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November 2021

    A Note from Chris

    Thank you to those who participated in our annual Economic Outlook Conference. I hope you found the presenters and topics relevant and helpful in your planning efforts for the new year. I am thankful to our expert presenters for their time, insights, and advice. I am also thankful for the technology that has allowed us to virtually conduct this valuable conference the past two years. BUT, I cannot express enough how much I am looking forward to adding the networking aspect back into next year’s conference. The time we spend together, in-person, having discussions and sharing ideas is invaluable!

    As we plan for 2022, we are focused on ways to bring credit union leaders together to learn and exchange valuable information that will help credit unions prosper. Providing our members with educational opportunities and easy access to industry expertise is a high priority at Corporate Central. Please provide us with your recommendations on educational topics and your credit union’s specific needs. We strive to provide quality educational offerings surrounding relevant topics and aim to deliver engaging events. We have a diverse group of credit union experts here at Corporate Central and can deliver presentations based on asset/liability management, digital transformation, risk management, economic and financial trends, employee benefit strategies, and more.

    Thank you,

    Chris Felton's signature

    Chris Felton

    What’s Trending?

    Neobanks, Fintechs, Bigtechs. How does your credit union compare to challengers?

    No matter how hard you try, challenger banks are hard to ignore. Each day seems to bring news of another challenger bank, or another partnership or acquisition of one, and the activity of challenger banks is poised to only increase as they are taking the banking market by storm. While credit unions differ in approach by honing in on personal connections with members, there is a lot to be learned from challenger banks. All in all, members and customers are after the same thing, which is high tech and in channels that work best for them.

    Read the Article

    Technology Solutions

    Moving to the cloud should be the first step in your credit union’s digital transformation initiative.

    Leveraging the cloud is the only way to truly start a digital transformation. Below are just a few of the ways that digital transformation can enrich your credit union’s “member experience.”

    • Consolidates processes and operations – Putting money aside, the greatest universal benefit that technology has given businesses is that it has made it easier to connect with people.
    • Increases agility and innovation – In business, agility is the ability to continuously improve and develop quickly, especially regarding digital processes.
    • Enhances data collection – Most businesses are collecting mountains of data on their customers, clients, or members, but the real benefit is optimizing this data for analysis that can drive the business forward. Digital transformation creates a system for gathering the right data and incorporating it fully for business intelligence at a higher level.
    • Improves productivity – Having the right tech tools that work together can streamline workflow and improve productivity. By automating many manual tasks (RPA) and integrating data throughout the organization, it empowers team members to work more efficiently.

    When it comes to transitioning to the cloud, contact your trusted Emergifi representative for advice and assistance. We are available to help you.

    Employee Benefit Resources

    Pay less for employee healthcare.

    InterLutions empowers credit unions to take control of their increasing healthcare challenges by providing affordable, competitive, and sustainable coverage for their employees. Through our I-Care Employee Benefits solution, InterLutions partners with credit unions to deliver an innovative group program to reduce the volatility and expense of health insurance by pooling risk. This solution provides credit unions with the flexibility to choose from multiple networks, while individually determining their plan design and structure to best meet the needs of their employees.

    I-Care is a collaborative employee benefits solution that lets you:

    • Give employees the benefits they deserve
    • Provide benefits that attract and retain top-quality employees
    • Lower healthcare costs for your employees and credit union

    Our solutions have proven to save credit unions 12% on their employee medical insurance costs. Call us today at (414) 433-0174 or visit InterLutionsCUSO.com for a free evaluation.

    Financial Services Consulting

    Follow your benchmark.

    Bond yields continued their ascent last month, climbing to the post COVID-19 highs hit last March. While yields rose approximately 25 basis points during the month, it was market psychology and reaction to the economic releases that provided the most compelling story.

    Prices bounced around the first week of the month with little net change going into the month’s most anticipated economic release – the employment data. Non-farm payrolls were reported sharply lower than anticipated, an event that would normally send bond prices higher. Instead, market participants let out a big yawn and prices moved sideways. Market commentary discussed the bullish news that a weaker economic landscape provides for the bond market. However, the chief focus of the analysis examined the implications the news had on the Fed’s timing of tapering its quantitative easing purchases. With no real consensus on this front, yields stayed put and talk moved to the inflation numbers that would be released the following week.

    The inflation data reported the next week showed CPI coming in above expectations, 5.4% year over year, while PPI was released at an 8.6% year over year pace, on top of forecasts. One would expect yields to climb on the news but Wall Street analysts, as well as top Fed officials, hit the newswires talking about supply chain breakdowns creating “inflated” numbers that we should not worry about. The market agreed and again prices remained stable.

    The release of the retail sales number the next week proved interesting. Forecast to fall 0.2%, retail sales were reported up 0.7% for the month along with an upward revision to the prior month’s number. Analysis pointed to the inflationary pressures generated by strong retail sales with barely a mention of the possible effects on the timing of a Fed tapering. Market psychology shifted sparking downward price movement and higher yields for bonds. Essentially, Wall Street was telling us not to worry about inflation when faced with elevated levels of inflation being reported, but that we should be concerned when economic numbers were reported that could lead to higher inflation numbers down the road. Buy the rumor, sell the news?

    Again, we find ourselves in the same place. Do not think you can figure out where interest rates are going. Even if you tore a page out of the “Trading Places” script and get hold of the major economic releases before the rest of the market, psychology may send yields in a different direction than expected. Manage your portfolio and your balance sheet across the rate spectrum to keep your credit union in good position regardless of the direction rates take. Follow your benchmark. We can help on this front. Give us a call at (414) 433-0176.

    Did You Know?

    Credit unions need to shift their marketing strategies around personalized messaging.

    Have you ever had the experience of looking for shoes in one app, then seeing them again in Facebook or Instagram or even your weather app? While not all apps track your browsing activity, those that do might share or sell your browsing activity to advertisers. This tracking across apps is basically how consumers end up searching for something in one place and see that product again and again in other places. Some consumers were not happy about ads “following them” across multiple channels. In late April, Apple announced that iOS 14.5 would have the ability to turn off apps tracking your activity for targeted advertising purposes.

    Learn More

    Credit Unions Connect

    Stories that exemplify the movement

    Supporting an inclusive community.

    Veridian Credit Union and future waterpark design

    Veridian Credit Union donated $8,000 towards an all-inclusive park named, Triumph Park, in Waukee, IA. The 66-acre park will feature a 15,500 square foot EPIC Inclusive Playground. The playground will allow children of all ability levels access to a fun, safe park experience. The credit union stated, “The All-Inclusive project at Triumph Park in Waukee is nearing completion, and Veridian is grateful for the opportunity to support this accessible facility.”

    Going pink for a good cause.

    Financial Plus Credit Union at Hurley breast cancer awareness event

    On October 1, Financial Plus Credit Union hosted a bake sale at all their branches to benefit the Hurley Medical Center for their Breast Cancer Navigation research program. Through the generosity of members and staff, the credit union was able to raise $4,000 for the program. The bake sale was followed later in the week by the 13th annual Pink Night Palooza, an event to raise awareness and donations for breast cancer research.

    Read More Credit Union Stories

    What’s New and Who’s Who

    QuantyPhi introduced an Investment Portfolio Optimizer tool for credit unions.

    QuantyPhi recently announced a new Investment Portfolio Optimizer for credit unions. The tool mathematically calculates an ideal purchase strategy based on a credit union’s current holdings and chosen benchmark. The tool shows, in real time, how a mix of potential investments will influence a credit union portfolio’s total return. Further, the tool can automatically allocate available investment dollars to a mix of securities, allowing the credit union to maximize investment returns while adhering to acceptable risk levels, as prescribed by its preferred benchmark.

    Learn More

    Wild Adventures with Leo

    Leo’s adventures in October were XTREME!

    Leo at Cystic Fibrosis Foundation's Xtreme Hike

    Leo was super excited to participate in the “Xtreme Hike” to benefit the Cystic Fibrosis Foundation this past month. According to their website, the Cystic Fibrosis Foundation’s Xtreme Hike event takes hikers through some of the most scenic trails in the nation (every lion’s dream 😉) to raise funds and awareness for cystic fibrosis. Xtreme Hike is about reaching new heights – physically and philanthropically. It’s a journey of passion, determination, and personal triumph, as much as it’s an opportunity to make a difference in the lives of people with cystic fibrosis.

    Leo at Feeding America Eastern Wisconsin

    Leo also spent some time volunteering with Feeding America Eastern Wisconsin, a leading hunger relief organization in the state of Wisconsin, operating food banks in Milwaukee and the Fox Valley. Together, with a network of about 400 member organizations, Feeding America Eastern Wisconsin provides food to nearly 400,000 people each year. Way to go, Leo!

Upcoming Events

Monthly Market Monitor

7/13/2022 3:30 PM - 7/13/2022 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.

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.

Crystal Ball Challenge Update

7/20/2022 2:00 PM - 7/20/2022 2:30 PM Central Time (CST) | Webinar

Join QuantyPhi for our 30-minute webinar to see how our contestants are doing in our Crystal Ball Challenge. This is the second of four quarter-end competitions.

Credit Union Day at the Ballpark 2022

7/24/2022 10:30 AM - 7/24/2022 4:00 PM Central Time (CST) | Milwaukee, WI

Save the date for Credit Union Day at the Ballpark, Sunday, July 24, 2022 in Milwaukee, WI.

Monthly Market Monitor

8/10/2022 3:30 PM - 8/10/2022 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.

Monthly Market Monitor

9/14/2022 3:30 PM - 9/14/2022 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.

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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