r e a c h i n n o vat i o n g r o u p · 2015-11-25 · lending club “i liked that it wasn’t a...

R E A C H I N N O V A T I O N G R O U P

REACH 2016

O U R R O O T S

E V E R Y T H I N G O L D I S N E W A G A I N

T H E R E ’ S N E V E R B E E N A B E T T E R T I M E …

“Let us not fool ourselves. Credit unions are made of fine or average human

character. We must every so often review our humble beginnings and rediscover

what traits of human character made the present staffing growth of the credit

unions possible. We must grow big, without growing “biggity.” We must constantly

increase in size and potential power without ever losing sight of the individual

borrower and his very personal problems. Having been entrusted with a few

things, we must prove our worth to be master over many things. Credit unions are

not banks, they are institutions of the people which are finer than any banks

because they are operating way down at the level of the people. They are banking

democracy and our great responsibility is to prove constantly our ability to operate

in large fields with the same old fashioned honesty and simplicity which made

credit unions so very exceptional in the beginning.”

- Roy Bergengren

T H E C O M P E T I T I O N T O D AY

O F M A P S + C R E D I T U N I O N S

L E N D I N G C L U B

“I liked that it wasn’t a bank,” said Mr. Kim, who took out a

$21,000 loan from Lending Club with a roughly 9 percent

interest rate.

“It felt more like people helping people,” he

said… - New York Times, “Pitfalls for the Unwary Borrower Out on the

Frontiers of Banking,” Michael Corkery, September 13, 2015

I T ’ S N O T A B O U T S I Z E O R M O N E Y

W H AT A R E Y O U R G A M E C H A N G E R S ?

M Y G A M E C H A N G E R S

I N N O VAT I O N D E F I N E D

I N N O VAT I O N D E F I N E D

• “Progress is the constant replacing of the best there is with something still

better.” – Ed Filene

• “Innovation is significant positive change.” – Scott Berkun, Author & Speaker

• “Belief in your creative capacity lies at the heart of innovation.” – David

Kelley, Founder, IDEO

• “Innovation is this amazing intersection between someone’s imagination and

the reality in which they live.” – Ron Johnson, Former CEO, JC Penney

I N C R E M E N TA L V E R S U S D I S R U P T I V E

T H E F O U R “ P ’ S ”

→ Product Innovation – Changes in the things (products/services) an

organization offers (iPod goes from large to mini)

→ Process Innovation – Changes in the ways in which products & services

are created or delivered (Back-office collaboration)

→ Position Innovation – Changes in the context in which the

products/services are framed & communicated (Levi-Strauss)

→ Paradigm Innovation – Changes in the underlying mental models which

shape what the organization does (Horse to Car)

• “If I asked people what they wanted, they would have asked for a five-legged horse.”

– Henry Ford

“ M A N A G I N G I N N O V A T I O N ” B Y J O H N B E S S A N T &

J O E T I D D

F I L E N E M E T H O D = H U M A N C E N T E R E D D E S I G N

H U M A N - C E N T E R E D D E S I G N

Not Here Not Here

Start Here

What do people desire?

Are you solving a problem

in a way that is attractive

to people?

What can be

financially viable?

Can we justify the

expenses of

creating and

maintaining the

solution?

What is technically

and

organizationally

feasible?

Technology,

Talent, and

Infrastructure

Source: IDEO Human-Centered Design Toolkit

I T A L L S TA R T E D W I T H I 3

I D E A S , I N N O V A T I O N +

I M P L E M E N T A T I O N

F I L E N E M E T H O D

Y O U R L E A G U E P U T I N N O VAT I O N I N T O A C T I O N

B E H I N D T H E C U R TA I N

T H E T E A M S & T H E I D E A S …

REACH INNOVATION GROUP

1. Team REVOLution

2. Team Herring

3. Team Igniters

4. Team CU4Δ

team rEVOLution Robert Baron | Technicolor Federal Credit Union

Kelly Cook | WestStar Credit Union

Lixa Anderson | SAFE Credit Union

Wesley Walton | Water & Power Community Credit Union

Connecting People to Financial Education the Credit Union Way

Credit Unions: the original crowdsourced financial solution

Unified Credit Union brand: People Helping People

VIDEO

Come together. Share experiences. Tap into resources.

Knock-knock. Oh, opportunity! How nice of you to stop by.

reachcutube@gmail.com | 805.744.7431 | www.cutube.org

REACH INNOVATION GROUP

Presented by Tracy Arroyo, Inland Valley FCU Patty Chang, Greater Nevada CU Amber Fielder, Xceed Financial CU Jim Hossfeld, SchoolsFirst FCU

Let’s Play a Game

0:20 0:15 0:10 0:05 0:04 0:03 0:02 0:01 0:00

Let’s Play a Game

Who Won?

Your Employees

• 84% Want a Promotion

• 46% Don’t have a Plan

Sally

The Solution

How it Works

Testing

Benefits to Your Credit Union

• Reduce Turnover Rate

• Increase Skill Level of Employees

• Improve Management Bench Strength

Thank you!

REACH INNOVATION GROUP

Nicole Lopez-Conti, Patelco CU; Kerstin Plemel, Greater Nevada CU Patricia Rocha, Schools First FCU; Tony Salse, SCEFCU

The Statistics

17% percent of consumers have a FICO score between 500 and 600. Customers with credit scores from 500 to 589 have an average 15.4% loan rate (if they can even get a loan).

Sources: http://www.fico.com/en/blogs/risk-compliance/us-credit-quality-continues-climb-will-level/; http://www.thesimpledollar.com/best-bad-credit-auto-loans/; http://www.wsj.com/articles/new-metric-aids-weak-credit-risks-1427861478

The Scenario

1. Member applies for a loan.

2. Member gets denied due to low FICO score.

3. Member is advised of financial education programs.

4. Member seeks alternative lending solution—outside of your credit union.

The Options

The Solution

A program that combines: • Financial education • Gamification, and • Loan generation

The Solution 1. Member applies for a loan.

2. Member gets denied due to low

FICO score.

3. Member enrolls in CU$core through your credit union.

4. Member achieves goal and receives loan from your credit union!

Test drive the app now at: http://invis.io/M73L85LGZ

The Demand

106 million potential users (those struggling to borrow)* Concept testing demonstrated that potential borrowers would enroll in the program if it was simple and helped them get a loan. Potential credit union users like the concept if it is simple to implement and compliant.

*2013 Forbes

The Next Steps Determine: 1. Program ownership & maintenance 1. Partner for financial education piece 1. Logistics for systems integration,

lending criteria, etc. 1. Final testing & development 1. Cost to bring to market & maintain

REACH INNOVATION GROUP

Machelle Martin, Golden1 Credit Union Nicholas Tomimatsu, SchoolsFirst Federal Credit Union Lemuel Curry, Xceed Financial Credit Union Jennifer D’Amico, CommonWealth Central Credit Union

Enthusiasm Inspired Empowered Confident

I feel I am valued in

this organization

I have confidence

in the leadership of

this organization

I like the type of work

that I do

Most days, I feel I have

made progress at

work

This organization

treats me like a

person, not a number

60% of Millennials said a purpose is part of the reason they chose to work at their current employer.

Source: Center for Generational Kinetics, Unlocking Millennial Talent 2015

On Target for…. Member Engagement Product Growth Profitability Efficiency Innovation

Thank you!

Machelle Martin, Golden1 Credit Union Nicholas Tomimatsu, SchoolsFirst Federal Credit Union Lemuel Curry, Xceed Financial Credit Union Jennifer D’Amico, CommonWealth Central Credit Union

REACH INNOVATION GROUP

L E T ’ S C R E AT E I M PA C T. T O G E T H E R W E C A N .