LEVERAGE Monthly Newsletter

Credit Union Loan Source (CULS) and the Southeastern Credit Union Foundation (SECUF) are thrilled to extend a warm invitation to all golf enthusiasts and community champions! Mark your calendars for the third annual Charity Golf Invitational, proudly sponsored by CULS, on Tuesday, May 21, at Manor Golf & Country Club in Milton, Georgia.

Swing into Action for a Worthy Cause

Prepare for a day of swinging clubs, making connections, and driving positive change in our communities. SECUF’s Charity Golf Invitational promises an exhilarating round of golf and an opportunity to contribute to SECUF’s critical programs, which empower credit union professionals and foster community development.

Get into the Swing of Things with Prelude to Par

But wait, there's more! Kickstart the excitement with our Prelude to Par: Evening Gathering on Monday, May 20. Hosted at the luxurious Atlanta Marriott Alpharetta, this evening reception sets the stage for the golf tournament with a concise legislative update, ensuring you know about the latest industry developments. Indulge in a delightful array of light snacks and enjoy complimentary drinks as you mingle with fellow participants and gear up for the big day ahead. Keep an eye out for forthcoming details on lodging options conveniently located near the tournament venue.

Join the Movement – Register Today!

This is your chance to make a meaningful impact while enjoying a day of camaraderie and friendly competition. Register now for the Third Annual CULS Charity Golf Invitational and stand alongside SECUF in its mission to uplift credit unions and their members. Your participation fuels SECUF’s vital initiatives, driving positive change and bolstering the credit union community's future.

Event Schedule:

May 20 - 7:00 p.m.: Prelude to Par: Evening Reception at the Atlanta Marriott Alpharetta. Join us for a legislative update, light refreshments, and complimentary drinks.

May 21 - 8:30 a.m.: Registration and Breakfast

May 21 - 10:00 a.m.: Shotgun Start

May 21 - 2:30 p.m.: Awards Reception

Learn More and Take Action!

For more information about SECUF and how you can get involved, visit www.lscu.coop/foundation.

Seize the opportunity to make a difference – join us at the Third Annual CULS Charity Golf Invitational and tee off for a cause worth swinging for!

Register Now!

In today's digital landscape, security is paramount. With cyber threats evolving at an alarming rate, credit unions face increasing pressure to safeguard their internal IT networks while ensuring compliance and protecting member data. That's where we come in – your dedicated security-focused managed IT service provider.

Why Managed IT Matters More Than Ever

Your members rely on you to keep their financial information safe and secure. As your trusted IT partner, we understand our critical role in helping you meet this expectation. Our comprehensively managed IT services are designed to alleviate the burden of maintaining, monitoring, and securing your IT infrastructure, allowing you to focus on what matters most – serving your members.

The Security Essentials You Need

Our managed IT services include a robust suite of security essentials to fortify your defenses and mitigate risks. From advanced malware detection and prevention to email defense spam filtering, our security solutions provide a solid foundation to protect your members and bottom line.

Proactive Prevention, Rapid Resolution

With our managed IT services and security essentials in place, you're better equipped to prevent issues before they arise. In the event of an incident, rest assured that our expert team is on hand 24/7 year-round to swiftly address any issues and get you back up and running with minimal disruption.

Comprehensive Care Tailored to Your Needs

Our commitment to your success extends beyond security. With our overall care package, you'll benefit from periodic reviews of strategic plans, monthly reports, 24x7 help desk support, and unlimited phone support. Plus, our server, network, workstation, and security care plans are tailored to meet the unique needs of credit unions like yours.

Your Partner in Success

At every step of the way, we're here to support your mission to serve your members and safeguard their financial well-being. With our managed IT services and security essentials, you can confidently face the challenges of today's digital landscape, knowing that you have a trusted partner by your side.

Visit myleverage.com/solutions/dynamic-quest.php or contact a LEVERAGE Business Development Consultant at consult@myleverage.com to learn more about our managed IT services and how we can support your credit union's security needs.

ODP Business Solutions (formerly Office Depot Business Solutions) is designed to revolutionize savings for credit unions of all sizes. Our National Buying Program leverages collaborative buying power to deliver unparalleled discounts and benefits to credit unions nationwide.

Unlock Incredible Savings

By joining forces with ODP Business Solutions and LEVERAGE, credit unions can enjoy substantial savings on a wide range of essential products and services:

• • Office Supplies: Save up to 38% off
• • Cleaning, Facility, and Breakroom Items: Enjoy discounts of up to 24% off
• • Office Furniture: Save up to 20% off
• • Private Brand Ink/Toner: Save 20% or more
• • Technology Solutions: Take advantage of a 20% discount

Convenient Ordering Options

Ordering from ODP Business Solutions and LEVERAGE is a breeze, whether you prefer online or phone ordering. Enjoy the flexibility of delivery straight to your door or the convenience of in-store pickup.

Key Program Features

Our credit union program isn't just about savings – it's about providing a comprehensive suite of benefits tailored to meet your needs:

• • Extension of Savings to Credit Union Members: Share the benefits with your members and enhance their experience.
• • Custom Core Products: Select from a curated list of products with even deeper discounts.
• • Competitive Bidding: Credit unions with over 100 employees can compete to secure the best deals.
• • Mobile Optimization: Easily place, hold, and release branch orders on the go.
• • Live Fee Dashboard: Gain valuable insights into product spending and savings at your fingertips.
• • Subscription Offerings: Simplify your ordering process with weekly, bi-weekly, or monthly automated ordering subscriptions.

Start Saving Today!

Take advantage of this incredible opportunity to maximize savings for your credit union. Join the ODP Business Solutions National Buying Program and unlock exclusive discounts and benefits for your organization and its members.

For more information or to enroll in the program, visit myleverage.com/solutions/odp.php or contact a LEVERAGE Business Development Consultant at consult@myleverage.com.

By Marcus King, CPA, Vice President of Credit Union Audit & Compliance Group

The global landscape transformed with the advent of COVID-19, impacting various sectors, including auditing. In the realm of audits, the traditional on-site approach has evolved into a more streamlined and efficient process – remote auditing. This paradigm shift is not merely a temporary response to the pandemic; it’s a lasting transformation. Here are ten compelling reasons why remote auditing is not just a trend but a permanent fixture in the auditing landscape:

1. 1. Cost Efficiency for Credit Unions: Remote audits translate to cost savings for credit unions. Eliminating travel, lodging, and meal expenses for auditors results in significant financial benefits. These savings can make a substantial difference in the operational budgets of smaller credit unions.
2. 2. Access to Global Audit Firms: The virtual nature of remote audits allows credit unions to collaborate with audit firms anywhere. This flexibility empowers credit unions to seek the most cost-effective and experienced auditing services, potentially saving thousands compared to local firms. In the last weeks of 2023, a credit union situated over 1,000 miles away from CUACG engaged our services, seeking the timely completion of their Automated Clearing House (ACH) audit before the year's close. CUACG successfully fulfilled the audit requirements, ensuring the credit union’s adherence to ACH regulations.
3. 3. Operational Cost Savings for Audit Firms: By adopting entirely virtual audits, audit firms eliminate the need for physical office spaces, reducing overhead costs. Some firms, no longer burdened by travel expenses, can pass these savings to credit unions. The COVID pandemic showed that audit firms can streamline operations, reducing costs while maintaining revenue.
4. 4. Faster Audit Completion: Remote audits expedite the auditing process. Auditors provide specific needs lists to credit unions, enabling a precise focus on required documentation. The transition to electronic document review accelerates the process and minimizes unnecessary information, enhancing efficiency.
5. 5. Multitasking for Auditors: Remote work enables auditors to handle multiple audits simultaneously. This flexibility allows auditors to manage tasks, increasing productivity and revenue efficiency. Seamlessly shifting between audits in a virtual environment enhances overall operational efficiency.
6. 6. Reduced Onsite Disturbances: Working remotely reduces the physical presence of auditors in credit union offices. Communication occurs primarily through emails, giving credit union staff the time to consider responses thoroughly. This alleviates stress for CEOs and ensures a more measured approach to audit interactions.
7. 7. Government Regulators Embrace Remote Work: In line with auditors, government examiners have embraced remote work. The cost-saving benefits of remote operations for regulators suggest a sustained shift towards remote examination practices, further reinforcing the permanence of remote auditing.
8. 8. Digital Document Management for Credit Unions: The digital era necessitates a shift towards document digitization. Remote auditing encourages credit unions to scan and upload documents, minimizing physical paperwork. This transition supports cost savings and efficient audits and contributes to better record retention.
9. 9. Enhanced Work-Life Balance: The transition to remote auditing has drastically improved work-life balance for auditors. Reduced travel has allowed for more family time, promoting a healthier work-life synergy. This shift has personal benefits, exemplified by the increased time spent with family.
10. 10. Access to Top Talent Nationwide: Remote auditing enables audit firms to tap into a broader talent pool across the United States. Geographic constraints are no longer a limiting factor, allowing firms to hire the best-suited professionals for their teams. Remote training tools further facilitate the onboarding process from any location.

Embrace the future of auditing with remote solutions - a cost-effective, efficient, and flexible approach that benefits credit unions and audit firms alike.

Click here to contact CUACG today to experience the advantages of a seamlessly integrated remote audit process!

By Steve Heusuk, Director of Competitive and Market Intelligence, and Adam Leslie, Director of Strategic and Business Planning at TruStage

As we enter the new year, the industry is met with an elevated volume of the latest developments and trends accelerating at breathtaking speeds. Credit unions navigate a landscape shaped by a liquidity crunch, economic challenges, changing consumer expectations, and growing fraud and cybersecurity risks. As we embark on the new year, the urgency to formulate strategies that align with overarching annual plans has never been more critical.

Strategic Frameworks for the New Year

To guide credit union senior leaders through this dynamic landscape, we advocate the integration of three strategic frameworks tailored for the challenges and opportunities that await in the coming year.

1. 1. Political, economic, social, technological, and industry forces analysis (PESTI)
2. 2. Strengths, weaknesses, opportunities, and threats (SWOT) matrix
3. 3. Change agenda

Below, we share how these three frameworks may be used together to help your credit union determine the right strategic choices for your desired outcomes.

Using PESTI to Understand External Forces

PESTI analysis is a strategic planning tool to study how external forces and trends affect a market or company. The goal is to deeply understand the external forces impacting your credit union to feed into your SWOT matrix and inform your strategic choices.

To create your customized version of the PESTI, here's a step-by-step guide:

1. 1. Engage your leadership team in pinpointing external trends that can impact your credit union and group them into the five PESTI categories.
2. 2. Next, score trends based on the evaluator’s knowledge of trend, impact, and the likelihood of occurrence over the next 3–5 years. Evaluators’ impact and likelihood scores should be weighed more if they are very knowledgeable about a trend.
3. 3. Prioritized trends ranking high on your weighted impact and likelihood scores should be included in the PESTI analysis and grouped under the appropriate PESTI categories.

Now, it should be said that the true value of frameworks lies in the actions that follow. Once the PESTI analysis is complete, the stage is set for strategic decisions that resonate with the credit union's goals.

Using a SWOT Matrix to Visualize Opportunities and Threats

Next, we recommend using PESTI to develop a SWOT matrix. This framework helps us gather, analyze, and select potential future strategic choices. Using PESTI, collide external opportunities and threats with an honest evaluation of your internal strengths and weaknesses using third-party analysis where available. To help teams visualize, we use a 2x2 grid and sticky notes to document potential choices. These choices fall into four unique categories on our grid:

1. 1. External opportunity and internal strength = Exploit for growth
2. 2. External threat and internal strength = Leverage for advantage
3. 3. External opportunity and internal weaknesses = Improve for the future
4. 4. External threat and internal weakness = Protect the business

This SWOT matrix framework should generate lots of choices. Some will be mutually exclusive, and others will depend on other choices in the matrix. Aim for a good mix of “predictable” choices and bold choices. Focus on the breadth and depth of the choices, and don’t worry about communicating what finds its way onto your SWOT matrix. This way, you are ready for the next and final step – the change agenda.

Using a Change Agenda to Make Specific Strategic Choices

The change agenda results from the hard work put into the PESTI and SWOT matrix. It bridges a strategy's current and envisioned future state via a simple “from” and “to” change dimensions. Shifts need to occur in these change dimensions to create new outcomes and benefits. The outcomes could be used in a vision statement, strategic priorities, or strategic themes.

Creating a strategic change agenda will help you visualize the key choices you want to focus on making. Any choices that do not make the change agenda are equally—if not more—valuable. You now have broad agreement that your credit union will not pursue these choices.

To frame up the choices in the change agenda:

1. 1. Review the SWOT matrix and select a series of choices most likely to create the desired outcomes for the leadership team.
2. 2. review your strengths and weaknesses and document where you come from.
3. 3. Lastly, determine how far into the future you want to look (e.g., three years, five years) and agree upon your future state. State what you will look like when this choice is fully realized.

Now, you possess practical strategic options and a clear objective. The next step is determining how you will communicate this strategy to a broader audience, including your board and employees.

Conclusion

By intertwining these three frameworks, credit unions can better translate industry information and emerging trends, analyze the best choices they can make using their internal strengths and weaknesses into actionable decisions, and make specific choices to drive the change they want. As we enter the new year, these strategic approaches will empower credit unions to weather the challenges and thrive amidst the opportunities.

Ready to navigate the dynamic landscape of the new year with strategic precision? Download the essential resources below and pave the way for a resilient and prosperous year ahead.

PESTI Framework
SWOT Analysis
Change Agenda

TruStage is the marketing name of TruStage Financial Group, Inc., its subsidiaries, and its affiliates. The company's headquarters are in Madison, Wisconsin.