5 Reasons Credit Union Lending Beats the Bank

5 Reasons Credit Union Lending Beats the Bank

The next time one of your members thinks about getting a loan to make home repairs, finance a new home, or purchase a vehicle, use the five tips below to help the member choose you as a lending option. People often operate under the assumption that a bank is the only place that can serve their lending needs. It might be time for you to shine a little light on the subject for the potential borrower. Listed below are our 5 reasons credit union lending beats the bank for lending.

5 Reasons Credit Union Lending Will Beat a Bank Every Time

1. Higher Approval Rates If your member’s credit is stained, dirty, or needs a bit of repair, your credit union is much more likely to be accommodating than a bank. Though the loan terms and processes are very similar, credit unions are known for listening to their members’ needs. Credit unions are most likely to understand that unique situations occur, and will work toward loan approvals. They will even adjust loan terms accordingly in some instances. Book any type of loan when you use Oak Tree forms.

2. Better Rates To explore this, let’s look at vehicle loans. Typically, most of us will secure a five-year loan for a vehicle. The rate at the credit union will be much lower than the interest rate at a traditional bank. It may only look like a 1% difference, but that 1% can add up to thousands of dollars put back into your member’s pocket during the life of the loan. Oak Tree forms stay on top of state and federal compliance laws and their ongoing changes, which supports low-interest rate loans.

3. Better Services Since credit unions are classified as nonprofit, they don’t answer to a shareholder board. Operation decisions are usually made by a volunteer board, rather than corporate office appointees. To that end, members feel much more comfortable talking to their credit union about payment options and services. It is much easier to talk to someone when you feel like they genuinely have your best interest at heart. In addition, Oak Tree seamlessly integrates your credit union forms into your data processing system with Data Linking, allowing for faster loan processing, and saving your members time.

4. Educational Resources Your credit union may have a resource center, which serves to educate your members on different finance options, financial products, and bank accounts they may have. Utilizing this resource can aid members in making a decision that best suits their needs when it comes time to secure a loan or otherwise. In addition, your credit union will probably go the extra mile, being a member-driven financial service institution. For instance, the credit union may determine the value of a vehicle so the member feels good about the loan before applying. Since the credit union is nonprofit, their answers are unbiased, so members know the credit union is not trying to inflate or deflate the value of the vehicle to stick them with a higher-rate loan. Oak Tree also offers training so your credit union staff is ready to use our forms and help members obtain the best loan.

5. No Selling Since they are nonprofit, credit unions essentially work for you. There is no incentive for them to sell you any new product or service. All profits generated by the credit unions go back to members, showing up in lower interest rates or new financial products, like different savings account loan options. This makes it easy to find a credit union that meets your needs. This, in addition to a faster loan processor, will lead to word of mouth from happy members.

Now you can put a bug in your member’s ear so to speak, the next time the subject of lending comes up. Use these 5 tips to promote yourself. Of course, Oak Tree will stand ready as your forms provider. The friendly, consistent, and trustworthy nature of your credit union, coupled with our compliant lending forms, will ensure that your members have a great borrowing experience. Members will be glad they made the switch!

3 Big Bank vs. Credit Union Differences

3 Big Bank vs. Credit Union Differences

Oak Tree is more than just a “vendor” to the credit unions we work with, we think of ourselves as partners. We work closely with the credit unions across America because we are a part of the Credit Union Community. Because of this affinity, we tend to help the credit union movement and talk about how credit unions can be a better choice for your financial institution choices. We have looked at the question of why people would throw their money away with a bank, but now we just wanted to put out the 3 big bank vs. credit union differences we think help differentiate these institutions.

Credit unions and banks offer similar services: they accept deposits into checking (Share Draft Accounts for credit unions) and savings (Share Accounts for credit unions) accounts, and make loans. However, the structure of these two financial institutions is very different. There are three main areas that banks and credit unions that vary greatly: Ownership, profit, and service.

Who’s in Charge Around Here?

You’re in charge!  Well, at least if you’re part of a credit union, that is. Credit unions run on a democratic voting system—one member has one vote. For credit unions, it doesn’t matter how much money you have in your checking and savings account. As long as you belong to the credit union, you have an equal say in how things operate. In addition, individuals on the board of directors are all volunteers, are elected by the members, and are not paid. Any member of the credit union can run to become a board member. On the other hand, banks are run mostly by a paid board of directors.  Board members are elected by shareholders. The more shares an individual has, the greater their voting power is, and the more “say” they have in how the bank operates.

For-Profit or Not for Profit?

This one is simple. Credit unions are not-for-profit, while banks are for profit. Banks exist to earn profits for their shareholders. Because credit unions are not-for-profit, their earnings are passed on to their members by offering low-interest rates on loans, and higher-paid interest rates on saving accounts. In some instances, credit unions will offer free checking accounts. This profit orientation affects the type of loans and services that each financial institution offers.

Service Comes First

Credit unions mainly serve at the community level, which allows them to be more “in-tune” with their members’ needs. In addition, they serve those belonging to similar organizations, such as teachers, firefighters, airlines, universities, etc.

By having members with common interests, credit unions have a better understanding of the wants and needs of their members, and therefore can better serve their interests. In addition, their size allows members to get to know the employees who work there, and members build important relationships that are beneficial when it comes time to apply for a loan. Credit unions are also part of a cooperative, which allows them to share resources with other credit unions, such as shared ATM network branching (allowing members to withdraw from other credit unions’ ATMs), and much, much more.

After comparing these two financial institutions, it is clear to see that the credit union’s mission is to better serve members and to improve members’ financial lives. Credit union members have reached a new high of over 122.3 million members in the United States as of 2020. By giving members the financial services that they really need, this number is certain to continue to rise as the beneficial reputation of credit unions continues to spread. Besides these 3 big bank vs. credit union differences, what other key differences helped you choose a cu over a bank?

Credit Union Compliance Keep Your Guard Up

Credit Union Compliance Keep Your Guard Up

As dry subjects go, there aren’t many topics arider than regulatory compliance. It’s virtually the Mojave Desert of subject matter. Just like a real desert, though, it isn’t wise to try to navigate the compliance landscape without knowing what you’re doing or where you’re going. When it comes to Credit Union Compliance Keep Your Guard Up!

The unprecedented volume of regulatory changes that were generated during the past decade has financial institutions of all types looking for a break in the action, for a chance to get their bearings. So, when serious talk of regulatory relief holds out hope that help may be forthcoming, it’s only natural for those shouldering the burden to breathe a sigh of relief, and to take time to attend to other matters. However, just because efforts are underway to ease the regulatory load, it’s not the time for credit unions to drop their guard.

Between the alphabet soup of federal regulations overseen by the CFPB and the regulations issued by the NCUA and other state and federal regulators, credit unions are subject to dozens of complex regulatory requirements that are designed to shape the way they conduct business. The federal Truth in Lending Act and Equal Credit Opportunity Act, together with the CFPB’s Regulations Z and B, are just a few of the regulations that dictate how credit unions meet their members’ credit needs. As for share accounts and other deposit products, the federal Expedited Funds Availability Act and the federal Truth in Savings Act have given us Regulation CC and the NCUA regulations in 12 C.F.R. Part 707, and the Electronic Fund Transfer Act has spawned Regulation E. Of course, there’s also the federal Bank Secrecy Act, the Flood Disaster Protection Act, and the SAFE Act, all of which have been implemented through NCUA regulations. Other NCUA regulations govern business operations and naturally, state laws and regulations are also in the mix. Together, these laws and regulations create a complex web of requirements that must be taken into account by credit unions to effectively manage both operational and reputation risk, and to safeguard against potentially costly civil liability.

Over time, each credit union has developed a variety of policies, procedures, systems, and tools that establish the framework for the way that credit union does its business. Whether developed in response to regulatory changes, business objectives, or as new products have been added to the mix, this “compliance management system” (CMS) is itself a system that needs monitoring. To better manage the compliance risks that every credit union faces, senior management and the credit union’s board of directors must periodically revisit each of the policies and procedures that comprise that credit union’s unique CMS. Just another way for Credit Union Compliance, Keep Your Guard Up!

To think of it another way, if each credit union is a dynamic and evolving operation, then it only makes sense that the CMS policies and procedures that guide that credit union’s day-to-day operations must also adapt and change over time to ensure they remain appropriate for the way that credit union conducts its business. Compliance violations happen, and stale policies and procedures are often the culprits. There’s no getting around the fact that when employees focus on the day-to-day business of running the credit union – making loans to members, assisting them with their share accounts, and providing the ever-expanding range of financial products that seem to develop overnight – every employee is constantly making real-time decisions about what to do and how to do it.

Although wandering off the path of strict compliance is rarely a conscious decision, without careful consideration of the compliance implications of a particular process or procedure, what may seem like an expedient solution to a day-to-day operational problem may turn out to be a shortcut to a compliance violation. Like an impulsive decision to leave the trail on a desert hike, not understanding the compliance implications of a policy change or an adjustment to a longstanding procedure can be fraught with risk. This common dilemma, faced by credit unions and financial institutions of all sizes and types, has been the subject of recent efforts by the Federal Government to stay abreast of the changing compliance landscape.

Evaluating Compliance Risk

As part of a joint project with other federal financial regulators under the auspices of the Federal Financial Institutions Examination Council (FFIEC), the NCUA released Supervisory Letter No. 17-01, Evaluating Compliance Risk – Updated Compliance Risk Indicators. It discusses the recently updated criteria that NCUA examiners will use when assessing how well a credit union meets its compliance obligations. The updated list of compliance risk indicators makes it clear that regulators will be looking not only for compliance with specific regulations but also at the overall effectiveness of each credit union’s compliance management system. Examiners assessing compliance risk will evaluate each credit union’s CMS with respect to: 

• Oversight Commitment – How well do the credit union’s management and board of directors understands all aspects of compliance risk; and how strong a commitment do they show to providing sufficient compliance resources, staff, and training to ensure that the credit union will meet its due diligence obligations?
• Change Management – How well does the credit union’s management anticipate and respond to changes in applicable laws and regulations; how well does it react to changes in market conditions; and how thoroughly does it consider compliance implications when it implements changes to its products and services?
• Comprehension, Identification, and Management of Risk – Does the credit union have a strong culture of compliance management designed to minimize the likelihood of serious compliance violations; does management effectively identify compliance risks posed by the credit union’s products, services, and other activities; and does management effectively manage those risks through comprehensive self-assessments?
• Corrective Action and Self-Identification – Does the credit union proactively identify and promptly respond to compliance risk management deficiencies and violations of laws and regulations, including taking corrective action?

Key Factors in Evaluating Compliance Risk

The Supervisory Letter outlines other key factors that examiners will look at when evaluating a credit union’s compliance program: 

• Policies and Procedures – Are the credit union’s compliance policies and procedures and third-party relationship management programs adequate to manage the compliance risk posed by the credit union’s products such as forms and disclosures, services, and activities?
• Training – Does the credit union’s compliance training adequately outline staff responsibilities, and is training provided in a timely manner in connection with changes in laws and regulations and the rollout of new products and services?
• Monitoring and/or Audit – Are the credit union’s compliance monitoring practices, management information systems, reporting, compliance audit, and internal control systems adequate to address compliance risks throughout the credit union?
• Consumer Complaint Response – Are the credit union’s processes and procedures for addressing and monitoring consumer complaints adequate, and does the credit union conduct consumer complaint investigations promptly and thoroughly?

Examiners will also determine the extent to which compliance violations result in harm to consumers. Compliance violations will be evaluated in terms of: 

• Root Cause – To what extent are violations the result of weaknesses or deficiencies in the credit union’s CMS?
• Severity – Do the violations cause serious and considerable harm to consumers?
• Duration – How extensive is the time frame during which a violation occurred?
• Pervasiveness – How widespread and numerous are the violations?

Effective March 31, 2017, the FFIEC updated its Uniform Interagency Consumer Compliance Rating System. The five-level rating system that has long been used to rank a credit union’s compliance with consumer compliance regulations evaluates three broad categories, the first two of which are focused on the credit union’s CMS: 

• Board and Management Oversight
• Compliance Program; and
• Violations of Law and Consumer Harm

The consumer compliance rating (CC Rating) that a credit union receives is a critical measure of that credit union’s health. Compliance is measured on a scale of 1 to 5, with a CC Rating of 1 being the most coveted. A poor rating in the 3 to 5 range is a red flag that will not be ignored and will result in a credit union having to expend considerable time, effort, and resources taking the necessary measures to correct the problems revealed by the examination. Obviously, this renewed emphasis on compliance by federal regulators means that any efforts that a credit union takes to identify and correct compliance issues in advance of a consumer compliance examination will be beneficial. But waiting until an examination has been announced may be too late to do anything about it. The best approach is to instill a culture of self-assessment and to regularly evaluate each of the credit union’s products, policies, procedures, and processes for compliance. Like being properly prepared for a hike through the desert, it only makes good sense.

Credit Union Compliance, Keep Your Guard Up!

Take advantage of Oak Tree compliant forms and obtain compliance support for your credit union. Remember when it comes to Credit Union Compliance, Keep Your Guard Up! You don’t have to do it alone.

(note: this is an older blog entry and has been edited since originally posted.)

5 Types Found at Credit Union Events

5 Types Found at Credit Union Events

It’s clear that events are a colossal part of the credit union industry. From community credit union outings, local chapter meetings, annual league meetings, national conferences, technology symposiums, and international training events, there always seems to be an event happening in the credit union world. We know there are more than 5 types found at Credit Union Events, but there are some we see at all events.

It’s important to attend events to stay up to date with credit union industry news, regulations, and be aware of challenges other credit unions have faced, and how they have overcome these hurdles. In addition, it is a great opportunity to come together and share ideas with other industry leaders. Events are also a great way to meet with vendors and to learn about new technology that may benefit your credit union by saving time and money, like the credit union forms solutions from Oak Tree Business Systems, Inc. With all the commotion going on, it may be hard to filter out what events are worthwhile and which ones can be skipped. After asking credit union executives, Oak Tree has provided some guidance on how to select an event to attend.

The two biggest factors for deciding what event(s) to attend were the price of the event and the topics covered. Attending any event has a cost associated, so it is important to know ahead of time what budget your credit union has to spend on such events. Not to mention your valuable time out of the office must produce results upon your return to the office. Here is a tip; most credit union events will have scholarships that you might be eligible to procure. So, be sure to read all the event details or ask the event coordinator if they offer any scholarship options. As far as the topics covered, most large events will have an agenda posted prior to the event that will list the overall focus of the meeting, who will be speaking, if sponsors/vendors will be there, and who those sponsors are. This agenda is a great way to gauge if you will truly benefit by attending, as it will let you know if there will be training, hands-on experience with the systems or technology, compliance updates, or networking opportunities.

The date and location of the events are the next factors to keep in mind when determining what event to attend. Travel, hotel, and time spent outside of the office can add extra cost to attending an event. If your budget is small, travel may not be an option. Instead, research your local league or chapter website to see what is happening near you. These websites may also have useful webinar training links available. The length of the event, as well as time of year, is also important to consider. Even a great event may conflict with important deadlines at your credit union. If there is a conflict, there may be other options to still learn about the topics covered, such as downloadable worksheets, the podcast of the event speakers, or even a second date/location of the same event.

Five different types of people at credit union events

1. The Networker: He or she always has a business card handy and ready. The Networker is on the lookout to meet someone new to engage in an insightful conversation about what is going on around him or her in the credit union industry. 
2. The #SocialMedia Guru: The Social Media Guru always has their phone handy, taking pictures for social media. He or she is taking advantage of the conference/event hashtags in their social media updates and is sharing photos with their coworkers back home. If the event has an app, he or she definitely has it downloaded and in full use. @OTBS_CUforms 
3. The Question Asker: He or she is hungry to know more about the topic at hand. They have many questions and are not afraid to ask. The Question Asker came to the event with a purpose, and the purpose is to learn! Nothing is going to stop him or her from inquiring about a question they need to know the answer to.
4. The Quiet One: He or she is quiet, but this does not mean that they are not fully engaged in what is going on. The Quiet One is silently thinking and absorbing all of the information that is presented to him or her at a conference or event. It will be the quiet one who applies the information back at the office that will positively affect your credit union.
5. The Booth Visitor: Whether he or she is collecting the free handouts at the booths or trying to learn about new businesses/technology, this person is sure to stop at all and any vendor booth.

What is your biggest state event? Comment to let us know.

Checklist for Credit Union Compliance

It takes work to keep your credit union in compliance. It’s not easy, but there are a few basic things you can do. Read over our checklist and make sure you have these items covered. This will go a long way toward keeping you in compliance and out of the crosshairs of a potential regulatory audit, or other adverse events. Of course, there are so many things that come into play when keeping your credit union compliant, but this quick checklist for credit union compliance gives a good generalized overview.

Stay Current.

Make sure you stay in the loop regarding regulatory changes and other similar occurrences. Most vendors have websites devoted solely to timely information updates; and regulatory agencies such as the NCUA, Federal Reserve, Federal Financial Institutions Examine Council (FFIEC), and Consumer Financial Protection Bureau provide white papers and summaries to give perspective on updated laws and regulations. These help you stay up to date and informed.

Audit & Review Yourself.

Make sure you have a mechanism in place to review and audit your policies and procedures. The best way to think of these is as follows: they are always a work in progress. They should regularly be reviewed and tested to find shortcomings or problems that might be hidden from view.

Be Proactive.

Learn to anticipate regulatory changes. This is best accomplished by studying trends, and observing how other regulatory professionals in your industry are reacting. Speculate using past and current regulatory trends, then take all of this information and extrapolate a conclusion based on the inferences and present regulatory situation. Usually, you can align facts with trends to determine what will most naturally be the next course of action, and begin to position yourself accordingly.

Be Consistent.

Make sure you have a mechanism in place to maintain all current programs. This means reports should be submitted on a regular basis, updates should be regularly given, budgets should be maintained, and a plan for training staff should also be in the works. Oak Tree forms fit nicely into this category. All of our forms packages are kept current and up to date, providing you with the security and peace of mind needed to focus on other compliance issues.

Use the tips above as general guidelines. They are helpful with regard to perspective, and provide a broad-brush approach, allowing you to hone in on specifics as they relate to your institution.

Finally, if you are a compliance officer, set up a process for auditing yourself. This can be vital in preventing problematic instances in the long run. Maintaining compliance is a key part of credit union operation and management. It is a tough job with no guidebook or definitive set of rules. It takes everyone working together to ensure compliance is met and maintained. It is an ongoing necessity that must be upheld to meet members’ needs. We hope these tips and checklist for credit union compliance comes in handy for your credit union. Take advantage of Oak Tree compliant forms and obtain compliance support for your credit union.

CU Events Roundup Apr 9, 2021

Welcome to this week’s CU Events Roundup for Apr 9, 2021, where we will look at the Credit Union community and bring up some of the events we see going on. Oak Tree loves keeping tabs and participating in these credit union events. Please let us know if we missed out on yours and we’ll be sure to help promote it. We signed up for the Sactown, see below for more info on this.

This Week’s Events

April has often been the busiest of months for us in the credit union industry when it comes to conventions and events. This year it has been a bit difficult to keep up with all the changes, but here is a few of the events we’ve been able to track.

Hawaii Credit Union League’s 82nd Convention

Hawaii CU League went with “Renewed Commitment” for their 2021 virtual event. The HCUL looks to have lined up some great speakers and interesting discussions. Granted, we all have to agree having an excuse to visit Hawaii makes us really hope that 2022 is a live event again.

Cornerstone League’s Annual Meeting

Cornerstone has long operated as a membership and trade association for the credit unions located in Arkansas, Oklahoma, and Texas. They are at the tail-end of their Annual Meeting as this is being published. We can’t wait to hear more about how the event went! They had Sarah Thomas as their featured keynote, and we have to imagine it was very inspirational.

SacTown 5k Run

We also wanted to bring up how we are participating in this year’s Credit Union SACTOWN Virtual 5k. The event starts tomorrow and ends on the 20th, if you have not signed up now you have until the 19th as a last chance entry date. They are allowing participants to do more than just running, so that’s great for those of us who tend to avoid running. Be sure to check out the Sacramento Running Association and remember that 100% of the funds go to benefit the Children Miracle Network Hospitals in California and Nevada. Thank you to the California Credit Union League and the Nevada Credit Union League for all you do as well!

Next Week’s Events

Utah CU Association Annual Meeting & Convention

Utah’s Credit Unions will be coming together online as their 2021 annual meeting is going virtual. We see a bunch of great speakers from the credit union community! Remember, let us know about your annual meetings or conventions and we’ll be sure to help get the word out!! And we’re always on social media ready to engage with you about whatever you want to discuss! They have the speakers and other information posted.

Coming Soon

PSCU Virtual Member Forum is going virtual on April 20th.

The Ohio Credit Union League usually has their inVest48 event around this time, but don’t worry — we saw they have it in May this year!

Speaking of events moving to later in the year, we saw that the NCPCU is doing their Strategy Summit in October this year.

That will do it for the CU Events Roundup on Apr 9, 2021. We hope you like this feature and we look forward to seeing how it can grow moving forward. If your credit union, credit union league, or credit union chapter has a big event coming up — drop us a comment or hit us up on social media.

How Charity Helps Your Credit Union

There is no question that donating and being active in the community helps brand awareness and image. In the case of credit unions, it goes deeper than that since institutions are heavily centered on members. This is why it is important to maintain a positive presence in the community. Considering a majority of your members make up that population and have come to expect nothing but the best. There are articles helping spread the word on how charities help your credit union and it makes great press!

Being active with your community and your members takes on many different forms. We see credit unions do anything from present checks to organizations, sponsor events, have fundraisers, and even donate to their members directly through contests and giveaways. Simply being aware of community events and causes is a great way to start planning a charity campaign. Take notice of the types of activities your members are involved with and develop ways to cater to them. There is no shortage of ways to show you care about your community and it is all up to your institution to find a way to do so.

With that being said, your efforts do not go unnoticed. Your members appreciate being taken care of and your community will see the benefits of your support. After all, the whole point of doing charitable work is to create a better environment and to help people. Show them what the credit union difference is, and remind them of why they chose to bank with a credit union in the first place. Also, when you create a positive image for your credit union it opens the door for other opportunities. Not only do you get the satisfaction of doing something positive, but you also get the added benefit of people wanting to share your kind actions. This can develop into a great marketing strategy for social media platforms and other outlets.

Even Credit Union Vendors Participate

At Oak Tree, we encourage your credit union to give back as much as they can to help maintain a positive image and to keep members happy. We love to see the awesome things going on in the credit union community every day and are always looking for a feel-good story. We love acts of charity so much that we write about them in our weekly Humanitarian Highlight blogs on our website. Check them out to see all of the great things happening in the credit union world, and hopefully, we can feature you next!

Speaking of charity and the credit union community, we also wanted to remind you how this weekend begins the SacTown Virtual Run for 2021, a great cause to help the Children’s Miracle Network of Hospitals.

If you have questions about any of our products, feel free to send us a message at ClientServices@oaktreebiz.com.

CU Events Roundup Apr 2, 2021

Welcome to this week’s CU Events Roundup for Apr 2, 2021, where we will look at the Credit Union community and bring up some of the events we see going on. Oak Tree loves keeping tabs and participating in these credit union events. For CU Events Roundup Apr 2, 2021, we don’t have much outside of the upcoming events.

We are hopefully on the tail end of this pandemic that has disrupted so much, including the events that we often participate in for our industry. We know that there are some “LIVE” events coming up soon, as well as at least one Virtual/Live event. Stay tuned on those and more.

We saw there were a lot of schools and training that went virtual this week, but we’re a bit dry on any annual meetings or big conventions. Please let us know if we missed out on yours and we’ll be sure to help promote it. We signed up for the Sactown, see below for more info on this.

Next Week’s Events

Cornerstone League’s Annual Meeting

Cornerstone has long operated as a membership and trade association for the credit unions located in Arkansas, Oklahoma, and Texas. They are having their Annual Meeting next week, April 8-9. Is your credit union participating?

SacTown 5k Run

We also wanted to bring up how we are participating in this year’s Credit Union SACTOWN Virtual 5k. The event starts April 10th and ends on the 20th, if you have not signed up now you have until the 19th as a last chance entry date. They are allowing participants to do more than just running, so that’s great for those of us who tend to avoid running. Be sure to check out the Sacramento Running Association and remember that 100% of the funds go to benefit the Children Miracle Network Hospitals in California and Nevada. Thank you to the California Credit Union League and the Nevada Credit Union League for all you do as well!

Coming Soon

Utah CU Association Annual Meeting & Convention looks to be going virtual on April 15th.

PSCU Virtual Member Forum is going virtual on April 20th.

The Ohio Credit Union League usually has their inVest48 event around this time, but don’t worry — we saw they have it in May this year!

Speaking of events moving to later in the year, we saw that the NCPCU is doing their Strategy Summit in October this year.

That will do it for CU Events Roundup Apr 2, 2021.

We hope you like this feature and we look forward to seeing how it can grow moving forward. If your credit union, credit union league, or credit union chapter has a big event coming up — drop us a comment or hit us up on social media.

SacTown Virtual Run 2021

When Covid hit last year we saw a lot of our favorite events end up being canceled, and as time went on we in the credit union industry found new ways to adapt to the “New Normal”. We have seen many annual events go virtual as well as many credit union conventions and conferences as well. This year the Sacramento Running Association is hosting their SacTown Virtual Run 2021 as a Virtual 5k and we are once again a proud supporter for this great cause.

They are allowing the runners to be more than just runners as they can participate in a myriad of ways. It is a great way to help raise money for the Children’s Miracle Network of Hospitals and you should really sign up today as the event is coming up very soon!

All of the money raised goes to the hospitals and our money is going to help the Children’s Hospital Orange County (CHOC), a great charity that many in our organization have long great histories with. They are busy every day helping kids of all ages with problems, such as Hudson. Hudson was only 15 months old when he was first diagnosed with kidney cancer. He then went through a surgery to remove the tumor and a kidney. The brave child then endured 6 months of chemotherapy. Today he is seven years cancer-free! It is hard enough for adults in battling cancer, but it has to be even more difficult for a child to be brave in such situations.

That is why we are so proud to help this organization and the charity. Once again, be sure to check out the run and sign up!

CU Events Roundup Mar 26, 2021

Welcome to this week’s CU Events Roundup for Mar. 26, 2021, where we will look at the Credit Union community and bring up some of the events we see going on. Oak Tree loves keeping tabs and participating in these credit union events.

We are hopefully on the tail end of this pandemic that has disrupted so much, including the events that we often participate in for our industry. We know that there are some “LIVE” events coming up soon, as well as at least one Virtual/Live event. Stay tuned on those and more. Let’s look at CU Events Roundup Mar 26, 2021.

This Past Week

CUNA Marketing & Business Development Council Virtual Conference

This past week was the big Marketing and Business Development Council Conference put on by CUNA. They held 13 sessions over three days to help their council members. If you were a part of it, let us know how it went!

NAFCU Virtual Regulatory Compliance School

NAFCU Virtual Regulatory Compliance School is wrapping up today and that means there are a bunch of upcoming Compliance Officers in the credit union field. I hope they all know how much Oak Tree puts importance on compliance for credit unions!

Next Week’s Events

We saw online at 10times that NACUSO Network Conference was supposed to take place at the end of March, but it looks like they rescheduled this for a live event in November. So who is ready to go to Las Vegas in November? We might have to check this event out!

Coming Soon

School of Business Lending™ II: Financial Analysis and Diagnostic Assessment put on CUES next week, it will be virtual.

The Ohio Credit Union League usually has their inVest48 event around this time, but don’t worry — we saw they have it in May this year!

Speaking of events moving to later in the year, we saw that the NCPCU is doing their Strategy Summit in October this year.

That will do it for CU Events Roundup Mar 26, 2021.

We hope you like this feature and we look forward to seeing how it can grow moving forward. If your credit union, credit union league, or credit union chapter has a big event coming up — drop us a comment or hit us up on social media.

Want to Be the New CEO of a Credit Union?

Have you ever wondered what it takes to be a qualified chief executive officer (CEO)? The simple answer is that it takes a lot. At the top of the list are schooling, confidence, determination, and work experience to accomplish the ultimate goal. Do you want to be the new CEO of a credit union?

Let’s first lay out what a CEO does.

A CEO’s role is regarded as one of the highest-ranking positions in a corporation. This entails making top managerial decisions. They manage the company’s success and avoid failures. They are able to take on the complex challenges a credit union faces while being on high alert about what is going on in the industry. Also having an open eye for any opportunities that will tend to change helps.

How does that sound to you?

The transition from a regular job to a higher position can be a shock factor due to the many responsibilities the role entails. It is always smart to learn and absorb as much information as possible before taking the next big step. Looking at it from another perspective, being in a high position also comes with the cost of making sure that you are taking the right steps to ensure that the credit union you are leading will be successful. The role comes with a lot of responsibilities that include travel, representation of the company (looking presentable), and being confident in speaking to many people within the company and at events.

How can I feel more confident in an upper managerial position?

Advice that we can give to anyone in the stage of wanting to change their position, is to learn as much as they can from the CEO. Ask to attend events, meetings, and interviews to see what kind of language is used and how to interact with different people.

You got this! Don’t let anyone stop you from achieving this goal! Work hard and know that hard work pays off.

A note from Richard Gallagher, CEO of Oak Tree Business Systems.

“From the beginning of my career, I have worked my way up to the CEO position by working hard and learning as much as I could about the credit union industry. I have made my way up and have always had set goals of where I wanted to end up and wanted to accomplish. Coming in as the new CEO of Oak Tree Business Systems, I had a fresh mind and a new set of ideas to get the ball rolling. With my extensive background, I am thankful for all of the past work experiences I had to help me achieve a successful career. From where I am today, I look back at myself and would give myself a hand on the back for never giving up and always striving for greatness. There was a time in my position where I had an itch to travel all over the U.S. to talk to our clients and potential prospects for a way to introduce myself but to also get my name out there. I strive to always think of solutions and talk to fellow credit union families about what forms and disclosures they are lacking in their establishment.

Advice that I can give to future CEOs is to always want to learn. Be the first one at the meeting and the last one to leave. Get your name out there. Learn about every nook and cranny of the credit union industry. LEARN EVERYONE’S NAME! Be friendly and be present.”

Time to ask yourself if you want to be the new CEO of a credit union and if you are ready to do what needs to be done in this pursuit.

On another note, Oak Tree continually refines its loan forms system to provide the best combination of compliance, practicality, and contemporary design. Oak Tree is committed to each individual credit union to work on your behalf in designing, producing, and supporting an effective lending system. We are fast, efficient, knowledgeable, mindful of costs, and dedicated to the credit union industry. Of specific interest is the continuing training and support we provide. You will have unlimited, free telephonic support in addition to our on-site activities. When you call Oak Tree, you always get real, live, knowledgeable people who will help solve your problems. Just like a CEO advocating for their institution, we got you covered!

CU Events Roundup Mar 19, 2021

CU Events Roundup

Welcome to this week’s CU Events Roundup for Mar. 19, 2021, where we will look at the Credit Union community and bring up some of the events we see going on. We love keeping tabs and participating in these credit union events. CU Events Roundup Mar 19, 2021.

We are hopefully on the tail end of this pandemic that has disrupted so much, including the events that we often participate in for our industry.

Louisiana’s Credit Union Connect

An annual event we like to keep up on and try to help out is the Credit Union Connect put on by the Louisiana Credit Union League and it is often around this time. Turns out it has been canceled for 2021, but we look forward to its return in 2022!

Check out their site for other upcoming events, though — including their 2021 Louisiana GAC.

This Past Week’s Events

There were a lot of roundtable discussions and annual meetings, so we can’t keep track of them all — but feel free to let us know how your Credit Union’s Annual Meeting or event went in the comments or our social media. We love engaging with credit unions!

Did you see that the NAFCU held their Annual Regulatory Compliance School event as a virtual event, did you participate?

Not exactly “credit union” related, but how was your St. Patrick’s Day? Did your credit union do anything special?

Next Week’s Events

Next week it looks like there will be the CUNA Marketing & Business Development Council as a Virtual Conference, will you be participating? You know how much Oak Tree values marketing, and we know your credit union will only see its membership rosters grow with the right credit union marketing and the best credit union forms!

Coming Soon

Houston’s Credit Unions will soon be hosting their March Chapter Meeting, are you attending?

That does it for CU Events Roundup on Mar 19, 2021. We hope you like this feature and we look forward to seeing how it can grow moving forward. If your credit union, credit union league, or credit union chapter has a big event coming up — drop us a comment or hit us up on social media.

Credit Unions vs. Banks

Why Would People Throw Money Away with Banks Instead of Investing in a Credit Union?

Credit Unions vs. Banks

It can be in search of a checking account, a savings account, or a loan (such as that first mortgage) that drives a person to sign up for their first account at a financial institution, and oftentimes they go straight to the big banks, not knowing the cost of admission beyond the extremely effective advertising campaigns. Big banks are successful because they make so much revenue off of their customers. Oftentimes, friends and family members will be seen and heard complaining or struggling with high fees and monthly service charges, and more and more with no known recourse, and having to accept that this is part of the financial journey! Let’s look more into the differences between credit unions vs. banks.

Credit Unions and Loans

One of the first loans that most people tend to go for is the auto loan, and as a credit union, you can be that first direct or private party loan for a member. It would seem that a person seeking a loan for a car is more inclined to accept whatever loan they get from the dealer, but oftentimes, that is just as wasteful as getting a loan from a bank. A member of a credit union is often more likely to find better rates and acceptance for loans from their credit union, and that can save a lot of money on interest, fees, and other charges. Since members are not only customers but owners vested in the growing concern of the credit union, it means they are investing in their own “business.”

Credit unions are more likely to take a risk for a loan with a member than a bank would be with a customer. This is why many would be willing to say that it is easier to get approved for a loan with a credit union than a bank. For auto loans, we have seen a rise in auto lenders undercutting the banks and credit unions, but an auto loan with a credit union comes with other benefits that are more than just purchasing a car for an impossibly low rate. It builds a relationship with that credit union, and when members are ready for their next credit card, mortgage, or business loan this can be all the difference in getting the loan.

A major focus of a credit union is to provide essential services and lending opportunities when your members need it most. As great as credit unions are with benefits and consistently low rates, it is almost impossible to operate without any revenue when providing unbeatable rates 24/7/365. This means that strategizing lending rate drops and promotional loans, home equity lines, and other services are essential to provide members with outstanding opportunities, keep up the revenue stream, and propel the credit union into the future! Strategy for promotional efforts can depend heavily on your field of membership, and when you analyze lending spikes! For example, some credit unions might see higher auto lending applications around Memorial Day in their communities. Or you can provide great consumer lending rates during the holidays!

Credit Union Members

Finding opportunities to connect with your members and provide the best services at the best rates at the best times is what makes the credit union difference, and drives trust and loyalty! Especially since most, if not all credit unions, tend to work off of the “3 Stakeholder Rule.” They are the members, the employees, and the credit union that they are concerned with, and many have learned that the more they look to the needs and wants of the employees and members, then the credit union’s growing concern will be met. Banks tend to focus on the bottom line, and not so much on the people they employ or service.

Oak Tree keeps credit unions compliant and connected to their community growth through compliant forms and documents and many other services! Browse our products today and start expanding your services and membership. When we originally posted the credit unions vs. banks infographic it was well-received, we only ask that you credit us when sharing, and please don’t crop out our logo.

Don’t Get Left Behind in 2021

Have you and your #CUteam reflected back on the year 2020? If so, are you pleased with your marketing efforts and ROI? Or, is there room for improvement? If you’re like us, you know there is always room for improvement! When it comes to marketing, there is also room for innovation and creativity as to how you will get your credit union’s message and services out to your current and potential members. Don’t get left behind in 2021!

Innovation is what marketing thrives on and within the credit union industry, you and your team have ample resources to ensure that your strategy for the remainder of the year, will be successful. Oak Tree is here to guide you and your CU on how to be innovative and remain ahead of the game. When it comes to the financial industry, it is hard to be “unique.” With your competitors offering relatively similar products and services, standing out can be challenging. The following tips and suggestions can help your CU marketing team gain some leverage in an attempt to stand out from the rest.

Going mobile with your financial product marketing initiatives

You may have noticed, with the year we had in 2020, digital marketing is where the future of marketing will continue to go, and where your CU should focus its efforts. Going mobile with your CUs products and services while offering your members a seamless digital experience is where your CU can stand out. Doing business on the go is what your users are accustomed to, in fact, new research has found that we’re spending five hours a day on mobile devices, and 90 percent of our mobile time is spent using native apps. This means any marketing plans for your CU must include a heavy focus on mobile marketing, by ensuring there is a CTA (call to action), making sure any sign-up forms are short and easy to complete, and you have a solid and easy-to-read design layout. Your mobile marketing is about acquiring engagement and getting your brand out there. Making a sale is just the cherry on top.

Creating educational content

Creating educational content that revolves around your products and services will be very beneficial for your current and potential members. Making the content clear and easy to understand, for someone who may not have prior knowledge about finances should be your CU’s first step. According to a recent study, 45% of Millennials want financial products and services that help them with their budgets. Furnishing something that could assist users with budget-related issues that lead to solutions would set your CU apart from others, as well. Setting up a chatbot on your site that is available 24/7 to your users will also put you ahead of the curve while taking care of your members at the same time. People want instant answers and useful information, and you can give it to them!

Humanize your credit union through social media

As mentioned, social media and digital marketing are where your CUs efforts should lie. Credit unions are built on the relationships they have with their members and their ties within the communities they serve. Showcasing all the good your credit union does on your social media channels is a great marketing tool. Social media can provide a perfect medium to show the community that your CU is trustworthy, and it is a great way to humanize your credit union’s brand. Allowing your credit union to open up on social media also gives you an advantage if any negative feedback comes in, you can be sure to be on top of it. Connecting with the community bolsters your brand and tells your credit union’s story that could otherwise be left untold!

Don’t get left behind in 2021, Oak Tree can help your credit union lock down your 2021 marketing strategy, and we have all the best tools to help you analyze, plan, and optimize while bringing that strategy to life. Contact us for a free consultation!

New Year, New Trends

2020 was quite a year, right? So many changes presented themselves and we all had to learn what it truly means to be resilient. Credit unions everywhere faced new challenges and had to quickly adapt and think fast when it came to helping their members. Not only that but the way we market had to also take a quick turn to all digital platforms. In this marketing corner, we will discuss what your credit union can expect when it comes to marketing and best practices in 2021. It’s a new year and so new trends come into play.

BE TRULY ADAPTABLE. As we all saw, things can quickly change at the drop of a hat. While in the marketing profession, most of us are used to things changing quickly, and we must continue to prepare in advance. This means, don’t just wait until something falls in your lap before addressing the situation. Go looking for the disruptions! By doing that, you can ensure your team and CU can be actively prepared for anything in the foreseeable future. We all know that marketing means always adapting – and with the year we had, going into 2021 – just remember to continuously listen to your members and keep an open line of communication.

TAKE ON DIGITAL TRANSFORMATION. If 2020 gave us an insight into the future, it’s that we must be pushing for digital. According to Global Marketing Alliance, in 2020, investments in paid, owned, and earned digital channels now account for almost 80% of multichannel budgets, with digital advertising and search advertising taking nearly a quarter (22%), with social marketing (11.3%) and website (10.4%) topping the list. The change we are seeing when it comes to going digital is something that is likely to be permanent going forward. If your CU is not on all the possible digital channels, you are missing an opportunity to reach your members and potential members.

INCORPORATE OLD WAYS. While the New Year starts to unwind, some of our old values and ways of doing things will eventually return. Being able to incorporate old marketing tools with new and digital ones will be very beneficial for your CU. The future of marketing will fall within traditional and new, and effective ways of marketing. While some of your members may be ready to return to doing business in-branch, a lot of members will still be wary of doing so for some time to come. Being able to accommodate all members is what will make your CU stand out from the rest. Giving members the relationship that comes with banking with a CU through digital platforms is not always easy, but hopefully, with a good marketing team to back you up, it’s possible! The new normal for CU’s will be taking on a balance of both marketing worlds.

While there are sure to be other trends that may be predictable or unpredictable once we arrive in 2021, one thing that will always remain the same is Oak Tree’s ability to be there for your CU! With over 37 years of experience in the credit union industry, we can help make sure your CU’s marketing goals are being reached and you are staying ahead of the race. Our marketing services department is standing by to answer any questions you may have! If you would like more information about our custom marketing services, feel free to chat with us at MarketingServices@OakTreeBiz.com. 

Navigating Current Lending Trends

Navigating Current Lending Trends for Growth and Compliance

Following current lending, trends can boost loan applications and approvals. It can also spark new partnerships and provide a competitive edge in a volatile market. Let’s look at navigating current lending trends for growth and compliance; and how they can help your credit union grow.

How do I encourage membership growth?

CUs generally have lower loan rates, higher rates on savings and investment accounts, and fewer fees. While credit unions focus on securing memberships from younger generations, it’s important not to discount lending to small and mid-size businesses.

Due to economic uncertainty, small business owners are forced to seek online lending options. Online lenders are dominating the market with higher percentage approvals and quick funding.

Small businesses are worth the acquisition cost since most will need additional products like checking and savings accounts. A positive CU experience could solidify a long-term client both for business and personal financial needs.

How do I increase equipment loan approvals?

Once you have established relationships with small and mid-size businesses, they will likely need additional loans such as equipment financing. While it’s easy to put a business owner into a box by only recognizing his credit score or actuarial models, that box doesn’t meet the needs of today’s business owner.

Does the owner have collateral? Cash flow? Do they have a good reputation with your CU? All of these factors should also influence loan approval.

By underwriting each equipment loan, you can personalize the experience and collect pertinent data that can help upsell additional products and services.

Take the time to get to know local industries that are seeking loans. Do you understand their equipment needs? Are they able to source new or used equipment?

Establishing genuine care and concern for each business member’s needs can generate referrals and build trust among industries. Running a business in any industry is difficult and understanding the needs and unique financial mistakes can help your CU provide solutions to keep those businesses running without a hitch.

How do I go digital without losing members?

By 2025, it is estimated that over half of tasks currently held by various credit union personnel such as loan officers, tellers, and financial advisors could be automated according to Accenture. Although going digital could save financial institutions billions of dollars, it also affects the ability to provide a human experience, a touchpoint that credit unions rely on.

However, going digital doesn’t have to mean slashing the workforce or giving your members the cold shoulder. For example, OceanFirst Financial in New Jersey retrained its employees to assist digital banking roles.

Even though OceanFirst closed over 1/3 of its branches, through its employee retention efforts and forward-thinking mindset, it was able to keep over 90% of members who banked at the closed branches.

By adopting digital processes, OceanFirst also witnessed an 81% increase in mobile deposits (2019). Investing in retraining their employees not only educates their staff on digital processes but provides growth and sustainability for their coverage area.

Why should I partner with fintech?

As the need for a personalized digital banking experience paralyzes credit unions, fintech can provide the perfect partnership.

Your CU doesn’t have to become fluent in online coding or start from square one. By partnering with fintech companies, credit unions can expand their network of businesses, and simplify the loan process to engage more members at a faster pace.

This strategy is particularly important for CUs that lack manpower and budget in the areas of risk, underwriting, and compliance.

Fintech can also help CUs gather data analysis regarding their potential and current membership. The data measures credit risk allowing the credit union to understand the borrower’s financial behavior before a transaction has commenced.

By using smart credit risk technology, CUs can feel comfortable approving the loan, even if traditionally the borrower may have questionable credit on paper. This is the main avenue fintech uses to speed up loan approvals.

It’s important to choose a fintech early in the game. As fintech gets more established the rates start to increase, which means the cost of partnership can as well. Coronavirus has forced scenarios we have never conceived before. Only being able to communicate via a virtual world is right up fintech’s alley so take advantage of their automation techniques in personal and small business lending.

What’s next for the U.S. economy?

Since 2000, credit union lending as increased in both first mortgage and auto. Totaling $81.6 billion (26.0% of all credit union loans in Q2 2000) and $440 billion in Q2 2019 (41.1%), first mortgages have seen an increase of over 15%. Auto loans have increased too from $123.6 billion in 2000 to $374.4 billion in 2019.

However, 2020 has ushered in a global pandemic, social unrest, and an economic downturn. With all of these factors, it is unlikely that the nation will be as strong economically as it was between 2015-2019. Here are 3 factors that could limit economic growth in the next couple of years.

1. Political Uncertainty

President Trump frequently tweets and according to JP Morgan, those words go way beyond social media banter. JP Morgan nicknamed the tweets the ‘Volfefe Index’ after a confusing 2017 “covfefe” tweet. These specific tweets are showing a significant impact on Treasury yields.

Depending on the content, tweets affect volatility in the market which affects the pricing of options and securities.  As the November election looms, uncertainty in the market is considered commonplace.

2. Low Inflation Rate

A low inflation rate is meant to keep the recovery going. However, when inflation rates are already low, cutting them can make a weak economy weaker.

The probability of an additional 25-basis-point rate cut averaged approximately 87% for contracts expiring between the end of 2019 and September 2020 as found by the Federal Reserve Bank of Atlanta’s market tracker.

3. Future Economic Trends

As a higher ratio of Americans is retiring, the U.S. has seen a slowdown in productivity. Less productivity means less economic growth. This decline of economic growth along with a decline in consumer spending could be problematic for a quick economic recovery.

Even with lending wrapped up in the chaos of economic uncertainty, now is the time to invest in technology and comply with industry regulations to stay competitive. Listening to the needs of your members can help your CU weather economic uncertainties. Here at Oak Tree we follow the lending trends in the credit union industry and are here to help you adapt. What’s your feedback on navigating current lending trends for growth and compliance at your credit union?

Credit Unions, We’re Here For You

Credit Unions, We’re Here to Help You Adapt

Credit Unions, We’re Here to Help You Adapt

The current situations are new and can be troubling for many. Almost every person has been affected in some way by the impact of COVID-19. Being a part of the #CreditUnionMovement means we are going to need to be ready to act. Your members are going to be needing all kinds of assistance. Your credit unions thrive during these times because you know how important your members are. This is why we wanted to remind the credit unions, we’re here for you to adapt. It can be to the Covid situation, after the pandemic and the “new” normal, or at any time you want to improve your credit union forms and budgets.

When the pandemic first began its spread, we saw that many credit unions were quick to act in efforts to protect and help their members. There were halts to fees, repossessions, and foreclosures. We saw credit unions lower their rates on emergency loans and perform other actions to prepare their members for the days ahead. Oak Tree had also put forth many resources to assist the credit unions in their mission to support their members.

Now, we are seeing another stage in this situation where many communities are confident in their ability to reopen their businesses and allow for more interactions, with certain safety protocols still in place, of course. That is where Oak Tree is once again acting as a proactive partner to the credit union industry. Along with our standard practice of staying ahead of the trends and regulatory changes, we also want to find other ways to help credit unions adapt to the new normal.

No one is alone in these times, as we are all a community and that is the lesson learned from our time with credit unions. We are here to do our part and help you adapt. As you are ready to transition, see how our forms can better enhance your lending portfolio. Check out our products & services, then contact us to start using the most reliable and compliant forms and disclosures for credit unions nationwide.