1 Continued on Page 2

Global Economy: Trade is growing globally in today’s scope of consumer lending. There are many reasons for this growth, not the least of which is technology. Due to enhanced communication opportunities today, international trade is much more practical. Now more than ever, consumers and businesses have access to the very best products from many different countries. Expanding technology has also increased the competition among countries as to who can produce the newest or best technology. To develop the accommodations of the new trade, countries in the last several decades have taken increasing steps to promote global trade.

Foreign exchange transactions are becoming more and more common with the ease of automated online lending. Will the foreign lenders continue to attract the attention of the American purchasers? We have already seen an increase in foreign transactions with the purchase of online goods, and air/travel reservations.

Who protects the consumer who accesses the international lending opportunities? The globalized trade market is currently governed by the Federal Trade Commission (FTC). The FTC focus is to protect the consumer from harm, while enhancing the

International Consumer LendingWill U.S.-based financial organizations be ready?

Know the Lending RulesAdvantage

Volume 19 | Edition 3

In this Issue .........................................1

.........................4

..............5

.............................................5

...............................6

....................................6

2

Visit www.OakTreeBiz.com | Email ClientServices@OakTreeBiz.com | Call (800) 537-9598

It takes work to keep your credit union in compliance. It’s not easy, but there are a few basic things you can do. Read over our checklist and make sure you have these items covered. This will go a long way toward keeping you in compliance and out of the crosshairs of a potential regulatory audit, or other adverse event.

Stay Current. Make sure you stay in the loop regarding regulatory changes and other similar occurrences. Most vendors have websites devoted solely to timely information updates; and regulatory agencies such as the NCUA, Federal Reserve, Federal Financial Institutions Examine Counsel (FFIEC), and Consumer Financial Protection Bureau provide white papers and summaries to give perspective on updated laws and regulations. These help you stay up to date and informed.

Audit/Review Yourself. Make sure you have a mechanism in place to review and audit your policies and procedures. The best way to think of these is as follows: they are always a work in progress. They should regularly be reviewed and tested to find shortcomings or problems that might be hidden from view.

Be Proactive. Learn to anticipate regulatory changes. This is best accomplished by studying trends, and observing how other regulatory professionals in your industry are reacting. Speculate using past and current regulatory trends, then take all of this information and extrapolate a conclusion based on the inferences and present regulatory situation. Usually, you can align facts with trends to determine what will most naturally be the next course of action, and begin to position yourself accordingly.

Be Consistent. Make sure you have a mechanism in place to maintain all current programs. This means reports should be submitted on a regular basis, updates should be regularly given, budgets should be maintained, and a plan for training staff should also be in the works. Oak Tree forms fit nicely into this category. All of our forms packages are kept current and up to date, providing you with the security and peace of mind needed to focus on other compliance issues.

Use the tips above as general guidelines. They are helpful with regard to perspective, and provide a broad-brush approach, allowing you to hone in on specifics as they relate to your institution.

Finally, if you are a compliance officer, set up a process for auditing yourself. This can be vital in preventing problematic instances in the long run. Maintaining compliance is a key part of credit union operation and management. It is a tough job with no guidebook or definitive set of rules. It takes everyone working together to ensure compliance is met and maintained. It is an ongoing necessity that must be upheld to meet members’ needs. Take advantage of Oak Tree compliant forms and obtain compliance support for your credit union.

Checklist for Credit Union ComplianceRod Terry, Director of Product Mgmt.

may not be the U.S.) and that all countries are held to the same consistent lending practices. Will your credit union be ready to comply with a mandatory international consumer lending standard?

Here is where the good news comes in. Your credit union’s lending operations may be affected by the ongoing global financial industry changes, and today your forms remain compliant with current credit union rules and regulations, especially if provided by Oak Tree. Rest assured that Oak Tree is continually “trend watching” and will be at the forefront of any changes to your forms brought about by any source, including international trends.

Chat with us at www.OakTreeBiz.com to find out how to be prepared for any change, whether it be local or global. Oak Tree Business Systems, Inc. is always ready to provide you with the most relevant credit union industry information.

economic benefit and the choice of the consumer.

International lending has opened up crime-based activity to a global environment, allowing traditional theft to emerge on a whole new level. Will this type of fraud and theft in the global market change the rules of international lending? There may be a chance the FTC steps in and changes the way we are lending and funding loans or purchases. Will you be ready to comply?

With consumer protection laws continually on the rise, how will this affect the international lending laws? Will the U.S. become adaptive to the way of our international lenders? It would appear that the U.S. consumer lending laws are sophisticated, while allowing the flexibility and ease of use to fund a consumer loan... as long as the rules are followed.

It may be that the future of our lending practice is in the hands of the prevailing financial system (that

3

Visit www.OakTreeBiz.com | Email ClientServices@OakTreeBiz.com | Call (800) 537-9598

How Enticing and Simple is Your Membership Application Process?Client Services Department

Every now and then it’s important to take a look at your membership process to make sure it is easily accessible. While you might think you have all the bases covered, and you most likely do, it’s always a good idea to take a few minutes and review the process. You want to make sure your credit union membership process is easy and enticing. Address the following areas to ensure a smooth, easy road to membership.

Awareness. Have you done everything necessary to promote membership awareness? Is all of your branding in place, easily identifiable, consistent, front and center? Take a moment and look around your credit union. Make sure the first impression a potential member has is that you want him to join your credit union. If you notice an area lacking, make adjustments until it is obvious to anyone who walks through the door that you want him on your team. Also, do the same evaluation of your website. Remember, people like invitations. Your web presence should give them one.

Promotions. Potential members looking to finance an automobile loan, or obtain a first or second mortgage, will likely turn to a credit union for the low rates and attractive terms. Make sure you have any promotions regarding those services, and any other services you have to offer, in plain view. Look to make sure they have a high degree of physical visibility in your credit union, and online. Promotions can be used as a great hook to get new members. It is important that potential members are aware of anything special you have to offer like introductory rates, online banking, and automatic bill pay. This could be the very thing to entice them to leave their current banks and become members. Oak Tree also offers Marketing Services to help your credit union grow.

Forms. The easier a credit union application process is, the better. This is why Oak Tree’s fillable forms are a good alternative option. It cuts down on the time it takes for new members to fill out the form, and gives you more time to get to know them as individuals. It makes the process a lot less formal and works to establish a rapport from the beginning. Plus, all of our forms are compliant with regard to disclosure requirements and other state/federal guidelines. All that is required is simple and accurate data input.

Consider these three areas to be a great starting point. There are other ways to make your membership application process enticing and simple. Just get creative. Work through the process as a new member and make note of any areas you might be able to streamline or make more appealing. Of course, if you need forms, we are just a phone call away. We are happy to serve, and would do anything we can to make sure our forms contribute to making your membership process as simple and attractive as possible.

Call Oak Tree today for winning

marketing services!(800) 537-9598

MarketingServices

(800) 537-9598

When credit union CEOs and executives think of budgets, they think of a certain amount of money that should be allocated to various expenses. Determining how much to spend on various expenses is only half the battle. For a credit union, the other half is to be able to effectively judge your spending performance.

In order for a credit union to operate efficiently, a budget must be established, maintained, and adjusted throughout the year. Estimating and matching expenses to revenue (real or anticipated) is key to determining whether the credit union has the correct budget to fund operations, expand, and generate income. Without a budget or a plan, a credit union runs the risk of spending more money than it is taking in, or conversely, not spending enough money to grow the credit union and compete with other credit unions.

Strategy must be used to track and measure things like:

• Fees and other non-loan generating sources. Checking, savings, and money market accounts fall into this category.

• Controlling expenses. Preparing for projections of sales, operating costs, overhead costs, administrative staff, capital requirements, supplies, and other types of overhead required to operate on a daily basis is vital.

• Investments. These could be products sold to members or items the credit union has invested in such as forms. Calculating operating profits and returns on the investment is a necessary strategy.

• Cost-benefit analysis. This is essential. A good CB analysis will provide useful information, allowing credit unions to make adjustments as need be.

• Tax Exemption. Current non-profits show exemptions, and according to CU Times and former

Staying Within Your Budget—Use It or Lose ItGenelle Rich-Buscemi, President

Capitol Hill policymakers, also consider preparing to again defend their federal tax exemption as presidential candidates and members of Congress are calling for tax reform in 2017. This may affect businesses’ tax expenditures granted in federal law.

These measurements work the same way as individuals budgeting for their own household expenses. Lists, budget software, financial statements; these are all tools used by people to stay on budget. Credit unions operate much the same way. There are tools and metrics used to track each of the areas mentioned previously.

Lending Forms Budget:This is why a good forms system is essential. With forms from Oak Tree, you can position yourself to lend more to your members. Our forms integrate with any data processor and are kept current with regard to all state and federal guidelines. Budgeting for forms makes it more efficient to present options to your members and track your progress. Doing these two things will ultimately contribute to a smoother, more efficient operation that works with your budget. That translates into more time available for staff to speak with members about all that your credit union has to offer. At the same time, the compliance aspect gives you peace of mind. We take time to make sure our forms are the best in the industry, so you can use your time to better manage your credit union, keep on task, and on budget. Get a quote for a consumer, membership, home equity, or business forms package at ClientServices@OakTreeBiz.com

Marketing Budget for your Credit Union:Commonly, credit unions base next year’s marketing budget on what it was this year, and give their budget an increase from the prior year. Others set their marketing budgets according to their strategic plan.

According to The Financial Brand, credit unions spend an average of between $8.00 and $16.00 per member on marketing. If you wonder what your budget should be to reach your credit union’s growth goals, or how to establish marketing ROI, or what areas need to be increased in your marketing budget, a strategic budget might be the best fit for your credit union.

To learn more about how to invest in your credit union’s future and budget a detailed plan based on corporate goals, branch/service expansion, market penetration, new products/services, community involvement, research, rate forecasts, and media channels, email us at MarketingServices@OaktreeBiz.com.

4

Visit www.OakTreeBiz.com | Email ClientServices@OakTreeBiz.com | Call (800) 537-9598

A 2014 survey by Fannie Mae found that the majority of Millennials consider owning a home more sensible than renting for both financial and lifestyle reasons — including having control of living space, flexibility in future decisions, privacy and security, and

living in a nice home. Many young renters in the survey appear to be on the brink of home buying, and 49% said their next move would likely be to own a home. Who wouldn’t want their own home? Millennials are no different, and see the long-term value in owning a home.

Get your credit union ready for processing Millennial loans, and create awareness in the different financing options your credit union offers. Our forms packages have everything needed, including a streamlined application and all proper disclosure forms. As always, our forms are compliant and up to date, incorporating all state and federal guidelines.

As the Millennial sector continues to expand and enter the marketplace, Oak Tree forms are ready to help expedite the process. Contact us today if you need a boost or would like more information at ClientServices@OakTreeBiz.com.

Don’t forget! Millennials want purchase options, and Oak Tree also provides Millennial marketing services geared toward your credit union demographics. Email us at MarketingServices@OakTreeBiz.com.

Millennial Market Lending ToolsJeff Osburn, Director of Client ServicesCurrently, the average age of a credit union member is in the late 40s, according to the World Council of Credit Unions. Millennials, however, are joining the credit union market more and more each day. Most credit unions think of student loans in the Millennial market. As in any other economy, Millennials will need all the financial products and services other people have always desired. Millennials have the largest purchasing power and desire to keep up with what is trendy today. The question is, how do you reach and connect with them?

The growing Millennial market is creating a demand for home mortgages. Owning a home versus renting is appealing to Millennials more and more as they come of age. Plus, there are different home mortgage options on the market that make lending much easier than before (some say that no matter how low the rent is in Kentucky, there are no doubt plenty of Millennials who would prefer to live in the trendiest shoebox in New York City than in a mansion in Kentucky.) Oak Tree has great forms packages for each Millennial’s lending needs. For instance, we offer consumer lending forms for both open-end and closed-end home equity lending. This is a great way for Millennials to obtain a home loan that differs from traditional home mortgages.

National Federated Credit Union’s

Welcome to

online chat.

Hello, welcome to National Federated Credit Union’s online chat. How may I help you?

NFCU Teller wrote:

No problem, we o�er loans that you can apply for straight from your phone.

NFCU Teller wrote:

Suh bruh. Low key, I’m short on cash. The struggle is real and I need to pay my bills soon.

Millennial wrote:

Yasss! Thanks fam!Millennial wrote:

FLEXIBILITYFLEXIBILITY

THE LENDING PROCESS

FINANCIAL NEEDS

MARKETINGE-SIGNATURE

E-SIGNATURE

With the help of marketing services from Oak Tree, Members will be drawn into your credit union for their �nancial needs.

Oak Tree forms seamlessly integrate with your processing system, saving time signing up new Members and serving their lending needs.

Eligible Members have �nancial needs (savings, checking, easy access to their funds, loans of all types, etc.).

Oak Tree’s �llable forms allows for easy loan completion and signage.

By working with Oak Tree, your Members receive full access to the entire suite of products and services o�ered by your credit union. Simpli�ed processes, faster loans, painless experience = happy Members!

FORMS/DATA LINKING

Member Goesto Credit Union

The Loan isSigned

Member Receivesthe Money

Member Needs Money

Credit Termsare Determined

E-SIGNATURE

5

Visit www.OakTreeBiz.com | Email ClientServices@OakTreeBiz.com | Call (800) 537-9598

Should Your Credit Union Branch Out?Marketing Department As credit unions discover the normal and routine activities of their members in order to better serve their lending needs, credit unions begin to consider branching out to fulfill those needs.

Branching out allows your credit union to expand services to an area outside of your members’ home location, providing services as an extension of the main branch. Whether it is sharing a branch or opening your own new branch, here are some tips on branching out:

• Expand your credit union branching system so that members can access their accounts from any credit union office. This can be a more cost-effective approach of offering members the option to keep their membership open, once they move to that home location.

• Offer self-service options such as the use of ATMs, mobile check deposit, and automated phone services.

• Promote online, and provide app options such as online bill pay, direct deposits, online statements, wire transfers, loan applications, mobile baking, and more.

• Promote what you have by offering competitive interest rates, access to affordable credit, car loan specials, social media incentives, and more.

• Offer Shared Branch Abroad, so that your members feel like they do at home, using their credit cards at different ATMs or branches while traveling.

• Be available! Make sure that your hours of operation are flexible enough to meet your members’ needs.

• Take reasonable steps to ensure that your knowledge of members’ normal and routine business activities follow regulation requirements, by establishing a member due diligence procedure.

• Train your employees to follow general privacy policies and procedures regarding members’ information.

As your credit union employee fills out a membership application or a lending document from Oak Tree, your credit union will be compliant in regulation requirements. Be confident that our forms will meet the industry standards to fully serve your credit union members.

One of the challenges of expansion is credit union awareness. To achieve a high level of consumer recognition, credit unions will need a more strongly recognized image (brand) and the ability to market the right products and services effectively. A key element of your credit union expansion would be to broadcast the services provided to the targeted consumer market and encourage them to join up. Oak Tree offers your credit union marketing services. Email us today for a quote at MarketingServices@OakTreeBiz.com.

Remember that since your credit union may be able to pool resources and centralize core tasks, you may benefit from cost savings, which can then be passed on to more members. Oak Tree will continue to focus on providing the great member lending solutions that we have prided ourselves in doing for 30+ years. Call us today to make your expansion process easier with compliant, mobile forms. Chat with us at

Shopping for a new data processor can be overwhelming… so many options, and so many things to consider. How do you know if you are making the right choice? Following are 6 things to consider while you shop. Cover these, and the rest is just commentary.

Functionality. Does the new system offer real-time processing? How easy is it to use? Both of these

questions speak to functionality. Many data processing companies produce software with amazing bells and whistles. Just make sure it still fits your needs with regard to access, usability, storage, and backup.

Reliability and Security. With cloud-based systems, data processing software reliability is at an all-time high, but security breaches are also becoming more common. If your proposed provider cannot offer a guarantee with regard to reliability, keep shopping. There are plenty of other providers.

Integration. How easily will your new system and forms integrate with your current lending software? Integration is a must, for a data processing switch to be solvent. This should be priority number one. If it does not integrate, disregard all of the other nice features and continue your search.

To read the full article visit

How to Shop for a New Data ProcessorData Services Department

6

Visit www.OakTreeBiz.com | Email ClientServices@OakTreeBiz.com | Call (800) 537-9598