slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
REAL Solutions Program Update NCUF Board Meeting June 2007 PowerPoint Presentation
Download Presentation
REAL Solutions Program Update NCUF Board Meeting June 2007

Loading in 2 Seconds...

play fullscreen
1 / 17

REAL Solutions Program Update NCUF Board Meeting June 2007 - PowerPoint PPT Presentation


  • 70 Views
  • Uploaded on

REAL Solutions Program Update NCUF Board Meeting June 2007. 1. Expanded League Participation. Pilot Leagues Wisconsin, Ohio, Missouri and Maryland/DC In Implementation

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'REAL Solutions Program Update NCUF Board Meeting June 2007' - britain


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

REAL Solutions Program Update

NCUF Board Meeting

June 2007

1

expanded league participation
Expanded League Participation
  • Pilot Leagues
    • Wisconsin, Ohio, Missouri and Maryland/DC
  • In Implementation
    • Alabama, New York, New Mexico, Connecticut, Massachusetts, New Hampshire, Rhode Island, Arizona, Kansas, Oklahoma, Virginia, Arizona, Florida and Indiana
  • Interested
    • Oregon, Colorado, Montana, Texas, Illinois, Louisiana
  • Approached
    • California
expanded credit union participation
Participating Credit Unions

261 from 14 Leagues

Asset Size

$52 Billion in Assets

Number of Members

6.2 Million Members

Number of Locations

825 Locations

Expanded Credit Union Participation

Estimations Made

for Connecticut

And Massachusetts

Smallest CU at $1 Million; Largest at $1.6 Billion

finding new ways to grow
Finding New Ways to GROW

Western Credit Union

Over 250 New Hispanic Members

Financial Counseling Programs

English Classes

Adapted to the Changing Neighborhood

  • Community First Credit Union
    • 100 New Hispanic Members
      • Mobile Consulates
      • Accepts Undocumented Applicants
      • Hiring the right staff
      • Willing to go Slow and Steady
finding ways to grow
Finding Ways to Grow

Suncoast Schools CU

Provided 11,000 + payday loans

CU Lending staff believe this has had an impact on membership growth. This is a product that is difficult to match.

Andrews Federal CU

Added 2,758 New Members

From a Low-Wealth Predominantly

African American Neighborhood

By adding a new branch with the “right services”

expanded credit union products
Expanded Credit Union Products
  • Education
  • Transaction Products
  • Credit
    • Sub-Prime Used Car Loans
  • Small Savings
    • Step Up CDs
  • Wealth Accumulation
    • Predatory Mortgages
  • Payday Loan Products

New Product Development

sample results
Sample Results
  • Expanded Interest
    • Wisconsin
    • 19 Credit Unions
    • 12 More in Pipeline
      • Tracking issues
      • Overall 45,000 users
      • $12.5 Million in unused RAL Loans
      • Many CU assisted sites
    • 2007 States
      • New York
      • Virginia
sample payday lending results
Sample Payday Lending Results
  • Area of Highest Credit Union and League Interest
  • Over 75 CUs offering low cost products
  • Thousands of consumers/members accessing lower cost products
  • Monitoring to be put in place
  • Systems Group Task Force – Helping to Answer the Questions
    • Data Collection on Credit Union Costs
    • Consider National or State by State Guidelines
    • Talk to CUNA about proposed legislative Language
finding the pricing sweet spot
Finding the Pricing “Sweet Spot”
  • Pricing Measurement
    • Making it Better Versus Making it Worse
  • Telling the Story
    • Be Bold – don’t spin the message but tell it like it is
  • Understanding the Market
    • What the new MAPR may mean to military members
      • Take away any options or create a new market for credit unions
    • Making several existing credit union products un-doable
  • Understanding Pricing
    • Stop measurement by APR but by cost
    • Research several successful models to determine point of breakeven/profitability
    • Does experience in making payday loans mean lower costs to consumers and members
sample results2
Sample Results

Prospera Credit Union

Good Money

5700 Advances Done

$2 Million in loans disbursed

Approval rate is 95%

Unbanked consumers

$9.90 / $100 for 2 weeks

$4.00 in losses

$3.00 TA Costs

909 New Members

$202,000 Saving

  • Ohio Credit Unions
    • Stretch Pay
    • 25 participating credit unions
    • 21,700 Loans disbursed
    • $7.42 Million in loans disbursed
    • $18/100 x2=$36 versus
    • $2.64/$100 (SP)
    • Saving Members
    • $2,475,712 Savings
sample results3
Sample Results

Freedom Loan

St Louis CCU

Started March 1

200 Loans Disbursed

25% plus an annual fee

(Under 36%)

Member Response –

“Thank You

This loan is like a late Christmas Gift – I needed this money and had no where to go but the payday lenders – My Credit Union really

Helped me out”

Quick Cash

Energy Federal CU

Started in 1999

5700 Loans Disbursed

$42 Million Disbursed

$142,500 Fees Collected

$25,000 Charge Offs

Average Loan size $800

Or $3.3 / $100

Credit Union eliminated the additional interest rate in 2006

And saved members

$637,500 Savings

forging partnerships
Forging Partnerships
  • Aspen Institute – Annie E. Casey Fnd.
    • Predatory Car Loan Programs – Designed for Credit Unions
  • Internal Revenue Service
  • NCUA
opportunities
Opportunities

REAL Solutions

  • Political Advocacy
    • “A seat at the policy table”
    • National Branding and Awareness Campaigns
  • Learning Center
    • Wanted by CUs
  • NCUF
    • Increased CIF
    • Name Recognition
    • “the New and Bolder Foundation”
things to think about
Things to Think About
  • Innovative products and pricing strategies may not be understood in the marketplace
    • Consumer groups and other credit unions may question product pricing strategies and certain terms and conditions
    • What to do with products to close to the pricing edge?
    • Be bold – tell it like it is
  • Need help persuading that “low-wealth” doesn’t mean no ROI.
    • The “untapped” story.
    • Look at Wal-Mart.
  • Opportunities missed
    • Managed growth means some leagues have to wait to implement
  • Adding new and fresh business models
    • Staying relevant by finding the right new products and business models
    • Rapid ramp up has staff stretched to continue learning
  • Institutionalizing Knowledge
    • Need better documentation and knowledge management systems.
    • Still overly dependent on a single person
  • Program versus project
    • Financial and human resources