The Credit Union Development

Education Program

Mark MeyerChief Executive Officer

Filene Research Institute

George HofheimerChief Research Officer

Filene Research Institute

ideas grow here

PO Box 2998

Madison, WI 53701-2998

Phone (608) 231-8550

www.filene.org PUBLICATION #247 (7/11)

Research Brief

Deeply embedded in the credit union tradition is an ongoing search

for better ways to understand and serve credit union members. Open

inquiry, the free flow of ideas, and debate are essential parts of the

true democratic process.

The Filene Research Institute is a 501(c)(3) not-for-profit research

organization dedicated to scientific and thoughtful analysis about

issues affecting the future of consumer finance. Through indepen-

dent research and innovation programs, the Institute examines issues

vital to the future of credit unions.

Ideas grow through thoughtful and scientific analysis of top-priority

consumer, public policy, and credit union competitive issues.

Researchers are given considerable latitude in their exploration and

studies of these high-priority issues.

Traditionally, the Filene Research Institute focuses on long-term

research questions that can take months or years to research and pub-

lish. Occasionally Filene also publishes Research or Innovation briefs.

These briefs allow Filene to present important, time-sensitive, notori-

ous, and unbiased topics to the credit union system. Oftentimes

these briefs present an opportunity to distribute original research or

innovation findings from Filene researchers or Fellows. We hope the

“brief ” format meets your need to obtain actionable and objective

information in a timely manner.

About Us

Copyright © 2011 by Filene Research Institute. All rights reserved.Printed in U.S.A.

iii

We would like to thank all Development Education facilitators for

making this essential program available to the worldwide credit

union system. Special thanks go to Vicky Franchino for her incred-

ible writing skills. We would also like to thank the National Credit

Union Foundation, the primary sponsor of the Credit Union

Development Education program, and other program supporters,

including state credit union foundations and leagues, CUNA Mutual

Group, the Credit Union National Association, and the World

Council of Credit Unions.

Acknowledgments

iv

By Mark Meyer

Chief Executive Officer

and George Hofheimer

Chief Research Officer

There is never a good time to go back to school. As we get older,

obligations pile up like enormous tick marks on an unending to-do

list: pick up the kids from soccer practice, organize the swim club

fundraiser, prepare for the community foundation’s board meeting

next Tuesday, train for the upcoming 10K run, and mow that blasted

lawn. But even before we can tackle our unending checklist, we must

work at our day jobs, which have become more complex and intense

as a result of the current economic climate. Finally, our number one

priority is to nurture the priceless family and friend relationships that

form the basis of who we are.

This lifestyle makes it exceedingly difficult to pause and lift our

heads up from the noise. It is so easy to pass off personal develop-

ment opportunities because we are “too busy.” And then there’s the

old standby, “I just don’t have time.”

In April 2011, we took the unique opportunity to hit the pause

button and immerse ourselves in a training program to understand

and apply the philosophical underpinnings of the credit union idea.

The Credit Union Development Education Program, or DE, is an

intensive weeklong program that immerses students in concepts

related to credit union history, cooperative principles, and economic

development theories. DE helps attendees apply these unique con-

cepts in the context of their organization. More than 1,000 profes-

sionals from over 30 countries have graduated from this 29-year-old

program.

DE uses a combination of classroom sessions and clever hands-on

activities to impart this knowledge. In DE’s capstone activity, small

groups are assembled to solve a realistic (but fictional) case study

during the final 18 hours of the program. This special report outlines

the foundation of the DE program and presents the groups’ case-

study findings.

We decided to issue this special report for three reasons. First, we

feel DE is a unique and important program for the future of credit

unions, as it teaches the fundamental differentiators between credit

unions and other consumer financial providers. If more profession-

als apply these concepts in their organizations, credit unions could

be poised for a renaissance. Second, the DE class of 20111 presents

novel ideas about some very realistic issues in the credit union sys-

tem. While the case studies are fictional, they do represent scenarios

your organization may be facing today. Finally, every DE participant

must complete a postclass project. For our project, we thought we

would stick to our knitting and do what we do best: write, analyze,

and publish our findings for the credit union system.

Executive Summary and Commentary

v

While we were in DE, our to-do lists got bigger, our work obliga-

tions continued to pile up, and our families were not very happy

with our one-week hiatus. Still, this type of development activity is

just the tonic for leaders interested in the future of the credit union

system.

vi

Mark Meyer

As CEO of the Filene Research Institute, Mark Meyer inspires

people to understand the opportunities for cooperative finance to

transform communities and lives. His combination of passion and

critical thinking show through in his research on innovation, con-

sumer behavior, and the financial needs of young adults.

An internationally recognized credit union expert, Mark has lectured

to audiences across North America, Asia, and Europe. His research

and opinions appear in dozens of national publications, including

the Wall Street Journal. He has contributed to National Public Radio

and has advised the US Department of the Treasury.

Necessity is the mother of invention, which means, of course, that

Mark is also an attorney. Formerly of the firm of Montgomery,

Little & McGrew, he is licensed to practice law in Colorado and

Arizona. He has also held executive posts with Arizona State Credit

Union and the CUNA Mutual Group. Today he serves as secretary

of the board of directors for Summit Credit Union, the largest credit

union in Wisconsin.

George Hofheimer

George Hofheimer believes that the cooperative self-help model can

(and should) be more efficient, effective, proactive, and innovative. As

the chief research officer at the Filene Research Institute, George works

hand-in-hand with the world’s academic community to prove it.

Managing an extensive pipeline of economic, behavioral, and policy

research related to consumer finance, George is responsible for arm-

ing credit unions with the straightforward, unbiased information

they need to compete on their members’ behalf. Prior to joining

Filene in 2005, George spent eight years leading the executive educa-

tion, research, and product- development functions of the Credit

Union Executives Society (CUES).

Before his career in consumer finance, George worked for five years

in the former Soviet republic of Uzbekistan, first as a Peace Corps

volunteer and later with a variety of public and private employers.

George earned an MBA from the University of Wisconsin–Madison

and serves as the president of the board of directors at Willy Street

Co-op, a $30 million natural foods cooperative.

About the Authors

1

An Introduction to Credit Union Development EducationMany of us associate the idea of development with the concept of

“emerging”—whether countries, credit unions, or regulatory bodies.

But the leaders of the Credit Union Development Education (DE)

Program have a challenge: Think closer to home, too.

“Development really means finding better ways to serve your con-

stituents,” says Michael Ray, one of the 2011 program facilitators

and director of corporate development and relations for Congres-

sional Federal Credit Union, which serves members of Congress

and employees of the US House of Representatives. “This can have

an international flavor—we’re all excited about the idea of bringing

credit union ideals like democracy and service to places like Russia,

Zambia, and Central and South America—but it applies to our own

country too.”

Lois Kitsch, national program manager of the REAL Solutions

program at the National Credit Union Foundation (NCUF), agrees.

“Development definitely has a domestic element. To me it means

understanding who your members are, and providing products and

services that enhance their lives and move them on a path to self-

sufficiency and asset accumulation.”

Adds Ray, “And this isn’t just about low- income members. People at

all income levels struggle with issues like financial literacy and access

to affordable credit—there are people with six- figure incomes going

to payday lenders.”

Over the last three decades, DE has worked to help those connected

with the credit union system understand the importance of develop-

ment both in their own communities and around the world. One

of its most important tools is the weeklong Development Education

Training.

“People who see the results from these workshops want to know

what’s in ‘the secret sauce,’” says Kitsch. “The participants come out

of them with a renewed sense of commitment to the credit union

philosophy. They’re reinvigorated and impassioned by what they

learn and they take that back to their organizations.”

Adds Ray, “This experience exposes people to issues that they might

not deal with on a daily basis, but that are important for them to

know and think about. They come out of this with a passion to go

home and find better ways to serve their credit unions and their

communities.”

TWELVE CORE DEVELOPMENT ISSUES IN CONSUMER FINANCE

Development encompasses 12 critical

issues that apply to people of every coun-

try and economic situation.

• Access to credit—This can range

from situations where there is no

available financial institution to those

where collapsing home values and high

unemployment limit access to afford-

able credit.

• Appropriate technology—The “latest

and greatest” technology isn’t always

the best fit. Appropriate technology

considers the needs of those being

served and the infrastructure to support

the proposed solution.

• Democratic institutions and prin-

ciples—This requires not merely the

existence of democracy but the inte-

gration of it into all aspects of everyday

life, along with the notion that a legal

system is in place and is followed. Chal-

lenges like illiteracy, limited access to

information, societal stratification, and

problems caused by rivalries or tradi-

tion can all affect whether a democracy

actually exists.

• Education—High illiteracy rates and

limited access to affordable education

are hallmarks of the developing world,

but the industrial world isn’t immune.

Consider the growing educational

gaps in countries with ready access to

education.

• Employment—Both developed and

emerging countries face critical con-

cerns about a lack of employment

opportunities and the availability of

training and education to prepare

today’s workers for job opportunities in

the future.

• Environment—After years of passively

tolerating threats to the environment

caused by practices like deforestation

and the use of fossil fuels, there’s a

growing global awareness of the long-

term costs of these actions.

• Hunger—With 25% of all children in

the United States going to bed hungry

each night, hunger is certainly not just a

concern of the developing world.

• Health—Over 2.6 billion people do not

have access to basic sanitation, and

over 1 billion face the daily reality of

unsafe drinking water. Closer to home,

more than 50 million Americans are

without health insurance.

• Housing—Inadequate or nonexistent

housing has reached crisis proportions

globally; in the United States, an esti-

mated 4.5 million people are homeless.

• Income generation—People around

the world need effective ways to not

only provide for the basic necessi-

ties—which is already a struggle for

many—but also create opportunities to

accumulate wealth.

• Savings mobilization—Voluntary sav-

ings are critical to sustained economic

security and development in both sub-

sistent economies and wealthier ones.

• Women in development—Women

are the glue that holds together families

and economies, but their efforts are

not always sufficiently valued, whether

because of barriers in customs or tradi-

tions, limited access to education, or

economic systems that more effectively

reward male workers.

2

Figure 1: The DE Class of 2011

The 2011 graduating class included credit union movement representatives from across the United States and two from Ghana

participating through the African DE Scholars Program. They are: LaTonya Allen, Government Printing Office FCU (Wash-

ington, DC); Taylor Carstens, People’s Trust FCU (Texas); Angela Cayot, Southwest Bridge Corporate FCU (Oregon); Cathy

Cline, Southeastern Ohio CU, Inc. (Ohio); Chantea’ Coger, Winston-Salem Firemens CU (North Carolina); Patricia Coleman,

Keesler FCU (Mississippi); Dianah Darkwah, Ghana Co-Operative Credit Union Association Ltd. (Ghana); Meghann Dawson,

Credit Union National Association (Wisconsin); Betty DeWeese, Telco Plus CU (Texas); Ryan Dold, Missouri Credit Union

Association (Missouri); Holly Fearing, CUNA Mutual Group (Wisconsin); Sandra Gladney, American Airlines FCU (Texas);

Cassandra Grayson, League of Southeastern Credit Unions (Florida); Brianne Gutoski, Credit Union National Association

(Wisconsin); Jennifer Hamrick, State ECU (North Carolina); George Hofheimer, Filene Research Institute (Wisconsin); Heidi

Knudson, Altana FCU (Montana); Patrick Livingston, Coastal FCU (North Carolina); Tim Loveless, Missouri Credit Union

Association (Missouri); Lee Mabry, State ECU (North Carolina); Jeremy Martin, Navigator CU (Mississippi); Kelli Martin,

Chesterfield FCU (Virginia); Brandon McAdams, Coastal FCU (North Carolina); Amy McLard, Missouri Credit Union

Association (Missouri); Mark Meyer, Filene Research Institute (Wisconsin); Tara Neiswonger, Education First CU (Ohio);

Zach Poole, Singing River FCU (Mississippi); Tish Pruitt, American Airlines FCU (Texas); Alana Robertson, Mississippi Telco

FCU (Mississippi); Olivia Ruiz, New Mexico Educators FCU (New Mexico); Adam Schwartz, National Cooperative Business

Association (Washington, DC); Sarah Dale Simpkins, Mississippi Credit Union Association (Mississippi); Barb Stanek, Mis-

souri Credit Union Association (Missouri); Troy Stang, Northwest Credit Union Association (Oregon); Lynn Storum, National

Credit Union Administration (Virginia); Beth Troost, Michigan Credit Union League (Michigan); Vivian Valencia, Verity CU

(Washington); Darren Westendorf, CUNA Mutual Group (Iowa); Michelle Williams, MECU of Baltimore (Maryland); Daniel

Winters, Co-Operative CU (Wisconsin); Molly Wright, Guadalupe CU (New Mexico); and Willie Yao Ahli, Ghana Co-Opera-

tive Credit Union Association Ltd. (Ghana).

3

4

Tara Neiswonger, CFO at Education First Credit Union in Colum-

bus, Ohio, agrees. “We did a poverty simulation that really opened

my eyes—both to the stress members feel every day trying to live

within their income and the reality that access is a critical problem.

We can’t just assume that members have a computer or can get to our

branches on a 9–5 schedule.”

“One of the exciting things about the session is how it brings

together both people who are new to credit unions and those who

have been in the industry for decades,” says Kitsch. “There aren’t a

lot of other experiences that offer this opportunity.”

“When you’re assigned to a group, you only know your team mem-

bers’ organizational affiliation, not their title,” says George Hof-

heimer, chief research officer at Filene Research Institute. “You don’t

know until the end who’s just joined the industry and who’s a CEO.”

During the week, participants are divided into groups and cover

topics that range from general credit union history and principles to

specific development issues. The session wraps up with an intense

case study. Each case study deals with an imaginary challenge, but

the issues the groups deal with are similar to those being faced in the

industry. Each group is given roughly 18 hours to tackle a specific

development challenge. In that time they must research their topic,

come up with a proposal that utilizes the development information

they’ve gleaned throughout the week, and—if they’re lucky—get a

little shut-eye before the final presentations the following day.

Here are the opportunities and solutions proposed by the par-

ticipants of the Spring 2011 session of Development Education

Training.

5

Case Study #1: Credit Unions and Rebuilding Iraq

Group Members

Taylor Carstens, People’s Trust Federal Credit Union

Cassandra J. Grayson, League of Southeastern Credit Unions

Brianne Gutoski, Credit Union National Association

Kelli Martin, Chesterfield Federal Credit Union

Mark Meyer, Filene Research Institute

Sara Dale Simpkins, Mississippi Credit Union Association

Michelle Williams, MECU of Baltimore, Inc.

The OpportunityAfter eight years of war—and decades of dictatorship—the country

of Iraq is struggling to stabilize its economy and looking for ways to

help its citizens create a self- reliant, functioning financial system.

Any attempts to address these issues must overcome myriad chal-

lenges, including:

• Ongoing security issues—Even “safe” areas face frequent threats.

• Trust—Iraqis are more likely to trust their clans and their tribes

than they are government officials or outsiders.

• Tribalism—There are strong divides among the three tribes

(Kurds, Shiites, and Sunnis), and citizens define themselves first

as a member of a tribe rather than as an Iraqi citizen.

• Corruption—Iraqis have little history with transparency and regu-

lation. Corruption is viewed as a given in business transactions.

• Illiteracy—With literacy rates at just 58%, any promotion efforts

must integrate word-of-mouth communication, not just printed

materials.

• Islamic financial regulations—Regulations and policies must com-

ply with Islamic principles regarding interest, the sources and uses

of funds, and restrictions on speculation.

The SolutionThe country of Iraq has two critical strengths: its people and its oil

resources. Years of dictatorship, war, and hardship have proved the

resilience of the Iraqi people, and vast oil resources provide a founda-

tion for financial and economic security.

But the ability to leverage these strengths is hampered by the obsta-

cles discussed earlier, as well as the lack of a middle class and limited

exposure to democracy. Without these crucial elements in place, Iraq

6

will remain a divided country, controlled by the powerful and the

rich.

With these issues in mind, the group recommended creating an

Islamic Investment Financial Cooperative to serve Iraqi oil workers

and their families, as well as related select employee groups (SEGs)

in Kurdistan. To help ensure the venture’s success, it will be launched

with the blessing and support of local mullahs and will follow the

tenets of Islamic lending.

The group chose this geographic location because Kurdistan is

widely viewed as one of the safest regions in Iraq. Tying the coopera-

tive to the oil company and its employees helps ensure the success

of the venture. This population has a reliable salary, which will be

key to creating a self- sustaining financial institution, and linking the

cooperative to an international oil company will help ensure a level

of regulation and transparency.

This cooperative financial enterprise is a powerful tool that will do

many things, as discussed in the following sections.

Build a Middle Class

Financial products and services and community programs will help

create a functioning middle class and eliminate the potential for

unrest and strife caused by a two-class economy.

Products and services could include direct deposit, which would help

ensure income security; savings to allow members to accumulate

wealth for investments and emergencies; and small dollar loans to

assist families who fall on financial hard times.

Community programs covering topics such as literacy, education,

and sanitation could be used to help ensure a better quality of life for

all citizens.

Put Democracy into Action

One member, one vote. This simple credit union practice turns the

idea of democracy into a practical reality. Members will see firsthand

that their participation in deciding the future of their cooperative

isn’t based on their income or their savings but simply on their mem-

bership. And that membership gives a voice to those who might not

otherwise have one: women, youth, and minorities.

Be Self-Sustaining

Choosing a member population with a stable income (oil company

employees) will help drive initial program success. And the success

of this cooperative will, in turn, help promote the creation of more

cooperatives across the region and, eventually, the country. To help

A GROUP MEMBER’S PERSPECTIVE

“The biggest challenge here was trying

to get a handle on what you don’t know

about setting up a financial organization

in another country—especially one that is

so different than the US in terms of secu-

rity issues, regulatory guidelines, political

aspects, and the treatment of women.

Going through this exercise was certainly

an eye- opener. It helped me gain a new

perspective on how credit unions can be

a catalyst for change even in a situation

that’s very different than what I’m accus-

tomed to.”

—Cassandra J. Grayson, League of

Southeastern Credit Unions

(Tallahassee, Florida)

7

ensure the long-term sustainability of the program, a tribal federation

will be created to ensure that Islamic lending criteria are met.

Leverage Existing Programs

The Community Action Program (CAP) was created to promote the

participation of women, youth, and minority groups in the areas of

community mobilization, social and economic infrastructure devel-

opment, employment and income generation, and environmental

protection and management. CAP has received United States Agency

for International Development (USAID) assistance in the past and

can use these funds to help support the efforts of the financial coop-

erative, which shares its goals.

Measuring Program SuccessThe cooperative has established the following plans as its five-year

targets.

Financial Plan

• 10,000 members.

• $16.5 million (M) in deposits.

• $8.25M in loans.

• Delinquency rate of 2.5%.

Structural Plan

Create a tribal federation to work with the tribes and implement suc-

cessful programs across a broader field of membership.

8

Case Study #2: A Million New Voices

Group Members

Cathy Cline, Southeastern Ohio Credit Union, Inc.

Sandra Gladney, American Airlines Federal Credit Union

Tim Loveless, Missouri Credit Union Association

Brandon McAdams, Coastal Federal Credit Union

Alana Robertson, Mississippi Telco Federal Credit Union

Beth Troost, Michigan Credit Union League

Darren Westendorf, CUNA Mutual Group

The OpportunityThe United Nations has declared 2012 “The Year of the Coopera-

tive.” In response, the International Cooperative Association has

reached out to all national cooperative organizations in the United

States to spearhead programs and events that will promote the coop-

erative business model.

The World Council of Credit Unions, recognizing the beneficial

role that DE can play in these efforts, has challenged the group to

develop programs that foster understanding and enthusiasm for the

cooperative model across industries, and promote the credibility and

sustainability of the DE program.

DE facilitators face a twofold challenge: (1) most credit unions don’t

actively position themselves as cooperatives—and seldom work in

conjunction with other cooperatives, and (2) most credit unions are

reluctant to invest time and energy into a program unless it delivers

real value to the credit union and to members and includes a finan-

cial payback.

Critical FactorsRather than develop a program with a one-year lifespan, this group

of DE leaders decided to take on a loftier goal: a million new voices

by 2017.

A challenge? Certainly. But in light of a number of key factors, the

group felt the goal was achievable.

Credit Union Growth

While the US population increased roughly 13% in the last 10 years,

credit union membership jumped by 45%.2 The general population

“gets” the value of credit unions.

9

Collaborative Nature of Cooperatives

By definition, cooperatives understand the value of working together

to create change. If the DE participants can come up with a program

that provides financial incentives across cooperative groups, they

have a good shot at effective implementation.

The Power of Many

An impressive level of financial power can be created by harnessing

relatively small contributions from a large constituency—something

politicians have long understood. To promote and strengthen the

cooperative spirit, the group recommended asking each credit union

league to contribute $5,000. This would create a program pool of

$500,000 that would be used to support a multimedia campaign.

The SolutionTo help gain a million new voices, the core DE group proposed a

rewards card backed by a multimedia marketing program with the

theme “Cooperatives Cooperating Makes Cents!”

The cents/sense in question? Both the cooperative difference and the

financial benefits of the rewards card. A two-pronged campaign will

reach out to consumers through both traditional and social media,

and to credit union employees with educational tools designed to

share program best practices and increase awareness of the value of

cooperatives in general and credit unions specifically.

The rewards card would differ from other credit card offerings in the

following ways:

• “Pay down your rate” feature—The card starts out at the national

average advertised rate of roughly 16%,3 and members who

make 12 on-time payments can earn up to a .25% discount on

their rate annually. This feature gives the member an additional

incentive for on-time payments and creates loyalty with the credit

union. The suggested rate range of 12%–16% is higher than that

for low-risk members but recognizes that those who don’t pay off

their credit card each month present the credit union with addi-

tional risk. For credit unions to see this as a viable program, that

risk must be offset with higher interest rates.

• 1% cash rewards—This payback will be split among all players in

the card program, including the member, the credit union, the

cooperative foundation, state leagues, and the NCUF. This shared

reward gives each stakeholder a reason to promote and support

the program. Plus, frequent users who reach certain volume

benchmarks will receive additional cash back.

A GROUP MEMBER’S PERSPECTIVE

“This was a very challenging assignment.

There were so many possible angles to

pursue and we knew that it wouldn’t be

enough just to tell people that credit unions

are cooperatives. First of all, most people

don’t perceive credit unions as coopera-

tives—everyone from the typical consumer

to members to credit union staff—and,

second, we had to give all stakeholders a

reason to engage in the efforts to push the

cooperative movement forward.

“I think the design of the group and the

project timeline were very beneficial. The

group was intentionally diverse, which led

to a set of opinions as varied as the group

itself and was reflective of the diversity

of the credit union system. And having

to do this project in a limited amount of

time challenged you to be innovative and

focused.”

—Brandon McAdams, Coastal Federal

Credit Union (Raleigh, North Carolina)

10

Determining Program SuccessCard programs with similar features have a history of being self-

sustaining and generating additional income.

• Coastal Federal Credit Union—Its rewards program costs roughly

$30 per card, per year. This is a minimal cost for the credit union,

but with substantial adoption, this would be a good source of

income for NCUF, state leagues, and the Cooperative Founda-

tion. If 100,000 cards were used, and those three partners got half

of the $30, this would produce $1.5M in income.

• SchoolsFirst Federal Credit Union—Members with a similar credit

card had an average of 1.84 more products than other members,

and the majority said they were likely to consider the credit union

for additional loans and willing to remain current on their loan to

receive the interest rate benefit (84% and 91%, respectively).4

11

Case Study #3: Building the Financial Capability of America

Group Members

Chantea’ Coger, Winston-Salem Firemens Credit Union

Holly Fearing, CUNA Mutual Group

George Hofheimer, Filene Research Institute

Tara Neiswonger, Education First Credit Union, Inc.

Zach Poole, Singing River Federal Credit Union

Lynn Storum, National Credit Union Administration

Willie YaoAhil, Ghana Co-Operative Credit Union

Association Ltd.

The OpportunityThe President’s Council on Financial Capability is responsible for

advising the president on how to promote and enhance financial lit-

eracy and capability among citizens. These efforts are critical because

they help increase national competitiveness and financial stability.

Unfortunately, statistics show that the council has a big job ahead:

• 66% of the population use alternative financial services (i.e.,

other than bank/credit union).5

• 24% of the population have used one or more nonbank borrow-

ing methods in the last five years.6

• 12% of the US population (roughly 30 million households) are

un- or underbanked.7

• $8.5 billion in fees is collected each year8 by nonbank institutions

such as payday lenders. Typical users of these services are low- to

moderate- income households.

And it looks like these statistics are likely to be even more dishearten-

ing for the next generation. According to a recent financial capabili-

ties study, 22% of young Americans are likely to be less financially

capable than older adults and more likely to engage in nonbank

borrowing.9

What’s responsible for these discouraging statistics? This DE group

believes that, in large part, the numbers are linked to the failure of

traditional financial education tools and methods. Financial institu-

tions have tried everything from coercion to excitement to change

behavior, but as the numbers prove, they haven’t been successful.

And delivering more of the same is unlikely to garner improved

results.

12

Key FindingsInstead of falling back on the well- meaning but largely ineffective

educational tools used in the past, the group took a stab at analyzing

how young consumers’ choices are influenced on a day-to-day basis.

The group chose the young adult market because it felt this segment

held the most promise for (financial) behavioral change, since young

adults have little experience with (and entrenched attitudes about)

money. Additionally, this segment is larger than the baby boomer

cohort and about to enter their prime financial-decision- making

years.

They discovered that young consumers:

• Love reality shows—A recent Oregon State University study

showed that 18- to 29-year-olds are the most avid viewers of real-

ity TV shows, with 68% saying they like or love the genre.

• Spend a lot of time playing video games—According to the Enter-

tainment Software Association, 76% of US households play video

games.

• Prefer simplicity—Increasing evidence shows that offering fewer

choices to consumers has the paradoxical effect of increasing their

adoption and satisfaction. Firms that create products around con-

sumers’ existing behaviors—rather than trying to change them—

tend to have more commercial success.

• Buy into branding—While this generation might say they eschew

branding, some of the most successful youth- oriented organi-

zations—think the Obama 2008 campaign and Apple—have

strong, persuasive branding campaigns.

• Respond to messages targeted directly to them—Companies that

target specific market segments based on demographics, psycho-

graphics, or behavioral attributes tend to be more successful than

those who attempt to be all things to all people.

The SolutionWith this knowledge in hand, the group recommended taking a new

approach to financial capabilities that integrates three components,

discussed in the following sections.

A Youth-Oriented Marketing Campaign

Instead of building a marketing campaign that uses more traditional

media (direct mail, TV, and radio advertising), this campaign would

use channels that are more popular with young adults, namely, reality

shows, video/virtual games, and “chances to win” opportunities.

13

The campaign would promote a brand that emphasizes a coordinated

message and symbolizes the characteristics deemed important to the

younger generation: fun, simple, relatable, and convenient.

The campaign would include a tiered financial products program

(see below) designed to transition young adults away from the expen-

sive, nonbank products they are currently using.

Licensing Tiered Financial Programs

Recognizing that it will take time to change young adult behavior,

this program includes three tiers designed to help users transition

from the programs/services they’re currently using to choices that

truly deliver better financial results. This licensed program would be

created by credit unions but could be offered by banks and alterna-

tive financial service (AFS) providers.

Tier 1—Transition

At this tier, the consumer will have access to the financial tools he

or she is currently using—such as prepaid debit cards and payday

products—but will be able to get them at more affordable rates. For

instance, the “Stretch Pay” program at Credit Union Outreach Solu-

tions, Inc. in Ohio offers a $500 salary advance that saves members

up to $400 in fees each year.

Implementation of this stage requires changes in regulation that will

restrict payday lending companies’ ability to charge usurious rates

and to receive deposits on hand.

Tier 2—Upgrade

Once the user has established a track record—and a history of good

financial behavior—the service upgrades can be implemented. This

could mean eliminating fees, allowing access to more services, etc.

Tier 3—Upgrade Plus

After a set period of time (determined by the financial institu-

tion), the user will be evaluated again. If the user continues to meet

standards for good financial behavior, he or she could be rewarded

with anything from fewer fees to the addition of new services—say, a

checking account with overdraft protection.

A GROUP MEMBER’S PERSPECTIVE

“This project did an exceptional job of mim-

icking the challenges of the real world on

a couple of levels. First of all, by showing

that you can’t make decisions in a vacuum.

Sometimes solutions are hatched in the

executive suite, but the reality is that you

have to get a host of people at different

levels to buy into your solution. Having

people in our group who were new to the

industry, plus those who had been in it for

years, gave us the opportunity to create

solutions that resonated with all of those

groups.

“It was also interesting to see how each

person attacked the problem in a different

way. I tended to want to collect data and

draw conclusions from that, while others

were more holistic or had a community-

focused perspective. Having a short time

frame forced us to be agile, and I think that

we actually came up with superior results—

if we’d taken six months to address this

challenge, I think our results would have

been pretty middling.”

—George Hofheimer, Filene Research

Institute (Madison, Wisconsin)

14

Regulatory Implementation

This licensed, tiered program can be successful only if regulatory

changes are implemented that level the playing fields of banks, credit

unions, and AFS providers.

These regulations would create both new product offerings and the

possibility of additional benefits:

• Bank deposits to qualifying credit unions would count toward

Community Reinvestment Act credits.

• Credit unions would be more socially responsible and, poten-

tially, grow their membership.

• AFS providers that opt to offer the licensed program—within

new strictly defined regulations—may be able to enter the market

as mainstream financial service providers. Those who do not will

be forced to offer their traditional, more limited products and

services in a highly regulated environment.

15

Case Study #4: Interchange Income

Group Members

Angela Cayot, Southwest Bridge Corporate Federal Credit Union

Ryan Dold, Missouri Credit Union Association

Heidi Knudson, Altana Federal Credit Union

Lee Mabry, State Employees’ Credit Union

Tish Pruitt, American Airlines Federal Credit Union

Vivian Valencia, Verity Credit Union

Molly Wright, Guadalupe Credit Union

The OpportunityThe Durbin Amendment, part of the Dodd-Frank Wall Street

Reform and Consumer Protection Act, is designed to regulate the

type and scope of fees that Visa, MasterCard, and other companies

can charge businesses for debit card transactions. Today the aver-

age per-swipe fee is 44 cents per transaction; under the bill it will be

capped at 12 cents.

As things currently stand, the fictional $600M asset credit union in

this case study has netted, on average, $125,000 a month in inter-

change transaction fees—over $1.5M annually, or 30% of its net

income. If the Durbin rule is enforced as it currently stands, the

credit union would lose up to 70% of its interchange income.

Key Considerations and DataThe board is very concerned about the loss of income but also vehe-

mently opposed to subjecting members to additional fees—histori-

cally only NSF (not sufficient funds) fees have been assessed against

member accounts. The credit union’s loan rates are competitive or

slightly higher than those at credit unions of

similar asset size.

The SolutionAlthough no credit union can face a $1.5M

drop in income without some level of con-

cern, the fact that the credit union is well

capitalized, with net worth in excess of 14%,

means that it does not need to take any dras-

tic steps at present.

With its current loan growth levels, combined

with an anticipated drop in National Credit

Union Administration (NCUA) assess-

ments and ever- diligent expense monitoring,

the credit union should be able to make it

Figure 2: Credit Union Data

Total number of members 52,000

Annual membership growth 1.2%

Members with checking accounts 28,000 (54% penetration vs.

peer average of 43%)

Members with active debit cards 18,666

Net worth position 14.63%

Average loan to share ratio 83.35%

Delinquency rate 1.3%

Expense ratio 2.83%

Annual loan growth 4%

Average yield on loans 6.13%

Dollar value of new loans required to

replace interchange income

$16.3M

16

through this challenging transition without any major changes to its

policies or fees.

Position the Credit Union against Banks

Given that the competition (for- profit banks) will likely be forced to

bump up fees to make up lost income and, possibly, even turn away

less profitable customers, the credit union may be in a good position

to gain new members. Research from the Missouri Credit Union

Association suggests that a significant number of nonmembers were

satisfied with their financial institutions until they understood the

real differences between them and credit unions—then their inter-

est in joining a credit union doubled. As banks scramble to make up

lost income at the expense of their customers, credit unions are in an

ideal position to differentiate themselves from banks.

Aggressively Market Checking Accounts

The credit union already enjoys a higher-than- average penetration

with its checking account program and will make a push to generate

service use in both existing and new members.

Investigate New Payment Options

It’s also a good time for the credit union to research new payment

systems. Although institutions with less than $10 billion in assets

may not immediately be affected by the fee changes, overall this bill

is likely to move the industry toward new payment systems, includ-

ing less regulated mobile options. It’s critical for the credit union to

get ahead of the curve on understanding and implementing these

tools.

Recapture Loans and Credit Cards

Credit bureau data will help the credit union identify opportuni-

ties to recapture loans. Given that the credit union’s loan rates

sometimes exceed peer averages, it might be necessary to cut some

rates—especially in secured lending—in an effort to recapture loans

in the marketplace. This is also the time to aggressively encourage

members to switch from higher- rate credit cards to the more afford-

able options offered by the credit union. These transactions generate

higher interchange income than debit cards, so it’s desirable to bring

members’ existing card activity to the credit union—without, of

course, promoting unnecessary or irresponsible credit card use.

An Alternative SolutionAlthough the credit union is in an enviable position in regard to its

capitalization levels, it has laid out strategies to implement if it were

only adequately to marginally capitalized.

A GROUP MEMBER’S PERSPECTIVE

“There were two things that I especially

liked about the case study experience.

First was that your group was given a

challenge that forced you to ‘stretch.’ For

instance, in my role at the credit union I’m

typically involved with things that pertain

to the credit union philosophy more than

the financial nuts and bolts. Working on

this assignment challenged me to move

outside of my comfort zone.

“I also like the fact that the group was

made up of people from a variety of back-

grounds and that you didn’t know what

role each person played out in the ‘real

world.’ There was a sense that no mat-

ter what your job was or your experience

level—if you had just started in the industry

or you were a credit union CEO—that your

voice mattered equally.”

—Heidi Knudson, Altana Federal

Credit Union (Billings, Montana)

17

Gain a Low-Income Designation

To be eligible for a low- income designation, more than half of the

credit union’s membership must be students or earn 80% or less of

the median family income for its area. The credit union would meet

the requirements for this, and one of the benefits afforded credit unions

in this category is the opportunity to receive supplemental capital.

Create Third-Party Partnerships

Member demographics and surveys indicate a need for services not

currently provided by the credit union that would create opportuni-

ties for additional income. Rather than make the needed investments

in staff and expertise, the credit union could partner with outside

vendors. This would allow the credit union to meet member needs

and also provide opportunities for income growth.

Investigate Shared Branching

Because the credit union is located in a highly populated urban area,

it might consider joining the shared branching network. This would

allow the credit union to provide better service to its members, who

could use more conveniently located branches, and would be an

income source when other credit unions’ members perform transac-

tions at the credit union.

The credit union recognizes that a changing economic climate might

necessitate revisiting these options in the future. But key to its long-

term success is its continued commitment to credit union principles.

As one member of the group said, “We need to have the courage

to stand by the operating principles that our credit union was built

upon and be proud of those principles. . . . As a movement we need

to embrace what makes us different and why we were created.”

THE SEVEN COOPERATIVE PRINCIPLES

DE also explores the world of cooperatives

and the seven principles or guidelines by

which cooperatives practice their values.

1ST PRINCIPLE: VOLUNTARY AND OPEN

MEMBERSHIP

Co-operatives are voluntary organisations,

open to all persons able to use their ser-

vices and willing to accept the responsibili-

ties of membership, without gender, social,

racial, political or religious discrimination.

2N D PRINCIPLE: DEMOCRATIC MEMBER

CONTROL

Co-operatives are democratic organisa-

tions controlled by their members, who

actively participate in setting their policies

and making decisions. Men and women

serving as elected representatives are

accountable to the membership. In primary

co-operatives members have equal vot-

ing rights (one member, one vote) and

co-operatives at other levels are also

organised in a democratic manner.

3R D PRINCIPLE: MEMBER ECONOMIC

PARTICIPATION

Members contribute equitably to, and

democratically control, the capital of their

co-operative. At least part of that capi-

tal is usually the common property of the

co-operative. Members usually receive

limited compensation, if any, on capital

subscribed as a condition of member-

ship. Members allocate surpluses for any

or all of the following purposes: develop-

ing their co-operative, possibly by set-

ting up reserves, part of which at least

would be indivisible; benefiting members

in proportion to their transactions with the

co-operative; and supporting other activi-

ties approved by the membership.

4T H PRINCIPLE: AUTONOMY AND

INDEPENDENCE

Co-operatives are autonomous, self-help

organisations controlled by their members.

If they enter into agreements with other

organisations, including governments, or

raise capital from external sources, they do

so on terms that ensure democratic con-

trol by their members and maintain their

co-operative autonomy.

5TH PRINCIPLE: EDUCATION, TRAINING

AND INFORMATION

Co-operatives provide education and train-

ing for their members, elected representa-

tives, managers, and employees so they

can contribute effectively to the develop-

ment of their co-operatives. They inform

the general public—particularly young

people and opinion leaders—about the

nature and benefits of co-operation.

6TH PRINCIPLE: CO-OPERATION AMONG

CO-OPERATIVES

Co-operatives serve their members most

effectively and strengthen the co-operative

movement by working together through

local, national, regional and international

structures.

7TH PRINCIPLE: CONCERN FOR

COMMUNITY

Co-operatives work for the sustainable

development of their communities through

policies approved by their members.

Source: International Co-operative Alliance

18

19

Case #5: A Case for Growth

Group Members

Patricia Coleman, Keesler Federal Credit Union

Meghann Dawson, Credit Union National Association

Patrick Livingston, Coastal Federal Credit Union

Amy McLard, Missouri Credit Union Association

Olivia Ruiz, New Mexico Educators Federal Credit Union

Troy Stang, Northwest Credit Union Association

Daniel Winters, Co-Operative Credit Union

The OpportunityWith $100M in assets, Yakima Community Credit Union is a full-

service community credit union with one branch location and two

critical challenges: stagnating growth and an aging member popula-

tion. Both assets and membership levels have dropped in each of the

past three years.

Because of declining loan and investment yield, and relatively high

fixed costs (including an expensive lease), the credit union’s return

on assets (ROA) hovers just above 0%. Decreasing loan volume and

increasing loan delinquency and charge-offs have led to a dropping

loan yield. Capital levels are stressed: After a high of 12% two years

ago, net worth has dropped to 9.5%.

Senior management needs to create growth opportunities and

believes that the vibrant demographic breadth of the local commu-

nity offers exceptional prospects. Potential member segments include

immigrants, youth, the unbanked and underbanked, minorities,

and individuals with disabilities. Now the team has to convince the

board that it can come up with a sustainable strategy that meets the

needs of both new target groups and established members—without

further damaging the net worth ratio or ROA.

Key ConsiderationsTwo key segments jump out as logical targets for this credit union:

the Hispanic market and the youth market.

In Yakima County, these groups make up a substantial portion of the

population:

• 42.4% of Yakima County is Hispanic.10

• 31.1% of Yakima County is under the age of 18.

But before the credit union can develop products and services to

meet the needs of these markets, it needs to be aware of internal

20

and external barriers to success that could impact both product

development and delivery strategies.

The credit union has limited experience with the Hispanic market,

few staffers who speak Spanish, and a location that is inaccessible

to many new member targets. Higher delinquency levels with new

member targets may drive changes in collection practices, and the

credit union has to be certain that efforts to meet the needs of new

targets don’t come at the expense of existing members. The credit

union will also need to balance the cost of new products/technology/

resources against potential benefits.

The SolutionWith these factors in mind, the credit union decided to launch a

program designed to meet the needs of both existing and targeted

new members: Creating Member Loyalty (CML).

This program helps the credit union transition from a product-

driven culture to one driven by member service and needs. It will

focus on meeting needs at each life stage and working to create a

relationship where the member views the credit union as his or her

resource of choice for financial services.

As a critical first step, the credit union needs to review its products

and ensure that it is offering a range that meets members’ lifetime

needs. The credit union will use two criteria to determine which new

products to offer:

• A product’s ability to meet member needs.

• A product’s ability to generate income—to ensure the survival

of the credit union, any product offerings must eventually be

self-sustaining.

The following products are up for consideration:

• Citizenship loans.

• International remittances via more affordable wire transfers.

• Low-income fixed loans.

• Long-term care insurance.

• Mobile banking.

• Prepaid debit cards.

• Credit cards with rewards.

Low-income fixed loans, especially car loans, are of special inter-

est. Research indicates that a CML program costs about $24,000 to

roll out over a three-year period, putting its annual cost at $8,000.

Additional auto loans could provide an excellent funding source. A

broad cross section of the member population needs car loans, and at

A GROUP MEMBER’S PERSPECTIVE

“This assignment was especially interest-

ing to me because it so closely paralleled

some of the challenges—and solutions—

that are happening at my credit union.

We are also in a situation where branch

locations aren’t always convenient for our

members and prospects. Recognizing that

they can’t always get to us, we’ve been

bringing the credit union to them via laptop

and VPN. We’re enrolling people, setting

up one-on-one financial check-ups, and

even initiating loans right at their church,

school, or workplace. In the first quarter

alone, we initiated $400,000 in loans this

way. It was exciting to share our efforts

with my team members and for them to

have enough faith in these ideas to inte-

grate them into our case study.”

—Olivia Ruiz, New Mexico Educa-

tors Federal Credit Union (Albu-

querque, New Mexico)

21

a relatively conservative interest rate of 6% and an average loan size

of $8,000, it would take about 17 more loans a year to fund the pro-

gram. In addition, each of these loans offers the potential to generate

fee income with coverage products like GAP, mechanical breakdown,

and payment protection.

Another critical element of effective CML implementation is finding

ways to overcome the limitations of having one brick-and-mortar

location. The credit union plans to create mobile branching oppor-

tunities that will deliver the benefits of the branch via a combina-

tion of an iPad app, virtual private network (VPN), and wireless hot

spots. Such avenues that are likely to be popular across these member

segments.

The credit union will also bring the credit union experience to where

the target market lives, works, and goes to school, including coopera-

tive fruit packaging facilities, farms, schools, colleges, churches, and

sporting events.

This combination of new products, new locations, and an overall

dedication to meeting member needs should help drive increased

membership numbers and income opportunities for the credit union.

22

Case Study #6: Preserving the Small Credit Union by Recommitting to Core Values

Group Members

LaTonya Allen, Government Printing Office Federal Credit Union

Dianah Darkwah, Ghana Co-Operative Credit Union Association

Ltd.

Betty DeWeese, Telco Plus Credit Union

Jennifer Hamrick, State Employees’ Credit Union

Jeremy Martin, Navigator Credit Union

Adam Schwartz, National Cooperative Business Association

Barb Stanek, Missouri Credit Union Association

The OpportunityLike many small credit unions, a suburban Washington, DC, institu-

tion that has $10M in assets is facing a critical dilemma: to merge or

not to merge.

This credit union has just 3,200 members, a staff of four, and a

single location that is not in the community it serves. It has spent

much of the last decade trying to diversify its field of membership,

but the results have not had the expected payoff. The credit union

is a slightly weak financial performer and was placed under the

NCUA’s Prompt Corrective Action three years ago because its capital

fell below 7%. In 2010, the NCUA Stabilization Assessment dealt

the credit union another critical blow.

At present, the numbers continue to look relatively bleak:

• 6.75% net capital.

• .40% ROA.

• .75% delinquent loans ratio.

• 1% charge-off ratio.

A prospective white knight has entered the picture: A local credit

union (with $150M in assets) with branches in members’ neighbor-

hoods has made an offer to merge.

Key ConsiderationsWhile a merger might immediately seem like the ideal solution to

this credit union’s problems, there are a number of key factors to

keep in mind.

Differences in Cultures

The smaller credit union has a membership of multiple SEGs who

are substantially blue- collar with relatively low incomes; the larger

23

credit union has a community charter and serves a primarily white-

collar, higher-income member. The smaller credit union has a new

board that is diverse and fired up about finding more effective ways

to meet the needs of the underserved; the larger credit union’s board

is entrenched, conservative, and accustomed to meeting the needs of

a higher- income membership.

Differences in Policies

Policies and fees at the $10M credit union reflect its commitment to

serve those with lower incomes. The $150M credit union has loan

policies geared toward A and B paper members and a fee structure

designed to build capital.

Strength Relative to Peer Credit Unions

Although the smaller credit union does not stack up well against

other credit unions of its size in terms of net capital (6.75% vs. a

peer average of 12.54%), its numbers are better in other categories:

ROA (.40% vs. –.01%), delinquency (.75% vs. 1.74%), and charge–

offs (1% vs. .75%).

The SolutionAfter weighing these considerations, the smaller credit union decided

to remain independent and to renew its commitment to serving the

underserved. But this decision doesn’t erase the reality that the credit

union is currently on shaky financial ground. To address this, the

credit union has opted to do several things, discussed in the follow-

ing sections.

Pursue Partnerships That Enhance Its Ability to Serve the Underserved

The credit union will attempt to gain Low Income Designation

(LID) from the NCUA and a Community Development Financial

Institution (CDFI) designation from the Department of the Trea-

sury. These designations will provide the credit union with access to

additional sources of capital and help it meet NCUA standards for

being well capitalized.

Grow Membership

The credit union has a number of ideas for growing its membership

base:

• Establishing advisory board/ambassadors—This group will include

one member representative from each of the eight SEGs that cur-

rently make up the credit union’s field of membership. This group

will give the board of directors an effective way to share informa-

tion with SEG employees and also create a feedback loop that will

help drive future product/service offerings.

A GROUP MEMBER’S PERSPECTIVE

“My credit union recently acquired another

institution and I thought that experience

had solidified my opinion that ‘bigger is

better’ because it affords you the ability

to offer your members a broader range of

locations, services, access to capital, etc.

Approaching the issue of mergers from the

perspective of a smaller credit union gave

me a glimpse of what it feels like to be on

the other side. It helped me appreciate the

benefits of preserving small, local credit

unions. I’m usually objective and analytical

when it comes to decision making—this

experience challenged me to consider

more subjective factors too.”

—Jeremy Martin, Navigator Credit

Union (Pascagoula, Mississippi)

24

• New SEG development—With the help of the advisory board, the

credit union hopes to identify potential SEGs in the community.

• Enhanced online services—To date, there has been very limited

use of the credit union’s online services. The credit union will

promote these services more actively through both multimedia

channels and staff interactions with members.

• Community outreach—Although the credit union does not have a

community charter, it will actively engage in outreach and volun-

teer efforts, which will serve the community and build awareness

of the credit union.

Increase Member Access

Convenience has been the single biggest obstacle to member growth.

The credit union will have the opportunity to move its physical

facility in two years when its current lease is up—one possibility is to

move its location to the offices of one of its SEGs.

In the short term, the credit union will join the shared branch

network available in its area. This membership will bump the credit

union’s presence from 1 location to 16 (branches and ATMs) within

a six-mile radius of its current branch. The credit union will also

use some of the capital from its LID and CDFI designation to fund

ATMs in or near its SEGs. This will allow it to better serve members

and increase the possibility of nonmember fee income.

The credit union believes that these efforts will allow it to continue its

mission of serving the underserved and help drive necessary member

and financial growth. Although it cannot completely reject the possibil-

ity of a future merger, at this time it feels that option is not in the best

interests of its membership. It is the board’s belief that it was elected to

serve, not dissolve, and at this point it intends to do just that.

25

ConclusionThe mission of the DE program is to promote credit unions’ social

responsibility and domestic and international development through

interactive education and professional networking. By linking the

past and present of credit unions, the DE program brings renewed

relevance to credit unions’ seven cooperative principles and the phi-

losophy of “People Helping People.”

Over the past 29 years, more than 1,000 credit union advocates

from over 30 countries have graduated from DE training to become

Credit Union Development Educators (CUDEs). Once they earn

their CUDE designation, people return to their jobs with a sense of

personal enrichment and renewed energy to share what they have

learned. This growing corps of credit union advocates devotes profes-

sional and volunteer time to spreading the credit union message to

audiences throughout the country.

The NCUF is the primary sponsor of the DE program. Support

is provided by CUNA Mutual Group, the Credit Union National

Association, the World Council of Credit Unions, state foundations

and leagues. For more information about DE, please visit

www.ncuf.coop.

26

1. Best class ever.

2. Callahan and Associates, “Credit Union Membership Growth

Soars,” www.creditunions.com/article.aspx?articleid=491.

3. Bankrate.com, credit card averages index, www.bankrate.com/

credit-cards.aspx.

4. Denise Gabel, Blueprints for Innovation (Madison, WI: Filene

Research Institute, 2011), 90.

5. FINRA Investor Education Foundation, “State-by-State Finan-

cial Capability Study,” www.usfinancialcapability.org.

6. FINRA Investor Education Foundation, “State-by-State Finan-

cial Capability Study.”

7. FINRA Investor Education Foundation, “State-by-State Finan-

cial Capability Study.”

8. Matt Fellowes and Mia Mabanta, Banking on Wealth: America’s

New Retail Banking Infrastructure and Its Wealth-Building Poten-

tial (Washington, DC: Brookings Institution, 2008).

9. FINRA Investor Education Foundation, “State-by-State Finan-

cial Capability Study.”

10. US Census Bureau, “State and County Quick Facts,”

Yakima County, Washington, quickfacts.census.gov/qfd/

states/53/53077.html.

Endnotes

The Credit Union Development

Education Program

Mark MeyerChief Executive Officer

Filene Research Institute

George HofheimerChief Research Officer

Filene Research Institute

ideas grow here

PO Box 2998

Madison, WI 53701-2998

Phone (608) 231-8550

www.filene.org PUBLICATION #247 (7/11)

Research Brief