Daniel Kendle

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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Hear from PNC leaders on how key market and economic themes may impact 2025, and beyond. Register here. https://lnkd.in/eCaMkFkZ

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As a prominent Community Development Financial Institution certified by the U.S. Treasury's CDFI Fund, we recognize our responsibility to strengthen our longstanding banking relationships and collaborate effectively on initiatives that address critical community needs. This certification aligns with our mission-driven approach to community development and underscores our commitment to supporting underserved populations and uplifting communities. By providing financing to those who may not have access to traditional banking services, we aim to foster economic growth and empowerment. We aspire to lead the industry toward a broader landscape of impact investing, where capital market solutions and public funding converge to amplify the transformative work of CDFIs nationwide. #FinancialInclusion #ImpactInvesting #CommunityDevelopment

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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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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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⏰ BREAKING: The Fed, FDIC, and OCC just released a new guide to help Community Banks manage their third party risk. One key point of emphasis: "A community bank may engage an external party to conduct aspects of its third party risk management. However, the bank cannot abrogate its responsibility to employ effective risk-management practices, including when using a third party to conduct third-party risk management on behalf of the bank." Outsourcing third party diligence to a firm isn't enough - it's crucial to invest in internal operations because the bank is ultimately responsible. 🗒 Reach out to our team at [email protected] if you'd like to learn how we can help strengthen and streamline in-house efforts.

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The NCUA’s publication of their 2025 supervisory priorities highlights a heightened focus on net interest margin (NIM) compression and liquidity management for credit unions. NIM compression continues to be a significant risk for credit unions and is partially driven by the duration mismatch between longer-term loan portfolios and the shorter-term liabilities that fund them. The NCUA cites that “over the last few years, the rising interest rate environment increased some credit unions’ cost of funds faster than the returns on loans and investments, squeezing the net interest margin—a key driver of earnings.” Please send us a note if you’d like to discuss how your credit union can benefit from financing structures that provide access to a well established capital markets investor base, increased liquidity, stabilized NIM, improved regulatory capital, and increased net worth. #Securitization #CreditUnions #CapitalMarkets

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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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A driving factor in the growth of Same Day ACH payments is the ACH Network’s firm establishment. ACH is ubiquitous, and businesses and consumers are familiar with it. Unlike some of the newer real-time payment rails, virtually all FIs are connected to ACH, facilitating money movement regardless of the customer’s bank. “If you’re a business and you haven’t dipped your toe in the faster payments waters yet, start with what you’re familiar with, which is likely to be ACH,” Michael Herd, Executive Vice President of ACH Network Administration at Nacha said. “Same Day ACH is just a faster form of what you already know. It’s the same system and the same processes. You will have to adapt to the faster settlement of funds, but ultimately there’s a much lower barrier to entry.” Read more: https://lnkd.in/e3hiv_g2

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The FedChoice Charitable Foundation (FCF) is thrilled to announce the largest donation in its history, a generous $222,000 contribution from FedChoice Federal Credit Union (FedChoice). This landmark donation comes as FedChoice prepares to celebrate its 90th anniversary, marking nearly a century of service and commitment to the federal community. Brett Noll, President/CEO of FedChoice Federal Credit Union, stated, “The success of our Foundation was made possible by our Credit Union Board of Directors and those who created the foundation back in 2017. There is an incredible sense of unity at our organization with everyone committed to improving the lives of our credit union members and people in need within the communities we serve. This extremely large and generous gift to the FedChoice Charitable Foundation is a monumental step towards securing the longevity of the organization and the impact of the work being accomplished.” This significant contribution underscores FedChoice's dedication to supporting the Foundation’s mission of empowering underserved communities through #education and #financialliteracy. Over the past year, the FedChoice Charitable Foundation has provided financial literacy classes at Title I schools across the Greater Washington DC area, delivered Teachers' Aid Program grants to K-12 educators, awarded scholarships to graduating seniors in local high schools, and established ‘Millionaires Clubs’ at multiple middle and high schools to teach children concepts revolving around financial management. The Foundation also continues to help federal employees navigate their employment benefits and prepare for retirement. “Financial literacy has the power to transform lives, and we are immensely proud that our educational programs have impacted so many young people and their families in low-income areas,” shared Andrey Gidaspov, Ph.D., Executive Director of the FedChoice Charitable Foundation. “We are deeply grateful for this substantial gift from FedChoice, which serves as a testament to the success of our collaborative efforts with community partners, donors and volunteers. This is a major investment in our sustainable future.” #embrace #educate #elevate #empoweringlocalcommunities #impact

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We can do better than this. Consumer Financial Protection Bureau Director Rohit Chopra's critiques of FICO are getting louder — and for good reason. “We can do better than this. Recently, the CFPB finalized rules to accelerate open banking in the U.S., which will further reduce the salience of FICO scores by allowing consumers to permission their personal financial data from across their life as part of a loan application. However, there is still the issue of standardization.” - Chopra (🔗 https://lnkd.in/e69SbkV2) ❌ Rising costs, outdated models, and limited predictive value from FICO are holding the market back. ✅ Tailored, predictive tools are the future of credit scoring. At Pave, we're building scores that fit each credit product — because a mortgage isn't a small-dollar loan, a business line of credit isn't a merchant cash advance, and a charge card isn't a credit card. Each product has unique risk factors, and evaluating them with a one-size-fits-all model just doesn’t work. #Fintech #CreditRisk #CreditScoring #CFPB #AlternativeData #CashflowAnalytics #CashflowUnderwriting #Section1033

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Looking to elevate workflow efficiency? Shastic's AI-Workflow-Automation platform is what your credit union needs to revolutionize operational efficiency and member engagement. Why Choose Shastic? -Streamline Processes: Automate to save time and minimize errors to focus on high-value tasks. -Enhanced Member Experience: Deliver personalized, digital-first services that exceed member expectations. -Drive Efficiency and Growth: Leverage predictive analytics for data-driven decisions, enhancing your competitive edge. -Seamless Integration: Effortlessly connects to your existing systems in minutes with minimal IT lift. 🔍 Transformative Impact From loan processing to member services, witness a tangible improvement in productivity, satisfaction, and ROI. Join the leaders who are already redefining the credit union industry with Shastic. 🌐 Schedule Your Demo Today Don't just keep pace with technology—lead the charge. Request your Shastic demo today and take the first step toward a smarter, more responsive, and member-focused future. https://hubs.ly/Q02Py-7B0 #AI #workflowautomation #efficiency #automation #creditunion #banking #workflow

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PERS selects MUFG Investor Services for securities lending. The Public Employees’ Retirement System of Mississippi was established to provide retirement benefits for all state and public education employees https://lnkd.in/e2zYgWYD #SecuritiesLending #banking

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The NCUA has outlined its supervisory priorities for 2025, giving credit unions a clear roadmap of what examiners will emphasize in the year ahead. At Accolade Advisory, we specialize in supporting credit unions by offering expertise in Asset-Liability Management (ALM), credit risk analytics, and balance sheet management, ensuring they are well-prepared for these examinations. https://lnkd.in/gaCZDe8u #creditunions #NCUA #investmentmanagement #creditrisk #interestrates

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This week in exciting #OpenBanking news: last Wednesday, the Consumer Financial Protection Bureau (CFPB) announced a new rule explaining the qualifications and attributes a standard setting body will need to be recognized by the CFPB. This is significant because recognized industry standard setting bodies will be able to issue standards to companies so they can comply with the CFPB’s upcoming Personal Financial Data Rights Rule.   “Industry standards can be weaponized by dominant firms in order to maintain their market position, undermining competition for all,” said CFPB Director Rohit Chopra in the CFPB's press release. “Today’s rule will prevent these firms from rigging standards in their favor by identifying attributes the CFPB will use to recognize standard setters.”   To gain recognition from the CFPB, a standard setting body will need to display: ·  Openness ·  Transparency ·  Balanced decision-making ·  Consensus ·  Due process and appeals It is widely expected that the FDX API from the Financial Data Exchange will be declared as official standard, based on its existing market dominance. However, the CFPB has made it clear that FDX should not take this for granted, and with the release of these guidelines, they have set the bar for selection quite high, level playing field in the open banking ecosystem.   Read more in the release here: https://bit.ly/3KydorY

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Heads up, bank board members and risk managers! The FDIC is proposing new guidelines on risk management for large banks. This could impact your institution if it has over $10 billion in assets. The guidelines cover areas like board oversight, committee structure, and communication. Guidelines - similar to these - previously issued by the US Department of the Treasury and the Federal Reserve Board have found there way into many industries beyond banking and financial services. Get a head start on compliance by reviewing (or starting!) your ERM Program https://bit.ly/3CSCwXM #riskmanagement #banking #FDIC #ERM

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