ANNUAL GENERAL MEETING Q&A'S

On 25 November, during the 2020 Annual General Meeting, members had the opportunity to submit questions in-person and online during the event. We answered as many of these as possible at the AGM. However, we didn't get to all of them, so we've compiled these questions and provide the answers below. Although these questions are from the AGM, they also represent the most common questions Credit Union members frequently ask via email, telephone or when they visit the branch. Members are always welcome to contact us to request clarification or ask more questions at any time.

Online Transfers
Q: I would like to send funds from my retail bank account to the Credit Union. When will this be implemented?
Members can quickly transfer funds from their retail bank accounts to the Credit Union. Instructions on how to complete an online transfer are on our website. Click here for more information about online transfers.

Q: Can our Credit Union in the Cayman Islands send funds to another Credit Union overseas?
Although all Credit Unions are affiliated through WOCCU and CCCU, transfers to another Credit Union overseas require a wire transfer through a retail bank.

Q: Can I send funds from the Credit Union to my retail bank account?
The Credit Union is not currently providing this service.

Dividend & Interest Rebate
Q: Is there going to be a loan rebate this year?
Yes, the Credit Union paid an interest rebate of 3% of interest paid for the financial year to each member in good standing.

Q: What Percentage of Dividend are we receiving this year?
On Wednesday, 25 November 2020, at the Annual General Meeting, our membership approved resolution No. 4, Distribution of Surplus. Therefore, a dividend of 2.8% was approved to be paid to all members of record as of 31 July 2020.

Q: How are Dividends calculated?
Dividends are calculated on the lowest monthly balance based on the number of days in each month.

New Core Banking System
Q: How will the new core banking system, "Universa" from Smart Solutions enhance Member Services?
Our new core banking system will allow the Credit Union to provide up-to-date services that our existing system will not allow, example: State-of-the-art online banking platform; a premium mobile app; and less manual processes resulting in quicker processing of transactions for members.

Online Banking
Q: What are your future upgrades for your online banking?
Our new online banking platform will allow members to print digital statements, transfer funds to other member accounts within the Credit Union, set up automatic transfers, and set up fixed deposits.

Q: Would we be able to transfer funds from our shares to our savings account with the new online platform in August 2021?
The Credit Union encourages members to save funds in their share account and place the funds that will need to be accessed into the saving account. By limiting the access to the share account through the online banking portal, members will be able to benefit by receiving a higher rate of return in the form of a dividend. Special pre-approved limits may be set for available funds to be transferred from shares.

ATM Services
Q: Will the ATM cards be able to be used as a direct debit for retail purchases and online transactions locally and international?
The Credit Union will not be offering a debit or credit card at this time. Fees associated with these products are high and would have to be absorbed by members.

Q: Are there any plans to add another ATM? I have heard a lot of complaints regarding the time as a result of a high number of members utilising this service. It would help if you also considered providing this service to members with a shelter from the sun/rain.
The Credit Union is in the process of adding two new ATM's (One at Countryside in Savannah and one in the Government Administration Building) and replacing our existing ATM located at the entrance of the Credit Union building in Grand Cayman.

Non-Member Transactions
Q: Currently, members have to wait long periods to do a transaction. If Resolution #1 is approved, this has the potential to increase the waiting time to be served. How would this issue be addressed?
Non-Members will not be processing transactions daily; there will be no effect on the member waiting time.

Q: Resolution 1 "as determined by the BoD". Shouldn't these "eligible non-members" be accepted in accordance with some written fixed specifications?
The Credit Union will have policies and procedures which will govern this special product and ensure compliance.

Q: What are the risks of accepting deposits from non-members?
The Credit Union will enforce a stringent KYC review before accepting non-member funds. Risks include early withdrawal of funds before maturity, which would incur a penalty.

Q: Who would be considered as 'eligible' non-members?
A non-member depositor can only be eligible to deposit funds to the Credit Union if they are core employers such as The Cayman Islands Government; Statutory Authorities; and Utility Companies.

Q: Can these non-members borrow from the Credit Union, or they are strictly depositors who receive interest?
Non-members will not be qualified to borrow from the Credit Union.

Loans and Loans Processes
Q: Will the Credit Union be offering a skip-a-payment option for loans in December, as members are still struggling?
The Credit Union will not be offering a skip-a-payment option in December as waiving your loan payment extends the maturity of your loan. As interest continues to accrue, funds will take longer to be applied to your loan principal. The Credit Union encourages members who are struggling to contact your loans officer to assist with your financial needs.

Q: Will 100% Financing on Mortgages be offered again?
The Credit Union will consider a special loans promotion based on demand, and approvals will be made based on the risk profile of the member.

Q: How long should it generally take for loan approval, and how long for disbursement?
The processing times for loan applications vary, depending on the type of loan, time to receive credit checks and timely submission of all requested documentation by members. Credit decisions are processed weekly, and the Credit Union is committed to ensuring timely disbursements to members.

Fixed Deposits
Q: What are your fixed deposit rates?
Our fixed deposit rates are conveniently located in our branches and on our website www.cicsa-creditunion.org. Gor more information on our fixed deposits, email member.services@cicsacu.com.ky

Q: Can we have a better interest rate offered for long term investments?
The Credit Union is looking into longer-term fixed deposits with a preferred rate for our members. Once confirmed, the Credit Union will notify our members.

COVID-19
Q: What has been the primary lesson that the Credit union learnt during COVID lockdown process while people could only come on certain days to do their banking? And what has been their response throughout the months?
During the COVID-19 crisis, the Credit Union was resilient and eager to serve our members. We were able to learn several lessons, be flexible with our IT strategy to allow staff to work from home and allowing email instructions with a callback verification process.

Q: What is being done to help members affected by COVID-19 who have loans with CICSA Credit Union but are unemployed?
Throughout the COVID-19 crisis, the Credit Union waived all loan payment for four months with extensions to those members who need it.

The Credit Union membership donated a total of CI$30,000, matched by the Credit Union, bringing the total of funds donated to CI$60,000. Two hundred forty-four members benefited from this "Members Helping Members " relief program.

Members who are currently experiencing financial difficulties are encouraged to contact the Credit Union.

Q: How does the board see 2020 going financially? Do we see an impact on revenue or has the credit union managed to mitigate the impact of COVID successfully?
The Credit Union has managed to keep delinquency low and continue to be profitable with prudent financial management.

KYC & Member Transactions
Q: I would like to know why your KYC department will still require you to explain where you obtained the funds if you present a Bank Draft from a local bank. Is that not sufficient information?
The Credit Union uses a source of funds declaration forms to obtain additional information on a transaction. A draft from another bank gives the Credit Union some information. Still, completion of the form gives us additional information which assists the Credit Union in ensuring its records are updated and that it understands the nature of what generated the draft. While it is common that a draft represents the movement of savings to the Credit Union, there are other reasons a draft may be presented to us, and the completion of the form helps us to understand this.

US Dollar Transactions
Q: Is there any consideration to have a US account at the Credit Union?
The Credit Union will implement US Dollar accounts in August 2021.

Other
Q: Will the Credit Union consider providing Pension services?
The Credit Union has not considered providing a pension service at this time; however, we are more than happy to meet with members to discuss and start a retirement savings plan.

Q: With the implementation of the Civil Registry, can a current member of the Credit Union refer their partner for membership as a spouse would be able to?
One of the seven principals of Credit Unions is no discrimination. According to the Credit Union rules, members can refer their immediate family member to open an account with the Credit Union. An immediate family member is defined as a spouse, child, sibling or parent.

Q: Can the rules be changed to allow grandparents to open accounts for their grandchildren directly?
Changes to the existing rules must be approved by the membership at the Annual General Meeting or Special General Meeting.

Development Project
The proposed development project is only a concept at this time; no funds have been invested in this project at this time. Once details of this project have been confirmed, the Credit Union will keep our members informed.