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January 2022

    A Note from Chris

    Happy New Year! Ringing in a new year is cause for celebration, for spending time with family and friends, and for offering happy new year blessings. It’s also a time of reflection. It’s important to recognize the special symbolism that a new year brings. It should speak to new beginnings and fresh starts. Whether your new year resolutions are big or small, they can take a lot of effort. I hope you found time to relax over the holidays, enjoyed time with your loved ones, and did some calm reflecting as you prepared for a fresh start in this new year.

    As I reflect on measures imperative for Corporate Central to better serve your credit union, I am proud to say that 2021 was a very successful year. We experienced incredible growth while continuing to operate at strong capital levels. We will continue to focus our strategic priorities on leveraging technology to optimize your experience and our member service. We look forward to working with you and continually improving your entire interaction and experience with us.

    Here's to you, and to a happy, healthy, and successful 2022!

    Sincerely,

    Chris Felton's signature

    Chris Felton
    President/CEO

    What’s Trending?

    Digital transformation is changing banking from the inside out.

    Companies across all industries are faced with the urgent need to transform the way they do business, including financial services, but changes abound with governance, security, and culture. A shift in mindset and perspective away from “the way things have always been done” is key to a successful digital transformation and to providing the frictionless member experience financial services businesses strive to offer.

    Read the Article

    Technology Solutions

    Emergifi partners with Verkada to offer credit unions enhanced security options.

    Organizations are rapidly moving to the cloud to enable remote access, support greater scale, and improve usability of physical security systems away from the traditional CCTV models. Emergifi partners with Verkada to help credit unions with their physical security needs. Why Verkada? Verkada is the fastest-growing physical security company in the world. They offer a seamless all-in-one system including natively integrated ecosystem of cameras, access control, sensors, alarms, and visitor management. Their cloud-based solution leverages AI to make security more effective and efficient. In addition, they offer a 10-year warranty on all devices plus free firmware updates.

    We will be conducting a webinar with Verkada on Tuesday, January 25 at 11:00 a.m. CT. where we will show you how to deploy AI-enabled, cloud-based video surveillance, access control, alarms, and environmental sensors so simple and scalable that it works for everyone at your organization.

    Register for the webinar today.

    As a bonus, all webinar attendees are eligible to receive free Verkada trial cameras and a free trial of the alarm monitoring service (where available). Plus, if you register with your work email address and you attend the live webinar, you qualify for a free YETI rambler 10oz.

    Employee Benefit Resources

    It’s never too soon to plan for your next health insurance renewal.

    We just started 2022 and we already recommend that credit unions start exploring their health insurance options and employee benefit packages. Ken Meyer, our Employee Benefits Executive, recently published a blog offering four tips to help credit unions enhance their benefits to employees. Here are some tips:

    • Benchmark your plan designs
    • Survey employees
    • Write down and hold firm to your “must haves”
    • Account for any potential coverage gaps

    For additional content and resources, please read the full blog.

    Our success at InterLutions comes from our focus on collaboration of resources through I-Care for the credit union community. Part of that collaboration comes from our partnerships that have these exact tools to help manage your planning and ongoing service.

    Call us today at (414) 433-0174 or visit InterLutionsCUSO.com for a free evaluation.

    Financial Services Consulting

    Register today to join our Crystal Ball Challenge.

    Market focus was squarely on inflation as we entered December. Fed Chairman Powell had announced in November that the Fed would be removing the “transitory” adjective from inflation references going forward. He also hinted that the tapering of the Fed’s monthly purchases may be accelerated. On December 15, the Federal Open Market Committee (FOMC) confirmed both. Taper acceleration will begin in January reducing Treasury purchases by $20 billion per month and mortgage-backed securities by $10 billion effectively ending all purchasing after March 2022. Reinforcing the Fed’s determination to address inflation, the “dot plot” now reflects the majority of the FOMC members anticipate a steeper path of rate hikes than previously plotted. Currently the dot plot forecasts three hikes each of the next two years and another two for 2024 bringing the Fed Funds rate to 2.10% in three years.

    Market reaction to this has been interesting. One-year rates have risen a couple basis points for the month, two and three years have risen seven basis points, and the five year held its ground. Seven-to-ten-year maturities shed two to three basis points off its yield while the thirty-year climbed six basis points. Overall, a very mild reaction from bond market participants to the hawkish turn by the Fed.

    Perhaps the mild reaction occurred when analysts researched the inability of the Fed to forecast interest rates. Given their power to strongly influence short term rates combined with a staff of over 300 analysts with PhDs in Economics, one would expect the Fed to have the inside track on rate forecasting. History shows they have fared as poorly as most souls who attempt to predict the future course of interest rates.

    The path of rate forecasting is strewn with the bones of failed gurus and analysts who undertook the challenge full of hope and determination only to find the answers beyond their grasp. It is a journey of peril but one we encourage you to take. QuantyPhi has announced a “Crystal Ball Challenge” looking for brave members to peer into the future and see what fates are awaiting us. Whomever comes closest to predicting the future levels, true riches will be rewarded. A $250 gift card will go to the champion as well as the most coveted apparel found in the known world – a QuantyPhi sweater vest normally seen only on unicorns or unnamed Italians in New Berlin who ride them. January 10 is the deadline to enter. Follow the link below or call your financial strategist to enter.

    Enter Your Predictions

    Did You Know?

    InterLutions has connected with the Louisiana Credit Union League to deliver enhanced employee benefits to Louisiana credit unions.

    InterLutions and LCUL are working together to provide Louisiana credit unions with access to I-Care, an employee benefits solution designed to leverage the industry’s collaborative spirit to mitigate rising health costs. The I-Care collaborative benefits model pools the combined risk of the credit union employees they insure and leverages that credit union collective buying power to reduce health insurance costs. The expense reductions, along with big data analytics, have allowed credit unions to offer more competitive and enhanced benefit plans. This alliance provides credit unions with the flexibility to choose from a myriad of carrier networks and plan options.

    In an environment where most employers are seeing 4% to 8% medical insurance increases annually, the opportunity for credit unions to experience a 12% reduction helps dramatically. This type of success is what attributed to LCUL creating a small focus group in early 2021 before launching statewide. After a number of virtual and in-person meetings, they were able to report that a number of credit unions from the focus group are now taking advantage of the opportunity and signing on for the new year.

    Credit Unions Connect

    Stories that exemplify the movement

    A giving bonus to pay it forward in the community.

    Honor Credit Union Giving Tuesday

    Honor Credit Union provided $18,500 to its team members through a $50 bonus to “pay it forward” and presented 28 organizations throughout Michigan with a $1,000 donation. The credit union donated a total of $46,500 to commemorate Giving Tuesday. A list of the recipients can be found here.

    United in giving.

    United Way of East Central Iowa donations

    Linn Area Credit Union began their annual United Way fundraising campaign in October. In December, the credit union announced it will be donating a total of $23,098.50 to the charity. The credit union’s staff held fundraisers, and some elected to participate in a one-time giving payroll deduction, with staff contributions totaling more than $18,000. The credit union chipped in an additional $5,000 to elevate the team’s donation.

    Read More Credit Union Stories

    Our Community

    Corporate Central supports Christmas with the Vets.

    Christmas with the Vets donations

    Christmas with the Vets was started by Jeff “Doc” Dentice, a Vietnam veteran, in 1988. The event is designed to provide some holiday cheer to veterans at the Milwaukee VA Medical center and is made possible through several fundraising efforts. Corporate Central has been a proud supporter of this event since 2016 and each year strives to do more.

    Doc getting Christmas delivery

    In 2021, in addition to monetary donations by staff used to purchase items like jackets and clothing, Corporate Central was honored to provide Doc with 315 filled Christmas stockings (a tradition that began 3 years ago) to be handed out to the Veterans at the Zoblocki VA Medical Center in Milwaukee on Christmas Eve. This includes those staying in the hospital as well as those residing in the dormitories on the VA grounds.

    Learn More About Our Community Involvement

Upcoming Events

Monthly Market Monitor

2/9/2022 3:30 PM - 2/9/2022 4:00 PM Central Time (CST) | Webinar

The Monthly Market Monitor is a webinar geared toward credit union investment managers held on the second Wednesday of every month at 3:30 p.m. CT. It will provide up-to-date economic highlights, yield curve analysis, investment product recommendations, and outlook.

A New Year, Time to Look Back

2/16/2022 2:00 PM - 2/16/2022 2:30 PM Central Time (CST) | Webinar

Join QuantyPhi for our 30-minute monthly webinar where we will review to see how decisions work, and how to properly review decisions after the fact.

Virtual Digital Marketing Forum 2022

Tuesday, March 8, 2022, All Day Central Time (CST) | Virtual

Corporate Central's Digital Marketing Forum will be held virtually on Tuesday, March 8 and Wednesday, March 9. The two-day forum will feature session topics including SEO, digital advertising, and social media marketing.

Monthly Market Monitor

3/9/2022 3:30 PM - 3/9/2022 4:00 PM Central Time (CST) | Webinar

The Monthly Market Monitor is a webinar geared toward credit union investment managers held on the second Wednesday of every month at 3:30 p.m. CT. It will provide up-to-date economic highlights, yield curve analysis, investment product recommendations, and outlook.

HDIC RDC Indemnity

4/19/2022 10:00 AM - 4/19/2022 11:00 AM Central Time (CST) | Webinar

Join Corporate Central and ECCHO for this 60-minute webinar where we will review the terms of being an HIDC and discuss how that legal status has consequences when RDC indemnity claims are resolved.

QuantyPhi's ALM Workshop 2022

5/25/2022 8:00 AM - 5/26/2022 3:00 PM Central Time (CST) | TBD

Save the dates for QuantyPhi's ALM Workshop, May 25 and 26, 2022.

Altered Checks and Regulation CC Presumption of Alteration

7/19/2022 10:00 AM - 7/19/2022 11:00 AM Central Time (CST) | Webinar

Join Corporate Central and ECCHO for this 60-minute webinar where we will discuss the UCC presentment warranty and Regulation CC’s Presumption of Alteration, what they mean, and how the presumption of alteration affects a depositary FI when it receives a claim from a paying FI that it was presented an altered check.

Economic Outlook Conference 2022

10/12/2022 9:00 AM - 10/12/2022 3:00 PM Central Time (CST) | TBD

Save the date for Corporate Central's Economic Outlook Conference, October 12, 2022.

Remotely Created Checks

10/18/2022 10:00 AM - 10/18/2022 11:00 AM Central Time (CST) | Webinar

Join Corporate Central and ECCHO for this 60-minute webinar where we will discuss the Remotely Created Check as defined in Regulation CC and the warranty a presenting FI makes that a Remotely Created Check is authorized by your account holder.

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