To help credit unions in planning and budgeting, and to leverage a new, efficient application program, the Minnesota Credit Union Foundation is pleased to announce a new professional development grant application process and timeline.
All 2024 Professional Development Grants are currently open for application with a deadline of Dec. 8, 2023. The Foundation Board will finalize awards and recipients notified no later than Dec. 31, 2023. Grant applications submitted outside this timeframe may be considered by special request on a case-by-case basis. Eligible Professional Development Grant Categories include:
For more information on these grant opportunities visit mncun.org/apply-for-a-grant. At their October 13th meeting, the MnCUN Board approved the dues factor which will not change from 2023, using June call report data to determine credit union asset sizes. By holding the dues factor steady we remain dedicated to delivering the highest value to our members while supporting the industry across the state.
Over forty-five percent of Minnesota credit unions will see a decrease in MnCUN dues for 2024. The MnCUN Board is cognizant of the current economic uncertainty and recognizes that many credit unions have seen a decrease in asset size over the past year. As we await the outcome of the CUNA/NAFCU merger vote, we know that for 2024, both organizations are calculating dues using the same CUNA methodology or NAFCU methodology currently in effect as of December 31, 2023. Current members of CUNA and NAFCU are encouraged to pay 2024 membership dues for both organizations. Invoices and full membership information, reflecting the outcome of the merger, will be sent in December, with a due date of January 31, 2024. The Board discussed future revenue projections and scenarios, along with prioritizing strategic initiatives, which will help guide direction and priorities for the organization into the future. The MnCUN Board also concurred with the recommendation of the Awareness Fund Committee to move forward with a Minnesota-specific Awareness initiative for 2024, growing credit union knowledge and interest by telling local stories, amplifying values, and sharing insights about the advantage of being a Minnesota credit union member. More details on the new program will be announced to credit unions in October. Thank you for your continued support and trust. As a member of MnCUN, you have the support of the only trade association that champions Minnesota Credit Unions, ensuring credit union priorities are front and center as we advocate, accelerate, and collaborate to ensure a thriving credit union system in Minnesota.  Tomorrow is International Credit Union Day, an opportunity to raise awareness and celebrate what makes credit unions unique: a mission to bring financial inclusion and well-being to people all over the world. In Minnesota, Gov. Tim Walz has proclaimed October 19 as Credit Union Day.
The Minnesota Credit Union Network is pleased to commemorate 75 years of collective achievements across the credit union global movement on October 19, 2023. Since its inception in 1948, International Credit Union Day has been celebrated through outreach, volunteering, fundraising and other activities. In 2023, we mark this celebration’s historic 75th anniversary. This milestone offers us the unique opportunity to acknowledge the tireless effort of credit union employees while celebrating members the world over. Share how you are celebrating the day by using the #ICUDay hashtag and tagging MnCUN (@mncreditunions) on social media. CFPB Issues Guidance to Stop Large Banks Illegal Junk Fees and Report on NSF Fees: The Agency issued an advisory opinion on October 11 for a provision which generally prohibits large financial institutions from imposing unreasonable obstacles on consumers.
Implications of New NCUA Financial Innovation Rule: As of October 30, the new Financial Innovation rule will permit all credit unions to have more flexibility to engage with third-party lenders in general and with FinTech’s, in particular with privacy laws in mind. Department of Justice (DOJ) and CFPB Joint Statement on Discriminatory Lending Towards Immigrants: On October 12, the agencies issued their joint statement reminding financial institutions that all credit applicants are protected from discrimination on the basis of their national origin, race and other characteristics covered by the Equal Credit Opportunity Act (ECOA) implemented in Reg B, regardless of their immigration status.
The Minnesota Credit Union Network looks forward to working with Sarah to strengthen the credit union industry in Minnesota.
The Minnesota Credit Union Network invites young professionals to two free webinars in November and December. The CREW Peer-to-Peer (P2P) will take place November 1 starting at 1:00 p.m. via webinar. Teresa Applewick, President/CEO of the Laurentian Chamber of Commerce from Virginia, MN will be presenting on public speaking and go over tips to dress for success as a young professional. This event is meant to be an opportunity to meet and share with one another.
Join the CREW Young Professionals for the "Coffee with the CREW" on Wednesday, December 6 at 9 a.m. via webinar. This series focuses on providing credit union young professionals with continued opportunities for networking and collaborating to help further knowledge and professional growth within the industry. This meet-up will be facilitated by Tami Cybulski, Director of Human Resources and Learning and Development from Hiway FCU. She will be speaking on, "How to advocate for yourself/budget for yourself." With questions, please contact MnCUN Director of Engagement, Xiong Lee by email. The Women’s Leadership Network invites female credit union colleagues and their male allies to our year end celebration event. Please join us on Thursday, November 16, from 3:00-6:00 pm at the Jax Café in Minneapolis. The afternoon will include insightful conversation and networking, as well as celebrating the accomplishments of the Women’s Leadership Network in 2023.
Watch for our speaker announcement coming soon! Registration is now open and available until Nov. 10. For more information about the Minnesota Credit Union Women’s Leadership Network, visit the group page online. By Emily Nadboralski, Director of Data & Analytics, and Vicki Potter, Analytics Consultant, TruStage™. This article is provided as part of MnCUN's strategic partnership with TruStage. For more information, visit the Solutions Directory. In an era dominated by digital advancements, the credit union industry may face a new and intricate battle against predatory lending. Drawing insights from actual credit union data, our goal is to shed light on the specific segments of members who are most susceptible to these lenders. Once credit unions know which members are most vulnerable, they could intervene with tailored product offerings designed to help prevent members from entering a payday lender cycle. The surge of digital predatory lending without regulation The digital revolution is one of the causes of a surge in predatory lending. It has helped to create an environment where certain lenders might take advantage of gaps in regulation and consumer understanding. Practices such as high-interest payday loans, terms that could be confusing, and fees that aren't immediately apparent are among the methods employed by these lenders to attract borrowers. As an example, the annual percentage rate (APR) of a typical two-week payday loan with a $15 fee per $100 borrowed is 391%. [1] The situation has become so severe that some U.S. states have enacted a 36% interest rate cap for payday lenders and 12 states have banned them altogether.2 Payday lenders have expressed concern that the cap will not permit them to continue conducting business in Minnesota, as an example, which they claim will encourage prospective borrowers to pursue loans via unregulated online marketplaces.2 However, research indicates a substantial decrease in payday loans and borrowers pursuing online loans within regulated states.2 Additionally, more than 80% of borrowers have expressed they would be more cautious with their expenses if payday loans weren’t available. [2] Even with regulation in place, the magnitude of existing and estimated future payday lending growth is still prevalent. In 2021, the Payday Loans market had an estimated worth of approximately $33.5B and this is projected to increase to $42.6B by 2028. [3] Shedding light on vulnerable segments With the shift to the digital realm, payday loan providers can now greatly expand their outreach, encompassing a wider range of consumers. It is more probable that low-income households and communities of color will be targeted by payday lenders.2 Vulnerable members may choose a payday loan over their credit union because they may feel embarrassed displaying their current financial situation. Beyond the emotional strain, members may turn to digital payday lenders because they feel it's their only option. Thankfully, data has emerged as a powerful tool in the fight against predatory lending. By leveraging data analytics and technology, credit unions can gain valuable insights into their members' financial behaviors, helping enable them to identify signs of susceptibility to predatory lending and take proactive measures. Thankfully, data has emerged as a powerful tool in the fight against predatory lending. By leveraging data analytics and technology, credit unions can gain valuable insights into their members' financial behaviors, helping enable them to identify signs of susceptibility to predatory lending and take proactive measures.
Strategies for supporting vulnerable members Credit unions can proactively identify members who could benefit from support by collaborating with them when they seek assistance. They can also explore opportunities by examining Automated Clearing House (ACH) deposits from payday lenders into members' accounts, with the members' consent. This isn't always one large deposit; it can be small deposits from multiple payday lenders. Once identified, credit unions can extend a helping hand by offering to help pay off the loans and get members into better financial security. Through this approach, credit unions achieve two benefits. First, by helping members improve their financial situation, they may cultivate a sense of loyalty among members who develop a strong trust in their credit union. Second, they may enhance their earnings through increased interest generated by loan repayment products. The path forward The digital transformation of the lending landscape has great benefits, but it has also opened the door to predatory lending practices. Credit unions, with their member-centric approach, are well-positioned to leverage data to help protect their members from falling victim to predatory loans. By harnessing the power of data, credit unions may help identify signs of predatory lending and take proactive steps to educate, intervene and offer dignified financial services with members’ best interest in mind. [1] United States Federal Trade Commission, “What to Know About Payday and Car Title Loans”, July 2023 [2] Minnesota Reformer, “Payday Loans Trap Minnesotans in a Cycle of Debt”, March 2023 [3] Vantage Market Research, “2022 Statistics: Payday Loans Market Will Surpass USD 42.6 Billion at 4.1% CAGR Growth: Vantage Market Research”, May 2022 |
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