by Tim McAlpine, Founder & CEO Currency Marketing The importance of financial wellness is an issue that crosses our shared Canada-United States border. At Currency Marketing, we are committed to advocating for financial literacy and wellness. As we head into a new year, here's a compilation of facts and figures that highlight the significance of financial literacy programs and their potential to transform lives in the future. 1. The state of financial literacy A survey by the TIAA Institute and the Global Financial Literacy Excellence Center reveals that American adults correctly answer only 50% of financial knowledge questions. In Canada, nearly two in five adults (39%) rate their financial literacy as poor. Those with low financial literacy are more likely to struggle to make ends meet, lack emergency savings and dedicate a substantial amount of time to managing financial challenges. Conversely, high financial literacy is a valuable skill for both individuals and their financial institutions. 2. Tackling credit card debt Credit card debt in North America has reached all-time highs, with U.S. credit card balances exceeding $1 trillion and Canada’s credit card balances going over $100 billion. While inflation plays a role, poor money management skills are a significant contributor. Financially literate individuals tend to make better financial decisions, benefiting both themselves and the credit unions they belong to. 3. A looming retirement crisis A 65-year-old retiree can now expect to live to age 85. The average monthly Social Security check is $1,800 in the U.S. and $772 in Canada. Average monthly household expenses for retirees are $4,300 in the U.S. and $2,600 in Canada. However, according to a survey by the Healthcare of Ontario Pension Plan, 44% of Canadians have less than $5,000 saved for retirement. In the U.S., 40% of baby boomers have no retirement savings, as reported by The Hill. Retirement financial literacy pertains to understanding retirement planning tools, benefits and resources. 4. The proliferation of payday lenders An estimated 12 million Americans take out payday loans annually, with around 612,000 Canadians also resorting to them. Payday loans come with astronomical annual interest rates, averaging 400% (reaching 662% in Texas). Borrowers of payday loans are typically lower-income or unbanked individuals. Education is key to promoting more affordable and less financially hazardous borrowing options, which credit unions can offer. 5. Financial stress in the workplace According to PwC, 57% of employees cite finances as the leading cause of stress, turning to their employers for support. In the past year, financial stress has negatively impacted sleep (56%), mental health (55%), self-esteem (50%), physical health (44%) and relationships at home (40%). Structured financial education programs delivered by credit unions in workplaces offer an opportunity to enhance various strategies, from retail and business banking to member acquisition and community outreach. 6. Financially vulnerable and living paycheck-to-paycheck Emergency savings are dwindling, with 25% of Canadians unable to cover a $500 unexpected expense and 22% of U.S. adults have no emergency savings. A staggering 46% of Canadians and 42% of Americans live paycheck to paycheck, emphasizing the need for improved financial resilience. Credit unions can play a crucial role by providing tools and education on budgeting and emergency fund accumulation. 7. Barriers to homeownership Approximately half of Canada's non-homeowners are unlikely to enter the housing market. 50% of U.S. adults have encountered obstacles to homeownership, with rising home prices, lack of funding for down payments or closing costs, existing debt, limited budget options and poor credit history being the primary barriers. Financial literacy is a critical factor in homeownership, as it equips individuals with the necessary knowledge to become successful homebuyers.
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Leading cloud-native digital banking services provider Constellation Digital Partners (Constellation) announced a reseller partnership with Pulsate, to provide users of the Constellation Digital Banking platform with access to Pulsate’s mobile-first, personalized member engagement platform. The Constellation Digital Banking platform is designed to make it easier for community financial institutions to connect to fintechs. By leveraging open architecture, the platform provides community FIs with the flexibility to customize their own fintech solutions and gain more control over their technology roadmaps, streamlining the transition to digital banking and ensuring that their customers and members receive the personalized experiences that they deserve. Pulsate’s platform helps Constellation Digital Banking platform users extend the value of their technology investment by driving engagement through the online and mobile channels via real-time, proactive, personalized, relevant communications to members, delivered at the right time and the right place. Pulsate’s platform helps financial institutions deepen digital relationships, so their customers think of them first when they have a financial need. “As credit unions work to become members’ primary banking partner, it is essential that they meet those members where they prefer to operate – within the mobile channel,” said Sarah Martin, CEO at Pulsate. “Constellation and Pulsate share a vision of supporting true relationship banking beyond the branch, within the digital environment. As such, Constellation is a perfect partner for us to work with to help credit unions modernize the way that they communicate with their members.” “At our core, Constellation is about helping credit unions develop and realize a technology vision that will help them thrive in today’s digital banking environment,” said Kris Kovacs, Founder and CEO of Constellation. “To achieve this, we are committed to providing credit unions with access to the latest technology and the flexibility to configure their digital banking experiences in the way that resonates best with their individual members. We are excited to partner with Pulsate as their platform is proven to help financial institutions communicate more effectively with their members, driving engagement and fostering stronger relationships over time.” With a focus on the American Association of Credit Union Leagues’ (AACUL) recently updated mission, vision, and strategic pillars, credit union system leaders gathered in California this month for the 2023 AACUL Winter Conference. Over 200 attendees from across the League System as well as League Chairs, the CUNA board, federal and state regulators, and key business partners participated. The conference celebrated a renewed energy from Leagues for a sharp focus on advocacy impact, excitement for deepened collaboration throughout the League System, and intentional, strategic connection with the new America’s Credit Unions. This year’s theme - Connecting Ideas, Vision and Impact - was inspired by AACUL’s recently updated mission: to leverage the collective power of Leagues to create advocacy wins for credit unions and build a strong network of credit union associations. League attendees joined their colleagues in one of five peer-focused collaboration tracks designed for league presidents and chairs, league advocacy professionals, league communicators, league foundation executives, and league service corporation executives. Attendees also had the opportunity to come together for a powerful general session which was comprised of a notable lineup of professional speakers and industry stalwarts discussing key topics. The general session was bookended by outside speakers. Dr. Jennifer Golbeck, Director of the Social Intelligence Lab at the University of Maryland, talked to the group about levering artificial intelligence safely and strategically. Tanya Meck, Partner and Managing Director, Global Strategy Group stressed the importance of using impactful communications to own your brand in times of change. Important insights were shared by several League Presidents and other industry leaders through three impactful panels. Jeff Olson, president/CEO, Dakota Credit Union Association facilitated a powerful discussion about the evolution of AACUL and the intentional collaboration between the League System and America’s Credit Unions. Michael Bell, Financial Institutions Practice Group Leader with Honigman LLP, moderated a panel about the political and advocacy dynamics surrounding banks selling to credit unions. African-American Credit Union Coalition President/CEO Renee Sattiewhite led an inspirational discussion which detailed ways collaboration between Leagues and other industry organizations has helped propel DEI initiatives in the credit union space. (Detailed lists of panelists are in the photos below.) Key industry updates were provided by a variety of business partners. Sarah Bang, Senior Advisor to NCUA Vice Chairman Kyle Hauptman, shared the agency’s top priorities for 2024. Brian Knight, President/CEO, National Association of State Credit Union Supervisors (NASCUS) showcased how Leagues and NASCUS work together with state regulators to advance credit union priorities and impact. Ryan Donovan, President/CEO, Council of Federal Home Loan Banks discussed how the FHFA’s new report will impact credit unions. Future PSCU and CO-OP combination President/CEO Chuck Fagan shared his vision for the future of PSCU and Co-op Solutions, including how the combination will benefit the credit union industry. Carolinas Credit Union Foundation President/CEO Lauren Whaley highlighted some of the major accomplishments and the resulting impact league foundations had this past year. AACUL held its annual meeting in conjunction with the conference during which the new AACUL Board took effect, and 2024 AACUL Board Officers were elected:
Other AACUL Board members include Director Patty Corkery, president/CEO of the Michigan Credit Union League and Director Caroline Willard, president/CEO of the Cornerstone League. Ex-officio members of the AACUL Board include Jeff Olson (Immediate Past Chair), president/CEO of Dakota Credit Union Association; Jim Nussle, president/CEO of America’s Credit Unions; and Brad Miller, president of AACUL. Photo Caption: AACUL President Brad Miller and departing AACUL Board Member Diana Dykstra pose with the League Presidents serving on newly elected AACUL Executive Board. (From L to R: CrossState Credit Union Association President/CEO Patrick Conway, Dakota Credit Union Association President/CEO Jeff Olson, Michigan Credit Union League President Patty Corkery, MD|DC Credit Union Association President/CEO John Bratsakis, Cornerstone League President/CEO Caroline Willard, Carolinas Credit Union League President/CEO Dan Schline, California and Nevada Credit Union Leagues President/CEO Diana Dykstra, AACUL President Brad Miller.) SECU Foundation and North Carolina Coastal Federation Collaborate to Protect Coastal Communities12/17/2023 SECU Foundation and North Carolina Coastal Federation (NCCF) are teaming up to help protect and enhance five North Carolina coastal communities through a three-year expansion of NCCF resilience projects. The Foundation’s advocacy for their valuable work brought a $250,000 challenge grant to directly support the development of programs to build coastal resiliency, reduce vulnerability to environmental threats, and strengthen local infrastructure and economy. NCCF serves the coastal zone of the state, which includes 20 counties and over 100 municipalities that have areas struggling with poverty, extreme racial disparity, and economic inequity. Of the 20 counties, 14 are in Tier 1 and Tier 2 counties. In 2022, NCCF restored over seven acres of oyster reef and nearly 2,000 acres of wetlands, cleaned up nearly 420 tons of marine debris, and mobilized over 600 volunteers to support this work. “This project is a wonderful opportunity to proactively support coastal communities by protecting and restoring our state’s coastal areas that are threatened by environmental and economic challenges,” said SECU Foundation Executive Director Jama Campbell. “This valuable and important work will help sustain community infrastructure and ensure future cultural and economic opportunities for residents, visitors, and our state.” “Over the past four decades, the Federation has helped dozens of local governments plan and implement projects that support the community and the ecosystem, ranging from salt marsh restoration, watershed plans, living shorelines, and more. These projects make our communities more resilient to storms and sea level rise and bring federal dollars to support coastal improvement projects. We’re grateful for the leadership support of SECU Foundation in launching this new partnership,” said Coastal Federation Executive Director Todd Miller. Projects like this are funded by SECU members through SECU Foundation and provide opportunities for local branch staff to volunteer and engage with non-profits for community initiatives, such as with NCCF for coastline cleanups and living shoreline projects. Magnifi Financial and Eltropy Partner to Pioneer Industry-Defining Generative AI Solutions12/15/2023 Eltropy, the leading digital conversations platform for community financial institutions (CFIs), and Magnifi Financial have partnered to introduce cutting-edge generative AI solutions designed to overcome the friction of traditional support and employee training to deliver exceptional member and employee experiences. Powered by CFI-specific large language models (LLMs), Eltropy's generative AI tools are bringing efficiency and personalization to community bank and credit unions' engagement strategies, a journey that Magnifi shares. “Our journey towards digital transformation led us to Eltropy's AI chat solutions, and we're starting to see remarkable results,” said Brad Shafton, Senior Vice President, IT and Digital, Magnifi Financial, a $2.2 billion credit union in central Minnesota. “What sets Eltropy apart is not just their technology but also their dedication to understanding the credit union industry and their commitment to community financial institutions like ours. They continue to evolve, and that's why we consider them a long-term partner, including for AI.” Eltropy is not only improving the member experience but is also expediting processes, such as helping with loans in Magnifi’s mortgage and lending department, making it a win-win for both the credit union itself and its members, said Shafton. At the forefront of this transformation are Eltropy’s "Employee Assistants" that enable contact center agents, tellers, and other customer-facing personnel to instantly access vetted, verified knowledge and automate tasks like auto-generating emails and more, all in natural conversation. Eltropy's member-facing ChatGPT-style agents provide swift, accurate responses to typical member queries, improving service efficiency, reducing wait times, and alleviating the workload for credit union call center agents and other staff. This optimization allows credit unions like Magnifi to allocate more resources to more complex interactions. "As we embrace the era of generative AI, alongside the current economic challenges and persistent staff shortages, credit unions and community banks are actively looking for innovative ways to thrive," said Eltropy Co-founder and CEO Ashish Garg. "Eltropy's generative AI tools are empowering forward-thinking CFIs to achieve this by accelerating and enhancing employee knowledge training, improving the member experience and ultimately fueling growth." Eltropy's commitment to advancing generative AI aligns with industry trends and the growing demand for personalized and efficient member interactions. These advancements are reshaping the credit union landscape and ensuring that credit unions remain competitive in a rapidly evolving financial sector. Explore the exciting possibilities of generative AI for credit unions in the upcoming series of webinars entitled “Beyond Limits: Transforming Member Experience with AI,” at 12:00 noon EST on Dec. 18, 19, 20, 21 and 22. Register your session. CUES Directors Conference 2023 attendees united under the “Spirit of Giving” in Maui this week, driven by a shared mission to help those affected by the devastating wildfires that ravaged the island last August. These heartfelt acts of generosity translated into support for Maui’s fire-stricken community and the dedicated staff of host hotel Hyatt Regency Maui Resort & Spa through:
Additionally, CUES has made a commitment to invest $15,000 in the relief and recovery efforts of the credit unions and people of Maui. “It is unimaginable for us to know what it has been like for the Hyatt team and the people of Lahaina these past five months, who have lost too much to comprehend, yet have given us so much this past week,” said Heather McKissick, CUES CEO. “Our members, attendees, sponsors, and staff showed up in a big way this week, and truly embraced the spirit of kuleana—which is the responsibility and privilege to care for community. The humanity and kindness the CUES Directors Conference attendees have shown warms my heart, knowing the cooperative spirit of credit unions is strong, and the credo “People Helping People” is alive and well. It was our goal to leave behind more than we came with, and we hope we have done just that.” "I've been with this company for twelve years and I've never seen anything like this,” said Luke Yurek, Hyatt Regency Maui Director of Rooms. “The real beauty of this island is in its culture and its people; we now consider you and everyone in this room to be ohana—part of our family. Thank you so much. This is unbelievable, and we'll never forget it." The Spirit of Giving page will be open for additional donations through December 22. CUES Directors Conference is the premier event for board members in the credit union industry. Next year’s event will be in Nashville, TN, December 8-11, 2024. Learn more about CUES at cues.org. University Credit Union (UCU) is proud to announce the success of the Annual Toy & Book Drive for Mattel Children’s Hospital. For over a decade, UCU has been a dedicated partner with the UCLA Mattel Children’s Hospital and the more than 6,000 children they treat annually. This year, UCU was able to raise over $18,000 in donations, in addition to the books and toys. UCU’s sponsored book cart also delivered books and toys directly to patients and their families, to help enrich their minds and lives during the life-changing care provided by the hospital. The annual fundraising event was first started by a former board member with a simple collection box at the UCLA career center. Since then, it has grown exponentially with generous donations from the university community and caring support from UCU’s member-owners and their families. “As a people-first organization, any opportunity to support our members, their families, and our community is deeply cherished. This year, UCU is honored to continue supporting this amazing cause.” Dr. David Tuyo II, CEO of University Credit Union, says. “I want to thank all of our members for their generous support and recognize UCLA Mattel Children’s Hospital for the incredible work they do for our community.” Toy, book, and monetary donations were collected online, at select UCU Advisory Centers, and delivered directly to the UCLA Mattel Children’s Hospital on December 12th, 2023. Every member contribution was matched with an in-kind donation from UCU. “We are immensely grateful for the support that UCU provides to the Chase Child Life program,” Kelli Carroll, Director of Chase Child Life, says. “Their contributions have continued to grow over the years, and their recently named book cart has been a welcomed edition for distributing books, many of which are donated by them directly, for our patients and families.” Desert Financial Credit Union announced $300,000 in donations to Arizona nonprofits through its grant program today. This is the credit union’s largest grant cycle to date, an increase of more than 25% compared to 2022 and more than double the amount awarded just two years ago. “At Desert Financial, we care about the communities where we work and live,” said Ron Amstutz, Desert Financial Credit Union executive vice president. “We focus our grants on programs for children and families that will improve their future and, in turn, make Arizona a better place for all of us to live.” Grants ranging from $5,000 to $15,000 were given to 26 nonprofits focused on education, child and youth services, housing and human services. The organizations were selected through a formal application and review process. Organizations receiving grants from Desert Financial in 2023 include:
Desert Financial has provided more than $1.5 million to Arizona non-profits through grants in the past decade. To learn more about Desert Financial’s grants, visit DesertFinancial.com/Community. Employees of Greater Texas Credit Union are making Christmas merry for seven large families as part of the Any Baby Can Christmas adoption campaign. Gifts of toys, games, clothes, and gift cards were purchased for each family member, totaling 42 people in all. Employees then held a wrapping party to prepare the gifts to be delivered before Christmas morning. The families receiving these gifts have all experienced various challenges this year and are doing all they can just to afford the basic necessities. Facing high housing costs and inflation, Christmas presents are an unaffordable luxury for them. “Our Adopt-a-Family is one of the most rewarding programs we provide to many of the families at Any Baby Can,” said Amelia Brown, Donor Relations Coordinator for Any Baby Can. “Buying gifts for the holidays can seem overwhelming and unattainable because of the hardships or adversity these families may be facing.” Brown added, “By adopting a family, Greater Texas will bring cheer and smiles not only to the children but the families we serve. Our gratitude knows no bounds.” Any Baby Can supports families in Central Texas, providing programs and resources to strengthen the family as a whole. Its primary mission is to educate and empower parents so that their children can reach their full potential. PSCU, the nation’s premier payments credit union service organization (CUSO) and an integrated financial technology solutions provider, has announced a $31.0 million annual patronage dividend for the 2023 fiscal year, with a cash distribution of 30%. As part of its commitment to helping Owner credit unions succeed and prosper, PSCU’s total cash distribution to Owners this year is $19.4 million, including $7.6 million in capital credits and $2.5 million in revolving funds. Since its founding, PSCU has issued more than $668.6 million in patronage dividends, with more than 55% distributed in cash. “PSCU is proud to once again deliver an outstanding dividend to our Owner credit unions – a 93% year-over-year increase – while maintaining a record level of capital spend that continues to grow,” said Chuck Fagan, president and CEO of PSCU. “PSCU remains a financially healthy cooperative, with a firm commitment to delivering both ongoing investments in innovation and strong returns for our Owners. As we look to the future, we are confident that the transformative combination of PSCU and Co-op Solutions will create the premier fintech solutions provider for credit unions, providing an unparalleled portfolio of solutions and services that will further fuel growth and accelerate innovation for our Owners.” On Nov. 6, PSCU and Co-op Solutions announced an agreement to combine. The companies will continue to operate as two independent companies until the close of the transaction, which is expected to be completed by the end of December 2023 following the successful vote of both organizations’ Owner/shareholder bases, as well as other customary closing conditions. Highlights from PSCU’s Fiscal Year 2023 year include:
PSCU Owners benefit from the company’s investments by sharing the financial returns distributed through the company’s annual dividend. The origin of PSCU’s model is collaboration and scale, and the company has leveraged its influence on behalf of credit unions and their members for more than 45 years. |
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
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