How Navy Federal Keeps Service Members’ Finances In Shipshape

In military life, alliances often provide key support to those on the front lines, helping them stay safe and be prepared for unexpected developments.

The same can be said of the financial services sector, where a series of new partnerships have emerged among credit unions (CUs). These new alliances and collaborations aim to provide members with a broader range of services to navigate their financial lives.

In the August/September Credit Union Tracker, PYMNTS follows the latest developments in the credit union market, including recent collaborations from around the space.

Around The Credit Union World

Talk about a case of strange bedfellows. In Michigan, a group of credit unions recently joined forces to form a new financial institution (FI): a bank.

Seven Michigan-based credit unions recently applied to establish a new limited-purpose bank, known as Credit Union Trust. The new bank  backed by Community Choice Credit Union, Alpena Alcona Area Credit Union, ELGA Credit Union, Frankenmuth Credit Union, Honor Credit Union, Members First Credit Union and Team One Credit Union  is aiming to get regulatory approval and make its full debut by the first quarter of 2019.

The partnering CUs plan to provide trust services to the group’s approximately 424,000 collective members. The move will also enable the credit unions to provide wealth management services, something they cannot currently do. Beyond the potential for CUs to create a new bank in Michigan, CUs and banks are coming together to advocate for greater financial data protection.

The Credit Union National Association (CUNA) and several banking advocacy groups  including the American Bankers Association (ABA), Consumer Bankers Association (CBA) and Independent Community Bankers of America (ICBA)  recently lobbied the House Energy and Commerce Committee’s Subcommittee to consider new regulations aimed at improving the safety and security of existing payment systems. The group sent a joint letter to Rep. Bob Latta (R-Ohio), the committee chair, urging regulation that would force financial firms to provide “relief to victims” of data breaches and more flexible data protection solutions.

Meanwhile, Alterna Savings & Credit Union recently turned to a new partner to make receipt management a bit simpler for members. The CU recently collaborated with receipt solutions provider Sensibill to unveil a new solution, known as MyReceipts, which aims to help members track spending habits and prepare for future expenditures.

Arming Military Members With Financial Education

The unpredictable lifestyle of military members, including deployments and transfers to new locations, can make financial planning exceptionally challenging. Adding to the challenge is the fact that military members’ highly mobile lifestyles makes it challenging for a spouse to remain employed, making many families dependent on one income and vulnerable to risky financial decisions.

To help military members stay vigilant against potential financial pitfalls like payday loans, Navy Federal Credit Union (NFCU) works to educate military members about the importance of financial planning and provides them with the tools to stay on steady financial footing. For the August/September feature story, Jaspreet Chawla, NFCU’s vice president of membership, discusses how cultivating healthy financial habits early on can be the most valuable weapon that military members need to make informed financial decisions.

To read the full story, download the latest Credit Union Tracker.

About The Tracker 

The Credit Union Tracker™, powered by CO-OP Financial Services, is the go-to resource for staying up to date on a month-by-month basis on the trends and changes in the credit union industry.