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April 2023

    A Note From Chris

    Spring is here, which means we are preparing for our annual meeting. Once again, we are partnering with The Wisconsin Credit Union League, as we have for many years now, and co-hosting our annual meetings during the league convention in May. Conducting our meetings this way allows more members to participate given the large attendance for the convention, but we also conduct our meetings this way because The League is a great partner. We represent two organizations devoted to a singular purpose – serving our members. We believe it is vitally important for the movement that entities created solely to serve credit unions should always look to partner, collaborate, and innovate together to help more members. There is strength in numbers.

    As a corporate credit union, you might think of us as a liquidity provider, an investment firm, a payments processor, and a settlement provider; and you would be right. But, as your credit union, we try to put ourselves in your shoes every single day and remember that what we do helps you to be successful at what you do. When a new employee joins Corporate Central, they go through a lot of training to understand what exactly we do. They are constantly reminded of who we serve and why what we do is so important. Although we see billions of dollars flow through our organization daily, we remind them that what we do helps you help your members. Whether you’re helping them buy their first car, find their dream home, send their children to college, care for their loved ones, or with any other important step in their life journey, it’s what credit unions do – help people. We are honored to support you in your mission of helping your members and we look forward to sharing our successes with you at our annual meeting. We are thankful to know you and serve you; and we are very proud that you call us your credit union.

    Sincerely,

    Chris Felton
    President/CEO

    Did You Know?

    Corporate Central has partnered with logicpath to offer a new Cash Forecasting Service.
    We are very excited to announce that we have partnered with logicpath to offer a new Cash Forecasting Service to member credit unions. Logicpath’s proprietary cash inventory management portal allows credit union members of Corporate Central to accurately forecast and order cash, while optimizing inventory levels across their organization. By analyzing data from device applications and teller platforms, the logicpath software integrates all cash points seamlessly, helping credit unions save time and money by better managing their cash network. Analytics allow credit unions to leverage globally used inventory management techniques to predict demand and uncertainty through cash forecasting and optimization, down to the precise denomination levels in each location. Leveraging artificial intelligence with forecast accuracy ensures cash demand is met at the lowest possible cost.

    Corporate Central and logicpath worked together to build a secure interface between logicpath and Beastro. The interface allows credit unions to utilize the cash forecasting software and automatically import their branch and ATM cash delivery orders into Beastro. This is a significant enhancement to our cash management solution that will provide immediate value to our member credit unions.

    Please join us for an introductory webinar on Tuesday, April 18 at 10:00 a.m. CT to learn more.

    Register for the Webinar

    Save the Date!

    Corporate Central will host our annual Economic Outlook Conference on Thursday, October 12.
    Mark your calendar! Corporate Central's Economic Outlook Conference will be held on Thursday, October 12 at The Ingleside Hotel in Pewaukee, WI. Attendees will learn valuable information about the current and upcoming economic environment from a diverse speaker lineup that will assist with your 2024 planning efforts. Corporate Central is pleased to offer eligible attendees the opportunity to earn CPE credits for this event. More information regarding registration, keynote speakers, and session topics will be available soon.

    Technology Solutions

    Changes in leadership – IT strategic steps.
    The credit union industry is experiencing an increased turnover in leadership as a result of mergers and acquisitions, or the appointment of new President/CEOs. Often lost in the early days of transition is the criticality of IT. Understanding the full scope of an organization’s IT systems and strategies is important to ensuring the ability for new leaders to meet the needs of members now and in the future. Leaders cannot begin to develop an organizational strategy without ensuring its foundation is stable and that starts with IT – technology is the hub through which daily operations occur.

    Read the Article

    Employee Benefit Resources

    A CUSO’s healthcare solution for small credit unions.
    Small credit unions and their employees continue to pay more for health insurance while the carriers continue to profit. Big insurance brokers struggle to scale down and deliver competitive products to small credit unions. Small insurance brokers often deliver un-tailored products that don’t fit the needs of small employers. InterLutions recently launched a solution to broker competitive medical plans for small credit unions. After thorough evaluation with a small credit union advisory council, along with a detailed healthcare feasibility study, InterLutions truly understands the challenges small credit unions face with rising medical insurance costs and has developed customized solutions to help. Join the InterLutions team for a complimentary 30-minute webinar on Tuesday, April 18 from 1:00 p.m. to 1:30 p.m. CT to learn how their customized solutions are helping small credit unions offer affordable and quality employee health plans.

    Register Now

    Financial Services Consulting

    Be prepared.
    March got off to a dismal start for the bond market. The employment data was reported stronger than anticipated, leading the market to price in a higher peak in the Fed’s target rate and reduce expectations of a significant pivot in the second half. On March 7, Fed funds futures pointed to a peak rate of 5.625% in June and a 5.375% rate in January 2024. Everything changed quickly on March 10 when the $200 billion Silicon Valley Bank was shuttered followed by $110 billion Signature Bank two days later.

    While both banks had carved “unusual” niches, it was largely poor liquidity management that brought them down. Concerns about the overall health of the banking system immediately shifted market focus away from the Fed’s inflation battle. Analysts believed the inflation fight would be forced to take a back seat to the banking crisis. On March 13, Fed fund futures pointed to the likelihood of one 25-basis point rate hike by the Fed in March followed by a quick pivot and multiple rate cuts for remainder of the year. Futures showed a 4.75% peak funds rate coming in May and aggressive easing bringing the rate to 3.75% before the end of the year.

    The Fed did announce a 25-basis point rate hike on March 22. Fed Chairman Powell expressed confidence in the banking system, aided by the Bank Term Funding program, rolled out earlier in the month to boost liquidity. He expressed continued determination to bring the inflation rate down to the 2.0% target and stated the Fed has no plans to lower rates in 2023. The bond market was largely unphased, pricing in a 50% chance of an additional 25-basis point hike in May, with expectations of a 75-basis point pullback by January.

    This is normally the point where we tell you that there are no certainties in the future path of rates and to manage your balance sheet across the spectrum of possibilities. However, there is one result of the bank failures that will undoubtedly generate an expectation you can count on. The regulators will elevate liquidity to the top of the clipboard for future exams. Be prepared.

    That starts with liquidity management policies, liquidity forecasting, contingency funding plans, and stress testing. It is best to maintain all possible wholesale liquidity sources available including Fed discount window, the new Bank Term Funding Program, Federal Home Loan Bank advances, corporate line of credit, and non-member CD issuance.

    Review your non-maturity deposit forecasts. Understanding the rate sensitivity of these deposits is key to modeling their behavior as the world has transformed from an unprecedented flood of liquidity into the system for years to the current historic draining of those deposits in the fight against inflation. Look for potential danger spots in your deposit base. Maintain lists of your largest depositors in liquidity management reports, along with a list of uninsured deposit balances. List any large concentration of deposits by industry, group, or employer. These can all be incorporated into liquidity stress tests to measure the impact of accelerated withdrawals.

    Finally, expect examiner scrutiny on unrealized losses in both the AFS and HTM portfolios. If alternative funding sources are insufficient and portfolio sales required, what would be the impact on NEV if losses are realized? Develop contingency funding plans to address any concerns.

    Liquidity management is not only a key to success but to survival if things get worse from here. Need help with any or all of this? Contact us and we can help you get it all done.

    Contact Us

    What’s Trending?

    The technology skills every employee should have today.
    In today’s workplace, just knowing the basics of Word and Excel won’t cut it anymore. An explosion of analytical, organizational and communication technologies is remaking every aspect of office work. Whether people work in sales, marketing, project management, design, or many other fields, employers expect them to manipulate and analyze data, and bundle it into slick presentations. And as remote work has become the norm, people must know the advanced features of online collaboration.

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    Credit Unions Connect

    Stories that exemplify the movement

    Encouragement to persevere.

    Dozens of Landmark Credit Union’s associates came together to pack 350 self-care kits to benefit clients of The Women's Center of Waukesha and for the Milwaukee Women’s Center, a division of Community Advocates. These kits, along with handwritten notes, provide necessary hygiene supplies and some encouragement to persevere.

    Celebrating with the community.

    Arcadia Credit Union is proud to be an entertainment sponsor for this year's Broiler Dairy Days Festival, put on by the Arcadia Lion's Club. They look forward to celebrating this great event with the community over Memorial Day weekend.

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    What’s New and Who’s Who

    Julie Woloszyn earns Professional Certified Marketer Designation.

    We are proud to announce that Julie Woloszyn, PCM, Marketing Manager, has earned the distinguished Professional Certified Marketer® (PCM®) Marketing Management certification from the American Marketing Association (AMA). According to AMA, “PCM® Marketing Management is a way to prove an individual has the knowledge needed across a broad spectrum of marketing topics.” Developed with input from hundreds of marketing experts, the PCM program meets strict national professional certification criteria and standards for excellence in marketing. Congrats, Julie!

    Read the Press Release

    Learn More About Our Team

Upcoming Events

NASCUS – WI Executive Forum

3/12/2024 9:00 AM - 3/12/2024 3:00 PM Central Time (CST) | TruStage 5810 Mineral Point Road Madison, WI 53705

NASCUS, the Wisconsin Department of Financial Institutions Office of Credit Unions, and the Wisconsin Credit Union League are hosting this full-day collaborative meeting to bring industry leaders and directors across our state system together to discuss the most pressing issues facing our industry today.

Monthly Market Monitor

3/13/2024 3:30 PM - 3/13/2024 4:00 PM Central Time (CST) | Webinar

The Monthly Market Monitor is a webinar geared toward credit union investment managers. It will provide up-to-date economic highlights, yield curve analysis, investment product recommendations, and outlook.

Debunking Health Plan Renewal Myths | Webinar

3/19/2024 11:00 AM - 3/19/2024 11:30 AM Central Time (CST) | Webinar

Join InterLutions, the industry’s premier employee benefits CUSO, as they debunk three common myths relating to health plan renewals

Making Your Email Marketing More Effective: A Guide for Credit Unions

3/19/2024 2:00 PM - 3/19/2024 3:00 PM Central Time (CST) | Webinar

Join us for our “Making Your Email Marketing More Effective: A Guide for Credit Unions" webinar and in just one hour you will learn beyond the basics and understand how to really amplify the email marketing messages you send.

Investments 201 Webinar Series

3/21/2024 2:00 PM - 3/21/2024 2:45 PM Central Time (CST) | Webinar

Join QuantyPhi for the Investments 201 Webinar Series, a monthly deep dive into the world of balance sheet and investment portfolio management.

Why 45 Small Credit Unions Chose a CUSO’s Health Plan | Webinar

5/21/2024 1:00 PM - 5/21/2024 1:30 PM Central Time (CST) | Webinar

Join InterLutions for a complimentary 30-minute webinar to learn how our customized solutions are helping small credit unions offer affordable and quality employee health plans.

Credit Union Day at the Ballpark 2024

8/11/2024 1:10 PM Central Time (CST) | American Family Field 1 Brewers Way Milwaukee, WI 53214

Credit Union Day at the Ballpark 2024

2024 Economic Outlook Conference

Thursday, September 12, 2024, All Day Central Time (CST) | The Ingleside Hotel 2810 Golf Road Pewaukee, WI 53072

Save the date for Corporate Central's 2024 Economic Outlook Conference.

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