Brother, Can You Spare a MBA? Why You Shouldn't Freak Out Over Student Loans

by Ron Daly

I knew it wouldn't be long before I had to say something folks wouldn't agree with. 

There's a new proposal suggested by the Obama administration that would extend student loans directly from the Government instead of pushing the 97% guaranteed loans through banks and CUs. Of course, I always like to look at things from a Taxpayer's point of view. And how good is it to hear the Government is trying to save $94 Billion over the next ten years? Considering the billions and billions spent on bailouts, it's a welcome relief to hear that they've found one area where they can save some money.

Of course, the proposal is under fire from financial institutions and trade groups, who argue that this will mean less lending (read the CU Journal article here). 

Or will it? 

A Day to Remember

by Ron Daly 

I try not to get too sappy with my posts, but sometimes you just have to say something. 

With memorial day coming up, I'm sure most folks are thinking about the three day weekend. With all the added stresses compounding - gas going back up for the summer travel season, trying to figure out what to do with the kids who are getting out of school, making arrangements, fixing up the house, visiting family - it's hard to find a moment to remember why it's all here. 

I took a moment yesterday to think about the meaning of a thing like Memorial Day. It's a day of remembrance, not just for those who gave their lives for liberty, but for those who still fight today. The thought of these men and women fighting for the life of our country humbles me. I may be just like any other American, starting my summer and making my plans, but I always give pause to think about what the day is for and to appreciate my family and my home. 

When I started thinking about setting aside a day of memory, a day that's built for remembrance and reflection, I started thinking about the state of our country and the state of credit unions. I remember when I went to work for the credit union some years back, how I worked hard and how I got to where I am now. I remember when times were lean before now, and looking back helps me find new ways to shoulder my burdens in these days of recession and "doing more with less". I'll never say the current recession is a good thing - it isn't. Nothing good about nearly 10% unemployment and shrinking markets that can't find their feet. But if there's a silver lining to be had, look no further than a re-committed sense of purpose in our industry. 

The squabbles about having to expand our message, needing to be more competitive with banks and with each other, the need of more capital, and the future of the industry go on as you read this. But if one credit union (or bank... remember, too, that not all banks are created equal) has reached out to people in need and helped them - not with a donation but with a new direction -  it means we're remembering our core values. We were designed to help the man that's down, to enlighten those who didn't know before what they had to do to make their dream come together, to inspire someone to take stock in a community of borrowers that each had a share in the success. 

Sometimes I forget. It happens to everyone in this industry. But I took the time to remember. And I pledge to take a moment every day to remember not just the values of our industry but the values of our country. I will be a better neighbor, a kinder partner, a stronger leader. I won't take for granted the service and the goodness of the people that forged our prosperity and believed enough in our dreams and our passions to devote their lives to our country's protection.

I'm going to take the time to remember. I hope you will, too. Have a happy Memorial Day.

Are CUs About to Have a Gold Rush?

by Ron Daly

We've been hearing for a while about how credit unions were seeing deposits and new members increase due to the continuing distrust of the major banks. We've published a few articles about Credit Unions having to "beat the drum" and show off their core competency of smart money management and some credit unions have done a great job. According to the Atlanta Journal Constitution, CUs in the Georgia CUA have increased loan volume 14 percent and deposits by 10 percent (click here). 

But that story, while impressive, pales in comparison to the story of Advantis Credit Union, which gained $20 million in desposits...in a mere two days! (click here for the CU Journal article). 

From the Journal - 

Moving into a community in which Advantis was not well known, the 39,000-member credit union understood it had to come in with some strong offers. During the grand opening only, the CU offered an 11-month, 5% APY CD, and 2% cash-back on an auto refinance over $10,000. It also promoted its Fusion Checking, which paid 3.5% APY at the time.

$20 million in two days? That's incredible. And an indicator that some people are starting to see the light. The larger banks survived the stress test, and some didn't need more capital infusions, but how long will it take to wash off that stink? What's more, how do we know that they're operating any better now with Uncle Sam's hand on their shoulder? (This story came to our attention via our new Twitter page). 

So, let's hear about your plan to make $20 million in two days. Are you going to try to make a big push for membership in the coming months? Is your CU having a gold rush from banks' stumbling? Leave your comments/input below. 

Twitter Part 2.0

by Ron Daly

 

[Mike lawson posted an insightful comment to our article "Sorry, Twitter - Rob's just not that into you". So I decided to ask Jimmy Marks, our Creative Media Director and Web 2.0 follower, to talk about the micro-blogging service. Below is his response, and some thoughts on where the service is and where it's going. You can follow the Soapbox on Twitter by clicking here.] 

The question I've been asked is "why Twitter?" Why not? It's a nice little peek at everyone's working/thinking cycles, it's great entertainment, there's always someone interesting to follow, and it's costing me nothing 

...I take that back. It's costing me time. But it's time I can usually say is well spent. Most of the people I'm following are advertising and creative types and marketing analysts. Or writers. I'm big on following writers.

Sorry, Twitter - Rob's Just Not That Into You.

by Ron Daly

[Editor's Note -- This article was originally run on clickconnectcommunicate.com. For information on Credit Unions using Twitter and Social Media, read this article in the CU Journal.

You can now follow CU Soapbox on Twitter! View our feed and follow us: click here.]

Believe it or not, [the ClickConnectCommnicate] blog will be one year old this month. One of our first posts came from COO/CIO Rob Banker, who was extolling the virtues of Twitter (click here to read). He signed up for an account and started Tweeting.

And then, one day, he disappeared.

Apparently, he wasn't the only one. It seems Twitter is having trouble keeping users. According to eMarketer, Twitter only retains about 40% of new users/followers (click here). To get further insight as to why Rob walked away from the popular mini-blogging site, we asked him some questions about his exodus from Twitter and social media altogether.

So, why aren't you on Twitter anymore?

Simple... Signal to noise ratio. And this was before the mainstream explosion on Twitter. I was following a few dozen Twitter feeds of people in tech and a few other industries as well as a few friends. The quality of information wasn't worth the time. I don't fault the writers so much, 140 characters isn't enough to say anything particularly useful. Unless you're writing haiku.

What do you think of the mainstreaming of Twitter (and social media in general)?

Feels like 1995 all over again. Everyone had to have a homepage. They didn't know why, but they had to have it. I fell for it too. I spent a week long vacation creating a website. There's seven days I can't get back. It was a good education, but ultimately the site served no value for the company. It was just too soon. Being an early adopter isn't necessarily a good thing.

Thanks for the Safety Net – Banks Repaying TARP Money

by Ron Daly 

This weekend, Saturday Night Live started off with a skit of a fake Geithner discussing the bank stress test and the "pass/fail" rating system. It eventually wound up being a "pass/pass" scale after bank and lobbyist edits to the plan. Of course, all top banks passed.

At the BarCampBankVegas (click here for last week's article), I heard some concerns about the Stress Test - the evaluation of banks that was supposed to be a crippling blow to the financial services industry (Click here for an April article from CU Journal about the fears surrounding the Stress Test). Many fellow CEOs were anxious about the results, and were certain investments and capital were going to slip again. The results? Of the nineteen banks tested, ten need to come up with $75 billion in new capital. $34 billion of that was needed by one bank - Bank of America. The rest of the major banks needed far less, but some needed no additional capital, according to the test. You can see who needs what and how the assets break down here. 

BarCampBankVegas happens in Vegas, but doesn't stay there.

by Ron Daly 

Robbie Wright, a friend of the blog and my fellow Technology Council Member at NACUSO, wrote us a little piece about the BarCampBank that was coming up in Vegas. I was in town already for the NACUSO conference a few days later, so I was excited to see exactly what a BarCamp was all about. 

Let's go ahead and knock out the two confusing aspects: One, there's no bar. Two, nobody threw down sleeping bags. So, no camping. 

But there were plenty of people from the industry there who were sharing ideas, questions, grievances, personal high-notes, and everything in between. Obviously, TARP and Corporate Capital came up. We also talked about assets, real estate, advertising, promotion, collaborative cooperation between CUSOs and credit unions, ownership issues, the changing age of members and borrowers, Web 2.0, social media, e-mail...the list goes on and on.