The Federal Credit Union March-April 2014 - (Page 4)

FROM THE CHAIR The Challenges of Being a Credit Union CEO By Mike Parsons I f you're a credit union CEO, you don't need to be reminded of the importance of excellent member service, retaining a good staff and staying on top of technology and security. They are all intertwined. Linda Sweet, president and CEO of Big Valley Federal Credit Union, said her credit union has had to outsource many of its mortgages because it can't afford a loan officer plus added compliance costs under new mortgage rules. Even if you are doing all of the above, you have so much more to consider to ensure your credit union's success; the challenges you face are numerous. Here's a look at how some credit unions are addressing them: Building Membership Regulatory Burden Costs Last year, Hawaii State Federal Credit Union was authorized by NCUA to add new businesses and groups to its FOM - previously limited to state, city and county employees. Andrew Rosen, the credit union's president, told the Hawaii Reporter, "We take pride in being a trusted financial partner for members throughout their life events. This charter expansion offers us the opportunity to provide practical financial solutions to even more people in the state." Since the Dodd-Frank Act, about 825 federally insured credit unions have closed. In a NAFCU research survey of its members, 92.9 percent of respondents said they have seen regulatory burden grow since 2010, and 88.1 percent have seen their compliance costs increase. This challenge affects all of us. In a December hearing before Congress, While serving a defined field of membership can allow a credit union to be better in tune with its members' needs, some credit unions have benefited from field of membership (FOM) expansion. Your staff is the face of your credit union. How they are trained, and how they are treated, will quickly be revealed to your members at every interaction. Desert Schools Federal Credit Union in Phoenix is committed to its employees and knows the value of a cohesive work environment. The credit union measures employee satisfaction and keeps response times brief when employee issues or concerns arise. It is also deeply committed to its employees' education and growth. It offers tuition reimbursement and online tutorials and classes, and it pays for training sessions. Seeking out a partnership can be overwhelming, but some credit unions find that joining forces allows them to run more effectively and economically. Shared branching is a case in point. Infinity Federal Credit Union in Portland, Maine, has joined with other Maine credit unions to provide greater convenience and service to its members. By partnering with other credit unions, Infinity FCU's members can conduct personal transactions in other partnering branches, just as they can at their own branch. Some of the above examples may resonate with your credit union, and if you're attending NAFCU's CEOs and Senior Executives Conference this April in Charleston, S.C., you'll get a chance to discuss them with your peers. Young adults, from 18 to 34 years old, have a penchant for online products 4 Navy Federal Credit Union is a leader in this arena. The credit union has had great success with promotional campaigns for members on Facebook, using a Facebook app that allows members to upload personal videos or photos of their cars and pets to YouTube along with their financial stories. You may want to consider creating a presence on Facebook, Twitter, YouTube, Instagram and LinkedIn for your credit union. Training and Retaining Good Employees Partnering With Others Attracting Young Adults and social media. Some credit unions have drawn this group's attention by establishing their own online presence. Whether you attend or not, know that whatever challenges you're facing now as a CEO, you are not alone. THE FEDERAL CREDIT UNION MARCH-APRIL 2014

Table of Contents for the Digital Edition of The Federal Credit Union March-April 2014

Voices & Opinions
From the Chair
Inside NAFCU
Succession Success
100 Ways to Grow
Marketing Winners
Getting to Know...
Managment Insight
Compliance Central
Inside NAFCU Services
From the President's Desk

The Federal Credit Union March-April 2014