Defense Credit Union CouncilDefense Credit Union Council

UpdateUpdate

AFCPE Military Pre-ConferenceAFCPE Military Pre-Conference

November 18, 2009November 18, 2009

ENVIRONMENTENVIRONMENT SUPPORTSUPPORT SUMMARYSUMMARY BOTTOM LINEBOTTOM LINE

AGENDAAGENDA

LegislativeLegislative– New Administration…new direction New Administration…new direction

EconomicEconomic– On the mendOn the mend– Foreclosures/DelinquenciesForeclosures/Delinquencies

Financial Services IndustryFinancial Services Industry– RecoveringRecovering– Regulatory agencies…oversightRegulatory agencies…oversight

Credit Union IndustryCredit Union Industry– Corporate Credit UnionsCorporate Credit Unions– Natural Person Credit UnionsNatural Person Credit Unions– NCUANCUA

EnvironmentEnvironment

Department of DefenseDepartment of Defense– OIF/OEF OIF/OEF – DeploymentsDeployments– OPTEMPO/PERSTEMPOOPTEMPO/PERSTEMPO– BRACBRAC– Budgets…near/mid-term Budgets…near/mid-term

Defense Credit UnionsDefense Credit Unions– Corporate Credit Union impactCorporate Credit Union impact– NCUA premium assessments…“bill is in the mail”NCUA premium assessments…“bill is in the mail”– Delinquencies…foreclosuresDelinquencies…foreclosures– On-going legislationOn-going legislation– DCU’s are well-capitalizedDCU’s are well-capitalized– Conservative by nature…member ownedConservative by nature…member owned

EnvironmentEnvironment

LegislativeLegislative EconomicEconomic Financial Services IndustryFinancial Services Industry Credit Union IndustryCredit Union Industry Department of DefenseDepartment of Defense Defense Credit UnionsDefense Credit Unions

EnvironmentEnvironment

VOLATILE

UNCERTAIN

COMPLEX

AMBIGUOUS

VUCA

Courtesy USAFINCOM

Stateside Ops

EnvironmentEnvironment

Overseas Ops

Rebasing

Peacekeeping

Peacemaking

Contingency

Ops

Stateside Ops

EnvironmentEnvironment

Overseas Ops

Rebasing

Peacekeeping

Peacemaking

Contingency

Ops

MISSION READY

Stateside Ops

EnvironmentEnvironment

Overseas Ops

Rebasing

Peacekeeping

Peacemaking

Contingency

Ops

FINANCIALLY READY

The Administration…The Administration…direction and guidancedirection and guidance The Hill…The Hill…legislation legislation The Department…The Department…rules and regulationsrules and regulations

– DoDI 1342.27 (Personal Fin Management for DoDI 1342.27 (Personal Fin Management for SMs)SMs)

preference should be extended to on base fin institutions preference should be extended to on base fin institutions for financial education trainingfor financial education training

– DoDI 1344.07 (Personal Commercial Solicitation DoDI 1344.07 (Personal Commercial Solicitation on DoD Installations)on DoD Installations)

on-base fin institutions may provide education programson-base fin institutions may provide education programs non-federal orgs may offer fin education if approved by non-federal orgs may offer fin education if approved by

Presidential elect Senate confirmed LeaderPresidential elect Senate confirmed Leader sponsorship may not be used as a means to obtain sponsorship may not be used as a means to obtain

contact information…”without permission” contact information…”without permission” under no circumstances shall commercial agents , under no circumstances shall commercial agents ,

including reps of loan, finance, insurance or investment including reps of loan, finance, insurance or investment companies be used to provide financial educationalcompanies be used to provide financial educational

SupportSupport

The DepartmentThe Department…… rules and regulationsrules and regulations

– DoDD 5500.7DoDD 5500.7 ((Joint Ethics Regulation)Joint Ethics Regulation) on-base fin institutions enjoy a special relationship w/ on-base fin institutions enjoy a special relationship w/

DoDDoD

– DoDI 1000.11 DoDI 1000.11 (Financial Institutions on DoD (Financial Institutions on DoD Installations)Installations)

one credit union/one bank policyone credit union/one bank policy

– DoD 7000.14-R DoD 7000.14-R (Vol 5 Chp 34 – Procedures (Vol 5 Chp 34 – Procedures Governing Banks and Credit Unions on base)Governing Banks and Credit Unions on base)

Credit union’s role: to promote morale and welfareCredit union’s role: to promote morale and welfare Financial Services…CDR shall not seek financial services Financial Services…CDR shall not seek financial services

from any other entity other than on-base FI’sfrom any other entity other than on-base FI’s Advertising…off –base FI’s are not permitted to distribute Advertising…off –base FI’s are not permitted to distribute

competitive literature or forms on base competitive literature or forms on base Fin education training will be provided without charge Fin education training will be provided without charge

SupportSupport

The Department… The Department… Social CompactSocial Compact– Financial Readiness CampaignFinancial Readiness Campaign– Military Saves CampaignMilitary Saves Campaign– Financial Readiness ChallengeFinancial Readiness Challenge– Moneywise RoadshowMoneywise Roadshow– Financial Readiness Partners Financial Readiness Partners …such as…such as

AFCPEAFCPE BBB Military LineBBB Military Line CFA…Military SavesCFA…Military Saves AMBAAMBA DCUCDCUC

SupportSupport

SupportSupport

• safety and soundness• $250K insurance per qualifying account• share insurance extended to Dec 2013 • not one penny of insurance has ever been lost by a member of a federally insured credit union

DCUC SupportDCUC Support

• 20-page booklet offering financial advice• comprehensive guidance on diverse personal finance topics• booklet to be distributed free to more than 700,000 servicemen and women worldwide• DCUC will co-sponsor

Kiplinger and BBB Military LineKiplinger and BBB Military Line

DCUC SupportDCUC Support

• a weekly one-hour program • airs Sundays at 3:00 p.m. EST via Radio America• carried by Armed Forces Radio & Television Service• host Paul Berry talks to consumer and money experts, to include DoD and DoD’s Financial Readiness Partners• produced by CUNA; presented by America’s CU’s• DCUC to co-sponsor in 2009

DCUC SupportDCUC Support

• Quarterly publication providing financial advice• covers the gamut of consumer topics• produced by CUNA; personalized for DCUC• promotes Military Saves quarterly themes• DCUC will coordinate to provide copies to PFM

DCUC SupportDCUC Support

• Financial Readiness starts at HFFRC…adding to dcuc.org website• plethora of financial advice and information• another excellent resource for PFMs, troops, DoD Civilians & their families• produced by CUNA and offered to DCUC

DCUC SupportDCUC Support

• Department of the Navy Moneywise Roadshow • DoD Joint Financial Readiness Conf Exhibit Hall• DoD Joint Financial Readiness Showcase • DoD Military Pre-Conference

Moving ForwardMoving Forward– Environment…Environment…VUCAVUCA

– Support… Support… strong from all levelsstrong from all levels

– DCUC… DCUC… steady as a rocksteady as a rock

DCUC remains committed and supportiveDCUC remains committed and supportive DCU’s remain focused on promoting DCU’s remain focused on promoting

morale and welfare…supporting our morale and welfare…supporting our troops’ financial needs…enhancing troops’ financial needs…enhancing financial readinessfinancial readiness

SummarySummary

Bottom Line...Bottom Line...

Leadership Leadership

isis

ESSENTIALESSENTIAL

PFMsPFMs

areare KEYKEY

AccountabilityAccountability andand

ResponsibilityResponsibilityare a are a

MUST!MUST!

Defense Credit Union Council“Serving Those Who Serve Our Country”

Questions?