The Current Topics & Library channel contains technical knowledge that will enhance the abilities of directors to serve and make strategic contributions to their credit unions. Topics in this channel include cybersecurity, risk management, cannabis banking, and mergers.
TECH SAVVY: CYBERSECURITY
Cybersecurity is a critical concern of credit unions and financial institutions around the world. Protecting the credit union and its members from cyber attacks requires investments in technology, preventative testing, and skilled experts. Directors play a critical role in ensuring that the credit union is prepared by staying informed about threats and working with management to provide the resources necessary to prepare the credit union’s defenses and plans for responding to attacks.
- Cybersecurity Resource Center: GoWest’s online resource page designed to help credit unions identify all of the resources available to assist with cybersecurity protection, detection, and response. It includes resources for regulatory guidance, federal reporting tools, best practices, and service providers.
- Security & Fraud Webinars: These webinars, provided in partnership with Credit Union Webinar Network, focus specifically on security and fraud, including mobile device risks, hot issues in cyber compliance, card data security, and mitigating a data breach.
RISK MANAGEMENT
Risk management is often seen as a process to eliminate as much risk as possible from a credit union; however, it is much more than that. Instead, risk management is an opportunity for a credit union to identify individual risks, understand how risk flows across the organization, and determine how much risk the credit union is willing to take to create value. In this way, risk management seeks to preserve AND create value.
- Enterprise Risk Management – Supervisory Letter( NCUA)
- Importance of Risk Management for Credit Unions (Board Effect)
- Enterprise Risk Management How Does ERM Apply to your Credit Union? – Presentation (Moss-Adams LLP)
CURRENT TOPICS AND LIBRARY
Credit union directors always encounter new challenges, responsibilities, and strategic shifts. New technologies develop to reach members in faster and more meaningful ways, new cybersecurity threats to credit union operations emerge, and new opportunities to serve their communities arise. As a result, there is a constant need for continuing education.
Cannabis Banking
Cannabis is a $8.3 billion industry forced to operate almost entirely in cash, with very little access to financial services. Credit unions that provide cannabis banking use rigorous screening and compliance protocols to appropriately monitor and maintain high-risk accounts, but they still face significant legal risks.
- “Partner Colorado CU Launches Cannabis Banking CUSO” (CU Times)
- Navigating Safe Harbor: Cannabis Banking in a Time of Uncertainty (Sundie Seefried)
- BSA Expectations Regarding Marijuana-Related Business (FinCEN)
- FinCEN Guidance on Banking Marijuana – Increased Legal Risk to Banks (Dorsey & Whitney LLP)
CDFI
Community development financial institutions (CDFIs) are private financial institutions that are 100% dedicated to delivering responsible, affordable lending to help low-income, low-wealth, and other disadvantaged people and communities join the economic mainstream. A certified CDFI, now over 950 nationwide, is a specialized financial institution that works in market niches that are underserved by traditional financial institutions.
CDRLF
The purpose of the Community Development Revolving Loan Fund (CDRLF) program is to assist low-income designated credit unions in providing basic financial services to their members to stimulate economic activities in their communities. Through the CDRLF program, the NCUA provides financial support in the form of technical assistance grants to low-income credit unions serving predominantly low-income members.
CECL
CECL, or Current Expected Credit Loss, is a new required accounting standard that will change how financial institutions account for expected credit losses. The current deadline for all credit unions to complete their migration to the new system is December 15, 2020.
- Frequently Asked Questions on the New Accounting Standard on Financial Instruments Credit Losses (NCUA)
Commercial Lending
Lending is the bread and butter of credit unions, but commercial loans, primarily in the form of small business loans, need down payment requirements and interest rates that are competitive. All of this can and does have a significant effect on operations and financial health.
- Credit Union Business Lending in 2018 (creditunions.com)
Credit Union Purchase of Banks
When bank boards determine that it is no longer sustainable for their financial institution to remain in a community, they seek buyers, and some credit unions are finding this option to be a win for both bank customers, and the credit union’s existing members. If this is an option being considered by your credit union, we offer the following resources:
- Credit Unions’ Acquisition of Banks and Thrifts (Filene)
- Credit Union Acquisitions of Banks – graphic (CU Times)
- Three Stories of Bank Acquisition (creditunions.com)
FinTech
Financial Technology, nowadays better known under the term ‘fintech’, describes a business that aims at providing financial services by making use of software and modern technology. These businesses can either help support or be in direct competition with credit unions, with the ability to cause major disruption in many cases.
Mergers
For credit unions that determine that merger is viable, we offer the following resources:
- General Merger Frequently Asked Questions (NCUA)
- Credit Union Merger Manual (Washington Dept. of Finance)
- A Merger Trend Is Underway (CU Insight)
PARTNERS WHO CAN HELP
Serving as a collaborative hub, GoWest Solutions harnesses the power of cooperative intelligence to connect NWCUA member credit unions with leading business partners in the industry. These world-class partners provide innovative solutions designed to help credit unions save money, stay up to date with emerging trends, deliver cutting-edge technology, and ultimately, better serve their diverse memberships.
ABRIGO: A leading technology provider of compliance, credit risk, lending, and asset/liability management solutions that financial institutions use to manage risk and drive growth. Our software automates key processes – from anti-money laundering to asset/liability management to fraud detection to lending solutions – empowering our customers by addressing their Enterprise Risk Management needs
THINK|STACK: A managed IT services company specializing in cloud and cybersecurity with human-centered design. Through education and co-management,
they design, build, secure, automate, and optimize technology environments. As technology and cybersecurity continue to evolve, so does the demand for outsourced IT service partners. Organizations require trusted partners with industry expertise who understand their needs and empower ongoing innovation. Think|Stack was founded to service that demand by delivering a unique combination of cloud, cybersecurity, and networking.
IP SERVICES: IP Services has been in business for 20+ years delivering managed services to banks and credit unions ranging from small community institutions to $1.9T in asset size. IP Services prides itself on its people’s expertise and experience, its well-defined integrated IT processes and controls, and its ability to use technology to help its clients enjoy the benefits of a reliable and predictable managed IT services without the associated headaches and costs.
