Risk And Compliance Tools, New Credit Reporting Standards, And Next-Gen Branching

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

This week, CreditUnions.com takes a look at analytics and technology in risk and compliance, new credit reporting standards, next-gen branch designs, and more.

Here are five data points you need to know:


Credit unions that use consumer auto-decisioning experience a 0.48% delinquency rate, according to a Callahan & Associates study of 333 credit unions. That’s compared to the 0.62% delinquency rate for those that don’t.

Learn more about how analytics and technology are supporting a new wave of automated compliance and risk decisioning in Analytics And Technology In The Credit Union Risk And Compliance Ecosystem.


Credit union lenders have another wrinkle to iron out come July 1: the elimination of a large chunk of tax liens and civil judgments from the reports produced by the three major consumer reporting agencies Experian, Equifax, and TransUnion.

The change in credit reporting standards is part of an initiative launched by the reporting agencies in 2015 to improve credit report accuracy and make it easier to correct errors.

Opinions vary, but LexisNexis Risk Solutions, which sells a report that will continue to list the affected judgements and liens, cites FICO data in saying the scores of 11 million consumers will increase up to 20 points and the scores of 700,000 morewill increase at least 40 points.

Learn more in Negative Histories May Not Apply.


The role of the board at a credit union is typically high-level in nature, with board members concerned about strategy and overall policy decisions rather than the day-to-day operations of the cooperative.

Ida Bowen had been a member of Deepwater Industries Credit Union’sboard for three years before she became CEO. It was her combination of skills which includes Six Sigma process improvement techniques, HR management, and leadership developmenttraining that made her a perfect fit for the role. And for Bowen, becoming the CEO was an opportunity to put into action advice she’d been giving executives for years.

Learn more in Ida Bowen On Leadership.


At first quarter 2017, Dupaco Community Credit Union’s 12-month member growth of 8.05% outpaced the performance of its both asset- and state-based peer credit unions.

But branch transactions per household were declining in line with the national average. So when, in 2015, the credit union was opening its new branch, it opted not to focus on the transactional side of things. Instead, it opened a branch designed to solveits member’s personal financial challenges.

Learn more abou the credit union’s concept in It’s Not A Branch, It’s A Learning Lab.


Since the first quarter of 2009, credit unions have more than doubled the dividend rate offered by banks. According to available first quarter peformance data, Callahan & Associates predicts the credit union dividend rate will be 9.36%, right on par withthe credit union dividend yield of the past few years. The average dividend in 49 states for credit unions is higher than the national bank average of 3.9%.

However, strategies to reward loyal patrons differ among financial institutions as well as from region to region. Learn more in A Country Divided?

Happy Reading!

May 30, 2017

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