U.S. credit unions outpaced banks across all consumer lending and asset quality categories, according to research conducted by Callahan & Associates on second quarter data released by the National Credit Union Association (NCUA) and Federal Deposit Insurance Corporation (FDIC).
The artwork of high school students Traeveon Reese and Martha Estrada will soon appear in the wallets of thousands of debit cardholders in north Texas. The aspiring artists’ designs are being featured on the new Spirit Debit Reward cards, offered by Texas Trust Credit Union.
GECU is bringing convenient, intuitive, and easy-to-use services across both its digital and physical channels through the innovative technology of NCR. GECU credit union provides its members with online and mobile digital banking services from Digital Insight, an NCR company, while also installing NCR Interactive Teller in new neighborhood branches. GECU has agreed to renew Digital Insight’s suite of SaaS solutions including Online Banking, iOS and Android mobile and tablet banking, Remote Deposit Capture, FinanceWorks and Purchase Rewards.Financial institutions are continuing to adopt mobile services as mobile banking becomes more popular. According to a Digital Insight study1, mobile consumers access their financial information 66 percent more frequently than online, non-mobile consumers. Additionally, consumers using online, mobile and tablet log in approximately 30 times a month compared to consumers who only use online banking and log in less than 10 times a month.2
Cardlytics Card-Linked Marketing announced its platform has been deployed by San Diego County Credit Union (SDCCU) to provide targeted rewards to their members in San Diego, Riverside and Orange counties. SDCCU implemented the platform through an ongoing partnership between Cardlytics and Fiserv, which provides SDCCU with Corillian Online, the industry’s leading online banking solution. Relevant offers are now presented on each member’s checking account detail page within the credit union’s secure online banking platform – achieved by leveraging information about previous purchases. There are no coupons or promotion codes required and no member data leaves the credit union’s secure environment.
Western Union global payments and Right Choice Money Services, a wholly owned subsidiary of Redstone FCU, announced an agreement for Right Choice Money Services to offer its customers Western Union global money transfer and online money transfer services. Right Choice Money Services customers can now send and receive domestic or international money transfers with funds accessible for pay out at more than 500,000 Western Union Agent locations in more than 200 countries and territories.
CorreLog will participate in exhibitor sponsorship at SHARE Atlanta, March 11-16. Featuring deep-dive discussions into the latest IT industry security developments and feature engaging networking opportunities for attendees and highlight governmental compliance requirements specific to mainframe environments that are related to the PCI DSS. CorreLog will also highlight a customer use case for enterprise security across a complex, heterogeneous IT environment consisting of z/OS, UNIX, Linux and Windows devices that pass industry compliance standards such as PCI DSS, HIPAA, SOX, FISMA, and NERC.
Credit Union 24 credit union-owned ATM and POS network is advocating against the National Credit Union Administration’s (NCUA) proposed information disclosure regulations on CUSOs. Credit Union 24 is providing tools to credit unions to help make their voice heard and is encouraging credit unions to lobby the NCUA against these regulations and posted a letter on its website, indicating the regulations will inhibit CUSO innovation and collaboration by replacing value and service factors with regulatory compliance and information disclosure, thereby not providing the same level of financial products and services for which credit unions have come to rely on CUSOs. Accordingly, it will also put CUSOs at a competitive disadvantage, thereby diminishing the intellectual value that they provide credit unions via their services, by having to disclose proprietary, confidential information to a government regulator where it may become publicly available under FOIA or equivalent laws.
Northern Lights Federal Credit Union (NLFCU) of Vermont is set to issue its members IronKey Trusted Access for Banking secure browsing solution that prevents identity theft, payments fraud and online banking account takeover. Northern Lights Credit Union is one of the first to offer Trusted Bookmarks, a new feature of Trusted Access for Banking allowing members to safely access popular websites using a ‘white list’ managed by the credit union. With Trusted Access, customers know they are accessing an authentic site and their transactions are not being monitored or tampered with by crimeware. Northern Lights worked with the CEO of the CUSAG, LLC and industry expert on the IronKey implementation. Trusted Access adheres to a tougher new set of guidelines from the Federal Financial Institutions Examinations Council (FFIEC) – whose members include the National Credit Union Administration (NCUA) – for securing online banking and money transfers.
The Center for Financial Services Innovation released a set of policy recommendations for the CFPB aimed at extending consumer protections to General Purpose Reloadable (GPR) prepaid cards. CFSI has supported the development of GPR prepaid cards and now recommends all GPR prepaid card providers are required to list the fees for their products in a standardized and easy to understand fee disclosure box; all GPR prepaid cards are required to have FDIC insurance protection; and to ensure consumers have routine access to information about the money in their GPR prepaid cards and that they have protections on their funds like those that are afforded to traditional accounts.
San Diego County Credit Union (SDCCU) announced same-day payments are now available through “Bill Payer Plus” online bill payment solution, powered by “CheckFree RXP” from Fiserv. Allowing members to select the same-day delivery option as part of the normal payment scheduling process, “Bill Payer Plus” makes bills available for same-day payment on credit card, utility, phone and other common household bills, with an available same-day delivery option as part of the normal payment scheduling process.
Mid-Atlantic Corporate Federal Credit Union and Bluepoint Solutions have partnered to assist credit unions with lower check volumes adopt Check 21-enabled branch capture. Bluepoint Solutions RDC and Item Capture solutions will offer its “ImagePoint” Branch capture platform for a monthly fee without significant set-up costs. Once scanned, check images will be electronically transported to Mid-Atlantic Corporate’s data center for additional processing and clearing. Mid-Atlantic Corporate and Bluepoint have also initiated a conversion program to help credit unions of any size replace first-generation, legacy branch capture and check processing solutions with Bluepoint’s modern ImagePoi nt Branch platform.
Third quarter 2010 credit union credit card portfolio trends indicate outstanding credit card balances grew at an annual rate of 4.4% between September 2009 and September 2010 to $35.2 billion. This is a slower rate of growth compared to the September 2008-2009 cycle rate of 7.9%. With this, card accounts grew at a 1.76% annual rate over the same period to 13.1 million and cards as a percentage of total assets accounted for 4.4% for no change from the third quarter of 2009. This, according to AssetExchang analysis, also shows credit card penetration continues to trend near 17% while among credit unions with card portfolios larger than $1 million, there were two card portfolios sold with a combined balance of approximately $12 million.
Credit Card Key Performance Indicators
US Credit Unions
SEP06 – SEP10
SEP06 SEP07 SEP08 SEP09 SEP10
Balance Growth 12.41% 16.27% 14.72% 7.92% 4.40%
Account Growth 3.39% 5.44% 4.33% 3.83% 1.76%
Cards as % of
Total Assets 4.07% 4.38% 4.57% 4.44% 4.43%
Penetration 16.52% 16.91% 16.94% 16.83% 16.92%
Per Account $ 2,070 $ 2,282 $ 2,510 $ 2,609 $ 2,676
Utilization 28.35% 29.17% 30.63% 31.35% 32.56%
(annualized) 1.53% 1.57% 2.49% 4.18% 4.31%
(60+ DPD) 1.32% 1.18% 1.63% 2.01% 1.64%
Source: NCUA, AssetExchange, Highline Financial