Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 185 - CREDIT UNION COMMUNITY REINVESTMENT › Subpart B - STANDARDS OF ASSESSING PERFORMANCE › Section 185.240 - Service Test

Current through Register Vol. 48, No. 28, July 12, 2024
a) Scope of test.
				The service test evaluates a credit union's record of helping to meet the
				credit needs of its assessment field by analyzing both the availability and
				effectiveness of a credit union's systems for delivering retail banking
				services and the extent and innovativeness of its community development
				services. Credit unions that provide all or a majority of their services via
				mobile and other digital channels must fulfill their obligation to meet the
				financial service needs of their assessment fields, including low-income to
				moderate-income neighborhoods, consistent with their common bond.
b) Areas benefited. Community development
				services must benefit a credit union's assessment field.
c) Affiliate service. At a credit union's
				option, the Secretary will consider, in the assessment of a credit union's
				service performance, a community development service provided by an affiliate
				of the credit union, if the community development service is not claimed by any
				other institution and in this regard the credit union shall monitor and keep
				records of whether such claims exist.
d) Performance criteria - Retail Banking
				Services. The Secretary evaluates the availability and effectiveness of a
				credit union's systems for delivering retail banking services, considering all
				of the applicable assessment factors in Section 185.200 and pursuant to the
				following criteria:
1) the current
				distribution of the credit union's branches among low-, moderate-, middle-, and
				upper-income geographies, if applicable;
2) in the context of its current distribution
				of the credit union's branches, the credit union's record of opening and
				closing branches, particularly branches located in low- and moderate-income
				geographies or primarily serving low- and moderate- income
				individuals;
3) the availability
				and effectiveness of alternative systems for delivering retail banking services
				(e.g., ATMs, surcharge-free ATMs within its network, ATMs not owned or operated
				by or exclusively for the credit union, banking by telephone or computer, loan
				production offices, bank-at-work or bank-by-mail programs) in low- and
				moderate-income geographies and to low- and moderate-income
				individuals;
4) the range of
				services provided in low-, moderate-, middle-, and upper- income geographies,
				if applicable, and the degree to which the services are tailored to meet the
				needs of those geographies; and
5)
				The credit union's record of effectively marketing its retail banking services
				and products to unbanked or underbanked persons and offering retail banking
				services and products targeted to meet the needs of unbanked and underbanked
				persons. In determining whether a credit union offers retail banking services
				and products targeted to meet the needs of unbanked and underbanked persons,
				the Department shall consider:
A) whether the
				credit union is BankOn certified or offers accounts substantially and
				materially similar to BankOn certified accounts; or
B) whether the credit union offers financial
				services and products to users of alternative financial products or services,
				provided that, that the credit union has affirmatively and reasonably
				demonstrated that:
i) the credit union offers
				such accounts or such financial services and products in conjunction with
				focused and sustained marketing efforts reasonably designed to reach unbanked
				and underbanked persons;
ii)
				unbanked and underbanked persons may reasonably conveniently obtain or use such
				accounts or such financial services and products; and
iii) the credit union offers such accounts or
				such financial services and products at a cost to the unbanked and underbanked
				persons that is significantly lower than would otherwise be incurred by the
				users of alternative financial products or services.