Trusted News for Credit Union Leaders
Credit Union Times
AUGUS T 23, 2017 | VOL. 28 | NO. 29 | CUTIMES.COM
Competitive
Rift Divides
CUs
PETER STROZNIAK
pstrozniak@cutimes.com
or the good of the credit
union movement, many
cooperatives say they
collaborate and cooperate with other credit unions.
But it’s a far different story for
credit unions that are competitors
in a crowded metropolitan market
such as Tampa, Fla. The midsize
city with a population of about
377,000 has nearly 50 local and
out-of-state commercial banks,
eight out-of-town credit unions
and a dozen credit unions that are
headquartered there.
Competitive pressures have
apparently forced a fierce rift between $2.3 billion Grow Financial
Federal Credit Union and the $1.8
billion GTE Federal Credit Union,
which is playing out in a federal
lawsuit that involves serious accusations of unauthorized access
to confidential and proprietary information and disclosures of trade
secrets. What’s more, legal experts, who weighed in on this case
after reviewing its court filings, say
all too often businesses don’t do
enough to protect their confidential information and offered their
insights on what credit unions
should do to protect themselves.
In a lawsuit filed in May in U.S.
District Court in Tampa, Grow is
accusing a former credit union
employee of jumping ship
MANAGEMENT
Y18
FINANCE
Advisors Getting Younger
The financial advice industry is
getting younger, according to the
2017 FA Insight Study of Advisory
Firms: People & Pay.
The report from TD Ameritrade Institutional, which acquired FA Insight in 2016, draws
on data received from 388 financial advisory firms. It finds that
the median age of lead advisors
has slipped by three years to 47
since 2015.
The study also finds that the
median years of experience for
an advisor has also declined, to
18 years from 20 years in 2015.
Vanessa Oligino, director of
business performance solutions
at TD Ameritrade Institutional,
attributes this to the fact that
more firms are hiring recent college graduates to fill client-facing
and revenue-generating roles.
“We think what we’re starting to see is advisors starting to
invest in that next generation of
talent,” she said.
Good News for Recent
College Grads
According to the study, 31% of
firms are targeting recent college
graduates for revenue-generating roles.
“These things together are
pointing to what we think is
hopefully a positive trend,” she
said. “Where after all these years
of talking about the talent shortage and you need to start thinking about the next generation,
[advisors] are starting to move in
that direction now.” Y16
Must Reads
Editor’s note: This is the last in a
three-part series about how same-say ACH is affecting credit unions.
ame-day ACH’s three-
phase rollout may be
speeding up payments
in the financial eco-
system, but the jury’s still out on
whether some of that progress
will come at the expense of one
well-known credit union product:
Bill pay. Some say same-day ACH
attracts mostly business users
and can peacefully co-exist with
bill pay; others wonder whether
same-day ACH’s similar end game
(quick, cheap funds movement)
will water down bill pay’s reach
with members.
The answer may not arrive until
after Sept. 15. That’s when Phase
II of same-day ACH’s three-phase
implementation plan kicks off, re-
quiring credit unions to provide
same-day ACH debit capabilities.
That will allow a wide variety of
consumer uses cases, such as util-
ity, mortgage, loan and credit card
payments, according to NACHA
— The Electronic Payments Asso-
ciation. Phase I, which took effect
on Sept. 23, 2016, increased the
movement of funds between fi-
nancial institutions to three times
per day and required all receiving
depository financial institutions
to accept same-day transactions.
On March 16, 2018, Phase
PAYMENTS
Same-Day ACH, Bill Pay: Who Wins?
TINA OREM
torem@cutimes.com
Y17
FOCUSREPORT:
CYBERSECURITY
The dark web holds an
endless amount of stolen,
personally identifiable
information, and
fraudsters are willing to
pay for complete profiles
in order to commit their
crimes. Learn how to keep
your members’ data out of
the bad guys’ virtual
shopping carts in this
Focus Report. Y6
An Experience
Journey
A bicycle
trek inspires
great member
service. Y15
Incident
Response
Be prepared
for the next
attack. Y10