Transcript CUNA-League Membership Presentation 3rd Quarter - 2014 THE CREDIT UNION SYSTEM CUNA Affiliated Credit Unions (Members of CUNA and State Leagues) CU Leagues CUNA Strategic Services, Inc. (CSS) For profit.

CUNA-League Membership
Presentation
3rd Quarter - 2014
THE CREDIT UNION SYSTEM
CUNA Affiliated
Credit Unions
(Members of CUNA and State
Leagues)
CU Leagues
CUNA Strategic Services, Inc.
(CSS)
For profit subsidiary
51% owned by CUNA
49% owned by Leagues/LSCs
League Service Corporations
Credit Union House, LLC
CUNA Affiliated Entities & Partners
National Action and
Response Program
INVEST IN THE CUNA-LEAGUE
SYSTEM
• Enjoy the benefits of membership in your
Tennessee Credit Union League and
assurance that 237 employees of the Credit
Union National Association are working for
you….
• Along with a network of 42 state or regional
leagues protecting credit union interest in all
50 states…
• Resulting in unsurpassed strength of…
– 6,500 credit unions/99 million memberships
– 272,000+ employees/82,000 volunteers
THE POWER OF ASSOCIATION:
The CUNA-League System
OUR TRADE ASSOCIATION
SYSTEM VISION: Americans choose credit
unions as their best financial partner.
CUNA MISSION: CUNA supports, protects,
unifies and advances the credit union
movement.
CUNA OVERVIEW
• AACUL
• National Credit Union Foundation
• World Council
• CUNA Mutual Group
• Credit Union House
• Credit Unions for Kids
• other credit union organizations
Relationships
Member
Services
• Professional Development
• Marketing & Personal Finance
• Business & Consumer Publishing
• Strategy & Research
• Economics & Statistics
• Operations
Trade
Association
Activities
• Legislative & Regulatory Advocacy
• Regulatory Compliance
• Political Involvement & Grassroots
• League Relations
• Economics & Statistics Research
• Communications & PR
• State Governmental Affairs
Washington, D.C. office: 66 employees
$26 million in dues/affiliation revenue
CUNA’s most
important role
is to be your
ADVOCATE
• CUNA Councils
• CUNA Strategic Services
Madison office: 171 employees
$31 million gross revenues from Products
& Services
CUNA SENIOR MANAGEMENT
Interim CEO
Bill Hampel
Washington
Senior Vice President & Chief
Financial Officer
Brian Nelson
Madison
Executive Vice President
Government Affairs & Special
Assistant to the President
John Magill
SVP, Legislative Affairs
Ryan Donovan
SVP, Political Affairs
Richard Gose
Executive Vice President
Systems Relation &
Executive Director ACCUL
Susan Newton
SVP, League Relations
Pat Sowick
Executive Vice President
General Counsel
Legal & Regulatory
Eric Richard
Senior Vice President Human
Resources & Facilities
Harley Skjervem
Madison
Senior Vice President Communications
Pat Keefe
VP & Interim Chief Economist,
Research & Policy Analysis
Mike Schenk
Executive Vice President &
Chief Operating Officer
Jill Tomalin
SVP, Associate General
Counsel
Susan Parisi
SVP Strategic Alliances
Wes Millar
SVP & Deputy General
Counsel
Mary Dunn
SVP Center for Professional
Development
Todd Spiczenski
SVP, Associate General
Counsel & Federal
Compliance & Leg Analysis
Kathy Thompson
SVP Sales & Marketing
Terry Costin
CUNA BOARD DISTRICTS
HOW DUES ARE SPENT (2013)
State of the Movement
STATE OF THE MOVEMENT
STATE OF THE MOVEMENT
SYSTEM VISION STATUS UPDATE
aSmarterChoice ANALYTICS
STATE OF THE MOVEMENT
American Consumer Satisfaction
Index: Credit unions ‘set the bar’
•ACSI says:
–
–
–
CUs best among all service
industries
CUs seeing more growth
Challenge: How best to serve
new members?
‘Best in Class’
100
90
80
70
60
50
08
Banks
09
10
Credit unions
11
12
13
Bank of America
ACSI, Dec. ‘13
Legislative Action
LEGISLATIVE AGENDA
Advocacy is CUNA’s chief role, particularly
before Congress
Housing
finance
reform
Charter
enhancement
MBL and
Supplemental
Capital
Protecting
the CU tax
exemption
CREDIT UNION TAX STATUS
Don’t Tax My Credit Union is a national campaign
dedicated to ensuring Congress doesn’t raise taxes
on 99 million credit union members nationwide and
preserves financial choice for American consumers.
Share your story and tell Congress: Don’t Tax My
Credit Union!
www.DontTaxMyCreditUnion.org
#DontTaxMyCU
@CUNAAdvocacy
CREDIT UNION TAX STATUS
Don’t Tax My Credit Union State Print Ad
Don’t Tax My Credit Union National Online
Ads
CAPITOL HILL RESULTS ARE
WHAT MATTER
•
Regulatory Relief
–
–
A number of bills that passed the House or the House Financial Services Committee are pending in the
Senate.
CUNA efforts have focused attention on the need for regulatory relief for credit unions. The following are
bills moving through the legislature which would directly benefit credit unions:
•
•
•
•
•
•
•
•
Risk-Based Capital Engagement
–
–
–
•
Privacy notification legislation, passed the House and is pending in the Senate.
IOLTA Legislation, passed the House and is pending in the Senate.
Privately Insured Credit Unions/FHLB System, passed the House and is pending in the Senate.
Regulatory Clarity, passed the House Financial Services Committee.
Points and Fees/Ability to Repay, passed the House Financial Services Committee, bill was introduced in the
Senate.
Qualified Mortgage Treatment for Loans Held in Portfolio, passed House Financial Services Committee.
Exam Fairness, bills in both the House and the Senate pending.
Over 324 members of the House of Representatives signed onto a letter to NCUA Chairman Matz.
To date a dozen additional members have written individual letters, including leadership in the Senate
Banking Committee and the House Financial Services Committee.
Former Banking Committee Chairman Alphonse D’Amato wrote to the NCUA expressing that it was not
Congress’ intent in 1998, when prompt corrective legislation passed, to require credit unions to meet a ‘well
capitalized’ level above the adequately capitalized level indicated.
Tax Status Preserved
–
–
Chairman of the Ways and Means Committee, David Camp, maintained the credit union tax exemption in
his tax reform draft.
Tax reform will likely pick up on the Camp draft leaving credit unions in a good position for the next round of
tax reform talks next session.
RECENT LEGISLATIVE
ACCOMPLISHMENTS
CARD Act Fix
Kept CFPB examiners
out of all but the largest
credit unions
Patent Reform to
help keep credit
unions out of court
CFPB
Privilege Bill
Defeated an amendment
limiting ATM fees to $.50
Corporate Stabilization
Act
Defeated an amendment
imposing a usury ceiling
on state chartered credit
unions
NFIP Extension
ENHANCED REPUTATION ON
CAPITOL HILL
• More than 50 invitations to testify before
Congress since 2007.
• Millions of contacts with Capitol Hill through
the interchange battle and the Don’t Tax My
Credit Union Campaign.
• Credit unions are influencing public policy and
well positioned to continue this positive
contribution into the future.
WORKING WITH THE STATES
• CUNA’s State Government Affairs assists
Leagues in their advocacy work at the state level:
– Tracking bills across the U.S. (1200+ in
2014Legislative Sessions)
– Coordinating credit union representation at national
conferences of state legislators (NCSL/ALEC)
– Conducting compelling research used to advocate
or defeat credit union impactful legislation
– Facilitating networking and sharing of best
practices on state level advocacy
WORKING WITH THE STATES
In the states, the leagues advocate for credit
union interests to expand powers and protect
against threats
•Issues we see this year:
– Tax threats
– Foreclosure reform
– Data security & plastic card issues
REDUCING THE REGULATORY
BURDEN
• Obtaining results is the best relief for credit unions and here is
some of what we’ve helped achieve:
– General improvements in the regulatory environment, achieved in part
by working with NCUA on its regulatory modernization initiative
– An improved examination environment for a number of CUs, as well
as guidance from NCUA aimed at reducing DoRs and LUAs
– Improvements to CFPB’s mortgage rules:
• As CUNA urged, the CFPB did not amend its definition of “finance charge,”
which would have impacted the APR calculation
• As CUNA urged, the CFPB did not require in its final TILA/RESPA forms
disclosure of “lender cost of funds”
– Improvements to CFPB’s remittance transfer regulation, including
changes in the final rule that create flexibility by allowing the sender to
estimate based on information available to the sender the amount of
funds that will be received in the foreign country
REDUCING THE REGULATORY
BURDEN
• But, we know there is MUCH MORE to do and keeping further
burdens off your shoulders is our highest Regulatory Advocacy
priority. Here are examples of what we have helped prevent or
improve:
Improved
Prevented
•
NCUA’s final rules on loan
participations and derivatives
•
Even more CFPB requirements
•
Additional TCCUSF assessments
•
NCUA’s accounting requirements
for TDRs
•
Higher operating fees
•
Clearer guidance on NCUA’s use
of DoRs
•
Lower interchange fees for most
credit unions
•
CFPB’s advisory councils
•
CFPB’s recognition of the
importance of credit unions
REDUCING THE REGULATORY BURDEN
• Regulatory issues in focus now:
– NCUA’s risk-based capital proposal (this remains a top regulatory
issue even though the comment period has officially closed)
– CFPB
• Small creditor exemption (this currently exempts creditors with assets of $2
billion or less that have originated 500 or fewer first lien loans in the previous
year; we continue to urge CFPB to increase the threshold of 500)
• Definition of small servicer (this currently excludes 501(c)(3) entities; we
continue to urge the CFPB to amend the definition to also exclude state
(501(c)(14)) and federal (501(c)(1)) credit unions)
• Prepaid cards
• Overdraft protection
– Department of Education’s anticipated proposal on student loans
– FASB’s anticipated changes to accounting for credit losses under
GAAP
– Payments
– Cyber and data security
Motivating Involvement
GRASSROOTS STRENGTH
Credit Unions
•233,596 full-time CU
employees
•31,605 part-time CU
employees
•99 million CU members,
64% willing to take
action
̶ versus ̶
Banks
•more than 2.1 million
people work for banks
The Member Activation
Program (MAP):
Dear Member:
Harnessing the strength of our
members
•Of credit union members receiving
advocacy emails:
– 86% are more likely to do a
greater share of personal
banking with a CU
– 78% are okay with their CU
contacting them on political
and legislative issues
Being in a credit union means you’re part of a not-for-profit financial
cooperative. CommunityAmerica truly belongs to you and thousands of
members like you.
Credit unions have been exempt from federal tax for nearly 100 years. Unlike
banks that focus on making profits for investors, credit unions return their
earnings to members like you. That means credit unions (link to site) can
offer low fees, higher interest rates on savings, and more affordable loans for
middle class families.
Big banks exist to make a profit for their shareholders and investors. Credit
unions exist to provide quality financial services to our members. CACU
offers a good deal to consumers and gives you a choice over using a forprofit bank.
Now, the big banks want to tax credit unions so they can make bigger profits
for their Wall Street investors. (Website redirect)
Please view this short video that explains the issue in about two minutes:
MOTIVATING POLITICAL ACTION
CUNA political program takes action on many levels.
•We accomplished:
– Over $3.1 million raised thru March 2014; on track to spend $4+ million for pro-CU
candidates in 2014 elections
– 6th largest trade association PAC in the nation
– Matched 80 million credit union members to their congressional districts (
Project Zip Code)
– Elected 26 of the 27 Senate candidates we backed in ‘12
DATA BREACH RESEARCH
2013 CUNA Voter Survey
Who do you think is most responsible when people’s credit card information is stolen?
MOTIVATING POLITICAL ACTION
2013 CUNA Voter Survey
If banks and credit unions disagreed, who would you side with?
93
51
-36
Sample*
64
45
-4
-21
CU Member /
Primary*
CU Member / Not
primary*
Republicans*
Side w/ Banks
Side w/CU's
Even among non-members, if
they see a difference between
banks and CUs, very often
they will support CUs over
banks
-41
57
51
-33
-36
Democrats*
Ind/Split*
Non members:
Credit Unions
Banks
Very different
53.2%
45.1%
Somewhat different
42.0%
44.7%
Pretty much the same
28.5%
56.9%
REACHING THE NATIONAL PRESS
Key CUNA Initiatives
MEMBER-FACING
COMMUNICATIONS
The President’s Report
• Weekly email distribution to credit
union CEOs and board members
• Covers the most pertinent
information for the credit union
industry
MEMBER-FACING
COMMUNICATIONS
In the News
• Weekly email distribution to credit
union leaders
• Summarizes the weekly media
coverage for CUNA and credit unions.
MEMBER-FACING
COMMUNICATIONS
Credit Union Magazine
• Largest audited circulation in
credit union industry
• Credit union Editorial Advisory
Board
• Coverage spans timely and
critical topics for credit unions
MEMBER-FACING REGULATORY
ADVOCACY
CUNA Legislative
Update
• Weekly distribution to credit
union leaders
• Covers what you need to
know about what’s happening
on the Hill
MEMBER-FACING REGULATORY
ADVOCACY
CUNA Regulatory
Advocacy Report
• Weekly distribution to credit
union leaders
• Covers most important
changes in Washington for
credit unions – and what
CUNA is doing to monitor,
analyze, and influence
government agencies and
federal law
MEMBER-FACING NEWS
CUNA News Now
• Daily distribution to 40,000
credit union subscribers
• This fast-breaking and
comprehensive publication
covers news important to
credit unions
MEMBERSHIP@WORK
• Quarterly publication of dues dollars
at work
• Provides a snapshot of the activities,
efforts and results the associations
at work
MEMBER-FACING
COMMUNICATIONS
CUNA on Social Media
• CUNA employ’s social media to
garner closer relationships with
members and the industry while
quickly sharing up-to-date news.
• CUNA can be found on :
– Twitter: @CUNA
– LinkedIn
– Google +
KEY INITIATIVES
NCUA’s Risk-Based
Capital Proposal
•Action center on cuna.org
•Comment letter
•Listening sessions
•Blog
•Free webinar
•Video and articles for
background
•CU-specific calculators
KEY INITIATIVES
UNITE FOR GOOD: WORKING TOGETHER
FOR A SHARED CREDIT UNION VISION
ENGAGEMENT AND IMPACT.
•UniteforGood.org upgrade in
February 2014
• 36,000 page views since
launch
• News stories every day
•New action checklists by discipline
•Kickoff videos
•League presentations
•League and CU toolkits
•GAC and ACUC activity
•Extensive trade coverage
•Continued CUNA and League
engagement
A SHARED VISION FOR CREDIT UNIONS
• What do credit unions want to be?’
– Able to grow?
– Flexible in services?
– Service to more members?
• Put movement on path of long-term growth:
– Membership, assets, credit unions
– ‘Best partner’ in financial services
• Input from credit union leaders, leagues and
system stakeholders
OUR SHARED VALUES
OUR SHARED PURPOSE
Member-driven
Cooperative principles
Community focused
Financial education
Collaborative
Credit unions are dedicated to advancing the
financial well-being of Americans.
OUR SHARED VISION
Americans choose credit unions as their
best financial partner
OUR SHARED AGENDA
Remove Barriers
Ensure a favorable political,
legislative, legal and regulatory
environment for credit unions and
consumers
Enhance the credit union charter
as the most robust for delivering
financial services to members
Create Awareness
Actively engage with members
and non-members to increase
awareness of credit union value
Foster Service Excellence
Deliver the best: convenience,
experience, service, technology,
education and financial resources
Attract, retain and develop younger,
diverse leaders, employees and
members
PROOF OF OUR SUCCESS BY 2023
•55 million PFI members
•
Total member value of $20 billion
RAISING AWARENESS
•
•
aSmarterChoice.org completed a redesign and relaunch in early spring 2014
The aSmarterChoice blog launched in January 2014 and contain content related
to financial literacy and increasing consumer awareness of credit unions.
CUNA Product & Service
Offerings
INVESTING IN YOUR STRATEGIC
BUSINESS NEEDS
STRATEGIC RESOURCES FOR ALL
ASPECTS OF A CREDIT UNION
compliance
marketing
finance
executives
technology
training/
human
resources
lending
operations
security
INSPIRING LOYALTY, BUILDING
MEMBERSHIP
CUNA supports credit unions in their
everyday community involvement –
inspiring loyalty among members and
community recognition
•We provide: financial education
resources and community outreach
events to help build market
awareness, engage members and
deepen relationships
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Youth Week
International Credit Union Day
Financial Microsites for Members
Copy & Art for Marketing
• Consumer websites
recognized with prestigious
Eddie awards
• 1000+ credit union
subscribers reaching tens of
thousands of members
• 2,000 articles, ads, spot art,
resource boxes, photos,
youth activities, charts, direct
mail letters and brief tips
• 1.1 million+ images
CREATING SUCCESSFUL
STRATEGIES
CUNA offers insight and information to
help boards and senior management
teams navigate complex operating
environments and move forward
•We provide: news and insights, trend
reports, benchmarking data and strategic
planning tools for credit union
management and boards
– Salary & Benefits Reports
– Credit Union Environmental Scan
(E-Scan)
– Market & Member Loyalty Research
Bill Hampel
CUNA Interim CEO
STRATEGY, RESEARCH &
SURVEYS
• We provide: news and insights,
trend reports, benchmarking
data and strategic planning tools
for credit union management
and boards
– Salary & Benefits Reports
– Credit Union Environmental Scan
(E-Scan)
– Membership Benefits Reports
– Market & Member Loyalty Research
CUNA offers insight
and information to
help boards and
senior management
teams navigate
complex operating
environments and
move forward
EXECUTIVE ADVANTAGE
More than 6,000 credit union executives belong to CUNA
Councils, the industry’s most prestigious and influential
professional organization
•We provide: member-exclusive resources, a community to
network with other CU leaders, and real world solutions to
the top strategic issues important to credit unions.
– CUNA Councils:
• CFO
• Human Resources/Training & Development
• Lending
• Marketing & Business Development
• Technology
• Operations, Sales & Service
– Conferences
– Awards & Recognition
PROFESSIONAL DEVELOPMENT
Credit unions turn to CUNA to reach their
professional development goals through
executive networks, management training
and improved sales and service skills
•We provide: professional development,
networking, onsite training and exposure to
industry experts and critical credit union
topics
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6 CUNA Councils
CUNA Creating Member Loyalty™
CUNA Volunteer Network
CUNA Management School
CUNA Leadership Institute
IMPACTFUL EVENTS
CUNA’s premier events offer insights, networking and
education that benefits credit unions
•We provide: access to top political and government
figures, forward-thinking ideas and strategies, and the
tools and tactics for successful implementation
– CUNA Governmental Affairs Conference
– CUNA America’s Credit Union Conference
– CUNA Community Credit Union Conference
SCHOOLS & CONFERENCES
CUNA’s premier events offer
insights, networking and
education that benefit credit
unions
•We provide: access to top
political and government
figures, forward-thinking ideas
and strategies, and the tools
and tactics for successful
implementation
– 50+ discipline-focused events
– 22,000 credit union
professionals and volunteers
trained via webinars, audios
and face-to-face events in 2013
– Signature Events
Upcoming 2014 Schools & Conferences
July 21
Aug 10
CUNA Business Lending Certification
Institute
CUNA Financial Management School
Aug 14-15
Lending Compliance School
Aug 15
CUNA National Credit Union Roundtable for
Board Leadership
Aug 17
CUNA Economics & Investments Conference
August 18
CUNA FUSE School
Sept 14
CUNA Regulatory Compliance School
Sept 21
CUNA Volunteer Certification School
Sept 22
CUNA Collections & Bankruptcy School
Oct 26
CUNA Bank Secrecy Act Conference
Oct 26
CUNA Experience Learning Live
Nov 3
CUNA Community Credit Union & Growth
Conference
Dec 7
CUNA Supervisory Committee & Internal
Audit Conference
Dec 8
CUNA ERM Certification Institute
Jan 18
CUNA Volunteer Institute
Mar 8
CUNA Governmental Affairs Conference
A LEGACY OF EXCELLENCE
• CUNA Management School has a well-earned
reputation as an outstanding three-year executive
education program. Through this program, credit
union leaders gain:
• Advanced economic business skills training
• Practical credit union applications
• The ability to transform their organizations with
emphasis on leadership, teamwork and
transformation
SRCUS.org
RELEASING POTENTIAL
CUNA’s high-impact, award-winning
training is the choice of thousands of
credit unions for executives, managers,
staff and volunteers
•We provide: online training, disciplinespecific events, comprehensive
compliance training and engaging
volunteers education
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–
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CUNA CPDOnline
CUNA Training Bundle
Webinars, Audios & eSchools
CUNA RegTraC
• 400+ online courses and
exams
• In 2013, 29,000
professionals from
1,300 credit unions
were trained online
• 20,000 professionals
trained via webinars,
schools or audios
VOLUNTEER INVOLVEMENT
Volunteer Leadership Committee taps experience, seizing of the
core of the movement
•We listen: to ideas for involving more volunteers, providing them
with support, guidance for enhanced volunteer-centered initiatives
– Volunteer Education
– Volunteer Succession
– Political Involvement/Grassroots Mobilization
BOOSTING YOUR BOTTOM LINE
Credit unions save millions each year through CUNA Strategic
Services
•We provide: Quality products and services that help credit unions
enhance member relationships and ensure operational excellence
–
–
–
–
–
–
Compliance
Growth & Retention
Lending
Operations
Security
Technology
CUNA STRATEGIC SERVICES
PROVIDERS
Calendar
Program
Visit us online at cunastrategicservices.com
CUNA STRATEGIC SERVICES, INC.
2013 SUCCESS DRIVERS
• Collaboration between leagues and CUNA
• Growth of credit unions
• Strategic business alliances, building and
managing a portfolio
CUNA STRATEGIC SERVICES, INC.
2014 FOCUS
•
•
•
•
•
Expense management
Security
Membership growth
Volunteers
Compliance solutions
CUNA STRATEGIC SERVICES BUSINESS
MODEL
Alliance
Providers
Credit Unions
Shareholders
- CUNA
- Leagues
SUCCESS OF CSS MODEL
2000 - 2013
• Serve 93% of CUs > $50M in assets
• Contribution to CU System = $35 million
• Total CU savings = $370 million
CUNA STRATEGIC SERVICES, INC.
KEY CONSTITUENTS
Credit Unions
Strategic
Alliances
Shareholders
VALUE FOR CREDIT UNIONS
Champion with Providers
• more than 200 contacts
Champion
with
Providers
Product Education
• more than 125 webinars,
white papers, magazine
articles
Due
Diligence
Quality
Products
Product
Education
Due Diligence
• 27 companies
Competitive
Pricing
Competitive Pricing
•2012 = $35 Million
•Since 2000 = $315 Million
QUALITY PRODUCTS
NEW:
CUNA STRATEGIC SERVICES, INC.
% CUS SERVED BY MARKET
<$50M
$50M-$500M
>$500M
CUNA Strategic Services, Inc.
Market Penetration
Thank you for your continued
trust and support of your
Tennessee Credit Union
League and the Credit Union
National Association