January 13, 2014
Monday Edition
President's point

This past Friday the Target data breach story became more troubling. The retailer announced that now as many as 70 million consumers may have had their personal information compromised. While Target continues to investigate the source of the breach, we are hearing that Congress will look into what happened. This might just be the type of event to push for higher standards for debit and credit cards, something the LSCU has been advocating for as part of our legislative agenda. This is certainly a topic of conversation that will be front and center as we head to Washington, D.C. next month for the CUNA GAC.

What makes this data breach so troubling is not only the sheer amount of people possibly affected, but also that the stolen information includes names, mailing addresses, phone numbers or email addresses. Target believes that the data stolen is partial in nature. This is good information for credit unions because any member that suspects they have been compromised will have plenty of questions. Target says that they would never ask customers to provide any personal information in an email. So if anyone has been contacted by email then they might be part of the breach even though their checking account hasn’t been compromised.

Early last week CUNA released a survey for credit unions to record how much extra that they have been doing since the breach. More than 700 credit unions have responded. What CUNA is looking for is if your call center volume has increased, have you had to issue new cards, and have you incurred hard costs already. Some of you might not have a handle on how much cost you will incur and that’s okay. CUNA will keep the survey open for a few more weeks to allow credit unions to hopefully get in front of this.

In the wake of the Target data breach, Sen. Patrick Leahy (D-VT) re-introduced his Personal Data Privacy and Security Act bill on Jan. 8. This act would require a national standard be met by businesses for customer security. This bill has been introduced every session since 2005. However, the Target data breach may have come at the right time to have the standards raised for the implementation of chip cards. This is something that many countries require and it has proven to be harder to breach. The LSCU is encouraging our Congressional delegations to sign onto the bill. Rep. Maxine Watters (D-CA) and 16 of her colleagues wrote House Financial Services Chairman Jeb Hensarling (R-TX) on Friday asking for a hearing on the Target data breach. Rep. Terri Sewell (D-AL) is one of the 16 who signed and Alabama credit unions should thank her for her effort on this issue. This issue is building some serious momentum. I would expect data security issues to be our top priority by the time the GAC rolls around.

With the CUNA GAC coming up next month, filling out the survey is very important. This information will be shared with lawmakers, the media, and regulators. CUNA will also provide a state by state analysis. When we meet with lawmakers at the CUNA GAC, they will ask about our experiences. Providing real member stories will be important. We may even be asked during our State GAC visits. I hope you will take some time to fill out the survey ahead of the CUNA GAC.

Where's Patrick: I’ll be working out of the Tallahassee office this week while also spending a day in Orlando and on the Space Coast meeting with credit unions. I’ll be attending the Central Florida Chapter dinner on Wednesday. We will have our regular LEVERAGE monthly meeting on Friday. To see my complete schedule for the next two weeks, visit the LSCU Information for Credit Unions web page.  

Return to Top
NCUA hosting webinar on Examination Modernizaton

NCUA's free webinar, “NCUA Examination Modernization,” on Jan. 22, at 2 p.m. EST will provide an overview of the changes NCUA made to streamline and improve the consistency of the examination report process. Additionally, it will provide participants with an opportunity to get a better understanding of the new procedures related to Documents of Resolution and the examination report.

This free webinar is open to credit unions of all asset sizes. Click here to register. Participants will also use this link to log into the webinar. Registrants should allow pop-ups from this website

Click here to submit questions in advance. Click here if you have technical questions about accessing the webinar.

Return to Top
How does your CU grow revenue? Take the Filene survey today!

Filene Research Institute and Aite Group announced a research partnership to explore how credit unions will drive increased revenue. Ron Shevlin, senior analyst at Aite Group, will guide the project.

Filene and Aite Group are asking credit union CEOs, CFOs, and other finance professionals to complete a survey on how their credit unions are addressing the revenue imperative. Responses are due Jan. 17. Filene will share a complimentary copy of the report with survey respondents.

After three straight years of declining revenue from 2009 through 2011, the credit union industry saw an increase of revenue in 2012. But revenue increased by just 0.7 percent, still well below 2008 levels. As an industry, credit unions generated just a little more than half of what banks with more than $50 billion in assets were able to generate in non-interest income in 2012.

“Revenue generation is a top priority for credit union executives,” said Ben Rogers, research director at Filene. “Through this research we’ll look at where credit unions see revenue growth coming from, the biggest challenges credit unions face in generating additional revenue, and how and what credit unions are investing in to generate revenue.”

The research project is expected to continue over two months. The report will be released later in 2014.

For questions regarding the survey, contact the survey administrator.

Return to Top
Getting graphic

As a growing credit union looking to market your products and services more effectively, one of the most important concepts to leverage is the difference between email marketing and lead nurturing and the ROI benefits lead nurturing delivers. Here is a great Info-graphic by Marketingstar that easily breaks it down. View Email Marketing vs Lead Nurturing, Let’s Rumble!

Return to Top
In This Issue
Monday Edition
President's point
NCUA hosting webinar on Examination Modernizaton
How does your CU grow revenue? Take the Filene survey today!
Getting graphic
LSCU & Affiliates Media

President's Quarterly Report
LSCU & Affiliates President/CEO Patrick La Pine looks at the League's activities for the fourth quarter which includes an office move in Tallahassee, a new LEVERAGE hire and an update on tax reform.

NCUA Economic Update - December 2013
Fourth-quarter economic trends show positive signs of a stronger economy, but expected changes in the interest rate environment will present challenges to future credit union performance, according to a new economic video analysis released by the National Credit Union Administration.

Upcoming Event Deadlines
Jan. 14  Last day to receive "early bird" rate for BSA Essentials & Advanced Workshop – Jacksonville
Jan. 15  Hotel room group rate cutoff for ACUA State GAC
Jan. 16  Last day to receive "early bird" rate for Security & Robbery Training – Birmingham
Upcoming League Events
Jan. 14 Real Estate Collections/CFPB Servicing
Jan. 15 IRA & HSA Review - DOMA Implications
Jan. 16 Fee Income 2014 Challenges-Issues
Follow Us

© Copyright, League of Southeastern Credit Unions & Affiliates
Phone: 866.231.0545
3692 Coolidge Court | Tallahassee, Florida 32311
22 Inverness Cntr Pky, #200 | Birmingham, Alabama 35242
To ensure delivery, please add 'submissions@lscu.com' to your email address book or Safe Sender List. If you are still having problems receiving our communications, see our white-listing page for more details.

To safely unsubscribe from this group, click here.
Home Action Center Contact Us CU Job Center Forward to a Friend Back Issues Twitter Facebook YouTube