CURRENT Newsletter | 22 September 2020 - Virginia Credit Union League

The Global Women’s Leadership Network Virginia Sister Society Committee is excited to offer a new virtual program next month. We are working with Lynda McNutt Foster, CEO of Cortex Leadership Consulting, to provide two virtual leadership events on AGILITY - Today’s Leadership Super Power.

We are living in an environment of constant change and are all faced with increased stress and anxiety. It’s time to transform yourself and your team. If you’re ready to build your AGILE SUPERPOWER, then this two-hour virtual program is for you! If you’re interested in participating in these events, please be prepared to:

Do pre-work and a pre-quiz prior to the virtual event.
Participate in both large and small group discussions on camera.
Share your challenges and learn from others.
Find real solutions to build your leadership superpower!

Seating is limited. Please only register for one event.
View the event flyer here.

We look forward to ‘seeing’ you there!

CUNA Mutual Group’s ULEND Academy Set for Nov. 2-6; ‘Next-Level’ Training on Lending

Your League is proud to offer CUNA Mutual Group’s popular ULEND Academy Nov. 2-6 as a virtual learning experience for credit union lenders looking for real-world solutions to today’s toughest lending challenges.

The curriculum guides lenders from foundational to advanced skill levels in all lending communication channels and across all stages of the loan process - origination, underwriting, and closing - with cross-selling, consultation, and compliance woven throughout. ULEND Academy is set up as a virtual learning workshop within six, 60-to-90-minute daily sessions where participants will discuss, learn, and then apply.

Learn more | Register

Survey: How Have You Helped Members During Pandemic?

We need your help! We have one of the poorest showings nationwide in the number of credit unions participating in the CUNA/League pandemic assistance survey. This short survey captures information on loan modifications, forbearance, emergency loans, fees waived and other assistance you’ve provided to members during the pandemic.

CUNA has graciously given us an extension on reporting until Sept. 25. We’re looking for 2^nd quarter 2020 information, which we know many of you are already reporting to your boards.

Please complete the survey here: https://www.research.net/r/CULCOVID630

We’ve also enclosed a PDF copy of the survey for your review. We would also encourage you to name a point person for submitting information via this survey, as CUNA and the Leagues plan to conduct this survey quarterly, given that information such as this is of keen interest to lawmakers and in advancing our advocacy work.

If you need assistance in completing the survey, please contact your League’s Lewis Wood (800.768.3344, ext. 629 / lwood@vacul.org) or Nicole Widell (ext. 604 / nwidell@vacul.org).

Woods Rogers Launches ‘HR Lifeline’ Webinar Series

2020 has been a year like none other. With consideration for the health and safety of our clients and employees, Woods Rogers' annual seminar series will move to a virtual platform for 2020. We hope you can join us online this fall every Thursday from Oct. 1 to Oct. 29 from 1:30 p.m. - 3:00 p.m.

Since March, the role of the human resources department is front and center in daily operations as issues of racism, inclusion, and equality appear next to COVID-19 in the headlines. While life may have paused for a few months for some businesses, understanding HR laws and issues is now more crucial than ever.

We’ll cover topics that have come out of the COVID-19 pandemic, as well as other top issues that require the guidance of a human resources leader. Beginning with a discussion of how to create an inclusive workplace and closing with our annual overview of actions from the “Big Three,” we’ll bring the same experience to you, just in a different format.

Email seminars@woodsrogers.com or call 540.983.7791 with questions. Session info can be found online at www.woodsrogers.com/hrlifeline2020.

PRICING: $250 for 5 courses. Credit unions can use the code “LOYAL50” to save $50!

CUNA Adjusts Membership Dues to Provide Relief for CUs

The CUNA Board of Directors recently approved a resolution to adjust 2021 affiliation dues to provide relief for credit unions. The adjusted dues will help credit unions continue to prioritize the needs of their employees, members and communities amid the current health and economic emergency.

“As communities across the country address the costs associations with the COVID-19 pandemic, it will be more crucial than ever for credit unions to have access to the tools and solutions that help them fulfil; their people-helping-people mission,” said CUNA President/CEO Jim Nussle. “This move will allow CUNA and the Leagues to continue advocating for your priorities while providing credit unions additional flexibility to deliver for their members and communities. The credit union difference is undeniable, and our current operating environment makes it all the more imperative that we continue to reinforce that difference to lawmakers facing very difficult decisions.”

Learn more

2021 CUNA Governmental Affairs Conference Slated for March 2-4

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 2-4, 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.

CUs on Track to Spend $7M in Support of CU Champions

CUNA is on track to spend $7 million in support of congressional candidates from both sides of the aisle this cycle It is backing candidates who have a history of standing behind credit unions’ mission to deliver not-for-profit, member-owned financial services in communities across the country. According to recent data, 1-in-3 Americans are credit union members and 44% of registered voters belong to a credit union.

“It’s no secret that many voters vote their pocketbook,” said Trey Hawkins, CUNA Deputy Chief Advocacy Officer for Political Action. “We’re leaning into that by reminding voters that who they elect to Congress will have a direct effect on how their credit union is best able to meet their financial needs in this challenging economy.”

To mobilize voters, CUNA created the Credit Unions Vote campaign, which helps over 5,000 credit unions connect local voters with up-to-date information on registering to vote, polling locations and vote-by-mail options, as well as details on the candidates on their ballot.

Learn more

Advocacy News

CUNA Engaged with House Votes, PPP Hearings This Week

CUNA will be engaged in House floor votes and several hearings in both chambers of Congress this week.

The House is expected to consider two pieces of CUNA-supported legislation on the floor this week. The bills are:

Ensuring Diversity in Community Banking Act of 2019 (H.R. 5322), which would, among other things, encourage federal government deposits in Minority Depository Institutions (MDIs), establish a Small Business Administration task force focused on MDIs and Community Development Financial Institutions and require diversity and inclusion reports from each prudential regulator; and
The COVID-19 Fraud Prevention Act (H.R. 6735), which would establish a working group that would be a collaboration between the Securities and Exchange Commission and Consumer Financial Protection Bureau with the goal of helping to protect scam attempts during the pandemic.

CUNA wrote a letter to House leadership Monday in support of the legislation.

Learn more

Compliance / Regulatory Affairs

Pressure Mounts on U.S. Bank Regulators to Stress Test for Climate Change

Regulators need to give financial institutions a kick in the pants to confront business risks posed by climate change, according to a new report out of the Commodity Futures Trading Commission.

Federal agencies — and FIs themselves — should conduct stress tests and other analyses
that measure the financial industry’s resilience to hurricanes, wildfires, floods and other natural disasters. Otherwise the economy could be subjected to shocks as devastating as the fallout from the coronavirus pandemic, the report said.

U.S. regulators have paid more attention lately to climate change and the increasing frequency of severe weather events, but they had stopped short of embracing stress testing for climate risks. The CFTC study, called “Managing Climate Risk in the U.S. Financial System,” stands out for directly addressing the financial implications of environmental threats and recommending specific actions to address them. (American Banker, Sept. 20)

Financial Services / Marketplace News

Largest Banks Keep Winning Market Share as Deposits Soar

Bank of America Corp. remained atop the U.S. deposit throne for the third year in a row as the industry's heavyweights continued to win market share.

Bank of America's total deposits grew 28 percent year-over-year to $1.747 trillion, according to the Federal Deposit Insurance Corp.'s annual Summary of Deposits survey as of June 30. As a group, the top 15 largest banks continued a long-running trend of taking market share from smaller banks, gaining 145 basis points over the last year to 56.2 percent of all bank and thrifts deposits.

Large banks have generally attributed their market share gains to technology investments as more consumers bank online and via mobile devices. Here in Virginia, heavyweights Bank of America, Truist and Wells Fargo hold a 50.6 percent share of the deposit market as of June 30, 2020, up from 42.2 percent at year-end 2019. (S&P Global Market Intelligence, Sept. 21)

Consumer Spending Still Improving, but Challenges Await

Consumers spent more on their cards in the week ending Sept. 13 than they did a year earlier with gains for restaurants and consumer goods, especially electronics, sporting goods, home furnishings and automotive, according to a PSCU report released Monday.

The St. Petersburg, Fla.-based payments CUSO’s Transaction Trends Update showed debit card spending for Week 37 was 16.4% greater than the year-ago week, and the weekly gain was in line with the four-week average gain of 16.9%. Transactions were up 2.8% and have been positive for 11 consecutive weeks.

Credit card spend was up just 0.9%, which is lower than the four-week average gain of 2.3%. Transactions were down 4.1%, also below the four-week average decline of 3%.

Learn more

Housing Resilience Masks Underlying Weaknesses

Some economists this month have been warning that recent improvements in the economy, including job gains and an exuberant housing market, are masking some underlying realities that will cause further drops late this year.

For credit unions, CUNA predicted those trends will lead to lower earnings and higher loan charge-offs by the fourth quarter and into 2021.

The pandemic recession is leading Americans along diverging paths: Those with high incomes have tended to experience fewer and shorter layoffs, while many low-income workers are seeing temporary furloughs morph into extended unemployment even as the extra $600-a-week federal unemployment assistance expired at the end of July, the analysts said.

Learn more

Here’s Why Economists Are Not Worried About National Debt, Now Worth Over $26 Trillion

Many arguing against aggressive stimulus spending from the federal government cite one critical reason: the national debt. Now totaling over $26.7 trillion, the U.S. debt-to-GDP ratio is one of the highest in the world.

Top economics and policymakers, however, are not concerned.

When asked about the staggering number, Nobel laureate Esther Duflo told CNBC, “That is not something that the general public should be worried about for the time being at all.” She continued, explaining that American credit is one of the safest assets to hold, so in a sense, it is unlikely that the government will ever have to repay this debt.

AFL-CIO chief economist William Spriggs asked us to consider if the national debt is creating money for real economic activity. If so, like in an example where a company or governmental agency takes out a loan to build a factory thus creating jobs, then there should be no reason for alarm.

Former Labor Secretary Robert Reich feels now is not the time to be worried about the national debt for exactly the reason Spriggs mentions. “When you have this much unemployment, when you have this much-underutilized capacity; this is the time when the government has got to be the spender of last resort,” he said.

Learn more

Chapter News

Richmond Chapter Hosting VACUPAC Golf Tournament Sept. 29

The Richmond Chapter will host its annual Bill Dawson Golf Tournament on Sept. 29 to benefit the Virginia Credit Union Political Action Committee (VACUPAC).

Golfers are needed! Sponsors are needed!

Learn moreopens a pdf (PDF document)

Marketing News

How Getting Political Can Help CUs Reach Gen Z

Gen Z is well on its way to becoming the most educated, racially and ethnically diverse, digitally savvy generation yet. In fact, 97% of Gen Z uses a major social media platform, according to a Pew Research Center survey. They are more connected than ever and thus more aware of social justice, environmental and political issues than any other generation – and they are more inclined to take action.

This passion for equality and justice creates a willingness to fight for both, whether it be through protests, calling government officials or taking over hashtags on Twitter. Or being more mindful about where they spend (and store) their money. Because for Gen Z, it’s not just about expecting more from each other and the government; they expect more from brands and companies, too.

And that includes financial institutions.

Luckily, as not-for-profit, member-owned financial institutions, credit unions already have a leg up. Credit unions were founded on the idea of wealth distribution and community. So how can credit unions use that to their advantage in their marketing?

Learn more

« Return to "CURRENT Newsletter" Go to main navigation