America’s banks and credit unions urged the Federal Reserve to rescind its proposal to update Regulation II (Reg II) in a comment letter submitted today. The joint letter was submitted by the Bank Policy Institute, American Bankers Association, America’s Credit Unions, Consumer Bankers Association, Independent Community Bankers of America, Electronic Payments Coalition, Mid-Size Bank Coalition of America, National Bankers Association and The Clearing House Association. The associations argue the proposal would harm consumers, banks and credit unions and would violate the law by prohibiting banks from recovering the costs they incur in providing affordable, safe debit card programs and a reasonable return on that business. The proposal would benefit large retailers like Walmart and Amazon at the expense of consumers and financial institutions of all sizes. “[T]he Associations urge the Board to withdraw its proposed rule. The proposed rule would further lower the existing deficient price cap on debit card interchange fees and thereby amplify the damage already done by Regulation II as promulgated in 2011, including by driving up costs to consumers for basic deposit accounts disproportionately harming low-income and underserved consumers) and degrading the ability of banks and credit unions (including smaller, exempt issuers) to serve their communities and to invest in payment system innovation.” Retailers pay a small transaction cost, known as an interchange fee, to the card issuer (i.e., the buyer’s bank) and the acquirer (i.e., the seller’s bank) when a consumer uses their debit card to make a purchase. The Federal Reserve’s proposal would further reduce the legal limit on the interchange fee already in place under Regulation II, thus restricting the resources available to banks to cover the costs of facilitating debit card transactions, cover fraud losses and fund innovation in the payments system, including ways to reduce costs that support all consumers, such as free checking accounts. Major problems with the proposal:
To access a copy of the letter, please click here.
0 Comments
Eltropy, the leading AI-powered conversations platform for community financial institutions (CFIs), today announced that credit unions and community banks across North America are experiencing major reductions in delinquencies after deploying Eltropy's unified text messaging service, AI-powered chatbots, secure video banking, and voice capabilities for collections outreach. The spike in delinquencies has been driven in part by the lending industry extending larger amounts of credit to more borrowers during the pandemic years, based on historically high credit scores and low debt levels at the time. As economic conditions normalized and consumers spent down surplus savings, defaults increased – especially among the new accounts opened amid that "Pandemic Paradox" period. By allowing members to easily make payments via text and engaging them through preferred digital channels, Eltropy helps CFIs establish early connections to avoid missed payments and costly delinquencies. Its AI-driven chat and voice solutions also enable empathetic, personal outreach at scale. "Reducing delinquencies is a top priority for our community bank and credit union clients in today's economic environment," said Ashish Garg, Co-founder and CEO of Eltropy. "Our unified conversations platform makes it easy to deploy timely payment reminders, digital payment flows, AI-powered conversations, and seamless handoffs to live agents when needed. For years, this multi-channel approach has been proving highly effective for increasing on-time payments and working with members to resolve delinquent accounts." "Using Eltropy texting for our Collections and Recovery departments, we're collecting way more than ever before in our history," said Lisa Weinstein, VP of Member Relationship Product Management at Virginia Credit Union. "We immediately saw results after implementing Eltropy. By sending delinquent payment reminders via text messaging with payment links, we had a record-breaking collections year in 2021, collecting $48.3 million and recovering $9.9 million in principal from charged-off loans, and we continue to see these positive results year after year." At Canvas Credit Union, meeting members on their preferred digital channels was key. "Our members would almost never pick up our collections calls – but opened up their hearts on text," said Shawn Spratte, SVP of Loss Mitigation & Communications Center. The ability to blend digital and voice made a major difference for Alliance Credit Union's collections results, according to COO Sean Chambers. "It's like clockwork – you see the text messages go out, and the payments come in,” he said. By providing purpose-built digital communications tools, Eltropy empowers community financial institutions to reduce delinquencies through more effective member engagement throughout the collections lifecycle. Registration for EMERGE 2024, Eltropy’s annual user conference, May 14-17 in Santa Clara, Calif., is closing soon. View the agenda and secure your spot at eltropy.com/emerge-2024 to experience the future of the emerging credit union industry firsthand. NCR Atleos Corporation (NYSE: NATL) (“Atleos”), a leader in expanding self-service financial access for financial institutions, retailers and consumers, today announced that $1.3 billion-asset Palmetto Citizens Federal Credit Union has selected Atleos’ Allpoint Network to deliver more convenience and choice to their members’ banking experience.
Palmetto Citizens serves more than 83,000 members in communities across South Carolina. The credit union has an existing successful partnership with Atleos for ATMs and wanted to expand the partnership to widen access for their members. By joining Atleos’ Allpoint Network, the credit union will plug into a network of over 55,000 ATMs to provide fee-free everyday banking transactions like cash withdrawals and deposits in convenient locations where members already live and shop. “More than ever, our members want and need convenient ways to access their money,” said Robert Dozier, CEO and president of Palmetto Citizens FCU. “By expanding our partnership with Atleos, we’re cost effectively providing members with a larger, more convenient surcharge-free ATM network while expanding our geographic reach and brand. We look forward to continuing our work with Atleos to add additional enhancements, such as ITMs, so we can continue to reach our members when they need us, no matter where they are.” “Atleos is uniquely positioned to help financial institutions enhance self-service capabilities and optimize their physical footprints; we are the provider of the world’s largest independent ATM network,” explained Diego Navarrete, executive vice president, Global Sales for Atleos. “Through this deepened partnership, Palmetto Citizens FCU will be well positioned to strengthen member loyalty and meet strategic growth goals.” SRM (Strategic Resource Management, Inc.), a trusted advisory firm serving financial institutions globally, announced its partnership with Filene Research Institute to sponsor their newest Center of Excellence (CoE), “The Next Generation of Member Growth.” Through this partnership, SRM aligns itself with the most trusted name in credit union research. This initiative will yield the sixth Center of Excellence supported by Filene Research Institute at universities across the U.S. It will be driven by a combination of research fellows, executives from leading credit unions, and Filene staff, and will be operational by July of this year. The Center of Excellence will identify strategies, including internal and external practices, to attract, engage, and retain Millennials and Gen Z – the next generation of credit union members. “Filene has continually informed the credit union industry on what matters for today and tomorrow, and SRM is thrilled to enter into this partnership at such a critical time,” noted Ben Mrva, CRO of SRM. “This Center of Excellence will address the challenge of attracting a new generation of credit union members while still meeting the ever-evolving needs of the current member base. SRM will add hands-on expertise to the effort as we work daily with our clients to enhance long-term strategies and transform their digital experiences and outputs for the benefit of their members.” SRM will be highly involved in the ongoing programming presented by Filene, including various councils, events, panels, and podcasts throughout the year. Filene’s work impacts and serves more than 71 million credit union members. “We’re pleased to have SRM support our new Center of Excellence with such enthusiasm. The trust they’ve built in the credit union community over the last three decades and their ability to deliver strategic advisory services, operational efficiency, and lasting results makes them the ideal partner for this endeavor,” said Christie Kimbell, EVP at Filene. “It’s thrilling to join forces with them to set credit unions apart as a premier choice for the younger generations as they evolve in their financial lives.” Members First Credit Union (M1) is excited to announce the launch of its “Bringing Joy Home- Your Donation Matched campaign,” aimed at addressing the urgent issue of affordable and attainable housing in Midland County. In partnership with the nonprofit Affordable Housing Alliance of Midland County (AHA), this campaign aims to amplify the impact of community donations by matching them dollar-for-dollar, up to $20,000. According to recent statistics, 1 in 4 renters in Midland County struggle to afford housing, often spending over 50% of their income on rent alone. 2 This financial strain forces families to make difficult budget trade-offs, impacting their ability to meet other essential needs such as food, clothing, transportation, and healthcare. Established in 1995, the Affordable Housing Alliance is a nonprofit organization that provides rental units to low-income families at a below-market rate. By serving families that include essential workers such as teachers, daycare workers, servers, and others, the organization contributes to Midland County's mission of building inclusive, thriving communities. Unlike subsidized programs, AHA relies solely on donations and grants to achieve its mission. “We are grateful for the generous support of Members First Credit Union,” shared Mara Stewart, Executive Director at AHA. “Their commitment to our cause will provide a tremendous boost to our efforts in continuing our mission to provide safe affordable housing. Together, we can make a lasting difference in the lives of individuals within our community." As a Community Development Financial Institution (CDFI), Members First is committed to furthering its mission of serving the underserved, particularly in addressing basic needs and housing challenges. At the heart of this mission is the fundamental belief that everyone deserves a safe and secure place to call home. "We are thrilled for the opportunity to partner with the Affordable Housing Alliance," said Kristen Williamson, Community Relations Leader at Members First Credit Union. “Housing is a vital backbone to the success of thriving communities, in which AHA plays a pivotal role in Midland County. As Members First seeks to create an impact in the housing efforts across our state, we can’t wait to see the results of this matching gift campaign.” Members First Credit Union's Bringing Joy Home- Your Donation Matched campaign encourages community members, local businesses, and credit union members to contribute generously to New Dawn Shelter. For every dollar donated, Members First will match the donation, effectively doubling the impact of each contribution, up to $20,000. For more information about the campaign and how to contribute please visit mfcu.net/donationmatch. Member Driven Technologies (MDT), a CUSO that hosts the Symitar core processing system from Jack Henry™ to provide a private cloud alternative for core processing and IT needs, today announced its fifth consecutive recognition as one of the Best Places to Work in Financial Technology by Arizent and Best Companies Group. This annual survey and awards program is designed to identify, recognize and honor the best employers in the financial technology industry. Companies recognized on this year’s list operate in and serve companies and consumers in a wide range of financial services including banking and mortgages, insurance, payments and financial advisory. "Though the fintech industry has faced many headwinds in the past year, the sector is still a vital cog in financial services, bringing ease of use and convenience to consumers and businesses," said Penny Crosman, executive editor, technology at American Banker. "This year's list honors companies that continue to innovate and create jobs for technologists." MDT's employees cite internal collaboration and an environment of inclusiveness as just a couple of the primary reasons the CUSO is a great place to work. The company has multiple committees for innovation, women in leadership, social justice and more. Leadership also has an open-door policy, welcoming ideas and feedback aimed at enhancing company operations and office camaraderie. Last year marked MDT’s 20th anniversary, and the company celebrated impressive external growth; what started as an organization founded by seven credit unions has grown into a leading CUSO that serves 110+ credit unions across the country, representing nearly two million members. "Our employees are the reason we have a proven track record of success in providing credit unions across the country with leading technology and services. That is why we prioritize offering outstanding benefits, fostering a supportive culture, championing innovation, and providing flexible work arrangements,” said Larry Nichols, CEO and President of MDT. "We are honored by Arizent and Best Companies Group's continued recognition of MDT as a Best Place to Work in Fintech. This acknowledgment underscores our commitment to the personal and professional development of our nearly 150 exceptional team members." Origence, the leading lending technology solutions provider for credit unions, announces a special Women’s Leadership Luncheon with guest speaker Heather McKissick, CEO of CUES, at this year’s annual Lending Tech Live event scheduled on June 26, 2024, at the Marriot Marquis in San Diego, California. McKissick, the first female CEO for CUES, will share her session “Leading with Confidence and Unity” with attendees registered to attend Lending Tech Live. Guests will learn how to harness their innate confidence, navigate gender dynamics, and foster an environment of support and collaboration. McKissick will also explain how attendees can unlock leadership potential, challenge traditional norms, and drive collective success in their organizations. Key takeaways include:
“We’ve had the privilege of hosting and featuring various female credit union leaders over the years at Lending Tech Live, recognizing their enormous contributions to the industry and positioning them to lead the next generation,” said Erika Hill, Origence’s VP of marketing. “This year, we are thrilled to welcome Heather McKissick and have her share this special message with our attendees.” Lending Tech Live ’24 is the premier lending technology conference in the credit union industry. Thought leaders from hundreds of credit unions across the country, along with auto dealers, fintech executives, and technology providers, attend. The conference provides insight into the latest strategies for building stronger, more profitable lending portfolios and reaching more members. To learn more about the conference, visit the Lending Tech Live website. PSCU/Co-op Solutions, the nation’s premier payments credit union service organization (CUSO) and an integrated financial technology solutions provider, today announced its rebranding as Velera. The new name represents the CUSO’s unique ability to drive velocity and positive momentum for credit union success in a new era characterized by technological disruption, shifting consumer expectations, and an increasingly complex regulatory environment. The brand speaks to the decades-long dedication of PSCU and Co-op Solutions to propelling the success of the credit union industry, while highlighting the combined team’s focus on driving credit union growth, which is signified by the arrow on the “a” in the Velera logo. “As we look to the future and the rapidly shifting landscape, we have a choice: to maintain the status quo or to accelerate – and we are choosing to embrace the challenge of acceleration and velocity on behalf of our credit unions,” said Velera President and CEO Chuck Fagan. “We are now Velera, and we are extremely proud of what we are creating with this new brand. We are energized for the future as we provide credit unions with a competitive advantage in an ever-evolving market, ultimately driving momentum for credit union missions across the country.” The key to Velera’s success, and the essence of the brand, can be found where trust and innovation come together to create the velocity that propels credit unions forward. The driving forces behind this energy are an amplified organization purpose, agile leadership and powerful partnerships. “PSCU and Co-op Solutions have been industry leaders for more than 40 years, so we understood the history and emotion inherent to each brand. We undertook this rebranding with a commitment to creating a new organization that would capture our shared vision and the future direction of our company,” said Velera Chief Marketing and Communications Officer Tom Pierce. “Our new brand identity is more than just a logo or a tagline – it is a promise to enable our credit unions, the industry and our employees by continuing to provide the technology and the human-centric, inspired service that powers our organization.” The new Velera brand will be rolled out in a phased approach over the next year. The Co-op Solutions brand will be retained for the company’s ATM Network and Shared Branching consumer-facing solutions. Further updates surrounding Velera and its operations will continue to be provided as integration progresses. For more information on the Velera brand, visit www.velera.com. Origence, the leading lending technology solutions provider for credit unions, is hosting a free webinar entitled “Economic Outlook: Assessing Opportunities & Strategic Planning” featuring guest speaker Economist Lauren Henderson, VP at Stifel Financial Corporation, on May 9, 2024 at 11 a.m. PT. In this session, Henderson will provide a comprehensive analysis of the current economic landscape, focusing on growth prospects, interest rates, and the potential impact of monetary policy in 2024. She will focus on the changing global policy and political environment and how they will shape economic conditions moving forward. Discussion topics include:
This webinar promises to be a valuable resource for credit unions seeking to make informed decisions in an ever-evolving economic climate. Origence invites credit union professionals, executives, and stakeholders to register for this free webinar here. About Lauren Henderson Lauren Henderson is an economist for Stifel Financial Corporation, focusing on the research and analysis of economic trends and activity, world economies, financial markets, and monetary and fiscal policies. Advertising and financial technology company Prizeout has announced the newest addition to the Prizeout Partners CUSO, Alloya Corporate Federal Credit Union. Alloya provides financial services to nearly 30% of all credit unions and credit union entities in the US, including comprehensive products and services that help them stay competitive. Through Alloya's partnership with the CUSO, credit unions within Alloya's network will now have the ability to access Prizeout's new CashBack+ suite of products. “We’re honored to not only have Alloya as a technology partner, but to have them involved in future products,” said Prizeout Founder and CEO David Metz. “As the largest corporate credit union in the country, Alloya’s insight into the innovation that their credit unions and members need is invaluable, and their mission to support credit unions’ success aligns perfectly with our ability to help them put money back into members’ pockets.” In February 2022, Prizeout created the Prizeout Partners CUSO in collaboration with Callahan and Associates. The CUSO served as a vehicle for credit unions to license Prizeout's proprietary technology and to enable collaboration across new product development that would benefit the collective. At inception, the CUSO included 9 credit unions. Now over a year later, the CUSO has grown to 20 credit unions and credit union organizations. Prizeout's new CashBack+ suite of products will provide credit unions within the Alloya network the tools to compete with big banks, to earn more non-interest income, and to put money back into their members’ pockets. “We’re excited to be joining forces with the team at Prizeout to offer their new suite of cashback products to credit unions,” remarked Kurt Stevenson, Alloya’s Senior Vice President of Payments. “Our mission is to support credit union success. With the introduction of CashBack+ to our product and service offerings, we believe Alloya will not only further the success of our member credit unions, but also strengthen the financial well-being of their members.” How CashBack+ works:
The platform will soon include a full suite of products that can earn members additional cashback. |
Author: Mike LawsonMarried to a most gorgeous and wonderful wife, raising 5 kiddos (including twins!), enjoy helping others tell their stories, and love surfing SoCal waves. Keep it simple. Archives
May 2024
Categories |