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April 2018 News.Cuna.Org APRIL 2018 NEWS.CUNA.ORG PAYMENTS Perils and promise Published by Credit Union National Association Your growth. Our guidance. We’re Trellance, a new company sprouted from the experience and expertise of CSCU to provide powerful new solutions to credit unions. Trellance was created to provide the structure and solutions to help credit unions not just compete, but thrive. We provide next-generation insights, resources, expertise and execution capabilities to credit unions. We’re talking about vibrant strategies to grow your community and attract new members, along with powerful tools to keep current members even more engaged. Trellance is here to support your growth. Join us at our immersion18 conference, May 8-11th in Ft. Lauderdale, FL. Register at immersion18.com. For more info visit trellance.com. Instant Issuance, Instant Satisfaction With fully functioning, permanent cards in hand, members have instant purchasing power, which means a better experience, higher satisfaction and deeper engagement. Your institution can offer secure, personalized cards on-site in just a few minutes. With our web-based service, there’s no software or dedicated server to buy. Print in-branch while delighting members — it’s possible with Card@Once®. harlandclarke.com/Card@Once 1.800.351.3843 | [email protected] © 2018 Harland Clarke Corp. All rights reserved. Card@Once is a registered trademark of CPI Card Group, Inc. US Patent No.: 8429075. [email protected] 1 3/5/18 7:17 AM April 2018 Volume 84 Ñ Number 4 FEATURES 20 Payments: Perils and Promise Despite competitive pressures and fraud concerns, the payments arena offers new opportunities to connect with members. Amid an explosion of mobile payment options, credit unions must define their true value proposition for the member. 26 Cards Are (Still) King While digital payment options generate the most buzz, credit and debit cards still drive the competitive payments market. Credit unions with successful card programs prioritize service, rewards, and convenience, and segment members based on usage patterns. 30 Open Banking on its Way The market shift toward granting third parties access to banking information to deliver members services is both exciting and scary. Credit unions must prepare for open banking’s impact on member relationships and competitive pricing. (COVER ILLUSTRATION: SCOTT KHAIL) 4 CREDIT UNION MAGAZINE u APRIL 2018 u news.cuna.org BETTER RETIREMENT OUTCOMES FOR THEM. LESS RISK AND MORE RESOURCES FOR YOU. Your employees aren’t the only ones who’ll benefit. With a Trustee Retirement Plan from CUNA Mutual Retirement Solutions, you get a turnkey solution that helps minimize the risks of sponsoring a 401(k) with its independent Board of Trustees that shares the fiduciary responsibility. Leading investment consultant Mercer Investment Consulting advises the Board to make investment decisions on your behalf— resulting in less work for you and greater value for your plan. Learn more at cunamutual.com/retirement or call your CUNA Mutual Group sales executive at 800.356.2644 today. CUNA Mutual Retirement Solutions is a division of CUNA Mutual Group and the marketing name for CPI Qualified Plan Consultants, Inc., a CUNA Mutual Group member company. CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Annuity insurance products are issued by CMFG Life Insurance Company, located in Madison, Wisconsin. Each insurer is solely responsible for the financial obligations under the policies and contracts it issues. Securities distributed by CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer, 2000 Heritage Way, Waverly, Iowa 50677, toll-free 866.512.6109. Non-deposit investment and insurance products are not federally insured, involve investment risk, may lose value, and are not obligations of or guaranteed by the financial institution. Representatives offer retirement and investment education but do not provide investment, legal or tax advice. Participants are encouraged to consult their own advisors. Mercer Investment Consulting is a leading global provider of consulting, outsourcing and investment services with over 2,700 clients and 50 offices worldwide. Mercer provides advice, strategic guidance, reporting, and fiduciary oversight to its roster of international clients, including CUNA Mutual Group. Mercer meets with the Board three or more times a year to provide economic commentary, detailed investment reports, and guidance for the Board in making their investment decisions. References to Mercer shall be construed to include Mercer LLC and/or its associated companies. 401K-1446318.1-0316-0418 © CUNA Mutual Group, 2016 All Rights Reserved. Pg_5_CUNA_Mutual.inddCU Mag ad page_1.indd 1 13 3/6/187/5/17 11:40 7:54 AM April 2018 LEADING EDGE TWENTYFOUR/SEVEN 12 Use empathy mapping to better understand members’ financial well-being—and how best 40 to serve them. Cybercrime predictions for 2018 include smarter malware authors and a looming ‘bot’ battle. 14 PRESIDENT’S PERSPECTIVE 42 TOOLS OF THE TRADE Open your eyes to the Credit Union Awareness Initiative’s research-backed, consumer-driven In the arms race against card fraud, identify brand platform. the best solutions to protect members and your credit union. 16 TRENDLINES Knowledge of local conditions enables credit WORLDWIDE unions to succeed in business lending. 18 SPOTLIGHT New CUNA Board Chairman Maurice Smith prides himself on being a ‘credit union nerd.’ COMPLIANCE MATTERS 44 Displaced populations in Colombia can access financial services thanks to World Council’s partnership with local credit unions. 46 BRANCHING OUT What do you get when your annual information technology exam and April Fool’s Day coincide? 8 POSTAL INFORMATION 36 A new CUNA compliance resource contains all 10 ON MY MIND 2017 major regulations and effective dates, along 45 ADVERTISING INDEX with CUNA’s final rule analysis. 45 MARKETPLACE 38 NEW IRA LATE CONTRIBUTIONS REQUIREMENT The IRS now requires separate reporting on Form 5498 of any late rollover contributions self-certified by an IRA owner. 6 CREDIT UNION MAGAZINE u APRIL 2018 u news.cuna.org AMERICA’S CREDIT UNION CONFERENCE ™ Daniel Lerner Jeff Henderson Jonathan Mildenhall Whitney Johnson Speaker, Author, Coach Celebrity Chef and Author Marketing Expert and former Author and Business Leader Marketing Of cer of Airbnb cuna.org/acuc ACUC2018_KeynoteSpeaker_CUMAGAD.indd 1 3/6/18 9:41 AM news.cuna.org VISIT OUR WEBSITE DURING APRIL FOR THESE ONLINE EXCLUSIVES. Special Report: CUNA HR & Organizational Development Council Conference The credit union movement’s premier human resources/ organizational development conference will include ses- EXECUTIVE COMMITTEE sions on workforce planning, leadership from the front MAURICE SMITH • chairman, Raleigh, N.C. lines, maximizing potential with emotional intelligence, and how to develop BRETT MARTINEZ • vice chairman, Santa Rosa, Calif. “bench strength” for important positions. TROY STANG • secretary, Seatac, Wash. Keynote speakers include author/motivational speaker Steve Gilliland, who’ll ex- BRAD GREEN • treasurer, Sheffield, Ala. amine how to make a difference in others’ lives, and Patrick Henry, author of “The Pancake Principle,” which outlines 17 ways to make your members flip for you. TONY BUDET • member-at-large, Austin, Texas JIM NUSSLE • president/CEO, Washington D.C./Madison, Wis. PAT JURY • immediate past chairman, Des Moines, Iowa The challenge of offering feedback Providing feedback to co-workers is an uncomfort- able experience for many people. But failure to deal DIRECTORS with bad behavior creates a toxic work environment, DALLAS BERGL Ind.; PAT DRENNEN Iowa breaks down teamwork, and gives power where it SCOTT EARL Colo.; CHARLES ELLIOTT Miss. doesn’t belong. Taking six steps will help carry you through a feedback session and come out feeling GARY FURTADO R.I.; LISA GINTER Kan. good afterward. ROGER HEACOCK S.D.; TOM KANE Ill. DEBIE KEESEE Wash.; MARIA LAVELLE Pa. MARIA MARTINEZ Texas; PATRICK PIERCE Minn. Do you offer a ‘Cotton Candy Frappuccino’ experience’? FRED ROBINSON Tenn.; JOHN SACKETT Wis. We expect a great experience no matter where we shop, where STEPHANIE SIEVERS La.; SCOTT SULLIVAN Neb. we are entertained, where we eat, or how we manage our money. JOE THOMAS Va.; SCOTT WOODS S.C. That’s because there is little if any difference between the experi- ences we want to encounter as individuals and what members JEFF YORK Calif. expect from their credit unions. On that premise, start with a simple question: When you think of your expe- riences with Amazon, how would you describe them? And how can your credit LEADERSHIP union get to that point? JIM NUSSLE • president/CEO JILL TOMALIN • chief operating officer MOLLIE BELL • chief engagement officer Addressing the knowledge gap RYAN DONOVAN • chief advocacy officer A survey of more than 700 credit union executives found that although most understand that data analytics can be a game-changer, only 26% actually know TODD SPICZENSKI • chief products & services officer how to use analytics. Some experts view data analytics as a tool to see and DOUGLAS KIKER • chief strategic communications officer understand member behaviors. It can parse data in many different ways and provide fresh insights into member behaviors. Credit union people. Credit union ideas. POSTAL INFORMATION Credit Union Magazine (ISSN 0011-1066) is published monthly for $80 per year by Credit
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