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...
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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.
[email protected] | 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 .