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Money Management

Money management is a critical piece of any credit union’s operations. From investment and lending options to assistance with your balance sheet, Vizo Financial offers a variety of products and services meant to enhance and provide a better understanding of your financial position. Let’s see what we can do for you!

Asset Liability Management Solutions

Simple balance sheet management is a thing of the past. Today credit unions must continuously monitor and manage the risk to ever more complex balance sheets. Regulatory requirements continue to focus on preparing adequate assumptions, what if scenarios and risk mitigation analysis.

Credit union staff and boards are challenged by the need to devote increasing time and resources to ALM management while operating with limited resources. Vizo Financial exists to support your credit union with the resources and expertise you need. We have services to match the complexity of all credit unions.

ALM analysis is time-consuming business, and the cost of hiring a full time ALM analyst can be more than your credit union’s budget can bear. Having a trusted resource to process your data and perform modeling frees your staff to perform other functions. But wouldn’t you like the convenience to test rate strategies or perform what-if scenarios whenever needed?

ALM Direct is an Internet-based solution that provides you with the advantages of both an in-house and outsourced modeling solution. We provide the processing of your data, delivery of your ALM reports and analysis of your results, which provides expertise to the modeling process. Because you have online access to the model, you have the in-house capability to update assumptions and perform “what if” income simulations as needed.

Our ALM analysts have expertise in ALM modeling and the dynamics of interest rate risk. Our team is available to help you, your staff, ALCO and board understand the risk in your balance sheet and how to manage it.

Benefits to Your Credit Union:

  • Model processing and report production.
  • Summary Analysis – a custom report prepared by experienced Vizo Financial staff to help you interpret model reports with an ALCO friendly format.
  • Stress Testing.
  • Forecast earnings under different business and market assumptions.
  • Assess long-term interest rate risk with net economic value analysis (NEV).
  • Comply with regulations for interest rate risk management.
  • Online access to your data, assumptions and reports.
  • Unlimited "what if "analyses.
  • Unlimited model support.
  • Optional custom liquidity reporting.

Features:

ALM Direct is a complete solution for all your Asset/Liability and earnings forecasting needs. Following is just a sampling of the presentation quality reports available:

  • Forecasted Income Statements
  • Net Economic Value of Equity
  • Repricing and Cash Flow Gap
  • Interest Rate Risk Compliance
  • Market Value vs. Book Value
  • Effective Duration and Convexity
  • Assumption Documentation
  • Sources and Uses Report

Since assumptions are a necessary part of the ALM and forecasting process, you need a tool that allows you to control those assumptions appropriately. ALM Direct allows credit unions to build various market scenarios under which they can model their balance sheet, income statement and net economic value of equity (NEV).

  • Level of interest rates
  • Slope of the yield curve
  • Prepayment sensitivity

ALM Direct enables you to define custom balance sheet growth and reinvestment rules. This allows senior management to forecast using different business strategies to see their impact on the bottom line. Using ALM Direct, credit unions can model unlimited “what if” scenarios.

  • Define growth as a target balance or forecast only the new volume
  • Reinvest cash flows and new money into user-defined instruments

Systems’ online ALM model. The model offers the following features.

  • Advanced instrument-level analytics.
  • Comprehensive reporting package.
  • Customized chart of accounts.
  • Full NEV, NI and NII simulation.
  • Transparent assumption reporting.
  • Income simulation available over a 1 to 15 year horizon.
  • Instantaneous and parallel rate shocks as well as lagged and parallel rate shocks, rate ramps and yield curve shifts.
  • NEV discounting to a yield curve (U.S. Treasury, LIBOR or FHLB curve).
  • Mortgage prepayment model or support of user defined prepayment tables.

As with any modeling solution, supplying accurate data about the instruments currently on your balance sheet is paramount. We make this process easy and transparent. You supply data files from your data processor and several simple Microsoft Excel templates. We upload the data into ALM Direct and process your data and reports. The reports are available for you to retrieve from the website.

We offer two different levels of model validation depending on the need and complexity of the balance sheet being modeled.

A model validation strengthens reliance on the ALM model to help make sound business decisions and satisfies regulatory requirements. With a model validation, areas of potential weakness are identified along with recommended changes to improve the accuracy of the model and limit model risk.

Our service offers credit unions two levels of validation:

  • Model Validation - examines data inputs, assumptions, model processing, model reports, policies and ALM processes. The credit union receives a documented report of all findings and suggested recommendations. We also have an optional liquidity review that can be added to your validation.
  • Parallel Model Runs – The credit union’s data and assumptions are input and processed on a second model. The credit union receives a report comparing the output of both models.

CECL Solution

Vizo Financial offers an effective, affordable CECL solution designed to help credit unions easily meet current regulatory and accounting standards. Our team supports the full CECL process – from identifying and collecting the required data to producing the calculations and reporting needed for compliance.

Through a secure online portal, your credit union can upload data for us to run the CECL calculations and deliver accurate allowance estimates. Vizo Financial staff are also available to assist with data collection, data analysis, modeling and related support as needed.

CECL Modeling Solution Features:

  • Easy to Use - Vizo Financial’s CECL solution allows your credit union to build custom methodology into the system to evaluate and migrate risk.
  • Customized Reports - The system provides your credit union with numerous custom reports to easily navigate the adjustment.
  • Compliance-Focused - Our CECL model will save you hours of accounting time, providing everything you need to stay compliant.

Investments Solution

There are tons of questions and what-ifs when it comes to investments. What works best for your credit union? How can you get the best return for your money? What does the current market mean for your investments? Good news. We have the insight, the experts and the options to help your credit union find just the right investments and manage your funds effectively.

This program makes your credit union's participation in the securities market easy. Investment options include:

  • U.S. treasuries
  • New issue agencies
  • Secondary bullet and callable agencies
  • Collateralized mortgage obligations
  • Corporate bonds.

All security offerings are permissible under Regulation 703.

Securities offered through Cetera Wealth Services LLC, Member FINRA/SIPC. Vizo Financial Corporate Credit Union is independent from Cetera Wealth Services LLC. Investments are: Not FDIC/NCUSIF insured I May lose value I Not financial institution guaranteed I Not a deposit I Not insured by any federal government agency. Cetera is under separate ownership from any other named entity.

The Excess Balance Account (EBA) is an alternative to your premium Share Account that is off of the Corporate's balance sheet. We offer the following account options:

  • EBA
  • EBA-30
  • EBA-90
  • EBA Flex

The Flex Account is a no maturity investment that pays a higher rate while permitting withdrawals under certain conditions.

The Holiday Share Account is designed to assist in managing your Christmas Club Account more effectively. The Holiday Share Account is a floating-rate investment that earns a variable spread over the Premium Share Account (PSA). Credit unions have the option of choosing a Holiday Share Account that matures on October 1st or November 1st of each year.

This program allows member credit unions to have their Fed book-entry and DTC-eligible securities held and safeguarded through the Corporate's partnership with U.S. Bank and the Federal Reserve Bank.

This comprehensive CD brokerage management and reporting system is a unique certificate of deposit program that allows credit unions to purchase jumbo CDs that are custom-laddered. In addition, credit unions may issue CDs through the SimpliCD program.

Vizo Financial’s Term Certificates provide member credit unions with a safe, convenient way of accessing the investment market at competitive rates. We have fixed-rate certificates with maturities up to one year, or longer upon request.

Lending Solutions

Credit union lending is kind of a big deal. After all, loans are a major part of any institution’s product line, right? With our lending services at Vizo Financial, you can gain the tools to enhance and manage your lending line of services. It’s how we “lend” a helping hand to credit unions!

Vizo Financial's partner, CU Business Group, offers expertise and full-service support as a fast, easy and cost-effective way to add commercial lending and deposit products to your credit union’s list of services.

From planning to servicing, compliance to consulting, pricing to prospecting, CUBG provides the expertise and resources to make your commercial services program successful.

  • CUBG assists credit unions with commercial loans of all sizes, from small dollar, quick and low-cost Fast Track loans to large commercial real estate transactions.
  • In addition to underwriting, CUBG also provides commercial loan documentation, loan servicing, risk monitoring and consulting services.
  • CUBG’s team of experienced SBA experts can help your credit union navigate the SBA lending process.
  • CUBG also offers consulting on business deposit account structures, pricing, and operations, as well as additional services such as merchant bankcard services, business remote deposit capture, ACH origination and advanced cash management products.
  • The CUBG team of experts has extensive knowledge and provides numerous educational opportunities on all aspects of commercial services. CUBG also performs independent loan reviews to help credit unions maintain sound commercial lending portfolios.

Vizo Financial is committed to helping your credit union members invest in higher education. This is why we have partnered with Sallie Mae® to offer your credit union a comprehensive suite of products and services to support your members’ education finance needs. This suite of education loans, created specifically for the needs of graduate and undergraduate students, will help your credit union retain and grow memberships by offering private student loans as a complement to student checking, debit cards, online banking and auto loans.

Why Your Credit Union Will Like It

The Sallie Mae suite of loans expands your credit union’s product line at no cost or funding.

  • Offers high-value products that can attract and retain valuable members.
  • Generates fee income per originated loan without any upfront investment from your credit union.
  • Easy promotion for your credit union with marketing materials provided through a resource portal.

Why Your Members Will Like It

  • Makes money available that students need for college so they can borrow up to 100 percent for school-certified expenses like tuition, fees, books, housing, meals, travel and more.
  • The undergraduate and graduate loans let members choose from three simple repayment options that also offer a choice of competitive fixed or variable interest rates:
    • Making monthly interest payments while in school
    • Paying a fixed amount each month while in school
    • Deferring payments until after they leave school
  • Allows members to earn a 0.25 percentage point interest rate reduction when they enroll in and make monthly payments by auto debit.
  • Easy and fast online application. Members can also manage their loans online, 24/7.
  • Assists your members, when needed, with Sallie Mae’s dedicated customer service and technical assistance centers.

Liquidity Solutions

Ah, liquidity…the very thing corporate credit unions were built for! Needless to say, we haven’t forgotten our roots and are still very much prepared to offer credit unions assistance with liquidity. Whether you’re in need of more or have excess liquidity, let us help you find some middle ground with our liquidity solutions!

The Central Liquidity Facility (CLF) is a mixed ownership government corporation within the NCUA. It is an instrument of the federal government that is owned by its member credit unions and managed by the NCUA board. The purpose of the facility is to improve the general financial stability of the credit union industry by providing member credit unions with a back-up source of liquidity.

The Corporate offers letters of credit to guarantee a credit union's financial obligation or contractual agreement with a third party.

Vizo Financial offers advised lines of credit to members at very competitive interest rates and without charging origination or legal fees. In addition, since we only grant loans to credit unions and credit union-related organizations, we can extend more generous lines.

Term Loans

Term loans are available to fund short or long-term liquidity needs with flexible maturities ranging from seven days to five years. We offer both fixed rate and variable rate term loans.

Our long-standing partnership with SimpliCD provides a simple solution for credit unions to get liquidity. Your credit union can issue federally insured CDs through the SimpliCD program, making your deposit offerings available to a nationwide market of potential investors. Click the image below to find out how your institution can issue a certificate through the SimpliCD program with Vizo Financial!

Who can Issue?

  • Federally chartered credit unions
  • Most state chartered credit unions that are federally insured – check with your regulators as many states adopt the federal guidelines

What are the Benefits?

  • A centralized way to raise funds and generate liquidity
  • The ability to aggregate investors into a single deposit: one wire, one certificate, and one interest payment
  • No subscription, broker, or transaction fees with our custodial program
  • Reach the largest pool of credit union investors in the industry
  • The option to settle everything through Vizo Financial
  • Safety of working with a credit union owned entity

In-Network Custodial Certificate Program

Primary Financial will show your credit union rate to its network of more than 3,500 credit union investors and gather funds for your deposit. Your credit union may issue anywhere from $100,000 to $50 million or more in a single transaction. You will receive one wire, set-up one certificate and send one interest payment, or have Primary Financial automatically deduct the monthly interest payment from your settlement account at Vizo Financial. Primary Financial will act as custodian on the account and will take care of interest distribution to the investors, reporting, audit requests and more.

SimpliCD DTC Option

Do your credit union’s liquidity needs exceed $200 million? The DTC market may be right for you. Issue DTC certificates with SimpliCD to reach more public funds investors and potentially all U.S. credit unions.

Low Income Designation

Per the NCUA, federally chartered, and many state-chartered credit unions with the low income designation are not limited to only non-member deposits from credit unions and public funds, greatly increasing your investor audience with SimpliCD.

Case Study

TCT Risk Solutions

Bring clarity to financial uncertainty.

Rates fluctuate. Markets shift. Balance sheets and loan portfolios require more attention than ever. How can your credit union prepare for these risks? Give your credit union the tools that support proactive risk management and a stronger financial future. Where can you find these tools? Here, through Vizo Financial’s partnership with TCT Risk Solutions.

Minimize risk. Manage money smartly.

Together, Vizo Financial and TCT Risk Solutions can deliver enhanced, data-driven risk management solutions to credit unions. Through this partnership, Vizo Financials’ trusted role as a cooperative provider of back-office support, consulting and education with TCT Risk Solutions’ specialized risk management tools, including credit migration, CECL analysis, balance sheet analytics, loan and deposit pricing and asset liability modeling are combined to offer credit unions of any size a proactive approach to risk management.

CECL Tool

Leverage the power of credit migration to arrive at accurate CECL calculations while gaining insights into purposeful credit data. Don’t need the detail? We have options for smaller credit unions too.

Concentration Risk Tool

Focused on portfolio limits and safety, this tool is engineered to monitor, measure and set limits on specific loan portfolio concentrations to ensure regulatory compliance and institutional safety.

CostPro Tool

This advanced pricing analytics platform is designed to help credit unions accurately price loans and deposits for improved profitability while maintaining a competitive edge and managing risk.

Interest Rate Risk Management

Specifically created with small credit unions in mind, management teams can use specially-designed modeling tools, evaluate balance sheet exposure, understand the potential earnings impact and make informed decisions as interest rates change.

Loan Portfolio Management

This solution uses advanced analytics and modeling to evaluate credit trends, forecast losses, ensure compliance and track delinquency to improve visibility into overall loan portfolio risk and performance.

Vital Signs Report

This report helps your credit union to understand key financial performance indicators based on your 5300 report data by highlighting strengths and weaknesses, identifying emerging risks and supporting strategic planning.

Backed by CU Expertise

The TCT suite of services works so well because it was built by credit union professionals. By digging into their deep industry experience, these credit union experts were able to create practical, data-driven tools to simplify complex risk.

Enterprise-Wide Approach

The TCT suite uses designed software and advisory capabilities, equipping credit unions with actionable insights to better understand risk, optimize financial performance and make more informed decisions through a holistic strategy.

Drive Decisions with Data

Leverage empirically designed, statistically validated tools that turn complex risk into actionable insights that drive informed financial decisions.

Optimize Financial Performance

The focus is not just on managing risk, but improving earnings, pricing strategy and balance sheet performance with usable tools, training and guidance.

Scalability for Your Needs

The TCT suite is capable of supporting institutions with limited internal resources, as well as those needing advanced modeling capabilities.

If you have questions about our money management solutions, please contact a corporate account manager at accountmanagers@vfccu.org.

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