e-Weekly
July 8, 2009
FSCC Announces Two New Shared Branch Locations in Germany at Service Credit Union Locations
Financial Service Centers Cooperative, Inc. (FSCC) announced that two new Shared Branching locations have come online on military bases in Germany. These new locations, operated by Service Credit Union, will serve military personnel and their families.
According to Arty Arteaga, president/CEO of Defense Credit Union Council, “Shared Branching is vital to our troops, especially in today’s environment, as it provides them the flexibility to conduct business from various military installations worldwide—and to do so with much confidence and assurance. In that regard, Shared Branching is a force multiplier for it provides an additional element of value to our troops’ financial quality of life.”
Service Credit Union officials point out the universal impact Shared Branching demonstrates for their credit union. “Shared Branching provides a valuable member “touch point” which is important to members while being true to credit unions’ values and cooperative spirit. It has allowed Service Credit Union to retain members, facilitate our growth, and expand our member service around the world,” said Gordon Simmons, president/CEO of Service Credit Union.
The two new military branches in Germany will provide Shared Branching services to military members and their families on bases. One location is in Lundstahl and the other in Ramstein-Miesenbach. FSCC provides Shared Branching services to nearly twenty military base branches of Service Credit Union in Germany. FSCC also says that there are over 10 locations available on military bases in the U.S., Japan, Italy, South Korea, and Guam.
To add to that, FSCC’s CIMple™ line of products includes the 24/7 call center outlet with international dialing capabilities. This service is included for all credit unions participating in the FSCC network and can also be added by credit unions in other Shared Branching networks. Many military members utilize the call center for a variety of inquiries and transactions to access their U.S. credit union accounts. PSCU Financial Services operates the call center under the Total Member Care line of business.
“Invest in America” Sees Record-High Sales
Credit union members are showing their support for American-made products by purchasing a record number of vehicles through the credit union discount program “Invest in America.”
More than 38,000 GM and Chrysler vehicles were sold in May through Invest in America, bringing the program’s total to 140,000 new vehicle sales since January of this year. The credit union sector growth suggests that consumers are buying GM and Chrysler brands despite the feared negative stigma associated with bankruptcy.
Invest in America continues to surpass expectations in sales goals since the program went nationwide in January 2009. The program has led to an increase in the auto loan market share for credit unions rising from 15% in March 2008 to more than 27% in May 2009.
The current Invest in America incentives for GM include $250 on top of supplier pricing – throughout July. This deal will be followed by supplier pricing available from August 1 – December 31, 2009. Chrysler has extended its contract with Invest in America through December 31, 2009. During July, credit union members can get special discounts of up to $1,000 on many Chrysler models.
Currently more than 1,700 credit unions in all 50 states actively market the Invest in America program. CUNA Mutual Group, CUDL, CULA, and Sprint are among the partners with Invest in America. To learn more about GM’s supplier pricing or Chrysler’s $1,000 and $500 incentives visit www.lovemycreditunion.org.
Hampel to Bloomberg: Recovery Pushed Back to 4th Quarter
The U.S. economic recovery may slide back to the fourth quarter of 2009 from the previously predicted third quarter, Bill Hampel, chief economist at the Credit Union National Association, told Bloomberg TV Thursday, July 2.
Hampel was responding to questions from host Pimm Fox on Bloomberg's "Taking Stock" show about disappointing unemployment numbers from the U.S. Labor Department in the June jobs report, released that day. "We thought the third quarter would be the turning point of the tepid recovery," Hampel said. "We are now pushing it back to the fourth quarter. But the stimulus package should get the economy recovering--just not at a barn-burner pace."
Although the June jobs report was a disappointment, with national unemployment edging up to 9.5%, "one month of data doesn't mean we have to change the total outlook," Hampel said. "The last two months taken together are still up from the free fall of the fourth quarter of last year," he added. "Employment numbers are a lagging indicator, so the last thing we will see improve is employment."
Hampel also was asked about the state of loan growth at credit unions. "We have two indicators," Hampel said. "In the first five months of this year, deposit growth has been the strongest we've had in years. However, loan growth is down. "The household sector has moved to restoring its savings," he added.
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