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Credit Union Distributes $5M in Loyalty Funds
How one credit union is deciding to show appreciation for its members | Plus a large reorganization in the NCUA
Robert Baron
December 02, 2022
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Banking News
Scammed Zelle Customers to Receive Refunds
Major banks Wells Fargo, JPMorgan Chase, and Bank of America aim to boost account holders’ confidence in P2P payment platform Zelle by increasing security and reimbursements in the case of scams. Over 10,000 banks will now be liable for paying back users who sent scammers money using Zelle. Massachusetts Senator Elizabeth Warren (D) decried the platform in a September congressional hearing.
You have created a perfect weapon for criminals to use and they have used it and you have not stood behind your customers.
Brown Brothers & State Street Merger Canceled
An acquisition valued at $3.5B between Brown Brothers Harriman and State Street is off. After acquiring Brown Brothers Harriman, State Street would have had control of over $40B. Executives blame a more stringent regulatory environment and time delays for calling off the deal. Patrick Barrett, CFO of OceanFirst, a bank that also canceled its merger in 2022, agrees.
Everything has just dramatically slowed down. The environment for M&A is just more challenging.
Credit Union News
Reorganization in the NCUA
Within the National Credit Union Administration (NCUA), activities of the Asset Management and Assistance Center (AMAC) will now be conducted by an independent office that reports directly to the Executive Director. These changes come thanks to substantial funds allocations in NCUA’s 2022-2023 budget and a desire to separate the AMAC from regional office constraints.
Educators CU Distributes $5M in Loyalty Funds
The Wisconsin-based Educators Credit Union distributed over $5 million to loyal members on Dec. 1st. The reward funds were generated based on monthly transactions, payments on loans, mortgages, and card transactions, and the use of mobile banking. Educators Credit Union's CEO, Linda Hoover, spoke out about the highest reward year yet:
Everything we do is with the financial success of our members in mind, and we are excited to give back to members in this way.
Financial Services <> Blockchain
Online Bank 'Novo' Expands Offerings
The small-business-focused bank Novo now allows customers to form entities at a 20% discount thanks to a partnership with LegalZoom. Novo, whose customers have tripled to 180k since March 2021, has added invoicing and budgeting to its online platform. In 2023, the bank looks to add lending to its list of offered services. Novo CEO Michael Rangel said:
We allow [small and medium-size enterprises] to connect all of their tools to the central hub, the Novo account. By allowing them to do that, we see all the inflows and the outflows and we’re able to better underwrite them.
Disgraced Former FTX CEO ‘Commingled Funds’
While Sam Bankman-Fried, former FTX CEO, admitted to commingling funds with its sister company Alameda Research, he blamed lack of oversight and ignorance of Alameda Research’s dire financial position. In his first public appearance since the collapse of FTX, Bankman-Fried claimed his own criminal liability is “not what I’m focusing on.” He later mentioned that
What matters here is the millions of customers and all the stakeholders in FTX who got hurt and trying to do everything I can to help them out.
Upcoming Events
December 6th (3:00 - 4:00pm EST) | WebinarCannabis Banking In New YorkJoseph Levey, the leading legal expert on NY cannabis licensing, and cannabis banking expert Robert Baron from StandardC, will provide data and insights that your financial institution can use to build and grow a profitable cannabis banking program in the Empire State.
