Author: Denise Wymore

CO-OP Payments Trends Report (Spending Data from February 1-28)

March marked the one year anniversary since the first COVID-19 lockdowns went into effect. After months of unpredictable spending across credit and debit, we appear to be moving towards normalcy; as of last month, transaction volumes climbed back to pre-COVID levels, but with a few caveats:

#1: Members Shifting from Essentials Spending to “Lifestyle” Purchases

While overall payments volume is back up, major spending categories like air travel, restaurants and hotels have still not fully-recovered to pre-COVID levels. However, when we look at credit and debit activity month-over-over month, we can see that trend is slowly changing.

“Full recovery is going to be slow,” says Beth Phillips, CO-OP Director of Strategic Portfolio Growth. “However, comparing January and February data we’re seeing increases across dining, entertainment, lodging, medical and travel – all positive indicators that members are conducting more select life-style related purchases.”

“People are prioritizing getting back together with family and friends through small gatherings,” said CO-OP Senior Payments Advisor John Patton. “At the same time, people are still making those ‘lifestyle upgrades’ with their cars and living space.”

Phillips adds, “As more people receive the vaccine, we’re going to see more regular lifts in category-level spending, which is why it is important to pay close attention to month-over-month category spending lifts in order to spot top of wallet opportunities.”

Continue reading One Year Later: A Glimpse at Post-COVID Spending

New Digital Capabilities for Credit Unions Expand Consumer Access to Data-Driven Lending Solutions

CUNA Mutual Group’s AdvantEdge Analytics has evolved into AdvantEdge Digital, now offering a suite of software as a service (SaaS) solutions. In addition to existing data and analytics solutions, AdvantEdge Digital is delivering a proprietary, consumer-centric digital lending solution to the credit union industry. The digital lending solution provides a transparent, seamless experience to both members and loan officers, and expands access to the loan application process for more consumers.

“Members expect real-time, contactless and self-service delivery of financial services, and we are committed to building, buying and partnering to bring additional capabilities to consumers,” said Dan Kaiser, president of AdvantEdge Digital.

“By building this new digital capability as part of our evolution to AdvantEdge Digital, we will help even more members by harnessing the power of analytics and the digital lending experience. We’ve worked extensively with our credit union partners and their members at every step of building this solution. With a broader mindset and a suite of nimble, iterative SaaS solutions, we are excited to help credit unions unlock their digital potential, helping more members achieve financial wellness.”

The digital lending solution includes automated document upload to cut down on back-office paperwork, provides a dashboard to clarify loan status and integrate cross-sell opportunities, and frees up the loan officer to spend more time with members. It also provides a seamless member experience. Through features like the Loan Simulator, the digital lending solution demystifies the lending process for members and provides simple, step-by-step guidance and real-time responsiveness.

Continue reading CUNA Mutual Group’s AdvantEdge Analytics Becomes AdvantEdge Digital, Debuts New Suite of SaaS Solutions to Empower Credit Unions and Consumers

PSCU, the nation’s premier payments credit union service organization (CUSO), has announced it has expanded its partnership with Credit Union of Texas (Dallas). In addition to support services for debit, the CUSO will now also provide credit processing support for the credit union.

Founded in 1931, Credit Union of Texas is dedicated to providing its members with “more” – more service, value and solutions to help members meet their financial needs. With over $1.6 billion in assets, the credit union serves nearly 150,000 members across 50 states. Credit Union of Texas was interested in migrating its credit and debit processing services to a single platform in order to offer members a more unified experience. PSCU has provided Credit Union of Texas with debit services for many years, making an expansion into credit services a seamless transition.

“The Credit Union of Texas team was seeking a partner that understands our credit union’s goals and has the technology infrastructure to stay on top of the changing landscape, all of which we found in PSCU,” said Credit Union of Texas Chief Administrative Officer Angela Faust. “PSCU offered a number of enhancements to our credit card offering, including a combined credit and debit rewards program and better control over our credit risk through the CUSO’s fraud monitoring tools. We are eager to begin work with the PSCU team in this expanded capacity.”

PSCU will provide credit card services and support to the credit union beginning this summer.

“We are always honored to have the opportunity to grow a relationship with a longtime partner, and we are especially pleased Credit Union of Texas chose to expand its partnership with us,” said Brian Scott, SVP, chief growth officer at PSCU. “We look forward to continuing to work with the team to provide its members with the seamless experience they have come to know and expect from their trusted credit union partner.”

About PSCU

PSCU, the nation’s premier payments CUSO, supports the success of 1,500 credit unions representing more than 5.4 billion transactions annually. Committed to service excellence and focused on innovation, PSCU’s payment processing, risk management, data and analytics, loyalty programs, digital banking, marketing, strategic consulting and mobile platforms help deliver possibilities and seamless member experiences. Comprehensive, 24/7/365 member support is provided by contact centers located throughout the United States. 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 40 years. Today, PSCU provides an end-to-end, competitive advantage that enables credit unions to securely grow and meet evolving consumer demands. For more information, visit pscu.com.

AuditLink, the audit and compliance division of CU*Answers, and Lillie & Company, a CPA services provider, recently facilitated a joint web conference on credit union internal controls and fraud controls attended by over 100 credit unions.

Lillie & Company is and has been one of the main CPA firms contracted to perform forensic analysis for the NCUA when insider dishonesty is suspected. In Fall 2020, Lillie & Company and AuditLink formed an alliance revolving around BSA and ACH audits for CU*Answers clients, as well as aligning strategic objectives for both firms. One of the firms’ major objectives was training credit unions on best practices related to internal controls. “The shear amount of embezzlements in our industry has been on the rise and the main reason is the lack of basic internal controls,” said Steve Lillie, President of Lillie & Company. “Educating credit unions through the use of real-life stories drives the point home on how much this problem is costing the industry, insurers, and NCUA.”

Jim Vilker, VP of Professional Services of AuditLink pointed out “it’s about the basics of segregation of duty, appropriate oversite, and awareness of the basic internal control to prevent these types of embezzlements—many of which resulted in the merger or liquidation of the credit union.”

The web conference concentrated on real life embezzlements, the events surrounding each case, and what internal controls broke down that led to the event. Lillie & Company performed the forensic analysis on these investigations and in some cases was assisted by AuditLink. Steve Lillie stated in the conference it is all about opportunity and motive. “The main point is that loose internal controls open the door for bad actors who are motivated to take advantage of the resulting vulnerabilities.”

Vilker added, “What was so self-evident 10 years ago relative to a culture of internal controls seems to have been lost. It is almost like the old guard is not training the new guard on the basics”.

The conference was highly attended and well received, with many participants asking for a follow up event.

About CU*Answers, Inc.

CU*Answers offers expertise in implementing technical solutions to operational needs, and is a leader in helping credit unions form strategic alliances and partnerships. CU*Answers provides a wide variety of services for credit unions including its flagship CU*BASE^®processing system (online and in-house) and Internet development services featuring It’s Me 247 online and mobile banking. Additional services include web development, network design and security, and image check processing. Founded in 1970, CU*Answers is a 100% credit union-owned cooperative CUSO providing services to credit unions representing over 2 million members and $21.5 billion in credit union assets. For more information, visit www.cuanswers.com.

Lumin Digital, a PSCU company, has been selected by Firstmark Credit Union (Firstmark) to provide online and mobile digital banking to more than 60,000 users when the credit union goes live on the platform in April. Firstmark, a long-time PSCU partner, has signed a multi-year agreement for Lumin Digital’s cloud-native platform.

Founded in 1932 in San Antonio, Texas, Firstmark currently has nearly 100,000 members and over $1 billion in assets. The credit union offers a full suite of financial products and services to help members achieve financial wellness. With an extreme focus on the member experience, Firstmark is committed to providing solutions that are smart, simple and secure.

“In a year of crisis, consumers used online channels in record numbers, resulting in an era of digital transformation across all industries,” said Nathanael Tarwasokono, president and CEO of Firstmark. “To quickly position our credit union for this pronounced shift, we accelerated previous plans to enhance our digital channels, and we believe Lumin Digital will be the right partner to provide scalable technology, seamless integration and a customized member experience.”

According to Aaron Bedingfield, vice president, Information Technology for Firstmark, one of the most exciting things about the partnership is Lumin Digital’s ability to assess, develop and implement at near lightning speed. The traditional roadblocks to releasing new enhancements or correcting issues have been removed, paving the way for the credit union to provide “white glove service” to members throughout the digital experience.

Continue reading PSCU’s Lumin Digital to Provide Digital Banking Services for Firstmark Credit Union