HMDA compliance has been looming over credit unions for many years. It was actually enacted by Congress in 1975 but wasn't transferred to the Consumer Financial Protection Bureau until 2011. The financial industry has been revamping their loan processes in order to ensure compliance with recent and more rigorous adjustments to the regulation, but what exactly does that entail? Here is the download on recent HMDA announcements and how your credit union can remain compliant.

Electronic documents are a mundane yet integral part of the financial industry, as they improve operational efficiency, reduce costs and save paper for banks and credit unions. Members also enjoy the convenience they offer, as they are able to sign disclosures and send the document back from their mobile phone or computer. Electronic Signing is a key feature allowing members to agree to the terms of documents without a trip into their credit union's branch. Electronic signatures carry the same legal weight as paper documents thanks to the Electronic Signatures in Global and National Commerce Act (ESIGN), which went into effect on October 1, 2000. For this reason, eSignature is the preferred method for both members and CUs alike for its convenience. However, there are particular rules and regulations regarding ESIGN to which credit unions must abide. Here are important compliance guidelines to keep in mind when implementing eSignature options.

Ambien and Lunesta have met their match, and its name is Credit Union Compliance. Compliance is a topic at the top of any credit union leader’s mind as there are a lot of looming questions and concerns when it comes to compliance, and many credit union CEOs have endured sleepless nights worrying about their state of compliance. In the digital world, there are a varied and vast amount of risk factors when it comes to data security and more rules and regulations too. Here are 5 questions that keep credit union leaders up at night.

Cyber security restrictions and regulations have been tightening as procedures become increasingly reliant on technology. In the past several years, the financial services industry has endured more than a few data breaches. In 2016, credit unions and banks with less than $35 million in assets accounted for 81% of hacking and malware breaches. The aftermath of these incidents has led to stricter policies and higher expectations for member data security. Credit unions have been working to build a culture of cyber security that is ingrained in every stage of data storage and transit including in-branch and over networks. The National Cyber Security Alliance outlines a recommended process for identifying, protecting and detecting potential security risks, but it is equally important to have a plan in place should a breach occur. Here are some considerations for responding to and recovering from cyber security scares.

There are a lot of considerations for any organization going through a merger. It takes cooperation and patience to combine cultures, assets and staff during a merger, but for credit unions, the effect on members is a major factor to keep at the forefront. Members often come to credit unions to experience a better value through more customization, better service and a more personal banking experience. A merger might be unsettling for members, so it’s important to reassure them that their experience will not be negatively impacted by the changes a merger will bring. To actually follow through on that, maintaining a tight lock on member information and data will be essential. Here are some tips regarding member data security that credit unions should know when embarking on a merger.

Member value is a credit union industry term thrown around to try to define the value members receive from their CU. But value itself is a subjective term, meaning different things to different people. There are many ways to evaluate member value, but Callahan & Associates have created a metric to quantify value, making it a more tangible goal. They call it Return of the Member (ROM), and this metric represents a CU’s demonstration of member value. The Credit Union of Vermont has been extremely successful in providing member value, so much so that they have been recognized by Callahan & Associates for their exemplary performance within the ROM metric. The Credit Union of Vermont has ranked at or near the top of Callahan’s Return of the Member metric for nearly a decade. As one of the best in creating member value, here is how the Credit Union of Vermont has achieved their success in the category.

In a previous blog, we discussed the importance of reducing friction in the onboarding process. One good way to do so is through integration to a robust onboarding solution that manages the process for members as well as credit union staff. Leveraging your core system's Application Program Interfaces (APIs) can provide a myriad of benefits that lead to increased efficiency and convenience, and ultimately reduce costs and boost revenue for your credit union. Here’s how APIs have become a popular tool in improving the member onboarding processes.

Members not only compare their onboarding experience with that of other credit unions and banks but to their experience in other industries as well. Companies large and small are focusing on the User eXperience (UX) to create a frictionless process. Member expectations are high, and if they experience roadblocks in the onboarding process they will lose confidence in the credit union. In some cases, they might abandon the credit union altogether for another financial institution that has a more seamless onboarding experience. In the credit union industry today, it is more important than ever to nurture relationships and demonstrate value during the onboarding process. Here are 3 ways you can create a frictionless member onboarding experience.

The cost of switching is an age-old concept, applying to essentially every industry. Humans are creatures of habit and even when people are aware of a better alternative, they will not switch to a new product or service due to the expense or effort it would require. With something as simple as household products, there is little to no cost of switching. If a shopper routinely buys JIF peanut butter for the kids' PB&J sandwiches, but at the grocery store that week Skippy is on sale, it’s likely they’ll go with the cheaper alternative. The cost of switching here is low... peanut butter is about $2.75 (or $4 if you're a health nut who prefers organic) and if the family doesn’t like the Skippy, they’ll just switch back to JIF next time. However, there are far larger barriers when switching to something like a new cable company, insurance provider, or financial institution. 

In the past, some credit unions avoided self-service options. Credit unions were built upon the idea of personal service -- providing the highest quality of customized care for their members. However, credit unions today will benefit from self-service offerings. While many members still value personalization in their banking experience, they often prefer self-service channels over face-to-face interactions. According to a survey by Zendesk, 75% of respondents identified self-service as a convenient way to address customer service issues, and 67% prefer self-service over communication with a customer service representative. Self-service channels won’t replace your credit unions valued MSRs, but they will allow for greater efficiencies for both staff and members. Here’s how your credit union can begin to incorporate self-service channels for improved operations and happier members.