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The President's Perspective with Jeff Olson
Story ID:8424  
Date Posted:  June 19, 2017

 
by Jeff Olson, President/CEO CUAD
 
Greetings and Happy Monday!
 
Looking for some New Ideas?
 
Wow, we’re already half-way through the month of June! Time certainly does fly by when you’re having fun and busy. Speaking of fun, that’s a perfect segue into promoting the CUAD New Ideas Conference, which will be October 2-4, in Sioux Falls, SD at the Prairie Berry East Bank Winery in the historic downtown area.
 
The Prairie Berry brand is a South Dakota staple, having originated in Mobridge, SD, by the Vojta Family. Today, the business has expanded, and is headquartered in the heart of the Black Hills at Hill City, SD, not far from Mount Rushmore. The family opened the Prairie Berry East Bank in downtown Sioux Falls in 2014. They also own the Miner Brewing company. So, combine the awesome venue of the Prairie Berry East Bank with the charm of downtown Sioux Falls, and mix in two-and-a-half days of “FinTech” dialogue and networking, and you have a winning recipe for a great credit union educational and professional development event sponsored by the Credit Union Association of the Dakotas.
 
Many folks will ask, “Why a New Ideas Conference?” That’s a good question. The CUAD New Ideas Conference has evolved over the years and is today structured around education and awareness on the use of new technology and innovation in the financial service industry. That includes sharing information on the advances in financial service technology and on the latest disrupters in member service innovation. “FinTech” is a relatively new industry buzz word that describes any technological innovation in the financial sector which include innovations in the areas of financial literacy and education, retail banking, investment services, and even crypto-currencies like bitcoin, or in our instance – CU Ledger.

I realize that “keeping up with the Jones” or the giants in the financial world is cost prohibitive for many of our credit unions, but we need to “keep our eye on the ball” when it comes to new technologies in our service sector. For example, things such as predictive behavioral analytics and data-driven marketing will help credit unions take the guess work out of financial decisions. Trends toward mobile banking, increased information, data and more accurate analytics and decentralization of access for members will create opportunities for credit unions. 

This year’s New Ideas Conference will address each one of these areas and more. I sincerely hope you will make plans to join us in Sioux Falls, October 2-4. Registration will be launching soon, and we will be highlighting keynote presenters and their topics in the Memo over the next several weeks.

CUNA Thanks Dakota Senators Rounds, Hoeven and Heitkamp.
 
As you know, the Consumer Financial Protection Bureau (CFPB) recently finalized amendments to Regulation C that significantly increase the amount data mortgage lenders, including credit unions, will have to provide. The Bureau will require credit unions that have originated 25 or more closed-end mortgage loans or 100 open-end mortgage loans in the prior year to report dozens of data points in addition to what is required under the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act. Further, the Bureau has required mandatory reporting requirements for home equity lines of credit where they have been historically voluntary.
 
These requirements impose significant burdens on credit unions beyond what Congress envisioned when enacting the Dodd-Frank Act. Credit unions will undertake significant expense to bring their systems into compliance with a rule that does very little – if anything – to provide credit union members with meaningful additional protection. This proposal will undoubtedly add to the compliance costs credit unions must pay – a cost that was $7.2 billion in 2014 – and will lead to mortgage credit and other credit union services being that much more expensive and possibly less available.
 
As we reported in the Memo last week, a group of U.S. Senators, led by Senator Rounds (SD), Senator Heitkamp (ND), and Senator Hoeven (ND), co-sponsored legislation that would raise the threshold that triggers reporting requirements to 500 closed-end and 500 open-end mortgages. This would provide much needed relief, particularly to smaller credit unions. We strongly support the legislation and appreciate their leadership on this important issue. Please be sure to reach out and thank them via email, phone call, or personally if you see them at a town hall meeting or public event when they are back in district over the Fourth of July Recess. CUNA has already sent a letter to thank them, and you can see the letter here.
 
Have a great week!
Jeff