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    June 2020

    A Note From Chris

    Wow. How can it be June already?

    Memorial Day sure felt different this year. With the cancellation of virtually every ceremony and event that generally marks the observance of Memorial Day, I hope you were able to find a way to honor and appreciate those who gave everything for our country and our freedom and who deserve our greatest respect. I also sincerely hope that you, your loved ones, and your colleagues are safe and well.

    Now more than ever, we must do the right things and be prepared to take steps beyond what we are typically required to do. It is also important that we stay digitally connected to our members, our employees, and our communities. What are they experiencing, and how can they best be supported? Their feedback is essential to chart the right course to ensure they receive everything they need.

    I can assure you that Corporate Central has the infrastructure and processes in place to help you stay connected through this challenging time. Our top priority is the health and safety of our employees, members, and partners. We have adapted to the changing environment very quickly, and our services will continue to be usable and accessible without interruption, but we want to do more! We know that listening to you, our members, is critical right now. Please let us know how we can help.

    As many of you prepare to reopen your branches, I encourage you to take a look at the Return to Work Site Toolkit, made available through InterLutions and their partners at Lockton, along with the Branch Reopening Playbook, made available by CUNA Mutual Group.

    Chris's Signature

    Chris Felton

    What’s Trending?

    Seven Best Practices for Aligning Fintech with Your Business Strategy
    By: Michael Berman, JD Founder and CEO of Ncontracts

    Fintech is one of the buzziest trends in financial services right now, and no financial institution wants to be left behind. With seemingly boundless opportunities, how do you know which fintech partnerships make sense for your institution?

    Here are seven tips for making sure your fintech activities align with your business strategy:

    1. Start with a clearly defined business strategy.
      Strategy, not technology, should drive your fintech decisions. Before considering any fintech partnerships, make sure you have a clearly defined and communicated business strategy that aligns with your institution’s objectives. Do not get on board with a promising technology and then build a strategy around it.
    2. Do not blindly jump into opportunities that fall in your lap.
      Seek out partnerships that will support your goals. Do not just sign on for a fintech partnership because it sounds cool. Only experiment with fintech if you have a goal and purpose in mind. Think about what you are trying to accomplish.
    3. Do not spread your focus too thinly.
      Not every new initiative needs to have ties to a fintech partnership.
    4. Only experiment in areas that are important to your business.
      Use your limited resources to explore fintech that can make a significant contribution to your institution. Experimenting with fintech partnerships that do nothing to drive bottom line results may not be a good use of time and effort.
    5. Make sure the business side and tech team work together.
      Often times an institution will direct IT staff to develop fintech partnerships. While IT has a lot of insight to offer, they do not have all the information to drive the decision. Business and IT need to work together to find and deploy fintech partnerships that make sense. It should not be a strictly business or tech initiative.
    6. Have a plan to build user buy-in.
      The people who ask for, research, and implement fintech will naturally be the most excited about it, but that enthusiasm is not always contagious. Have a plan to help the people who did not ask for the technology they use.
    7. Plan to ensure your third-party vendors can support your goals.
      Do not be caught off guard by a vendor that thwarts your brilliant fintech partnership plans by telling you the technology is not compatible with its own. Try to look ahead to where your institution wants to be in three to five years before signing vendor agreements so that you can determine if the vendor that serves you well now can also serve you in the not-too-distant future.

    Do not let a fintech misstep distract your institution from its goals and objectives. Make sure you follow these best practices to find fintech partnerships that align with your business strategy.

    Technology Solutions

    Do you know the difference between a public IP address and a private IP address?

    Several credit unions have reached out to Emergifi recently asking: what is a public IP address? You may not be aware but at home you have more than one IP address. You have a private IP address and a public IP address. A private IP address is an internal address that your home router broadcasts and to which devices in your home connect. Every device that connects to your router is then given a unique private IP address. Private IP addresses cannot be seen by the outside world. Your public IP address is an address provided by your Internet Service Provider (ISP) that can be seen over the Internet once any traffic leaves your home network. This is the external IP address that is logged by servers when you visit websites. You can easily find your public IP address at whatismyipaddress.com.

    Emergifi is offering free home office vulnerability scans of your remote workforce to identify cyber security vulnerabilities and exploits. Results of the assessments will be shared with you, helping your credit union identify and resolve vulnerabilities to strengthen your security footprint in these changing work environments. For more information please contact Emergifi's Sales Team.

    A Credit Union Panel Discussion

    InterLutions hosts a virtual event where credit union leaders discuss the pandemic and recessionary impact to their operations and revenue.

    Join Corporate Central, InterLutions, and a progressive group of credit union leaders on Tuesday, June 9, as we discuss the challenges and opportunities our industry is experiencing. 

    There is no doubt the pandemic impact and recessionary environment are taking its toll on the economy and changing consumer behavior across the globe. The impact on credit union revenue and operations, and the expectations of credit union staff and membership will be forever changed. 

    Our panelists represent small, mid, and large sized credit union leaders. We will also engage with Patrick Goodwin, an industry expert, and President of Strategic Resource Management, to help us collectively explore strategies credit unions can implement today to positively impact their 2020 and 2021 budgets.

    Jesse Kohl, President of InterLutions, will moderate and featured panelists include Kurt Johnson, CFO at Educators Credit Union; Cheryl Sio, President of MembersAlliance Credit Union; and Ben Neal, President of Lenco Credit Union. 

    There is no cost to attend. All member and non-member credit unions are welcome to attend to listen to what will no doubt be a dynamic and relevant conversation. Register online.

    Financial Services Consulting

    QuantyPhi will help you evaluate your income and risk, together.

    The quarantine certainly did not slow anything down for QuantyPhi in May. Markets remained volatile as economic reports started to show the effects of COVID-19. The employment data opened eyes as over 20 million Americans hit the unemployment numbers pushing the unemployment rate to 14.7%. The legislature put a $3 trillion stimulus package into action with talk of more stimulus to come. It appears we witness a “once in a lifetime event” every time we turn around these days.

    The stimulus checks hit the system and flooded the market with liquidity. At the same time, many credit unions were still in rate shock as Treasuries remained near record lows. It is always a dangerous combination in the market when good liquidity meets an extremely low interest rate environment. The human tendency in this situation is to reach out and grab yield wherever you can find it. We warn that is very often an expensive mistake. Markets never give away yield without a price. Before jumping into a shiny yield, one needs to look closely and understand what comes with it that is responsible for pushing the yield above the rest of the market. With that understanding, one can make a rational decision to move forward because the risk is acceptable or to avoid jumping into a poor risk/reward decision.

    Need some help understanding how to look at income and risk together? Let us know. That is what we do. Contact a QuantyPhi Financial Strategist for assistance.

    Did You Know?

    Corporate Central is active on social media and would like to connect with you.

    Follow Corporate Central on Twitter and Facebook

    Thank you to everyone following us on social media! In early March we announced the launch of our new Twitter and Facebook pages, and our commitment to donate $1 to Children's Miracle Network (up to $2,500) for every new follower on those platforms. We have extended our commitment through the end of June. Help us reach our goal and follow us!

    Credit Unions Connect

    Stories that exemplify the movement

    Prime Financial Credit Union awards grant to Capuchin Community Services.

    Prime Financial Credit Union giving a check to local food pantry

    Prime Financial Credit Union in Cudahy, WI proudly presented a $5,000 “Here for You” Community Organization Grant to Capuchin Community Services to use toward St. Ben’s Community Meal and the House of Peace. Capuchin Community Services have been serving the poor, the hungry, and the homeless since 1968.

    Michigan Tech Employees Federal Credit Union donates to the Western Upper Peninsula Food Bank.

    Michigan Tech Employees Federal Credit Union big check donation

    Donations from employees, funding from the Michigan Credit Union League & Affiliates, and Michigan Tech Employees Federal Credit Union’s annual meeting donation were combined to make a $2,000 donation to the Western Upper Peninsula Food Bank in Houghton, MI. The money was used to purchase 25,000 pounds of food for their community. Amazing!

    Read More Credit Union Stories

    Our Community

    Corporate Central encourages participation in Milwaukee area mask project.

    Corporate Central staff have been encouraged to volunteer with Just One More Ministry (JOMM), promoted by Habitat for Humanity and United Way, to pick up kits and help make masks. Donated masks support Rebel Converting, a Milwaukee firm committed to providing high quality masks to people in the community.

    Learn More About Our Community

    What’s New and Who’s Who

    Adam Stone returns to Corporate Central as Vice President ALM & Investments.

    Adam Stone

    We are very excited to welcome Adam Stone back to Corporate Central as Vice President ALM & Investments! Adam’s primary responsibilities include managing investment accounting, consulting, and ALM programs for member credit unions. He is responsible for supervising and performing analysis on member credit unions; performing economic, market, and sector analysis; and supporting the sale of investment and loan products to member credit unions. Adam will also perform functions related to member security safekeeping; and aid the investments staff as needed. Adam has over 14 years of experience in the financial services industry. He spent eight years as an Investment Analyst and Senior Investment Analyst here at Corporate Central. Then he moved to New York City where he spent six years as a consultant and manager for a large audit and advisory firm specializing in treasury and liquidity risk management for large, global financial institutions. Adam earned his bachelor’s degree in Economics from UW-Madison. So happy to have you back, Adam!

    Learn More About Our Team

    Wild Adventures with Leo

    Leo celebrates Memorial Day with PRIDE!

    Memorial Day Leo

    Over the beautiful Memorial Day weekend, Leo took some time to reflect and praise the men and women who have sacrificed their lives in the name of our country. Their selfless devotion, outstanding courage, and honor inspire us every day to make their sacrifice meaningful.

Upcoming Events

Investment Portfolio Benchmarking

4/21/2021 2:00 PM - 4/21/2021 2:30 PM Central Time (CST) | Webinar

Join QuantyPhi for this 30-minute webinar and find out how an investment portfolio benchmarking study can benefit your credit union.

Leverage Data and Technology to Reduce Healthcare Friction

4/27/2021 1:30 PM - 4/27/2021 2:00 PM Central Time (CST) | Webinar

Join InterLutions for this 30-minute webinar to learn five innovative strategies that will reduce the friction in delivering benefits to our most important assets – our employees.

Sallie Mae Student Loan Partnership Refresher (LIVE DEMO)

4/29/2021 2:00 PM - 4/29/2021 2:45 PM Central Time (CST) | Webinar

Sallie Mae will provide a refresher of the student loan program and conduct a LIVE Marketing Portal demo to walk through the process of ordering free higher education marketing materials. If your credit union is using the Sallie Mae student loan program and would like a refresher on the program prior to peak student loan season, this webinar is for you.

How Not to Manage Vendors: Strategies for Avoiding Costly Vendor Management Mistakes

4/29/2021 2:00 PM - 4/29/2021 3:00 PM Central Time (CST) | Webinar

Join Ncontracts as they highlight the strategic mistakes and oversights that lead to third-party vendor problems and what your institution should be doing to prevent them.

40th Annual Membership Meeting

5/6/2021 9:30 AM - 5/6/2021 10:00 AM Central Time (CST) | Virtual

The 40th Annual Membership Meeting of Corporate Central Credit Union will be held virtually at 9:30 a.m. CT on Thursday, May 6, 2021.

Monthly Market Monitor

5/12/2021 3:30 PM - 5/12/2021 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.

Flexible Funding Options to Reduce High-Cost Claims Risk

5/25/2021 1:30 PM - 5/25/2021 2:00 PM Central Time (CST) | Webinar

Depending on your size, makeup, and risk appetite, moving from the traditional fully-insured funding model can significantly reduce one of your largest budget items – employee benefits and healthcare costs. Join InterLutions for this 30-minute webinar to learn more.

2021 Virtual Economic Outlook Conference

10/12/2021 10:00 AM - 10/13/2021 4:00 PM Central Time (CST) | Virtual

Save the dates for the 2021 Virtual Economic Outlook Conference - Tuesday, October 12 and Wednesday, October 13. 

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