NAFCU Journal January February 2023

ALSO INSIDE Buy Now, Pay Later Regulation E Update January–February 2023 2023 Legislative Outlook Predicts More Compromise

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3 THE NAFCU JOURNAL January–February 2023 16 12 FEATURES 12 2023 Legislative Outlook Predicts More Compromise Consumers and credit unions benefit from dual-party control 16 How to Navigate Fraud in a Digital World AI tools and people work together to mitigate risk 21 NAFCU 2023 Vendor Directory COLUMNS 5 Conferences 6 From the Chair 8 Washington and Industry Briefs 10 The Bottom Line 36 Inside NAFCU Services 38 Management Insight 40 Executive Spotlight 42 Leadership Download 44 Compliance Central 46 From the President’s Desk 21 January–February 2023 • Volume 48, Number 1 The NAFCU Journal (ISSN 1043-7789) is published bimonthly every other month. Jan–Feb 2023, Volume 48, Number 1. Published by the National Association of Federally-Insured Credit Unions, 3138 10th Street N., Arlington, VA 22201-2149. Periodicals Postage Paid at Arlington, VA, and at additional mailing offices. POSTMASTER: Send address changes to The NAFCU Journal, NAFCU, 3138 10th Street N., Arlington, VA 22201-2149. The opinions and ideas appearing in this magazine are not necessarily representative of policies of NAFCU. Manuscripts and advertisements are welcome, although NAFCU reserves the right to edit manuscripts and refuse advertisements. Contact publisher for advertising information and rates. Appearance of an advertisement does not imply endorsement or guarantee of the advertiser’s claims. For subscription or advertising information, call 800-336-4644 or 703-522-4770. Email: nafcu@nafcu.org; website: www.nafcu.org. ©2023 National Association of Federally-Insured Credit Unions, all rights reserved. NAFCU 2023 VENDOR DIRECTORY

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5 THE NAFCU JOURNAL January–February 2023 CONFERENCES 2023 Calendar of Events Spring Regulatory Compliance School Mar. 13–17, in-person in Arlington, VA Strategic Growth Conference Mar. 21–23, in-person in Nashville, TN Board of Directors and Supervisory Committee Conference Apr. 17–20, in-person in Savannah, GA CEO & Senior Executives Conference May 17–19, in-person in Charleston, SC Summer Engage 2023: NAFCU’s Annual Conference June 27–30, in-person in Long Beach, CA BSA School Aug. 15–17, in-person in Louisville, KY Risk Management Seminar Aug. 15–17, in-person in Louisville, KY Congressional Caucus Sept. 10–13, in-person in Washington, DC Fall CFO Summit Sept. 19–21, in-person in Las Vegas, NV Regulatory Compliance & BSA Seminar Sept. 26–28, in-person in Savannah, GA or Virtual Management and Leadership Institute Oct. 23–27, in-person in Annapolis, MD Lending Conference Nov. 7–9, in-person in New Orleans, LA For more information about NAFCU’s conferences, go to www.nafcu.org/conferences. Looking for more educational opportunities? NAFCU’s Online Training Center has been redesigned to give credit union professionals easier access to the association’s training programs and library of webinars. For information and the current schedule of upcoming webinars, visit www.nafcu.org/ onlinetraining. Topics and dates subject to change. DIRECTORS Gary A. Grinnell, Chair Corning FCU (NY) Brian T. Schools, Vice Chair Chartway FCU (VA) Karen Harbin, Treasurer Commonwealth CU (KY) Lonnie Nicholson, Secretary EECU (TX) Melanie Kennedy Southwest Financial FCU (TX) James A. Kenyon Whitefish CU (MT) Frank Mancini Connex CU (CT) Keith Sultemeier Kinecta FCU (CA) Karen Rosales Arlington Community FCU (VA) Stephanie Sherrodd Sandia Laboratory FCU (NM) Eli Vazquez Bank-Fund Staff FCU (DC) EXECUTIVE STAFF B. Dan Berger President/CEO Anthony Demangone Executive Vice President/COO Meghan Small Vice President of Communications and Media Relations Greg Mesack Senior Vice President of Government Affairs Randy Salser President of NAFCU Services Corporation MAGAZINE STAFF Haley Schmitz Editor LLM Publications Editorial Services and Design ADVERTISING sales@nafcu.org www.nafcu.org/advertise

6 THE NAFCU JOURNAL January–February 2023 Reach out to those in the industry who are nearby or serve similar fields of membership. Network with other credit union professionals, collaborate on ideas and share knowledge with each other. We all believe in the mission of our industry and understand that the “Credit Union Difference” is real. We can help each other succeed. Gary Grinnell is president and CEO at Corning Credit Union in Corning, NY. Access more info about the member-only NAFCU Networks at www.nafcu.org/ nafcu-networks. FROM THE CHAIR COLLABORATION IS KEY By Gary Grinnell, NAFCU Board Chair For those of us in the credit union industry, most have a specific reason or story that brought us to this path—likely, the core theme is the same. For me, while working at a community bank early on in my career, I had a constant feeling that something was missing from a cultural and personal perspective. After I heard about an opening at Corning Credit Union, I applied, secured a position and quickly knew that I had found a home. That was more than two decades ago. I have been inspired by the credit union industry’s all-encompassing service- minded mission ever since. While being member-owned and operating under a cooperative model are key ingredients to the “Credit Union Difference,” what has since become one of my favorite things about our industry is how collaborative and supportive it is. Over the past 25 years, I have noticed that this mission goes beyond our ability to help our members and extends from credit union to credit union as well. We are here for a greater good. Our industry’s motto of “people helping people” goes much farther than I could have imagined, and it almost seems too good to be true that an environment like this exists within the financial services industry—where so many organizations find themselves competing to a fault or pushing for profits over people. The concept of sharing ideas at credit unions is not limited to team members of the same organization. I’ve personally learned a lot from my peers throughout the credit union industry, and although we might compete in some areas, I have found that everyone is willing to share lessons learned and strategies. It is true that, at our core, our goal is to propel our industry forward. And we cannot do that alone. We must work together. I encourage you to utilize all that NAFCU has to offer to connect with your peers. The association offers 13 events throughout the year to foster the collaborative spirit within our industry. The events promote industry growth, networking for industry professionals and the ability to expand knowledge on important topics. Another great place to connect with credit union professionals can be found online in the complimentary NAFCU Networks where you can engage in discussions with your peers in networking groups that are based on profession. It’s great to see someone pose a question to the network group about a challenge their institution is facing and have several peers offer their own experiences to help overcome those hurdles. Our voices are stronger together. When we work together to identify and advocate for issues that benefit our members, we help the industry as a whole.

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8 THE NAFCU JOURNAL January–February 2023 WASHINGTON AND INDUSTRY BRIEFS It’s hard to escape the never-ending talk about where the U.S. economy stands and where it’s headed. But at NAFCU, our overarching priority remains the same: to help the credit union industry continue to grow and succeed. It’s our mission and our north star. READY YOUR CREDIT UNION TO WEATHER 2023 By Greg Mesack, NAFCU SVP of Government Affairs Each report dives into the latest data from economic indicators in all facets of the economy, from retail sales and existing-home sales to consumer credit and the consumer price index, plus many more. Macroeconomic Data Flash Reports This monthly report combines the latest macroeconomic forecasts and insights along with trend data from NAFCU member credit unions through the Credit Union Sentiment Index—a monthly measure of credit union views on growth, loan conditions, and regulatory burden. Each issue also includes a survey to inform the special topic for the following issue. Economic & CU Monitoring The quarterly report helps credit unions stay up-to-date with the latest key trends within the industry based on National Credit Union Administration (NCUA) data and provides credit unions with greater perspective on their own credit union’s progress. The NCUA data is examined at the industry level and broken down by state and asset class. CU Industry Trends This report provides a thorough review of staff salary data for credit union industry positions by state and metropolitan statistical area. These files allow credit unions to view annual and hourly salary ranges for select positions, as well as historical median and pay growth rates, allowing them to benchmark staff salaries with other businesses with whom they are competing for top talent. Salary Comparison Report As we expect economic conditions to continue to fluctuate throughout 2023 in response to inflation, unemployment, supply chain shortages and more, NAFCU is working day in and day out to ensure you have the insights and data needed to successfully lead your credit unions through any economic storm. The NAFCU research team produces several monthly and quarterly reports that can help you accurately and effectively digest the latest data and the most recent trends that impact your credit union:

9 THE NAFCU JOURNAL January–February 2023 In addition, NAFCU offers members two quarterly reports to measure their credit union’s performance against their peers. The CU Performance Benchmark Report provides broad measures of a credit union’s financial performance and compares them against the credit union’s own regional and asset class peers. The Operating Expense Report drills down into a credit union’s non-interest expenses, comparing them with asset class averages and detailing where the credit union ranks amongst peers. These reports give credit unions a much-needed customized financial performance analysis based on member growth, earnings, asset quality, capital adequacy, employee compensation and much more. These reports and surveys not only provide insights to our credit union members, but also help inform our advocacy strategy when we meet with lawmakers and regulators. Sharing what you’re seeing on the ground and among your members will enhance our ability to make legislative and regulatory recommendations that strengthen the entire industry. As the nation continues to navigate the unknown, NAFCU is here to help you guide your credit union. Utilize these reports as you create your roadmap through what may be a bumpy road ahead. NAFCU’s Grassroots Action Center allows credit unions to easily find their polling location, search for local candidates and more. Take advantage of this resource ahead of the upcoming election by visiting www.nafcu.org/grassroots. “It’s hard to escape the never-ending talk about where the U.S. economy stands and where it’s headed. At NAFCU, our overarching priority remains the same: to help the credit union industry continue to grow and succeed.”

10 THE NAFCU JOURNAL January–February 2023 THE LIQUIDITY BULLWHIP By Curt Long, NAFCU Chief Economist and Vice President of Research THE BOTTOM LINE Afeature of the COVID economy has been sudden, sharp changes in critical areas. The whipsaw behavior of supply chains, prices and interest rates makes financial management and forecasting extremely challenging. For credit unions and banks alike, liquidity is another area where conditions are changing rapidly. A survey of NAFCU members conducted in late August 2022 indicated that liquidity risk concerns were higher than at any point in recent history.1 This follows a period in 2020 and 2021 when financial institutions were awash in deposits and dealing with resulting dilution of their net worth. The suddenness of the change in liquidity conditions is prompting questions. Why did conditions change so quickly, and what that might mean going forward? Federal Reserve economists provided their perspective in two publications. A June 2022 study reviewed the extraordinary rise in bank deposits in the early stages of the pandemic. The authors cite four reasons for the explosive growth:2 ■ First, loan growth surged in 2020 as businesses drew upon their lines of credit. The old adage holds that loan creation results in new deposits as borrowers either stash their funds themselves or create deposits for others via consumption. Total business sector borrowings in the first half of 2020 were more than three times greater than in the first half of 2019.3 ■ Second, the asset purchases associated with the Federal Reserve’s monetary policy implementation created deposits under certain conditions. Where the Federal Reserve purchased Treasuries and mortgage-backed securities from institutions with reserve accounts, those transactions represented a simple swap of one asset (securities) for another (central bank reserves). However, purchases from nonbanks do create new deposits. ■ The other two deposit-generating impulses—fiscal stimulus and higher personal savings rates— were abundantly clear to credit unions as deposit surges peaked with the distribution of stimulus checks and account outflows slowed while the economy was shut down. 2020 2021 2022 Stock of Excess Household Savings (in $billions) $2,500 $2,000 $1,500 $1,000 $500 $0 Source: Aladangady et al.

11 THE NAFCU JOURNAL January–February 2023 References 1. NAFCU, 2022 Report on Credit Unions, accessible at https://www.nafcu.org/data-tools/nafcu-report-credit-unions. 2. Castro, Andrew, Michele Cavallo, and Rebecca Zarutskie (2022). “Understanding Bank Deposit Growth during the COVID-19 Pandemic,” FEDS Notes. Washington: Board of Governors of the Federal Reserve System, June 06, 2022, https://doi.org/10.17016/2380-7172.3133. 3. Financial Accounts of the United States, Board of Governors of the Federal Reserve System, accessed November 22, 2022, at: https://www. federalreserve.gov/releases/z1/. 4. Aladangady, Aditya, David Cho, Laura Feiveson, and Eugenio Pinto (2022). “Excess Savings during the COVID-19 Pandemic,” FEDS Notes. Washington: Board of Governors of the Federal Reserve System, October 21, 2022, https://doi.org/10.17016/2380-7172.3223. A review of these factors shows the breadth of economic forces driving the rise in deposits early in the pandemic. Households, businesses and the Federal Reserve each had a part to play. However, each sector is now contributing to the reversal. The Fed’s balance sheet reduction is well underway. Commercial and industrial loans were down over 8% from their peak as of October. And fiscal support for households is ebbing as they resume pre-COVID spending patterns. A study from October 2022 focuses on household saving behavior and attempts to estimate the accumulation of excess savings over the course of the pandemic.4 While numerous such efforts have been attempted, the Federal Reserve economists’ approach is novel in that it disaggregates savings by income quartile and identifies the factors behind the savings growth. As of mid-2022, the researchers estimated that each income quartile still had positive excess savings, but that they were receding quickly. Not surprisingly, for low-income households this was primarily due to curtailment of fiscal support. High-income households tended to cut expenditures early in the pandemic but have since ceased to do so, resulting in the erosion of their excess savings. One notable element that has dampened growth in disposable income (and, by extension, savings), has been a sharp increase in taxes. Based on the authors’ calculations, tax payments in the four quarters ending June 2022 were over $600 million above the pre-COVID trend. This points to another possible explanation for the ebbing of deposits at a system-wide level. If fiscal stimulus created rapid deposit growth, higher taxes coupled with reduced government spending may be playing a large part in leeching deposits from the economy. More insights from the NAFCU Research Team can be found on the NAFCU website at www.nafcu.org/data-tools.

2023 Legislative Outlook Predicts More Compromise Consumers and credit unions benefit from dual-party control By Sheryl S. Jackson 12 THE NAFCU JOURNAL January–February 2023

Voter turnout for the November 2022 elections set records for a midterm, and now that all of the television ads, direct mail pieces and social media posts have disappeared, the outlook for legislative and regulatory actions throughout the next two years is positive. “The results of the 2022 midterm elections were a net benefit for credit unions,” said Greg Mesack, senior vice president of government affairs at NAFCU. When the different branches of the government are controlled by different parties, everyone is forced to work together, he explained. “This prevents excessive action because each side must compromise.” As an example of the risk of single-party control, Mesack pointed to the IRS reporting provision originally included in the Build Back Better Act that would have required financial institutions to provide information on any account with transactions of $600 or more. “This would have been a massive invasion of privacy of our members as well as an immense task for credit unions to manage. Fortunately, the provision did not make it into the final bill, but it was a single vote that stopped it,” he said. 13 THE NAFCU JOURNAL January–February 2023

14 THE NAFCU JOURNAL January–February 2023 “From the credit union perspective, our industry enjoys broad bipartisan support, which means we’ll continue to see different bills moving forward,” said Brad Thaler, vice president of legislative affairs at NAFCU. “It will be difficult to pass bills into law with the tight margins in each house, but bipartisan support in the House gives bills a chance in the Senate.” Even with bipartisan support, Thaler does not anticipate any major reforms in regulatory relief, but does believe that smaller changes might provide relief in some areas. “Another area with support from most lawmakers is fintech and cryptocurrency,” he said. “We should see some consensus building early in the session around stablecoin oversight bills that have been introduced.” Another issue that does not break along party lines is privacy and data security, said Thaler. “These issues are less partisan and there is always more debate to reach a consensus,” he said. “We’re keeping an eye on proposed legislation that could affect credit unions.” One continuing issue is the discussion related to interchange fees. “We are watching proposed legislation on routing requirements for credit card transactions carefully, but the change in House leadership will hopefully make that bill harder to get across the finish line,” said Ann Petros, NAFCU’s vice president of regulatory affairs. A positive aspect of the Republican- controlled U.S. House of Representatives is the oversight of regulatory agencies such as the National Credit Union Administration and the Consumer Financial Protection Bureau. “We anticipate more discussion of regulatory relief for credit unions in the upcoming years,” added Mesack. Petros agreed and said, “Republican oversight will provide the necessary guardrails for the CFPB. This should reduce the amount of rule-making by press release and result in the agency following the rule-making process.” An issue that NAFCU is following and commenting on is a proposal to reduce the safe harbor for late fees, said Petros. “CFPB is looking at various revenue streams including late and overdraft fees and financial organizations that are dependent on these fees for revenue— taking advantage of consumers,” she said. The challenge for credit unions is the fact that they already have the lowest available fees and eliminating or cutting them makes it impossible to be compensated for the time, staff and technology needed to collect monies due, she explained. NCUA Leadership to Change A Democrat-controlled Senate will affect NCUA leadership. “Rodney Hood’s term on the NCUA Board expires in 2023, so it is likely that a Democrat will be quickly confirmed to replace him,” said Petros. The current Board is comprised of two Republicans and one Democrat, which means the replacement will leave one Republican on the Board. “We expect the change to usher in enhanced focus on fairness and equity, which will likely be reflected in supervisory priorities,” she said. “We also are watching to see what it means for the NCUA budget. Will more money be required from credit unions in 2024/2025?” NAFCU is focused on new requirements to fund the agency’s operations budget because every dollar a credit union sends to NCUA is one less dollar to help add new services for members, she explained. A shift on the NCUA Board also changes the dynamic surrounding another issue— third party vendor authority. While the agency would like to directly examine third party vendors used by a credit union, a congressional amendment to the Federal Credit Union Act. “Chairman Todd Harper has tied the issue to cybersecurity, but NAFCU believes that it is unnecessary, and duplicates work already done by other agencies,” said Petros. “The Federal Financial Institutions Examination Council (FFIEC), of which NCUA is a member, provides access to that information that is gathered by other regulatory agencies.” Overall, the results of the midterm election have the potential to benefit credit unions and consumers, said Petros. “The checks and balances of a divided government should result in legislation that considers the needs of citizens and small businesses due to the need for negotiation and compromise to move the ball forward. This is a more productive approach that creates good bills with a positive outcome for everyone.” “ From the credit union perspective, our industry enjoys broad bipartisan support. It will be difficult to pass bills into law with the tight margins in each house, but bipartisan support in the House gives bills a chance in the Senate. ” BRAD THALER, VICE PRESIDENT OF LEGISLATIVE AFFAIRS, NAFCU “ The checks and balances of a divided government should result in legislation that considers the needs of citizens and small businesses due to the need for negotiation and compromise. ” ANN PETROS, VICE PRESIDENT OF REGULATORY AFFAIRS, NAFCU

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HOW TO NAVIGATE IN digital world A AI tools and people work together to mitigate risk By Sheryl S. Jackson 17 THE NAFCU JOURNAL January–February 2023

18 THE NAFCU JOURNAL January–February 2023 Fraud monitoring throughout the financial system proved challenging in 2020 and 2021 as economic programs designed to provide relief and stimulate the economy were rapidly deployed. While programs like enhanced unemployment payments and the Paycheck Protection Program are no longer providing targets for fraudsters, the aftermath of pandemic-era behavior has created new challenges. “One of the lasting effects of the pandemic is the comfort level with online transactions for all of our members,” said Stephanie Painter, BSA manager at DuPont Community Credit Union. “Even though foot traffic in our branch offices is back to normal, we have seen a significant increase in members who are using online services on a more regular basis.” The number of members using online services not only grew at DuPont, but the credit union also grew, which meant new members and an increased volume of online transactions, said Painter. “These increases mean a greater need to monitor online activity.” “NAFCU’s compliance team has noticed an increase in the number of fraud questions we receive,” said Nick St. John, director of regulatory compliance at NAFCU. “We help members interpret the regulations for different types of fraud by researching their issue and for Lafayette Federal Credit Union. A synthetic identity account is “grown” over time, using a name with a different social security number and different birth date. “The profile is created, then applications for credit or small loans are made until eventually an institution takes a chance and gives the applicant a loan,” she explained. Once the small loan is paid, applications for more credit are made with more institutions approving the applications based on the payment history. “It takes about two years to grow an identity and acquire the large dollar loan or credit line that is the fraudster’s goal.” Even traditional identity theft has become more complex to monitor, said English. “Most identity theft fraud is a result of a data breach, but criminals know that organizations provide one year of monitoring to victims of the breach, so they sit on the information for one to two years before using the “ NAFCU’s compliance team has noticed an increase in the number of fraud questions we receive. We help members interpret the regulations for different types of fraud by researching their issue and providing sources of information to help them comply with those regulations. ” NICK ST. JOHN, DIRECTOR OF REGULATORY COMPLIANCE, NAFCU providing sources of information to help them comply with those regulations.” The types of fraud questions have included everything from fraudulent checks to Zelle or other third-party payment providers to romance scams, said St. John. Some scams, including the tech support scam, are difficult for credit unions and their members. When members willingly give their information to the fraudsters, they are responsible for the loss, but credit unions don’t want to be in the position of either writing off a significant loss or potentially losing a member. “These type of scams are a loselose situation for both the credit union and the member,” he added. In addition to more traditional identity theft, where a criminal obtains the information necessary to take over another person’s account, synthetic identify theft poses special challenges for financial institutions, said Lynn M. English, senior vice president of risk management

19 THE NAFCU JOURNAL January–February 2023 information,” she said. In most cases, people don’t choose to pay for ongoing monitoring after the free period has expired, so they are vulnerable. “Credit unions must use artificial intelligence (AI) tools to monitor for complex fraud such as synthetic identity theft, but it is not always effective against theft following data breaches,” said English. “Because the breach provided all of the information typically used in questions used to test the identity of the person, the fraudsters have the answers.” There is no one-size-fits-all technology solution for credit unions, but automated monitoring provides a foundation for the most success—if standards are constantly reviewed and revised to reflect changing trends in fraud. “An automated monitoring program is not something you can set and forget,” said Painter. “The goalposts to mitigate fraud are constantly moving, so you must continually revise standards.” “ Most identity theft fraud is a result of a data breach, but criminals know that organizations provide one year of monitoring to victims of the breach, so they sit on the information. ” LYNN ENGLISH, SENIOR VICE PRESIDENT OF RISK MANAGEMENT, LAFAYETTE FEDERAL CREDIT UNION Although technology is a critical component of a fraud monitoring program, don’t forget to address the human element, recommended Painter. “We offer education to members on fraud, but we usually end up counseling them after the fact,” she said. Successful fraudsters present their scams as urgent and immediate because they don’t want their victims to think about what is being asked of them, so the best advice for members is the “five-second rule.” By telling members to take five seconds to think about the request and consider if it makes sense to them, people can protect themselves, she said. In addition to educating members and staff on how to identify potential scams or identity theft, make sure you have the right number of people monitoring fraud in your organization, said English. “Unfortunately, the compliance and fraud department is often viewed as a cost center, which means it is the last

20 THE NAFCU JOURNAL January–February 2023 FRAUD INFO RESOURCES Go to www.nafcu.org/compliance for links to blogs, articles, whitepapers and other sources of information on mitigating the risk of fraud and regulations related to fraud. RESEARCH DOCUMENTS RISE IN FRAUD In a NAFCU survey of members related to fraud, 42% of respondents reported a significant increase in fraud, and 100% reported at least some increase. Survey respondents also reported that card online transactions, along with check and P2P, were the payment channels most likely to correspond with an increase in attempted fraud over the past year. For all three channels, most respondents reported that the dollar amount of losses had also increased, and a subset (16%) observed losses for card online transactions increase over the past year by over 100%. Fraud involving online card transactions was cited by 42% of respondents as the most difficult type of fraud to prevent, followed closely by P2P (39%). NAFCU members can see a copy of the full report, at https://bit.ly/3Ykozdl. “ The old school fraud involved stealing checks from mailboxes and changing names on the check, but today online transactions provide the easiest way for fraudsters to get cash. Look at every service and program offered by the credit union and make sure you understand the inherent risk of each one. ” STEPHANIE PAINTER, BSA MANAGER, DUPONT COMMUNITY CREDIT UNION department to get new staff positions,” she said. “As you bring in new business, remember that you are bringing in more accounts and transactions to monitor.” While technology can help identify unusual activity, the actual investigation requires a person and time, said English. Over the next two years, she projects that she will add five to six people to her team that handles BSA and fraud activities. The first step to mitigating fraud is to remember that fraud is about getting cash, pointed out Painter. “The old school fraud involved stealing checks from mailboxes and changing names on the check, but today online transactions provide the easiest way for fraudsters to get cash,” she said. “Look at every service and program offered by the credit union and make sure you understand the inherent risk of each one.”

The 2023 Vendor Directory features new and returning service providers to help credit unions find the best products and services to better serve members and streamline operations. The Vendor Directory is also available via a dynamic online platform, accessible year-round at: www.nafcu.org/vendor-directory. NAFCU’s Vendor Directory is a valuable resource compiled to assist credit union executives in identifying, locating and sourcing credit union suppliers, their products and services. To locate vendors of a specific product or service, refer to the PRODUCT DIRECTORY on pages 22–23. Each product category identifies a list of suppliers. To obtain a specific company’s contact information, including website, turn to the VENDOR DIRECTORY on pages 24–32. NAFCU 2023 VENDOR DIRECTORY The vendors listed in this directory are not necessarily endorsed by NAFCU. These are paid advertisements. PREFERRED PARTNER NAFCU Services Preferred Partners can be easily identified by a shadow box around their listing. Preferred Partners have been designated by NAFCU Services as suppliers that are truly committed to credit unions and have undergone a rigorous evaluation process. 21 THE NAFCU JOURNAL January–February 2023

22 THE NAFCU JOURNAL January–February 2023 ACCOUNTING ARCSys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Nearman, Maynard, Vallez, CPAs . . . . . . . . . 29 AML/BSA AI Oasis, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 ARC Risk and Compliance . . . . . . . . . . . . . . . 24 SentiLink . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 ANALYTICS AI Oasis, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 ARCSys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Cook Solutions Group . . . . . . . . . . . . . . . . . . 25 CU* Answers . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Curinos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Open Lending . . . . . . . . . . . . . . . . . . . . . . . . . . 29 PSCU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 SAS Institute . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Sogolytics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 ARTIFICIAL INTELLIGENCE & MACHINE LEARNING AI Oasis, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Alacriti . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 DefenseStorm . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Personetics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Upstart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Velocity Solutions . . . . . . . . . . . . . . . . . . . . . . 32 BOARD SERVICES DDJ Myers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 E Space Communications . . . . . . . . . . . . . . . 26 Shanley Search Partners . . . . . . . . . . . . . . . . 31 BUSINESS DEVELOPMENT TUNGSTEN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 CLOUD COMPUTING Alacriti . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Amazon Web Services . . . . . . . . . . . . . . . . . . 24 Computer Services, Inc (CSI) . . . . . . . . . . . . 25 COMPENSATION & BENEFITS DDJ Myers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Gallagher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 COMPLIANCE Computer Services, Inc (CSI) . . . . . . . . . . . . 25 DefenseStorm . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Farleigh Wada Witt . . . . . . . . . . . . . . . . . . . . . . 27 F I R M Consulting Services, LLC . . . . . . . . . 27 Kaufman & Canoles, PC . . . . . . . . . . . . . . . . 28 Member First Mortgage . . . . . . . . . . . . . . . . . 28 Ncontracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Nearman, Maynard, Vallez, CPAs . . . . . . . . . 29 Oak Tree Business Systems, Inc . . . . . . . . . 29 OutSolve Affirmative Action Compliance . . . . . . . . . . . . . . . . . . . . . 29 Total Expert . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Velocity Solutions . . . . . . . . . . . . . . . . . . . . . . 32 Wolters Kluwer . . . . . . . . . . . . . . . . . . . . . . . . . 32 CONSULTING Allied Solutions, LLC 24 ARC Risk and Compliance . . . . . . . . . . . . . . . 24 Cherrywood Enterprises . . . . . . . . . . . . . . . . 25 Franklin Madison 27 Origence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 OutSolve Affirmative Action Compliance . . . . . . . . . . . . . . . . . . . . . 29 Pentegra . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Rochdale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Securian Financial . . . . . . . . . . . . . . . . . . . . . . 31 Sogolytics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 SRM (Strategic Resource Management) . . 31 TUNGSTEN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 UpStreme, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . 32 CORE PROCESSING CU* Answers . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 CREDIT & DEBIT CARD SERVICES Elan Financial Services . . . . . . . . . . . . . . . . . . 26 FIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Mastercard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 PSCU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 REPAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 CYBERSECURITY ARC Risk and Compliance . . . . . . . . . . . . . . . 24 Computer Services, Inc (CSI) . . . . . . . . . . . . 25 Cook Solutions Group . . . . . . . . . . . . . . . . . . 25 DefenseStorm . . . . . . . . . . . . . . . . . . . . . . . . . . 26 FIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Q2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 UpStreme, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . 32 DIGITAL & ONLINE BANKING Alacriti . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Amazon Web Services . . . . . . . . . . . . . . . . . . 24 Apiture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Blend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 CU* Answers . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Jack Henry™ . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 PSCU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Q2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Wolters Kluwer . . . . . . . . . . . . . . . . . . . . . . . . . 32 EDUCATION & TRAINING ARC Risk and Compliance . . . . . . . . . . . . . . . 24 Kaufman & Canoles, PC . . . . . . . . . . . . . . . . 28 Member First Mortgage . . . . . . . . . . . . . . . . . 28 FINANCE Federal Home Loan Bank of Atlanta . . . . . 27 Origence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 FORMS Oak Tree Business Systems, Inc . . . . . . . . . 29 Securian Financial . . . . . . . . . . . . . . . . . . . . . . 31 Sogolytics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Wolters Kluwer . . . . . . . . . . . . . . . . . . . . . . . . . 32 HUMAN RESOURCES Gallagher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 OutSolve Affirmative Action Compliance . . . . . . . . . . . . . . . . . . . . . 29 Shanley Search Partners . . . . . . . . . . . . . . . . 31 INFORMATION TECHNOLOGY Amazon Web Services . . . . . . . . . . . . . . . . . . 24 Aspire Systems . . . . . . . . . . . . . . . . . . . . . . . . . 25 Computer Services, Inc (CSI) . . . . . . . . . . . . 25 CU* Answers . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 E Space Communications . . . . . . . . . . . . . . . 26 FIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Persistent Systems . . . . . . . . . . . . . . . . . . . . . . 30 Personetics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 INSURANCE Allied Solutions, LLC 24 CUNA Mutual Group . . . . . . . . . . . . . . . . . . . . 25 Franklin Madison 27 Gallagher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Insuritas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 MemberCare . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Open Lending . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Securian Financial . . . . . . . . . . . . . . . . . . . . . . 31 PRODUCT DIRECTORY NAFCU 2022 VENDOR DIRECTORY

23 THE NAFCU JOURNAL January–February 2023 INVESTMENTS CUNA Mutual Group . . . . . . . . . . . . . . . . . . . . 25 Gallagher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 LendKey Technologies . . . . . . . . . . . . . . . . . . 28 Money Concepts International, Inc . . . . . . 28 Pentegra . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 LEGAL SERVICES Farleigh Wada Witt . . . . . . . . . . . . . . . . . . . . . . 27 Kaufman & Canoles, PC . . . . . . . . . . . . . . . . 28 LENDING Allied Solutions, LLC 24 Blend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Curinos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 CUNA Mutual Group . . . . . . . . . . . . . . . . . . . . 25 Federal Home Loan Bank of Atlanta . . . . . 27 Jack Henry™ . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 LendKey Technologies . . . . . . . . . . . . . . . . . . 28 Mastercard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 MemberCare . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Member First Mortgage . . . . . . . . . . . . . . . . . 28 Oak Tree Business Systems, Inc . . . . . . . . . 29 Open Lending . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Origence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Q2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 REPAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Securian Financial . . . . . . . . . . . . . . . . . . . . . . 31 Triad Financial Services, Inc . . . . . . . . . . . . 31 Upstart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Velocity Solutions . . . . . . . . . . . . . . . . . . . . . . 32 Wolters Kluwer . . . . . . . . . . . . . . . . . . . . . . . . . 32 MANAGEMENT & LEADERSHIP DDJ Myers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Rochdale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Shanley Search Partners . . . . . . . . . . . . . . . . 31 UpStreme, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . 32 MARKETING & COMMUNICATIONS Franklin Madison 27 Total Expert . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 TUNGSTEN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 MEMBER SERVICES Dovenmuehle Mortgage, Inc . . . . . . . . . . . 26 Elan Financial Services . . . . . . . . . . . . . . . . . . 26 MemberCare . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Member First Mortgage . . . . . . . . . . . . . . . . . 28 REPAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Sogolytics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 MERGERS & ACQUISITIONS E Space Communications . . . . . . . . . . . . . . . 26 Kaufman & Canoles, PC . . . . . . . . . . . . . . . . 28 TUNGSTEN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 OPERATIONS Cherrywood Enterprises . . . . . . . . . . . . . . . . 25 Curinos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Jack Henry™ . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Oak Tree Business Systems, Inc . . . . . . . . . 29 Velocity Solutions . . . . . . . . . . . . . . . . . . . . . . 32 PAYMENTS & PROCESSING Alacriti . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Dovenmuehle Mortgage, Inc . . . . . . . . . . . 26 Elan Financial Services . . . . . . . . . . . . . . . . . . 26 FIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Jack Henry™ . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Mastercard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Persistent Systems . . . . . . . . . . . . . . . . . . . . . . 30 PSCU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 REPAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 RECRUITING & STAFFING DDJ Myers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Shanley Search Partners . . . . . . . . . . . . . . . . 31 RETIREMENT Money Concepts International, Inc . . . . . . 28 Pentegra . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 RISK MANAGEMENT AI Oasis, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Allied Solutions, LLC 24 Cook Solutions Group . . . . . . . . . . . . . . . . . . 25 CUNA Mutual Group . . . . . . . . . . . . . . . . . . . . 25 Curinos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 DefenseStorm . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Farleigh Wada Witt . . . . . . . . . . . . . . . . . . . . . . 27 F I R M Consulting Services, LLC . . . . . . . . . 27 Ncontracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Open Lending . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Pentegra . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Q2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Rochdale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 SAS Institute . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 SentiLink . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 UpStreme, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . 32 SECURITY Amazon Web Services . . . . . . . . . . . . . . . . . . 24 Cook Solutions Group . . . . . . . . . . . . . . . . . . 25 E Space Communications . . . . . . . . . . . . . . . 26 VENDOR MANAGEMENT Farleigh Wada Witt . . . . . . . . . . . . . . . . . . . . . . 27 Ncontracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Rochdale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 SRM (Strategic Resource Management) . . 31

24 THE NAFCU JOURNAL January–February 2023 PREFERRED PARTNER PREFERRED PARTNER PREFERRED PARTNER PREFERRED PARTNER NAFCU 2022 VENDOR DIRECTORY A AI OASIS, INC. Catherine Lew, Vice President sales@ai-oasis.com (888) 227-7967 www.nafcu.org/patriotofficer AI OASIS® is the Artificial Intelligence Technology Center of the United AI Network, the nextgeneration Artificial Intelligence solution. United A.I. Network has tremendously raised the AML standard by tracking illicit proceeds to recover financial losses and identifying money launderers, terrorists and financial criminals in advance. Please watch the short video at the United A.I. Network website: www.ai-oasis.com/ UnitedAINetwork. Alacriti Kristen Jason, Marketing marketing@alacriti.com (908) 791-2916 www.alacriti.com Alacriti is a leading payments fintech dedicated to helping credit unions accelerate their digital payments transformation. Alacriti’s cloud-based platform, Orbipay, delivers: • The most customizable billing and payments (EBPP) solution for credit unions • A centralized multi-rail payments structure that connects to ACH, Wire, TCH RTP® network, Visa Direct and the upcoming FedNowSM Service • One unified platform that provides modern, consistent money movement experiences from P2P transfers to loan payments Allied Solutions, LLC Lesli Jameson, Director – Partners, Associations & Events lesli.jameson@alliedsolutions.net (972) 447-3723 www.nafcu.org/allied Allied Solutions is one of the largest providers of insurance, lending, risk management, and data-driven solutions to auto finance companies and financial institutions in the US. With their consultative approach and commitment to the market, Allied Solutions uses technologybased solutions customized to meet the needs of 4,000 organizations. Allied Solutions is headquartered in Carmel, Indiana and maintains several offices strategically located across the country. Allied Solutions is a wholly owned and independently operated subsidiary of Securian Financial Group. Together, Allied and Securian boast 100+ years of industry experience. Amazon Web Services Lian Carl, Sr. Manager aws-cu@amazon.com (855) 552-4463 www.nafcu.org/amazon-webservices AWS works with Credit Unions to unlock their potential. Whether your goal is to improve member services, achieve operational efficiency or strengthen your security posture, the Cloud drives innovation and growth for Credit Unions today and tomorrow. Apiture Jane Tague, SVP Marketing jane.tague@apiture.com (910) 499-0077 www.apiture.com Apiture delivers award-winning digital banking solutions to credit unions and banks throughout the United States. Our flexible, highly configurable solutions meet a wide range of financial institutions’ needs, from leveling the playing field with larger banks to enabling unique, digital-only brands. Through our APIfirst strategy, our clients can maximize the capabilities of their platform while preserving a seamless user experience. To learn more, visit www.apiture.com. ARC Risk and Compliance Lou Giordano louis.giordano@arcriskandcompliance.com (855) 272-5995 www.arcriskandcompliance.com ARC Risk and Compliance is a veteranowned award-winning specialized consulting firm that is dedicated to assisting credit unions maintain or improve their anti-money laundering (AML) and anti-terrorism compliance programs. We assist our clients by providing project-based consultative projects, including conducting model validations of their AML programs, AML risk assessments, AML software tuning and optimization, AML look-back reviews, and specialized AML staffing. ARCSys Scott Zimmer, Sales Manager szimmer@arcsysonline.com (757) 447-4673 www.nafcu.org/arcsys ARCSys provides dynamic loanlevel CECL allowance for credit loss software to Credit Unions and other financial institutions with customized models and forecasts.

25 THE NAFCU JOURNAL January–February 2023 PREFERRED PARTNER PREFERRED PARTNER Aspire Systems Kosala Muthupandi kosala.muthupandi@aspiresys.com (91) 9715502057 www.aspiresys.com Aspire Systems is a global technology firm serving as a technology partner for our customers. Our services include Software Engineering, Enterprise Application Services, Infrastructure and Application Support, Data and Analytics and Cloud Transformation. B Blend Naman Khan, Head of Marketing nkhan@blend.com (650) 550-4810 www.nafcu.org/blend Blend is the infrastructure powering the future of banking. Financial providers—from the largest banks, fintechs and credit unions to community and independent mortgage banks—use Blend’s platform to transform banking experiences for their customers. C Cherrywood Enterprises, LLC Craig M. Geisler, President cgeisler@cherrywoodenterprises.com (561) 508-7650 www.cherrywoodenterprises.com Cherrywood Enterprises is a buyer of charged off loan portfolios. Whether you have charged off auto loans, credit card accounts, consumer and commercials loans, overdraft accounts or even judgments, Cherrywood Enterprises will buy them! We have a streamlined process that is easy and compliant for your credit union! Please call us at (561) 508-7650 or email me direct at cgeisler@ cherrywoodenterprises.com. Computer Services, Inc. (CSI) Kevin Forrester, Senior VP Sales associations@csiweb.com (800) 545-4274 www.csiweb.com CSI’s advanced compliance software, risk management solutions and secure and interactive document distribution services help thousands of customers worldwide stay compliant with today’s top federal regulations, strengthen IT security against internal and external threats and remain securely connected with their customers. Learn more at www. csiweb.com. Cook Solutions Group Wade Fieber, Strategic Solutions Engineer wade.fieber@cooksolutionsgroup.com (801) 472-3408 www.cooksolutionsgroup.com CSG is the financial and commercial industry thought leader in Security, Retail Banking, & Managed Services. We take credit union’s complex problems and provide simple solutions. We provide the best customer service, combining technology and people, ensuring a great consumer experience is the end goal. From ATM/ITM/TCR sales, support, and service to enterprise security solutions and managed services, we make it happen! Think CSG First. CU*Answers Scott Collins, Executive Vice President sales@cuanswers.com (616) 285-5711 www.cuanswers.com CU*Answers is a 100% credit unionowned Cooperative CUSO, providing technology solutions for credit unions to grow and aggressively compete. This includes its flagship CU*BASE® processing system, available in either a SaaS or an in-house environment, leading edge self-service products, imaging and archival solutions, strategic planning, management consulting services, data analytics and much more. CUNA Mutual Group John Cassidy, Director, Credit Union System Relations john.cassidy@cunamutual.com (608) 665-5386 www.nafcu.org/cunamutualgroup CUNA Mutual Group believes a brighter financial future should be accessible to everyone. We work with financial institutions to protect and grow their businesses, offering commercial and personal insurance products, lending solutions, retirement plans, investment products, fintech solutions and marketing services. Learn more at www.cunamutual.com.

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