Solution Providers Offer Services During COVID-19 Crisis
by CUAD Communications
3/27/2020

 

These are unprecedented times – calling for new ideas and business solutions. As we are faced with the challenges of dealing with the COVID-19 crisis, these CUAD Business Solution Providers are offering services that can help you continue to succeed.

 

Tax-Exempt Munis for CUs? Something to Consider!

For obvious tax reasons, credit unions that get involved in the muni market normally keep to just taxable paper. However, the current disconnect in the tax-exempt muni market is offering absolute yields that cannot be touched in any taxable product. In just the past few days we have seen a five month GM Texas offer at 2% yield, and today we saw a give year GM Texas offer at 2.75%. These are absolute yields BEFORE calculating TEY (tax equivalent yield). Therefore, these bonds currently offer great value even for those investors who don’t have to factor taxes into their yield calculations.

Tax exempt munis may have more potential upside from a price performance standpoint over the long-term compared to taxable products. There was a market disconnect in 2008 from the Great Recession. Muni spreads blew out to 230/240% of treasuries as liquidity concerns hit the market. Within a year those spreads normalized to around 90% of treasuries – offering a huge potential price increase for bond holders. Right now, these bonds are trading around 300% of treasuries with the average spread going back to 2007 being just 91%.

It appears that tax-exempt paper currently offers big yield pickup and better potential price action versus many sectors that CU’s tend to invest in! If you would like to discuss strategy or see live tax exempt offers with absolute yields well above CDs and taxable municipals, contact Mark Baumann at The Baker Group mbaumann@gobaker.com or 405-415-7291

 

Member Access to Branch Services via Video During Covid-19 Restrictions.

CUNA Strategic Services’ alliance provider, POPi/o, is ready to help address this challenge and for a limited time, is offering a limited number of FREE video seat licenses per credit union to provide web-based video collaboration for your members to contact the credit union.

Deployment: POPi/o can get a credit union off the ground in the web version in as little as one week, depending on demand.

Training: There will be a brief training to get started with more in-depth group trainings in the weeks following.

Equipment:  POPi/o will only provide the software service but can provide recommendations on equipment needed such as webcams and headsets.  

Term of offer: 60 days.

Contract: There is a contract that is signed but it is a no obligation and no money contract.

Channels: This would be for the web-based services, mobile is not available with this offer.

Services can be used to:

  • Share financial documents, including photo ID;
  • Review and sign forms for authorizing new accounts and loans;
  • Confirm identity when initiating wire transfers and get the appropriate documents;
  • Share screen, share urls, and share static educational slides;
  • Transfers to other employees and bring other members on the call.

 

Text Messaging Platform for Member Communication. 

Eltropy, another CUNA Strategic Services Alliance provider will waive setup, implementation and platform fees for 90 days so that credit unions can use Eltropy’s - 1:Many Text Messaging capability to reach out to Employees and Members. The only cost the credit union will have to bear, is the "pass through" texting fees of $0.01/Text. This fee is paid by Eltropy to telcos (ATT, Sprint, Verizon etc.) for sending text messages. Eltropy and the credit union will sign a simple, 90-day "free" proof of concept (PoC) form to get started. Once the form is signed, Eltropy will create a separate texting "environment" for the credit union to use.



Be Wary of Home Worker Phishing Risks.

Last week the Department of Homeland Security issued a warning that many organizations should prepare for possible impacts of COVID-19, and consider alternate workplace options for their employees. Remote work options—or WFH for short—often require an enterprise virtual private network (VPN) solution to connect employees to an organization’s information technology (IT) network. The Infrastructure Security Agency (CISA) encouraged organizations to adopt a heightened state of cybersecurity. They also specifically noted that malicious cyber actors may increase phishing emails, targeting teleworkers to steal their usernames and passwords. Since that warning, many companies and organizations are now requiring their employees to work from home.

Working from home, users will need to maintain a measure of normalcy in business and social lives, even while many facets of life are changing all around us every day.

Learn more here - https://blog.knowbe4.com/at-home-workers-warned-of-phishing-risks.  

 

The offers from POPi/o and Eltropy are limited offers being presented on a first-come basis. KnowBe4 offers cyber security awareness training and CUAD members are eligible for a discount on services.   
 

To learn more about any of these products or services, please contact George McDonald 701.250.3942

 

 

 

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