MINNEAPOLIS (6/3/08)--Minneapolis is slated to become the home to the first Muslim credit union in the U.S.
The city's African Chamber of Commerce--which is planning the credit union--currently has a database of 1,500 people who support the credit union, said Martin Mohammed, executive director of the chamber (Northwestern Financial Review May 15).
The chamber's five-year strategic plan drafted in 2007 calls for the formation of a credit union in an unspecified Minneapolis location in 2009.
The credit union would provide services to people who are unbanked and families and establishments that conduct business according to tenets of Islamic law. The credit union will institute creative ways to adhere to religious restrictions that prevent Muslims from collecting interest on savings or paying interest on loans, Mohammed said.
There is a significant Muslim population, not only in Minneapolis, but in the U.S., Mohammed said. He said the Minneapolis credit union can become a model for credit unions nationwide--particularly in California and Michigan in which there are significant Muslim populations--on how to provide financial services to Muslims.
courtesy of cuna.org
Tuesday, June 3, 2008
Three of four consumers clinging to paper statements
SAN FRANCISCO (6/3/08)--While many credit unions are turning their operations green and encouraging their members to do the same, old habits die hard. Three out of four consumers still cling to their paper statements.
A new report released Monday by Javelin Strategy & Research found that green banking habits have yet to take hold. The San Francisco-based firm noted that if every U.S. household stopped receiving paper bills and statements, they would save 687,000 tons of paper every year--enough to circle Earth 239 times.
The report found that consumers aren't aware of how they can make a difference, and financial institutions have yet to find incentives that compel consumers to participate.
"Most consumers want to do the right thing, but if the process appears confusing or inconvenient, they simply aren't going to bother changing their habits," said Mark Schwanhausser, research analyst at Javelin Strategy & Research.
Of the 13 companies mentioned in the report, five are credit unions: Credit Union One of Oklahoma, Oklahoma City; Sound CU, Tacoma, Wash.; Star One CU, Sunnyvale, Calif.; Technology CU, San Jose, Calif.; and Vancouver City Savings CU, Vancouver, B.C.
The Green Banking Report's key findings:
A new report released Monday by Javelin Strategy & Research found that green banking habits have yet to take hold. The San Francisco-based firm noted that if every U.S. household stopped receiving paper bills and statements, they would save 687,000 tons of paper every year--enough to circle Earth 239 times.
The report found that consumers aren't aware of how they can make a difference, and financial institutions have yet to find incentives that compel consumers to participate.
"Most consumers want to do the right thing, but if the process appears confusing or inconvenient, they simply aren't going to bother changing their habits," said Mark Schwanhausser, research analyst at Javelin Strategy & Research.
Of the 13 companies mentioned in the report, five are credit unions: Credit Union One of Oklahoma, Oklahoma City; Sound CU, Tacoma, Wash.; Star One CU, Sunnyvale, Calif.; Technology CU, San Jose, Calif.; and Vancouver City Savings CU, Vancouver, B.C.
The Green Banking Report's key findings:
- Three out of four consumers receive paper statements;
- Of those surveyed, 34% said they switched to electronic statements to reduce their impact on the environment;
- 43% said they are more likely to do business with companies they perceive to be green;
- 22% said green initiatives cement the bond they have with their bank;
- 60% of "green bankers"--consumers who say environmental impact is "extremely important" in purchasing and banking decisions--are women; and
- 64% of "skeptics"--consumers who are "very less likely" to be more loyal to their bank because of its environmental activities--are men.
Availability, accessibility and complexity are the key challenges stalling the adoption of green banking behavior, said Javelin.
It advised financial institutions to focus on products and promotions that speak directly to environmentally conscious consumers. These include "green audit" calculators to help consumers compute the environmental impact of their banking behavior, a one-stop paper statement shut-off option for all accounts and green banking marketing campaigns that reward consumers for eco-friendly practices.
courtesy of cuna.org
Monday, June 2, 2008
Survey: Americans make tough economic decisions
WASHINGTON (6/2/08)--If you've been trying to stretch your paycheck a little further these days, join the club. In a recent AARP survey, 81% of respondents said the U.S. economy is in fairly bad or very bad condition, and nearly 75% believe the economy is getting worse (AARP May 6).
AARP commissioned the nationwide survey to assess how Americans age 45 and older are responding to the economic downturn. The results showed more middle-aged and older Americans are worried about the economy, and are changing their habits as a result:
One of four (26%) had trouble paying their mortgage or rent;
Two-thirds (66%) had trouble paying for essential expenses like food, gas, and medicine; and
More than half (53%) had trouble paying for utilities.
Roughly 60% of respondents tried to make up for these budget shortfalls by eating out less and spending less money on entertainment. Almost half had postponed plans to travel or make a large purchase.
The struggling economy also has affected retirement plans. One-third of survey respondents stopped putting money into their retirement accounts, and 23% withdrew funds from investment accounts prematurely. In addition, more than one-fourth of all workers age 45 and older have postponed their retirement start date.
The difficult economic decisions Americans face may affect their decisions at the polls in coming elections. The majority of survey respondents (74%) believes elected officials are not doing enough to help people hurt by the economic downturn. A CNN/Opinion poll revealed that nearly half (49%) of Americans consider the economy the most important issue when deciding whom to vote for in November's presidential election.
Seek help now if you're struggling financially:
AARP commissioned the nationwide survey to assess how Americans age 45 and older are responding to the economic downturn. The results showed more middle-aged and older Americans are worried about the economy, and are changing their habits as a result:
One of four (26%) had trouble paying their mortgage or rent;
Two-thirds (66%) had trouble paying for essential expenses like food, gas, and medicine; and
More than half (53%) had trouble paying for utilities.
Roughly 60% of respondents tried to make up for these budget shortfalls by eating out less and spending less money on entertainment. Almost half had postponed plans to travel or make a large purchase.
The struggling economy also has affected retirement plans. One-third of survey respondents stopped putting money into their retirement accounts, and 23% withdrew funds from investment accounts prematurely. In addition, more than one-fourth of all workers age 45 and older have postponed their retirement start date.
The difficult economic decisions Americans face may affect their decisions at the polls in coming elections. The majority of survey respondents (74%) believes elected officials are not doing enough to help people hurt by the economic downturn. A CNN/Opinion poll revealed that nearly half (49%) of Americans consider the economy the most important issue when deciding whom to vote for in November's presidential election.
Seek help now if you're struggling financially:
- Prevent foreclosure: Visit hopenow.com or call 888-995-HOPE (995-4673);
- Seek credit counseling: Visit nfcc.org or call 800-388-2227; and
- Map out a spending plan: Contact your credit union, or the local cooperative extension service via csrees.usda.gov/Extension/.
courtesy of cuna.org
CU Aid gives $123,300 to those affected by Calif. wildfires
RANCHO CUCAMONGA, Calif. (6/2/08)--About $123,300 in grants have been distributed to help credit union members affected by wildfires that hit Southern California last fall, the California Credit Union League said Friday.
CU Aid is a centralized disaster relief fund-raising mechanism activated by the National Credit Union Foundation (NCUF) and the league during the fires.
The grants were distributed throughout the San Diego area--which was one of the areas hid hardest by the fires.
The grants--ranging from $500 to $10,00--were distributed to members of:
Financial 21 Community CU, San Diego;
First Future CU, San Diego;
Great American CU, San Diego;
Ketema FCU, El Cajon;
Mission FCU, San Diego;
San Diego County CU;
San Diego Metropolitan CU; and
USE CU, San Diego.
Some of the checks were presented by NCUF Immediate Past Chairman Mary Cunningham, CEO, USA FCU, San Diego.
"CU Aid grant recipients are realizing they are part of a larger credit union community," Cunningham said. "They will be loyal credit union members for life."
Most of the recipients lost their homes, and said they are planning to use the money to rebuild.
Most of the available funds raised for wildfires victims have now been distributed; some were recently reallocated--with the support of contributor--to help those impacted by the tornadoes that hit Alabama in February. This allowed the NCUF to make 17 more grants totaling over $87,000 for credit union employees and members who lost their homes.
The CU Aid donation form has been restructured to ensure that relief money can be channeled efficiently to any major disaster area that impacts credit unions. Supporters can donate via www.cuaid.coop/california in California or www.cuaid.coop/nevada in Nevada.
All donations are directed to the National Credit Union Foundation Disaster Relief Fund, which dedicates every dollar to grants. For donors outside of California and Nevada, use the link.
courtesy of cuna.org
CU Aid is a centralized disaster relief fund-raising mechanism activated by the National Credit Union Foundation (NCUF) and the league during the fires.
The grants were distributed throughout the San Diego area--which was one of the areas hid hardest by the fires.
The grants--ranging from $500 to $10,00--were distributed to members of:
Financial 21 Community CU, San Diego;
First Future CU, San Diego;
Great American CU, San Diego;
Ketema FCU, El Cajon;
Mission FCU, San Diego;
San Diego County CU;
San Diego Metropolitan CU; and
USE CU, San Diego.
Some of the checks were presented by NCUF Immediate Past Chairman Mary Cunningham, CEO, USA FCU, San Diego.
"CU Aid grant recipients are realizing they are part of a larger credit union community," Cunningham said. "They will be loyal credit union members for life."
Most of the recipients lost their homes, and said they are planning to use the money to rebuild.
Most of the available funds raised for wildfires victims have now been distributed; some were recently reallocated--with the support of contributor--to help those impacted by the tornadoes that hit Alabama in February. This allowed the NCUF to make 17 more grants totaling over $87,000 for credit union employees and members who lost their homes.
The CU Aid donation form has been restructured to ensure that relief money can be channeled efficiently to any major disaster area that impacts credit unions. Supporters can donate via www.cuaid.coop/california in California or www.cuaid.coop/nevada in Nevada.
All donations are directed to the National Credit Union Foundation Disaster Relief Fund, which dedicates every dollar to grants. For donors outside of California and Nevada, use the link.
courtesy of cuna.org
CUs need to say 'Hey! We're the good guys!'
MADISON, Wis. (6/2/08)--Television commentator and retail financial services expert Ron Galloway, director of a controversial documentary about Wal-Mart, believes credit unions are the only financial institutions that consumers can trust.
But as National Credit Union Foundation (NCUF) Executive Director Steve Delfin explains in his "Viewpoint" column in the June issue of Credit Union Magazine, credit unions need to tell their story.
"I met and heard Galloway speak at the Credit Union Association of Colorado and Wyoming's Annual Meeting," Delfin said. "While not optimistic about America's economy, he now emphatically asks, 'Why aren't credit unions telling their story? In case you guys haven't noticed, banks aren't particularly keen on credit unions. They're trying to eat your lunch on Capitol Hill.'"
As Galloway tells credit unions with his Georgia vernacular, "Y'all need to get loud! You need to say, 'Hey! We're the good guys!'"
"He's right," Delfin said. "We need to tell our stories about the value of credit unions, about the help we provide, about outreach to emerging underserved populations, and about how credit unions are the only financial institutions that consumers can trust."
NCUF is offering credit unions the opportunity to tell their stories in the Social Impact and Community Outreach Special Supplement in Credit Union Magazine. The supplement will be featured in NCUF's Annual Report to be published in the October issue of Credit Union Magazine.
To reserve a spot in the supplement, credit unions and their supporters can use the resource link or call Delfin at 800-356-9655, ext. 6769.
"Credit unions truly are standard bearers of social responsibility in the financial services industry," Delfin concludes. "Credit unions are where the institutional values and principles of the cooperative business model have so clearly and emphatically resulted in socially responsible, ethical, pro-consumer behavior. Credit unions are consumers' champions. We're helping the people who need it most. We need to get louder."
courtesy of cuna.org
But as National Credit Union Foundation (NCUF) Executive Director Steve Delfin explains in his "Viewpoint" column in the June issue of Credit Union Magazine, credit unions need to tell their story.
"I met and heard Galloway speak at the Credit Union Association of Colorado and Wyoming's Annual Meeting," Delfin said. "While not optimistic about America's economy, he now emphatically asks, 'Why aren't credit unions telling their story? In case you guys haven't noticed, banks aren't particularly keen on credit unions. They're trying to eat your lunch on Capitol Hill.'"
As Galloway tells credit unions with his Georgia vernacular, "Y'all need to get loud! You need to say, 'Hey! We're the good guys!'"
"He's right," Delfin said. "We need to tell our stories about the value of credit unions, about the help we provide, about outreach to emerging underserved populations, and about how credit unions are the only financial institutions that consumers can trust."
NCUF is offering credit unions the opportunity to tell their stories in the Social Impact and Community Outreach Special Supplement in Credit Union Magazine. The supplement will be featured in NCUF's Annual Report to be published in the October issue of Credit Union Magazine.
To reserve a spot in the supplement, credit unions and their supporters can use the resource link or call Delfin at 800-356-9655, ext. 6769.
"Credit unions truly are standard bearers of social responsibility in the financial services industry," Delfin concludes. "Credit unions are where the institutional values and principles of the cooperative business model have so clearly and emphatically resulted in socially responsible, ethical, pro-consumer behavior. Credit unions are consumers' champions. We're helping the people who need it most. We need to get louder."
courtesy of cuna.org
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