Blockchain, Deposit Participations, And Succession Planning

Five can’t-miss data points this week on CreditUnions.com.

 
 

This week, CreditUnions.com looks at the basics of blockchain, profiles two Texas credit unions running a deposit participation program, shows why when it comes to succession planning the best defense is a good offense, and more.

Here are five can't miss data points:

3

CreditUnions.com's "Trends In Technology" series highlights emerging trends via visual, easily digestible overviews that cooperative teams can use to kick-start strategic discussions. In Part I, we discuss blockchain — and the three questions credit unions must ask before implementing it into their daily operations.

Read more in "Trends In Technology (Part 1)."

 

 

$26 Million

Two Texas credit unions are $26 million and 600 members into a product partnership that combines a central cooperative principle with a critical business need. The product, a bundle of share certificates, allows University Federal Credit Union to offer favorable savings rates to members and supplies Credit Human Federal Credit Union with new cash for lending.

Learn more about the arrangement in "The Texas Two-Step Deposit Strategy."

534

In 2012, 534 credit unions changed their CEOs — that’s slightly less than 10% of the industry. Although changes at the helm come under different circumstances, every institution has one of two goals in bringing in a new CEO: to stay the course or to change it.

To learn more about how these credit unions fared pre- and post-change, as well as other best practices from outgoing and incoming CEOs, read "The Best Defense Is A Good Succession Plan."

1.2%

When it merged the TCCUSF into the National Credit Union Share Insurance Fund (NCUSIF) last fall, one rationale for the NCUA board's decision to keep most of the TCCUSF's surplus for agency use was that the NCUSIF's model was failing.

Board chair Mark McWatters stated he first sought a way to "borrow" from the TCCUSF surplus to fund the National Credit Union Share Insurance Fund. In the NCUA’s July 20, 2017 board presentation, the staff’s “base” economic projections showed the fund’s Normal Operating Level (NOL) would decline below 1.2% at some future point, requiring a premium. But the more one looks, the less that is there.

Learn more in "Save The NCUSIF Model From The NCUA."

2011

There’s ample evidence that more and more people, especially the younger sets, care that their financial institutions are a fair-dealing, generous, and active member of their communities. They’re coming of age in a commoditized financial services market where perception matters. They consider more than just their own bottom line — they have plenty jobs to be done — and they want their financial institution to do the same.

Learn why perception is a powerful reality in a world of commoditized financial service offerings in "Asking 'Why' Is The Beginning Of Sustainable Growth."

Happy Reading!