Trusted News for Credit Union Leaders
Credit Union Times
MA Y 8, 2019 | VOL. 30 | NO. 15 | CUTIMES.COM
Must Reads
INVESTMENTS
‘Pensionize’ 401(k)s and IRAs
In a world of defined contributions, American workers have
three challenges – inadequate
savings, leakage (or loans/early
withdrawals) tied to their retirement accounts and the need for
retirement income. Plus, just half
of all DC plans offer a way for
investors to transform balances
into periodic retirement income,
with only one in five offering
guaranteed lifetime payouts.
This situation prompted Steve
Vernon of the Stanford Center on Longevity, Wade Pfau of
The American College of Financial Services and researcher Joe
Tomlinson to explore and devise solutions to “pensionize”
retirement plans. Their work,
first published last year and then
updated this year, finds that only
one-third of workers contact financial advisors, and most lack
the necessary skills to convert
savings into retirement income
and typically have short planning horizons.
But research from the Stanford Center on Longevity (SCL)
and Society of Actuaries (SOA)
has found a “straightforward retirement strategy,” according to
the three authors. “Choosing a
specific solution that will help
workers generate retirement income requires them to make
informed tradeoffs between potentially competing goals,” they
explained, such as “maximizing
lifetime income; providing access to savings (liquidity); planning for bequests;
HUMAN RESOURCES
Integrating Health Care at CU
“Integration” has become a
buzzword in health care. It
sounds good, but what does it
really mean? Quite simply, integration in health care is all about
connecting otherwise separate
parts of the health care system
to drive better outcomes, lowe
costs and improve the customer
experience. The evidence shows
connected patient care, in which
the patient’s whole health is considered, leads to the best health
outcomes. To support and com
plement this approach, insurance companies are designing
innovative integrated health car
benefits packages.
When medical, pharmacy,
dental, vision and disability care
are seamlessly connected and
the full power of integrated data
is unlocked – including member
claims, population insights and
employers’ health managemen
programs – health care providers have access to a complete
picture of employees’ health
and well-being in a format that
is easy for multiple providers to
ccess and interpret. Instead of
walling these services off in a
silo, they are integrated into one
system, allowing for the optimized collection and sharing of
key, actionable information.
The information that integrated health care delivers helps pr
viders see the broader picture,
allow ng them to better prevent,
diagnose and treat illness while
also giving them the ability to
identify minor issues Y16
Board Strategy
Design a board that
delivers value. Y14
Memorable
Marketing
Conquer
your online
competition. Y10
FOCUSREPORT:
DIGITAL MEDIA
To reach today’s members and prospective members, CUs must develop an
omnichannel experience that is aligned with consumer media consumption.
Learn more in this Focus Report. Y6
ven as credit unions try
to raise caps on member
business lending, they
are also running against
barriers related to the higher com-
plexity of business lending, and
the movement’s recent and un-
fortunate experience with a form
of commercial loan that soured
– loans backed by taxi medallions.
Credit unions increased their
business lending faster than
banks last year, but the movement
is just a drop in a banking ocean.
Credit unions held $65.6 billion
in commercial loans backed by
real estate at the end of 2018, up
16.5% from a year earlier. Com-
mercial loans not backed by real
estate rose 7% to $7.5 billion.
FDIC data showed banks held
$2.16 trillion in commercial and
industrial loans on Dec. 31, 2018,
up 7.8% from a year earlier. Last
year’s growth rate was nearly
twice that of the 4% growth rate in
2017.
Banks also held $2.33 trillion
in real estate-backed loans for
business purposes, including
construction and development,
offices, stores, apartments and
farmland. Growth of those busi-ness-related loans was 4.3% in
2018 and 5.6% in 2017.
Many credit unions have shied
away from business lending Y18
JIM DUPLESSIS
CU Business
Lending
Rises
GROWTH STRATEGIES
howing members the
money, and closing
and collecting loans,
Temenos’ digital environment
is helping credit unions achieve
those goals by providing them
a holistic member view from
origination to distressed asset
management.
Three credit unions – Maps
Credit Union ($775 million, Salem, Ore.), Hudson Heritage Federal Credit Union ($403 million,
Middletown, N.Y.) and Guardian Credit Union ($511 million,
Montgomery, Ala.) – recently
expanded their existing relationships with the Geneva, Switzer-land-based Temenos, which has
its U.S. headquarters in Malvern,
Pa., to include additional modules of the Temenos Lifecycle
Management Suite.
The LMS, which, according to
the financial technology company, is used by more 600 credit
unions and banks, is comprised
of software modules containing
business-specific functionality
designed to streamline operations
in account and loan origination,
service, collection and recovery.
All modules are available individually or as a complete set of packaged products.
In January 2019, Avoka, a Temenos company and SaaS
Expanding CUs’ Lending Platforms
ROY URRICO
rurrico@cutimes.com
Y17
FINTECH