Transcript Document

Credit Unions: A Self-Sustaining
Development Solution
USAID OCDC Cooperative
Brown Bag Series
June 4, 2014
Bill Cheney, President & CEO, Credit Union National Association
Brian Branch, President & CEO, World Council of Credit Unions
Credit Unions Worldwide
101 Countries
56,000 Credit Unions
$1.3 Trillion in Savings
$1.1 Trillion in Loans
$1.7 Trillion in Assets
200 Million Members
1
Developing & Emerging Economies
93 Countries
47,000 Credit Unions
$179 Billion in Savings
$152 Billion in Loans
$252 Billion in Assets
86 Million Members
2
Foundation: Access to Finance
Internationally
United States
Taking lessons from the U.S.
to promote credit union growth
worldwide starting in the 1950s
Promoting financial inclusion
since 1934
3
4
www.asmarterchoice.org
5
Savings for Consumers
Credit unions provide
billions of $$ in financial
benefits to consumers
each year
(nearly $8.5 billion in
2013)
6
Demand Driven Approach
Consumers
like us
• Convenience
• Good prices
• Choice: variety of
savings and loan
products
• Financial education
7
Growth of the U.S. Sector
8
Community Development
• Low-income credit unions
(LICUs)
• Products designed to assist lowincome individuals and families
• Financial literacy
Communicating Arts Credit Union in
Detroit, MI
• Youth programs
9
International Engagement
World Council Partnerships Program
Bahamas / Massachusetts
Belize / Texas
Brazil / Texas
Colombia / Maryland & DC
Costa Rica / Florida
Dominican Republic / Wisconsin
Ecuador / Illinois
Estonia / Virginia
Ghana / Louisiana
Guatemala / California & Nevada
Jamaica / Texas
Mexico / Colorado
New Zealand / Canada
Paraguay / Minnesota
Peru / Vermont
Poland / Georgia
Puerto Rico / New York
Romania / Ohio
Russia / Louisiana
Trinidad & Tobago / Connecticut
Global Women’s Leadership Network
9 U.S. based Sister Societies
6 International based Societies
10
Global Challenges
Regulatory Burden
Mobile and Payments
Small CU Sustainability
Membership Growth
Small Farmers
Global Advocacy
• Representing credit union interests
at international levels
• Advocating for rigorous and
appropriate levels of regulation and
oversight
• Working with national governments
to enact progressive and
prudentially sound laws and
regulation
12
Mobile Technology Strategy
Increasing Levels of Access and Convenience
Credit unions leverage
the collective size and
bargaining power of a
network to serve more
members, more
effectively, more often.
13
Field Agent Banking – Rural Outreach
Use of smartphones (PDAs),
POS devices and mobile banking
to extend savings and credit to
remote areas
More than 1.1 million members
reached through Semilla Cooperativa
14
Remittances for the Unbanked
•
US$ 4 billion transferred to recipients
through credit unions
•
Opportunity to bring the unbanked
into the financial system
Remittances: Banking the Unbanked
(Ecuador)
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Member
•
Haiti: Enabling remittance transfer via
mobile phones
•
Remittance-linked products
Non Member
15
Strength in Networks
World Council
CU
CU
CU
CU
CU
CU
CU
CU
CU
- National
Federation
- WSG Office
CU
- National
Federation
- WSG Office
CU
CU
CU
CU
CU
CU
CU
CU
16
•
Mobile Technology
CU
CU
- National
Federation
- WSG Office
CU
Bolivia, Brazil,
Colombia, Ecuador,
Guatemala, Kenya,
Mexico, Peru and
Poland
CU
CU
- National
Federation
- WSG Office
CU
•
-
Remittances
Mobile banking
Smartphone
Tablet
POS device
Deposits
Payments
PtP transfers
Purchases
Young Adult Outreach
Reaching young people with products and services to address life transitions
2.8 million young
people have
mobilized more
than $4.3 billion in
savings through
credit unions in 30
countries.
17
Outreach to Women
• Increased savings
• Increased
investment in
education, medical
care and betterquality food
Leveraging the global community to support outreach to
women through the Global Women’s Leadership Network
18
• On average,
women make up
50% of credit
union membership
Financial Inclusion
People with
access to finance
live healthier and
more productive
lives.
I. Model Credit Union
II. Expansion,
III. Integrated Networks
Products & Services
Availability
Affordability
Accessibility
The Disciplines,
Efficiency and
The Appropriate
Mix of Financial
The Broadening
and Deepening of
Structure to Keep
Costs Low.
Products and
Services.
Outreach using all
Available Tools.
19
Agricultural Finance to Reach
Small Farmers
Peru: Farmer income
increased by 22% with
new access to finance
and markets
20
Integrated Ag Financing Model
Ethiopia
• 44,685 direct beneficiaries
• 48% increase in income
• 32% increase in savings
Guatemala
• Scaling the model to reach
332,193 small farmers
21
Islamic-based Credit Union Model
Afghanistan
• 100,000 members
• 14 provinces
• 30 IIFCs (credit unions)
• Self-sustainable in 3 to 4 years
• 205,000 jobs created
• IIFC Group (national association)
member of World Council
22
Thank you
Questions?
23