice to meet high member expectations.
  
About a year ago, the credit union received notice from Elan Financial Services that PayCard, the existing prepaid debit card it offered would be discontinued, according to CEO Dan Daigle.  While searching for a fitting replacement, the credit union's top priority was to find a card appropriately priced for their members.  For that reason and as a result of other upgrades, it became evident that Everyday Spend, part of the CUMONEYSM suite of pre-paid products from LSC, was the best fit for Connecticut State ECU and its members.
  
"We liked the fact that members will be allowed to fund the card themselves via the Internet, so right from the start, that is an excellent new member benefit," said Daigle.  "The card also offers Visa's zero liability coverage for card-related fraud, and that is another big plus."
  
Connecticut State ECU has traditionally offered pre-paid debit because members feel their money is secure using this product.  "That's why we got into it from the beginning, and with the switch, our members' sense of security will be seamless," continued Daigle.  "Prepaid also presents a nice budgeting tool for the member."
  
Daigle added that a large consideration in choosing Everyday Spend was because LSC was a CUSO recommended by their League, and the credit union saw the potential of its staying power in the marketplace.  "CUMONEYSM is a well-established program and LSC has a lot of faith in a positive future for the product."
  
For more information about Everyday Spend, please call 800-942-7124 or email sales@lsc.net.

 

DATES & EVENTS
  

Registration now open for ICUL Legislative Day and Reception and 5th annual golf outing.

The Legislative Day event and Reception, a one-day function complete with State Capitol visits, has been scheduled for May 5 in Springfield. In addition, the 5th annual CUPAC Springfield golf outing is again being held prior to Legislative Day on Monday, May 4.  Legislative Day provides political awareness of industry issues, the tools to effect change, and credit union networking. By working together, we can Unite for Good to achieve our legislative goals and promote the powerful credit union cause and its positive effects. Join us in the state's capital for the 2015 Legislative Day & Reception and connect with leaders throughout the state of Illinois!  Brochures for ICUL's annual Legislative Day and golf outing have been mailed to all credit unions and are also available via the League's Web site (here for Legislative Day and here for the golf outing).  Please mark your calendar and turn in your registrations today!

 

Financial Fitness Day - April 1, 2015.  The Illinois Credit Union Foundation has been working with the National Credit Union Foundation (NCUF) on "Financial Fitness Day" - a fundraising and awareness campaign taking place April 1, 2015.  It's easy to participate! Just hold one (or more) of the following at your credit union on Financial Fitness Day - 4/1/15:
*     Jeans or Casual Day for staff
*     Bake Sale for staff and/or members
    Deduct or Donate a Buck - Ask staff and/or members to consider a voluntary contribution of $1 or more either in cash as they complete their transaction and/or deducting from their checking or saving account as often as they choose.
 

All donations from credit unions for this campaign will be split 50/50 between NCUF and the ICU Foundation in support of their financial education initiatives to help consumers of all ages achieve financial freedom.  For more information and a variety of downloadable resources to get involved, visit www.financialfitnessday.com.

 

ICUF Raffle tickets due back by April 3.  Ten lucky winners will receive cash prizes from the ICU Foundation in its annual raffle fundraiser.  Tickets are only $5 each and can be purchased from participating credit union sellers.  The drawing will be held on Friday, April 17, 2015 at 2:15 p.m. in the Exhibit Hall at the Renaissance Schaumburg Convention Center during the League's Annual Convention.  Prizes are $2,500 Grand Prize, $500 2nd, $500 3rd, $250 4th, $250 5th, $100 6th through 10th.  Credit unions who are selling raffle tickets should mail the sold tickets to ICU Foundation, PO Box 3107, Naperville, IL 60566-7107 by April 3 to make sure we receive them before the drawing.  Ticket sellers who are attending Annual Convention can return the tickets to the Foundation's booth in the Exhibit Hall.  Questions? Contact Melanie Murphy at 800-942-7124 or melanie.murphy@ilcusys.org.

  
ICUF Scholarship & Grant Application Deadline - March 31.  March 31 is the main deadline for scholarships and the first deadline for grant applications.  The Foundation accepts scholarship applications throughout the remainder of the year and distributes awards as long as funds are available.  The 2015 ICU Foundation grant application deadlines are March 31, July 31 and October 31.  Grant funds are available on a first-come, first-served basis.  Application forms are available online Also available online is a one-page summary of the scholarship and grant programs with details on how funds can be used.
  
  
It's not IF - It's WHEN
Prepare Your Credit Union for Data Breach Aftermath   
By Jay Isaacson

With the rise in highly publicized financial data breaches, the first question credit union directors and senior executives should ask themselves may not be how to prevent it from happening to their credit union. Given the most recent cyber-crime statistics (see sidebar), the more appropriate question to ask may be: "What are we going to do when it happens to us?" Not if, mind you, but when.
  
Beyond lawsuit judgments and defense costs, your credit union may be faced with a variety of other direct and indirect losses a data breach can cause. For example, consider how your credit union would handle these potentially significant expenses:
  
1. Investigating the data breach's cause and extent
You may need to hire a forensic auditor, network security specialist, or other professionals to determine which databases and files have been compromised, which members may be affected, the types of member data breached, how hackers gained access to the data, etc.
  
2. Extortion threats
Imagine your CEO gets a call from a hacker who can confirm the acquisition of confidential member information. The hacker demands $1 million not to release the information to other criminals who will exploit the information. 

To read the full article and learn more, please click here.

Illinois Credit Union League

 

1807 W. Diehl Rd. Naperville, IL 60563      225 S. College, Suite 200, Springfield, IL 62704

(800) 942-7124      http://www.iculeague.org


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