Fall 2012

The Magazine of the League of Southeastern Credit Unions

Is EMV Right for Your CU?Chip Card = Good Strategy?

The Evolution of the Branch Experience

Why Facebook is Becoming Tool of Choice for CUsLeveraging Most Popular Social Network

Election Resourcesfor CUs & MembersUtilize Election Resources for 2012 Election

Leveraging Industry KnowledgeCredit unions have more leverage through established strategic relationships with innovative credit union service providers that help your credit union capitalize on opportunities that may not be available otherwise.

866.231.0545 | www.myleverage.com | consult@myleverage.com

Generate Member SmilesOne Gift Card at a Time Giving a gift for any occasion has never been easier. And now, with the new and improved designs, generating smiles one gift card at a time is more fun than ever before!

Sign up for the program today to be ready for the upcoming holidays. To view the new designs and to learn more about LEVERAGE’s Gift Card Program, visit www.myleverage.com.

“Our credit union truly appreciates the ease of using the gift card program provided by LEVERAGE. This l o w - c o s t p r o d u c t provides another excellent service to offer our members!” Marquetta Cantrell, President/ManagerRocket City FCU

2012 LEVERAGE_Relationships_Signal.ai 1 8/28/2012 12:32:33 PM

Every four years when we are electing our nation’s president, we hear that it is the most important election of our lifetime. While often this is an exaggeration, there is some truth to the statement. Every election is important because we as Americans have the freedom to choose. This is a freedom that has been fought for since our forefathers declared independence and led to George Washington being elected as the first president of the United States in 1789. For credit unions, each election is an opportunity to help elect candidates that understand our issues.

Every election cycle, either presidential or mid-term, the LSCU works to get credit unions as much information as possible about candidates’ positions on our issues and ask them to dissimulate that information to their staff, volunteers, and membership. We also work with chapter leaders to hold legislative meet-and-greets. This is always a great opportunity to get to know candidates and current elected officials who are running for office. Nothing beats a face-to-face meeting to find out what the candidates believe in and how much they know about credit unions. I can’t stress enough how important it is to form relationships with our current and future lawmakers as early as possible. Our Alabama and Florida Governmental Affairs Committees also formulate a list of endorsed candidates. We share that with credit unions and also house that on our website.

Every two years, the League puts together a voter’s guide for state and federal candidates. Each guide provides our credit unions a good view of how each candidate feels about credit union issues. On the federal side, we document whether the representative or senator co-sponsored credit union legislation and how they voted on issues important to our industry. This is important to know when going to the polls because we can’t keep trying to work with lawmakers that aren’t willing to work with us.

On the state side, we work to educate candidates on the credit union difference and what issues are important to us. Along with this information, we send a credit union questionnaire to all of the candidates running for state office. This is an invaluable tool when it comes to electing our local officials. This year in Florida, the five-question document gauges where the candidate stands on credit union taxation, public deposits, expanding the credit union charter, the non-judicial foreclosure process, and data breach legislation. Each candidate is graded on their answers. All of the candidates did not fill out the survey, but we did get enough responses to help you make decisions on Nov. 6. It also highlights the key credit union-friendly candidates in the House and Senate. Since there are no state elections in Alabama this year, a survey was not sent. However, you can expect to see one in 2014.

The state and federal voter’s guides have been emailed to all of you. We house both guides in our LSCU Action Center which is under the Governmental Affairs tab on the LSCU Homepage. We also have a webpage, Campaigns and Elections, that houses the Alabama and Florida elections pages, resources on finding your legislators, and state and federal district maps. These resources can help when researching the candidates in your district. As we get closer to Election Day, the Campaigns and Elections webpage will have resources such as stickers, lobby posters, and voter materials for your branches.

Each of these resources should help credit unions make informed decisions when they go to the ballot box in November. The voter’s guides and list of endorsed candidates really tell a story of which of the candidates understand our issues and how well they understand credit unions. The list is non-partisan and as a trade association we work with elected officials from both parties. We will not support a candidate that votes against our issues or one that is not willing to meet with us and discuss our issues. Credit unions need to be diligent and not accept the status quo any longer.

Our country has been voting for more than 200 years and we are afforded the freedom to make choices. As your League, we work hard to get you the most up-to-date information on candidates’ positions on our issues and where the candidates stand so you can make an informed decision on Nov. 6. I hope you will take advantage.

Patrick La PinePresident & CEOLeague of Southeastern Credit Unions

LSCU

Message from the President

3 President’s Message

6 Trends

Is EMV Right for Your Credit Union?

The Evolution of the Branch Experience

10 Advocacy

Election Resources Available for Credit Unions & Members

Through Project Zip Code: Strength in Numbers

14 LSCU Legislator Profile Congressman Jo Bonner Senator Chris Smith

Table of Contents

Connect with us!

EditorAmy Jowers

ContributorsBill BergMike BridgesJared RossJoseph DavisMary Elicia Del SantoAndy GonzalezKeith HopkinsBrandy NorvellLaura VannAdena Whitman

ProductionDetra WhiteApril Banta

Letters to the editor may be submitted at submission@lscu.coop.

Highlights6 | TrendsRead why every credit union should complete an evaluation of EMV and make a determination whether chip cards are a good strategy for the growth of their portfolios.

10 | AdvocacyCredit unions can influence policy by working together to do so. An easy way is to participate in the Project Zip Code program.

19 | ComplianceRateMap is a free resource for competitive strategies, decision-making, and advance revenue and profit goals.

LeagueofSECUs

@LeagueofSECUs

LeagueofSECUs

www.lscu.coop

Between now and the end of 2012, every credit union should, at a minimum, complete an evaluation of EMV and made a determination whether chip cards are a good strategy for the growth of their portfolios.

The credit union industry will most likely never move away from having a large brick and mortar presence for its members. What is needed is for each credit union to have a strategic vision for the future of its branches?

Credit union advocates are in a unique position to help influence the elections this year. Utilize the resources that LSCU and CUNA have provided to member credit unions in conjunction with the 2012 election.

Representative Jo Bonner

Senator Chris Smith

at a ation ortfolios.

4 A Magazine of the League of Southeastern Credit Unions SIGNAL: Vol. 3, Issue 3

19 Compliance

Free Access to Online Interest Rate Research Tool

20 Cooperative Initiatives

SAS Program Continues to Evolve to Meet the Changing Needs of the Small Credit Unions

24 Foundation

SECUF Scholarship Program Offers Opportunities to Credit Union CEOS, Employees, & Volunteers

28 Education

Effects of Training on Employee Performance LSCU Learning Opportunities for October-December

30 Communications

Why Facebook Is Quickly Becoming the Credit Union Tool of Choice

33 League News

2012 AC&E Highlights

2012 LSCU Supervisory Committee Conference “A Wonderful & Informative Conference”

36 Industry

The Justices Have Spoken: The Affordable Care Act Is Upheld. Let the Compliance Begin!

38 LEVERAGE

Cross-Selling to Members from Indirect Lending

ELT Process Mandated in Florida

42 LSCU Staff Directory

Highlights20 | Cooperative InitiativesHas your credit union taken advantage of any of the suite of services available through the SAS Credit Union Program? Credit unions have more resources and options than ever before.

28 | EducationCredit unions can reap the rewards of providing training for their employees and volunteers because well-trained workers help increase productivity and income.

30 | CommunicationsCredit unions now have access to users in their target market and more who may be potential credit union members by leveraging the most popular social networking tool for marketing.

“If I did not receive the scholarship, I would not be able to attend the conference [LSCU AC&E],” Diane Long, CEO of Calhoun-Liberty Employees Credit Union, said. “The breakout sessions were very good but the small credit union roundtable was most beneficial. I came back from the annual conference pumped up and ready to start new and better ways of making loans.”

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TREND

Is EMV Right for Your Credit Union?Brian Scott, vice president, sales, The Members Group

There are many unknowns where the future of chip cards in the U.S. is concerned, making strategic planning very difficult for credit unions across the country. The past year, however, has brought forth several developments, each of which is providing a more detailed roadmap.

Here Is What We Know:Very soon, merchants wishing to reduce their security

compliance burden will begin to deploy dual interface POS technology to support contact and NFC chip transactions. If by October of this year a merchant logs 75 percent of all transactions on these terminals, that merchant will not have to validate compliance with the PCI Data Security Standard.

Some major retailers, including Wal-Mart and Target, have already begun upgrading their terminals for chip acceptance.

By October 2015, Visa and MasterCard will shift the liability to the party (issuer or merchant) with the least secure method of processing transactions. For the purposes of this deadline, both networks deem chip technology to be the most secure transaction method available.

U.S. processers similarly are preparing to support merchant acceptance of chip transactions. Both Visa and MasterCard are requiring processor support by the spring of 2013.

We also know some early adopters of EMV technology – credit unions that have implemented chip cards to meet the EMV standard abroad – are reporting successes from their individual upgrades.

For its part, United Nations Federal Credit Union (UNFCU) – processed by The Members Group and the first credit union to adopt EMV technology in its credit card program – has made international headlines about the early results of its migration. Since introducing chip credit cards in 2010, UNFCU reports a more than 150-percent jump in credit card applications for the chip and PIN segment. The demand stems from the fact that many of UNFCU’s members either reside or travel internationally and require EMV-supported credit cards to transact abroad. Wanting to best serve its members around the world, UNFCU understood a chip-enabled credit card was a must to provide cardholders with convenience, as well as protection against fraud.

Not only did the UNFCU EMV migration result in a dramatic increase in applications; it also resulted in a 38 percent increase in overall purchases from January 2011 through June 2012 and a 23-percent increase in revolving balances for that period on those cards with chip technology.

Between now and the end of 2012, every credit union should, at a minimum,

complete an evaluation of EMV and make a determination whether chip cards are a good

strategy for the growth of their portfolios.

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With ongoing results like this, it’s easy to anticipate more U.S. credit unions will be attracted to the potential of EMV at their own cooperatives – albeit UNFCU’s unique membership. In short, many credit unions with similarly high-travel members do not want to lose their top-of-wallet positioning to a competitor.

Indeed, providing a convenient method for cardholders to transact abroad is the sweet spot for credit unions. While EMV champions may tout the security and fraud-reduction qualities of EMV, it will be some time before the U.S. can fully realize these benefits. That’s because EMV issuers today are still required to have mag stripes on their plastic for their cards to be useable at all U.S. merchant locations. So, knowing what we do about the near-term future of EMV, how should credit unions plan for their eventual migration to chip technology?

Between now and the end of 2012, every credit union should, at a minimum, complete an evaluation of EMV and make a determination whether chip cards are a good strategy for the growth of their portfolios. From there, card managers should develop a strategic plan, including what steps will be taken and on what kind of a timeline (keeping the liability shift deadline of October 2015 well in mind).

Budget, of course, must be a part of the plan. However, credit union leadership may find budgeting for EMV more palatable when viewed as a marketing expense. Think of chip technology as an

upgrade to the card portfolio (similar to platinum cards a few years back) – one designed to secure or solidify top-of-wallet positioning. Because the shift is not yet a mandate, early adopters can consider adding chip technology the same way they would any other upgrade, such as rewards or customizable photo cards.

When conducting your due diligence on EMV partners, credit unions should look to sources of information other than looking solely to their card processor. Certainly the processor should be involved as a credit union researches its alternatives, but the credit union itself should be the driving force behind the due diligence on the broader EMV-provider marketplace. The more EMV experts a credit union can speak with, the better they can fully understand the entire picture, especially the ability to create growth in the portfolio from the marketing advantages of EMV.

It’s no longer a question of if EMV is coming to the U.S.; it’s a question of when all issuers and acquirers will be fully functional. While we understand a few of the important deadlines, we don’t yet know how the various entities in the payments ecosystem will respond to those deadlines – or more importantly, how consumers will respond.

Unfortunately, the unknowns do not provide enough of a reason to “wait and see.” Credit unions must begin to act now, researching the options, examining current cardholder behavior and aligning their EMV plans with what they do know today. ■

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Mike Bridges, vice president, Marketing & Communications, LSCU

TREND

For most consumers, their first experience with a financial institution was stopping by a branch. The traditional branch was usually in a stately building; the consumer stood in the teller line, had their passbook stamped, and maybe got a lollipop on the way out for the kids. While these are great memories for Baby Boomers and Gen. X, it’s not quite the experience the new generation of credit union members is looking for.

Studies show that Gen. Y and Millennials, those people born between 1982 and the early 2000s and the largest generation in U.S. history, want their financial information now. Investing in technology is a major step in courting this segment. According to a Fiserv consumer trends survey, Gen. Y uses ATMs more often than Boomers and Gen. X and surprisingly, Gen. Y visits branches more often. So what does this mean for credit unions? Should they invest in technology or continue to build branches or do both? Actually, they need to rethink the branch model.

“In the current credit union branch construction we are seeing 80-plus percent of all new branches going with a dialogue banking delivery method as opposed to the traditional teller line,” says Justin Sweetman, regional vice president at DEI, a leading financial institution design company from Cincinnati. Sweetman says the days of building a branch with the traditional teller line are slowly fading away.

“It does not embrace the employee utilization desired by credit unions nor does it provide the member service qualities of the dialogue approach,” says Sweetman.

Listerhill Credit Union, based in Muscle Shoals with $500 million in assets, has been one of the more progressive credit unions when it comes to their member services and branch experience. Listerhill actively pursues Gen. Y members while keeping a close watch on the rest of its membership base. The credit union currently has one branch on the campus of the University of North Alabama that has a cell phone charging station, a Wii, and a place for students to relax, as well as conduct their credit union business.

“Our decision to depart from normal branch design on campus was born out of a desire to become a destination for students on campus regardless of whether they were credit union members or not. We have found through our efforts with younger generations that a substantial conversation is essential to their understanding of the credit union,” says Brad Green, CEO of Listerhill.

While the University of North Alabama branch is non-traditional, the rest of Listerhill’s branches are more of what members are used to seeing. Green says that’s important for the credit union as it grows.

“I don’t think that the traditional teller counter service is in danger

The Evolution of the Branch Experience

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of completely disappearing any time soon. Some members have been readily receptive to utilize more automated technological solutions. On the other hand, many have refused to embrace anything but a person,” says Green.

Innovations Federal Credit Union, based in Panama City with $150 million in assets, is true to its name. It’s innovating the branch model by doing away with the teller line and utilizing kiosks with Innovations staff standing beside the member instead of behind a counter. Many credit unions in Alabama, Florida, and across the country are also adopting this model. Credit unions have to adapt to the member’s needs to continue to remain relevant.

“Credit unions need to be convenient and have a physical presence so our members have the option of how they can be served. Branch designs are continuing to change and credit unions must be mindful of this, so as not to be left behind,” says David Southall, CEO of Innovations FCU.

Southall says the member experience with the kiosks has been very positive for his credit union.

“Our members love the freedom to see their financial information at the same time as our team member versus the old way of holding the member’s information hostage with the antiquated design of the

teller line,” says Southall. The credit union industry will most likely

never move away from having a large brick and mortar presence for its members. What is needed is for each credit union to have a strategic vision for the future of its branches. Many brands have gone from initially being a niche industry into a national brand. Credit unions have that opportunity right now.

“At DEI we are building a high retail branch with dialogue banking and improvements in technology in an almost Starbucks-meets-Apple-store approach, making the branch a true destination for these highly influential groups,” says DEI’s Sweetman.

Listerhill’s Green also sees similarities to how Starbucks and Apple have grown to not only sell products but become a trusted brand for consumers; a place that many people want to experience as much as a place to buy coffee or shop.

“Both have created destination retail establishments that introduce and showcase their products. People actually enjoy going to both of these retailers to experience the product. We need to create destinations that feature an enjoyable and relevant experience of the value of the credit union,” says Green.

Whichever route credit unions take during their growth opportunities or branch renovations, they must evolve and have an eye toward the future. Every company within an industry that has succeeded has seen the future and been open to change. Members love their credit union, but their needs are changing.

“I see smaller branches filled with new technologies that we don’t know of yet. I also see the need for increased brand recognition and culture shifts within credit unions. We need to be open-minded and explore the shifting delivery channels as well as the ever-changing products and services in this industry,” says Southall.

“The time someone expends to visit our branch is a sacred opportunity. We need to discover and innovate an experience that gives the member the most value and quality in the time that they choose to spend in our branch,” says Green.

Competition is as tough as ever in the credit union industry. Long-term vision and innovation can transform the credit union branch experience for members. In the end, it will create a whole new generation of memories for members, and it will still come with a lollipop. ■

(l to r): Innovations FCU’s “kiosk” branch, DEI branch renderings of Bay Winds CU and Harvard University Employees Credit Union 9 SIGNAL: Vol. 3, Issue 3 www.lscu.coop

AdvocacyElection Resources Available for Credit Unions & Members By Andy Gonzalez, grassroots & political action coordinator (FL), Governmental Affairs, LSCU

ADVOCACY

There is not a more fundamental right that can be exercised by Americans than the right to vote. As the 2012 elections near, LSCU has been working to ensure that credit unions and their members’ voices are heard.

It is a known fact that nearly half of registered voters are credit union members and surveys of credit union members state conclusively that they trust their credit unions when it comes to their decision-making process about political and electoral issues.

As credit union advocates, we are in a unique position to help influence the elections this year. Active participation can make a significant difference in whether we elect credit union-friendly candidates and conversely, sitting on the sidelines can result in the election of candidates who are more pro-regulation and less credit union-friendly.

Below are some of the resources that LSCU and CUNA have provided our members to utilize in conjunction with the 2012 election:

• Candidate Voter Guide for Alabama and Florida: The voter guide is available for credit unions to share with their staff and members to help determine the candidates that are credit union-friendly. The guides were developed from surveys given to Alabama and Florida candidates seeking election both at the state and national level to gauge their understanding and support for the credit union movement. This year the LSCU Governmental Affairs team received more than 135 survey responses! Responses to the candidate surveys have been used to put together a voter guide for credit unions. The voter guide can be found by visiting the LSCU Action Center under Campaigns & Elections at www.lscuactioncenter.com.

• Legislative Meet & Greets: These events, hosted by LSCU chapters, are great opportunities for credit unions to interact with legislators and show the services credit unions provide their constituents as well as the service credit unions give back to the community. These events have been underway in both Alabama and Florida. See the sidebar for upcoming Legislative Meet & Greets in your area.

• CUNA Guide to 2012 Election Activities Pamphlet: CUNA has developed this pamphlet as well as several marketing materials that can be used to encourage both credit union employees and members to vote on Election Day. The marketing materials and pamphlet can be found at http://cuna.org/pol_affairs/election.

• LSCU Action Center (www.lscuactioncenter.com): It’s not only your one-stop-shop for advocacy! If you, a fellow employee, or member would like to register to vote, request an absentee ballot or have any other questions regarding voting in the 2012 election, visit the LSCU Action Center’s Election Resources section to find pertinent information and links.

Utilizing the resources available to us is a great way to ensure that credit union-friendly candidates become credit union-friendly lawmakers. Every election season gives us another opportunity to flex our grassroots and political muscle. Remember, if credit unions don’t vote, credit unions don’t count!

If your credit union would like to get involved or has questions regarding the 2012 election, contact LSCU Grassroots and Political Action Coordinators Blake Westbrook (AL) at 866.231.0545 x2164 or blake.westbrook@lscu.coop, or Andy Gonzalez (FL) at x1010 or andrew.gonzalez@lscu.coop. ■

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There is an old saying in politics that holds true in most areas of everyday life, too. “There’s strength in numbers!” If there is strength in numbers, then credit unions should be one of the most powerful organizations in the political process. Boasting more than 6.5 million members between Alabama and Florida, credit unions really can influence policy by working together to do so. One of the easiest ways to show that strength is to provide elected officials with an accurate account of the number of members living in their district. When the League, as lobbyists, and you, as constituents, go to a member’s office and can say “You have 200,000 credit union members living within your district,” it can truly make a significant impact.

Project Zip Code (PZC) is an easy-to-load, user-friendly, and secure software application that counts your members and matches them by congressional district, state legislative district, and county. These counts are then uploaded to CUNA’s Project Zip Code website (www.pzconline.com) and combined with data from other credit unions nationwide. Many credit union members reside in states other than the state in which their credit union is domiciled. This is why it’s important that all credit unions participate; without full participation we can’t get a clear picture

of our grassroots strength. PZC aids in federal and state advocacy efforts, and participation provides operational benefits. Credit unions can view credit union members by geographic area, which can be useful in placing ATMs and shared branching.

One of the biggest concerns we hear with PZC is whether it is secure. Your information is completely secure. No personally identifiable data or individual information leaves your computer. PZC only receives the counts of records successfully matched by the program. All of your data remains confidential and secure with PZC. It is also compliant with the privacy laws created in Gramm Leach Bliley.

So what are the benefits of PZC? PZC aids in both federal and state advocacy efforts when we lobby our elected officials on legislation that impacts credit unions. This simple program directly benefits your credit union by strengthening our position as we continually build relationships with your legislators. In years past, we could only estimate the number of credit union members in our districts; PZC will allow the League to pinpoint exactly how many members reside in each legislative district, lending us more influence when dealing with legislators. Further, PZC provides operational and marketing benefits. Credit unions can view their membership by geographical area, which can be helpful when deciding ATM and branch locations.

We like to boast our membership numbers, touting nearly two million members in Alabama and more than 4.5 million members in Florida. Unfortunately, according to our current project zip code numbers, we are well below that, showing fewer than 1.4 million members in Alabama and just over four million members in Florida. By running PZC we will have a more accurate count of our members and ability to utilize the “strength in numbers” mentality. Remember, if you don’t count your members, then your members don’t count! Help us help you by running PZC at least twice a year.

If you need assistance in running PZC, contact LSCU Grassroots and Political Action Coordinators Blake Westbrook for Alabama at 866.231.0545 x2164 or blake.westbrook@lscu.coop and Andy Gonzalez for Florida at x1010 or andrew.gonzalez@lscu.coop. ■

nching. ar

ith y laws

Strength in NumbersThrough Project Zip CodeJared Ross, vice president, Governmental Affairs, LSCU

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89

1011

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19 2021

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2324

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PZC counts your members and matches them by congressional district, state

legislative district, and county.

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How to Get Started with Project Zip Code

ADVOCACY

Get Started with PZC 12.0:1. Go to the Project Zip Code website, www.pzconline.com.

2. Download the program and the full user manual.

3. Once you have the program up and running, your membership totals will be matched to both the current 113th federal and state legislative districts.

4. Design your credit union’s own report with the query and reporting tools that can help your credit union’s marketing activities. For those credit unions that are already using PZC, log-in with your username and password. If you have forgotten your password or username, send an email to pzc@cuna.com.

Project Zip Code is a user friendly program, however if you run into any problems or would like a CD copy, contact LSCU Grassroots and Political Action Coordinators Blake Westbrook in Alabama at 866.231.0545 x2164 or Andy Gonzalez in Florida at x1010. If you have a technical question, contact Kristen Prather at CUNA at 202.508.6708.

12 A Magazine of the League of Southeastern Credit Unions SIGNAL: Vol. 3, Issue 3

12,000,000

* Source: Internal Analysis of MemberCONNECT Program data 12/2010.

CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates.

Life and AD&D insurance sold through CMFG Life Insurance Company. MEMBERS Auto & Home Coverage made available by CUNA Mutual Insurance Agency, Inc. and underwritten by leading insurance companies. These insurance products are not deposits and are not federally insured or guaranteed by credit unions.

12,000,000

You work hard to help your members plan, build and achieve their financial

future. Today more than 4,000 credit unions help protect the futures of over

12,000,000 members and build deeper and stronger relationships in the process.

Every year as credit union membership increases, more members trust their

credit union to provide them with access to high quality and competitively priced

insurance protection. And more credit unions look to CUNA Mutual Group for the

protection developed specifically for their members.

With the MemberCONNECT® Program your members can choose from more than

just one type of insurance. They’ll find Auto, Home, AD&D and Life insurance,

along with the expertise to guide them to the right ones for their needs.

Our diverse product offerings, sophisticated means of communicating, targeted

marketing efforts and 24/7 access give you the ability to build more and stronger

connections while protecting your members and earning non-interest income.

There’s a good reason we are 12,000,000 strong and growing.

Contact your CUNA Mutual Group sales executive today to

find out how your credit union can protect more members

through the MemberCONNECT Program.

Call 800.356.2644 or visit www.cunamutual.com for details.

More Members protected. Members protected more. MemberCONNECT.

12,000,000* members protected and growing!

Common Purpose. Uncommon Commitment.10002626-0111-MHC © CUNA Mutual Group, 2011 All Rights Reserved.

LSCU Legislator ProfileRepresentative Jo Bonner

How and why did you become interested in public service and politics in particular; and what led you to run for Congress?While I earned a degree in journalism from the University of Alabama, it was not until I completed an internship with former Congressman Jack Edwards of Mobile that I became interested in politics. I worked on the campaign of Sonny Callahan who succeeded Edwards and eventually was hired to be his press secretary and later his chief of staff. The idea of public service is special to my family since my father once held elective office in Wilcox County. It has been an honor to follow Sonny Callahan in representing the people of Southwest Alabama for the last decade.

What are the most important issues you see facing Congress today?The most serious problem facing our nation is the unsustainable growth of federal spending. We are now nearly $16 trillion in debt, and our annual deficits have been more than $1 trillion for each of the last three, and soon to be four, years, and we are borrowing 42 cents of every dollar we spend. If left unchecked, this growth will drive our nation toward a fiscal crisis from which we may never recover.

You co-sponsored H.R. 1418, legislation to give credit unions greater flexibility to make small business loans. How do you see the role of small businesses in the recovery, and what should credit unions be able to do to assist?Small business is the key to economic recovery now, as it has been in the past. Access to capital from all sectors for business investment must be freed up to allow for increased growth and hiring. Just as I have with respect to energy policy, I believe the current economic malaise requires an “all of the above” strategy -- one that facilitates the injection of capital into small businesses from all available lenders, including credit unions.

Jo Bonner was first elected to Congress in 2002 and was recently re-elected to a fifth term representing the state’s fast-growing Gulf Coast region.

A member of the powerful House Appropriations Committee, Bonner has served as a vigilant guardian of the taxpayers’ money, helping to eliminate wasteful and questionable spending. He has led by example, personally prohibiting congressional earmark requests from private, non-public entities, while instituting practices of increased transparency in the earmarking process. Over the years, he has been ranked by numerous national organizations as the most conservative member of Alabama’s seven-person House delegation.

On the House Appropriations Committee, Bonner serves on the Commerce, Justice and Science subcommittee; the Defense subcommittee; and the Financial Services subcommittee.

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Credit unions are seeing an alarming increase in regulatory burden throughout Alabama and you have co-sponsored H.R. 3461, financial institution exam fairness, a credit union friendly bill. Do you see H.R. 3461 as a way to decrease regulatory burden on financial institutions?In the aftermath of the economic crisis of 2008, the pendulum has swung too far in the direction of over-caution and over-protection, which has manifested itself in over-regulation. We must continue to work to free the lending community to make reasonable and sound business decisions that allow for more robust economic recovery.

What role do you see for credit unions in serving the people of Alabama and how do you see them as part of the economic recovery?I believe credit unions, along with large and community banks, need to be at the forefront of our economic recovery. Without the needed capital, combined with a lessening of the overall federal regulatory and tax certainty, business owners will be unable and unwilling to provide the kind of economic growth and job creation needed to bring this recession to an end.

If you could give one piece of advice to grassroots advocates for credit unions, what would it be?The League of Southeastern Credit Unions has been very effective in sharing the goals and objectives of your industry in Washington. That said, continued efforts to educate the general public and Members of Congress on the important role credit unions play in communities across our nation is vital to your continued success on legislative and regulatory matters affecting your industry.

With the recent announcement of Airbus in Mobile, AL, what are your thoughts on the increasing presence that Alabama is having in the global business market?Thanks to a number of high-profile foreign investments in Alabama over the last two decades, our state is well known to international business. We are all aware of how Mercedes transformed our economy, ushering in tens of thousands of auto industry jobs since 1993. As a result, Alabama is on track to become the country’s third largest auto manufacturing state – a position unheard of a generation ago. Similarly, Airbus’ landing in South Alabama holds tremendous potential to remake the state’s aerospace industry landscape. Having recently participated in aviation supplier recruitment at the international airshow in Farnborough, I can tell you that Alabama was the topic of conversation and recipient of great interest. I am optimistic about the future of high tech industry in our state. ■

Azalea City Credit Union CEO Ola Anise greets Congressman Bonner at the CUNA GAC.

15 SIGNAL: Vol. 3, Issue 3 www.lscu.coop

LSCU Legislator ProfileSenator Chris Smith

What it is about politics that interested you enough to help guide your decision to run for public office?While at Florida State University Law school I spent some time at the Capitol and learned about the legislative process. I quickly learned that the legislature could have both a positive and a negative effect on local communities and the state of Florida. These experiences lead me to run for State House in 1998 because I knew I could be a positive voice for my community.

In your eyes, what are some of the biggest issues facing Floridians as we move toward the elections and into the 2013 Legislative Session?Once again the budget in 2013 will be one of the biggest issues facing Florida. Each year the budget determines the priorities of the state government. Over the last few years the legislature has cut millions of dollars from higher education and K-12 education funding. Next year we must make education funding one of the priorities in the budget and restore funding to schools and universities that desperately need it.

Last session, you sponsored SB 936 which would have given credit unions the ability to become qualified public depositories. What were your thoughts behind filing this bill and why was it an important issue to you?I filed SB 936 because I believe consumers should have choices. Providing consumers with more choices leads to better prices and service. Currently in Florida, commercial banks enjoy a virtual monopoly over the deposit of state and local funds. Frequently, credit unions will receive deposit requests from local governments but due to current laws they are forced to turn them away. Credit unions play an important role in local communities and it only makes sense that local governments should be able to use them as qualified public depositories.

In 1998, Chris Smith was elected to the Florida House of Representatives for District 93, serving unopposed for two consecutive terms, 2000 and 2002.

He led the charge to reform the elections process in Florida after the Election of 2000. He helped author the election reform bill that is now law in Florida and is being used as a model nationwide.

In 2003, he was unanimously selected to be the Democratic House Leader for the Democratic Party. His duties included fund raising nationwide for the Democratic Party, candidate recruitment, and developing democratic policy for the state.

He was elected to the Florida Senate in 2008, for District 29. He is currently with the law firm of Johnson, Anselmo, Murdoch, Burke & George, P.A., practicing in the areas of civil trial, municipal law, and civil rights litigation.

16 A Magazine of the League of Southeastern Credit Unions SIGNAL: Vol. 3, Issue 3

How important do you feel the role of grassroots advocacy is in the legislative process? What advice would you give to grassroots advocates when contacting their elected officials?Grassroots advocacy is extremely important to the legislative process because it allows us to hear the concerns of constituents on issues that come up during a legislative session. Every time I vote on a bill I consider its effect on my community and the constituents who took the time to advocate for or against the issue. When you contact your elected official it is important to be specific about your issues and how it will affect your community. The input from my community helps to shape and inform my voting on bills as well as what bills I sponsor and write.

What three things do you believe the Legislature should accomplish during the 2013 Legislative Session?The three things that the legislature should accomplish during the 2013 Legislative Session are restoring education funding, working to fix the FCAT crisis, and finally working to create economic development and jobs.

Can you describe your experience working with the LSCU Governmental Affairs team during your time in the Legislature? Working with the LSCU Governmental Affairs team has always been a pleasure. My meetings with them have always proven to be both informative and educational. They have provided me with information to make sound policy decisions on legislative matters dealing with credit unions and my community. ■

Senator Smith with community members.

17 SIGNAL: Vol. 3, Issue 3 www.lscu.coop

Upcoming Governmental Affairs

Conference Dates

in 2013

Alabama State GACApril 9-10

Montgomery, ALEmbassy Suites Hotel Conference Center

Florida State GACMarch 19-20, 2013

Tuesday – WednesdayGovernor’s Club - Tallahassee, FL

CUNA GACFeb. 24-28, 2013Washington, D.C.

For more information visit www.lscu.coop or contact LSCU VP, Governmental Affairs Jared Ross

at 866.231.0545, x1012.

Join the League in meeting

with legislators face-to-face

ComplianceMembership Has its Benefi ts: Free Access to Online Interest Rate Research ToolBill Berg, MBA, CCUE, CUCE, BSACS, vice president, compliance training & information, Governmental Affairs, LSCU

RateMap has been available for three months now – have you taken full advantage of it? If not, you’re missing out on a resource designed to assist you with your competitive analysis strategies, improve decisions on what products to offer and how to price them, and advance your revenue and profit goals.

The League is now offering affiliated credit unions free access to RateMap, an online interest rate research tool, as a benefit of League membership. RateMap is a web-based pricing tool offered in collaboration between the League and RateWatch.

When Baptist HealthSouth FCU President/CEO Mike Raley and Memorial Employees FCU President/CEO George Glasser found out that this product was now being offered as a “free service” and “value of affiliation,” both CEOs were very pleased because they previously had been spending hundreds of dollars annually with RateWatch to get that information. Free is a price that most of us like, especially with the ongoing regulatory and competitive pressures to reduce costs.

“I’ve been very pleased with the amount of money we’ve been able to save using RateMap,” Glasser said. “The depth of information that we have access to has also been extremely helpful.”

RateMap provides affiliated credit unions online tools to see what key rates other financial institutions are currently offering and is delivered through the League’s InfoSight portal.

Users may choose from the following selection of the most commonly offered deposit and loan products:

• 12, 36, & 60-month Certificates of Deposit• Money Markets at $2,500 & $25,000• 60 & 72-month new auto, and 48-month used autoDeposit rates are updated weekly and loan rates are updated monthly.RateMap users can filter by institution type, product type, and rate,

as well as search by address, zip code, or city and state. Credit unions can also view every surveyed branch’s address, phone number, website, number of locations, and deposit balances.

Credit Union Benefi tsBenefits for your credit union include free and easy access to

competitive pricing information; more branch level rate data available

than any other source in the industry; insight into the current rate environment to assist in pricing decisions; and discounted pricing for other RateWatch services.

With free access to RateMap’s key rates in your area and throughout the country, a credit union can increase its competitive advantage by utilizing:

• Rates for a selection of the most commonly offered deposit and loan products

• Rate coverage of all the institutions/branches monitored by RateWatch

º Deposit rate data on more than 90,000 branches nationwide º Loan rate data on more than 40,000 branches nationwide

• Searching by address, zip code, or city and state• Filtering by institution type, product type, and rate• Details such as address, website, number of locations, and

bank deposit balances• Customer/member reviews from online review sites such as Yelp• Listing of internet bank rates• Ability to print deposit rate reports

To Access RateMap:1. Login to the League’s website at www.lscu.coop. Click on “Site

Login” and enter your log-in name and password. 2. Once logged in, scroll down to Rate Map box located on the

home page of www.lscu.coop and click on the Get Started Now! button which will take you to the InfoSight/RateMap home page.

3. Under “Access Rate Map,” click on the Rate Map link for Alabama or Florida as appropriate.

4. Once you have entered RateMap, enter the address where you would like rate comparisons centered around. You will need to fill out some registration information (just a few seconds), and you are now on your way.

Also, as a League member, you are also eligible for exclusive offers from RateWatch. RateWatch provides one-time as well as subscription services for a wide variety of retail and commercial, deposit and loan, rate and fee, and competitor comparison reports. Template and custom reports are available to meet your comparison needs and your budget.

If you have any questions about RateMap, contact LSCU VP, Compliance Training & Information Bill Berg at 866.231.0545, x1028. ■

19 SIGNAL: Vol. 3, Issue 3 www.lscu.coop

INITIATIVES

Cooperative Initiatives

The world of finance has become more challenging to navigate as the economic conditions have continued to fluctuate. Is your credit union under $50 million in assets? Has your credit union taken advantage of any of the suite of services available through the League’s Small Asset Size (SAS) Credit Union Program? Credit unions have more resources and options than ever before through the SAS program to help them grow and thrive.

Through the Cooperative Initiatives Department and its five consultants, the SAS program offers many targeted tools, including on-site consulting to improve operational efficiencies and enhance member utilization of products and services, guidance in resolving Document of Resolution (DOR) items and/or other issues revealed by exams and audits, facilitation of strategic planning sessions/development of business plans, support in determining feasibility of field of membership expansion, and guidance on regulatory requirements, budget development and assistance with Bank Secrecy Act risk assessments and other risk assessments.

The services listed above are just a sampling of the type of assistance available from the League’s member relations team housed in the Cooperative Initiatives Department.

“Our SAS program continues to evolve to meet the changing needs of the small credit unions in Alabama and Florida,” said Laura Vann, vice president, Cooperative Initiatives, for the League of Southeastern Credit Unions. “Our goal is to help small credit unions thrive, and we don’t take a one-size-fits-all approach. We recognize that small credit unions have different ideas about how to best serve their members and work with our SAS credit unions to develop plans and strategies that will work within the uniqueness of their own credit unions.”

Vann explained that the member relations team has assigned geographical territories but credit unions benefit from the combined experience of the entire team. “Our Cooperative Initiatives team has more than 80 years of experience working with financial institutions, primarily credit unions, in operational, compliance, and business development roles. We also have significant marketing and communications experience in other sectors. We bring a wealth of experience to our positions at the LSCU and can utilize our knowledge base to help credit unions develop and execute strong strategic business plans,” Vann said.

SAS Program Continues to Evolve to Meet the Changing Needs of the Small Credit UnionsAdena Whitman, director, member relations, Cooperative Initiatives, LSCU

+ Small Credit Union Resources + On-site consulting on improving

operational efficiencies and enhancing member utilization of products & services

+ Guidance in resolving Document of Resolution (DOR) items and/or other issues revealed by exams & audits

+ Facilitation of strategic planning sessions/development of business plans, support in determining feasibility of field of membership expansion & guidance on regulatory requirements

+ Budget development + Assistance with risk assessments

CONTINUED ON PAGE 22

20 A Magazine of the League of Southeastern Credit Unions SIGNAL: Vol. 3, Issue 3

http://www.corporateone.coop

“We consider the LSCU as our partner in success,” said Kristin Sturges, CEO of East Alabama Community Federal Credit Union in Opelika, AL, with $10 million in assets. “I have managed two small credit unions and the League has always been at my side to answer questions, serve as a sounding board, and to motivate us to better serve our members.”

Sturges said the League facilitates a planning session for the credit union every two years. “Our planning sessions have helped us develop our blueprint for growth,” said Sturges. “As a result of our planning, we have built a new building, changed to a community charter, implemented an advertising program, restructured loan programs, and added products and services such as bill pay and credit cards. The League staff not only facilitated our planning sessions, but continued to work with us to make sure that we achieved our goals.”

Judy Surles, CEO of Jefferson County Teachers Credit Union in Monticello, FL, with $7 million in assets has also been pleased with the SAS program. “We are particularly pleased with the initiatives account that the League has provided for the last three years,” she said. The SAS initiatives account provides each credit union under $50 million in assets with $500 in 2012 to use toward any LSCU or CUNA educational event, product, or service. “In previous years, we used our initiatives account for training and this year we used it for a strategic planning session,” said Surles.

SAS credit unions have also used their initiatives account to attend the LSCU’s AC&E, Leadership Development Conference, Supervisory Committee Conference, as well as workshops and webinars said Vann. “Small credit unions have used their initiatives account toward registration at CUNA events such as America’s CU Conference and the Governmental Affairs Conference. In addition, the $500 initiatives account has also been used for auditing services provided by LEVERAGE ’s audit and consulting service, strategic planning sessions facilitated by

the Cooperative Initiatives team, and registration for the Southeastern Credit Union Managers Association annual conference.”

“The League’s Small Asset Size Program has provided a wonderful support group, especially with my being new to the credit union industry,” said Taren Dawson, manager of Stevenson Federal Credit Union with $16 million in assets. “In addition to attending conferences with foundation scholarships, which I wouldn’t have been able to attend otherwise, the League has really helped me with my role as manager and understands the challenges I am facing. They have been there for me 24/7, offering great advice and training.”

Customized and on-site training is another area specially targeted for the SAS program.

Buster Castiglia, CEO of Miami Federal Credit Union, with $28 million in assets worked with one of the League’s member relations specialists to identify an opportunity to assist the credit union with cross-sell training.

“[He] did a wonderful job,” said Castiglia. “I am a former teacher and I know good teaching. His presentation was first-class in every way. It was not only informative and well presented, but the material was put together in such a way that it was easy for my staff to understand and he connected very well with each and every one of them.”

So whatever your needs, the SAS program has or will create something to fill your requirements, contact any of the Cooperatives Initiatives staff. ■

SAS Program Continues to Evolve (Continued)

Cooperative Initiatives Staff

Laura Vann VP, Cooperative Initiatives

laura.vann@lscu.coopx2181

Adena Whitman Director, Member Relationsadena.whitman@lscu.coop

x2134

April Ales Member Relations Specialist

april.ales@lscu.coopx1038

David LeNoir Member Relations Specialist

david.lenoir@lscu.coopx2158

Judy Scott Member Relations Specialist

judy.scott@lscu.coopx1062

Taren Dawson, manager of Stevenson Federal Credit Union, at the 2012 AC&E.

22 A Magazine of the League of Southeastern Credit Unions SIGNAL: Vol. 3, Issue 3

Find us this November in booth #107 at the Leadership Development Conference!

“Stop thinking in terms of limitations and start thinking in

terms of possibilities.”— Terry Josephson

Facebook.com/ThinkCreativeThinkCreative.com

FOUNDATION

SECUF Scholarship Program Offers Opportunities to Credit Union CEO, Employees, & VolunteersLaura Vann, vice president, Cooperative Initiatives, LSCU

Foundation

The Southeastern Credit Union Foundation (SECUF) offers scholarships to credit union employees and volunteers to attend specific educational events. “The scholarship program suffers from some misconceptions: scholarships are only available to CEOs at small credit unions, the application process is very difficult, and scholarships only cover registration fees,” said SECUF Director Leonard Parkhurst. “Professional development scholarships are awarded to credit union employees and volunteers based on need, either financial need or the need to obtain specific information,” he said. “While the scholarship will probably not cover the entire expense of an educational event, it will cover the registration fee and a significant portion of the travel expenses,” Parkhurst noted.

In 2012, SECUF allocated $55,000 for professional development scholarships to the following events: CUNA Governmental Affairs Conference (GAC), LSCU State GACs, LSCU Annual Convention & Exposition (AC&E), LSCU Hike the Hill, LSCU Leadership Development Conference, LSCU Supervisory Committee Conference, CUNA educational events, and select CUES educational events (CUES Director Development Seminar, CEO/Executive Team Network, CUES Symposium, Director’s Conference, and CUES School of Applied Strategic Management). The application is easy to complete and is available at the Southeastern Credit Union Foundation’s website, www.supportourCUcommunity.org.

According to scholarship recipient Elizabeth Spexarth, branch manager/HR at Four Seasons Federal Credit Union in Opelika, AL, the online application process is extremely easy. “The form was very easy to fill out and the response time was very quick.”

Diane Long, CEO of Calhoun-Liberty Employees Credit Union in Blountstown, FL, chose to download the application, complete it, and email it. She called the application process “very simple.” Long said that Calhoun-Liberty Employees Credit Union has a very limited budget for education. “If I did not receive the scholarship, I would not be able to attend the conference [LSCU AC&E],” she said. “The breakout sessions were very good but the small credit union roundtable was most beneficial. I came back from the annual conference pumped up and ready to start new and better ways of making loans.”

Keith McKinley, CEO of The Infirmary Federal Credit Union in Mobile, AL, attended the CUNA GAC in March. “The GAC was a tremendous opportunity for me, as a first-time attendee, to interact with colleagues and legislators to help promote the credit union

movement,” McKinley said. “The scholarship was extremely beneficial in providing the funding necessary to attend the GAC. As a small credit union, we tend to have limited resources to allocate to such a conference. I am grateful and appreciate the scholarship and the opportunity to attend the GAC. I look forward to attending many more,” he added.

Four Seasons Federal Credit Union’s Spexarth attended CUNA’s America’s CU Conference. She said she expected to walk away from the conference with some new marketing and loan ideas. Spexarth said she also attended sessions focused on the generational differences and came away with ideas for marketing to members as well as a better understanding of how employees think. “I gained some valuable insights into new loan strategies and how to improve our loan program during difficult times,” she said. “I believe the information I brought back will be very useful as we plan for our credit union’s future.”

Debra Childress of COO of HCA Federal Credit Union in Gainesville, FL also attended CUNA’s America’s CU Conference on a SECUF scholarship. She noted that as a small credit union, they have faced some financial challenges and have limited educational resources. “It is critical that education and training continue,” said Childress, “and the scholarship provided us with an excellent opportunity to do so.”

For Childress, a primary take away from the conference was the recognition of staff and how important they are. “They are the back bone of the credit union. Happy employees drive profits and success for the credit union. Positive employees pass on positive attitudes and contribute to the success and continued growth of the credit union. As management, we need to depend on staff and ask them for more feedback on what does and does not work. We need to trust their insight and knowledge since they are the ones on the front line.”

If I did not receive the scholarship, I would not be able to attend the conference [LSCU

AC&E],” she said. “The breakout sessions were very good but the small credit union roundtable

was most beneficial. I came back from the annual conference pumped up and ready to start new and better ways of making loans.

CONTINUED ON PAGE 26

24 A Magazine of the League of Southeastern Credit Unions SIGNAL: Vol. 3, Issue 3

VISIONARY $25,000-$49,000

DREAMER $10,000-$24,999

HUMANITARIAN $1,000-$9,999

Alabama CUAlabama Telco CUCard Services for Credit Unions Charles FaulknerCheaha Chapter of CUsCUSC of AlabamaEnvision CUFCUSSFairwinds CUFamily Security CUFirst Commerce CUFirst Florida CUFiServFlorida CUFlorida West Coast CUIBM Southeast FCUIllinois CU LeagueJefferson CULegacy Community FCUListerhill Employees CUMcCoy FCUMichigan CU League & AffiliatesMobile Chapter of CUsMontgomery Chapter of CUNortheast Alabama Chapter of CUsRailroad & Industrial FCURiverdale CUSan Antonio Citizens FCUSouth Florida Educational FCUState Employees CUTampa Bay FCUTexas CU LeagueTropical Financial CUTuscaloosa Chapter of CUsTyndall FCUUSF FCUVining Sparks

SUPPORTER $100-$999

Absolute Financial ServicesAdena WhitmanAlabama State Employees CUAlabama Teachers CUAlive CUAPCO Employees CUArt & Mary Ott WoodAuto Advisor ServicesAuto NationBecki PayneCassandra GraysonCentral Florida Chapter of CUsCFE FCUCommunity CU of FLCraig CUCUESDoreen Mayhew, CPAElizabeth ChavezEPL EmployeesFlorida Central CUFlorida Customs FCUGuardian CUIWSJared RossJason CochranJason NeifieldJulianne TalleyJulie RenderosKansas CU AssociationKeith McMurtrieKevin JohnsonLaura VannLeonard ParkhurstLinda DarlingMembers First CUMichele MillerMuscle Shoals Chapter of CUsNaheola CU

Nancy BlattnerNearman Maynard VallezNeicha SharpePatrick La PinePennsylvania CU LeagueRobert BeskovoynePrime AllianceRocky Stewart (Print Resources)Sara-Mana Chapter of CUsScott Bunkers/Insurance

Consultants of Central FLSusan JohnsonTampa Postal FCUTeresa GrayThe Infirmary FCUTim McMurryTom GarciaTori ShamyWilliam Berg

FRIEND Under $100

Andy GonzalezAnita FumariaApril AlesDan BaloghDavid LeNoirDebbie CaruthersDiane TrochGary VienJudy ScottMario GarciaMartin FCUMary Elicia Del SantoMike BridgesMike CoueyRichard AbtSteve SchipullTracy ShimanskyWanda Chambers

25 SIGNAL: Vol. 3, Issue 3 www.lscu.coop

Childress said that a session featuring author John Izzo, Ph.D. left her with a lot to ponder. The session, titled “Five Secrets You Must Discover Before You Die,” made the following points: be true to yourself, leave no regrets, become love, live the moment—train your mind for happiness,

and give more than you take. “My behavior and optimism do matter,” said Childress. “Happiness is a choice. Our attitudes do matter and it filters over into the success of our credit union.”

Scholarships are still available for 2012 educational events, including two CUES events. The CUES CEO/Executive Team Network is scheduled for Nov. 4-7 at The Ritz-Carlton, Palm Beach. The educational and networking event is designed to build on the legacy of the credit union movement and shape its future. Topics include integrative thinking and innovative solutions, enterprise risk management issues, channel management, and the future of the credit union movement. The CUES Directors Conference will be held from Dec. 9-12 at Desert Springs, a JW Marriott Resort & Spa in Palm Desert, CA. This event takes an in-depth look at the governance and economic issues affecting your credit union.

To apply for a scholarship, visit the Southeastern Credit Union Foundation’s website at www.supportourCUcommunity.org. For more information about scholarship availability and eligibility, contact SECUF Director Leonard Parkhurst at 866.231.0545, x1154 or leonard.parkhurst@lscu.coop. ■

SECUF Scholarship Program (Continued)

Debra Childress, CEO of HCA Federal Credit Union in Gainesville, FL, attended CUNA’s America’s CU Conference on a SECUF scholarship.

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League Education

EDUCATION

Effects of Training on Employee PerformanceBrandy Norvell, events coordinator, Education, LSCU

Proper training results in satisfied and productive employees and volunteers. The League of Southeastern Credit Unions (LSCU) strives to offer training that meets the needs of credit union employees across the board, from the front line, to the board of directors.

Credit unions can reap the rewards of providing training for their employees and volunteers because well-trained workers help increase productivity and income. Investing in training should improve worker retention rates, member satisfaction, and creativity for new product ideas. Effective training saves labor by reducing time spent on problem-solving and saves money in the long run by producing a better workforce.

Investment in training can improve a credit unions financial standing. Poor performance often results when employees and volunteers don’t know exactly what they’re supposed to do, how to do their jobs, or why they need to work a certain way. Training can help solve these performance problems by explaining the details of the job. Improved performance from employee training can reduce staff turnover and result in fewer member complaints. Better performance from employees typically creates less need for supervision and brings increased worker output.

Job satisfaction generally increases and self-esteem improves when employees and volunteers better understand the workings of the credit union. Training can also enhance morale on the job and loyalty to the credit union. Workers who believe their credit union offers excellent training opportunities are generally less likely to leave their credit unions within a year of training than employees with poor training opportunities, according to Howard Community College in Maryland, which points to a poll of employees by Louis Harris and Associates.

Training plays a key role in employee commitment, according to Scott Brum of the University of Rhode Island. Credit unions are more likely to retain employees who view their training as relevant to their jobs and subsequently have a positive commitment to their organization. A successful training program consists of providing personnel with accurate information and communication about the training as well as ensuring that training is relevant to their jobs.

Keeping well-trained employees and volunteers pays off significantly for credit unions and other because the cost of employee, board of directors,

and committee turnover can be high. A study by the University of Wisconsin found that 75 percent of the demand for new employees was related to replacing workers who left the company.

The League’s Education department is here to help its credit unions provide relevant top notch training to their employees and volunteers through multiple training styles and resources. Visit the LSCU Events Calendar on www.lscu.coop to view available education opportunities. If you have any questions regarding education events, contact any of LSCU’s Education Department personnel via email or phone (866.231.0545). ■

Education StaffTeresa Gray

Director of Eventsteresa.gray@lscu.coop

x2110

Julianne Talley Director of Conferences

julianne.talley@lscu.coopx1148

Brandy Norvell Events Coordinator

brandy.norvell@lscu.coopx2172

Becki Payne Association Services Support Specialist

becki.payne@lscu.coopx2129

Credit unions attend the LSCU Regulatory Compliance Update which provides training on the most recent regulatory/compliance issues.

28 A Magazine of the League of Southeastern Credit Unions SIGNAL: Vol. 3, Issue 3

October 2012 2 HR Danger Zones: What You Need to Know to Stay Out of Trouble 3 Computer Security for All Staff 3 Fall LSCU Council Meeting St. Augustine, FL 9 LSCU Collections Conference Birmingham, AL 10 LSCU Bankruptcy Conference Birmingham, AL 10 Conducting the 2012 ACH Audit 11 Completing the New SAR Line-by-Line: Crimes, People & Narratives 15-16 Philosophy in Action Workshop Lake Mary, FL 17 Beyond ALLL Doubt: Methodology & Policy Development in Uncertain Times 17-18 LSCU IRA Essentials & Advanced Training Miami, FL 18 LSCU BSA Training Workshop Muscle Shoals, AL 23 Lending Series: Advanced Underwriting Skills for Consumer Loans 24 Working with Troubled Members: Loan Extensions, Deferments, Re-Aging, Refinancing & Incentives 30 Frontline Series: Business Accounts: Who is Authorized to Open, Close, Transact?

November 2012 7 Director Series: The Board’s Role with the Loan Committee 7-9 LSCU Leadership Development Conference Point Clear, AL 8 Top 10 IRA Issues: Compliance, Minimum Distributions, Reporting & Year-End Issues 13 Completing the New CTR Line-by-Line: People, Businesses & Fiduciaries 14 10 Steps to Increased Loan Growth 15 Vendor Due Diligence & Effective Vendor Management Programs 27 Debit Card Error Resolution & Regulation E Investigations 28 Legal Update - Loans: 2012 in Review 29 Required Compliance Series: Robbery Preparedness for All Staff

December 2012 4 Escrow Account Compliance 5 Opening Trust Accounts: Documentation, Authority, Liability 6 The Last Frontier: Risks & Opportunities for Business Loans 11 Unfair, Deceptive & Abusive Practices: Is Your Credit Union at Risk? 12 Legal Update - Deposit Operations: 2012 in Review 13 Credit Union Business Documents: Email & ESI Retention/ Destruction Policies & Procedures 18 Regulation E Alert: New Requirements for Consumer Foreign Remittance Transfers 19 Bankruptcy Today: Reporting, Proof of Claims & Identifying Fraud

Download the complete 2012 LSCU Events Calendar at www.lscu.coop.

Upcoming 4th Quarter Learning Opportunities

2012 Leadership Development ConferenceNovember 7-10, 2012 | Point Clear, AL | www.lsculeadership.com

*Bolded listings denote workshops and conferences. Non-bolded listings denote webinars.

COMMUNICATIONS

Why Facebook Is Quickly Becoming the Credit Union Tool of ChoiceJoseph Davis, communications coordinator, Communications, LSCU

Likes EventsPhotos

Liked Message

Credit unions should be utilizing Facebook to connect and engage membership

What if credit unions had a tool that altered the traditional methods of doing business? What if something came along that changed the way credit unions interacted with membership? It has. For many businesses-big or small-the use of digital tools has created a groundswell of ingenuity around making business better and more successful.

For the better part of a decade, digital media has rapidly closed the distance between business and consumer. Specifically, social media has become the driving force behind sentiment, buying decisions, and influence. Social media is commonly referred to as a medium that connects users through channels in a digital space. Right now-and for the last nine years or so-Facebook has been king of the social media landscape. According to Facebook Inc., the social network titan currently has 955 million active users – not to mention 137 million unique visitors in the U.S. per month. Imagine the influence more than 900 million people have.

Why is this important for credit unions? Well, now credit unions have access to users in their target market and friends of those users who may be potential credit union members. There isn’t a better time for credit unions to leverage a social network that is not only free, but the most popular social networking tool for marketing on the web with a 92-percent marketer preference (Source: thesocialskinny.com).

Actively Incorporating Facebook into Marketing Initiatives

At a time when corporations such as Nike, Coca-Cola, Red Bull, and Disney are harnessing the power of Facebook as a tool for business, financial institutions and small businesses have a place-specifically credit unions. In Facebook research statistics recently published by thesocialskinny.com, it’s noted that 80 percent of U.S. social network users prefer to connect with brands through Facebook. For the credit union brand, this can be optimal territory for promoting the credit union difference.

Now, the means by which credit unions grow membership has accelerated. Many are placing more of a strategic focus on Facebook and social media as tools to market their credit union and engage their membership. “On Facebook, interacting and engaging with fans is paramount,” said First Commerce Credit Union eServices Manager Nick Chiamardas. “We try to post about things that people want to read, like, and comment about. Because Facebook is open for public consumption, credit unions must be prepared to address member service, right there in the public eye.”

Not only does the use of a social network such as Facebook increase the opportunities to brand more efficiently, it allows credit unions to remain relevant in an evolving space. Marketing to membership-and potential membership-can be tricky terrain considering the level of interaction and information that many consumers desire.

30 A Magazine of the League of Southeastern Credit Unions SIGNAL: Vol. 3, Issue 3

At America’s First Federal Credit Union in Alabama, they have come to understand the fine line between marketing their credit union and delivering what members want. “We have spent a lot of time researching different types of content and how our audience responds to it,” says America’s First eServices Manager Zack Sylvan in reference to the credit union’s use of Facebook. “At America’s First, we’ve been very considerate of the fact that we’re operating in our fan’s space, and we don’t want to lose their trust by constantly blasting out pushy marketing messages.” It’s important to remember that Facebook, as well as the myriad of other social networks require forethought and a content plan that speak to credit union values.

Shifting the Focus of Traditional Member Connections

The credit union industry prides itself on member service and reliable banking. What is more and more evident throughout the last decade is the fact that the industry has evolved in the way it connects with membership. This is also true in other customer-centric industries.

No longer are members bound to entering the branch. Convenience and ease-of-use have begun to take the place of the teller line. Deposit slips are no longer stacked in one’s car glove box for the next branch visit. Credit union transactions are now frequently digital, mobile, and paperless. But what Facebook and other social networks have done is allow credit unions to remain top-of-mind and connected when members aren’t making transactions. Print and direct mail pieces have become cumbersome and more expensive-thus, less efficient.Credit unions are finding that they can now expand the use of

Facebook and other social media channels. Facebook pages now aid in online branding, some even taking the place of traditional webpages. Facebook is often used for crowdsourcing marketing ideas and research. For example, Frito-Lay was able to use Facebook to find out what its fans liked and what its new Dorito chip flavor should be, leading to the production of a fan-developed flavor. Of course credit unions aren’t looking to use Facebook to find potato chip flavors, but they are looking to display custom content like multimedia as well as find out the percentage of members that prefer connecting through social channels. Credit unions also have the ability to enhance SEO (search engine optimization) through a Facebook presence, transition page fans to their website, and possibly recruit staff and/or membership through Facebook.

Facebook’s Role in Engaging Credit Unions with Members

“Ninety-three percent of U.S. adults are now on Facebook (Source: BlogHer, April 2011),” Chiamardas said. “Facebook isn’t just for younger generations. The fastest growing age demographic on Facebook is ages 50 and above (Source: Pew Research Center, 2010). I think it’s finally safe to say that Facebook isn’t just a fad. Still, at its core, Facebook is about engagement.” With this in mind, Facebook and other emerging social networks have taken on a new role in connecting credit unions with members.

Facebook has quickly become more than a connection point for credit unions and membership, it’s serving as a means for customer service and meaningful engagement. When asked about Facebook’s role in member relations, Tropical Financial Credit Union VP, Marketing Amy McGraw said, “We have to be looking for ways to make social networks useful for our members in the financial services realm; engagement is one of them.” McGraw explained how credit unions should be focused on being a trusted source for financial information, by educating and informing members through digital means—namely social media.

In terms of using Facebook for customer service and awareness, McGraw said that Tropical Financial has had “several members go through the message feature on Facebook to ask questions regarding auto loans and mortgages, allowing us to directly connect that person with a loan officer to get their needs taken care of.” The reach of credit unions has been extended because of Facebook, making it a vital marketing and customer service tool. Understanding the network’s ever-expanding potential, credit unions that have already established trust through engaging membership will thrive much more swiftly than those that have not.

“The extent to which credit unions can successfully connect with members on Facebook (and other social media platforms) lies in their ability to provide great and relevant content to users, the ability to be ‘likable,’ and the ability to create and deliver interesting messages that can be integrated across many channels,” Sylvan noted.

Whether your credit union has utilized Facebook to market and engage members or you’re hesitant on making the tool a focal point of your marketing, it can deliver a real impact. Sure, there will always be value in interacting with members face-to-face, but as the internet eliminates that need, credit unions will have to adapt. Social media has become ubiquitous in business and has firmly asserted itself as an integral industry of growth. If credit unions are truly dedicated to member service, making the choice to connect with members within their preferred space should be simple. ■

League of Southeastern Cred... Home

31 SIGNAL: Vol. 3, Issue 3 www.lscu.coop

121 Financial CUAchieva CUAlabama CUAlabama River Emp. CUAlabama Rural Electric FCUAlabama State Employees CUAlabama Teachers CUAlabama Telco CUAlive CUAmerica’s First FCUAndalusia Mills Empl. FCUAPCO Employees CUArmy Aviation Center FCUAzalea City CU Baptist Health South Florida FCUBlue Flame CUBrassies CUBrightStar CUBroward HealthCare FCUBuckeye Community FCUCampus USA CUCentral Florida Postal CUCFE FCUChampion Community CUChattahoochee FCUCity County CUCommunity CUCommunity CU of FloridaCouncill FCUCraig CUDarden Employees FCUDCH CUEast Alabama Community FCUeCo CUEnergen CUEnvision CUFAIRWINDS CUFamily Savings FCU

Family Security CUFarmers FCUFederal Employees CUFedmont FCUFirst Commerce CUFirst Florida CUFirst Kingdom Comm. Dev. FCUFive Star CUFlag CUFlorida A & M University FCUFlorida Central CUFlorida CUFlorida Customs FCUFlorida State Employees FCUFlorida West Coast CUFour Seasons FCUGTE FCUGuardian CUGulf Coast FCUHealth CUIBM Southeast EFCUJacksonville Firemen’s CUJax FCUJax Metro CUJefferson Co. Employees CUJM Associates FCULauderdale Co. Teachers CULee County Mosquito Control CULegacy Community FCULocal 606 Elec. Workers FCUManatee Community FCUMcCoy FCUMead Coated Board FCUMembers First CU of FloridaMemorial Employees FCUMiami Postal Service CUMilestone CUMobile Chapter

Mobile Educators CUMobile Postal Employees CUNaheola CUNUCOR Employees FCUOkaloosa Cnty Teachers FCUOrlando FCUPBC CUPen Air FCUPinellas FCUPompano Beach City ECUPriority One CU of FloridaProgressive FCURailroad & Industrial FCURiverdale CURocket City FCUSan Antonio Citizens FCUSarasota Municipal ECUService 1st CUShoreline CUSouth Florida Educational FCUState Employees CUSuncoast Schools FCUTallahassee-Leon FCUThe Infirmary FCUTMH FCUTri-Rivers FCUTropical Financial CUTuscaloosa Teachers CUTVA CUTyndall FCUUnited Police FCUUniversity of South AL FCUUSF FCUVyStar CUWest Coast FCU West Coast Federal ECUWiregrass FCUWolverine CU

Thank you for your part in another successful cooperative image campaign. Close to $1.3 million was raised by 113 Thank you for your part in another successful cooperative image campaign. Close to $1.3 million was raised by 113 participating credit unions across Alabama and Florida. In 2012, 33 new credit unions joined in sending the message that participating credit unions across Alabama and Florida. In 2012, 33 new credit unions joined in sending the message that credit unions are giving banking a better name. Your support, monetarily and cooperatively, has allowed Alabama and Florida credit unions are giving banking a better name. Your support, monetarily and cooperatively, has allowed Alabama and Florida credit unions to continue educating consumers in both states about credit unions.credit unions to continue educating consumers in both states about credit unions.

Thank You

NEWS

League NewsThe 2012 LSCU Supervisory Committee Conference, held in August,

had a record attendance of 149 attendees and guests representing 48 credit unions. Attendees heard from Tim Harrington, CPA, president of TEAM Resources, as he broke down the roles of the board of directors, supervisory committee, and CEO and described how the three entities work together to keep the credit union afloat and in good standing. Steven Rick, Catherine Bruder, and Robin Hoag also presented in depth, highly-evaluated sessions covering the state of the economy, IT risk,

and ERM. NCUA Economic Development Specialist Lisa Terrell and attendees discussed practices that NCUA examiners wish every supervisory committee had in place. For the newer supervisory committee members, two in-depth sessions were offered, covering the fundamentals of the supervisory committee and how best to carry out the duties of the position as well as required annual BSA training.

Eugene Johnston, secretary of the supervisory committee at Azalea City CU commented, “I had a great time and got a number of good ideas. We had our meeting last week and I gave our CEO a long list of things I think we can do or improve upon in the future. Thank you again for a wonderful and informative conference.” ■

2012 LSCU Supervisory Committee Conference “A Wonderful & Informative Conference”

NEWSNEWS

With the theme “The Power of One: One Vision and One Voice,” more than 1,000 credit union executives, staff, volunteers, and guests attended the 2012 LSCU Annual Convention and Exposition (AC&E) June 13-15 in Orlando. The AC&E featured Game

Change authors Mark Halperin and John Heilemann, as well as 20 educational breakout sessions that were overflowing, and six hours of exhibit hall time. The silent auction brought in more than we’ve ever collected before: a total of

$13,879.00 was raised plus a $10,000 CO-OP match that is in process, totaling $23,879.00 raised for Children’s Miracle Network! Eleven-year-old piano prodigy Ethan Bortnick provided the entertainment. The LSCU AC&E is one of the largest credit union annual conventions in the country. ■

2012 AC&E Highlightse: One Vision and One Voice,” more than 1,000 credit union executives, staff, volunteers, and Annual Convention and Exposition (AC&E) June 13-15 in Orlando. The AC&E featured Game

and John Heilemann, as well as 20 educational breakout sessions that were overflowing, time. The silent auction brought in more than we’ve ever collected before: a total of s a $10,000 CO-OP match that is in process, totaling $23,879.00 raised for Children’s -year-old piano prodigy Ethan Bortnick provided the entertainment. The LSCU AC&E is one n annual conventions in the country. ■

Save the date for next year’s AC&E34 A Magazine of the League of Southeastern Credit Unions SIGNAL: Vol. 3, Issue 3

June 12-15, 2013JW Marriott Orlando | Grand Lakes Resort!

Download pictures at www.lscuconvention.com.

35 SIGNAL: Vol. 3, Issue 3 www.lscu.coop

The Justices Have Spoken: The Affordable Care Act Is Upheld. Let the Compliance Begin!Mary Miller, manager, Employee Group Benefits for CUNA Mutual Group

Industry

INDUSTRY

The Supreme Court made it official: It’s full speed ahead with compliance and strategic planning to implement the remaining provisions of the Patient Protection and Affordable Care Act (ACA).

Some states have been hard at work since the law went into effect in March 2010. Of course, not all states were enthusiastic about the healthcare reform and chose instead to either challenge the law or to wait and watch as other states filed suit. And some states are awaiting the results of November elections in hopes that power will shift to Republicans, such as Mitt Romney, who have vowed to repeal and replace the existing law. Even states that politically supported ACA may have waited on implementation planning out of fear of investing too much time and too many resources in a program ultimately declared unconstitutional. Regardless, everyone has the green light for now.

In fact, the clock has already started ticking, rules are in effect, and compliance really can’t wait. As things stand now, employers are required to fulfill the ACA requirements that have already been implemented as long as the law is in effect.

Credit unions are, naturally, among the employers faced with the task of reviewing existing health care plans and revising them in order to comply with ACA. While some questions about implementation remain, several components of the 2010 legislation are already established with guidelines regarding compliance.

Because of ACA, fully insured plans must now reveal how much of premium dollars they actually spent on health care and administrative expenses. Your credit union may qualify for a rebate if the insurance company spent less than 80 percent of premiums on medical care (85 percent in the large group market). Credit unions should have received notification from their insurance carriers indicating whether they met or exceeded this standard. The rebates must be paid by August 1 each year and must be distributed to participants in accordance with Department of Labor guidance.

Other provisions of the health care reform law that are not currently in effect will continue to be implemented. Of course, the biggest of the ACA changes affects states, not employers, and is a little further down the road. The state exchanges are supposed to go live on January 1,

2014. A federal exchange is in development to fill gaps for states that have not moved forward to develop their own exchanges or for those behind schedule. Employers should note that they will be required to provide exchange-related notices to plan participants ten months prior to the exchange launch (by March 2013).

There are many significant changes coming in 2014. This is also when the “pay or play” penalties that will affect employers with at least 50 full-time equivalent employees kick in. “Pay or play” requires credit unions to provide eligibility for coverage to any employees working 30 or more hours per week. Larger credit unions should take note: This could dramatically increase costs for credit unions with significant part-time rosters, typically comprised of front-line employees, if no strategic action is taken to optimize scheduling in light of the new regulations.

Obviously, the “pay or play” provision means that ignoring the mandate is not an option. If one or more of a credit union’s full-time employees obtain a premium credit through an exchange, the credit union will pay a penalty. An employee can earn a premium credit if an employer does not offer health coverage or if the coverage is not deemed affordable or if it does not provide minimum value. It is imperative that credit unions work with their carriers to ensure that their plans meet statutory requirements.

While the list of changes and requirements seems long, the reality is that employer attitudes about health care coverage have not really changed much. Early modeling indicates that most employers both desire and expect to continue offering health insurance plans similar to what they currently provide. Further, credit unions are well known in the financial services industry

for their robust benefits packages even as coverages elsewhere dwindle. Health insurance benefits have long been a priority to credit unions and a recognized asset in attracting quality employees.

Even so, all employers—including credit unions —will need to continue to work on controlling managed care costs. The goal of healthcare reform is to insure more Americans, and employers are expected to shoulder a share of that burden. More employees on plan rosters will drive up costs, particularly for employers that

Health insurance benefits have long been a priority to credit unions and a recognized

asset in attracting quality employees.

36 A Magazine of the League of Southeastern Credit Unions SIGNAL: Vol. 3, Issue 3

already pay a high proportion of benefits expenses. Early planning can help blunt the impact of ACA requirements that are a couple of years off.

Despite some of the rhetoric, the outlook for credit unions is not at all grim and they need not fear a dramatically different benefits landscape if they begin preparing for and implementing changes now. New requirements and costs are coming, but there has been adequate notice and time to plan and implement them. Those employers that look ahead and act proactively should be able to continue providing the coverage and control that they desire, and they should be able to maintain the kinds of benefits offerings they use in recruitment.

Also, the marketplace factors that the exchanges will usher in could present new, currently unidentified, opportunities to both insurers and employers. As health costs rise, a renewed focus on more control over the employer’s contribution exposure has spurred interest in “defined contribution” health plans in conjunction with private health insurance exchanges. The forward-looking credit unions that move ahead confidently will be in the best position to take advantage of these and other innovations that emerge.

Of course things can change—and they frequently do. What is a good guiding principle now may be misguided in six months. Credit unions should stay in touch with their carriers and benefits consultants to ensure that what is a sound compliance plan now remains a prudent strategy this time next year. ■

Healthcare spend is one of the most Healthcare spend is one of the most pressing issues facing businesses pressing issues facing businesses

today. While most credit unions are today. While most credit unions are unwilling to eliminate employer-unwilling to eliminate employer-

sponsored health plans altogether, sponsored health plans altogether, they struggle to find ways to they struggle to find ways to

effectively manage skyrocketing effectively manage skyrocketing premiums without sacrificing premiums without sacrificing

employee benefits. employee benefits. LEVERAGELEVERAGE continues to research and address continues to research and address

the implications of healthcare reform, the implications of healthcare reform, its possible effects on health plans, its possible effects on health plans,

and strategies credit unions can use and strategies credit unions can use to save money amidst the volatility.ate health insurance exchanges. The forward-

redit unions that move ahead confidently will best position to take advantage of these and ovations that emerge.urse things can change—and they frequently is a good guiding principle now may ided in six months. Credit

hould stay in touch carriers and benefits

nts to ensure that what d compliance plan now a prudent strategy this year. ■

to save money amidst the volatility.to save money amidst the volatility.

37 SIGNAL: Vol. 3, Issue 3 www.lscu.coop

Cross-selling credit union products to members whose relationship originated from indirect loans is not for the faint of heart. During our recent LSCU Annual Convention and Exhibition (AC&E) I spoke with several credit unions who still struggle with expanding those member relationships. This certainly isn’t a new challenge. I’ve been having this conversation for almost 10 years now. The good news is that with credit unions eager to make loans, the avenues for indirect lending have expanded beyond the typical auto loan. Point-of-sale merchant lending has increased the opportunities to reach out to even more potential members who have not walked through your lobby doors. These loans can range from medical procedures to golf carts and bring in a whole new crowd of members to your credit union. Here are some recommendations to help you achieve success in cross-selling to these new members.

Be CommittedYou must be committed to making cross-selling part of your sales

objectives. Your program won’t be successful if you don’t consider it an ongoing program that includes both your lending team and your sales team. For best results cross-selling activities should be conducted weekly and that means a commitment of staff, time, and technology resources.

Cultivate Merchant RelationshipsThe credit union member relationship starts with the merchant.

The stronger the relationship between the credit union and the merchant, the better advocate you will have in representing your credit union. Assign the merchant a relationship manager. This person’s role will be to visit them and provide ongoing support and communication. If you and your indirect partner work well together, this will create a positive experience for the member and, in turn, set the stage for establishing additional business.

Utilize Incoming InformationOnce you’ve received the credit application from a merchant, you

have invaluable insight into what the member may be interested in for additional products and services. Review the application for clues to identify where the member is in their financial life cycle. For example, someone that is in the early stages of their financial life cycle and renting their residence may be interested in looking into a mortgage. Identifying where a member is in their financial life cycle will indicate what product and service offerings may resonate with them. Doing your homework to identify potential needs will pay off when it comes time to reach out to that member.

Develop a ProcessConsistently following a plan will yield dividends. Statistics show

that companies that deploy a formal sales process, when compared to the mean, win 48 percent more, have sales cycles 37 percent shorter, and generate two times the revenue per head. Elements of a good indirect cross-selling process should include welcome, education, offering alignment, follow-up, and tracking.

WelcomeWelcoming the new member to your credit union should be your first

point of contact. We all know we should do it but sometimes we forget to just simply thank them for their business. During this phase you can confirm information of their purchase. Are you happy with the hot tub you purchased? How would you prefer that we contact you? You can also experience additional benefits like helping to ward off delinquencies and fraud by building strong relationships right at the start.

EducationMany new indirect borrowers don’t realize that, because they

received their loan financed through the credit union, they become

Cross-Selling to Members from Indirect LendingMary Elicia Del Santo, vice president, Business Development, LEVERAGE

38 A Magazine of the League of Southeastern Credit Unions SIGNAL: Vol. 3, Issue 3

a member. In fact research shows that 60 percent of consumers don’t know what a credit union is. This is an excellent opportunity to educate the member about the difference between your credit union and other financial institutions. By illustrating the value of joining the credit union, you’re telling the story that credit unions are giving banking a better name.

Offering AlignmentUtilize the homework you did earlier when you received

the indirect borrower’s information from the merchant. As stated above, identify where they are in their financial life cycle. By doing this, you can match your product and service offering to their needs.

Follow UpBe consistent with your follow-up. Studies reveal that

only two percent of sales occur during the first contact, 10 percent are in the fourth contact, but 80 percent are after the fifth contact. In other words, you should follow up at least five times. The number of contacts is only part of the equation. They way you follow up is critically important. Use the borrower’s preference of communication. If you’ve identified the communication preference in the welcome, your job is easy. If a member has indicated that they do not like phone calls or email, try a hand written thank you note or mail offering. If they are always texting or utilizing their smart phone, use email. The point is to communicate to the member in the way they want to be communicated.

TrackingLast but not least track your results. Tracking will

not only gauge your success but it will also hold you accountable for performing the activities.

Overcome ObjectionsBe prepared to overcome objections and try turning

a negative into a positive. One of the most common objections from indirect borrowers is that the branch is not convenient for them. For example, after asking some need-determining questions, a credit union employee uncovered that a member, an indirect borrower, had been trying to save money but was having difficulty. In this case, opening a savings account with direct deposit would help them put the funds away and the distance to the branch would deter them from taking the funds out. In this example, the inconvenience actually turned out to be a positive and the member appreciated the consultative approach. Members can tell whether you’re just trying to product push, or you’re really trying to meet their financial needs. Being authentic and genuine will build a long-term relationship.

If you’re committed to cross-selling to those members who have found their way to you through a merchant, you can increase wallet share; however, you do have to work at it. ■ 39 SIGNAL: Vol. 3, Issue 3 www.lscu.coop

Almost $2 Million Saved Through ePurchasing EventsCredit unions are leveraging their buying power, reducing capital, and seeing real savings on everyday products like ATMs, armored cars, janitorial services, computer equipment, and more through the LEVERAGE ePurchasing platform. The platform, powered by Ventelligence, encourages competing companies to more aggressively bid for the business, ultimately providing participating credit unions with an average immediate savings of more than 20 percent! Plus, a reduction in staff hours is seen because we look for competing vendors to bid on the business.

Credit unions are able to save on almost anything they need. Since 2008, 61 participating credit unions have saved almost $2 Million through ePurchasing events. Even more impressive than these savings is that it represents the savings experienced after credit unions received their lowest paper bid.

Powered By:

Many credit unions today utilize electronic lien and title (ELT) program to manage their new and used car titles. Credit unions that have utilized this process did so voluntarily, as Florida was not a state that mandated the use of ELT registration. However, that all changed during Florida’s 2012 Legislative Session. As of January 1, 2013, Florida statutes 319.27 and 328.15 will include the new requirement, which is aimed at reducing title fraud and providing faster notification of lien satisfaction.

As many credit unions already know, there are many benefits to the ELT system. They include:

• Reduction of title paper usage• Reduces title fraud• Faster notification of lien satisfactions• Reduction in storage of title documents • Access to expedited title printing• Better customer service• Reduced costsThe cost and time savings represented above, can really

streamline credit union business process.

The new law is required for any credit union that is titling a vehicle in Florida. Though Alabama does not currently have a system in place for ELT, we will monitor upcoming legislative sessions for activity relating to the implementation of title requirements. The move to electronic from paper titling is now mandatory in several states. Florida and Georgia are the most recent adopters, both requiring January 1, 2013 compliance. In total, there are 11 states currently requiring electronic titles, with several states in the process of considering legislation.

To assist with this transition, LEVERAGE has partnered with VINtek, a provider of automotive collateral management and electronic lien and title (ELT) services for automotive finance lenders. For more information about VINtek contact a LEVERAGE Business Development Consultant at consult@myleverage.com. ■

Product SupportELT Process Mandated in Florida - Many Benefi ts to SystemKeith Hopkins, vice president, Product Support, LEVERAGE

40 A Magazine of the League of Southeastern Credit Unions SIGNAL: Vol. 3, Issue 3

mailto:sales@vintek.com

DIRECTORY

LSCU DirectoryLEAGUE

22 Inverness Center Pkwy, Ste 200Birmingham, Alabama, 35242

3773 Commonwealth BlvdTallahassee, Florida 32303

866.231.0545

AdministrationPatrick La Pine, x1002President & CEOpatrick.lapine@lscu.coop

Cassandra Grayson, x1004Association Services Chief of Staffcassandra.grayson@lscu.coop

Brooke Collins, x1050Executive Assistantbrooke.collins@myleverage.com

CommunicationsMike Bridges, x1022VP, Communications & Marketingmike.bridges@lscu.coop

Amy Jowers, x1020Director, Information Servicesamy.jowers@lscu.coop

Joseph Davis, x1014Communications Coordinatorjoseph.davis@lscu.coop

ComplianceBill Berg, x1028VP, Compliance Training & Informationbill.berg@lscu.coop

Scott Morris, x2165Director, Regulatory Advocacyscott.morris@lscu.coop

Cooperative InitiativesLaura Vann, x2181VP, Cooperative Initiativeslaura.vann@lscu.coop

Adena Whitman, x2134Director, Member Relationsadena.whitman@lscu.coop

April N. Ales, x1038Member Relations Specialistapril.ales@lscu.coop

David LeNoir, x2158Member Relations Specialistdavid.lenoir@lscu.coop

Judy Scott, x1062Member Relations Specialistjudy.scott@lscu.coop

Leonard Parkhurst, Jr., x1154Director, Southeastern CreditUnion Foundationleonard.parkhurst@lscu.coop

EducationJulianne Talley, x1148Director, Conferencesjulianne.talley@lscu.coop

Teresa Gray, x2110Director, Eventsteresa.gray@lscu.coop

Brandy Norvell, x2172Events Coordinatorbrandy.norvell@lscu.coop

Becki Payne, x2129Association Services Support Specialistbecki.payne@lscu.coop

Governmental AffairsJared Ross, x1012VP, Governmental Affairsjared.ross@lscu.coop

Jason Cochran, x2159Director, Governmental Affairs (AL)jason.cochran@lscu.coop

Blake Westbrook, x2164Grassroots & Political Action Coordinator (AL)blake.westbrook@lscu.coop

Andrew Gonzalez, x1010Grassroots & Political Action Coordinator (FL)andrew.gonzalez@lscu.coop

Finance & AdministrationScott Morgan, x1110SVP, Finance & Administrationscott.morgan@lscu.coop

Debbie Caruthers, x1116Director, Accountingdebbie.caruthers@lscu.coop

Mike Couey, x2136Accounting Managermike.couey@lscu.coop

Chris Staggs, x2127Staff Accountantchris.staggs@lscu.coop

Susan Sungelo, x2153Staff Accountantsusan.sungelo@lscu.coop

Angie Meisenheimer, x1114Staff Accountantangie.meisenheimer@lscu.coop

Josh Booth, x1118Staff Accountantjosh.booth@lscu.coop

Jason Neifield, x1142Human Resources Managerjason.neifield@lscu.coop

Di Troch, x1054Operations Assistantdiana.troch@lscu.coop

Sue McKenzie, x1124Operations Assistantsue.mckenzie@lscu.coop

Tameka Dukes, x2178Shared Branching Managertameka.dukes@lscu.coop

Phillip Tyre, x1132Director, Information Technologyphillip.tyre@lscu.coop

Tyrell Baker, x1136Network Administratortyrell.baker@lscu.coop

LEVERAGE

Marvin Garland, x1102EVP & COOmarvin.garland@myleverage.com

Transactional ServicesLarry Rodriguez, x2169VP, Transactional Serviceslarry.rodriguez@myleverage.com

Janice Jordan, x2176Director, Transactional Servicesjanice.jordan@myleverage.com

Win Cooper, x2115Sr. Transactional Services Specialistwin.cooper@myleverage.com

Lynda Knox, x2135Service Corporation Support Specialistlynda.knox@myleverage.com

Chris Dirmann, x1182Director, Card Serviceschris.dirmann@myleverage.com

David Todd, x1198Member Services Representativedavid.todd@myleverage.com

Robert Plant, x1194P/T Member Services Representativerobert.plant@myleverage.com

Linda Medina, x1200P/T Member Services Representativelinda.medina@myleverage.com

Angela Harris, x1190Card Services Managerangela.harris@myleverage.com

Amy Bryant, x1196Sr. Member Services Representativeamy.bryant@myleverage.com

Belinda Wilson, x1184Member Services Representativebelinda.wilson@myleverage.com

Barbara Parsont, x1186Member Services Representativebarbara.parsont@myleverage.com

Michelle Kelly, x1192P/T Member Services Representativemichelle.kelly@myleverage.com

42 A Magazine of the League of Southeastern Credit Unions SIGNAL: Vol. 3, Issue 3

Audit & ConsultingKeith McMurtrie, x2133VP, Audit & Consulting keith.mcmurtrie@myleverage.com

Bonique Turner, x2124Auditorbonique.turner@myleverage.com

Kathy Reynolds, x2121Auditorkathy.reynolds@myleverage.com

Marya Sampson, x2132Auditormarya.sampson@myleverage.com

Product ManagementKeith Hopkins, x1170VP, Product Supportkeith.hopkins@myleverage.com

Deirdre Rhodes, x1104Product Support Managerdeirdre.rhodes@myleverage.com

Jean Noel, x1188Product Support Specialistjean.noel@myleverage.com

Lori Vary, 941.747.9646Director, ePurchasinglori.vary@myleverage.com

Brandt Vinson, x1044ePurchasing Coordinatorbrandt.vinson@myleverage.com

Tori Shamy, x1172Product Manager, Merchant Lendingtori.shamy@myleverage.com

MarketingApril Banta, x1162Director, Marketingapril.banta@myleverage.com

Detra White, x1156Production Artistdetra.white@myleverage.com

Ron Dod, x1030Marketing Coordinatorron.dod@myleverage.com

Product DevelopmentJohn Brumit, x1120Director, Product Developmentjohn.brumit@myleverage.com

Business DevelopmentMary Elicia Del Santo, x1144VP, Business Developmentme.delsanto@myleverage.com

Anita Fumaria, x1140Business Development Consultantanita.fumaria@myleverage.com

Steve Pullara, x1164Business Development Consultantsteve.pullara@myleverage.com

Michael Baswell, x2151Business Development Consultantmichael.baswell@myleverage.com

Richard Abt, x1152Account Manager, Card Servicesrichard.abt@myleverage.com

LEVERAGE PARTNERS

CO-OP Financial ServicesEnhance services to your members by expanding your ATM service delivery channels through more than 28,000 surcharge-free ATMs.

ComplyTracAutomated compliance solution that streamlines compliance procedures and reduces costs through procedural controls to meet compliance requirements on a single platform and helps effectively execute regulations through automated software.

Corporate Business SolutionsStreamline and enhance your payroll, benefits administration, and employee legal compliance processes by outsourcing to Corporate Business Solutions, a Professional Employer (PEO) and Administrative Services Organization (ASO).

CU Members MortgageEarn fee income based upon your participation in the origination and/or temporary funding of loans and build your mortgage loan portfolio.

CU Solutions GroupCU Solutions Group provides credit unions with marketing, membership enhancements, technology, and performance management solutions.

CUNA Mutual Group

Insurance and protection for your credit union and members; lending solutions and marketing programs for bottom-line impact; employee benefits to recruit and retain the right employees. CUNA Strategic Services, Inc.Access for credit unions to products, services, and technologies.

John M. Floyd & AssociatesEarn non-interest income and provide an overdraft protection program to your members.

Landrum ProfessionalOutsource most of your daily human resources functions with Landrum Professional, a full-service PEO.

NADAAccess the most current used vehicle values and new vehicle invoices for a wide range of vehicles, 24/7.

NewGroundEnhance your retail delivery with a combination of branding, consulting, branch design and build, marketing, and culture development.

Offi ce DepotSave money on office supplies, break room supplies, promotional products, furniture, and computers.

OneMain FinancialSolve out-of-area repossession needs with experts dedicated to providing the most up-to-date information including state laws, FDCPA laws and regulations, and the newest tracking software.

O’Rourke & AssociatesAn exclusive credit union focus on executive and management recruiting.

Remarketing by GETake advantage of preferred auction lanes and best-in-class processes to maximize your recovery dollars for auto liquidation.

Telecom Recovery

Quickly recover communications in the event of a disruption in telephone service. Telecom Recovery offers an affordable protection service that enables callers to get through to a credit union’s main phone or fax number, through rerouting technology and recover inbound calls to mass notification. That’s LifeLEVERAGE ’s merchant lending platform links credit unions with businesses in their communities to provide point-of-sale financing to consumers.

VERAFINDetect BSA/AML fraud with leading-edge compliance and fraud detection software.

Vining SparksCombining strategic support services with broad trading capabilities to execute fixed income securities transactions.

VINtekComplete collateral management solutions help increase operational efficiencies by streamlining processes, reducing user errors, and managing expenses every day.

For more information on any of these solutions, contact a Business Development Consultant at consult@myleverage.com or visit www.myleverage.com.

For information on partnership with LEVERAGE, contact a Product Development Consultant at partner@myleverage.com.

Corporate CU PARTNERS

Corporate America Credit UnionThomas D. Bonds, president4365 Crescent RoadIrondale AL 35210205.313.4300www.corpam.org

43 SIGNAL: Vol. 3, Issue 3 www.lscu.coop

SIGNAL MAGAZINE RETURN ADDRESS3773 COMMONWEALTH BOULEVARD TALLAHASSEE FL 32303

22 INVERNESS CENTER PARKWAY, #200BIRMINGHAM AL 35242

LEADERSHIP guide people toward greata c c o m p l i s h m e n t sEDUCATION better your knowledge to positively affect operations

ACHIEVEMENT r e a l i z e y o u r g o a l s b y e x p a n d i n g e x p e r t i s e DEVELOPMENT build industry relationships to cultivate higher development A t t e n d t h e L D C !D E V E L O P Y O U R

2012 Leadership Development ConferenceNovember 7-10, 2012 | Point Clear, ALw w w . l s c u l e a d e r s h i p . c o m