2008 Leadership Conference

Lights, Camera, Action!

2008 Annual

Leadership Conference

CU*Answers

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June 18, 20081

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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

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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?

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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

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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!

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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?

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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

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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

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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

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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?

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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

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Responding to Stormy SkiesEverybody’s Putting Money Away For a Rainy Day

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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?

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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?

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Right Now, Credit Unions Stand OutRemember It’s a Sliding Scale

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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

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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

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Knowing Your Member is Still the Key to Future Relevance

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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?

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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/

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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

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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

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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!

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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!

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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

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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!

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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!

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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

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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!

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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!

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Our Favorite Reports

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And surprisingly, one of your favorites...Tools for Your Staff

A Report on Jump to the Future

Invest...Execute...Earn!

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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

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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

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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...

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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

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Jumping to the Future

ATM “Pause for a Cause”

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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?”

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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 $$)

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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

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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

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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!

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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?

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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?

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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...

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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!

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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...

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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

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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

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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!

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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

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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

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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

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..a date that will live in infamy (for many of you)

That brings us to It’s Me 247......

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?

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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

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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

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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

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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

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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!”

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“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!

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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

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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

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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

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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)

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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

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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!

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e-Notices Biggest money saver since

e-statements Will include enhancements to the

online banking message center Filter by message type Delete messages

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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!

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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

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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!)

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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

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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?

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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

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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

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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

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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

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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

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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

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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

New Declarations

Tools, Processes, and Goals for the Future

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



Some early examples:

But how much further can we go?

90



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


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

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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

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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

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CU*Answers employees went

live on June 11

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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

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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



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

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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

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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


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


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


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


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


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


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


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


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


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

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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?

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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


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


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


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


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

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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

Declaring Some New Directions In Software

Interesting Specs to Highlight

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

127

The Power of the NetworkSelling a New Credit Union Future

128

The Power of the NetworkSelling a New Credit Union Future

www.cuasterisk.com

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

141

The Power of the Network Check 21 as the Common Factor

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


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?

148


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

Randy’s Top Ten

Top Goals for Your Teams in the Coming Year Using CU*Answers Tools You Already Have

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!)

What’s On Your Mind?

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!

165

Some final thoughts...

What are we going to do tomorrow?

Date post:	07-Dec-2014
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