lights, camera, action! 2008 annual leadership conference cu*answers 1 june 18, 2008 1 1
TRANSCRIPT
2
We have a winner!
Lights, Camera, Action...Win $1,500 February-March, 2008 24 entries submitted
And the winner is...
Velvet Fuller
AAC Credit UnionGrand Rapids, MI
Velvet Fuller
AAC Credit UnionGrand Rapids, MI
3
The Owners are Here!
Topics for the day: Shedding Some Light on Industry Issues Invest...Execute...Earn!
Last year we announced a “Jump to the Future” – where are we today, and what does it mean to 2009?
New Declarations Can a network set goals to guarantee the difference?
A Year of Collaboration It was a big year for the CU*Answers network for leading the industry
towards a new kind of networked future
Randy’s Top Ten What’s On Your Mind?
Shedding Some Light on Industry Issues
Misery loves company when you’re grading on a scale...so when rainy skies have everyone hunkering down, what should you be thinking about for when the sun comes out again?
5
Navigating a StormWhile Planning to be Stronger on the Other Side
You can read, watch TV, and figure out for yourself, the national news on our economy is not that great
But the effect from the perspective of members and credit unions might be a little different during this phase in our economy
Now may be the best time to invest for the inevitable next phase
6
Navigating a StormWhile Planning to be Stronger on the Other Side
You can read, watch TV, and figure out for yourself, the national news on our economy is not that great
But the effect from the perspective of members and credit unions might be a little different during this phase in our economy
Now may be the best time to invest for the inevitable next phase
CU*Answers will kick off the day with two investments in your 2009
business year:
The upcoming COLA increases will be capped at $0.01 per member!
Online ATM/Debit transaction prices will be slashed by $0.005 (down 6.6%) for 2009!
CU*Answers will kick off the day with two investments in your 2009
business year:
The upcoming COLA increases will be capped at $0.01 per member!
Online ATM/Debit transaction prices will be slashed by $0.005 (down 6.6%) for 2009!
7
Responding to Stormy Skies
While there is no doubt there are CUs struggling with this change in the economy, the national big picture is not nearly as bleak as you might think
Have you considered that you might be the standout performer in your marketplace if you respond differently than your competition, right now?
8
Responding to Stormy SkiesWhen It’s Raining, Find an Umbrella Salesman
It’s an old adage that members flock to safety in unsure times What’s special about right now is that our competition might actually
be encouraging it through their actions and response to a rampant time of speculation and bursting bubbles
It’s an advantage to be local and deal with real-people experiences
9
Responding to Stormy SkiesWhat are your plans for a sunny day?
This mortgage crisis is an opportunity for credit unions to shine As members hunt for solutions to their problems, they are finding
credit unions are on their side and still interested in building a relationship
The trick will be for us to come out the other side of this crisis as a long-term, trusted channel for member mortgage needs
10
Responding to Stormy SkiesWhat are your plans for a sunny day?
This mortgage crisis is an opportunity for credit unions to shine As members hunt for solutions to their problems, they are finding
credit unions are on their side and still interested in building a relationship
The trick will be for us to come out the other side of this crisis as a long-term, trusted channel for member mortgage needs
Time to draw a line in the sand and make a big declaration...and back it up with
actions and investment
Later today, we’ll talk about how we will work at being known as one of the most
aggressive mortgage servicing networks in the industry
Time to draw a line in the sand and make a big declaration...and back it up with
actions and investment
Later today, we’ll talk about how we will work at being known as one of the most
aggressive mortgage servicing networks in the industry
11
Responding to Stormy SkiesWhen It’s Raining, Find an Umbrella Salesman
The pressure has been building for a long time on deceptive credit card practices
The voice of consumer groups is getting louder, and people are listening Now a credit crisis, real or imagined, adds to the pain If you are looking for disruptive signals and a time to get active, what
more could you ask for?
12
Responding to Stormy SkiesWhen It’s Raining, Find an Umbrella Salesman
The pressure has been building for a long time on deceptive credit card practices
The voice of consumer groups is getting louder, and people are listening Now a credit crisis, real or imagined, adds to the pain If you are looking for disruptive signals and a time to get active, what
more could you ask for?
CU*BASE online credit card programs are growing like crazy, but let’s invest a bit more
In 2009, any CU processing their credit card portfolio online with CU*BASE will see an additional price decrease of $0.005 for
ATM/Debit transactions...for a total savings in 2009 of 13.3% on ATM/Debit activity
CU*BASE online credit card programs are growing like crazy, but let’s invest a bit more
In 2009, any CU processing their credit card portfolio online with CU*BASE will see an additional price decrease of $0.005 for
ATM/Debit transactions...for a total savings in 2009 of 13.3% on ATM/Debit activity
14
Responding to Stormy SkiesEverybody’s Putting Money Away For a Rainy Day
It’s always a balancing act, understanding the flows between emerging delinquencies and budgeting the provision for loan loss, actualizing charge-offs, and then taking your chances with the next delinquency report
It appears credit unions are doing a good job What are you learning about collections right
now?
15
Responding to Stormy SkiesEverybody’s Putting Money Away For a Rainy Day
It’s always a balancing act, understanding the flows between emerging delinquencies and budgeting the provision for loan loss, actualizing charge-offs, and then taking your chances with the next delinquency report
It appears credit unions are doing a good job What are you learning about collections right
now?
CU*Answers invested more in Collections during 2008 than in the previous
five years combined
Lender*VP Collections is making a huge difference in why
With delinquency on everyone’s mind, are you planning to revamp how you see
Collections in 2009?
CU*Answers invested more in Collections during 2008 than in the previous
five years combined
Lender*VP Collections is making a huge difference in why
With delinquency on everyone’s mind, are you planning to revamp how you see
Collections in 2009?
17
Responding to Stormy SkiesBack to Reality...It’s Not All Good News
When it gets to the end of the month, and you have to look at your income instatement, and your balance sheet all by itself, it’s not as easy to think about an industry perspective, graded on a scale
It’s still tough to make big plans on 60 basis points of ROA and an asset base that still seems too small
It is the time to strike, invest, and innovate...because to emerge from the other side of a storm with new opportunities, you have to be truly different than you were on the day the skies darkened
18
The Pressures Will Be the Same...
...unless we address these issues in anticipation of the next phase We need to pump new energy into traditional, maturing ideas We need to capture the benefits of scale We need to be relevant to the next generation
So when all the pundits remind the market that in bad times, credit unions shine, we can only smile for a second, and then get right back to work on ensuring that we’ll be here, every time there’s a bad time
20
Knowing Your Member is Still the Key to Future Relevance
More than knowing your members for who they are right now, standing still, we need to look at where they are going,
and then make sure we are moving as fast as they are
So let’s get this party started!
More than knowing your members for who they are right now, standing still, we need to look at where they are going,
and then make sure we are moving as fast as they are
So let’s get this party started!
Invest...Execute...Earn!
Like clockwork, you can count on us to spend the money, develop the products, and put the products in your hands, year in and year out
Are you earning on these investments?
22
Marching On: June 2007 - June 2008
Since we last met, we have continued to keep our eye on the big prize, but our efforts very focused day to day Project Statistics June ’07 through May ’08:
Total projects requested: 1,712 Total projects completed: 1,088 (64%) Outstanding projects as of June 6, 2008: 505 Overall approval rate: 93%
Idea Forms 580 hits on the Idea Form web page
so far in 2008 (2,521 hits in 2007) Worked in batches of about 25 Blogged with subject-matter experts
at CU*Answers and the credit union Making sausage...
http://monitor.cuanswers.com/
23
Marching On: 1998 to 2008A Track Record You Can Verify
This year more than ever, releases are fresh in everyone’s mind – after all, we just had a big one (June 9 online, June 23-24 self processing)
A 12-page release summary (a record!) Over 25 individual major projects which modified 451 CU*BASE programs
and added or changed nearly 50 database files $250K-$300K average FASB investment It’s Me 247 alone: $125K+
And we’ve been doing this, day in and day out, for over ten years!
“What could I improve on without spending a dime?”
A CEO Writing His 2008 Business Plan
http://cuanswers.com/client_release_summaries.php
24
DocumentationIn the last release alone...
150 help topics changed Dozen+ booklets updated
DocumentationIn the last release alone...
150 help topics changed Dozen+ booklets updated
Marching On: 1998 to 2008A Track Record You Can Verify
After you build it, you have to document it, sell it, and train it Once it’s live, you have to support it ... and then start the whole
process all over again
AnswerBook 3,109 average contacts per month 80%+ resolved in less than 30 min.
Client Support Avg call length: 5.65 minutes Avg hold time: 1.14 minutes Avg # of incoming calls: 7,800/mo.
AnswerBook 3,109 average contacts per month 80%+ resolved in less than 30 min.
Client Support Avg call length: 5.65 minutes Avg hold time: 1.14 minutes Avg # of incoming calls: 7,800/mo.
EducationSince last year...
225 classroom or individual events 360 web conference sessions (up 12.5%) 220 days of conversion training/support
EducationSince last year...
225 classroom or individual events 360 web conference sessions (up 12.5%) 220 days of conversion training/support
25
Some of Our Favorites Since Last YearTools to Connect With Your Members
Cross-selling is not an employee strategy, it is a corporate one, and you should apply the 3 to 1 rule
In 2008, we made big advances in rounding out a corporate strategy and a series of tools to turn leads into income Cross Sales integration into Sales
Tracker conversation notes When you hear CRM, know that
Sales Tracker is at the core of those ideas
Following up on Sales Leads with the new “Work Sales Trackers” tool
Watch for upcoming web conference training...get a perspective on these new tools from the Xtension Call Center team!
Watch for upcoming web conference training...get a perspective on these new tools from the Xtension Call Center team!
26
Some of Our Favorites Since Last YearTools to Connect With Your Members
More reports enhanced to use the A.S.A.P. / Member Connect export process We’re up to about 30 reports and inquiry tools that now allow you to
communicate with your members on the spot!
27
Some of Our Favorites Since Last YearTools for Lending
Miscellaneous Coverages (Spring 2008) Gap insurance, mechanical breakdown, miscellaneous fees, you name it! Also included significant enhancements to how insurance and debt
protection can be quoted on your loan requests
Loan Payment Change History Phase 2 (Fall 2007) Changes to the delinquency calculation First person responder
Loan Application trending file (Year-end 2007) Know your numbers
28
Some of Our Favorites Since Last YearTools for the Front Line
Teller Rewrite Streamlined flow for faster member service; consolidated funds in and
posting screens Comprehensive “Verify Member” pop-up window
Check Holds configuration Automatic calculation of
holds according to locale (R&T#) and $$ amount
Default holds to match your electronic (ATM) holds policies
Coming soon...Business Day Calculator for teller holds and more!
Coming soon...Business Day Calculator for teller holds and more!
29
Some of Our Favorites Since Last YearTools for the Back Office
One-click export of financial statements directly to Excel
Contingent Liability Analysis report and data capture
Coming soon...trend analysis and new tools to turn contingent limits into real loan
balances!
Coming soon...trend analysis and new tools to turn contingent limits into real loan
balances!
Coming soon...consolidated financial statements for multi-corp processing!Coming soon...consolidated financial statements for multi-corp processing!
30
Some of Our Favorites Since Last YearTools for Member Service
Member Personal Banker enhancements Automatic reminder to sign
the member up for e-services Complete picture of the member’s e-status and everything you need to
service the member in one handy location
Throughout the next two years, It’s Me 247 is going to continue to develop the personal
aspect of online banking
Every point of contact with your member will need to amplify that commitment
31
Some of Our Favorites Since Last YearTools for Member Appreciation
Configurable Patronage Dividends: making ownership dividends real for your members A new, standard program to let you post special bonus share dividends
and/or loan interest rebates to your members, without the usual custom programming fees and lead times
CU-defined configuration Posting “audit” feature to allow you to forecast the expense and tweak the
configuration settings beforeactually posting any dividends tomember accounts
Included in the CU*BASE 8.0 (June) release...start planning now for year-end!
32
Special Year-End Announcement!
In the past, bonus programs required: Lead time – notification required by mid-November Programming Fees – typically $400-$750 per account type
Price change this year: Fees will be doubled and the lead time extended to September 30 – NO exceptions!
To avoid these fees, plan around the standard tool If something is missing from the standard tool, let’s get busy on it NOW
Watch for some materials you can bring to your Board to start brainstorming on what is possible with the tools you already have
Included in the CU*BASE 8.0 (June) release...start planning now for year-end!
36
Jumping to the FutureEvolving Capabilities
Remember this from last year? We threw down the gauntlet and started thinking about a new foundation for the next decade
20002000 20022002 20052005 20082008 20112011 20142014 20172017
37
Jumping to the FutureEvolving Capabilities
Starting last year, we began shaking up some of the key foundations of the CU*Answers solution suite
It continues on into 2009
The The pastpast
2002009 9
The The futurefuture
20020088
ATM/Debit Pause for a Cause
“Under the hood”
CU*BASE Platinum
RDI ASP Forms Online banking
38
Jumping to the FutureEvolving Capabilities
Starting last year, we began shaking up some of the key foundations of the CU*Answers solution suite
It continues on into 2009
The The pastpast
2002009 9
The The futurefuture
20020088
ATM/Debit Pause for a Cause
“Under the hood”
CU*BASE NGS eDOC ASP eDOC Forms It’s Me 247
On the way to the future,
things change...
39
Jumping to the FutureEvolving Capabilities
The confidence to redefine yourself and to reset the foundation for the next go-around requires leadership
And that brings us to the Robert H. Mackay award
“The challenge of leadership is to be strong, but not rude; be kind, but not weak; be bold, but not bully; be thoughtful,
but not lazy; be humble, but not timid; be proud, but not arrogant; have humor, but without folly.”
Words to live by, shared by Bob MackayTaken from a quote by Jim Rohn
“The challenge of leadership is to be strong, but not rude; be kind, but not weak; be bold, but not bully; be thoughtful,
but not lazy; be humble, but not timid; be proud, but not arrogant; have humor, but without folly.”
Words to live by, shared by Bob MackayTaken from a quote by Jim Rohn
42
ATM “Pause for a Cause”
Benefits Gained
Card system vs. account system Unlimited cards and card products per account Cards can access accounts across member bases Two name lines (if supported by switch)
Reduced setup time for a new interface For your staff:
More consistency across switches to reduce the learning curve when changing vendors...and complete online help (finally!)
Reconciliation and settlement improvements Improved closed card and card deletion processes
Expanded configuration options ISA fees, fee waivers and rebates, multiple debit card hold types
Online analysis of transaction requests (first for us, then CUs) “Why was my purchase just denied at Best Buy?”
43
ATM “Pause for a Cause”
Benefits Gained
Custom card stock by member (if supported by switch)
Single point card maintenance (if supported by switch)
Increased online availability (during nightly cycles) and eventual ability for redundancy on cuasterisk.com network
Data encryption for PCI DSS compliance Per the email you received on June 4, the prototype for this is being
released this summer when we begin encrypting card PANs in our online credit card database
Rules for data storage and accessibility by trusted insiders is changing...so we’re getting ahead of the game now
iSeries box owners: This uses a special third-party utility (think $$)
44
Jumping to the Future
ATM “Pause for a Cause”
Alpha (certification) testing two switches starting in August 2008 CU*South with Fifth Third CU*Answers with CO-OP
Beta testing two switches (with CUs) starting in September 2008 Credit unions will see new CU*BASE screens and processes and staff will
need to be trained CU*South client(s) with Fifth Third CU*Answers client(s) with CO-OP
All 50+ CO-OP credit unions will be in this beta!
Starting in October, we will begin to roll these new features into the other ATM/Debit vendor switches
The ATM Pause was a jump to the future, considered to be a 6-month project...it has turned into a journey to the future
and will affect things for years to come
45
Jumping to the Future
ATM “Pause for a Cause”
Best laid plans...not that much of a pause Existing client ATM/Debit network changes 2 New client ATM/Debit startups 8 National Network Shared Branching startups 6 Credit card conversions 11 CU changes due to network switch mergers 7 Compromised card mass reissue 1 Network mandate projects (Track 2 elimination) 4 Miscellaneous ATM/Debit projects (Falcon Fraud) 6
Total projects completed in addition to PFC 45
Old friends, never forgotten...
The King of EFT Processing
46
Jumping to the Future
ATM “Pause for a Cause”
A note from the EFT Team...
Lately, CUs have been making decisions about changing vendors, new program startups (such as HSA debit cards), or “minor” configuration changes with their vendor...but leaving CU*Answers out of the loop.
We don’t want to slow you down, but if we have to scramble at the last minute to make sure your plans stay on track, everything is at risk.
In 2008, we created a new position specifically to coordinate with you and be your liaison to our programming team. Our EFT Product Specialist is Nadine Thomas ([email protected], ext. 141).
Much like a conversion coordinator, Nadine is at your beck and call from the time you think about making a change, to the moment that change goes live. Please take advantage of this new resource – we need to be involved in the choices you make with your ATM/Debit vendor!
A note from the EFT Team...
Lately, CUs have been making decisions about changing vendors, new program startups (such as HSA debit cards), or “minor” configuration changes with their vendor...but leaving CU*Answers out of the loop.
We don’t want to slow you down, but if we have to scramble at the last minute to make sure your plans stay on track, everything is at risk.
In 2008, we created a new position specifically to coordinate with you and be your liaison to our programming team. Our EFT Product Specialist is Nadine Thomas ([email protected], ext. 141).
Much like a conversion coordinator, Nadine is at your beck and call from the time you think about making a change, to the moment that change goes live. Please take advantage of this new resource – we need to be involved in the choices you make with your ATM/Debit vendor!
Don’t let your network salesman sell you into a poorly planned change!
47
An ATM Sidebar...PBFs: 7 Days for the Price of 5!
Sending PBFs 7 days a week...for the same price as 5 days a week Operations will be offering a new service to send PBFs up to 7 days a
week Beginning with the 2009 business year (Oct. 1, 2008) Look for announcements coming soon on what is available from your
switch (5, 6, or 7 days) Make sure you verify the cost of additional days with your vendor before
you give us the green light
PBFs might not be your best bet for avoiding EFT fraud – dig a little deeper when it comes to understanding daily limits, deposit holds, and your options when your vendor is offline
The big question is, when (if ever) will PBFs go away?
48
Jumping to the Future
Workin’ Under the Hood
Project Released One CU Benefit Gained
Smart Operator June 2006 Continues to be focus of both Operations and Programming (do you know your numbers?)
Processing Date and BOD/EOD improvements
Oct./Nov. 2008 Flexibility for conversions, testing, releases (freedom from the calendar)
Member Reach automation
Oct./Nov. 2008 Consistently more, more, more
Insurance posting automation
June 2008 Custom to your CU and consistent for your member
Supreme 44th April 2008 Capacity, capacity, capacity
Did these changes get by you, or did you notice? Is there something here that you should take advantage of in 2009?
49
Jumping to the Future
CU*BASE: The New GOLD Standard (NGS)
Time to start getting ready...Something BIG is coming this fall! Like CU*@HOME, CU*BASE GOLD has been around a while
From August 1999: “CU*BASE ‘2’: A Focus on Presentation”
Time for the nextBIG change for CU*BASE GOLD...
50
Jumping to the Future
CU*BASE: The New GOLD Standard (NGS)
So how will NGS become a reality? Involves a client upgrade on every workstation
JWalk Windows Client 3.1C3 LegaSuite Windows Client 4.1 We have developed an automated tool, but someone needs
to sit down at every workstation and run the tool (about 15 minutes per workstation)
As of January 2008 (online CUs):– Total # of terminals: 3,436 # of branches: 254– Average # of terminals per branch: 14– Median # of terminals per branch: 10– Branches with more than 20 terminals: 49– Branches with 20 terminals or less: 205
Workstations may need to be upgraded to handle 1024x768 screen res.
We’ll be offering a discounted price for a bulk purchase of flat-panel 17” LCD monitors (around $160-170 depending on the size of the order) – watch for an
signup form coming in July!
We’ll be offering a discounted price for a bulk purchase of flat-panel 17” LCD monitors (around $160-170 depending on the size of the order) – watch for an
signup form coming in July!
51
Jumping to the Future
CU*BASE: The New GOLD Standard (NGS)
And this is just the beginning... 2,200+ help topics need new pictures and updated content
Our goal is to have all of these with the initial release, but stay tuned...
150+ booklets will need updated pictures and content Updates will be ongoing starting in 2009
125+ online training demo movies need to be recreated Some online courses may still show GOLD versions into 2009 Some “show me” and “let me” movies may be consolidated or eliminated
40+ Excel / comma-delimited downloads to be reprogrammed Will prioritize with about two-thirds to be completed in the first pass, and the
rest throughout 2009
Favorites, colors, and more...
52
Jumping to the Future
CU*BASE: The New GOLD Standard (NGS)
This is the presentation layer...“eye of the beholder” is everything We need to get you into the process and start refining it based on
what you see Ultimately, we must move forward and not be trapped by our own
past accomplishments
Visit the CU*Answers Kitchen and introduce your staff to the new look
53
Jumping to the Future
CU*BASE: The New GOLD Standard (NGS)
NGS Rollout Events NGS Rollout Events (Final dates to be announced.)
Official Kickoff June 18 Leadership Conf.
Preparing Your Network for NGS Monitor Bulk-Purchase Signup Announcement
Early July
Special Event: Preparing Your Staff for NGS Will include instructions about signing up for your
implementation time slot, similar to how we rolled out the CU*NextNET project
Early September
Credit Union Project Verification period Xtension/WESCO Net project to follow up to verify your
plan and key dates
September 1 – September 30
Implementation Period This is when your staff will upgrade to LegaSuite
Windows Client 4.1 and install the first version of NGS
October 1 – October 31
54
Jumping to the Future
eDOC Innovations
One of the biggest jumps to the future we have ever announced was the purchase of Reed Data in 2006
This was not only a software project...this was a business initiative At tonight’s Annual Stockholder’s Meeting, I will give a report on this
investment and its future In 2007, we built the ASP solution, and we’re off to the races with teller
e-receipts and electronic photo ID In 2008, we are adding loan documents and setting the foundation for
CU*SPY In 2009, eDOC Innovations will
be a force in Check 21 processing
See you at tonight’s Stockholder’s Meeting!
55
Jumping to the Future
eDOC ASP
Over 4 million receipts have been stored in the ASP vault Over 40,000 member IDs are online today as part of our ASP solution
47 clients (40 of which are CU*BASE users)
88 branches
There are 10 more branches in the queue 101 workstations, 42 sig pads, 51 scanners
The e-receipt and Photo ID product are a perfect entry tactic for developing an e-document strategy to be successful with your member If you are not one of these credit unions,
think about it for 2009
1,162 workstations 370 signature pads 389 scanners
56
Jumping to the Future
eDOC Loan Forms
eDOC Innovations can handle CU*BASE loan forms through its own processes today, and does for several of our clients
The new eDOC/CU*Answers ASP solution is about redesigning both sides of the equation and sending data in a new way to eDOC software A standard software change that can be configured for any CU*BASE CU A standard template for any e-document vendor in the future A new process that can extend beyond loan forms - data exchange will
become richer over time, for more types of forms
Kent County CU is the current beta and should be live by the end of this summer, and we’ll be off to the races in 4th Qtr 2008
57
Jumping to the Future
eDOC CU*SPY Project
Today, eDOC Innovations processes e-statements and daily reports for over 282 clients, 17 in the ASP environment
But all CU*Answers credit unions that process e-statements and daily reports through CU*SPY do so via the CoWWW (OSI) software
During the 2008 business year we have completed a gap analysis on the current processes used for CU*SPY that integrate with CU*BASE and It’s Me 247 online banking
During 4th Qtr 2008, CU*Answers and eDOC will start a project to replace the CoWWW software and fully integrate CU*BASE and It’s Me 247 with eDOC solutions
Personal Technology:
A Consumer Wave, or an Addiction?
How do we respond to a marketplace that seems to be going a thousand miles an hour, when most of our members seem to be standing still?
60
Gadgets or Business? A Member Tactic Does Not Always Equal a CU Business
My team spends a lot of time trying to interpret current trends and all the crazy things people do today, to figure out whether we can “credit union-ize” a consumer activity and make it a business reality for our organizations
It’s more than keeping upwith the Joneses
How do we navigategadgets, fads, infatuations,and passing fancies to come up with winning solutions?
“What Consumer Trends will Drive Innovation in 2009 and Beyond?”
Lisa Renner, CEO, CU Holding CompanyFrom the 2008 NACUSO Annual Conference
www.nacuso.org
61
Gadgets or Business? A Member Tactic Does Not Always Equal a CU Business
Does everything that today’s consumer does with personal technology, translate to something they want to do with the credit union? Text messaging? Watching YouTube videos? Social networking? Surfing the ‘Net? Downloading songs? Camera phones & Check 21? ...that “next big thing” you read
about in a magazine?
For all of us, this is real – we invest, we develop solutions
We need to figure this out together
62
Our Launch Pad to a Technology-Crazy World
The ideas are diverse, opinions can be polarized, and the member response can vary greatly according to personal feelings and experiences
But most of us agree that it is an investment that is just in its infancy
63
It’s Me 247 Online Banking
From December 5 to Today
Improvements since December 5 Transfer improvements Resolving the pesky “looping” issue Eliminating per-minute fees and usage tracking, changes to self-service
fees, marketing clubs and Tiered Services New “lite” and high contrast color schemes “Funds On Hold” inquiry
64
It’s Me 247 Online Banking
From December 5 to Today
Improvements since December 5 Increasing the speed:
More than tripled our bandwidth capacity
Also added web servers shortly after launch, bringing our total number of web servers to 6
Some might say, “A rapid response to a need you created!”
Others would say, “We’re off to the races for what our members need!”
65
It’s Me 247 Online Banking
“Version Dispatch” Project
New infrastructure and final stage in the move to the itsme247.com URLs Provides a method for multiple versions and beta-testing special software
builds – a safer environment for stretching the envelope with new features and tools
Final stage in eradicating CU*@HOME URL variations
Targeted for this summer, to be completed by September 1 (so we can beta-test A2A Transfers and e-Notices!)
Watch for more information coming soon...just be sure to wait until you hear from us before changing
your website links!
66
Making It’s Me 247 Online Banking a Richer Link to Your Members
We need to continue reaching out to members through email and electronic marketing like never before
Just since January, Member Reach has distributed 258,993 email messages 239,828 online banking messages 72,848 audio response messages That’s nearly 572,000 member
contacts in just five months!
In the next year, we will enhance how members are part of this process
67
Making It’s Me 247 Online Banking a Richer Link to Your Members
E-Statements and a new Online Banking Use Agreement New verbiage on the Use Agreement related to Reg E and online
acceptance of e-statements and other electronic notices If the member is enrolled via CU*BASE, the Use Agreement will
automatically be re-presented to the member the next time they log in to It’s Me 247
E-statement notifications 2 ways: through email or through an online banking pop-up message
New CU-configurable flag for whether the monthly notification must be delivered via email or whether the member can elect to receive just a message in online banking
If a member doesn’t want a paper statement in their mailbox, do they want an email in their inbox that
says they have a relationship with you?
Private is private
68
Making It’s Me 247 Online Banking a Richer Link to Your Members
Handling bad email addresses Will be adding a new “Wrong email address” flag in the MASTER record
Automatic pop-up message in It’s Me 247 requesting an updated email address from the member
Automatic pop-up message to CU staff from various CU*BASE screens
Marketing opt-outs Will be adding two new Y/N flags:
3rd party marketing contacts CU marketing/education contacts
Will allow members to opt out via It’s Me 247 or via CU*BASE Member Connect and other CU*BASE tools will use the flags
Preferred contact method
Do you get the feel of this? We want members to elect e-notices, to elect e-statements, elect e-alerts...and we want to do everything possible so they elect us as a trusted
partner when it comes to electronic communications and marketing
69
Making It’s Me 247 Online Banking a Richer Link to Your Members
Secure chat and file exchange The 2009 business plan will include an investment in a secure message
center to use Between CU*Answers and your credit union As the foundation for secure chat between your CU and your members
We have already identified a credit union as a proof-of-concept partner for building an Xtension Call Center web chat shared service offering
Will you be ready to answer member emails from It’s Me 247 or your website?
What comes to mind when I say Internet fulfillment? What comes to mind when I say Call Center fulfillment?
Other uses: gathering feedback from members on It’s Me 247 Surveys, comments, etc. – either in It’s Me 247, or Member Reach, or OBC
(make it a real community)
70
Making It’s Me 247 Online Banking a Richer Link to Your Members
Managing More than a Membership through It’s Me 247
Leveraging the Transfer Control feature for working with other credit union memberships - using It’s Me 247 and PIB controls for
Transferring $$ to other CU memberships Jumping to other CU memberships (no logoff required!) Transferring $$ to and from other financial institutions (A2) Navigating the Xtend Shared Branching network
71
It’s Me 247 Online Banking
Under Development Now
A2A (Account-to-Account) transfers between the credit union and other financial institutions Magic-Wrighter ACH interface
Both an online banking and CU*BASE product – for members and for staff
A new, more intuitive flow for transferring money in It’s Me 247It’s Me 247!
72
It’s Me 247 Online Banking
Under Development Now
e-Notices Biggest money saver since
e-statements Will include enhancements to the
online banking message center Filter by message type Delete messages
73
It’s Me 247 Online Banking
Under Development Now
Extending Tiered Services to the online banking member - Deepening the visible relationships
with members A project in 3 phases:
Part 1: What points did I get and how did I get them? (in development now)
Part 2: What rewards do I get for those points?
Part 3: Redeem my points!
These samples are from the prototype...and it’s already evolving!
74
Special Announcement:
Tiered Services Focus Group
Mark your calendars for October 16, 2008 We will unveil our plan for Tiered Services development for 2009 We plan some big releases throughout 2009 related to taking Tiered
Services to the next level What additional things would you like to see scored? How about unlimited dividend applications for scoring? Separate scoring/rewards system for organizational accounts? Is anybody really ever going to use Lifetime Points?
Starting over, rolling year(s)? Cap on lifetime points? Redeeming points when opening accounts, redeeming CDs, etc.?
Make sure your Tiered Services gurus mark this date on their calendars; we will be scouring Idea Forms and old wish lists to
get ready for this meeting
75
It’s Me 247 Online Banking
Under Development Now
Teller receipt analysis through e-statements Continuing to develop
It’s Me 247 as a strong tool for business members
(Also remember the Account Activity Analysis feature
added to e-statements earlier this year!)
76
It’s Me 247 Online Banking
Dreams Becoming Specs
Pending ACH transactions New wizard for the PIB profile Facelift for the Online Banking Community (OBC) Where does payday lending fit with online banking? Allowing members to change renewal settings on maturing CDs Opening accounts with expanded joint owner information
Either a variation of Transfer Control or pull from existing JOs only
“Next Suggested Product” and more automation around the personal profile of a member
Big goals for the 2009 development year...Look for focus groups and In-The-Kitchen
projects to help move these along
77
It’s Me 247 Online Banking
Downloads to Quicken / QuickBooks!
It’s finally here! Intuit’s annual cycle runs Aug 1 – July 31
No pro-rating for partial years
Remember features that are already in It’s Me 247 to help members move data for their personal finance analysis Download from CU*EasyPay! to QIF file Account Detail filters XML downloads to CSV files E-Statement Account Activity Analysis Teller Receipt Analysis (coming soon)
Do you have a flyer or web page with tips that sell how much your members can already do
related to moving information?
78
Risk Assessments for Online Activities...NOT a one-time event!
We continue to improve the process to roll out PIB to your members Most recent changes
Ability to allow online PIB access for staff but not for members, or to switch gears down the road
Ability to “flood” new default profile settings to all member PIB profiles
PIB is a very important tool in managing online risk – you need to get active
PIB is becoming a major platform for extending new services to your membership – you need to get active
So if you thought PIB was yesterday’s news, think again
In the next 12 months, you need to get active with these ideas
79
Risk Assessments for Online Activities...NOT a one-time event!
Expanded passwords for online banking We have no choice . . . Do you? As of June, 19 CUs still use the same PIN for audio and online banking
(no change since January) Some CUs still use passwords fewer than 6 characters
Important Sunset Announcement:
As of June 30, 2009:
We will remove the ability for CUs to use the same PIN for audio response and online banking
We will increase the minimum password length from 4 to 6 characters
As of June 30, 2009:
We will remove the ability for CUs to use the same PIN for audio response and online banking
We will increase the minimum password length from 4 to 6 characters
80
Banca en línea en español(Online Banking in Spanish)
In 2009, we will begin a project with a new CU*BASE user to deliver a Spanish language version of It’s Me 247 online banking
This will be a journey, not a project – you can translate something, but does it still convey the right message in the other language?
Should we translate: Online Banking Community? Every web page? Our online help? Your messages to your
members? Transaction descriptions? Sales and product
description information?
http://translate.google.com
81
Where are members taking us?
Deposits from Home
“Remote Capture” – Member check deposits via an image that the member scans and sends from home
From eDOC, to the CO-OP Network, to the corporate credit union network – everyone is working on the ideas around remote capture
It is easier than it is safe Are you ready to jump on
this bandwagon?
www.deposzip.com
Look for an eDOC solution early in 2009
82
Where are members taking us?
Mobile/Cell Phone Banking
We haven’t found a vendor that we believe has any of the following: A credit union willing to invest A financial model to entice the CUSO to invest A market analysis that says members are
ready to adopt A prospective client saying this is a
deal breaker
Therefore, while I continue to have meetings, stay in the loop, and watch for signals, mostly it’s still a wait-and-see game for us
83
Where are members taking us?
Text Messaging
Currently reviewing partners who would convert online banking and email messages sent to members from CU*BASE, into text messages that could be distributed through the cell phone channel Member Reach messages Member-elected e-Alerts Marketing messages around member preferences
The trick is defining who wants this kind of message and how to afford it
Today, an internally-developed solutiondoes not seem practical
What is your budget for text messagingto your members?
www.celltrust.com
84
What are you thinking about?
When that one-in-a-thousand member walks in and says, “When will I be able to check my balance through my car radio?”
what will you say?
When will Ford advertise that their Synch product will dial into ARU? (I still think holographic banking might be a way off)
85
Navigating the PossibilitiesWhat do we use for a technology compass?
For it all to come together, we need a meeting of the minds on where members are taking us, what’s hot, and what’s the business opportunity
87
To achieve the lowest cost of going active with innovation
To achieve the lowest cost of going active with innovation
To have the lowest cost in the industry for compliance
To have the lowest cost in the industry for compliance
To be known as one of the most aggressive mortgage servicing networks
To be known as one of the most aggressive mortgage servicing networks
New Declarations: Our Goals
88
Lowest Cost of Going Active With Innovation
A Well-crafted Network
Last year we introduced the concept of A.S.A.P. (Ask, See, Act, Profit) “Zipping” the process of marketing communications
How could a well-crafted network do the same for innovation? Speed the time between finding an idea and executing on it Speed the time between recognizing a need and delivering a solution Eliminate the duplication of standalone work and replace it with the benefits
of shared work
Well-crafted networks are rich in content and the tools that make all that is known, visible to all participants
But once things are visible, how do you make them your own? How could the relationships that we build in CU*Answers allow us to simply import, append, or ratify your next solution?
89
Lowest Cost of Going Active With Innovation
A Well-crafted Network
Some early examples:
But how much further can we go?
90
Lowest Cost of Going Active With Innovation
A Well-crafted Network
Some ideas we are continuing to work on:
Phase 1 was for your auditors with the view-only configurations on the new MNAUDT menu; look for a growing list of visible configurations
Choose a peer:
Learn from a peer
91
Lowest Cost of Going Active With Innovation
CU*Talent: A 2009 Initiative
At a recent Board Planning workshop, I introduced the concept of CU*Talent and a new Intranet initiative On the ground floor ... Later this year CU*Answers will go into the
Intranet business At 5,000 feet ... Our new Intranet Community servers will allow credit
unions who utilize SRS services to go live with our shared personnel At 10,000 feet ... There is a potential
for 3,000 credit union employees and 100+ organizations to go live to capture talent in a brand new way
http://cuanswers.com/pdf/ppt/Passageways_PowWow_May_08.ppt
92
Lowest Cost of Going Active With Innovation
CU*Talent: More than a Technical Highway
For CU*Talent to work, it will need more than a cool highway of bits and bytes and technical wizardry
It will take people, and blending the ideas around leadership, coordination, succession planning, and HR standards with a new-age respect for all that could be accomplished by an active collaboration of talented credit union professionals
93
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union
CU*Answers has a rich history with using an Intranet to improve our organization
Whether it be SAS70 examinations, new employee orientations, tracking team activities, or simply organizing the tens of thousands of documents, forms, and stuff that we need to do our day-to-day jobs
For several years now, we’ve been touting the power of what an Intranet can do for any organization
In 2009, we will bring a new solutionto the owners and participants ofCU*Answers
94
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union
CU*Answers employees went
live on June 11
95
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union
Our new partnership with Passageways is a unique venture It is based on the mutual aspirations of both CU*Answers and Passageways to
build an aggressive network of Intranets for a new kind of sharing It started with an investment by CU*Answers that assures every CU*BASE CU the
chance to use one of the premier portal tools on the market
This shared investment will allow CU*Answers to extend this new ASP service to your CU through our existing education and web services channels Both CU*Answers and Passageways are investing
How much do we have to charge for the software? ($0, according to the contract – the software is paid for)
How much will it take in support to get your team up and running? (best guess, $1K-$2K one-time fee, but your do-it-yourself attitude might surprise me)
This is truly a network investment, and it will take until January 2009 for us to deliver the details
96
How much will it cost on a monthly basis?
The payoff from this investment is not the direct return of monthly revenues or big up-front software sales...it will come from building a network of digital organizations that thrive, and seeing what opportunities there are in sharing
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union
This is truly a network investment, and it will take until January 2009 for us to deliver the details
Asset Size Monthly Maintenance
$0 - $50M $300 per month
$50M - $200M $450 per month
$200M + $600 per month
97
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union
The Passageways Portal is a rich environment of modules that ensure that your operation is enhanced by more than just a highway or communication portal
This investment includes: The Portal Framework Group Collaboration Module Expense Reporting Module Microsoft Outlook Module E-Forms Builder Module
Consistent with other investments like this, credit unions will have the opportunity to purchase other modules to enhance their individual configurations
Help Desk Management Module Timesheet Management Module Assigned Tasks Module Products and Services Module
Learn more at www.passageways.com
98
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union
Rough, big-picture vision of the calendar:
This is a work in progress...if you need to move now, and have the funds and the staff to do so, we encourage you to talk to Passageways and get started
(Just remember that we told you we’re going to do some big things in the future!)
Phase 1
CU*Answers goes live
(June 2008)
Phase 2
cuasterisk.com partners go live as ASP nodes
Phase 3
Credit unions go live as ASP
nodes
Phase 4
SRS Community
servers go live (bookkeeping,
collections)
Phase 5
Credit unions start to offer
services through community initiatives
99
Lowest Cost of Going Active With Innovation
Tiered Service “The Network View”
This booklet was designed from a new program that aggregates Tiered Services scoring of all CU*Answers online credit unions in a single operation
We anticipate adding a command key to the Tiered Services analysis that would allow you to view and compare your results with the network on a monthly basis Benchmark your performance Search for what you have in common and what
makes you different Inspire your teams Search for peers who might help you with
your next idea
What has changed since 2005 about the way your members score?
100
Lowest Cost In the Industry for Compliance
A Collaborative View
It’s easy to agree and cooperate on things that have a single answer 1+1=2 ... everyone agree?
That is, until we don’t all use the same formula BSA method 1: Combine $$ in and $$ out BSA method 2: Separate $$ in from $$ out
The interpretation of rules, and then how to execute on that interpretation, never seems to have a single answer Reg. D configurations, Reg. E configurations, BSA configurations, Chart
of Accounts configurations...
For a data processor, whose golden rule is “we create tools, not rules” – building a compliance company is a real challenge
From the DP perspective, you are on your own when it comes to gray areas in compliance
But what about our CUSO, our network perspective? Could it be different?
101
Lowest Cost In the Industry for Compliance
A Collaborative View
So from the CUSO perspective, could we build a cooperative, collaborative view of how to comply?
Could we have a working model to analyze, understand, and even make judgment calls about one way to do it?
Could we have a working model that aggressively tries to drive down the cost of day-to-day execution around compliance and auditing?
Could we use that aggressive model to improve the software and tool foundation that everyone uses in diverse ways?
The vision is Yes – and in 2008, we are starting Audit Link
102
Lowest Cost In the Industry for Compliance
Audit Link
Audit Link is like SRS Bookkeeping Do the work, every day, using CU*BASE tools intensely Drive throughput as hard as possible and innovate to meet the goal Share with everyone, clients and non-clients, what we learn – be a
template for everybody
Do you have documented processes to innovate against?
It’s more than just a user manual
103
Lowest Cost In the Industry for Compliance
Audit Link & SRS: An Active Collaboration
In 2009, we plan to leverage the participants in Audit Link and SRS as the working focus groups to take on the challenges related to understanding if a project makes sense, then designing specifications, project oversight, and implementation of some key projects: Automating third-party risk assessments (defending our products)
5300 reporting and analysis (streamlining a quarterly chore)
Red Flag (it’ll take a group of us to figure this one out!)
Enhanced Due Diligence (work-flowing new member processes)
A network solution for ALM (using data better)
EDD open suggestion period runs through June 30 – send your ideas to [email protected] (we’ve
heard from just 5 of you so far!)
104
Lowest Cost In the Industry for Compliance
Audit Link Up and Running
Developed new business plan and rolled initiative to client base in January 2008
14 credit unions sign up by April 2008 6 credit unions currently have been through an initial contact Doing the daily work for 4 CUs
with the expectation of 10 by the end of the Q3
New web site for Audit community by the end of Q3 to explain the new audit community, compliance updates, audit blogs, best practices
http://xtendcu.com/pages/audit
105
Lowest Cost In the Industry for Compliance
2008/2009 Actions Towards This Goal
Tools for your Auditor (released June 2008)
MNAUDT Audit Tracker
Coming soon...another round of BSA improvements The problem: Sources of activity that fall under
BSA monitoring rules are changing CU*BASE shared branch activity National shared branch activity Unspecified activity (will ATMs ever fall in here?)
To date, we’ve resisted and followed suit with the nationals, trying to exclude shared branch activity from the base BSA monitoring
We didn’t win, and changes are needed for 2008...
106
Lowest Cost In the Industry for Compliance
The Future of CU*BASE BSA Tools
Sending a warning to the teller handling a member’s visit The “visit” is your member or a
shared branch member The message just says “Verify
against BSA rules” – a signal that something should be done
The SARS-type message says “Member has other transactions today”
External sources will not be evaluated for interactive messages for the foreseeable future
Based on the CU’s BSA configuration Evaluates only activity that occurred
at the member’s CU Analyzed at end of day Creates the BSA summary for
recommending activity to audit through the BSA Inquiry/Report
Will add additional sources of member activity to the file that is analyzed at end of day Starting with Xtend SB activity Next: FSCC pilot project Will create an engine for future
sources of activity
InteractiveInteractive Daily Analysis/MonitoringDaily Analysis/Monitoring
107
Lowest Cost In the Industry for Compliance
The Future of CU*BASE BSA Tools
Audit Link will use these tools like never before...and that will lead to some great new changes
108
Lowest Cost In the Industry for Compliance
Privacy 2010
A different song, but the same melody BSA tries to aggregate activity amongst diverse channels – without new
tools, there is the potential that shared branching might not be an option in your future
Member privacy issues are now changing the way we look at the individuals in these diverse channels, and how much access they have to your member data – without new tools, we might not have options to share resources in your future
What is a “trusted individual?” Privacy 2010 – an ongoing project
Part 1: “Sanitize” Teller/Phone/Inquiry screens, new configurable Privacy Controls
Part 2: Expand Insider/Employee Security Audit for Shared Branch Activity
Part 3: Block search capabilities for shared branch tellers Part 4: Code Word pop-up Part 5: Masking Account Numbers on Statements
http://www.cuanswers.com/kitchen/privacy2010.php
109
Special Weather Alert for Member Privacy:
A Potential Storm Coming
Every month, our Operations team sends packages containing large groups of member statements back to CUs According to your Statement Mail Group codes Returned from Sage to Ops, separated by CU and packaged by
Operators, then sent via UPS (a whole lotta human intervention!) December 2007: 86 CUs had batches of paper statements in transit
(as of March 2008: 67 CUs) Earlier this year we sent an email to remind CUs about how you can
change your Statement Mail Groups to archive these statements instead of printing them
Available immediately, can print on demand, and not exposed
Not sure if credit unions see the risk here...will it take a fee?
110
An Aggressive Mortgage Servicing Network
Building a Core Competency
On almost every front, our network needs to ramp up its core competencies related to mortgage lending and servicing
Since last year, Lender*VP has made great strides Origination through Prime Alliance
8 clients in Production (4 CUs in the queue, 1 CUSO testing) 1,017 total loans 414 Freddie Mac 6 FHLB 597 Online CU*BASE
Servicing through Lender*VP Escrow & agency settlement
on mortgages for 17 CUs
111
An Aggressive Mortgage Servicing Network
Building a Core Competency
Since 2003, we have completed many mortgage-related projects In 2009, we will be releasing three new projects that will greatly
expand the flexibility of our mortgage servicing platform “Escrow 365”
Intelligent escrow processing for loans that have multiple payments per month CU*BASE will understand when the escrow transfer has been satisfied and
when it is delinquent Broadens the database for escrow processing
“Simple 360” A new interest calculation type where interest for a 30-day period is applied on
a daily basis, mimicking a 365-daily accrual – 12 equal months of 30 days, spread over 365 days
30 days interest ÷ 28 (or 30 or 31)
Great for members, although problematic for compliant 360-day processing
Extending 360-day capabilities...
112
An Aggressive Mortgage Servicing Network
Extending 360 Capabilities
Eliminate the significance of the 20th of the month Members will be able to pay any time, on demand If payments are made prior to the 20th, system will perform an interactive
calculation of interest due and post interest collected to income Payments can be made ahead (i.e., post the August pmt on June 28) Intuitive messaging for the user to declare their intent when posting a
payment “Are you making your August payment now, or would you like to pay extra on
principal?” Based on the response, the system will know how to post the payment spread
Phase 1 will include CU*BASE Phone Op and Teller posting, It’s Me 247 online banking, and all transfer programs
Beta slated for April 1, 2009
113
Lender*VP: A Foundation for Lending
We would be remiss if we thought we could tackle such an aggressive goal without mentioning the team that carries the ball when it comes to lending
The team will expand from 2 to 3 in the next two weeks Spend some time on this website...
“New Loan Opportunities” “Bring Your CU to Your Member” “Pay Day and Short Term Loans” “Expand Your Credit Card Options” “Collect a Perfect 10 for You &
Your Credit Union”
http://lendervp.com
114
Lender*VP: A Foundation for Lending
Collections - 2 1/2 staff 9 current Clients 15 Bids Outstanding 20,552 accounts worked in 1st 120 days Leveraging ACH origination in 2009
Decision Model 22 clients 25,226 pulls in 1st 120 days
Retailer Direct Sites 15 CUs - 32 retailer sites 334 applications for past 120 days
Dealer Track 2 clients first 120 days 817 total applications
Lender on the Road 15 CUs
Online Credit Cards 43 CUs 61,829 Plastics Issued $113,965,435.49 outstanding in loans
as of 5/30/08 4 Pending 2008 CC Conversions
Pay Day Lending 1 Current site - 374 applications in the
month of May 14 Early Movers Leveraging ACH origination in 2009 Leveraging stored
value cards in 2009
In the first 120 Days of 2008 (Jan.-Apr.):
Lender*VP and Xtend leaders are becoming very adept at taking every tool we have on the network and getting two
or three solutions from that investment
115
Lender*VP: A Foundation for Lending
A network of lending activity, still waiting for collaborative innovation
What would an opportunist do with 125,000 opportunities so far this year?(that’s the number of credit checks done by our network so far this year)
CU Loan Applications
Booked 19,836
Applications 3,263
Denied 6,117
Online Banking Apps
Booked 835
Applications 523
Denied 970
An Average Month
116
Student LendingLender*VP Working With National Partners
CU*Answers is one of the many vendors that are partof the processing network for this new CUSO
In 2009, Lender*VP hopes to be one of the first network aggregators to work with StudentChoice and build an integration between our network and theirs
If you need to move now,check out this URL formore information and a compelling argument on why you should getinvolved
http://www.studentchoice.org/media/doc/CUStudentChoiceIntro.pdf
118
New Directions in Software
As the “Jump to the Future” projects mature and the NGS release is behind us, the balance of 2009 development projects will be much more eclectic
Our crystal-ball view for the coming year: Online banking changes will continue throughout the rest of the year NGS will dominate our software releases until the end of the year
Many new features will have to wait until we move everyone across to the new presentation layer
The spring 2009 release will be dominated by mortgage and compliance tool changes (shared businesses will be a huge focus during this time)
The balance of 2009 will return to a more diverse set of projects (a return to the “spec book”)
Here’s a sampling of some of the eclectic things on our drawing board...
119
Speaking of shared businesses...
It looks like payday lending will be one of the hottest collaborative efforts in 2009
www.myprospera.com
120
“Save the Whales”Automated Dividend Donations
Currently running a beta with FOCUS Credit Union in Wauwatosa, Wisconsin, that allows members to assign their dividends to a charity of their choice
CU*BASE uses a new dividend payment code to funnel a specified percentage of the dividend payment (50%, 100%, etc.) to a specified G/L account number
The basics are done, and we will be adding even more flexibility during 2009
Look for a new section on the Kitchen page later this year
121
“Keep The Change”Automated Savings Transfers
It seems like people go hot and cold on programs that are designed to help the member save subconsciously From programs that round-up debit card transactions, to rounding up loan
payments, to this Wachovia program that actually tacks an extra $1 onto multiple kinds of transactions
Effectively, this is like throwing loose change into the coin jar at home – but who has loose change in their pockets anymore?
We completed a test product for lending in 2008, but it has not moved forward – too hard to explain to members
How do you feel about these kinds of processes?
www.wachovia.com/savings/way2-save.html
122
“Qualified Dividends”Conditional Dividend Posting
What we are planning to do is create the engine for these basic processes first: Set the product to pay a Qualified Dividend, on Schedule A or B
Schedule A is a single/base rate, and Schedule B has a possible tiered structure
Develop a Conditional Dividend configuration by Dividend Application Rules are unique for the product and tightly integrated for efficient processing Possible conditions, to grow over time:
– Activity by delivery channel, amount, and number of transactions
– Test for e-services (e-statements, bill pay, etc.)
Develop the dividend payment programs to evaluate members before paying dividends
Run the conditional tests and determine which schedule the member qualifies for
Pay dividends according to the qualification
123
“Qualified Dividends”Conditional Dividend Posting
By the end of 3rd Qtr 2008, we’ll be off to the races with three CUs One with BankVUE Two with the native
CU*BASE solution
We need to use the Know Your Member, Marketing Club, and Tiered Service database evaluation tools we have already written, as part of this new process, so that employees have easy verification of why and how members earn dividends
124
On the Drawing Board
International ACH Transactions (IAT) Significant overhaul of our ACH processes and database to format
international transactions OFAC compliance for IATs Will the new ACH rule arrive on time (March 20, 2009)?
Membership Designation enhancements Label for DBA field Control where DBA name prints (statements, etc.) Omit from IRS reporting Continuing education on the power of identifying member profiles
TCR interface DeLaRue is stepping up, and so will we by the end of 2008
125
More on the Drawing Board
Here’s the long and the short of it depending on your point of view – our internal teams continue to debate the priorities on projects like these Lending write-off enhancement (tracking multiple LLP G/L accounts) Simple share write-off tool Employee Performance Tracking (Sales/Lead Fusion) “Next Suggested Product” engine Member Service phase 2.5 (closed account behind-the-scenes)...
life happens Sub-prime Lending / Shared Lending iSeries-to-iSeries shared branching Club Benefit accrual enhancements
So the question is, are you plugged in to the debate? Do you feel you have an effective voice? (more on that later...)
A Year of Collaboration
The market response to CU*Answers collaborative concepts has been amazing over the past year
Who knows? When we look back, we might cite 2008 as the year it all began to click for a whole new generation of credit union leaders
129
The Spirit of a NetworkDe Novo Support
Using our 15 minutes to declare our intentions... No industry can continue to count on a future unless it works hard to seed
that future with new endeavors and the spirit of startups No collaborative firm can count on a future unless it understands how to
embrace the spirit of hope and what that hope means to those starting out fresh and to those who need a renewed enthusiasm
Our network is committed to the future of the credit union industry, and therefore, obligated to invest in those who would take the chance to start a credit union
You advertise good intentions, but you work one project at a time, for a long
time, to build a credit union
130
The Spirit of a NetworkScholarships
Using our 15 minutes to declare our intentions... No industry can continue to count on a future if it gives up on the
individual organizations before they give up on themselves No collaborative firm can count on a future unless it recognizes that it
needs to invest and trust in those who are dedicated to giving it just one more try (over and over)
Our network is committed to the future of the credit union industry, and therefore, obligated to invest in those who vest their dreams in building credit unions
You advertise good intentions, but networks are built one partner at a
time...and what is a collaboration without partners?
131
The Power of the NetworkLiving a New Credit Union Future
Accolades, accolades, accolades...understanding the importance of how we earned our 15 minutes of fame
With all the hoopla over the theories of networks, the spirit of cooperation, and the marketing concepts, it’s easy to forget the power of the network is YOU and the day-to-day work we all do on behalf of your members
So if through that day-to-day work we are sneaking up on the marketplace, one partnership at a time, it’s best to remember that it’s not rocket science, it’s simply peers helping peers
Maybe the best way to get our point across is through laughter...
132
The Power of the Network Building the Business, One Partner at a Time
Today, we are a network of CUSOs with a network of governing Boards and participating CUs
Amplifying the commonalities of our tools, vision, and hopes
Defending the diversity and the importance of local organizations to deliver member value, one relevant person at a time
cuasterisk.com
133
The Power of the Network CU*BASE As the Common Factor
142 Credit Unions in 18 States
1
6
2 3
1
7
16
2
78
4
11
1
1
12
3
Processing on CU*BASE as of June 2008
1
1
1
# of CUs by State
134
The Power of the Network CU*BASE As the Common Factor
Michigan (555,200)Wisconsin (207,400)Ohio (55,900)Indiana (32,300)South Dakota (31,400)New York (30,200)Oregon (26,600)Washington (23,600)Connecticut (21,100)Texas (14,600)Maine (13,600)Florida (13,500)Alabama (8,200)Illinois (7,300)Kentucky (7,000)Minnesota (1,500)Louisiana (300)New Jersey (100)
IN
CT
NY
TX
OR
MEFL
OH
KYIL
WI
MI
CU*BASE Credit Unions: 142Total Members: 1,049,800
SD
AL
MN
Processing on CU*BASE as of June 2008
WA
# of Members by State
135
Michigan Clawson Community CU
(Clawson, MI)
Chiropractic FCU(Farmington, MI)
Detroit Municipal CU(Detroit, MI)
Iosco Community CU(Oscoda, MI)
Great Lakes Members CU(Dearborn, MI)
Kensington Valley CCU(Highland, MI)
United Educational CU(Battle Creek, MI)
Your New Partners:New Clients Since Last Year’s Meeting
Wisconsin Glacier Hills CU
(West Bend, WI)
Federated Family CU(Milwaukee, WI)
South Dakota CR Community
First CU – Startup (Eagle Butte, SD)
Ohio New Horizons CU
(Cincinnati, OH)
Florida Sarasota Municipal ECU
(Sarasota, FL)
Including mergers, over 96,000 new members added since last year
136
Michigan Community West CU
(Kentwood, MI) – July 2008
Lake Huron CU(Saginaw, MI) – Jan. 2009
Wisconsin Firefighters CU
(LaCrosse, WI) – July 2008
Superior Choice CU(Superior, WI) – Oct. 2008 Self Processor
Heartland CU(Madison, WI) – April 2009
Your New Partners: New Clients Coming Soon
Including mergers and other pending contracts, 23 new clients and over
160,000 members are in the pipeline
Florida Sentinel Graphics FCU
(Ft. Lauderdale, FL) – Sept. 2008
Indiana Allegius CU
(Burns Harbor, IN) – Nov. 2008
South Dakota Sentinel FCU
(Box Elder, SD) – May 2009
Ohio Franklin County CU
(Columbus, OH) – Sept. 2008
...plus 14 other pending conversions and mergers already being scheduled through mid-2009!
137
The Power of the Network A Network of Owners
Percent of Total CUs: 61.2%
1
1
1
8
56
3
1
3 3
1
8
87 Owners in 16 States
1
138
The Power of the Network When Local Makes Sense
14 CUs online by end of BY2008 2 CUs went online with credit cards 8 CUs went online with ATM/Debit 3 CUs went on eDOC Bookkeeping for 10 CUs Level I Firewall management local to
CU*NW Customer Service 100% local to
CU*NW Staff increased from 6 to 12 I5 system replaced (tripled capacity) Client led training event at CU*NW
First online client converted to CU*BASE March, 2007 Since then, 5 more clients have
converted 6 conversions scheduled in the next 12
months
Board working to offer Prospectus by 12/31/2008
Engaged in collaboration with our valued network partners: Programming with CU*Answers (ATM
Pause for a Cause) Conversions with CU*NorthWest Client Systems Support
(WESCO Net) eDOC implementations for new clients
139
The Power of the Network Emerging e-Document Strategies as the Common Factor
eDOC Innovations is a new style of network partner for cuasterisk.com It brings a diverse client base to the table
321 credit unions 30 non-credit unions (mortgage, banks, accounting firms, medical clinics,
institutions of higher learning, automotive)
It represents a large population of CU members and opportunities for our network to influence
5,078,000 members
It has a broad geographic footprint 45 states and the District of Columbia (exceptions VT, NH, ME, WV, HI)
It represents a large vendor population Integrated with 47 different DP vendors/software tools
It’s easy to see the potential...it will be hard work to turn potential into shared
opportunities
140
The Power of the Network Check 21 as the Common Factor
The Processing Alliance (a partnership with CorpOne FCU) 38 Check 21 clients in various stages of implementation April volumes:
387,221 live collection (Phase II) 481,831 archived images (Phase I & II combined)
45 direct deposit clients remaining Approximate monthly volume remaining: 700,000
CU*Check Item Processing, The Processing Alliance, and eDOC Innovations are all collaborators on a new future for check processing concepts Branch capture, merchant capture, member capture What does the reduced check volume mean to the system? To
cuasterisk.com?What seems so new, still boils down to hardware, software, and
execution...cuasterisk.com will be in the middle of it all
142
The Power of the Network Executing With the Tools as the Common Factor
It started with Manufacturing Time and the vision for getting the job done on a daily basis
Today, Xtend represents 45 stockholders in 9 different states 7 major initiatives averaging 32 clients each
If you missed the Xtend annual meeting, then you need to connect with Scott Collins – this is quickly becoming more than a sidebar
143
The Power of the Network Building the Business, One Shared Business at a Time
“Are you going to offer shared bookkeeping to credit unions that are not on CU*BASE?” “Will you be able to do Audit Link for $200 a week for any credit union?” “Why doesn’t LenderRE have lock box services for posting payments?”
The formula for our shared businesses is simple: add the missing piece, use tools that are already in place, and partner with existing capacity to complete the job
Using this formula, we can Redefine the pricing for shared services Avoid the conflict between a CU job and a CUSO job Build an engine for innovation and competency
expansion Capture the benefits of scale Help our peers go on the offense
144
The Power of the Network Building the Business, One Shared Business at a Time
We use this formula for building shared businesses on two levels:
cuasterisk.com Shared Execution
SRS Bookkeeping
Xtension
Audit Link
Lender*VPXtend Shared
Branching
Mortgage Servicing
Member Reach
145
cuasterisk.com Progress Report
Resource Sharing Client service after hours
calls move to CU*NW “Pause for the Cause”
contracted with CU*South programming staff
CU*NW extends conversion support for CU*South
CU*NW internalizes SRS Bookkeeping
CU*NW, CU*S and CU*A share conversion personnel
CU*NW transitions firewall management to Spokane from WESCO Net
cuasterisk.com Off The Ground Defined the partnership community and
reason for being in the business of collaboration
Completion of new web site to market the value proposition of the network partners
Rolled out “Power of the Network” marketing material
Coordinated CU*Answers nomination for NACUSO award
Speaking engagements with NACUSO and demonstrations to credit unions on CUSO formation
www.cuasterisk.com
146
Shared ExecutionWhat’s Next?
We can connect the tools, we can connect the employees, we can share in the execution for the members...What’s next?
SRS Bookkeeping
Xtension
Audit Link
Lender*VPXtend Shared
Branching
Mortgage Servicing
Member Reach
147
Shared ExecutionWhat’s Next?
How far down into the stack will credit unions cooperate? Sharing a marketplace? Presenting like products and services? Sharing resources (branches)? Sharing team members? Doing business with multiple memberships? Coordinating multiple Boards? Develop shared leadership businesses?
Products and Services
Resources
Teams
Senior Team
CEO
Board of Directors
MarketplaceMarketplace
MembershipMembership
If the environment was right, would you start a business to sell your expertise to a peer? Would you hang out a shingle on a
shared network?
149
CU*ByDesignA CU*NorthWest Project
CU*Answers and Xtend have started by building the components that ultimately might be put together to define a full solution picture for selling leadership to CUs
The CU*NorthWest team is looking at starting with the big picture and developing a vision of a leadership resource to pick up the ball and run when it comes to building and designing credit unions CU*ByDesign – a project management firm that would identify and
coordinate network resources From one-off projects, to department leadership, and eventually to full
credit union management services
The CU teams that make up CU*NorthWest get the vision
They’re about to start the hard work on turning vision into reality
150
Shared ExecutionCU*Blitz and TAG Marketing
The TAG team provides guidance and marketing assistance so you don’t have to figure it out alone CU*Blitz has provided marketing relief to 39 different credit unions since it
was launched in 2006 By year-end, CU*Blitz will have sent 375,000 postcards, and inserted
over 700,000 statement messages To date, 3 workshops have been held to focus on marketing using
CU*Blitz with CU*Answers tools (another coming this Fall!)...all rated by participants as “exceeded expectations”
CU*Blitz materials were used in newspaper ads, newsletters, lobby shows, websites and car dealership promotions, drive-up/lobby handouts
Participants are reporting increased focus and results, and are building their memberships!
“I LOVE partnering with you to provide this awesome marketing service to us. It makes my life so much easier... I’m sure this will have a positive impact on our
product penetration. Thank you! - Brenda S. Lippens, President/CEO,
Delta County CU
“I LOVE partnering with you to provide this awesome marketing service to us. It makes my life so much easier... I’m sure this will have a positive impact on our
product penetration. Thank you! - Brenda S. Lippens, President/CEO,
Delta County CU
151
Shared ExecutionCU*Blitz and TAG Marketing
Some enhancements for the 2008 program: The CU*Blitz library continues to grow with more
products to market New! Hispanic versions of CU*Blitz now available
TAG offering big discount launch period
New! Value-added internal marketing kit will be available to help you focus and motivate staff
Xtension is coordinating CU*Blitz messages with phone calls to members
“Blitz has really helped improve the quality of our
marketing pieces at a price we could not get on our own. It has also helped get us a step closer to a cohesive annual
marketing plan. Those are two solutions that a small credit union, like ours, can really
use.”- Joe Strauss, Kensington Valley CCU
“Blitz has really helped improve the quality of our
marketing pieces at a price we could not get on our own. It has also helped get us a step closer to a cohesive annual
marketing plan. Those are two solutions that a small credit union, like ours, can really
use.”- Joe Strauss, Kensington Valley CCU
Make sure you visit the TAG vendor booth today!
“CU*Blitz has provided the missing link that was needed in our advertising schedule, that I simply couldn’t fill on my own...the team at TAG Marketing are easy and flexible to work with while all along keeping prices down. It’s just another example of why Credit Unions know where it’s at, by working together we are
making it better for all of us. Thank you for giving us this essential tool.
- Jenny Bickel, VP Marketing, Frankenmuth CU
“CU*Blitz has provided the missing link that was needed in our advertising schedule, that I simply couldn’t fill on my own...the team at TAG Marketing are easy and flexible to work with while all along keeping prices down. It’s just another example of why Credit Unions know where it’s at, by working together we are
making it better for all of us. Thank you for giving us this essential tool.
- Jenny Bickel, VP Marketing, Frankenmuth CU
152
Shared ExecutionPartners in Practice
The latest collaborative marketing effort has seen record-breaking participation!
E-Statements enrollment contest to win a Nintendo Wii® Game Console
Running July 1 – August 31, 2008
57 CUs participating 582,904 inserts being
mailed to credit union members – a new record for our CUSO!
http://marketing.cuanswers.com
153
The Power of the NetworkAll That Is Known, is Visible to Its Participants
In the end, one of the greatest strengths of a well-crafted network is that its participants can pick and choose how they use it, and how deeply they integrate with their partners
Whether it just be a client-vendor relationship, or an active alliance with a subset of players, or a full-out assault on everything possible when it comes to collaborating with every cuasterisk.com partner...it’s up to you and your business plan
One thing is for sure – we’ll keep trying and pushingmore and more information your way
155
Randy’s Top 10 Using CU*Answers Tools You Already Have
1 Commit to having more e-statement members than online banking members
2 Commit to cutting your notice postage in half by year-end 2009
3 Exit the mortgage crisis as a stronger, more competent mortgage lender
4 Figure out student lending – today’s big need for the next generation
5 Inventory your talent and know the difference between talents and job descriptions
6 Find 5 new ways to prove to your Board that you know your members
7 Invest in your advantages and communicate your value every single day
8 Create a digital vault for why members should select you and your services
9Investigate 5 processes that you could improve or evolve in 2009 without buying
something
10 Review last year’s Top Ten and see what you put into action (be tough on yourself!)
156
1 Commit to having more e-statement members than online banking members
2 Commit to cutting your notice postage in half by year-end 2009
3 Exit the mortgage crisis as a stronger, more competent mortgage lender
4 Figure out student lending – today’s big need for the next generation
5 Inventory your talent and know the difference between talents and job descriptions
6 Find 5 new ways to prove to your Board that you know your members
7 Invest in your advantages and communicate your value every single day
8 Create a digital vault for why members should select you and your services
9Investigate 5 processes that you could improve or evolve in 2009 without buying
something
10 Review last year’s Top Ten and see what you put into action (be tough on yourself!)
Randy’s Top 10 Using CU*Answers Tools You Already Have
MNMRKT #25 Tiered Services Monthly Comparison – track to attack
Coming soon... e-Notices
Spend a day with Geoff Johnson and understand what a partner Lender*VP can be
Query your Household Database and link family needs with your opportunities
Plan in 2009 to build an Intranet with Passageways and CU*Answers
MNMGMA #1-23 (my current favorite: #17 Open/Active/Closed Mbrs)
Take a long look at the e-commerce fee and figure out what it means to you
Use Talking Points for every marketing and cross sales tip included in CU*BASE
http://www.cuanswers.com/client_release_summaries.php
Review last year’s Top Ten and see what you put into action (be tough on yourself!)
158
Debating with Randy...will it be Dr. Jekyll or Mr. Hyde?
It’s tough to own a company...sometimes you just want Dr. Jekyll’s smooth bedside manner, but when you own a company you want the
inside scoop and sometimes you get Mr. Hyde’s explanation
159
Idea FormsA Conversation Between Users and Developers
I never would have guessed how hard it is to compose 50 words about an idea
160
Blogging with cuasterisk.comA Conversation Amongst Peers
Keeping up with the conversations...a simple click checks on which conversations are active and need your attention
news.cuanswers.com
161
Multi-media EducationRemoving Roadblocks to Participation
In 2009, CU*Answers will introduce a new website that allows users to view archived videos and presentations to catch up on what they might have missed in person
The next time you need to tell someone about a web conference, it’ll only be a click away
162
Recognizing Your Participation in Education
Top 5 Web Conference Attendees(June 07 – May 08) 1. Ohio Catholic 2. Affinity Group 3. Alpena Alcona Area 4. Detroit Municipal 5. Aeroquip
Top 5 Online Learning Users(June 07 – May 08) 1. Detroit Municipal 2. United Educational 3. Glacier Hills 4. New Horizons 5. Iosco
Top 5 AnswerBook Users(June 07 – May 08) 1. Northern Hills FCU 2. Fox Communities 3. Ohio Catholic FCU 4. Community CU 5. Affinity Group CU and
Wauna FCU (tied)
These credit unions will be receiving a certificate for 10 free hours of Webex web
conferences from CU*Answers to use whenever they wish in 2009 (a $400 value)
163
Pass It On
The Leadership Conference is more than just a day
So to extend the experience to others (and save a tree or two, while we’re at it), all materials related to this week’s events will be posted on this new web page
In the coming weeks, you’ll also start seeing a series of follow-up emails to remind your staff of the key announcements you heard today
http://cuanswers.com/lc2k8/
164
Lights, Camera, Action!
It takes an army to bring a movie to the
theater, and while it takes a few less
people to bring today’s presentation to all
of you, they work like an army
Thanks to the staff that
helped pull off this week!