Pennsylvania Credit Union Association
Life Is A Highway...July 28, 2010
NCUA Creates Office Of Chief Economist
NCUA announced Tuesday that it has selected John D. Worth as Director, Office of the Chief Economist effective July 26, 2010.
As NCUA’s Chief Economist, Worth will oversee an office responsible for monitoring international, national, and regional economic and financial market developments and trends. The Chief Economist will also participate in policy program development.
Worth joins NCUA after most recently serving as Manager for Policy Research at the Federal Housing Finance Agency (FHFA). At FHFA he helped lead FHFA’s review and analysis of regulatory reform initiatives. Prior to joining FHFA, Worth served at the U.S. Department of Treasury for nearly 10 years.
Make A Lasting Impression In 2011
Custom 2011 Pennsylvania Calendars are available at a fraction of the cost, but you must order by September 30.
The Association and CUNA Strategic Services are offering custom-designed 2011 calendars to all credit unions, regardless of the quantity you order, for only $1.55 per unit. This savings adds up to a 55% discount!
This calendar was created especially for members of the Pennsylvania Credit Union Association. Beautiful images of Pennsylvania are combined with monthly information to educate your members.
We need to work together to get this incredible deal. A minimum of 10,000 units are needed by September 30, 2010. Act now and everyone saves! Make an impression on existing or potential members 12 months a year with your customized calendar.
Click here for details.
Mobile Phones Used More For Online Banking
Results of a survey on consumer use of Internet-capable mobile phones to access online banking and bill paying showed an increase over the previous 12 months ending in March 2010.
Consistent with a key finding from the 2009 research, the 2010 study revealed that while overall mobile bill-pay adoption is increasing, there is room for financial institutions to drive market growth. Of the 205 consumers who reported using their mobile devices to pay bills online within the past 30 days, 62% stated they went directly to billers’ websites most often, while 38% reported that they went to their financial institution’s website most often.
The results of the survey were initially announced in April. The full study, jointly sponsored by FIS, NACHA, and eCom Advisors, is now available. Here are a few highlights of the NACHA Mobile Research Presentation:
- Only 60% of active mobile banking users are satisfied with the experience.
- Most use the mobile browser to access online banking, but satisfaction with that method lags.
- 86% of active mobile banking users are smartphone owners.
- 88% of active mobile banking users are Gen Y and X.
- 35% would rather access accounts online with computer.
- 51% receive low balance alerts on their mobile phone; 47% get available balance alerts; 34% get insufficient funds alerts; and 33% receive alerts for direct deposit posted and transactions (debit, ATM, etc.).
- 39% don’t see any value in receiving alerts.
- 20% of those with Internet access from phones use it to pay bills.
- 49% prefer to go directly to each biller’s website to pay bills.
Census Telephone Assistance To Close July 30
The U.S. Census Bureau announced that on Friday, July 30, it will shut down its toll-free telephone assistance line. More than 130,000 interviews have been completed via the toll-free line. Friday is the last day for callers who feel they may have been overlooked in the census to complete their 2010 questionnaire quickly over the phone.
For more than three months, individuals who believed they weren’t included in the census were invited to call the toll-free assistance lines (open 8:00 a.m. to 9:00 p.m. and available in English, Spanish, Chinese, Korean, Vietnamese, and Russian) to provide their information.
July 30 is the last day to take an interview over the toll-free line to allow enough time for Census Bureau professionals to process the data and ensure that residents are counted in the right place and prepare the state population counts by the statutory deadline of December 31, 2010.
Newsmakers
Choice One Community FCU, Wilkes-Barre, held its 35th Annual Golf Outing on Saturday, June 26. Some 136 golfers enjoyed a happy hour on Friday night prior to the tournament and had a beautiful day of golf on Saturday at the Wilkes-Barre Golf Club in Bear Creek. The charity event raised $6,000 for the local Food Bank and the St. Nicholas Scholarship Fund, in memory of John P. Kebles Jr.
Pittsburgh FCU has been recognized as a Go Direct Community Ambassador. The Certificate of Recognition acknowledges the credit union for promoting the benefits of direct deposit to its members and the community.
West Branch Valley FCU has converted its charter status from a multiple-employer group charter to a community charter. Anyone who lives, works, regularly conducts business, worships, volunteers, attends school in, as well as businesses and other legal entities located in Lycoming County, are eligible to join West Branch Valley FCU. President/CEO Bob Horner said, “This strategic decision became more critical with the current political and regulatory actions affecting the overall financial services industry and it gives our credit union the ability to participate in the anticipated growth in Lycoming County.” The credit union was organized in 1952 by the employees of Lycoming Engines, a division of Avco Corporation, now operating as Textron Lycoming. In 1995, it changed its name to be more representative of its membership area as more employer groups were added.
National News
CUNA analyzes interchange rule's impact
WASHINGTON (7/28/10)--The Credit Union National Association (CUNA) has said that while credit unions with under $10 billion in assets are exempt from interchange regulations the Federal Reserve Board is writing, CUNA is particularly concerned that the law does not require the marketplace to accommodate higher fees for smaller issuers.
CUNA has prepared a detailed review of the new interchange statutory provisions. The review focuses on provisions of the law as well as on concerns regarding the law and its implementation.
The new interchange regulations, which are still in development will be the result of legislation that was added to recently enacted comprehensive financial regulatory reforms. The interchange law directs the Federal Reserve Board to write rules on interchange fees for debit card purchases, a move which CUNA and credit unions strongly opposed as the legislation was considered by the U.S. Congress.
Though the new interchange law amends the existing Electronic Fund Transfer (EFT) Act by adding a new section, the interchange regulations will be implemented by the Federal Reserve, not the new Consumer Financial Protection Bureau, which will implement other laws, including other provisions of the EFT Act.
The Fed will be required to consult with the National Credit Union Administration and other financial regulators, including the new Consumer Financial Protection Bureau, as it crafts the interchange regulations.
According to CUNA's analysis, it is unclear whether the Fed's rule will set the actual interchange rates or set standards for determining whether interchange fees are "reasonable and proportional" to an issuer's costs. There has been no definitive statement from any federal authorities on how interchange rates will be regulated.
While CUNA is advocating two-tiered interchange fee system to accommodate credit unions, pressure from merchants to contain interchange fees will continue. It is also unclear to what extent and for how long networks will accommodate a two-tiered system, CUNA added.
Even so, CUNA will be pursuing as favorable an outcome as possible from the Fed, with the assistance of CUNA's Interchange Working Group. As reported earlier in NewsNow, CUNA President/ CEO Bill Cheney met last week with House Financial Services Chairman Barney Frank (D-Mass.), who assured CUNA he would work with credit unions to head off unintended consequences of interchange regulation.
The CUNA analysis also addresses certain prohibitions on exclusive arrangements, routing limits, and network fee regulations.
The potential for merchants to provide certain discounts and to set transaction minimums for credit card purchases, as well as issues concerning merchant acceptance of debit and credit cards, are also covered in the CUNA analysis. For more information about the analysis, contact Eric Richard at erichard@cuna.com or Mary Dunn at mdunn@cuna.com.
CUNA interchange analysis
MBLs are no-cost help to small biz, Cheney tells Senate
WASHINGTON (7/28/10)--In a Tuesday letter to Senate leader Harry Reid (D-Nev.), Credit Union National Association (CUNA) President/CEO Bill Cheney said that credit unions would be forced to oppose pending job-creation legislation if that legislation does not include greater authority for credit unions to make loans to businesses.
Cheney said that the U.S. Congress "will have left unused critical resources that credit unions could provide small businesses at no cost to the taxpayers" if member business lending (MBL) language is not added to H.R. 5297, the Small Business Lending Fund Act.
Cheney noted that there is "no good public policy" reason to justify leaving credit unions out of the bill. The MBL amendment proposed by Sen. Mark Udall (D-Colo.) would lift the current cap of 12.25% to 27.5% of total assets. "Credit unions have proven for years that they are capable of doing this type of lending safely and soundly," Cheney said.
CUNA has estimated that lifting the cap even to 25% of assets would inject about $10 billion in new funds into the economy and create more than 100,000 new jobs, at no cost to taxpayers.
There has been significant support for lifting the MBL cap in the media. And the Obama administration backs the increase, with the U.S. Treasury offering its own plans for an MBL cap lift in recent weeks, which was the basis for much of the Udall amendment.
The small business jobs bill may come up this week for a vote, though it is not known whether leading senators can gather the votes needed to end debate on the measure and call for a final vote. CUNA and Udall will continue to work to attach the MBL provisions as an amendment to the small business legislation if it remains a viable option.
CUNA letter to Senate
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