Innovation is that flash of an idea—and it’s happening all the time. Disruption, on the other hand, might stem from innovation, slowly making changes in a marketplace until the whole landscape is different, according to Steve Hewins, senior vice president of CU Members Mortgage, a CUESolutions Bronze provider based in Texas. “A disruptor eliminates something that’s in the market today,” Hewins explains on this episode of the CUES Podcast. “And it normally comes in a phase. “Typically, it&apos;ll start off with initial disruption,” he continues. “And then you&apos;ll have very quickly some rapid or sequential evolution of that. And then … everything kind of starts coming together because people recognize it; they try to copy it; the status quo tries to adapt. And then basically, the status quo typically doesn’t adapt and then gets replaced with the ‘new normal’.“And so disruption does have innovation in it,” he adds. “But it’s more about the market dynamics of how it impacts the rest of the market.”During the episode, Hewins walks through each step of the mortgage lending process, talking about shifts in the marketplace that are happening right now—plus what credit unions might be able to do to compete with them—or to join them! Importantly, he emphasizes that credit unions should think about more strategically hiring lending staff going forward—that they should look to hire people who are natural innovators and ready to be part of marketplace changes.Currently, credit unions aren’t hiring for lending innovation or disruption, he notes. “We don&apos;t have credit unions that are out there hiring disruptors. … if you start hiring those people, you have to have a culture in the organization to retain them.”The show also gets into:Changes in home buying and how they are affecting mortgage lendingChanges in how appraisals are doneChanges in the closing processChanges in the post-closing phase of mortgage lendingLinks for this showCU Members MortgageTranscript of this showThe New Normal of Mortgage Lending by Steve HewinsMore content by Steve HewinsBecome a CUESolutions providerSponsor the CUES PodcastPlansmith

CUES Podcast

CUES 124: Disruption Opportunities in Mortgage Lending—an Interview With Steve Hewins

In a speech prepared for John F. Kennedy to be given on that fateful day in Dallas in 1963, we were to be reminded that “leadership and learning are indispensable to each other.”In this episode of the CUES Podcast, the 2021 CUES Emerging Leader, CUES member Alex Hsu, CCM, cites this quote as among his favorites. And he lives it.“When I completed my Gallup Strengths Assessment, for instance, my top strength was achiever, which is great for someone who leads projects, right?” says Hsu, VP/strategy and change management for  $25 billion SchoolsFirst Federal Credit Union outside of Los Angeles. “And my second top strength was learner. So really, throughout my career, I’ve sought to blend learning into everything that I do, which included going to grad school while working full-time and also pursuing these certificates” in everything from IT to change management to diversity.Hsu won the CUES Emerge challenge with a project about how to establish a “Center of Innovation” at a credit union. He says he designed his project for his own credit union to consider but also built it to be flexible so that other credit unions, including small ones, could use the same template.  Hsu seems happy to have won a seat to continue learning for CUES Advanced Management Program from Cornell University as part of the CUES Emerge program. In the show he also describes how the 2021 CUES Emerge cohort interacted during the learning and competition phases of the competition, as well as what they’re doing now to stay in touch.The show also gets into: Hsu’s thoughts on how to best manage change;The value of having a structure to support innovation at your credit unionThe challenge of staying ahead of members’ needs in an Amazon world; andHsu’s readiness to talk with other credit union leaders about building a Center for Innovation and change management.Links for this show:TranscriptCUES Emerge overview (with pitch show video toward the bottom of the page)More about Hsu’s business caseBecome a CUESolutions providerBecome a CUES Supplier member

CUES 123: Leadership and Learning Are Indispensable to Each Other—an Interview with Alex Hsu, CCM

Andy Saner lives by the idea that asking questions is important. In this episode of the CUES Podcast, Saner, senior vice president of product engineering and data services at CUES Supplier member Harland Clarke, a Vericast business, describes the value of applying such curiosity to help match members with appropriate credit union offerings during the moment when they’re opening an account. “When you’ve got employees that during the time of account opening ..., you’re asking questions, you’re learning more about that member’s needs and what they have to have,” he says in the show. “You understand … through those questions … insight into the member’s needs. Maybe they’re open to trying something different in managing their money or a different vehicle for payments and the like.”Being curious, asking good questions and applying the data you have on the new account opener has two main purposes, Saner explains. “It helps you match up better the products and services,” he says. “But it also deepens that relationship. That’s really what we’re all after. … It creates a deepening, long-lasting engagement that really becomes not only profitable for the credit union—let’s be honest, that’s part of it—but the other extent is that you really feel good about helping your members serve their needs.“It’s a noble profession, financial institutions, you know, in the work that we provide,” he continues. “You’re getting people into … their first home, (helping them) the first time that they buy a car, (providing) student college loans…. Maybe they’re taking a … trip for the first time and they’re needing just a little bit of help getting through that. It’s really kind of a unique opportunity where you meet people at the point they may need you most.”In the show, Saner also gets into:The role of credit union staff in helping members connect with appropriate products and servicesHow to re-engage with members after the moment of account openingThe balance of digital delivery with high-touch personal serviceLinks for this show:TranscriptGuest sponsor: CUES Supplier member Harland Clarke, a Vericast businessRecent related content from Harland ClarkeCommercial sponsor: CUES Supplier member PlansmithBecome a CUES Supplier memberBecome a CUESolutions providerBecome a sponsor of CUES content

CUES 122: How to Better Engage Members at the Critical Moment of Account Opening—An Interview With Andy Saner

In recent times, such high-profile sports figures as tennis player Naomi Osaka and gymnast Simone Biles have made headlines by announcing they were stepping back from competition to take care of themselves and their mental health. In this episode of the CUES Podcast, guest Dee Baker Amos applauds these actions. VP/marketing and communications for Dallas-Fort Worth Airport, Amos also points out that taking care of your mental health isn’t—and shouldn’t be—reserved for world-class athletes. “We all have to work on it, famous or not,” she says. “And I want to actually repeat that because I think that it&apos;s something that people have to hear: We all have to work on our mental well-being, famous or not.” In the show, which is hosted by Tony Covington, CUES VP/new markets and a former pro football player for the Tampa Bay Buccaneers and the Seattle Seahawks, Amos describes the importance of leaders sharing their own vulnerabilities since this helps create a safe space for employees. “Leaders must be willing to share and personalize their own journey and what they&apos;re going through,” says Amos, whose role includes communications to all airport employees as well as the members of her own team. “What I have found is when I am willing to be vulnerable and to share, ... they (team members) will always come back to me via text or individually and say, ‘Thank you. I&apos;m feeling the same way.’ And so, leaders must decide that it&apos;s not just about leading people for the work but it&apos;s leading people for the lives that they live.” The show also gets into:  How Amos developed new self-care routines during the pandemic—and continues to keep an open mind about what she might need going forward How perspective helps people get through life, told through an airplane analogy Links for this show: Transcript Selected mental health resources from CU Management magazine Video: Why Leaders Need to Manage Their Energy Video: Why Managers Need to Sometimes Say: &apos;Keep It Real; Tell Me How You Feel&apos; HR Answers: Why Leaders Need to Model Good Mental Health Practices The Value of Valuing Mental Health

CUES 121: Famous or Not, We All Have to Work on Mental Health--An Interview With Dee Baker Amos

A new ebook from Experian, Navigating in a New Era of Credit Risk Decisioning, suggests that one out of three consumers remain concerned about their finances at this stage of the pandemic, while at the same time, some individuals have more cash than they had when the pandemic started—and now they’re ready to spend. In this episode of the CUES Podcast, Harry Singh talks about how credit unions might best serve their members with loans and other products considering this “two-lane” economy. SVP/decisioning products and solutions for CUESolutions provider Experian, Singh says this situation may get even more pronounced as government stimulus aid ends. He says financial institutions need to consider three areas in their response:1.      Data and advanced analytics: Credit unions need to create a “comprehensive understanding” of members to be able to best serve them. Singh suggests they need to ask: “What are what are consumers doing differently? What are they adopting differently, such as in digital channels for lending? Are they are they shopping in different ways?”2.     Personalizing offers to members to boost their engagement: “People always think it’s about buying something new or obtaining credit to do something,” he explains. “We’re thinking about the needs of that consumer at point in time. And it may be they’re getting married and maybe they need to buy a car but it may be they’re in financial difficulty and they need a different type of offer or treatment that helps them through a difficult period, such as the pandemic. But as they come out the back end of it, you know, they become a very, they become a very profitable customer for the lender. So we’re really encouraging our clients to proactively engage their customers.”3.     Prepare for a wave of delinquency: Some consumers have been taking payment holidays and relying on government stimulus to help them get through the pandemic. As government aid ends, some people will be more challenged to keep up with their credit commitments, Singh points out.Singh emphasizes that helping members move forward financially will be more reliant on digital delivery than ever before simply because necessity drove more people than ever to use remote service options during the height of the pandemic.The show also gets into:What digital delivery needs to look like going forward Why using both traditional and nontraditional data—including synthetic data—is becoming importantThe roles of subscription services and cryptocurrencyThe difference between digital self-service and a true digital experienceWhat the next trend in consumer finance and payments might beLinks for this show:TranscriptCUESolutions provider ExperianNavigating in a New Era of Credit Risk DecisioningBecome a CUESolutions provider

CUES 120: Lending in a Two-Lane Economy—an Interview with Harry Singh

Pay increases found in the CUES Executive Compensation Survey this year range from 3% to 7%, depending on the position. Scott Hackworth says in this episode of the CUES Podcast that these figures are significant considering how much uncertainty is present in the overall economy right now. Even though no one knows what’s going to happen next, “this urge or this need to maintain consistency, especially amongst the top executives, that need has really risen and become more prominent than ever,” explains Hackworth, president of Industry Insights Inc., CUES’ partner in doing both the CUES Executive Compensation Survey and CUES Employee Salary Survey. “And because of that, there’s the increase in compensation.”Hackworth said that the pandemic has shown many employees and executives that working from home works for them, at least some of the time. He says credit unions that want to attract and keep top talent will need to consider flexible work in their offering compensation programs.“Some of those pieces, the wellness packages, along with the overall compensation will win in the long run,” he says in the show. “The power of the employee has become larger than it has been in a really long time. And definitely (consider) the shakeup that happened, where anytime there’s change, there’s new thoughts, there’s new developments. And so certainly having the employee now feel empowered, and being able to say, “Hey, you know what, I’ve been working from home five days a week. I think I can still work from home three days a week and get, you know, I’ll be in the office, can we make that work? Can we do this flexibility?” And those are all parts of that discussion that were they would have been laughed at five years ago.”CUES products and services manager, Laura Lynch, explains in the show how both CUES member and non-member credit unions can get access to customized compensation data.“Our credit unions can go online to pull reports,” Lynch says. “It’s a nice tool that allows you to cut your data as you want it—so, choosing your own peer group, whether that be by asset by region, things like that. “Any credit union that is a CUES Unlimited+ member gets complimentary access to the executive compensation reports as well as the employee compensation report, so they can go to the CUES website to find that. “Anyone who’s not a CUES Unlimited+ member can purchase access. And they can also do that via our website. And those subscriptions that are purchased are good for 12 months, and the credit unions can run as many reports as they need throughout that year.”The show also gets into:Adding a new diversity, equity and inclusion executive position to the surveyHow the two surveys are conductedThe value of using data to help make compensation decisionsLinks for this showTranscriptThank you to our sponsors, CUES Supplier member Plansmith and CUESolutions provider SRMCUES Executive Compensation SurveyCUES Employee Salary SurveyCUES membership

CUES 119: Credit Union Executive Pay Up Despite Economic Uncertainty-an Interview With Scott Hackworth, CPA, and Laura Lynch

Ancin Cooley, CIA, CISA, is originally from New Orleans and likes to think that he’s a decent gumbo cook. He even distributes his mom’s gumbo recipe to audience members when he speaks, which he will do at CUES’ Directors Conference in Florida this December.Principal of Synergy Credit Union Consulting, Chicago, Cooley says in this episode of the CUES Podcast that “one of the things that&apos;s unique about gumbo is that you combine a lot of different ingredients to make an amazing, flavorful dish.”Similarly, he notes, governance isn&apos;t just composed of any one ingredient. “It&apos;s made up of enterprise risk management,” Cooley explains. “It&apos;s made up of board relations. It&apos;s made up of interactions that happen between the board and the CEO. It&apos;s comprised of different ingredients. But when combined together and seasoned properly, it makes for an amazing credit union.”In this show, Cooley touches briefly on some top “ingredients” for a great dish of governance. These key considerations include the relationship between the board and supervisory committee, the value of having an enterprise view of risk, the difference between process optimization and strategy, the connection between good governance and strong executive compensation programs, and when and how mergers might fit in the context of a cooperative credit union movement.Knowing more about which of these ingredients would help your credit union improve the flavor of its governance gumbo? Listen to the whole show, sponsored by CUES Supplier member Plansmith, for more on each or download the show transcript to find timestamps for the start of particular sections.Links for this show:Show transcriptCUES Supplier member PlansmithAncin Cooley on LinkedInSynergy Credit Union ConsultingDirectors Conference, Dec. 5-8, 2021, Marco Island, FloridaOther CUES content by Ancin Cooley

CUES 118: Governance Gumbo—an Interview With Ancin Cooley, CIA, CISA

What do you say when you hear from another credit union interested in talking about a merger?Hopefully, you don’t say “Yeah, we’ll talk so long as our chair and our CEO are the surviving leaders after the merger.”To Deedee Myers, Ph.D., MSC, PCC, the fate of the chair and CEO is the wrong thing to think about first when considering joining up with another credit union.“We shouldn&apos;t be talking about who the survivor is, you know, the CEO or the board chair,” says Myers, CEO of CUESolutions provider DDJ Myers, Phoenix. “It should really be about the synergies between the two organizations to unlock parallel value for the membership. It really should be what is the membership going to see in terms of additional value, what&apos;s going to go on in the community, not just about the chair and the CEO. It has to be about how we&apos;re going to add more value.” Myers and her business partner, Peter Myers, share lots of ideas about mergers in this episode of the CUES Podcast, including:tips for paving the way to a merger conversation  what needs to be done after a merger to truly complete the process and enable the emerging new organization to truly take shape andwhat to be cautious about when considering a mergerThe two also discuss how they stay in forward-thinking mode, focused on future possibilities, both within DDJ Myers and with their credit union clients. “Just because we can&apos;t touch that future in this moment, because I don&apos;t understand it, doesn&apos;t mean that we couldn&apos;t, we shouldn&apos;t simmer in it, and really see what could come out of it,” Peter Myers says in the show.Be sure to tune in!Links for this show:Show transcriptCUESolutions provider DDJ MyersWhitepaper series: Credit Union Leaders Plan Post-Pandemic Merger & Acquisition Strategies CUES content from DDJ Myers:If You’re Ready to Be CEO, It Will Show, Plus A Lot More on CEO Succession for Both Boards and CandidatesThree Execution Elements Your Strategic Planning Likely OverlooksStart Your Board Assessment With a ‘BOP’How to Smash a CEO Interview 

CUES 117: Merge for the Right Reasons—an Interview with Deedee Myers, Ph.D., and Peter Myers

Emerging leaders have a great opportunity to impact organizational cultures in a way that supports the evolution to modern leadership, says Laurie Maddalena, MBA, CPCC, PHR, in this episode.“They bring in these expectations and these values that I think are more modern,” says Maddalena, a certified executive coach, leadership consultant and founder of CUES Supplier member Envision Excellence LLC in the Washington, D.C., area, which provides coaching to participants in the CUES Emerge program. “We need more of this modern type of leader” who is focused on getting results through people rather than on just getting results at all costs.During the show, Maddalena talks about how generational, technological and family trends are pushing the evolution of leadership. “The reason … I bring those up is because those impact our workplaces … our cultures and what people expect now compared to 25-30 years ago,” she says. “And that type of leader doesn&apos;t work anymore, the traditional command and control, more results-focused, very little empathy, check your personal life at the door. It doesn&apos;t resonate with today&apos;s generations and what people&apos;s expectations aren&apos;t work today.”Despite all the changes, Maddalena emphasizes the importance of leaders building trust with employees.“Trust is built over time,” she explains, “and it&apos;s the small actions we take or sometimes don&apos;t … that build trust and cohesion or break trust and cohesion down …. The first way you develop trust is to get to know each individual on your team and understand that they have their own goals, their own preferences and needs beyond the workplace, and get to know them as people and what&apos;s important to them and then learn to adjust your management style to be able to ignite ownership in them and bring out their best.“Another (way to build trust) is to model great leadership,” she continues. “If we&apos;re expecting our employees to follow through and be on time and serve our members exceptionally, we also need to be modeling that behavior for employees.“A huge way to build trust to make sure that we&apos;re developing them, coaching them, taking an interest in our employees, investing our time and energy in them,” she adds, noting that young people in particular want meaningful work.Maddalena says most organizations aren’t making the shift to modern leadership fast enough to be exceptional workplaces. In the show, she gives several suggestions for evolving your leadership, including letting go of promoting people into leadership based on technical ability rather than leadership ability and making sure to teach leaders how to lead.The show also gets into:How Maddalena  identified the key shift toward modern leadershipWhy some credit union employees were actually more satisfied with their work during the pandemic than beforeThe pandemic&apos;s silver lining for the evolution of leadershipLinks for this show:Laurie Maddalena on LinkedInEnvision Excellence LLCCUES EmergeMaddalena’s  video on kind leadership and podcast on how modern leaders must be facilitators, not fixersShow transcript

CUES 116: The Evolution to Modern Leadership—an Interview with Laurie Maddalena, MBA, CPCC, PHR

When you can help members avoid being scammed—or at least help them overcome it, they’ll be grateful for your actions in the long run.In this episode of the CUES Podcast, Andy Shank talks about things credit unions need to keep in mind when it comes to preventing and mitigating fraud. Shank is VP/fraud and risk management for CUES Supplier member Harland Clarke, San Antonio, Texas, the sponsor of this show.“A lot of folks in the banking world kind of treat fraud as this, you know, scary little animal that we just try to shut in the closet and not talk about,” Shank says in the episode. “But if you don’t talk about it, and you don’t approach it, and you don’t, you know, really attack it head-on, you allow it to win.”In the show, Shank spells out his definition of payments fraud: “anytime a bad guy electronically finds a way to move funds from point A to point B without authorization and without setting foot in a branch.” This could include contact center fraud, social engineering, wire transfer fraud, account takeovers and card skimming. “Basically, it’s the bank robbery of the 21st century,” he says.Shank says everyone loses when someone gets scammed—the financial institution, the member, even society.  A former task force officer with the FBI and state police detective, he talks about his passion for stopping bad guys from stealing other people’s money. To him, helping a member avoid a fraud attempt or overcome being scammed is a true act of service.“There are surveys and studies out there that say, … digital detection of fraud on accounts is one of the bigger factors for acquisition and retention of customers,” he explains in the show. “So, they may not appreciate it at the moment when you’ve told them that they’re being defrauded—and that the money may be gone forever. But at the end of the day, they will appreciate or at least they should appreciate the fact that their credit union was looking out for them and that they use they got that kind of personal attention to hopefully stop them from losing any more money.”The show also gets into:Shank’s background in criminal justice and law enforcement as it applies to his work today for Harland ClarkeThe value of cooperation among law enforcement agencies and among credit unions in the fight against fraudThe impact of the pandemic and remote work on fraudThe financial institutions most targeted by fraudstersShank’s most eye-opening experience while working to fight fraudLinks for this show: CUES Supplier member Harland ClarkeCU Management magazine feature about collaboration as an aid to fighting fraudTranscript of this show

CUES 115: Fraud Prevention Is a Member Service—an Interview With Andy Shank

Michael Bach lives in Toronto, a  diverse city, which has as one of its mottos, “Diversity is our strength.”Bach, CEO of the Canadian Centre for Diversity and Inclusion, added onto the city’s slogan. He made it: “If diversity is our strength, inclusion is our superpower” to illustrate that it’s not enough to have diversity.“We have to create spaces where people can not only exist but can be welcomed,” he says in Episode 114 of the CUES Podcast. “They won&apos;t face racism, violence, sexism, homophobia, etc.—and I think that … to make sure that our spaces are welcoming, we need inclusion as our superpower. It&apos;s our special strength, this thing we can do that will get the most out of our people, that will create higher levels of engagement and productivity. It is the secret sauce, if you will, on top of diversity … .”Bach defines “diversity” as being about difference and “inclusion” as being about creating a space where differences are welcome. Diversity “is about all of the things that make a person unique,” he says. “We tend to historically look at underrepresented or marginalized groups: women, people of color, people with disabilities, Indigenous people or Native Americans, LGBT people. But the truth is, the word diversity is about difference of all kinds. And that includes straightway, able-bodied men, not to say that they&apos;re marginalized or underrepresented. That&apos;s not the point. It is to say that they are different from me. As a gay man who lives with a disability, they are different from me. And so, diversity is about all the things that make you different.”In contrast, inclusion is about creating a place “where people can come to work or go to a community center or a school or a credit union and be welcomed and be embraced for who they are,” with all of their differences, from everyone else.Bach cites talent as the No. 1 reason organizations need to focus on diversity and inclusion. “If you look at the numbers, and I&apos;m going to do these off the top of my head … people of color in the United States make up roughly about 40-42% of the available workforce, and in Canada, it&apos;s about 23%,” he explains. “If you look at the number of women who have graduated with undergraduate degrees, it&apos;s now 60% of undergraduate degrees are taken home by women … . If you just look at the sheer numbers, you cannot tell me that if you look at an executive team that is predominantly or exclusively straight, white, able-bodied men, that you actually have the best and the brightest. You don&apos;t. Statistically, you don&apos;t because you don&apos;t have a representative amount of talent. So, the No. 1 reason (for diversity and inclusion) is about talent. It&apos;s about making sure that you are in fact hiring and promoting the best and the brightest.”The show also gets into:Bach’s other top reasons for focusing on diversity and inclusionThe services provided by the Canadian Centre for Diversity and InclusionAnswering the question of CUES member Russ Siemens,  director at Innovation Credit Union in Saskatchewan about systemic racismLinksCanadian Centre for Diversity and InclusionBirds of All Feathers Doing Diversity and Inclusion Right by Michael BachDiversity, Equity & Inclusion Cornell Certificate ProgramCUES Advanced Management Program From Cornell UniversityTranscript of this show

CUES 114: If Diversity Is Our Strength, Inclusion Is Our Superpower—an Interview With Michael Bach

The U.S. economy may soon be poised for takeoff, according to Dan Berger, our guest on episode 113 of the CUES Podcast.The efforts of credit unions to serve members at a time of need will continue to be a key factor, says Berger, president/CEO of the National Association of Federally-Insured Credit Unions, Washington, D.C.“I think that we got some more stuff to get through in 2021 in regards to COVID and cranking up the economy and getting more people and to be financially inclusive with the economy,” he explains. “I equate it to laying the runway in 2021 so you can really take off in 2022. But I&apos;m so pleased with this industry, in the CEOs I speak to across the country, in the jobs that they&apos;re doing. I mean, it&apos;s really been an incredible effort across the board, and I don&apos;t see it stopping.“The stories I hear from across the country with, you know, skip-a-pay programs and workout loans and things along those lines,” he continues, “ … that’s the difference between us and the big banks. When people were helping folks even before Congress said they had to do it …. and, in terms of forbearance, this industry has really responded to their members as well as their communities. “Credit unions have come up with very innovative programs to help their members through this,” he says. “And that&apos;s where, in the long run, people are going to remember that institution that was there that did a workout loan for them or did some loan modifications for them. They&apos;re going to remember that. You can&apos;t buy a full-page ad like when Wells Fargo does to try to re-establish trust. You have to build that over time. "And that&apos;s what credit unions have," he underscores. "They have this incredible amount of trust, and it&apos;s even built upon even further through 2020. And you&apos;ll see it throughout 2021 as well.”Berger also says in the show that continued vaccine distribution and targeted stimulus to people who need it will play key roles in getting the economy back on track.The show also gets into:The unemployment situation in 2020, now and going forwardThe importance of taking care of employee so they, in turn, take care of membersThe likely impact of remote work as the world reopensThe increasingly important role of community development financial institutionsHow increased liquidity from deposits of federal stimulus program funds and increased savings due to the pandemic might impact credit union operations and financialsLinks for this showB. Dan Berger on LinkedInNational Association of Federally-Insured Credit UnionsShow transcriptTwo other recent episodes about the economy: 111 with Steve Rick of CUNA Mutual Group and 112 with Bryan Yu of Central 1High Performing Boards Digital SeriesStrategy and Digital Marketing Cornell Certificate Program

CUES 113: Lay the Runway in 2021 for Economic Takeoff in 2022—an Interview With Dan Berger

Governments around the world have spent more than $14 trillion to try to offset the economic damage of the pandemic, says Bryan Yu, in the latest episode of the CUES Podcast.“In Canada, I think we moved pretty quick,” says Yu, director and chief economist with Central 1 in Vancouver, British Columbia, which leverages its scale, strength and expertise to power progress for more than 250 credit unions and other financial institutions. “We had seen the implementation of the Canadian Emergency Response Benefit, which was largely providing funds for households who were negatively impacted by the pandemic and lost jobs, about $500 per week. So, a significant amount.“We also, of course, see the wage subsidy programs in Canada as well,” he adds in the show.  “So employers who lost substantial amounts of business were able to tap the subsidy in order to keep individuals employed.”He estimates that the Canadian government will now have to deal with a $380 billion deficit after the outlay. “But we&apos;re also, of course, recognizing that without these measures, we could be in a much worse state at this point,” he says. “We&apos;d have the pandemic plus we&apos;d have a lot of individuals without income, and that would have led to more foreclosures, bankruptcies, etc.”Yu also thinks the rollout of the COVID-19 vaccine in Canada will have a significant impact on the economic recovery.“The vaccine will in fact, provide a huge boost for Canada. One of the big differences I think, between the US and Canada right now is that rate of deployment,” he explains. In Canada, “only about 3% of our population has been vaccinated .. and that&apos;s really a reflection partly of the countries which are making the vaccines. The US and the UK, of course, are producers. So they are able to deploy much quicker. “But as those vaccines do roll out, I do expect to see that that will finally be able to reopen some of our borders more towards tourism. People will be more willing to go into into more restaurants, really moving back that service-oriented economy back to full capacity. “So that&apos;s my hope at this point,” he says. “I think that&apos;s going to be driving our move back to a pre-pandemic type of levels within the next two years. I would think there is still going to be a lot of challenges … going forward.”The show also gets into:Unemployment trends in CanadaWhat shifts caused by the pandemic will continue into the futureIdeas managing the coronavirus mutations that have been identifiedThe strengths credit unions have that will help them weather the pandemicThe question of inflation in these timesLinks for this showCentral 1Bryan Yu, director and chief economist at Central 1Episode 111 with guest Steve Rick, director and chief economist at CUNA Mutual GroupHigh Performing Board Digital SeriesStrategy and Digital Marketing Cornell Certificate Program (all online)Episode 112 transcript

CUES 112: Government Pandemic Measures and Vaccine Rollout Key Factors in Canadian Economy 2021—an Interview With Bryan Yu

As is always true with the economy, there is both good and bad news at once.On episode 111 of the CUES Podcast, Steve Rick says some of the good news is that the jobless rate has dropped back to a rate of 6.3%, after spiking to 14.7% at the height of the pandemic shutdown last year.Director and chief economist at CUESolutions Platinum provider for executive benefits CUNA Mutual Group, Madison, Wisconsin, Rick says economists believe that 4.5% is the “long-run natural employment rate” in the U.S. He is forecasting reaching that rate again by the end of 2022.“We do believe we will reach herd immunity, probably by the fourth quarter of this year … where … 75 to 80% of our population has been vaccinated and is … immune,” he says. “So, we&apos;re hoping by the end of this year to have the unemployment rate down to 5.5%.”Some of the bad news Rick cites includes the hard hit taken by retail businesses during the government-mandated shutdowns early in 2020. Many stores, restaurants and movie theaters have been severely disrupted or even permanently shut down in what Rick calls a “retail apocalypse.” While those that closed may never reopen, there is a glimmer of hope here, too. In the January retail sales report, Rick says, “We saw sales pick up 5.3% compared to December. Now, that&apos;s a huge jump. … if we can compare this January of 2021 … to January 2020 … before the pandemic, we&apos;re up 7.4%. Now, that is a huge increase, 7.4% in spending. … So we&apos;re actually seeing a nice recovery already.”Rick projects a jump in gross domestic product this year of about 4.5 percentage points. “So we&apos;re going to be making 4.5% more stuff, if you will, then we did last year,” he says. “And last year … we dropped 3.5% in the production of goods and services. So, a nice recovery for 2021. “… if we get another $1,400 stimulus check sometime this spring, you know, if President Biden gets his 1.9 trillion stimulus,” he adds, “we could see a really strong economy going into the second half of this year.”The show also gets into:More on the potential impact of any additional federal stimulus checksIdeas about retraining workers to help counteract unemploymentThe huge surge in member depositsThe answer to a question from CUES member Cynthia Ryan, EVP/COO of Connect Credit Union, Fort Lauderdale, Florida, about how to handle the boost in liquidity from the increase in member depositsThe mortgage refi boom and how many loans to sell on the secondary market in these timesThe potential impact of any forgiveness of federal student loan debtThe importance of cost control and managing net interest margin right nowLinks for this show:Email Steve RickCUESolutions Platinum provider for executive benefits CUNA Mutual Group, Madison, WisconsinCU Management magazine’s monthly CFO Focus columnsCUES Advanced Management Program from Cornell UniversityPartial transcript for Episode 111

CUES 111: A ‘Nice Recovery’ Forecasted in 2021 Despite ‘Retail Apocalypse’—an Interview with Steve Rick

“For some reason, people just love pineapples,” says Bolun Li in this episode of the CUES Podcast. As a result, pineapple emojis are the points in Zogo, the gamified smartphone app that Li co-launched in 2019 to better teach personal finance to members of Gen Z.CEO of CUES Supplier member Zogo Finance, the sponsor of this show, Li says that pineapples tested extremely well during the app’s development.“We tested so many different emojis for the points,” he explains. “We have no idea why people love pineapples, but they love pineapples. So, we’re like, we’re going to use pineapples” for the point system.A 2019 graduate of Duke University, Li first learned about personal finance through a high school program that was delivered by a bank. He describes that offering as “boring” and “inadequate.” In contrast, the app he and his co-founders (all members of Gen Z themselves) have launched aims to teach members of Gen Z about personal finance in a way they find fun. Zogo offers more than 300 bite-sized learning modules and awards pineapple points for module completion that can be redeemed for gift cards or deposits in accounts at partnering financial institutions—such as credit unions.During the show, Li tells the story of his introduction to credit unions. Since then, Zogo has partnered with more than 75 CUs to help them attract Gen Zers—members CUs need to connect with now to ensure a bright tomorrow.When users first log into Zogo, they are invited to put in a code from a financial institution. Once they enter a CU&apos;s code, the app becomes  co-branded with the CU’s colors and logo. In addition, a CU has access to a dashboard of information about app users. Partnering CUs can also create custom  learning modules about their product offerings, community commitment or whatever topics they wish.This year Zogo is rolling out a unique approach to offering financial education in schools. It reaches out to students, not teachers, to be ambassadors for the app and the CU partner. “These students will be going out there with the Zogo app and spreading the credit union’s name within their generation, their friends," he says. Young people are much more likely to use something “when it’s recommended by their friends than if it’s being enforced by their teachers. We want all the Gen Zers to think personal finance is very fun and their local credit union is very cool.”The show also gets into:how pleased Li was to learn that Zogo appeals to people of all ages, not just Gen Zersthe national awards Zogo has wonthe 24-hour process for a CU to sign up for Zogowhat Li thinks CUs need to have in their strategic plans to better attract younger memberswhat Li learned from surveying Duke students about CUswhat board members need to know about Gen Z and the futureLi’s rallying cry for Financial Literacy Month in AprilLinks for this show:CUES Supplier member ZogoTwo CUES articles by Zogo: here and hereMore on generational strategy and marketing

CUES 110: Personal Finance App’s ‘Pineapple Points’ Connect Credit Unions to Gen Z—an Interview With Bolun Li

Welcome to the CUES Podcast! Here we’ll talk to industry and cross-industry experts to gain perspective on trends and topics relevant to you and your role at your credit union. Not a CUES member? Learn more and sign up at cues.org/membership.

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