International

annual report

World Council of Credit unions Victor Miguel CorroVice President, Worldwide Foundation for Credit Unions

Joshua FettingProgram Manager

Michael SuingProgram Specialist

partnerships program

2012

2010: January–December

executive Summary

2012 PARTNERSHIP ACTIVITIES

Total number of partnerships

21

New partnerships signed in 2012

5

Number of active partnerships in 2012

16

Total partnership activities 18

Number of World Council Supporters involved in partnerships program

49

Total press coverage of partnership activities

14

STUDY TOURS & TRAINING EVENTS

Total number of programs 16

Total participants 136

In 2012, World Council of Credit Unions added three new partnerships to its existing International Partnerships Program. The new partnerships were started between:

• Federación Nacional de Cooperativas de Ahorro y Crédito Financieras (FECOLFIN) of Colombia and the Maryland & District of Columbia Credit Union Association (MDDCCUA) • Federación de Cajas Populares Alianza of Mexico and Mountain West Credit Union Association • The New Zealand Association of Credit Unions (NZACU) and Central 1 Credit Union of Canada

The balance of 2012 was focused on signing up new partners and reengaging those organizations that had participated in the program in the past. In 2013, the program will shift its focus to putting together strong work plans for all new and existing partnerships. The partnerships program maintained its strong level of World Council Supporters with all 21 partnerships having at least one partner providing direct financial support to the program. There was a total of 49 financial supporters in the program in 2012, a rise of 12 supporters over last year.

Partnership activities and other events sponsored by the partnerships program received more than their share of media coverage. (See attached.) Articles and stories on international partners and departmental programs often appeared in league newsletters, CUNA’s News Now, Credit Union Magazine, Credit Union Times and, periodically, in non-U.S. financial and trade publications. The program’s efforts resulted in 27 news releases issued throughout the year. Fourteen of those news releases pertained to the International Partnerships Program, four others related to study tours and nine covered the International Credit Union Leadership Program.

World Council’s Customized International Training programs led to further success in 2012. World Council hosted a record number of 16 customized international training programs throughout the U.S., Canada and Costa Rica, serving 136 participants.

In addition, the partnerships program engaged six U.S. credit union, league and regulator volunteers in training events in Belize, the Dominican Republic, Paraguay, Panama and Russia.

The Worldwide Foundation was also granted a renewal of the U.S. State Department grant from the Bureau of Educational and Cultural Affairs, Office of Citizen Exchanges, to carry out the International Credit Union Leadership Program in 2013 and 2014, focusing on economic empowerment. The program falls under the Professional Fellows Program, which provides opportunities for industry employees and volunteers from foreign countries to participate in a credit union internship in the U.S. The program has a second component that allows their U.S. counterparts to intern in the selected foreign country. The 2013 and 2014 project will work with Costa Rica and Brazil.

In 2012, World Council’s International Partnerships Program supported 21 different partnerships:

SIGNED PARTNERSHIPS

1. Bahamas / Massachusetts

2. Belize / Catalyst Corporate Federal Credit Union

3. Brazil / Texas

4. Colombia / Maryland & DC Credit Union Association

5. Costa Rica / League of Southeastern Credit Unions

6. Dominican Republic / Wisconsin

7. Estonia / Virginia

8. Ghana / Jefferson Financial CU

9. Guatemala / California & Nevada

10. Jamaica / Texas

11. Mexico Alianza / Mountain West Credit Union Association

12. Mexico Caja Yanga / Servus Credit Union

13. New Zealand / Central 1 of Canada

14. Panama / Iowa

15. Paraguay / Minnesota

16. Peru / Vermont

17. Poland / Georgia

18. Puerto Rico / New York

19. Romania / Ohio

20. Russia / Louisiana, including Altai CU Association / Barksdale FCU

21. Trinidad & Tobago / Connecticut

The following reports outline what was achieved within each partnership.

Belize Credit Union League & Catalyst Corporate Federal Credit Union

Brazil SICREDI & Texas Credit Union League

Kathy Garner, Catalyst Corporate Federal Credit Union president/CEO; Maria Martinez, Boarder Federal

Credit Union president/CEO; and Courtney Moran, Texas Credit Union Foundation executive director, traveled to Belize City, Belize, to participate in the Belize Credit Union League Annual Convention and Banquet. At a separate educational session leading up to the convention, Moran discussed strategies and techniques for youth mobiliza-

The Brazil/Texas partnership had a very active year in 2012. In May, a delegation of eight Texas credit union

and league representatives traveled to Porto Alegre, Brazil, to visit SICREDI’s headquarters for the first time. The visit focused on SICREDI’s single brand model and consolidat-ed back office operations. The delegates spent a couple days meeting with top SICREDI executives to learn about

tion, as well as the importance of instilling sound financial education at a young age. During the convention, Garner presented on U.S. credit union regulations, the corporate system and central liquidity facilities to an audience of credit union managers and board members. In addition, Martinez spoke about enterprise risk management and Boarder FCU’s new products and services. The confer-ence attracted 170 Belizean credit union personnel.

the theory behind the model and some of its inner work-ings. At the end of the visit, the group had the opportunity to visit the first SICREDI credit union located in the town of Novo Petropolis. The visit allowed the Texas representa-tives to see the model in action and speak with a SICREDI credit union CEO about managing a credit union within the model.

Colombia FECOLFIN & Maryland & DC Credit Union Association

One of 2012’s new partnerships was signed between the Maryland & DC Credit Union Association

(MDDCCUA) and the newly formed Colombian credit union federation, Federación Nacional de Cooperativas de Ahorro y Crédito Financieras (FECOLFIN). While in its infancy, the new federation is in need of technical assistance as Colombian credit union leaders look to build a cohesive movement within the country. A group of eight Colombian credit union leaders traveled to

Columbia, Md., to start the relationship and sign the partnership agreement. While in Maryland, they met with the MDDCCUA and its president/CEO, John Bratsakis, to learn about the association’s dues structure, revenue sources and lobbying programs. The group also met with credit unions in the area including Montgomery County Employees Federal Credit Union, PAHO/WHO Federal Credit Union and Mid-Atlantic Federal Credit Union.

Costa Rica (FEDEAC) & League of Southeastern Credit Unions

I n October, the trade association for Costa Rican credit unions, Federación de Cooperativas de Ahorro y Crédito

de Costa Rica R.L. (FEDEAC), hosted U.S. credit union professionals at their annual leadership conference in San José, Costa Rica. The annual conference united FEDEAC’s affiliated credit unions to emphasize cooperation amongst credit unions, leadership development, and address national trends in the Costa Rican credit union movement. Patrick La Pine, League of Southeastern Credit Unions & Affiliates president/CEO; and David Southall, Innovations Federal Credit Union president/CEO, formed the visiting delegation and presented to conference attendees on credit

unions’ use of technology to create greater efficiencies, improve security, enhance the member experience and attract new members. La Pine also spoke on the league structure and methods to enhance the working relationship amongst the league and affiliated credit unions. In addition to presenting at the conference, the delegation also visited FEDEAC member credit unions, including Coopenae, Coopeande No. 1 and Coopeservidores. To cap the visit, the representatives met with the Costa Rican legislative assembly and national regulators to discuss credit union regulations and contributions to socioeconomic development.

Dominican Republic AIRAC & Wisconsin Credit Union League

In 2012, four credit unions throughout Wisconsin partici-pated in the International Credit Union Leadership Pro-

gram (ICULP) by hosting Dominican credit union employ-ees for a month-long internship. The ICULP was made possible by a grant from the U.S. Department of State, Bureau of Educational and Cultural Affairs, Office of Citizen Exchanges for which the Worldwide Foundation for Credit unions was awarded in 2011.

The objective of the ICULP was to promote leadership abilities and best practices through an in-depth intern-

ship at a single credit union. The interns spent time with every department at their credit union learning about how each area works together to effectively serve its members. Wisconsin was chosen as one of the states to receive Dominican interns due to its partnership with the Domini-can credit union association, Asociación de Instituciones Rurales de Ahorro y Crédito (AIRAC). The Wisconsin credit unions that participated in the program were Sum-mit Credit Union, Taylor Credit Union, Glacier Hills Credit Union and Dane County Credit Union.

Estonian Union of Credit Cooperatives & Virginia Credit Union League

I n August 2012, a delegation of Virginia-based credit union and League representatives traveled to Estonia

as part of the ongoing partnership to help support credit cooperatives in the Baltic nation. The Virginia delegation of Juri Valdov, retired Northwest Federal Credit Union CEO; Alison DeTuncq, UVA Community Credit Union CEO; Stan Leicester, BayPort Credit Union senior vice president/CEO and league board member; and David Miles, league senior vice president, visited a handful of Estonia’s 20 credit co-operatives and attended the second Baltic Summit, which brought together credit union representatives from Esto-nia, Lithuania and Latvia.

The primary focus of the visit was to continue work on the Baltic Services Company, which is working towards a technology-based solution and service platform that will allow the nation’s credit cooperatives to plug into Eastern Europe’s central banking system. This would allow smaller cooperatives to offer members electronic access to their accounts, payment systems and ATM access. Located in mostly rural areas and focused on small business and ag-ricultural loans, Estonia’s credit cooperatives are growing and now boast about 3,500 members and roughly US$14 million in assets.

Guatemala FENACOAC/MICOOPE & California & Nevada Credit Union Leagues

Federación de Cajas Populares Alianza (Mexico) & Mountain West Credit Union Association

In 2012, six credit unions throughout California participat-ed in the International Credit Union Leadership Program

(ICULP) by hosting Guatemalan credit employees for a month-long internship. The ICULP was made possible by a grant from the U.S. Department of State, Bureau of Edu-cational and Cultural Affairs, Office of Citizen Exchanges for which the Worldwide Foundation for Credit unions was awarded in 2011.

The objective of the ICULP was to promote leadership abilities and best practices through an in-depth internship at a single credit union. The interns spent time with every department at their credit union learning about how each area works together to effectively serve its members. Cali-

I n 2012, a new partnership was formed between Mountain West Credit Union Association (MWCUA) and

Federación de Cajas Populares Alianza, a Mexican credit union association in Guanajuato, Mexico, representing 21 member credit unions throughout 11 Mexican states. The partnership will focus on strengthening Alianza’s member credit unions through the development of new products and services, as well as enhanced innovation, technology and overall business operations. Conversely, MWCUA is interested in exploring Alianza’s centralized back office operations and is eager to gain insight as to how to better serve Latino members.

fornia was chosen as one of the states to receive Guate-malan interns due to its partnership with the Guatemalan credit union federation, Federación Nacional de Coop-erativas de Ahorro y Crédito (FENACOAC). The California credit unions that participated in the program were Water & Power Community Credit Union, San Francisco Federal Credit Union, Family Federal Credit Union, Patelco Credit Union, SCE Cali Credit Union and Nikkei Credit Union.

In addition to the ICULP program, the California & Nevada Credit Union Leagues also hosted a contingent of MI-COOPE board members. The board members traveled to Ontario, Calif., to meet with the leagues and learn about their strategic planning process.

In September, the newly formed partners conducted their first exchange when seven representatives from Alianza traveled to Phoenix, Ariz., and Denver, Colo. Credit union visits included Arizona Central Credit Union (Phoenix, Ariz.); TruWest Credit Union (Tempe, Ariz.); and Denver Community Credit Union (Denver, Colo.).

New Zealand Association of Credit Unions & Central 1 Credit Union of Canada

Paraguay CENCOPAN & Minnesota Credit Union Network

S In 2012, the New Zealand Association of Credit Unions (NZACU) and Central 1 Credit Union of Canada

formally signed a partnership agreement and conducted a two-way, reciprocal exchange. Both confronted with the challenge of growing a credit union system while facing increasing competition and growing regulations, these developed systems turned to one another to find solutions to similar challenges.

During the partners’ first exchange, Henry Lynch, NZACU CEO; Simon Scott, NZACU chairman; and Jonathan Lee, NZACU general manager, traveled to Vancouver, Canada, to meet with Central 1’s Ron Rolfe, president/CEO; Linda Archer, senior vice president of marketing and human resources; and Richard Thomas, senior vice president of government affairs and corporate secretary, to take the first step in the partnership through an exploration of methods to raise awareness of credit unions and the

The partnership between Paraguay’s credit union association, Central de Cooperativas del Áreas

Nacional Ltda. (CENCOPAN), and the Minnesota Credit Union Network (MnCUN) included two activities in 2012. Mark D. Cummins, Minnesota Credit Union Network president/CEO; and Jason MacDonald, Central Minnesota Credit Union director of information technology, traveled to Asunción, Paraguay, to participate in CENCOPAN’s annual international seminar. MacDonald spoke about the importance of credit unions investing in technology, while Cummins underscored the importance of sound regulations through a presentation on the U.S. regulatory environment to over 300 conference attendees.

While in Asunción, the delegation also met with high-level government officials and shared best practices on information technology with individual credit unions. A goal of the credit union visits was to build confidence in information technology systems and convince credit unions that technology is a prudent investment. In the first of a series of government visits, the delegation met with

Vice President of Paraguay Luis Federico Franco Gómez. Gómez, a credit union member, stressed how strong and prosperous cooperatives are vital to the country’s continued economic growth. The delegation went on to meet with Paraguay’s Ministry of Justice and Labor and the Instituto Nacional de Cooperativismo (INCOOP), the national regulator of Paraguay, to discuss the business model of credit unions and how their focus on community and social development calls for a distinct set of regulations.

In October, Minnesota credit unions hosted five Paraguayan credit union delegates. The exchange continued the partnership’s focus on advocacy activities as well as uses of technology to provide better member service. Credit unions visited by the group included Hiway FCU, South Point FCU, St. Paul FCU and US Federal Credit Union. The Paraguayan visitors also learned about MnCUN’s structure, operating principals and how they add value to affiliated credit unions.

value they provide to the community. The New Zealand delegation also visited several Vancouver-area credit unions, including Aldergrove Credit Union, First West Credit Union, North Shore Credit Union and VanCity, Canada’s largest credit union. The visits were based on the individual niches each credit union serves.

In December, a Canadian delegation paid a reciprocal visit to NZACU offices in Auckland, New Zealand, to officially sign the partnership agreement. Focusing on regulatory frameworks, public relations and marketing, and member engagement and development, the delegation visited NZACU offices in Auckland, as well as Westforce Credit Union, Aotearoa Credit Union and NZCU Baywide, the country’s largest credit union. In addition to the credit union visits, the delegation visited representatives of the Financial Markets Authority (FMA) and held a workshop for NZACU members in which Canadian delegates presented

Peru FENACREP & Association of Vermont Credit Unions

Poland’s NACSCU & Georgia Credit Union Affiliates(Report provided by Dan Denning, Partnership Liaison of GCUA)

In June, six delegates from Cooperativa Pacífico in Peru visited North Country Credit Union in Vermont to explore

a variety of topics from their international peers. The primary topics included best practices in credit union

In July of this year, a delegation of 15 Georgia credit union professionals traveled to Gdansk, Poland, to participate

in the 2012 World Credit Union Conference. There, the group had the opportunity to engage with Polish credit union leadership and learn about the Polish system’s

operations, development of new products and services, customer service philosophy and North Country’s loan issuance procedures.

history, structure and business model, as well as current and planned future business cooperative business initiatives. Individual Georgian credit unions also met one-on-one with their Polish credit union partners during their time there.

Puerto Rico & Credit Union Association of New York

In October, two representatives from the Credit Union Association of New York (CUANY) traveled to San Juan,

Puerto Rico, to participate in the Credit Union Compliance Officers Association of Puerto Rico’s Annual Convention. Michael Lanotte, CUANY general counsel and SVP of association services; and Michael Carter, CUANY director of compliance, provided an update on new regulations

imposed by the Consumer Financial Protection Bureau and discussed proposed regulations that will eventually affect Puerto Rican credit unions. They also engaged attendees in a compliance workshop during which they posed several scenarios and worked through potential issues that compliance officers frequently encounter.

Russia Credit Union League & Louisiana Credit Union League, Altai Credit Union Association & Barksdale Federal Credit Union

I n April, a group of four U.S. credit union representatives traveled to St. Petersburg, Russia, to participate in the

sixth Russian Credit Union Forum. The representatives spoke to the theme of “Cooperative Identity – Our Advantage and New Possibilities” and topical issues such as supervision, self-regulation and amendments to current

legislation. The representatives in attendance were Brian Branch, World Council president/CEO; Anne Cochran, Louisiana Credit Union League president/CEO and World Council director; Rod Taylor, Barksdale Federal Credit Union president/CEO; and Eric Richard, CUNA executive vice president and general counsel.

Co-operative Credit Union League of Trinidad & Tobago & Credit Union League of Connecticut

(Direct partnership)

In 2012, a financial reality fair was held by COPOS Credit Union in Trinidad and Tobago and was the first of its kind.

For the last year, the partnership has focused on providing the credit unions in Trinidad and Tobago with guides and materials on how to conduct a reality fair. The financial

reality fair helped youth to learn how to handle personal finances and deal with the real life stresses of financial decisions. Five Connecticut credit union volunteers traveled to the island to assist COPOS Credit Union and other volunteers prepare for the event.

Romania FEDCAR & Ohio Credit Union League

In 2012, Florin Simion, president/CEO of the Federation of Romanian Credit Unions (FEDCAR), and three FEDCAR

board members traveled to Ohio to continue progress made during their partner’s first trip to Romania where the international partnership agreement was signed in 2011. While in Ohio, the Romanians visited five credit unions in addition to the Ohio Credit Union League’s office in Columbus. Credit union visits ranged from the state’s largest, Wright-Patt CU in Fairborn, to the newest and smallest, Nueva Esperanza Community CU

in Toledo. Additional visits included Corporate One FCU in Columbus, Directions CU in Sylvania, and CSE FCU in Canton. The delegation focused on three principal areas during their visit to Ohio, including lobbying efforts to improve Romania’s credit union legislation, risk management and marketing efforts to increase FEDCAR’s membership. Each credit union presented a different set of useful marketing strategies, particularly targeting youth membership, and tools for FEDCAR to adapt to the Romanian market.