Empty your spare change bottles and jars and help local organizations! From now through March 31, 2022, local residents can help make a difference in their communities by cashing in their spare change. As part of its Coins-for-Change program, Connex Credit Union will collect its regular coin-cashing machine fees and donate 100 percent of the money to three charitable organizations. As part of Connex’s philanthropic initiative ConnexCares, Coins-for-Change supports three new charities each quarter and contributes more than $14,000 annually. It is available to anyone, including those who are not members of the credit union. “Participating in Coins-for-Change is an easy way for folks to help worthwhile causes while putting a little extra money in your pocket,” said Louise Nestor, director of marketing, Connex Credit Union. “Small change can really add up and help make a big difference in your local community. Bring your spare change to one of our coin-cashing machines at the following Connex branches by March 31, and 100 percent of the fee will be automatically donated to the participating organization.”
For more information, or to learn how your local nonprofit or charitable organization can participate in the Coins-for-Change program, please contact Nelson North at nnorth@connexcu.org or 1-800-CR-UNION.
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Most of the excitement surrounding cryptocurrency has focused on Bitcoin and similar altcoins. This is understandable, as this asset class accounts for over 95% of the market value assigned to digital currencies and has been responsible for eye-popping returns in recent years. Lurking just outside the spotlight are Bitcoin’s unassuming cousins, stablecoins – a form of cryptocurrency that is usually pegged to fiat money or physical assets to maintain a set value. Stablecoins may hold the key to delivering crypto’s promise to mainstream financial services because they retain most of cryptocurrency’s positive attributes, such as cheaper and faster transaction settlement, but without the price fluctuations. While the latter may eliminate the feature that sets day traders’ hearts racing, it also makes cryptocurrency’s use as an exchange medium more realistic. Ironically, today’s most common stablecoin use case is on crypto exchanges, enabling traders to reduce their risk by shifting into less-volatile cryptocurrencies. Before dismissing this as a fringe situation, consider that stablecoins are already being used to settle nearly $6 trillion in annual transaction volume. That’s roughly half of Visa’s throughput. Assuming that statistic piques your interest, let’s consider how and where these digital assets can be applied. Staying Tethered to the Dollar There are four subgroups of stablecoins, categorized by how each pegs its value. The most popular are backed by fiat currency – typically the US dollar – on a one-for-one basis. The best known of these are Tether (the #4 cryptocurrency as measured by market capitalization), USD Coin (#7), and Binance (#16). You’ll find each trading at precisely $1.00 on leading crypto exchanges. The fiat collateral underpinning these coins is placed in reserve with a central issuer or financial institution. Crypto experts sometimes refer to these coins as “off-chain assets” as the underlying collateral doesn’t itself reside on the blockchain. Commodity-backed stablecoins apply a similar model, using physical assets like gold, oil, and real estate as collateral. However, since these underlying assets fluctuate in price, such coins’ values are less stable. While addressing some primary concerns limiting the usefulness of crypto like Bitcoin, these subgroups have some risks and drawbacks. Its underlying collateral is encumbered, restricting its productive use. Collateralization arrangements can be difficult to audit. Additionally, a central issuer’s failure or reputational crisis could imperil the stablecoin issued. Crypto-collateralized stablecoins and non-collateralized stablecoins, which use algorithms to manage the asset’s market value, also exist. Except for DAI, a crypto-collateralized instrument that has retained a value close to $1.00 and has become the 26th largest coin by market cap, these more complex instruments remain less common. Settling for the Mass Market JPMorgan Chase has been very active in this space, developing a US dollar-pegged JPM Coin to transfer funds between the bank and commercial clients. JPM’s embrace of the technology is particularly notable given CEO Jamie Dimon’s well-publicized disdain for Bitcoin. This reinforces stablecoin’s unique value proposition. In a similar vein, Visa has enabled USDC as a settlement option across 70 million of its network merchants. The interest of major financial services players is natural given stablecoin’s compelling use case for cannibalizing existing card payment rails and vehicles like wires, checks, ACH, and SWIFT’s international settlement network. Central Bank Digital Currencies (CBDCs) – a variant of stablecoin – could save businesses $100 billion annually in cross-border settlement costs, according to JPMorgan research. Regulators have also taken note, with the President’s Working Group on Financial Markets telegraphing interest in greater stablecoin oversight. Whether regulatory clarity emerges from Congress or federal agencies, such actions will lend legitimacy to and further the adoption of stablecoins. Such actions would also impose new compliance burdens. Some crypto issuers have already pursued banking licenses or partnered with banks anticipating such moves. The Bottom Line Stablecoins are punching above their weight, generating more transaction volume than their $115 billion market cap would indicate. Major banks are already using the technology, which offers significant potential for faster payment settlement at a lower cost. Prospective legislation will likely move stablecoin further into the mainstream. Our most recent webinar dives into more detail on stablecoins – watch it here. SRM is closely monitoring ongoing developments in the crypto space, and we believe 2022 will be a critical year for strategic decision-making. Now is the time for banks and credit unions to prepare an action plan. NCR Corporation today shared results from its recent survey conducted online by The Harris Poll. More than 2,000 U.S. adults, among whom more than 1,800 have a primary financial institution (referred to as banking customers throughout), were surveyed around their banking relationships and preferences. Key findings from the survey include:
“These survey findings really underpin the increasing urgency for banks and credit unions to embrace a digital-first mindset; that doesn’t mean digital-only, but rather digital everywhere,” explained Douglas Brown, president, Digital Banking, NCR Corporation. “Customers want to continue relying on their proven and trusted institution, but if those banks and credit unions can’t modernize their approach to customer engagement, hyper personalize interactions and quickly innovate, they risk failing to keep up with emerging competition. Now more than ever, financial institutions need to embrace modern software and services to protect and grow relationships.” ### What you need to know about mainstream banking services and fintechs, and why you should ultimately consider joining a Credit Union. Formerly incarcerated individuals face significant challenges when it comes to accessing mainstream banking services. Limited access can have a huge impact on economic wellbeing and the ability to achieve sustainable financial independence. More than 600,000 people, the majority of whom are people of color and women, are released from our prison systems every year and attempt to rebuild their lives. While there is increasing support from government and community-based organizations for housing and employment, when it comes to affordable financial services, many people hit a roadblock. Formerly incarcerated individuals frequently encounter a financial system that doesn’t welcome them back into the mainstream, often forcing them to use check cashers, payday lenders and other high-cost, non-bank options. They have difficulty opening a checking account, have often had their identity stolen and find it nearly impossible to get a loan. But the news isn't all bad. There are several options for justice-involved individuals in today's market. Being an educated consumer with a better understanding of each of these providers -- and their advantages and disadvantages -- can help you decide which option may be best for you. Financial Services for Justice-Involved Individuals Second Chance Banking Programs. Second chance checking may be an option if you've been denied for an account due to a negative banking history. Consumers can access these programs through financial institutions located in all 50 states. However, because of the higher risk, the terms and conditions may be less attractive than accounts available to general consumers. Many financial institutions impose service charges or have minimum balance requirements and other account restrictions. On a brighter note, a number of credit unions and banks have started offering more affordable products aimed at helping unbanked communities. The Cities for Financial Empowerment Fund's national Bank On platform supports financial institution efforts to connect these consumers to safe, affordable bank accounts. As a great example of one of these initiatives, several large credit unions have recently come together to offer Dora Everyday Checking, a Bankon certified, all digital experience, with fee-free checking, early payday, direct deposit, mobile deposit, and access to a network of 30,000 surcharge-free ATMs. For the rest of the story, visit First Step Alliance here. Canvas Credit Union, Western Rockies Federal Credit Union Celebrate Approval for Partnership1/3/2022 Canvas Credit Union, one of Colorado’s leading credit unions serving communities across the Front Range for more than 82 years, and Grand Junction-based Western Rockies Federal Credit Union (Western Rockies FCU) are pleased to announce the official approval of their merger. Following the credit unions’ announcement of their proposed partnership in November, Western Rockies FCU members voted in favor of the business combination on Dec. 30. With approval now in place, the credit unions celebrate the opportunity to bring together the best of the Front Range and Western Slope by broadening the Western Slope’s access to leading financial services, enhancing community involvement in the area, and expanding the Canvas family. The process for integrating Western Rockies FCU into the Canvas brand and operating structure will now begin and progress throughout 2022. Western Rockies FCU’s three branches in Grand Junction, Rifle and Fruita remain open to serve members and Canvas is thrilled to officially welcome to its family Western Rockies FCU’s more than 40 team members. Canvas’ immediate plans include gathering input from Western Slope community members, to infuse with its industry-leading model. The credit unions will take the majority of the year to carefully execute the integration plans, with the intention of ultimately delivering an enhanced and tailored experience to best fit the Western Slope community’s needs. Canvas Credit Union is committed to open and transparent communication with its Western Slope members throughout the integration process, to ensure all needs are well supported. |
Author: Mike LawsonMarried to a most gorgeous and wonderful wife, raising 5 kiddos (including twins!), enjoy helping others tell their stories, and love surfing SoCal waves. Keep it simple. Archives
May 2024
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