Rafael DeLeon

In December 2023, the Treasury released new guidelines for #financialinstituions to become certified as a #CDFI. We’ve written a blog post to share the basics of the new guidelines and what they mean for your #creditunion or #bank (https://lnkd.in/gqPAM5eq). If you’re looking to chat about the CDFI certification process or want to learn how we can help you get certified, shoot us a DM or email [email protected]!

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To all #CDFI #CreditUnions Worried About Losing Certification: On December 7, 2023, the Community Development Financial Institutions Fund (CDFI Fund) published a revised CDFI Certification Application. Since then, CUCollaborate has heard from many credit unions that they worry about retaining Certification under the revised application. So, over the last few months, we have been working hard to develop strategies -- and the necessary software to support them -- to provide credit unions the best chance of retaining Certification. Below are some of the strategies, including software we have developed: 1. Custom Investment Areas (IA): While the revised certification application has significantly diminished the potential impact of custom IAs, they are still a critical tool for credit unions within reach of Certification but not quite there. Our software draws mathematically optimized, custom IAs based on a credit union’s lending activity and financial services. 2. Financial Services Option Analysis: Under the revised application, credit unions that either have 60% by number and 50% of the dollar, or 50% by number and 60% by dollar, can retain Certification if at least 60% of the credit union's depository account holders are members of one or more eligible Target Markets. We have found that the combination of a mathematically optimized Custom IA and the Financial Services Option is particularly effective in retaining Certification, specifically in desperate cases. 3. Target Market API: We have developed a CDFI Target Market API which supports a number of strategies to ensure that you meet your target market lending requirements moving forward. We have established, and continue to add more partnerships, with Fintechs (like National Auto Loan Network, LoanStar Technologies, GreenLyne, etc.) and loan participation platforms (like Aluvy, etc.) to help source qualified lending to ensure credit unions retain certification in the future. 4. CDFI Certification Dashboard: We have also developed a data analytics platform, allowing credit unions to monitor the necessary statistics to retain certification on a rolling basis to ensure that if they start to fall behind, proactive action may be taken before it is too late. 5. CUSO Strategies: If all else fails, credit unions can leverage CUSOs to either help the credit union attain or retain Certification directly OR indirectly gain the many benefits conferred by CDFI Certification through a CDFI Loan Fund CUSO. We know the value of your CDFI Certification, which is why we have invested significantly in developing strategies and proprietary technology that help credit unions retain Certification. Moreover, the software we have developed allows us to help credit unions retain Certification in instances when it would simply be impossible without it. If you believe you are in jeopardy of losing your certification, please contact us: https://lnkd.in/gsysDMTp

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New blog post: CECL implementation is creating new norms for banks and credit unions. Learn which model inputs your financial institution should be evaluating to ensure you're maintaining a proactive approach to CECL. Read today: https://lnkd.in/eSHWeF-t Thanks to Zach Englert for sharing! Empyrean Solutions

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🔍 The Fed Board of Governors, FDIC & OCC published a new guide to support community #banks in navigating the complexities of third-party relationships. 📌 The guide emphasizes the importance of identifying, assessing, monitoring, and controlling risks to ensure activities are conducted safely, soundly, and in #compliance with pertinent laws and regulations, including those safeguarding consumers and addressing #financialcrimes. 💼 Designed to offer potential considerations, resources, and examples across various stages of the third-party relationship, this guide serves as a valuable resource for #communitybanks. 🌟 Explore the full guide here: https://lnkd.in/gs7BNMhn #fintech #riskmanagement #thirdpartyrisk #banking #payments #financialservices

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To all #CDFI #CreditUnions Worried About Losing Certification: The CDFI Fund's revised CDFI Certification Application WILL NOT result in the loss of your certification, if you contact us now. CU Strategic Planning was at the forefront of advocacy to ensure the revision had the flexibility for credit unions to maintain CDFI Certification. Since then, CU Strategic Planning has been actively working with over 100 credit unions to ensure their recertification success. This includes creating advisory boards, community development mission statements, providing product design insights and defensible justification of product attributes. Most powerfully, with the depth of that expert consulting (not available through a technology company alone), we took a giant leap forward by merging two leading organizations to create a profound alliance with Callahan & Associates, Inc. the national leader in data analytics for credit unions. CU Strategic Planning is now a Callahan & Associates company leveraging the power of the most trusted data system in the movement. As THE credit union CDFI certification experts, we are and have been for the last 16 years working to ensure every credit union serving people of modest means can attain and retain its CDFI Certification. If you believe you are in jeopardy of losing your certification, come to the experts. No one has certified more credit unions as CDFIs than CU Strategic Planning. Learn more: https://lnkd.in/gbvdeYpe Schedule a call: https://lnkd.in/gr_FemEV

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For the first time, RDFIs will have a defined role in monitoring ACH payments they receive. This significant development, approved by Nacha members, aims to combat fraud, including business email compromise (BEC), associated with credit-push payments. As Jane Larimer, Nacha President and CEO, points out, "All participants in the ACH Network have a part to play in reducing the incidence of fraud and recovering when fraud has occurred." Learn more in our April 2024 Innovating Payments Executive Summary— Nacha Rules Take Aim at Credit-Push Fraud: https://lnkd.in/ezsgudgX. Plan to join Sean Carter, AAP, APRP, Mark J. Dixon, CTP, AAP, APRP, NCP, Mary Morrison, AAP, APRP, NCP, CAMS, and Patty Presta for a comprehensive two-part series, "Diving Into the Operation Impact of the New ACH Rules," on May 31 and June 07, 2024, where they will delve into the implications of these new rules, offering insights on implementation, procedures, policy updates, audits, risk assessments, and organizational engagement. 🔍 Curious about engaging with third-party providers? 📝 Wondering about new procedures and policy updates? 🤔 Unsure about ACH audits or risk assessments? Get the answers by registering for Diving Into the Operation Impact of the New ACH Rules: https://lnkd.in/e7y73DN2 #ACH #FinancialServices #FraudPrevention #RegulatoryCompliance #ProfessionalDevelopment

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Announcing our new ACH Fraud Solution 🚀 In the era of faster real-time payments, ACH adoption is skyrocketing. But with over $80 trillion in ACH transactions processed annually, protecting your institution from fraud is more critical than ever. Unit21’s ACH Fraud Solution is designed to proactively block risky ACH transactions before they happen. Reduce fraud losses, cut return rates, and supercharge investigations with AI. Here's how it works: 🔎 Detect risk: Increase detection accuracy via machine learning, reducing false positives.  🚫 Prevent fraud: Stop fraudulent ACH transactions before they hit, reducing losses. 😎 Respond confidently: Achieve faster investigations and resolution times with AI automation. See all of this and more in action during our upcoming demo: https://hubs.li/Q02LKDQh0 #ACHFraud #ACH #FraudPrevention #FraudFighters

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The latest data from NCUA paints a challenging picture for credit unions, but staying informed is the first step toward tackling these issues head-on. Check out our News & Resources page for an in-depth look at the trends and what’s next for the industry. #CreditUnionData #FinancialServices #TyfoneInsights

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On September 5, the U.S. Federal Reserve Board requested public feedback on its discount window operational practices, which provide short-term credit to banks and credit unions. This input will help the Board and Reserve Banks enhance the efficiency and accessibility of the discount window and intraday credit services. Key Highlights: - Purpose of the Discount Window: The discount window is a critical tool that ensures the liquidity and stability of the banking system. It offers quick access to funding by accepting a broad range of collateral, supporting the flow of credit to households and businesses. - Intraday Credit: Reserve Banks also provide intraday credit to eligible institutions, which is essential for maintaining the safety and soundness of the payments system. Request for Information: The Federal Reserve's request for public input focuses on operational practices such as: - Legal documentation collection processes. - Collateral pledging and withdrawal procedures. - Loan request, receipt, and repayment processes. - Extension of intraday credit. - Communication practices related to the discount window and intraday credit. The comment period will remain open for 90 days following the publication of the request for information in the Federal Register. Stay tuned for more updates from Global Regulatory Insights. #FederalReserve #Banking #DiscountWindow #IntradayCredit #Liquidity #FinancialStability #GRI

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🔒 As a credit union, staying compliant with FFIEC regulations isn't just about avoiding fines—it's about ensuring the safety and privacy of your members' data. Dive into our latest article - https://bit.ly/4b5vXiS - to explore key regulations and actionable compliance strategies. #DataSecurity #CustomerTrust #FFIEC #CreditUnions #Compliance

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The #CFPB issued an interpretive rule describing how lenders issuing digital user accounts to access credit are also “creditors” subject to subpart B of Regulation Z. The rule makes clear that lenders issuing BNPL products and other digital user accounts to access credit will be regulated like credit card providers. Read more in this #clientalert: https://ow.ly/8IYm50RTU3w #legalnews

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Transparency in banking is essential! Under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), banks must make their CRA ratings and performance publicly available. This means communities get a clear view of how banks are supporting local credit needs, encouraging fair practices and development. Let's push for accountability and transparency in the financial system to build stronger, fairer communities! 💪 #BankTransparency #CommunityReinvestment #FIRREA #FairBanking #EmpoweredCommunities

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Each handbook contains all the knowledge necessary for compliant ACH operations in a condensed format that is more easily referenced and digested by the Originator. It includes an overview of the ACH Network, its participants, and why it is a safe, efficient payment system. 🔗Link to purchase: https://lnkd.in/gMM_r_Jr #Payments #Publications #Origination #Handbook #ACH

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Access the latest tool for #communitybankers, ICBA's guide to check fraud. The guide will help community banks address check fraud, recover funds, and reduce losses. Get it here: https://lnkd.in/ed6D3UhF

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Discover the Secret to Increasing Deposits and Fee Income: Join Our Treasury Management for Community Banks Webinar Treasury Management for Community Banks: A Powerful Tool to Increase Deposits and Fee Income Date: June 6, 2024 Time: 1:30 pm - 3:00 pm Central Time Registration Link: https://lnkd.in/dxyB2f8A Unlock the potential of Treasury Management in this dynamic, must-attend webinar designed to elevate your financial institution's growth. Dive deep into the strategies and services that can transform your approach to deposits and fee income. Why Attend? * Gain Essential Knowledge: Understand the primary Treasury Management services that drive business value. * Boost Your Expertise: Learn how to conduct a Treasury Management Needs Assessment for your business account holders. * Maximize Opportunities: Discover how to utilize the Account Analysis statement to uncover new fee income opportunities. What You'll Learn: * Foundational Knowledge: The core Treasury Management services available in the market. * Marketing & Sales Process: Effective strategies to market and sell Treasury Management services. * Product Implementation: Best practices for seamless implementation of Treasury Management products. * The Future of Treasury Management: Stay ahead with insights into upcoming trends and innovations. Key Benefits: * Cross-Functional Collaboration: Understand how Sales, Treasury Management, IT, Marketing, and Deposit Operations teams can collaborate for success. * Increased Deposits: Learn strategies to boost core deposits. * Enhanced Security: Identify new authentication methods to secure your products. * Strategic Marketing: Bring back actionable ideas to market Treasury * Management services to your ideal business clients. Who Should Attend? This webinar is perfect for: * Business bankers looking to expand their knowledge of Treasury Management products. * Treasury Management sales officers and specialists. * Deposit Operations personnel. * IT and Marketing staff. * Presidents/CEOs focused on optimizing their organizational structure for Treasury Management and increasing non-interest fee income. Register Now Don’t miss this opportunity to enhance your skills and drive your institution's success. Join us on June 6 for an insightful and practical session that promises to equip you with the tools you need to excel in Treasury Management.

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📝 On Friday, The #FederalReserveBoard requested comment on a proposal to expand the operating days of the Federal Reserve Banks' two large-value #payments services to include weekends and holidays, so that they would operate every day of the year. 🗓️ ➡️ Learn more about the proposal: https://zurl.co/CqsD #paymentsproposal #FederalReserveproposal #paymentsrfc

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Just because you’re aligned with regulatory expectations, does that mean you’ve managed risk? Banks and credit unions are in the business of taking risk—and managing risk effectively is critical to an institution’s safety and sustainability. Banking is also a highly regulated industry, and regulation is important; it provides a framework for alignment to legal obligations, industry standards, and prescribed risk methodologies/techniques (like capital adequacy, liquidity reserves, stress testing, and interest rate risk). However (consciously or not), many banks and credit unions dedicate considerable resources to risk measurement and reporting primarily (or even solely) to satisfy regulatory expectations and/or follow prescribed regulatory methods—and they stop there. Regulators themselves often say prescribed methods are minimum expectations, and don’t necessarily reflect the reality of an institution’s specific business. Clearly, without a thorough consideration of alternate approaches and scenarios, critical exposures can be missed. PRO consistently supports clients with their filing templates and measurement practices to meet regulatory expectations and requirements—but we go much further than that. We give our clients tools and insights built on decades of financial modelling and banking industry practitioner experience to effectively capture, actively manage and clearly defend their unique financial performance and risks. Learn more about PRO Financial Solutions here: https://lnkd.in/gQ5F5iHC

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If your financial institution or credit union assigns scores by hand, runs calculations, or uses an algorithm, risk scoring is a crucial part of a well-oiled compliance system. ✅ Join former OCC regulator Ryan McInerny in our upcoming webinar on May 30th to discover how to align with your unique risk profile and ensure you're not missing suspicious activity. ✅ Register today! >> https://lnkd.in/dZ_7bHu2 #Riskscoring #RiskScout #Streamlinedcompliance #Financialinstitutions #Creditunions

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A top Treasury Department official yesterday encouraged banks of all sizes to respond to a recent request for information on the use of artificial intelligence in financial services, saying the input the department receives will inform future policy and guidance. Read more at https://lnkd.in/gWnckf44

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