2004 CU*BASE Annual Leadership Conference · defend our niche and motivate clients and members to...

2004 CU*BASE Annual Leadership Conference

June 23, 2004

Welcome!

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A Quick Decade:CU*Answers Aged 25 to 35

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A Quick Decade:“Where Have All the CUs Gone?”

National CUs Michigan CUs

Peer Group 1994 2004 1994 2004

Over $1 Billion 16 88 1 3

$250 Million - $1 Billion 168 420 8 20

$100 Million - $250 Million 401 661 19 46

$50 Million - $100 Million 569 809 37 79

$20 Million - $50 Million 1,403 1,558 118 86

Under $20 Million 9,762 5,952 352 194

Total 12,319 9,488 535 428

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A Quick Decade:Anchored by Our Partners

Survival

Forced retooling

Re-earn our owners’ confidence

Month-to-month horizon

Nowhere to go but up

Saved by ownership’s will

Survival

Constant evolution

Promote our owners’ confidence to general marketplace

2 to 3-year horizon

North, east, west or south

Led by our ownership’s will

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2005 – 2015: It Will Be Tougher

For our industry to survive, we must all adhere to the concept of timely solutions based on timeless principlesAs we approach the next 10 years, it will become harder for this CUSO, and for CUs in general, to defend our niche and motivate clients and members to see the value in the credit union wayCommitment, creativity, vision, and an intensity about partnership and new solutions will have to rule the day

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Today’s Agenda

Selling the Power of OwnershipAre We a Partnership for Business Process Design? Redesign?The Year in ReviewSoftware Development Report

New Tools in Your ToolboxThemes for Software DevelopmentWhat’s Next?

CU*Answers PartnershipsHardware and CU Networks

Selling the Power of Ownership

Credit Unions and CU*Answers: We’re In the Same Boat

With the Same Challenges, Serving the Same Members

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Excerpt from “Selling the Power of Ownership” article:“This might be the biggest problem in the credit union business today. Financial service consumers cannot differentiate the ownership dividend paid to credit union members from the services they receive from non-credit union providers. Is there any power in owning a credit union? Is there any return in ownership? What does the word “owner” mean if you don’t have stock or receive stock dividends?”

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Selling the Power of Ownership:

What Can We Do?

Excerpt from 2004 CU*Answers Board Planning Session:“We can be over the top . . . We can use technology and every member communication to reinforce the value of ownership. Our firm can give ideas to our credit unions and to the industry that show up in member transactions, member contact points, member communications, and if we use our cooperative marketing budget they will show up in the media.”

Rewarding Savers and Borrowers as Credit Union OwnersRewarding Transactors as Credit Union OwnersThe Ownership VoiceThe Power to Lead

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Rewarding Savers/Borrowers

Are you paying your savers and borrowers the ownership difference?

TBA CU has paid Jim Vilker $75 in 2004 for being a borrowing member

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Rewarding Savers/Borrowers

What if you were bold enough to make a statement that your ownership difference was 3% of every dollar paid to the member?So instead of paying $10 dividend, you paid a $9.70 dividend and a $0.30 ownership dividend every month

TranDate Amount (n/a)

CurrentBalance

TransactionDescription

TransferAccount

ID

3/31/04 9.70 4,577.24 SHARE DIVIDEND OP3/31/04 .30 4,577.54 OWNERSHIP DIVIDEND OP

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Rewarding Transactors

What if you paid members when they acted like an owner and saved the credit union money through their actions?Transfer expenses from customers to benefits for owners

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Rewarding Transactors

Collaborative Marketing Contest (Apr. 2004): We Pay Owners for E-Statements

14 CUs participated116,545 inserts mailed7 web links

300% average increase in new enrollments (comparing Feb-Mar to Apr-May periods)1,266 enrollments (estimated savings: $11,394 in one year)

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The Ownership Voice

Do you advertise the owner’s voice? What kind of surveys, focus groups, and other “voice of the member” tools do you use?Would you use a survey/secret shopper service if offered by Xtend/CU*Answers?

Through home banking / audio response?Through mailings?Through personal contact?

How do you define “the owner’s voice”?Do you listen, do you hear, do you act, and do you learn from what your owners have to say?

Member Reach: a 2005 service?

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The Ownership Voice:

Making it Work at CU*Answers

CU*Answers projects in 2004:Pricing Focus Group“Know Your Member” Focus GroupOpen Suggestion Box / Idea FormOne Step AheadFace-to-Face – education and web conferencingBuilding Loan Channels focus group

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2004 Pricing Focus Group

Ron BudzinskiLa-Porter FCUChris ButlerCommunity CUJeanna EckhardtMichigan Coastal CUShawn HansonAdvantage CUGlenn KretchmerATL CUBob MackayBerrien Teachers CU

Dave OhmanFiler CUJoni ShinnService 1 FCURay WardKent County CUDave WrightServices Center FCUJohn YeomansTBA CU

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2004 Pricing Guide

Comparative Pricing AnalysisOur ASP pricing is competitiveOur base member pricing is competitiveOur in-house pricing is competitiveOur a la carte pricing is a competitive advantage

Also available upon request: The CU*Answers Pricing Model: A Historical Perspective 1999-2004

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0

10

20

30

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Relationship (Complexity/Asset Size)

% S

avin

gs

Understanding Value vs. Price

Price

Ownership DividendOwnership Dividend

Participation

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Goal was to respond to the expense pressures added by home banking services

Are these commodities?What is over service?How can we control costs?How do we expand value?Can CUs make expense trade-offs?

What is the long-term outlook for CU*@HOME?

www.gonzobanker.com

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Tailoring CU*@HOME service levels, one credit union at a time

Testing in July and AugustCU control included in 2004 Fall release

Login & menus 2 and 3 minutesTransactions & settings5 and 6 minutesResearch & forms 20 minutes (no change)Sales & related links3 minutes

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The “Open Suggestion Box”

Jun ‘03-May ‘04: 23,667 calls in to Client ServicesOf those calls, 6% become project sheets targeted at program modifications and development

Avg. 78% of all projects come from client requests and suggestions

Remaining 22% generated by sales interaction, and CU*Answers leadership interpretation of the market

916 projects completed and moved into productionSaw substantial increase in the use of the Idea Form

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One Step Ahead

Actively calling about CU opinions and feedbackAverage call lasts about 20 minutes

5 campaigns since last year:Month Theme Calls MadeJune/July ’03 2003 Spring Release 78August ’03 CU*Answers education offerings 85November ’03 2003 Fall Release 87February ’04 ACH enhancements 75Ongoing AnswerBook 90

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Face-to-Face

July 2003 – June 2004Classroom sessions: 124 events; 1,085 participantsRegional training: 5 events; 284 participantsIndividual requests: 64 events

Next year we will also have stats on online courses

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Changing How We Interact

Web conferencesStarted with October 2003 release training28 web conference events held since then

(Callahan & Associates has done 50+ Webinars in the past year, averaging 60+ attendees each, at an average price of $199 each)

The evolution: Hold separate sessions for “live” training and web conferencing

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The Power to Lead

An inherent right of ownership is the ability to participate in the leadership and direction of the firm you ownDo you still sell the fact that you need your members to help buildyour organization?Is your Board an asset?

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The Power to Lead

Are you using your web site as an opportunity to tell the community and your owners about what it means to own the credit union and participate as a leader?

Election rulesBoard member handbookLeadership calendar

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The Power to Lead

CU*Answers would like to participate in your leadership eventsWhether as facilitator, or featured speaker, or quiet participant – we want to hear about your future

Recent Board planning sessions:

Kent County CUService 1 FCUTBA CUDelta County CUForest Area CU

Are We a Partnership for Business Process Design? Redesign?

Building a CUSO for Execution in a Networked World

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At its 2004 Board Planning Session, CU*Answers emphasized the need for our partnership to extend its focus further into the futureTo accelerate our momentum by engaging the collective power of credit union CEOs and senior leadersTo ensure that weare focused on business process as intently as we areon daily tasks

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How?By anticipating the changes to business process that build member demand

Building Loan Channels focus group

By measuring network activity and setting goals for our collective input and outputBy designing systems that allow us to measure and benchmark input and output

LobbyLook and AnswerBook

By giving all credit unions better insight into our collective efforts and projects

Monitor

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Anticipating Changes that Build Member Demand

Building Loan Channels focus group Kickoff meeting on June 9; 28 attendees (23 CUs)Goals:

Set 2005 development agenda for loan productsBroaden CU*BASE/CU*@HOME Internet lending capabilitiesExpand third-party lendingoutlets

Next delivery: October 2004 – Specs forInternet lending changes sent out for comment

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Does Technology Enable Business Process or Define It?

The most telling moment in the Focus Group meeting was when we learned that many CUs were allowing the tools to dictate the process......increasing the time, and ultimately, the expense of every loan by not tailoring the way the toolwas used to the loan product, the member need, or the lending opportunity

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Measuring Network Activity

Measuring network activity to learn more about individual CUs

Developing and publishing CU and network activity scorecardsTransactions, lending, etc.

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Understanding Network Activity

AnswerBookIntroduced to staff August 3, 2003Rolled out to clients October 1, 2003

Approx. 2,000 new incoming help desk items per month

Oct. ‘03 May ‘04 % IncreaseKnowledge base items 134 794 203%Knowledge base searches 636 1,031 62%

“This is a good tool to get the answers we need.” – Ilene, City Employees CU

“I like not having to call to get my answer.” –Jody, Onaway CU

“I like this method of electronically sending my ideas.”– Steve, Brewery CU

“Awesome!” –Debbie, County-City CU

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An AnswerBook for your credit union membersUnderstanding the questions 700,000 people ask of 100 credit unions (can we do this?)Financial opportunity –discounts starting at50% of annual cost

Kickoff meetingweek of August 9, 2004

www.cuquestions.com

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AnswerBook discounted pricing

Asset Size Setup Fee Year 1 Year 2 Year 3$0 - $10 million $525 $83 $124 $165$10 - 25 million $525 $130 $195 $260$25 - $50 million $525 $175 $263 $350$50 - $100 million $525 $325 $488 $650$100 - $150 million $525 $540 $810 $1,080$150 - $200 million $525 $595 $893 $1,190$200 - $250 million $525 $650 $975 $1,300$250 - $300 million $525 $705 $1,058 $1,410$300 - $350 million $525 $760 $1,140 $1,520$350 - $400 million $525 $815 $1,223 $1,630$400 - $450 million $525 $870 $1,305 $1,740$450 - $500 million $525 $925 $1,388 $1,850

Monthly Fee

Pricing valid for orders placed by December 31, 2004.

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Insights Into Network Projects

Announcing Project MonitorAn Internet-based CU*Answers project tracking systemWill email alerts as projects move through development teamsA shared view of what thenetwork is working on

Do you understand theCU*Answers SDLC?

Monitor is for projectmanagement, not an outstanding “wish list”

http://monitor.cuanswers.com

The Year in Review

New Clients and Sales Activity

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CU*BASE Credit Unions: 92

14 States

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Self-Processing CUs

All CUs currently under contract

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1

9

1

61

2

4

1

On-Line CUs

1

11

2

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CU*Answers Owners: 65

Percent of Total CUs:

70%

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13

Self-Processing CUs

12 States


1

1

1

444

4

1

On-Line CUs

1

2 1

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# of Members by StateCU*BASE Credit Unions

Michigan (367,300)Wisconsin (148,800)New Mexico (39,300)New York (30,400)Indiana (22,200)Texas (22,100)Connecticut (19,500)Florida (11,300)Illinois (7,400)South Dakota (7,200)Ohio (6,700)Washington (1,200)Minnesota (900)

NY

TX

IN

CT

FLI L

SD

NM


WAOH

WI

MI

CU*BASE Credit Unions: 92Total Members: 684,300

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# of Members by StateCU*Answers Owners

Michigan (301,900)

Wisconsin (111,900)

New Mexico (39,300)

New York (30,400)

Indiana (22,200)

Texas (22,100)

Connecticut (19,500)

Florida (11,300)

Ohio (6,700)

Illinois (5,800)

South Dakota (5,600)

NM

NY

TX

CT

FL

I LSD


CU*Answers Owners: 65Owner Members: 576,900% of Total: 84.3%

IN

WI

CU*BASE Credit Unions: 92Total Members: 684,300

MI

OH

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CU*BASE Conversions

July 2003 through June 2004

Since Last Year’s MeetingNew On-Line Clients

Consumers Federal CU(Brooklyn, NY)

AAA Federal CU(South Bend, IN)

Premier Financial CU(Clinton Township, MI)

Rogue River Community CU(Sparta, MI)

GR Consumers CU(Wyoming, MI)

Hardin Community FCU(Kenton, OH)

Isabella Community CU(Mt. Pleasant, MI)

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1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

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Since Last Year’s MeetingOn-Line Mergers

Westshore CU into Muskegon Co-Op CU(Muskegon, MI)

Center Valley CU into Fox Communities CU (Appleton, WI)

Coming Yet This YearNew On-Line Clients

(September) Alpena County Medical CU (Alpena, MI)

CU*BASE Conversions


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100,000

200,000

300,000

400,000

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600,000

700,000

800,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

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Coming Yet This YearMergers

(July) Osceola Community CU into West Michigan CU(Grand Rapids, MI)

(July) Winnebago CU into Fox Communities CU(Appleton, WI)

(July) Twin Cities CU into Berrien Teachers CU (St. Joseph, MI)

(August) 1st Security CU into Fox Communities CU(Appleton, WI)

CU*BASE Conversions


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200,000

300,000

400,000

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1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

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CU*BASE Conversions

2005 Fiscal YearNew On-Line Clients

(January) Allegan Community FCU(Allegan, MI)

(February) Besser CU(Alpena, MI)

(March) Alpena-Alcona Area CU(Alpena, MI)

(June) SECU(Saginaw, MI)


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1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

New Tools In Your Toolbox

What plans can you develop for 2005 based on new tools released in 2004 and

already part of your day-to-day workplace?

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New Tools In Your Toolbox

During the first CU*Answers University “CEO Strategies Week” in May, we talked about how to write business plans that include improving CU capabilities without additional expenseWhat are the top 10 toolsyou plan to use from the 2003-2004 developmentyear?

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New Tools In Your Toolbox:2003-2004 Development

Success of “Knowing Your Members” toolsStatistical Productivity toolsfor teller and cash activityExtending credit-based decisions (pre-approvals)

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Tiered Services27 CUs currently configured

17 scoring and rewarding10 scoring without rewardsSince July 2003, have met with 13 CUs to get startedProgram names: VIP Rewards . . . Member Rewards. . . Star System Pricing . . . Gold Star

Basic50%A

27%

B14%

C9%

Basic55%A

24%

B12%

C9%

Avg. Members/TierHousehold Scoring Method

Avg. Members/TierMember Scoring Method

9 CUs 8 CUs

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Making GOLD fun for employeesPersonalizing navigationPrompt for auto-securitySelecting your teller interfaceSelecting your aesthetic experience

What’s next?What issues?At what cost?

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BrandingAt last year’s conference, Dave Ohman asked, “why brand?”When the price was right, credit unions stepped up:

GOLD branded: 31CU*@HOME branded: 20

What’s next?What issues?At what cost?

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New look and feel for Teller Processing Quicker learning curvefor new clients“Mousers” vs.“keyboarders”Only see what you need, when you need itGOLD user interfaceas a software development tool

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Stop Pay enhancementsNon-monetary records – “messages” to members“Suspect” stop pay processing

Loan Insurance and amortization enhancementsComplete rewrite of amortization programsNew insurance program configuration optionsImproved insurance calculation and posting processes

Still holding out for a new and improved Loan Quoter!

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CU*@HOME Transaction sorting and filteringRelated linksURLs for sales info

Infrastructure.NETNew teamDocumentedInner workings

Themes for CU*Answers Software Development

Thinking about strategies that need tools to improve the “big picture” in credit

unionsLittle projects can change the way big

thinkers see the world

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Themes for Software Development:

Focusing on Internal Auditors

In 2005, CU*Answers will focus on getting both internal and external auditors more involved with the day-to-day workings of CU*BASE and CU*@HOME

Continuing to improve Member Account AdjustmentsCoded Account AdjustmentsNew Wire Transfers systemMail/Direct posting codes

CU*Answers “Employee 89” Security Tracking access for each individual CU*Answers employeeReporting for CU auditors

2005 Focus Group: Where’s the input?

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Focusing on Internal Auditors

It has to be more than reports—what do internal auditors need as tools to interact with data?

Dormancy processing improvementsUnderstanding the total costMore interactiveImproved options for monitoring

Bank Secrecy verification inquiryInteractive, online; allows for samplingVerification checklist

What does it mean to put your auditors on line?

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Documenting the Back Office

Documenting G/L and back office activityConfigurable purpose text –“What do we use this G/L account for?”Configurable procedures text –“How do we reconcile this G/L account?”Configurable comments –“How did we fix an out-of-balance condition?”Configuring A/P comments –“Why do we do business with this vendor?”

Communicating key information about accounting is just as important as the numbers

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Documenting the Back Office

Consider the need for CUs to outsource and share resourcesIs your back office interactively documented in a way that you can communicate with CU*Answers? With potential partners? With temporary employees? Or even with your management team and board?

What else can we do in 2005 to make sure you are ready to get creative in these areas?

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Making Pricing a Strength

Understanding pricing and making that a CU*Answers strengthCU*Answers has always led the way with configurable pricing options, relationship waivers, and the ability to collect income

In 2003 we released the Fee Waiver Information fileIn 2005 we want to perfect the art of understanding when and why we charge member fees, and what is the consequence of when we don’t

Artful pricing can be the difference between a winning ROI and a lagging one – it can be the difference between the CU

philosophy and appearing to be a bank

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CU*BASE at the Center of Meetings

CU*BASE has a DB2 database and full Query capabilities, and CUs are becoming more adept at database analysis and reporting“We know the information is there. Just give it to us! Don’t make us work so hard to find the answers we’re looking for.” - Chris Butler

Software Development: What’s Next?

New Tools for 2004 and 2005

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Online Credit Cards

Configured as a CU*BASE loan category (new Process Type “V”)

Separate “buckets for purchases, cash advances, and balance transfers; up to 999 configurable rates per bucket

Online card configuration, maintenance and orderingIncorporated into CU*BASE account inquiry and Phonesoftware

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Member Service Rewrite(2004-2006)

Opening MembershipsBreaking down input screens into multiple steps Conditional fields based on CU workflow management configIncorporated into the flow based on CU config:

Household enrollmentRequest credit reportPersonal banker preferences (e-statements, bill pay, ARU/home banking)OFAC and fraud scans

Opening New Accounts No more entering the account number over and over!Ability to pull credit report based on DIVAPLIncorporated into the flow:

ODP configPrinting starter checks

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Tracking Joint Owners and BeneficiariesUnlimited joint owners for all sub-accounts (savings, checking, certificates)All joint owners tracked by SSN like the existing membership joint owners systemSeparate beneficiary (POD) tracking system for all sub-accounts

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MiscellaneousSecondary member name (DBA) Expansion of email field to 120 characters; new fields for “other” email addressesCU-defined Membership Designation labeling system

Controls field labels on inquiry and update screens

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ANR (Courtesy Pay) Processing

CU*BASE: 24 clients using ANR processing or getting started soon (29% of all clients)

Current # of CU members with a negative balance limit: 82,956 (average limit: $575)Majority are using the automated activation/deactivation features

CU*Check Item Processing:58 out of 73 item processing clients saw reductions in return volume: ranging from -55% to -1% (2003 to 2004)13 of these saw more than a -25% reduction64 out of 73 IP clients saw a reduction in check volume during the same period

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Xtend Courtesy PayPowered by CU*BASE ANR Processing

18 CU*Answers CUs currently under contractMarketing supportOn-site management consultationTrainingCompliance servicesCollection management assistance

ResultsLa-Porter FCU: Implemented Aug. ’03 - averaging 80% NSF increaseSangamon Schools CU:55% NSF improvement the first month AAC Credit Union:38% NSF improvement the first month, 58% the second month

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Continuing to Develop ANR

Check processing statistics and verification toolsNew statistics file and inquiry for CU analysis

Income analysisVolume analysis

Improvements to negative balance collectionsConsidering integration with Households and Tiered Services

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New E-StatementsPowered by CU*@HOME

Scheduled for release in September Marketing materials to CUs for September statementsMake this a highlight of your CU*@HOME marketing efforts during the 4th

quarter

XML document format XML document format expands the member’s optionsexpands the member’s options

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New E-StatementsPowered by CU*@HOME

Download a commaDownload a comma--delimited delimited (CSV) file format to MS Excel(CSV) file format to MS Excel

Reconcile checking Reconcile checking accounts on line! accounts on line!

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CU*@HOME Continued Development

Member management of AFTs (Fall 2004)Internet lending (specifications by Oct. 1)

External rate boards Non-member lendingMember lending outside of CU*@HOMEInternet lending using auto decisions

Carryover from 2003E-alertsE-noticesA partnership with the CU*BASE tickler system

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Account Naming

New program to allow CU employees to enter a member-defined account suffix name

Auto Loan Dad’s Truck3-Mo Certificate Bill’s College

Inquiry/Phone/Teller toggle between default suffix name and member-defined account nameChanges to display the member-defined name instead of the standard name on:

ReceiptsStatementsCU*@HOME

Beta test by 12/31/04

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Projected for Fall Release 2004

AFT maintenance via CU*@HOMECU*EasyPay! UpgradeE-statements upgrade (XML)CU*@HOME timeout value configurationCheck processing statsHome banking info window in teller/phone/InquiryNotices for balloon and single-pay maturity loans

Account adjustment enhancementsWire transfersMail/direct post codesTiered Service points enhancement for ANR G/L account description lookup and purpose/ procedures tipsFinancial statement review enhancements

CU*Answers Partnerships and Cooperative Efforts

CU*Answers is technology tools and people focused on execution Cooperating to be more than

just a data processor

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Collaborative Marketing

Contest 3 (July ‘03): E-Statement Enrollment


Winner: Judy MacInness, member of Auto-Owners Associates CU, Lansing, MI

Contest 4 (Dec. ‘03): CU*EasyPay! Enrollment


Winner: Lauren Thompson, member of Ottawa County Schools ECU, Grand Haven, MI

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Collaborative Marketing

Next Campaign: CU Membership/Ownership Awareness

To raise awareness among members of the value of ownership Inserts & other materials available starting with July ’04 statement run (available as standard item from then on)

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CU*EasyPay!A Winning Cooperative Effort

As of May 2004:5,336 network subscribers (up 27% since 12/31/03)38 credit unions and growingTotal invoice from CheckFree: $23,714Member bills paid daily: $250,000 average (has spiked to half a million dollars!)

As of January 2004:Over 17,000 payments processed per month1,000 bills presented per monthElectronic payment ratio: 68%Claims ratio: 0.6%

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CU*EasyPay!A Winning Cooperative Effort

CheckFree at a glance:Processing 50 million bill pay transactions per monthElectronic pay ratio: 78%Claims rate: <0.2%Over 6 million e-bills distributed per month300 e-billers (retailers) in production todayMore than 12 million subscribersContinuing to be profitableStill #1 in the electronic bill payment space

Be sure to visit with Carol Moore in the Vendor Exhibit area

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CU*EasyPay! Upgrade

Upgrading to CheckFree “WebPay 3.2.3” Enhanced ability to activate e-bills (bill presentment)

Optional email notification when an e-bill arrives (direct link to log in to CU*@HOME)Expanded list of e-billersNew “Auto Pay” - automatically pay an e-bill (in full or up to a set amount)

Payment screen “look and feel”Make a single payment, make multiple payments or set up for auto payment

Beta Sept. 2004; all CUs by Jan.

Check with Jim Vilker about your conversion date

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Xtend Shared Branching

Very successful focus group effortNext on the focus group agenda: Automated settlement

41 CUs signed up (out of 50 total CU*BASE shared branching CUs)

Alpena area will have 6-7 new credit unions in 2005

“Go live” date is July 1, 2004Over 200K inserts already ordered for first mailing

How will you market shared branching in 2005? Take advantage of this cooperative effort

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You asked us to start combining the concepts of doing a job at the CU with the “how to” for the tools you use

Internal goals to train our staff External goals to help CUs teach their staff“Just In Time” education

We looked for a partner with a wealth of CU and financial service education content and expertise

Trusted and valued partner so CUs can develop independent strategies with MyDAS in addition to the CU*Answers shared solution

A New Education Partner

www.mydas.com

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CU*Answers University Online CampusGeneral financial service and “soft” skills contentInteractive and multi-sensory (audio, video, text); includes testing and tracking of student participationMini-modules available directly from GOLD screens, or full courses via www.cuanswers.com

A New Education Partner

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CU*Answers University

Teller SchoolFinancial Service OrientationNegotiable InstrumentsCash & Cash HandlingSecurity & Loss PreventionInternal & External Relations

Telephone SchoolBasic SkillsTelephone RapportPersonality BehaviorsSales RulesService Standards

Product KnowledgeSavings productsLoan productsConvenience products

Loan Officer SchoolLoan Officer TrainingCredit & Lending BasicsThe InterviewBehavior Skills & TechniquesApproval-Denial Process

CU DifferenceRoots of the CU Movement, Definitions & Terminology, etc.

Schools available in the CU*Answers campus:

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CU*Answers University

Online Campus Rollout ScheduleJune 28 – introduce CU*Answers staff to the full campusSeptember 13 –

Add links in GOLD to just-in-time education(“mini-modules”)Introduce CU*University campus for CUsRelease updated CU*BASEonline courses

1st Qtr 2005 – custom CU campuses available

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CU*Answers University Next Phase:Custom Credit Union Campuses

Business DevelopmentBusiness ServicesCore Competency AssessmentCollections SchoolCommunity Relations SchoolCompliance SchoolComputer Basics SchoolCU DifferenceDiversity SchoolFinancial Education SchoolFraudGenerational Differences SchoolHarassment Prevention School

HELOC SchoolIRA SchoolLeadership SchoolLoan Officer SchoolMortgage Lending SchoolMySTERY ShoppingNew Employee OrientationProduct KnowledgeSales and Service SchoolTelephone SchoolTeller SchoolTotal Quality ManagementVolunteer School

Choose from over 185 courses in these schools:

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Goals from the MyDASPartnership

Enhanced internal training for CU*Answers staffGain better understanding of day-to-day CU employee experienceAssist CU*Answers education developers in making classes more relevant for CU employeesIntroduce CUs and their employees to automated education campuses (tracking, certification, etc.)Introduce a new and trusted partner, MyDAS, to credit unions (preferred pricing, etc.)

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Primary Payment Systems

IDENTITY CHEKSM Fraud DetectionDetecting known fraud patterns

Checks against OFACChecks SSN against deaths, date of birth, and last nameChecks driver’s license against SSN and date of birthCompares phone number to ZIP code; compares address to list of hospitals, prisons, nursing homes, vacant lots, etc.Create your own “never open account” list and share with shared branch CUs

14 CUs have signed up; implementations in May, June and July

Access via the Net button in CU*BASE GOLD; full integration withthe Member Service rewrite project (the first data processor in country to do so)

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DocMergeA New Forms Management Partner

Automation for miscellaneous credit union formsUses key CU*BASE data fieldsDirected by CU; projects managed by DocMergeBeta starting late summer 2004 with Berrien Teachers CU

A new team member for forms development in 2005

Hardware and CU Networks

At your end of the phone line...Today’s CUs are building sophisticated

networks, complex Internet offerings, and some really cool graphical products

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High Availability Update

A cooperative effort attracting national attentionOwner/clients insuring themselvesBig things planned for 2005

A strategy, not a task

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Planning for Your Desktop Network Needs

CU*BASE GOLD storage requirements60 Mb (double the size of 3 years ago)GOLD custom screens will increase storage another 5 to 10 Mb per CU

Have you reviewed the minimum specifications for a desktop unit today? What should you be planning on doing for 2005?

Check with WESCO Net today!

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Matching Network Needs with Network Speed

Today, CU*BASE GOLD navigates the IBM iSeries, many internal web servers and desktop applications, and potentially the entire InternetCommunications are no longer as simple as a single line between your CU and CU*Answers

Frame relay linesISDN backupDSL and cable Internet links

Does your structure match your business plan?

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WESCO Net

Business continues to grow, but moreimportantly, Joe and Randy have become a significant part of CU*Answers and building network and security awareness

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2002 2003 2004-YTD

Gross Sales

0

10

20

30

40

50

60

Oct

-02

Nov

-02

Dec

-02

Jan-

03

Feb-

03

Mar

-03

Apr

-03

May

-03

Jun-

03

Jul-0

3

Aug

-03

Sep

-03

Oct

-03

Nov

-03

Dec

-03

Jan-

04

Feb-

04

Mar

-04

Apr

-04

May

-04

# of Managed Firewalls

98

WESCO NetThe Ultimate Solution for GOLD Releases

Introducing GUAPPLE: The GOLD Update Appliance

GUAPPLE (Gold Update Appliance)

Pros Cons No user intervention required; no demands on creditunion time or resources Configured to receive software downloadsautomatically On-demand client software delivery Download notification provided to CU*Answers staff Verification logs are created automatically fortroubleshooting purposes Remotely monitored and managed by CU*Answersstaff Secure, hardened unit; not vulnerable to virusinfections Robust UNIX operating system provides highavailability Full 3-year warranty

Cost to credit union ($589.00 per unit plus$29.00/month - includes hardware maintenance/replacement, software maintenance, WESCO Netmonitoring and managing of unit)

99

Data Retention and Network Storage Tools

In 2005, CU*Answers and its credit unions will need to come up with long-term solutions for electronic storage of all kinds of data, forms, and images

In some cases, we will partner (Carswell Data Products and CoWWW)In some cases, we will own (CU*Archives)

Regardless, a comprehensive strategy is needed by all

100

Expanding our Partnership with Carswell Data Products

Changing the lobby experience (teller networks)E-Receipts – Teller receipts, signature capture, and ID images

Changing the borrowing experienceE-Forms – Loan forms and related documents

Changing how credit unions store member information

E-Docs – Miscellaneous document imaging

101

CU*Archives: A New CU*Answers Strength

CU*Archives is an effort by CU*Answers to enhance our capabilities and services related to records retention

In 2004, CU*Answers became a direct producer of microfiche and report/statement archival on CD-ROM In 2005 we will focus on

Records retention policy managementAuditingProduct development

Coming in 2005: New CU storage products

102

Expanding our Partnership with CoWWW

In 2005, CU*Answers will put forward several new solutions to extend CU*SPY into credit union offices

Online statements past one yearCU reports past 90 daysTransitioning CU*SPY from a retrieval tool to an archival toolA new CoWWW partnershipCombining CDP and CoWWWPlanning for long-term electronic storage of all kinds of data, forms, and images

What’s On Your Mind?

Are there any topics related to technology or our CUSO that you’d like to hear about

today?

Conclusion

What are the top 10 tools you plan to use from the 2003-2004 development year?

105

Randy’s Top 10 Using CU*BASE Tools You Already Have

Create a “Borrowers For Life” programCreate an “Investors Focus” programHave 2 CU@HOME membership drivesConvert one person from back office to salesDo 4 selective statement insert campaignsCreate a Tiered Service rewards programOffer three different pricing schemas for ATM/debit cardsPay members for somethingStart a one-on-one personal banker/messaging campaignSet a big goal for member contact and then track it!

Thank you!

2004 CU*BASE Annual Leadership Conference · defend our niche and motivate clients and members to...

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