Credit Union Growth and Collaboration in Trinidad & Tobago
A comprehensive look at the rapid growth and symbiotic relationship between the Trinidad & Tobago Unit Trust Corporation and the Credit Union sector, highlighting challenges, achievements, and the valuable knowledge exchange benefiting both entities. The journey from USD 1 billion to USD 20 billion in Assets Under Management (AUM) showcases significant progress and the critical role played by domestic financial institutions in the Caribbean.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
CARIBBEAN CONFEDERATION OF CARIBBEAN CONFEDERATION OF CREDIT UNIONS CREDIT UNIONS 61STANNUAL INTERNATIONAL CONVENTION TRINIDAD AND TOBAGO 2018
Trinidad & Tobago Unit Trust Corporation
Who Are We?
The Credit Union Movement
Many Credit Unions established over 50 years Who ago Over 129 active Credit Are Unions in T&T Over 600,000 You? members TT$14Bn Assets Under Management
People centered financial institutions Meeting Service oriented of Minds Home grown (Indigenous)
RAPID GROWTH!!! Meeting Credit Unions in Trinidad and Tobago grew from AUM TT$5 Billion to TT$13 Billion in 8 of years (2005 2013) Minds UTC grew from AUM TT$1 Billion to TT$15 Billion in 10 years (1996 2006)
VALUE PROPOSITION The UTC and the Credit Union sector have many similarities, share much of the same clientele and together form a critical part of the fabric of domestic indigenous financial institutions. Over the last decade Credit Unions have grown significantly. However, rapid growth brings many challenges. The UTC has had to address many such challenges during the last decade, as a result of our rapid growth over the past 20 years from TT$1 Billion to TT$20 Billion in AUM. The UTC is in a unique position to transfer knowledge to the Credit Union movement to manage these challenges, especially in the areas of Investment Management and Enterprise Risk Management.
Symphony Credit Union Institutional Strengthening
SYMPHONY / simf( )ni/ Noun, 1. an instrumental piece, often in several movements, forming overture to an opera or the like. 2. anything characterized by a harmonious combination of elements, especially an effective combination of colors. 3. harmony of sounds.
SYMPHONY Credit Union Movement Unit Trust Corporation
Introduction Symphony seeks to enhance the institutional capacity of the Credit Union sector, specifically in the areas of Investment Management and Enterprise Risk Management. These will be achieved while simultaneously deepening the Unit Trust s relationship with the Credit Union Sector.
Overview Project Symphony is aimed at: Strengthening the Credit Union movement through capacity building; Enhancing the relationship between the UTC and the Credit Union movement This will be conducted under two broad areas: Investment Management Services Enterprise Risk Management
Benefits UTC CREDIT UNIONS OTHER STAKEHOLDERS Leveraging an existing skill set for the benefit of the Credit Union movement. Developing stronger Investment Management capability Enhancing protection of members savings at Credit Unions Developing robust Enterprise Risk Management Frameworks Improved level of comfort for Auditors and Regulators in terms of these key Board and Management capabilities Strengthening of relationship with core UTC clientele
Background UTC met with the Trinidad and Tobago Commissioner of Cooperatives, who is the Regulator for Credit Unions in May 2017 to discuss Symphony. A sample of fourteen (14) Credit Unions across Trinidad & Tobago between June and August, 2017 were visited. The fourteen Credit Unions were selected based on Credit Union Size i.e. Assets Under Management (Small/Medium/Large); Credit Union orientation (Open circuit/Closed circuit); and geographic location (North/South/East/West/Tobago). These visits to Credit Unions across Trinidad & Tobago confirmed that there is strong interest from the Credit Unions in building capacity in the two aforementioned areas.
Overview The creation of customized Investment Policies for Credit Unions complemented by training in the application and maintenance of the Investment Policy. Major Deliverables are: Managed Accounts Investment Policy 01 02 03 Training Managed Investment Portfolios for the Credit Union Training for Management and Board of Directors in the application and maintenance of the Investment Policy A customized Investment Policy for the Credit Union
Overview Three phases of roll out are: 3 2 Enhanced Capabilities ERM is a standard practice, financial performance improves and operational costs are reduced. A CULTURE of risk management is entrenched 1 Building Competencies Improves risk culture, introduces risk assessments and risk prioritization and risk responses Setting the Foundation (Gap Analysis) Seeks to identify the currentstate and desiredstate ; Adopt a common risk language; Determine Key Risk Indicators; Create ERM Dashboard
Overview Training for the ERM components will focus on individual Credit Unions, as the specific requirements may differ for each entity. Deliverables for each phase are: Setting the Foundation (Gap Analysis) Building Competencies Enhanced Capabilities 01 02 03 Process for risk based review and external environment a. b. Risk Management Glossary c. Risk Appetite Statement d. Streamlining risk related information to the Board of Directors Defining (risk) culture a. b. Identification of Risk Owners c. Clearly Articulated Risk Responses Risk Assessments
Beta Testing Testing was conducted with two Credit Unions and as such we are able to confirm the following: Value/Viability The initiative is valuable and viable for the Credit Union and UTC. The appropriate timeframe estimated for the successful completion of each train will vary with each Credit Union. However, it is dependent on the commitment by the Board and Management. Appropriateness The models are designed to be scalable. Cost
