Firefighter Credit Unions Should Use Passion and Technology to Engage Members

Generally speaking, consumers view banking as a chore and commodity. And while we try to compete by offering varying degrees of ease, convenience or price differentiation, it’s simply not enough. Besides, in this interest rate environment, differentiation on price is difficult and adds to the commodity mindset of the consumer. We need to act differently and better align with member needs. We should be talking with our members, not talking at them. Read Complet Article

Electronic Voting, Great article from CUES' magazine about setting up for E-Voting.

Credit unions do a great job in conducting the democratic election of board members. And, in this day and age, many are moving to electronic ballots as a way to better serve members and reduce election costs.

But some inhibiting factors exist. The first is obtaining consent to communicate electronically from a sufficient percentage of the membership to make the process worthwhile. The second devolves from the current National Credit Union Administration’s standard bylaw requirement that obligates a CU desiring to use electronic voting to provide all members, except those who have chosen to receive electronic communications, a paper ballot when sending a “notice of balloting.”
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Executive base pay grew 4.35% in 2010

COVINA, Calif. (1/27/11)--U.S. credit unions' executive base pay increased by 4.35% in 2010--only slightly higher than what was reported in 2009, and significantly lower than the increases seen in the earlier part of the decade.
However, there are signs of the recession lifting, with executives accepting bonuses they voluntarily gave up last year, said Executive Compensation Solutions (ECS) seventh annual Employees and Executive Compensation Benefits Survey for the Credit Union Movement.

ECS is a credit union compensation and benefits provider.

Two notable executive compensation trends since the inception of the survey in 2004 are the increase in the prevalence of pay plans and performance-linked long-term incentive plans, the survey said. The use of severance pay plans has grown to nearly 60% from roughly 20%. In a time of uncertainty, this requires more sophistication in plan design and greater protection for credit union executives, ECS said.

The use of performance-linked long-term incentive plans addresses a concern raised by credit union board members and senior management--how to ensure that all elements of executive compensation adhere to a stated compensation philosophy that results in the overall betterment of the credit union. ECS said it anticipates a continuation of many of the 2010 trends.

"Credit unions were not exempt from the uncertainties the economy presented in 2010," said Don Curristan, ESC principal. "The past 12 months have seen an increase in mergers, consolidations and National Credit Union Administration involvement that only heighten the importance of attracting and retaining the best executive talent needed to take credit unions to the next level.

"A comprehensive executive compensation and benefit philosophy is necessary to achieve this objective," he concluded.

The Credit Union National Association's (CUNA) most recent "CEO Total Compensation Survey" showed that in 2009 total compensation for credit union CEOs nationwide declined, with CEOs experiencing a median net income change of -5%.

CheckAlt Sponsors Police Officers' and Firefighters Credit Union Conferences

CheckAlt provides Check 21 processing to Credit Unions and remote deposit capture (RDC) solutions to its Credit Union business customers. The company's patented software enables the forwarding of check images to the banking system, with additional modules that empower Credit Unions to search, process, and manage inclearing share drafts,while also simplifying return check processing.

"We're pleased to be a part of both the Firefighter Credit Union Summit and the Police Officer's Credit Union Conference," according to Shai Stern, CEO of CheckAlt Payment Solutions. "We believe our Check 21 services are an ideal fit for these groups of Credit Unions, and we are proud to support organizations that play a key role in the financial health of vital members of our community."

"Our Firefighter Credit Unions are pleased to welcome CheckAlt Payment Solutions to their first-year sponsorship of our conference," Bill Rogers, Conference Manager for the Firefighters National Credit Union Summit, said. "Each year our conference grows in attendance and in subject matter, and so the role of sponsors is key."



NCUA Sets Effective Dates for FCU Director Duties Rule

The NCUA rule has set the dates for when federal credit union boards will have to comply with its new director duty regulation.

The regulation will be effective Jan. 27, 2011, and compliance with the financial literacy portion of the rule will be required by July, 27 2011. Directors not elected or appointed until after the Jan. 27 date must satisfy the financial literacy requirements within six months following seating.

The regulation says all FCU directors, including existing directors, must have the ability to read and understand a credit union balance sheet and income statement. “Directors who do not yet have this ability should plan to receive financial literacy training in 2011,” NCUA stated. “Training will be available in workshops presented by NCUA’s Office of Small Credit Union Initiatives, as well as through private sector providers.”

In addition to the financial literacy requirement, Section 701.4 requires that all FCU directors carry out their duties in good faith and in the best interest of the credit union membership.
Credit Union Times