Credit Union Newsletter - #30

• Municipal Credit Union brings wealth management to members.

Amid the changing landscape of wealth management, Municipal Credit Union in New York is partnering with the Minneapolis-based Ameriprise Financial Institutions Group to help members building intergenerational wealth and plan.

Since the $4.2 billion-asset MCU officially rolled out its Municipal Wealth Builders program in June of last year, the credit union has worked to capitalize on its partnership with Ameriprise Financial and expand the reach of the program across its membership spanning the metropolitan New York area.

• SCE FCU's $1 Million Investment Supports Financial Wellness in L.A. County

?The $1 billion SCE Credit Union in Irwindale, Calif., located about 20 miles east of Los Angeles in Los Angeles County, announced a $1 million investment that aims to improve financial lives in the nearly 10 million-resident county.

SCE FCU committed to a five-year partnership with the YMCA of Metropolitan Los Angeles (YMCA-LA), during which time the credit union's $1 million contribution will fund financial education programs, resources and benefits to YMCA members, staff and the wider community, SCE FCU said. In addition, the partnership will open up opportunities for the community in the areas of volunteerism, mentorship, marketing and community event participation. And, SCE FCU will serve as the credit union of choice for the YMCA-LA's 1,700 employees.

• ?Congressional Report Shows NCUA's Diversity Strengths & Weaknesses

On Thursday, the NCUA released its Office of Minority and Women Inclusion (OMWI) Annual Report to Congress that revealed the hard data behind the agency's diversity, equity, inclusion and accessibility (DEIA) initiatives and programs as of September 2023.

A report of the 1,225 employees at the NCUA, women represented 44.6% of the workforce, which was up almost a full percentage point from 2022. But this number remains well below the U.S. Equal Employment Opportunity Commission's (EEOC) Civilian Labor Force (CLF) benchmark of 48.2%.

• Here’s What New Forecast from Banks’ Chief Economists Sees for What’s Ahead

A new forecast from the American Bankers Association’s Economic Advisory Committee (EAC), which is made up of the chief economists at major banks, sees the U.S. economy progressing along a soft-landing path

Recession risks have diminished, inflation continues to moderate, and employment gains remain robust,” the EAC said in releasing its new forecast. “A gentle easing cycle by the Federal Reserve will start around mid-year, facilitating trend-like GDP growth.”

?The committee, composed of 16 chief economists from some of North America’s largest banks, sees real economic growth remaining healthy at around 1.7% for 2024 and 1.8% for 2025. Recession odds have diminished somewhat over the last six months, although policy and geopolitical risks keep them close to 30% both this year and next, the ABA reported.

• Delta Community Credit Union Celebrates its 500,000th Member

?The $8.5-billion noted hit the milestone after having 161,000 members at year-end 2005, prior to expanding its field of membership regionally.

Delta Community identified its 500,000th member as Jasmine Van Hamersveld from Henry County. Van Hamersveld opened her membership in late January as she was looking for a local financial services provider, and Delta Community said it contacted her days before the DCCU’s 84th anniversary on March 8 to recognize the special status of her account opening.

?As a thank you, Delta Community said it awarded her with a $1,000 bonus that it deposited into a one-year CD.

• Fee Proposal on Instantly Declined Transactions Raises Concerns, America’s CUs Tells Bureau

A CFPB proposal that would prohibit certain fees for instantly declined transactions has a “broad unfair, deceptive, and abusive acts or practices (UDAAP)” approach that concerns America’s Credit Unions, the organization wrote in comments filed with the Bureau

The proposal would prohibit covered financial institutions from charging fees, such as nonsufficient funds (NSF) fees, when consumers initiate payment transactions that are instantaneously declined.

“The expansive view of abusiveness espoused in the proposed rule fails to provide the level of clarity that covered entities require to comply with any degree of certainty,” wrote America’s Credit Unions’ James Akin. “America’s Credit Unions urges the Bureau to establish clear rules of the road by issuing formal guidance or additional policy statements that include specific examples, case studies, or objective criteria for each aspect of the abusiveness prong and ultimately, to more clearly define this provision through an official rulemaking process.”

Sources – American Banker, CU TIMES, CUINFO TODAY