CURRENT Newsletter | 1 September 2020 - Virginia Credit Union League

CUNA announced today that the 2021 CUNA Governmental Affairs Conference (GAC), the premier event for political impact in the credit union industry, will move to an interactive virtual format on March 2 to 4, 2021. The conference will be delivered via a premium virtual platform that will bring together credit unions, leagues, thought leaders and policymakers for a dynamic online experience.

To learn more and request to be notified when registration is available, visit cuna.org/gac.

League Providing Virtual Workshops on IRAs

This year will see the most significant changes to individual retirement accounts (IRAs) in more than a decade.

Your League is providing a two-day Essentials and Advanced Virtual IRA Workshop on Sept. 22 and 23 from 9 a.m. – 3:45 p.m. each day. This interactive workshop will be led by instructors presenting live with opportunities to pose questions and engage in the discussion.

League’s Free ‘Shift Happens’ Webinar Series Continues Sept. 8

Your League is offering an ongoing series of free webinars, which we’ve titled “Shift Happens.” Registration is now open for the following sessions:

Whether You Realize It Or Not...Your Brand Has Evolved (Sept. 8)
Contactless Cards Are Gaining Momentum (Sept. 15)

We’ve also added archived versions of the following webinars:

Learn more

Class Action Lawsuits Again Swirl Around Collection Letter Deficiencies

Plaintiff attorneys continue to be successful with class-action lawsuits against credit unions due to deficiencies in collection letters. Specifically, Notices of Intent to Sell Collateral that has been repossessed and Deficiency Notices sent after the collateral has been sold are the letters/notices targeted. Lack of detail in these notices is being scrutinized.

These lawsuits have been going on for several years with credit unions being required to waive remaining deficiency balances, return payments toward deficiency balances, return 10% of the principal amount of the original debt, and pay statutory damages.

View Alert

Compliance / Regulatory Affairs News

Treasury, IRS, Issues Guidance on Deferring Certain Employee Social Security Tax Withholding

The Department of U.S. Treasury (Treasury) and Internal Revenue Service (IRS) yesterday issued guidance implementing the Presidential Memorandum issued on August 8, 2020, allowing employers to defer withholding and payment of the employee's portion of the Social Security tax if the employee's wages are below a certain amount.

Learn more

Offsite Examinations Would Have Positive Impact on CUs

CUNA anticipates that NCUA moving to more offsite examinations will have a positive impact on the industry, despite an early learning curve. CUNA submitted comments Monday on NCUA’s Request for Information (RFI) on future examinations using technology.

The letter emphasis the importance of NCUA adhering to “even more rigorous security standards [than FICUs] given the fact that the agency receives sensitive information from all FICUs. It is critical that the agency not only adhere to such standards but also be transparent in its compliance with safeguards. We urge the agency to share information with the industry that is sufficient to allow credit unions and other relevant stakeholders to ensure the agency—including any third-party vendors it works with—follows proper protocols.”

Learn more

News About Credit Unions

Deposits Flow into US CUs in 2Q2020

Several of the largest U.S. credit unions were able to take advantage of macroeconomic conditions and add deposits at a double-digit percentage rate in the second quarter of 2020. Some of those institutions also booked Paycheck Protection Program loans.

Government stimulus programs, tax payment delays and a slowdown in consumer spending fueled overall share and deposit growth of 8.3% on a quarter-over-quarter basis, eclipsing the 7.5% growth rate of U.S. banks and thrifts. In the previous eight quarters, credit union growth had ranged from 0.1% to 4.3%. (S&P Global Market Intelligence, Sept. 1)

Education & Training

New Virtual Conference for Governance, Risk Management and Compliance Set for September

Unifying governance, risk management and compliance will be the lead topic at the just-announced CUNA Governance, Risk Management & Compliance Leadership Virtual Conference brought to you by CUNA Compliance & Risk Council with Rochdale Paragon Group, scheduled for Sept. 21-23.This virtual conference covers current information on creating and maintaining a robust credit union governance, risk management and compliance (GRC) program to reduce risk and improve control activities.

Learn more

Pandemic Response

COVID-19 Could Permanently Reduce Branch Traffic at US FIs

Bank branch traffic has dropped substantially since the outbreak of the coronavirus due to customer concerns about their safety.

Nearly half of bank customers view branch visits as less safe due to COVID-19 and those fears appear to have driven most customers to access branches less often. While there are measures banks can take to alleviate safety concerns, changes in branch visitation could be long-lasting, according to S&P Global Market Intelligence's annual U.S. mobile banking survey.

Persistent fears around branch safety along with a consumer population getting increasingly comfortable using online and mobile channels could make the recent reduction in branch traffic a more permanent one. Just 23% of survey respondents who visited branches less frequently post-COVID anticipate increasing their frequency of visits after all virus-related restrictions are lifted nationwide. Meanwhile, nearly one-third of customers who have visited branches less often since the pandemic erupted expect future visits to be even less frequent. (S&P Global Market Intelligence, Aug. 31)

View report

U.S. Economy Needs $1 Trillion-Plus in Fresh Coronavirus Stimulus, Says World's Biggest Hedge Fund

The co-CIO of the world's largest hedge fund told CNBC on Tuesday that the U.S. economy continues to need significant fiscal support in order to sustain its recovery from the coronavirus-induced devastation.

Greg Jensen of Bridgewater Associates said the firm estimates that the price tag for another coronavirus relief bill is between $1.3 trillion and $1.7 trillion in order for the U.S. economy to continue "in the way that it's been going."

"And it depends what it's used for. ... The policy that gets directly spent in the economy is much more effective per dollar than the dollar that's preventing more bad things from happening," Jensen said in a "Squawk on the Street" interview. "The money for states is going to prevent negatives. The stimulus checks will be direct positives."

Jensen's comments come as Republicans and Democrats in Washington continue to squabble over the size and scope of another piece of Covid-19 stimulus legislation while millions of Americans remain out of work and businesses grapple with continued disruption.

Learn more

Marketing News

Preparing for the Next Generation of Members: Generation Z

One of the keys to success for any financial institution is to adjust their approach to changing demographics. That’s because as groups age, their market impact moves accordingly. Right now, the youngest generation, known as Gen Z, is classified as anyone born after 1997, meaning the oldest in this group is just 23.

While it may seem unnecessary to focus on a group that’s in college or just entering the workforce, know that these individuals will eventually become the dominant and largest demographic, as millennials are now. In fact, they already represent 40% of the US consumer purchasing power, according to a 2019 report from Porter Novelli and Cone. Considering the fact many credit unions struggle to reach millennials, this task is likely to become more challenging with Gen Z.

Learn more

« Return to "CURRENT Newsletter" Go to main navigation