LEVERAGE Monthly Newsletter

LEVERAGE is excited to announce the next installment of its Learning with LEVERAGE webinar series, a complimentary educational platform designed to keep credit unions informed and prepared for the most critical topics in the financial services industry. These webinars cover a range of essential topics, including technology, operations, risk management, employee relations, and more.

Mark your calendars for Tuesday, October 8, at 11:00 a.m. ET, when LEVERAGE will focus on one of the most pressing issues for credit unions: Vendor Management - Is Your Vendor Management Program Ready?

In this webinar, Kelli Silvernale, Vice President of CUVM, and Brooke Collins, Manager of Sales and Service at CUVM, will guide you through how your vendors are navigating their world: Are you prepared if you vendors do business out of country?

Make sure to join LEVERAGE every second and fourth Tuesday of the month for more insights on trending topics in financial services, from expense reduction and member relations to liquidity and lending.

For more information, contact consult@myleverage.com. For a look at our past webinars, click here.

Register Today!

As we move into the penultimate month of hurricane season, it’s essential to ensure your credit union is fully prepared for potential disasters. RecoveryPro is here to help you secure your operations, recover critical data, and maintain peace of mind during catastrophic events.

Evaluate and Prioritize:
Start by identifying and prioritizing your essential business processes. Assess risks and impacts across a range of potential events to uncover vulnerabilities. This step is crucial in building a resilient business continuity plan.

Develop and Prepare:
Create detailed plans that enable your team to manage incidents effectively. Preparation is the key to a swift and successful recovery when disaster strikes. Our comprehensive planning resources ensure your credit union is equipped to respond efficiently and effectively.

Test and Update:
Keep your business continuity plans current with regular testing, content reviews, and updates. Ensuring that your team is ready, and your plans are up to date maximizes their effectiveness when you need them most.

Safeguard Your Credit Union:
RecoveryPro offers a complete solution designed for proactive institutions like yours. With our expert guidance and resources, you can confidently manage your disaster preparedness and protection.

With over 20 years of business continuity experience and guidance from the Federal Financial Institutions Examination Council (FFIEC), our program is fully vetted by multiple state and NCUA auditors. Ensure your credit union is ready for hurricane season and any other potential disasters with RecoveryPro—your trusted partner in business continuity and disaster recovery.

Click here to learn more about what RecoveryPro can do for you and don’t forget to contact Compliance@lscu.coop to get started.

Home Improvement Loans
LendKey's Home Improvement Loans program offers lenders a unique opportunity to deploy capital and generate strong returns through a nationwide network of vetted contractors. Lenders can either participate or originate, providing flexibility depending on desired risk and appetite. By matching creditworthy borrowers with participating lenders at the point of sale, LendKey's innovative platform creates a transparent, efficient, and low-cost borrowing option while enabling lenders to diversify their portfolios and optimize capital deployment.

Student Loan Refinancing
LendKey's Student Loan Refinance program empowers lenders to provide relief to borrowers burdened by high student loan payments, tapping into the $1.7 trillion student debt market. By offering refinancing solutions, lenders can attract younger members and foster long-term relationships, with 63% of borrowers adding products to the financial institution holding the loan. Lenders enjoy flexible options, risk mitigation, compliance support, and enhanced lending capabilities, enabling them to boost returns while addressing the student debt crisis across multiple generations.

Private Student Loans
LendKey's private student loan program empowers credit unions to attract and retain younger members by offering a crucial financial product in a rapidly growing $130 billion market. Private student loans provide credit unions with a unique opportunity to establish long-term relationships with borrowers, as 66% of these customers add more products and 40% eventually take out mortgages or home equity loans. With private student loans, credit unions can diversify their asset base, appeal to a younger demographic, and potentially generate significant additional revenue, with a 100-borrower pool adding an estimated $650,000 to the bottom line.

Partner with LEVERAGE and LendKey to unlock new lending opportunities, participate in long-term products with solid returns and build stickier relationships with your members. Visit https://myleverage.com/solutions/lendkey.php or contact a LEVERAGE Business Development Consultant at consult@myleverage.com.

In today’s digital landscape, the security of financial institutions is more crucial than ever. Credit unions, as vital components of the financial ecosystem, must prioritize cybersecurity to safeguard their members’ assets and trust. Implementing best practices in cybersecurity not only protects sensitive data but also fortifies the institution’s reputation and operational stability. Here’s why adhering to these practices is essential for credit unions.

The Growing Cyber Threat Landscape
Credit unions are attractive targets for cybercriminals due to their financial resources and the sensitive data they handle. Cyber threats, including phishing attacks, ransomware, and data breaches, have become increasingly sophisticated and frequent. According to a 2023 report by the Identity Theft Resource Center, the financial sector has seen a substantial rise in cyber incidents. For credit unions, which often operate with fewer resources than large banks, the potential impact of a cyber-attack can be particularly devastating.

Protecting Member Data
Credit unions handle a wealth of personal and financial information, including Social Security numbers, account details, and transaction histories. A breach of this data can lead to identity theft, financial loss, and severe distress for members. Implementing robust cybersecurity measures, such as encryption and secure access controls, is essential to protect this sensitive information. Regularly updating security protocols and ensuring compliance with industry standards can significantly reduce the risk of unauthorized access.

Maintaining Regulatory Compliance
Credit unions are subject to various regulatory requirements designed to protect consumer information and ensure financial stability. Regulations such as the Gramm-Leach-Bliley Act (GLBA) and the Payment Card Industry Data Security Standard (PCI DSS) mandate specific cybersecurity practices. Non-compliance can result in hefty fines and legal consequences. By following best practices, credit unions not only adhere to these regulations but also demonstrate their commitment to safeguarding their members’ interests.

Preserving Institutional Integrity
The reputation of a credit union is closely tied to the trust of its members. A successful cyber-attack can severely damage this trust, leading to a loss of membership and business. Cybersecurity breaches can also lead to negative media coverage, further harming the institution's image. By proactively addressing cybersecurity, credit unions protect their integrity and reinforce their members’ confidence in their ability to manage their financial matters securely.

Ensuring Operational Continuity
Cyber incidents can disrupt operations, leading to downtime, loss of productivity, and financial losses. Ransomware attacks, for instance, can lock access to critical systems and data, halting daily operations. Implementing best practices such as regular backups, incident response planning, and comprehensive disaster recovery strategies ensures that credit unions can quickly recover from cyber disruptions and maintain continuous service to their members.

Educating and Training Staff
Employees are often the first line of defense against cyber threats. Regular training on recognizing phishing attempts, securing passwords, and following security protocols is vital. A well-informed staff can significantly reduce the likelihood of successful attacks and mitigate the potential impact of security breaches. Ongoing education helps employees stay current with evolving threats and reinforces a culture of security within the organization.

Investing in Advanced Security Technologies
The rapidly evolving nature of cyber threats necessitates the use of advanced security technologies. Firewalls, intrusion detection systems, and multi-factor authentication (MFA) are critical components of a robust cybersecurity framework. Regular updates and patches to software and systems help protect against vulnerabilities. Credit unions must invest in these technologies to stay ahead of emerging threats and ensure their defenses remain effective.

Collaborating with Cybersecurity Experts
For many credit unions, especially smaller ones with limited IT resources, partnering with cybersecurity experts can be invaluable. Managed security service providers (MSSPs) offer specialized knowledge and tools that may not be feasible for in-house teams to maintain. These experts can provide continuous monitoring, threat intelligence, and incident response services, enhancing the overall security posture of the credit union.

In an era where cyber threats are increasingly prevalent and sophisticated, credit unions must take cybersecurity seriously. Adhering to best practices in cybersecurity is not just a regulatory requirement but a fundamental responsibility to protect members’ data, maintain operational stability, and preserve institutional trust. By investing in advanced technologies, training staff, and collaborating with experts, credit unions can fortify their defenses against cyber threats and ensure the safety and security of their members' financial well-being. The commitment to cybersecurity best practices is not just a protective measure—it’s a strategic imperative for sustaining a secure and trustworthy financial environment

Partner with LEVERAGE and CUVM to help your credit union get ahead of cybersecurity concerns. Visit https://cuvm.org/ or contact a LEVERAGE Business Development Consultant at consult@myleverage.com.

By: Kevin Cummer, Director, Life Products for TruStage

Life insurance is a crucial aspect of financial planning, providing a safety net for individuals and their loved ones. In recent years, the midmarket segment has gained prominence in the life insurance industry, showcasing its scalability potential. The mid-market consumer refers to households or individuals who fall into the $50,000 to $200,000 income bracket. These consumers are usually transitioning through key life events such as buying a home, getting married or having children.

Life Insurance Demand is at an All-Time High
In the wake of the pandemic, interest in life insurance is at an all-time high, with 39% of consumers intending to buy life insurance in the next year. However, consumers still lack a general understanding of what life insurance is, how much it costs and how it could help provide them financial security.

According to a recent article by the Life Insurance Marketing and Research Association (LIMRA), 52% of American adults have life insurance, highlighting a large gap in unprotected consumers.

Additionally, 41% of both insured and uninsured adults believe they could use more coverage. When we look at the differences between generations, there’s also a large gap that needs to be filled, particularly for younger consumers.

• • 40% of Gen Z adults own life insurance.
• • 44% of Gen Z adults have reported they intend to buy life insurance in 2024.
• • 48% of Millennial Americans own life insurance.
• • 50% of Millennials plan to purchase life insurance coverage in 2024.

This gap in coverage for younger generations presents a great opportunity for providers to first educate consumers about the importance of life insurance and second help them find the right coverage for them.

Why More Americans Don’t Have Life Insurance
The top reason Americans don't have life insurance is due to a lack of understanding about how much or what type of coverage is needed. Fewer than one in three Gen Z and Millennial parents express a strong sense of confidence regarding their understanding of life insurance. Additionally, 40% of Gen Z parents and 29% of Millennial parents report abstaining from purchasing coverage due to uncertainties regarding the required coverage amount and the specific type of policy to choose.

The biggest misconception behind life insurance is that it’s expensive. Many people believe it’s a luxury to have, and not something that could be afforded by more.

An additional factor that plays into the lack of coverage are economic influences creating turbulent financial conditions for American adults. When households have financial strain, expenses will be cut down, and life insurance is not immune to this. Households with a lower income are less likely to buy a life insurance policy. A broker with access to multiple companies may be able to find affordable coverage for consumers with a lower budget.

How Providers Can Engage with Mid-Market Consumers
As we’ve learned, there is a large gap in young adults' coverage due to a lack of education and concerns about affordability. Providers wanting to market to these younger consumers should prioritize educating young adults first. To connect and engage with these consumers, you should understand where they spend their time and how they prefer to learn about new products they’re interested in purchasing.

Gen Z and Millennials are more likely to be influenced by social media and online reviews when choosing a life insurance provider. They tend to be savvy consumers who will take the time to research companies and look for vendors offering differentiators that meet their needs.

The mid-market consumer segment in life insurance presents a huge opportunity for providers. The ability to provide accessible, customized solutions to a diverse clientele sets the stage for sustained growth in the industry. By addressing the unique needs of the mid-market segment and leveraging technological innovations, insurers can build a robust foundation for the future, helping individuals across various income levels improve their financial well-being through life insurance.