Member Social Media Engagement Best Practices

Credit Union Member Social Media Engagement

In an expert opinion article posted on Credit Union Times, our CEO, Richard Gallagher discusses some great advice for credit unions seeking to use social media to engage with their members. It is time to look at credit union member social media engagement best practices.

Any form of credit union marketing now requires social media to be part of the equation. Consider these recent demographic statistics from the Pew Research Center as they relate to social media trends in 2018:

● 73% of male internet users and 83% of female internet users are on Facebook.

● 38% of female internet users are more likely to use Instagram than men (26%).

● 81% of millennials check their Twitter feed every day.

● 91% of all social media users check their platforms from a mobile device.

So, are you convinced that social media must be a part of your marketing plan? With that in mind, let’s highlight a few ways credit unions use social media to engage with their members, as well as some tips and tricks you can incorporate into your own marketing plan.

Richard Gallagher

To read more about how your credit union can better engage with its members online go check out the CU Times article and then check out our membership documents for your credit union so you can find even more members to engage with and apply these member social media engagement best practices.

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Changes to Interest Rates and Forms in 2018

Changes to Interest Rates and Forms in 2018 for Credit Unions

In a commentary article posted on Credit Union Times our CEO, Richard Gallagher discusses how the Fed has made its resolution clear to increase rates. Are your forms prepared to handle it? Changes to interest rates and forms in 2018 are guaranteed, make sure your credit union is prepared for these changes. In the new year, interest rates are predicted to hike at least twice, each time your forms must undergo changes.

New business tax cuts, a new Federal Reserve chair, and low inflation set the stage for interest rate hikes going into 2018. Speculation projected three hikes last year, but only two occurred. This was no surprise to industry experts who surmised a third-rate hike would be unlikely because the economy was not in a position to support one. Most of the tax cuts set forth in President Trump’s tax plan would not take effect until 2018 and would affect businesses more so than consumers. Plus, inflation was a market factor and growth seemed to be slower than expected.

How Much the New Tax Cuts Will Affect Rate Hikes

Well, it is now 2018 and the tax plan just went into effect. Businesses are positioning themselves to take full advantage of their tax rate plummeting from 35% to 21%. That’s good news for them. It’s good news for the Feds too. The potential for interest rate hikes has directly increased as a result. Toward the end of 2017, many investors thought there might be only two hikes in 2018 because of inflation. The attitude of the markets certainly seemed to be positioned that way, and who could blame them? Sluggish inflation coupled with a sluggish growth rate usually means interest rates will remain the same.

Richard Gallagher

To read more about how your credit union can prepare for the changes to interest rates and forms in 2018, go check out the CU Times article and then check out our lending documents for your credit union.

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Utilizing Expansion Opportunities in 2018

Utilizing Expansion Opportunities in 2018

In a commentary article posted on American Banker our CEO, Richard Gallagher, discusses how and how Credit Unions should be utilizing expansion opportunities in 2018 that are due to the National Credit Union Administration’s recent changes to the field of membership rules. The article explains five positive changes that can impact your credit union. These 5 expansion opportunities can help grow your credit union.

As the new year begins, it’s a good time to ensure your credit union is taking full advantage of the National Credit Union Administration’s recent changes to the field of membership rules. Let’s take a look at five major areas with the greatest potential for impacting positive growth.

1. Core area service requirements

Various changes were made to core area service requirements – most notably, allowing credit unions to focus service to a portion of a statistical core without the perhaps overwhelming obligation to serve a much greater core area, thereby creating opportunities for more organic growth consistent with each credit union’s charter. According to the NCUA, the rule also allows for segmenting the population of a core area without regard to the 2.5 million cap. Credit unions can now serve combined statistical areas so long as they stay under the 2.5 million-population cap, and may also apply to serve adjacent areas, provided narrative submission requirements are met.

Richard Gallagher

To read more about how your credit union can be utilizing expansion opportunities in 2018 and be positively impacted by these recent changes to the field of membership, go check out the American Banker article and then check out our membership documents for your credit union.

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TRID & What It Means for Your Forms

TRID & What It Means for Your Forms at Your Credit Union

In a commentary article posted on Credit Union Times our CEO, Richard Gallagher discusses TRID and what it means for your forms. For Credit Unions, TRID requires not only adjusting model forms but also includes changes to computer software. Picking the right business partners to satisfy the TRID disclosure requirements is more critical than ever, and a reliable document provider is every bit as important as finding a qualified loan processor. 

What do you get when you attempt to abbreviate “Truth-in-Lending Act,” “Real Estate Settlement Procedures Act” and “Integrated Disclosures?” Well, if you are the CFPB, you get TRID, an acronym for two consolidated consumer real estate loan disclosure forms that represent many years and countless hours of research and development. The TRID forms consolidate two separate loan disclosures that had been required for decades by two different federal consumer protection laws and regulations recombining them into two different forms; one to be provided at the time of application and the other, at the time a closed-end consumer real estate loan is closed. For those wanting to dig a little deeper, let’s break this down.

On Aug. 11, 2017, the CFPB published a Final Rule in the Federal Register to formalize guidance and to provide greater clarity and certainty regarding specific mortgage disclosure provisions implemented by Regulation Z (2017 TILA-RESPA Rule). Although the Final Rule became effective on Oct. 10, 2017, 60 days after publication, compliance is not mandatory until Oct. 1, 2018. Confused? Aren’t the TRID disclosures already required? Let’s back up and review.

Richard Gallagher

To read more about TRID and how it affects your credit union, go check out the CU Times article and then check out our home equity lending documents for your credit union.

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Credit Union Leadership

Credit Union Leadership Inspirational Quote

In a commentary article posted on CU Management, our CEO, Richard Gallagher discusses the end of another year and how it affects credit unions. A few great inspiring quotes to help inspire your credit union leadership as well.

There are so many things to do before the end of the year: new budgets, policies, mergers, systems, digital, digital, digital, and, of course, strategic planning for regulatory compliance. We understand the frustration. With 30-plus years of experience in providing always-compliant forms, finding balance is tough. So how do you do it? How do you strike a balance between managing operations, meeting year-end goals and planning for the new year without the Grinch coming in to ruin Christmas? Here are a few time-tested tips based on quotes from famous people. We are not sure if they will help with your holiday preparations, but they will make a positive impact on your business areas for sure.

1. “If you tell the truth, you don’t have to remember anything.” This Mark Twain quote speaks to a universal truth: authenticity. It is especially important during this stressful time of year. To be effective with your credit union operations, be consistent. Be results-driven. Be passionate. Let your staff know when you are stressed and don’t forget to let them know when they have exceeded expectations. Being an authentic leader will help your team keep pace for the remainder of the year and set performance expectations for the next. 

Richard Gallagher

To read more about how your credit union can navigate mobile banking and the solutions, go check out the CU Management article and then maybe check out our credit union forms and documents which we provide all the necessary training to ensure your CU is ready to lead the way.

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Credit Unions Navigating Mobile Banking

Credit Unions Navigating Mobile Banking

In a commentary article posted on Credit Union Times our CEO, Richard Gallagher discusses how quickly mobile banking is growing and the effects this growth has on credit unions. Credit Unions navigating mobile banking is somewhat of a new challenge, but there are plenty of solutions to keep up with the growth. This new form of payment processing not going away and credit unions navigating mobile banking will only be beneficial.

Consumers demand banking experiences that can keep pace with their lifestyles. That’s why there are so many different payment gateways. Consider the following list of giants. Entities like Apple Pay, Google Wallet, Facebook Messenger, PayPal, and Venmo all exist to enhance peer-to-peer payment processing. They try to make the payment experience easy and seamless. The fewer steps required for a consumer to perform in order to send money, the better. The less that is required of them to interface with the application, the better. It has become the new marketplace standard.

These are points to consider when fine-tuning your mobile banking application. Your members want three things … speed, ease, and security. It’s why bill payer services were so popular for a while. And while you might not think things have changed much, they have. New payment apps have substantially decreased the fees associated with credit union bill pay services. In many instances, it costs nothing for a member to make a payment. Plus, they are less bulky and easier to use. It’s a true win-win for them.

Richard Gallagher

To read more about how your credit union can navigate mobile banking and the solutions, go check out the CU Times article and then check out our membership documents for your credit union.

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5 Misconceptions about Home Equity Lending

In a commentary article posted on Credit Union Management, our CEO, Richard Gallagher discusses the top 5 misconceptions about home equity lending. There are two types of home equity lending, closed-end home equity and open-end or home equity line of credit. The article goes into more depth and how your credit union can ensure your members understand the top 5 misconceptions about home equity lending.

Here’s how you can clarify the situation and avoid confusion-related mistakes.

Home equity loans are a great way for your members to get money for needed expenses like home repairs or college tuition. They can also be used for things like vacations or new cars. The two types of home equity lending—closed-end home equity and open-end or home equity line of credit—each have marked differences. Misconceptions abound, in part because the two are so closely related. False assumptions are made by homeowners, which can result in mistakes being made by the lender. Let’s look at five common misconceptions and issues you can easily avoid.

1. The loan can’t be modified. While it is true that closed-end home equity loans cannot be modified, the same cannot be said for home equity lines of credit. The limit on the line of credit is based on the value of the owner’s home. If the value drops due to market conditions, the lender may have the right to adjust the amount of available credit accordingly. Not explaining this clearly upfront could spell trouble for you in the long run. Make sure you do. Also, let your members know you may decrease the amount of available credit if you reasonably believe that the consumer will be unable to fulfill the repayment obligations because of a material change in their financial circumstances. For a no-modification option, steer them to a traditional closed-end home equity loan through which they receive a lump-sum payout and repay the money over time with a structured payment schedule.

Richard Gallagher

To read more about how your credit union members can understand the common misconceptions about home equity lending, go check out the CU Management article and then check out our home equity lending documents for your credit union.

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Budgeting's Not a Chips and Salsa Party

In a commentary article posted on Credit Union Management, our CEO, Richard Gallagher discusses how budgeting’s not a chips and salsa party. At times can be mundane, but it is necessary for your credit union.

The Lifeblood

Budget allocation for credit unions should ultimately be about growth and stability, but always with respect to net revenue. Viewing that as the heartbeat keeps allocation honest. Without strong net revenue, there will be no asset growth. This will affect things like operating expenses and credit losses. Your credit union will have to either lighten the load or encourage asset growth to keep net revenue healthy. Of course, the latter is preferred. 

One of the greatest assets of mobile banking is 24/7 access. Members can check loan balances at any time, just as There are a few things you can do right now to see whether your budget is in line with current net revenue. First, go over each line item and compare it to past years’ budgets. Are there any blatant discrepancies? If so, look into them and find the cause. Chances are you will find one of two things: Either the expenditure in question cost more than anticipated or it did not produce as expected. Any item that is a cost drain or does not address productivity will have a negative impact on net revenue.

Once you find those items, take time to go through them and determine the underlying issues. Correcting them mid-year during allocation planning will keep net revenue strong and healthy. 

Richard Gallagher

To read more about how your credit union can successfully allocate your budget go check out the CU Management article and then check out our lending documents for your credit union.

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The Equifax Breach & Your Credit Union

In a commentary article posted on American Banker (formerly the CU Journal), our CEO, Richard Gallagher discusses how important cybersecurity is for credit unions or anyone in the financial industry. Specifically, he looked at the Equifax breach and your credit union as far as how it can be affected by this breach and similar exploits.

The world of identity theft shifted a bit on Sept. 7, when news broke that hackers had infiltrated the Equifax consumer database. It’s estimated that somewhere around 143 million consumers were affected. This means vital information like names, dates of birth, social security numbers, and credit card information could potentially be up for grabs. And while it’s sobering to think that all of this data could be sold to the highest bidder, the response by Equifax seemed to further complicate the matter.

The website, www.equifaxsecurity2017.com, was set up by the credit bureau to assist consumers with ascertaining whether or not their information had been compromised. However, the official Equifax corporate Twitter account redirected consumers to a fake phishing site for a while before the tweets were noticed and removed. Once the mistake was realized by Equifax, the phishing site was taken down. It was a step by an engineer to bring perspective to the issue of just how dangerous and unnerving the security breach is.

Richard Gallagher

To read more about cybersecurity and your credit union go check out the American Banker article and then check out our compliant lending documents for your credit union.

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Best Practices for CU Social Media Marketing

Best Practices for Compliant Social Media Marketing

In a commentary article posted on Credit Union Times our CEO, Richard Gallagher, discusses Best Practices for CU Social Media Marketing to stay compliant.

Compliance authorities are bringing their A-game, and so should you.

Is your marketing compliant? Do you know what you can and can’t say? What about your social media posts? Are they compliant? These are big questions and they won’t be ignored. The compliance authorities are bringing their A-game, and so should you! Catching one examiner’s eye could end up costing you thousands if your marketing efforts breach certain parameters, and it doesn’t even require them to visit you onsite. Let’s take a closer look. It all begins with basic guidelines set forth by the CFPB.

Basic Marketing Guidelines

The guidelines were established by the bureau as an effort to protect consumer interests. Here are general guidelines to follow when advertising on print, television, and radio. All marketing and advertising efforts must: Be factual and accurately represented, clearly explain the product or service being offered, give no misrepresentation of cost or terms, make sure all disclosures are prominently displayed, and avoid using unfamiliar terms.

Keep in mind these are general guidelines. Essentially, the idea behind the guidelines is to make sure you communicate your message clearly and to describe the product or service being offered in an accurate, honest manner. This allows the consumer to make the best possible decisions regarding the product or service being offered.

Richard Gallagher

To read more about how your credit union can be compliant with their social media marketing go check out the CU Times article and then check out Oak Tree Marketing Services for your credit union.

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Maintain Compliance

In a commentary article posted on Credit Union Times, our CEO, Richard Gallagher discusses the importance of credit union forms being up to date to maintain compliance.

Maintaining Compliance: A Lesser Burden, a Real Threat
Don’t let out-of-date forms be the elephant in the room at your credit union.

Credit Union Compliance: Always Changing

Compliance always seems to be the elephant in the room among credit union discussions. It can be found in just about every board meeting, conference, and executive luncheon. There is good reason, too. Just a few years ago, compliance threatened to close down many credit unions.

The Elephant, or Grim Reaper, in the Room?

In 2013, more than 800 credit unions had closed their doors over a four-year span. Contribution to this was partially the Dodd-Frank Act, which many institutions found to be cumbersome. The regulatory burden was too much for them. Other credit unions were swallowed up in mergers, just so they could survive. Times were scary and uncertain. During this time, compliance was not an elephant in the room; instead, it was the Grim Reaper.

Even today, compliance has a big impact on credit unions, according to Utah Credit Union Advocacy and many other credit unions. Here is how regulatory compliance is impacting credit unions:

Richard Gallagher

To read more about how your credit union can increase its lending growth opportunities go check out the CU Times article and then check out our lending documents for your credit union.

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2017 Field of Membership Rule Changes

In a commentary article posted on CU Management (Powered by Cues), our CEO, Richard Gallagher discusses how rules and regulations changes made in the part 701 to broaden the field of membership definitions. Here is a quote from the 2017 Field of Membership Rule Changes article:

Among other shifts, the new guidelines open membership to more rural residents.

In late October the National Credit Union Administration finalized changes to part 701 its rules and regulations that broaden the field of membership definitions for federally insured credit unions. The agency announced that, as a result, more Americans will become eligible for credit union products and services effective Feb. 6, 2017.

The change had the added benefit of re-naming NCUA’s consumer office to clarify its function and role in promoting consumer access to affordable financial services. NCUA Acting Chairman and prior Board Member J. Mark McWatters noted that the change would enhance consumer access to credit by sensibly and reasonably updating NCUA’s rules.” He further noted that the “… field-of-membership final rule is consistent with both the letter and spirit of the law.”

The shift was one of the biggest regulatory moves for credit unions of 2016. Banks and other large financial institutions see it as a threat because it could have a substantial positive impact on credit union membership growth. Opponents of the change have threatened lawsuits challenging credit unions’ not-for-profit status.

Richard Gallagher

To read more about these changes to the field of membership rules and how they may affect your credit union go check out the CU Management article and then check out our credit union membership documents for your credit union.

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Mobile Banking Optimal for Lending Growth

Mobile Banking is Optimal for Lending Growth

In a commentary article posted on Credit Union Times our CEO, Richard Gallagher, discusses how mobile banking optimal for lending growth at credit unions is so important. A crucial topic as credit unions seeks to connect with Millenials.

Mobile banking allows credit unions to compete with larger financial institutions. It gives them a competitive edge and greater flexibility. It is also great for lending growth. A study by the Federal Reserve reported that “67% of millennials now use mobile banking, compared to 18% of consumers age 60 or over. This usage gap is projected to widen even more, as 85 million millennials, prone to using their mobile devices for banking, are coming of age.” This translates directly into an increase in lending growth. Here’s why.

Lending Growth and Mobile Banking

One of the greatest assets of mobile banking is 24/7 access. Members can check loan balances at any time, just as they would their checking or savings accounts. They may also have access to other crucial pieces of information, such as principal balance and next payment due date. All of this serves to increase lending growth, as consumers are constantly looking for efficient ways to manage their financial lives.

Richard Gallagher

To read more about how your credit union can increase its lending growth opportunities go check out the CU Times article and then check out our lending documents for your credit union.

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