Survey Says Compliance Remains a Top Concern for Nation's Credit Unions

ST. CLOUD, MN – Bankers Systems, Inc. announced the results of its latest survey identifying what credit unions across the United States consider to be their most pressing business and compliance issues. Nearly 300 presidents, managers, and loan officers from credit unions with more than $10 million in assets responded.

Twenty-nine percent of these credit unions identified the rapidly and constantly changing regulatory environment as the most significant compliance issue they face. The next most significant compliance issues identified were the Check 21 Act at 16 percent and the USA PATRIOT Act at 15 percent.

The survey’s findings also revealed that reduced margins, lower interest rates, and profitability concerns were the most pressing “business” issues for credit unions who responded to the survey, with 26 percent listing these issues. The need to increase loan volume followed at 23 percent and keeping up with compliance and regulatory changes followed at 22 percent.

“Market conditions are different today than they were two years ago,” Bob White, President of Bankers Systems and Wolters Kluwer Financial Services, said. “Given today’s low interest rates and increasingly competitive environment, it’s easy to see why so many credit unions are concerned about profitability and increasing their loan volume.”

Bankers Systems conducted a similar survey with credit unions in 2002. The ever-changing regulatory environment topped the most significant compliance issues then as well, but at only 21 percent versus this year’s 29 percent.

“This increase in concern by credit unions over the sheer number of regulatory changes is consistent with what we’re hearing from financial organizations on our compliance support line and through ComplianceHeadquarters.com, our compliance information web site,” White said. “While Bankers Systems cannot eliminate a credit union’s compliance obligations, we can help make it easier for them to comply by providing efficient, easy-to-use compliance solutions. Regularly surveying credit unions on what matters the most to their business helps us better understand their needs so we can design solutions and offer support that is both practical and efficient for them.”

Bankers Systems’ large compliance staff reviewed more than 30,000 pieces of legislation at the state and federal levels in 2003, including regulations and case law for all 50 states, the District of Columbia, and the U.S. Government. The company’s compliance specialists actively tracked more than 4,000 proposed regulatory changes in 2003, and along with the Bankers Systems’ retirement plan specialists, answered more than 50,000 phone calls from financial organizations.

To eliminate the possibility of influencing participants’ answers, the 2004 survey presented two open-ended questions: a) What are the one or two most pressing issues affecting your credit union today? b) What specific compliance challenges are of most concern to your credit union today?

Survey responses were received from credit unions across the United States with the majority having assets between $10 and $500 million. On average, the individual survey respondents were seasoned credit union employees with an average of 22.6 years of experience in the financial services industry.

About Bankers Systems
Established in 1952, Bankers Systems, Inc., a WoltersKluwer company, is a leading national provider of compliance tools, technology, and services for financial organizations and their legal counsel. The company’s lending, deposit, individual retirement account, member identification, and anti-money laundering solutions are used by more than 12,000 financial organizations, including approximately one-third of all credit unions in the United States. Bankers Systems’ software, documents, training, and support services help credit unions serve their members, be more productive, and manage risk. Bankers Systems is the sponsor of ComplianceHeadquarters.com, a web site designed to provide valuable compliance information and tools to financial industry professionals.

Wolters Kluwer is a leading multinational publisher and information services company. The company’s core markets are spread across the health, tax, accounting, corporate, financial services, legal and regulatory, and education sectors. Wolters Kluwer has annual revenues (2003) of Euro 3.4 billion, employs approximately 18,750 people worldwide, and maintains operations across Europe, North America, and Asia Pacific. Wolters Kluwer is headquartered in Amsterdam, the Netherlands. Its depositary receipts of shares are quoted on the Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. For more information about Bankers Systems, visit www.bankerssystems.com or call 800.552.9410.