A

ACH - Automated Clearing House

An electronic deposit or withdrawal from your share account, such as direct deposit of members' salaries and government benefit payments (e.g., social security, welfare, and veterans' entitlements) and preauthorized transfers.

Application completion

When the credit union has received all the information that the creditor regularly obtains and considers in evaluating applications for the amount and type of credit requested

APR - Annual Percentage Rate

The cost of credit on a yearly basis, expressed as a percentage.

APY - Annual Percentage Yield

A percentage rate reflecting the total amount of interest paid on a share account based on the interest rate and the frequency of compounding for a year.

B

Board of Directors

Elected volunteers from the membership who govern the credit union.

C

CAC - Customer Acquisition Cost

The cost of acquiring a new member

CD - Certificate of Deposit

A savings certificate with a fixed maturity date and specified interest rate.

CLV - Customer Lifetime Value

The total revenue a member is expected to generate.

Community charter

Must be based on a single, geographically well-defined local community, neighborhood, or rural district where individuals have common interests and/or interact- more than one credit union may serve the same community

Core (System)

The primary system used by FIs to store and maintain member data and transactions.

CPA - Cost per Acquisition

Specific marketing cost to acquire a new member.

CU - Credit Union

A member-owned financial cooperative is controlled by its members and operated not-for-profit.

D

Disclosures

CUs are required to disclose to members fees, dividend, and interest rates, and other terms in connection with an account before an account is opened, upon request, on periodic statements, and upon subsequent event.s

F

FCU - Federal Credit Union

Backed at the federal level

FinTech - Financial Technology

the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services

Fixed-rate

This rate stays the same throughout the life of the loan, so monthly payments will remain the same over the loan term.

FOM - Field of Membership

The common bond among credit union members, such as employment, geographic location, or membership in an organization.

Funded loans

These are those loans where there is an actual transfer of funds from the bank to the borrower.

H

HELOC - Home Equity Line of Credit

A loan in which the lender agrees to lend a maximum amount within an agreed period, where the collateral is the borrower's equity in their house

I

Indirect Lending

Loans are offered through dealerships or other third parties but funded by the credit union.

LOS - Loan Origination System

Software to receive and manage loan applications. Decision-making on these applications can be handled within the LOS, but it is not always.

LTV - Loan-to-Value Ratio

Percentage of the amount borrowed compared to the appraised value.

LTV - Lifetime Value

Value of a CU member throughout their time with an FI

M

Member Dividend

Profits are returned to members through lower rates, better services, or dividends.

Member Services

The department is responsible for helping members with their accounts, loans, and other needs (akin to "customer service" at a bank).

Members

Credit unions don't use the term "customers". They use "members" because each member is an owner of the credit union.

ML - MedianLink

One of the most common LOS systems

Money Market Share Account

Essentially a hybrid between a checking and savings account- it lets you write a limited number of checks each month and sometimes make debit purchases.

N

NCUA - National Credit Union Administration

The federal regulatory agency that is responsible for insuring the deposits of FCUs and CUs

NPS - Net Promoter Score

Measures customer satisfaction and likelihood of recommending the credit union.

OLB - Online Banking

A portal or app for members to access and manage their accounts digitally.

R

ROA - Return on Assets

ROA accounts for company debt and net income, which gives a clearer picture of how much profit a business produces

ROAS - Return on Ad Spend

The calculation of ad spend does not take into account additional debt, such as our retainer, LOS fees, etc.

ROI - Return On Investment

ROI is calculated before debt, showing an organization's general profitability. It can be based on higher rates, better services, or dividends.

S

SEG - Select Employer Groups

SEG-based credit unions are focused on providing services to specific employers, whereas community charters are open to people living, working, or worshipping in a geographic area. Some CUs also have open charters that provide a loophole within the SEG by means of a donation to a specific non-profit organization.

Share certificate

A share certificate account is similar to a certificate of deposit (CD) but is issued by a credit union rather than a bank.

SOW- Share of Wallet

The dollar amount an average customer regularly devotes to a particular brand rather than to competing brands in the same product category

U

Unsecured Personal Loans/Installment Loans

When you borrow a set amount of money for almost any personal use and repay it, with interest, in fixed monthly payments until it's paid off.

V

Variable rate

An interest rate on a loan that changes based on fluctuating market conditions throughout the course of the loan term