Business View Magazine June 2023

124 BUSINESS VIEW MAGAZINE VOLUME 10, ISSUE 6 DANNEMORA FEDERAL CREDI T UNION Its bottom line is focused on reinvesting into the credit union and services that help its members, says CEO and President Chris Hay. He says that DFCU has proven over the years that it can focus on members and finances at the same time and still have a successful corporate structure. It’s a model that Hay enjoys executing. “Traditional banks have stockholders. Those banks have a fiduciary responsibility to serve stockholders, but our only responsibility is to our members,” Hay says. “We focus less on numbers and more on member stories.” One example of how this impacts finance is that the focus on members allows DFCU to carry certain loans on its books much longer than it otherwise would. Hay referenced one example where a member hadn’t paid her mortgage through the credit union in over a year and in most circumstances the foreclosure process would have started. However, DFCU’s lending team knew the member had a unique situation where her spouse had recently died, and she was waiting for insurance to help her with the overdue mortgage payment. Says Hay, “We knew her story and we knew that she would be able to pay her loan, which she eventually did. It’s a heartwarming story.” An epic funding crisis is crushing the industry.** In the last year, $211B has left the banking system. And 5% ($1T) of all industry deposits have shifted from demand deposit accounts to CDs. The urgent need for liquidity has created an ever-growing funding gap between what institutions are paying on deposits and what’s available in the market. This gap is the widest in modern banking history and has led to compressed net interest margins (NIMs) and declining ROAs that, in some cases, are at unsustainable levels. With NIMs tighter than ever, bringing in new core deposits while controlling cost of funds is a must. Kasasa high-interest checking attracts quality, stickier deposits while reducing funding costs and the reliance on timed deposits like CDs. It also creates deeper relationships leading to more engaged consumers. In fact, Kasasa checking accounts have helped community financialinstitutions: Grow and retain deposits 1 . • 2.25% net-increase in deposits • 50% less deposit bleed-off Lower funding costs. • 64% cost of funds discount 2 • 1/3 less reliance on high-rate CDs 1 Deepen relationships 2 . • 64% more debit card transactions • 38% more ACH transactions Learn how you can offer 5% high yield checking accounts that cost less than 2%. Visit growdeposits.kasasa.com for more information. 1 FDIC and NCUA Q1 2023 for Kasasa partners compared to Q4 2022. 2 Kasasa Analytics for all Kasasa partners, 2022. The credit union’s commitment to financial literacy remains strong as shown by one of its partners. Banzai is an award- winning, interactive content platform that teaches real- world finance to more than 100,000 teachers in over 50 percent of U.S. schools.