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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

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

In this IssueInternational ConsumerLending ........................................1

Business Lending: New Ruleto Expand Enterprise Lending ........................................2

Credit Union Employee Retention .....................................3

Checklist for Credit Union Compliance .................................4

7 Items to Improve your Golf Game ............................................4

How to Shop for a New Data Processor ....................................6

How Enticing & Simple is Your Membership Application Process? .....................................7

The Lending OlympicsAdvantage

MarketingServices

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Michigan is at the forefront of a movement that could impact credit unions in the coming years. The shift involves diversification of lending to include more commercial loans, rather than substantially relying on auto and home mortgage products, as they have done in the past. It is a move that is already occurring, and the shift could yield an overall increase in commercial lending. So, why is Michigan leading the pack?

Why Commercial Lending is on the RiseAs it happens, there are a few factors at play. First, the state’s banking industry was hit hard during the recession. Federal and state regulators shut down many community banks. Banks that survived the hit saw commercial lending come to a screeching halt. This blew the door wide open for credit unions to enter the market, and they did.

Take the case of DFCU. The recession exposed an underserved warm market to many credit unions, and the DFCU was quoted as seeing a chance to take advantage of it, though apparently reluctant at first. Specifically, Mark Shobe, president and CEO of DFCU, was reported as being resistant to commercial lending. Reportedly, he fought it for years, preferring to stick to more traditional bread-and-butter loans, such as for vehicles and homes. However, DFCU took a survey of its members and found that approximately 8,000 or more were business owners. “We already had 8,000 leads and that was a good place to start,” says Mark. “If you like us as a customer, we already have your attention.”

The second reason for the shift toward commercial lending has to do with a unanimous final ruling by the NCUA board to approve member business lending. The ruling amends part 723 of the NCUA rules and regulations surrounding the issue of federally insured credit unions, creating member business

loans (MBLs). Of interest in the final rule, is that in certain instances and circumstances, credit union loan officers will not require the member to provide a personal guarantee.

Both of these factors have opened the door to a more traditional commercial lending approach with regard to credit union membership, and have the potential to increase member business lending. The trend is already starting to occur nationwide, as other states are waking up to the potential offered by the ruling and recession.

What About Forms? So what does this mean for your forms? Our business and commercial forms package is the perfect complement to the process. The final ruling has no bearing on the Oak Tree forms package. They are compliant with all state and federal regulations, and of course, they easily integrate with any data processor. Furthermore, our forms can be customized, so brand consistency is not an issue. As commercial lending increases, it’s good to know you have compliant forms to make the process smooth and worry free. That’s our commitment to you. If you have questions or if you need forms, don’t hesitate to contact us at . We are ready to meet your needs and help expand your business.

Business Lending: New Rule to Expand Enterprise LendingGenelle Rich-Buscemi, President

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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 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 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.

focus is to protect the consumer from harm, while enhancing the 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

International Consumer Lending(Continued from Page 1)

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Nothing makes business flow more smoothly than great employees. They are the oil of every successful credit union machine. Knowing who they are and how to keep them is paramount, because good employees make members feel safe, valued, and secure. It is also a testament to the management of the credit union. Let’s spend a few minutes to talk about what it takes to find and keep great employees.

Identify Your Keepers. For starters, you need to know how to identify a “keeper.” You know, those employees that every organization wants? They are easy to spot. “Keeper” employees typically have smiling faces, great work ethics, and a can-do attitude. They are always willing to go above and beyond, yet be honest as well. If they need help, they are never shy about asking because they know they do such a great job to begin with.

Keeping Great Employees Happy. So how do you keep those types of employees happy? It’s easier than you think. Consider the following ideas.

Offer Something New. Offer great employees a new position. The move might be a lateral one within their

skill set, yet a step up from their current pay. This gives them more responsibility and also allows them to rise to their full potential.

Also, be sure to give incentives. You might consider doing this by hosting a contest to keep ideas new and fresh. It’s also a great way to provide positive reinforcement and show these employees just how valuable they are to your organization.

Equip Them. Beyond that, there are a couple of things you can do to keep great employees happy that will cost you very little. Make sure they have a stable working environment, for one. That is key. Employees always operate best when they feel the company is secure, and management is sound.

Secondly, be sure to give them effective work tools, which includes teaming up with the very best outsourced vendors. Work areas should present well, and office supplies should never run dry. And, forms provided by Oak Tree are crucial, as they reassure your employees that they have the very best resources at hand. Oak Tree forms make handling transactions so much easier. Of course, Oak Tree will keep you well supplied with forms that are current and up to date. Compliant forms give employees the confidence they need to do the job they love to do.

Keeping good employees always yields the best return for credit unions. Treat them well, and they will be with you for many years.

Credit Union Employee RetentionRich Gallagher, CEO

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Credit Union Employee RetentionRich Gallagher, CEO

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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.

Who couldn’t use a little help with their golf game? Oak Tree has you covered with seven tips to help you “fake it ‘til you make it.” Consider it our personal cheat sheet for how to nail those important shots.

Know Your Weaknesses. To do this, you are going to need to track your game. Simply make sure you have simple statistics like fairway hits, short game ups and downs, total putts, and greens in regulation, that sort of thing. From there, you can make improvements. You might consider employing the services of something like shotbyshot.com to help you track your stats electronically.

Improve Your Drive. Posture is important if you want to improve your drive. Make sure you have an athletic stance (your feet just wider than shoulder

7 Items to Improve your Golf GameMarketing Department

Continued on Page 5

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

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width apart). The position resembles a defensive basketball stance – just not quite as low.

Improve Your Chipping. Remember, the goal with the chip shot is to get the ball on the green with very minimal roll. This means using a wedge is typically the best choice if you are close. However, you can use other irons as well. Just make sure that you use more club than you think you will actually need to get the job done. There is always a tendency to underestimate.

Control Your Clubface. This is the single biggest determinant that separates the pros from the amateurs. Remember common mistakes. Most amateur golfers will open up their clubface too much on the backswing, or keep it open too long on the downswing. To combat this, simply assume a standard grip and try to twist your bottom half, or the right hand, so it is facing away from you during the backswing. Practice follow-through and solve your clubface control problems.

Read the Green. This is also crucial to lending a great product! It’s all about predicting which way the ball will break when you make the putt. Remember, the later it gets in the day, there are greater tendencies for areas of the grass to lean towards the sunset.

Remember to Rotate. This is the engine for your golf swing, essentially. The speed and power come from swinging and rotating your torso, rather than your arms and legs. Given that you already know how to swing properly, make sure to address this mentally before you perform each swing. It will improve your distance and accuracy.

Nailing the Putt. There are a couple of keys here. The first is stance. Make sure it is solid, with your feet shoulder width apart (or a bit wider). Next, make sure you grip your club firmly (think of it like holding your toothpaste if you had the lid off, but not trying to squeeze any out). Beyond that, make sure your entire lower body is in a mobile position.

If these help you turn pro, remember it was Oak Tree that put you on the map! As always, if we can be of assistance in any way, please reach out. Thank you for being our loyal customer. We look forward to serving you now and for many years to come. Chat with us .

7 Items to Improve your Golf Game(Continued from Page 4)

FINANCIAL NEEDS

MARKETING

FLEXIBILITY

E-SIGNATURE

Member Goesto Credit Union

The Loan isSigned

Member Receivesthe Money

Member Needs Money

FORMS/DATA LINKING

Credit Termsare Determined

With the help ofmarketing servicesfrom Oak Tree,Members will bedrawn 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!

THE LENDING PROCESS

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.

Cost. This one can be tricky. Notice we mentioned cost, and not price. You may find a product that is priced cheaper, but could actually cost you more in the long run. If certain capabilities (like forms integration) are not part of the package, then you could potentially spend more on labor down the road. Ask questions, and always ask for a discount... especially if you are a new customer!

Time Frame and Training. How long will it take the data processor to make the switch and train your staff? This is one of the rare instances in business where time literally is money. You may not be able to afford having your system down for days in order to make the switch. Make sure you clarify beforehand, then communicate with staff and customers to keep frustration at bay.

Longevity. Will this system need to be upgraded every five years? Will it be obsolete in ten? Ask about longevity to prevent unnecessary spending in the future. You want to make sure your data processor can grow with you.

How to Shop for a New Data ProcessorJeff Osburn, Director of Client Services

How to Shop for a New Data ProcessorRachel Mayson, Director of Data Services

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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

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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 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 covered all the bases regarding 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 do to make sure our forms contribute to making your membership process as simple and attractive as possible.

For marketing services inquires email us at MarketingServices@OakTreeBiz.com.

For compliance support: Chat with us at www.OakTreeBiz.com Email ClientServices@OakTreeBiz.com

How Enticing & Simple is Your Membership Application Process?Jeff Osburn, Director of Client Services

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