REAL Solutions - Home

Executive Monograph - Invest in the Future

2009-11-03T10:00:00Z

The CEO of Martin Federal Credit Union discusses his strategy for growth in a down economy: invest in the future.

Martin Federal Credit Union has responded to the current economic situation in several ways. We have cut expenses in operations and staff, increased our marketing in loans, cut dividends to slow deposit growth, added electronic services and moved forward to complete a new service center.

The economic crisis hit when we were in the middle of a data processing conversion. Commitments were made, contracts were signed, staff was in place, so there was no turning back. The process put an extraordinary strain on everything from our bottom line to our board’s resolve. But, in the end it was the right thing to do…invest in our future.

Commitment to a Physical Presence

Our second biggest commitment was to complete the new branch, even though the expense put even more pressure on our bottom line. Our thinking was that we will come out of this recession and Martin needs to be in a position to serve our existing and new members without playing catch-up. The new branch makes a statement to our strength and commitment to expand our brand in Orange County. It will formally open in early November.

Enhanced Electronic Services

Our second big enhancement during this period was to implement a series of electronic services that includes mobile banking and personal and small business checking analytical tools. These services have allowed us to grow into the Gen X and Gen Y demographics by investing in technology proven to attract and retain this group. We have had remarkable success with little advertising early on and with our July newsletter featuring these services, we have seen spikes in the number of members signing up for the products and increased transaction volume.

Community Outreach & Targeted Marketing

Although the marketing budget was not increased, we have redirected where the marketing dollars are spent. Martin is experiencing a significant drop in loan volume, especially new and used cars. We have committed to continue community outreach programs and marketing, but have reduced generic brand marketing in favor of focusing on creating loan demand in our historically strong areas.

These are the actions Martin has taken to get us through this uncertain period. Has it all paid off? Talk to me in a year. But, we feel it all had to be done in insure that Martin is a player in the Central Florida market when the dust settles.

Bob Beskovoyne is the president/CEO of Martin Federal Credit Union since 1992, a credit union with $120M in assets that has added several technological advances and e-services. Martin has received a community charter and has service centers throughout Orange County.

Bob is a Pennsylvania native and a Penn State graduate who started his credit union career in 1976 at HUD Federal Credit Union in Washington, D.C. Before becoming president/CEO of Martin FCU he worked for two other credit unions, including five years as president of Central Florida HealthCare FCU in Orlando. He has also worked for two credit unions associations; the Pennsylvania and the Florida Credit Union Leagues.

Bob served on the board of the Florida Credit Union League and was its chairman from 1999 to 2001.

Foreclosures hit close to home

2009-10-22T04:00:00Z

Earlier this week, I was struck by this article from the New York Times:

Foreclosures Force Ex-Homeowners to Turn to Shelters

The first night after she surrendered her house to foreclosure, Sheri West endured the darkness in her Hyundai sedan. She parked in her old driveway, with her flower-print dresses and hats piled in boxes on the back seat, and three cherished houseplants on the floor. She used her backyard as a restroom.
...
Growing numbers of Americans who have lost houses to foreclosure are landing in homeless shelters, according to social service groups and a recent report by a coalition of housing advocates.

Foreclosure is something that I see every day – it is right in front of me. The house down the street and around the corner are in foreclosure. I live in a nice neighborhood in Orlando, Florida. Our subdivision boasts about 4,000 homes – all built in the last fifteen years – about half of them were built in the last five years.

Last month in our monthly neighborhood newsletter we learned that about 10% of these home are in foreclosure with more coming on the market every day. I think this can be attributed to fancy mortgages which put people in homes they could not afford. These fancy mortgages called ninjas – no income, no job and no assets included zero down payments and interest only loans. Appraisals oddly always matched the cost the builder was trying to sell the home for. As soon as the loans began to re-price families could no longer honor their obligations. Many waited for the notice from the bank – others have just left.

I feel for the families that have lost their homes due to exploding interest rates. Many of them did not see it coming while others knew it was just a matter of time. I grieve for a grandmother who is suddenly living in the streets because she lost her home. But I want to explain that this serious foreclosure situation has affected EVERY family in my neighborhood – not only those in foreclosure. Our homes have dramatically decreased in value – as much 35% – sometimes even more. The down payments we made and equity we expected has disappeared as foreclosure homes are selling for far less than they cost to build.

I sympathize with each family that has lost their home. But my experience has lead me to believe that the mortgage mess goes far beyond those families losing their homes. Every single family in Florida will be affected in some way by this mortgage meltdown. The one bright side for me – I don’t need to sell right now – I can wait it out. I did not expect my equity to fund my children’s education or my retirement as many of my neighbors did. But what about those that did have these expectations. Good hard working people who believed their home was an asset that would increase in value over time. I know of many Florida credit unions working hard to help their members through these rough times.

Have you or your family been affected by the current economy?

Has your credit union been able to help?

Credit unions, this is why we need you.

Biz Kid$ Goes to the Library

2009-10-20T04:00:00Z

I began International Credit Union Week by giving a one-hour Biz Kid$ presentation at our local library. Since this was the introductory session, we selected episode 101 “What is a Biz Kid?” The library wisely scheduled the event on a day off from school (Columbus Day) and did a great job promoting the event in their publications and in the local newspaper. There were 33 kids registered and 30 showed up, including 2 Girl Scout Troops.

What is Entrepreneurship?

The program itself was very simple. I opened the session by asking if anyone knew what the word entrepreneur meant. Much to my delight, lots of hands went up. The kids gave their definition of the word (which was correct), then I asked for examples of entrepreneurs. They named both local businesses and nationally known celebrities like Bill Gates. We talked about the choices we have in the U.S. where we can go to work for an existing company or we can start our own, like entrepreneurs.

Next, we watched parts of the episode featuring the Biz Kids profiles. Since we only had one hour, I chose to watch segments of the show (about 15 minutes) rather than the entire episode. At the end of the episode, I explained the difference between regular entrepreneurs who start companies to make money and social entrepreneurs who raise money for charitable causes.

The Biz Brainstorm

After the video, I divided the kids into 6 groups so they could participate in an activity. They practiced some Biz Kid$ skills by working together and brainstorming ideas for some businesses. Each group had to select a recorder who wrote down the ideas and a reporter who shared the ideas out loud with everyone. It took the kids a few minutes to get going in their groups, but once they started talking, the room filled with excited noise. They had about 10 minutes for the activity; I announced “5 minutes left” and “1 minute left” to help keep them on track. Each group shared the ideas they generated. From pet sitting to aviation schools to theme parks to cheese farms, they created lots of interesting business ideas.

Since we had a few minutes remaining in the hour and some of the ideas were unusual, I told the group that one of the great things about being an entrepreneur is taking an idea that seems crazy or impossible and making it happen. I asked the kids to name some things that did not exist a few years ago that we have today, like cell phones with built-in cameras and apps for cell phones. It was amazing to watch the kids get excited as they thought of new things that didn’t exist when they were younger.

In retrospect, the only things I would change about the presentation are having the kids introduce themselves to each other when they first break into the smaller groups and to have something, either a giveaway or handout, that has the Biz Kid$ website address on it so they can take it with them.

Ripe for partnerships

Libraries are great partners because they already have experience working with kids and they are looking for ways to bring kids into the branches

A heart for change

It was easier for the kids to think of community service projects and fundraisers than ideas for new businesses. I was impressed by their generosity and thoughtfulness.

Melanie Murphy is the manager of member services for the Illinois Credit Union League (ICUL). Her primary responsibility is to raise funds,and distribute grants and scholarships for the Illinois Credit Union Foundation. She also works with the Illinois Youth Involvement Council to promote financial education, especially for young people. Melanie coordinates REAL Solutions in Illinois to help credit unions serve the low-wealth community.

Steve Bosack Joins Chairman Matz as Chief of Staff

2009-10-16T04:00:00Z

NCUA Media Release: Steve Bosack Joins NCUA as Chief of Staff

REAL Solutions League Highlights: VITA Programs - The Montana Story

2009-10-14T04:00:00Z

To bring information to leagues and credit unions in the timeliest fashion, NCUF hosts an online impact center at http://realsolutions.coop, full of REAL Solutions® product innovations, case studies, and tested business models. Some of our state leagues/associations also feature Web sites to give their participating credit unions access to the most up-to-date state-specific information.

This article is the fourth installment in a monthly series of interviews designed to provide REAL Solutions® League Liaisons and other league staff up-to-date strategies used by their peers to grow their REAL Solutions® efforts. This interview describes the efforts of the Montana Credit Unions for Community Development (MCUCD) and REAL Solutions credit unions to develop a Volunteer Income Tax Assistance (VITA) program for Montana consumers. Please learn more from this interview with Jeanne Saarinen, MCUCD Executive Director, and Robert Coble, MCUCD VITA Program Manager.

Executive Monograph - Invest in Youth & Young Adult Members

2009-10-12T04:00:00Z

California has been hard hit by the current economic downturn. Credit unions and their members have been impacted. USA Federal Credit Union’s President and CEO Mary Cunningham used the recession as a learning experience for herself and team by learning through adversity. USAFCU has taken a proactive approach to protect institutional reserves but also expand and grow. With an average member age of 53, the credit union leadership recognized that, like many credit unions, they were not attracting younger members. Join us to hear from Mary how her credit union has aggressively pursued member growth by attracting and serving younger members.

Click the play button to listen to this informative podcast. It may take a minute or two to load before playing. <center><object height="60" width="325"> <param /> <param /> </object><center>

We welcome your comments, too.

Wondering what CU Tomorrow is all about?

2009-10-02T04:00:00Z

If you happened to miss the first webinar for CU Tomorrow, all is not lost. The National Credit Union Foundation caught up with Ben Rogers, Filene Research Institute’s, former driver of the 30 Under 30 Group to share what CU Tomorrow is all about; why should credit unions reach out to young adults and provide insight into solutions for attracting youth and young adults, as well as younger professionals and volunteers.

Click the play button to listen to this intriguing podcast. It may take a minute or two to load before playing. <center><object height="60" width="325"> <param /> <param /> </object></center>
You can follow along with the podcast using these Handouts:
<center>
ss_2106573”>CU Tomorrow Young Adult IQ<object height="510" width="477"><param /><param /><param /><embed src="http://static.slidesharecdn.com/swf/ssplayerd.swf?doc=cutomorrowyoungadultiq-091001152958-phpapp02&stripped_title=cu-tomorrow-young-adult-iq" height="510" width="477"></embed></object>
View more documents from realsolutions.
<center>

Upcoming Young Adult Webinar: Social Media and What’s Next in Online Delivery – January 14, 2010

2009-09-29T04:00:00Z

What: Improving delivery channels already used by participating credit unions and the importance of social media.

How: To participate in the Webinar, download the materials from our website and dial into the conference call five minutes before 3:00 PM on each of the days.

Call instructions: Please dial 800.914.3397, Password 214915.

Why: This program is great for credit unions of all sizes and offers dozens of tactical tips for marketers, human resource managers, senior executives and credit union directors to build a credit union that has a lot more in common with today’s young adult.

Upcoming Young Adult Webinar: Solutions for Generation Debt – February 11, 2010

2009-09-29T04:00:00Z

What: Delve into the emerging needs of this generation.

How: To participate in the Webinar, download the materials from our website and dial into the conference call five minutes before 3:00 PM on each of the days.

Call instructions: Please dial 800.914.3397, Password 214915.

Why: This program is great for credit unions of all sizes and offers dozens of tactical tips for marketers, human resource managers, senior executives and credit union directors to build a credit union that has a lot more in common with today’s young adult.

Lights, Camera, Inspiration

2009-09-29T04:00:00Z
<center></center> As a credit union person who uses Biz Kid$ in the classroom, and one who watches it with the young people in my life on PBS, it was a thrill to be invited to tour the studio while visiting Seattle, WA.
When I walked through the nondescript doors and into the nerve center of one of my favorite programs, I felt like a kid in a candy store! The energy in the studio was electric. As the neon lights were lit up for our benefit – it was the people – not the props, nor the stage that sparkled! (Although I have to admit, sitting on the lighted stage was very cool!)

I was impressed to hear the student actors discussing a segment and “why it was important to teens,” not just how to act it out. I was amazed to find the people behind the scenes talking about “how the segment could be used by teachers,” not just how it would appear on the big screen. And, I was in awe of the technical team who talked of “how it could be used in a classroom setting,” in addition to airing on TV. They didn’t act stuffy like I expected an Emmy award winning team to act. Instead, they impressed me to be real people, focused on real financial issues that concern real teens.

Alas, the studio isn’t fancy, or even tidy for that matter. The work is hard and the pay is minimal. The “reward” (they told me) is when “real people (like me) tell them how Biz Kids is used in classrooms to teach teenagers to make and save money.” “After all,” one of the teen actors told me, “that is why we do what we do…to help kids.”

When I left the studio, with autographs in hand and a smile in my heart—I looked back at the dull gray walls and vowed that “I would tell all about this inspiring effort – and work to gain funding so that Biz Kids can continue teaching students and inspiring kids.”

Footnote: After returning home, I convinced my credit union to support Biz Kids locally on PBS, and I continue to educate teachers and the community about Biz Kids. Next month, I am making a presentation to the Mid Michigan Chapter of Credit Unions in hopes they will also support the program at both the local and national level. I encourage you to join me in viewing, using and supporting this impressive program.

Heather is proud to be “back at her first credit union” – Isabella Community CU – as the VP of Community Development where she started her credit union career as a co-op student at age 15 ½. As a self described, “Credit Union Enthusiast,” Heather is an experienced and energetic trainer, writer, speaker, youth advocate, executive and volunteer.

Heather recently celebrated 20 years as a certified CU Development Educator (DE) and 31 years in Michigan credit unions! She has enthusiastically lent her expertise and support to cooperatives around the globe.

Introducing: Biz Kid$ Braincandy

2009-09-21T04:00:00Z

334 PBS stations in all 50 states are broadcasting new episodes of the Emmy Award winning Biz Kid$ underwritten by America’s credit unions. Each episode of Biz Kid$ includes four stories from successful young entrepreneurs reinforcing the importance of saving, budgeting and giving back to their communities. Each episode comes with teaching materials, lesson plans and activities that meet national financial literacy standards. Credit union professionals and volunteers, as well as school teachers and after school programs are teaching the lessons from Biz Kids in Classrooms and community centers.

As an old NYIB classroom presenter, I appreciate the value of Biz Kid$. Over the years I have probably done a hundred classroom presentations – I most enjoyed working with junior high kids. Bribing them with candy, pizza and all kinds of stories seemed to work. I learned pretty quickly that learning happens when kids are having fun. But I think they left with valuable information too – Today those classroom presentations would be easier because the fun comes in the little green box of Biz Kids episodes.

Credit union folks across the country are hosting Biz Kid$ camps, after school programs and credit union contests. Well we wanted in on the fun. Starting this week, we’re kicking off a series dedicated to Biz Kid$ stories and braincandy from credit unions across the country. And we’re looking forward to seeing your own Biz Kid$ comments and stories along the way.

» All Biz Kid$ posts can be found in the category ‘Biz Kid$’

The Latest on our Upcoming Young Adult Webinars

2009-09-15T04:00:00Z

What do credit unions and young adults have in common?

Far too little, unfortunately, for comfort.

What: Starting this Thursday at 3:00 PM Eastern, REAL Solutions will present the latest research on young adults’ financial habits and needs. This Thursday’s meeting will introduce the CU Tomorrow project from the Filene Research Institute and offer an introduction to how credit unions can capitalize on the changing financial marketplace to reach out to young adults with products and services, not just financial education.

Who: The National Credit Union Foundation and the Filene Research Institute have partnered to bring this valuable resource to all REAL Solutions state leagues and credit unions. All REAL Solutions credit unions and leagues are invited to attend all the CU Tomorrow webinars at no cost.

When: Following Thursday’s introduction, REAL Solutions will sponsor an additional CU Tomorrow webinar each month, covering topics as varied as first credit cards, student loans, social media, and young adult transaction accounts, and more.

September 17, 2009 – Introducing CU Tomorrow

What is CU Tomorrow all about? Why should credit unions reach out to young adult members? Learn ways to reach this market.

October 15, 2009 – Goals, Tests and Focus Groups

Explore an interactive self assessment tool used by FRI available to webinar participants. Explore young adult focus groups.

*Handout for this session *To access the call, dial 1.800.914.3397 and enter participant access code 214915#.

November 19, 2009 – Transaction products and Loans

Focus on various transaction and loan products important to the young adult market.

December 10, 2009 – Recruiting and Retaining Young Leaders

Learn ways to attract talented young professionals and younger volunteers.

January 14, 2010 – Social Media and What’s Next in Online Delivery

Improving delivery channels already used by participating credit unions and the importance of social media.

February 11, 2010 – Solutions for Generation Debt

Delve into the emerging needs of this generation.

How: To participate in the Webinar, download the materials from our website and dial into the conference call five minutes before 3:00 PM on each of the days.

Call instructions: Please dial 800.914.3397, Password 214915.

Why: This program is great for credit unions of all sizes and offers dozens of tactical tips for marketers, human resource managers, senior executives and credit union directors to build a credit union that has a lot more in common with today’s young adult.

“Why Americans Hate Their Banks But Don’t Know Enough to Love Their Credit Unions”

2009-09-11T08:00:00Z

The following is a guest post from American Airlines CU’s Kumar Muthukumar:

Dave Lieber, the Watchdog Columnist for the Fort Worth Star Telegram was the guest speaker at our recent Fort Worth Chapter of Credit Unions monthly meeting. The title of his key note address was: “Why Americans Hate Their Banks But Don’t Know Enough to Love Their Credit Unions”

Dave had a lot to say in praise of credit unions. He said he receives hundreds of customer service complaints mostly from utility companies and banks. So far, no one has approached him seeking his help to redress an issue or complaint related to a credit union! He jokingly said that that was bad for his business!

Dave also said he now understood why it was called BANKruptcy and not CREDITUNIONruptcy! That had the crowd roaring!

But on a serious note, Dave warned us to be on the lookout for scammers. He walked us through his five commandments for avoiding scams or if you ever become a victim of one, how to extricate yourself from it. His book, Watchdog Nation, teaches you tips, tools and strategies to bite back when businesses and scammers do you wrong.

Executive Monograph - Marketing is Critical

2009-09-04T04:00:00Z

Is now the time to hunker down or is now the time to aggressively pursue market share? Jim Schrimpf, President and CEO of Brewery Credit Union shares his opinion. We welcome your comments, too.
<center><embed src="http://blip.tv/play/AYGdmCgA" height="341" width="450"></embed> </center>

Is Courtesy Pay Good for Members?

2009-09-01T04:00:00Z

Mike Beall, President of the Maryland and DC Credit Union Association, recently had a letter published in USA Today regarding overdraft protection programs – often called “courtesy pay.” Courtesy pay is not a target product of REAL Solutions. However, many low-income families are using and have come to depend on this product.

While we do not promote or refute the use of this product, we want to know what do you think:

Do courtesy pay programs benefit and promote good money management strategies for low wage working families? If so how?

If not, why not?
<center> <noscript> I think courtesy pay programs are…(trends) </noscript> </center>

Answer simply through our survey and click here to leave a comment.

Here is Mike’s letter:

USA TODAY’s recent article about courtesy payments characterized this service, which covers members’ checks when they have insufficient funds, as primarily a profit center for credit unions (“Credit unions hit customers with fees, too,” Cover story, Money, Aug. 4).
Such courtesy payments are a short-term safety net for members struggling to stay on their feet.

The article underscores important differences in the way credit unions and banks make courtesy payment available: Credit unions charge significantly less than banks for covering member checks and typically use the fees to subsidize favorable interest rates for other services.

Although courtesy payments have detractors, we think it’s important for policymakers to remember the value of this service.

As credit unions, we also recognize our obligation to educate our members about the responsibility they must shoulder as the ultimate stewards of their financial resources.