Transcript Slide 1

Lights, Camera, Action!
We have a winner!
 Lights, Camera, Action...Win $1,500
 February-March, 2008
 24 entries submitted
 And the winner is...
Velvet Fuller
AAC Credit Union
Grand Rapids, MI
2
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?
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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?
Navigating a Storm
While Planning to be Stronger on the Other Side
 You can read, watch TV, and figure out for yourself, the national news


5
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
Navigating a Storm
While 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
CU*Answersof
willmembers
kick off the
But the effect from the perspective
and credit unions
day with
two investments
2009
might be a little different
during
this phase in
inyour
our economy
business year:
Now may be the best time to invest for the inevitable next phase
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

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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?
Responding to Stormy Skies
When 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

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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
Responding to Stormy Skies
What 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
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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
Responding to Stormy Skies
What 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

draw
a line
the sand and
credit unions are on Time
their to
side
and
stillininterested
in building a
make a big declaration...and back it up with
relationship
actions and investment
The trick will be for us to come out the other side of this crisis as a
long-term, trusted
channel
member
mortgage
Later
today,for
we’ll
talk about
how we needs
will work
at being known as one of the most
aggressive mortgage servicing networks in
the industry
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Responding to Stormy Skies
When It’s Raining, Find an Umbrella Salesman
 The pressure has been building for a long time on deceptive credit card



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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?
Responding to Stormy Skies
When It’s Raining, Find an Umbrella Salesman
 The pressure has been building for a long time on deceptive credit card



practices
CU*BASE
online
card
programs
The voice of consumer
groups
is credit
getting
louder,
and are
people are listening
growing like crazy, but let’s invest a bit more
Now a credit crisis, real or imagined, adds to the pain
If you are looking
disruptive
and their
a time
to get
Infor2009,
any CUsignals
processing
credit
cardactive, what
portfolio
more could you ask
for? 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 Skies
Everybody’s Putting Money Away For a Rainy Day
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Responding to Stormy Skies
Everybody’s Putting Money Away For a Rainy Day
 It’s always a balancing act, understanding the


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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?
Responding to Stormy Skies
Everybody’s Putting Money Away For a Rainy Day
 It’s always a balancing act, understanding the


flows between emerging
delinquencies and
CU*Answers invested more in Collections
budgeting the provision
for loan
during
2008loss,
than in the previous
actualizing charge-offs, andfive
then
taking
your
years
combined
chances with the next delinquency report
Lender*VP Collections is making a huge
It appears credit unions are doing
a good
job
difference
in why
What are you learning about collections right
With delinquency on everyone’s mind, are you
now?
planning to revamp how you see
Collections in 2009?
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Right Now, Credit Unions Stand Out
Remember It’s a Sliding Scale
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Responding to Stormy Skies
Back to Reality...It’s Not All Good News
 When it gets to the end of the month, and you have to look at your


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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
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!
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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?
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...
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http://monitor.cuanswers.com/
Marching On: 1998 to 2008
A 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
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http://cuanswers.com/client_release_summaries.php
Marching On: 1998 to 2008
A 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
Education
Since last year...
 225 classroom or individual events
 360 web conference sessions (up 12.5%)
 220 days of conversion training/support
Documentation
In the last release alone...
 150 help topics changed
 Dozen+ booklets updated
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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.
Some of Our Favorites Since Last Year
Tools 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
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Watch for upcoming web conference
training...get a perspective on these new
tools from the Xtension Call Center team!
Some of Our Favorites Since Last Year
Tools 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 Year
Tools 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 Year
Tools 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!
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Some of Our Favorites Since Last Year
Tools for the Back Office
 One-click export of financial
statements directly to Excel
Coming soon...consolidated financial
statements for multi-corp processing!
 Contingent Liability Analysis report
and data capture
Coming soon...trend analysis and new tools
to turn contingent limits into real loan
balances!
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Some of Our Favorites Since Last Year
Tools 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 Year
Tools 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 before
actually posting any dividends to
member 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
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A Report on
Jump to the Future
Invest...Execute...Earn!
Jumping to the Future
Evolving Capabilities
 Remember this from last year?
We threw down the gauntlet and
started thinking about a new
foundation for the next decade
2000
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2002
2005
2008
2011
2014
2017
Jumping to the Future
Evolving Capabilities
 Starting last year, we

began shaking up
some of the key
foundations of the
CU*Answers solution
suite
It continues on into
2009
The future
 ATM/Debit Pause
for a Cause
 “Under the hood”
 CU*BASE Platinum
 RDI ASP
 Forms
 Online banking
2008
The past
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2009
Jumping to the Future
Evolving Capabilities
 Starting last year, we

began shaking up
some of the key
foundations of the
CU*Answers solution
suite
It continues on into
2009
On the way to
the future,
things
change...
 ATM/Debit Pause
for a Cause
 “Under the hood”
 CU*BASE NGS
 eDOC ASP
 eDOC Forms
 It’s Me 247
2008
The past
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2009
The future
Jumping to the Future
Evolving Capabilities
 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 Mackay
Taken from a quote by Jim Rohn
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Jumping to the Future
ATM “Pause for a Cause”
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Jumping to the Future
ATM “Pause for a Cause”
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ATM “Pause for a Cause”
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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ATM “Pause for a Cause”
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 $$)
43
Jumping to the Future
ATM “Pause for a Cause”
 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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Jumping to the Future
ATM “Pause for a Cause”
 Best laid plans...not that much of a pause








Existing client ATM/Debit network changes
New client ATM/Debit startups
National Network Shared Branching startups
Credit card conversions
CU changes due to network switch mergers
Compromised card mass reissue
Network mandate projects (Track 2 elimination)
Miscellaneous ATM/Debit projects (Falcon Fraud)
Total projects completed in addition to PFC
2
8
6
11
7
1
4
6
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Old friends, never forgotten...
The King of EFT Processing
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Jumping to the Future
ATM “Pause for a Cause”
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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Jumping to the Future
Workin’ Under the Hood
Project
Smart Operator
Released
One CU Benefit Gained
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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Jumping to the Future
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 next
BIG change for
CU*BASE GOLD...
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Jumping to the Future
CU*BASE: The New GOLD Standard (NGS)
 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.
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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!
Jumping to the Future
CU*BASE: The New GOLD Standard (NGS)
 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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Jumping to the Future
CU*BASE: The New GOLD Standard (NGS)
 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
52
Jumping to the Future
CU*BASE: The New GOLD Standard (NGS)
NGS Rollout Events
(Final dates to be announced.)
Official Kickoff
June 18 Leadership Conf.
Preparing Your Network for NGS
Early July
 Monitor Bulk-Purchase Signup Announcement
Special Event: Preparing Your Staff for NGS
Early September
 Will include instructions about signing up for your
implementation time slot, similar to how we rolled out the
CU*NextNET project
Credit Union Project Verification period
September 1 – September 30
 Xtension/WESCO Net project to follow up to verify your
plan and key dates
Implementation Period
 This is when your staff will upgrade to LegaSuite Windows
Client 4.1 and install the first version of NGS
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October 1 – October 31
Jumping to the Future
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!
54
Jumping to the Future
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
 1,162 workstations
 370 signature pads
 389 scanners
 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
55
Jumping to the Future
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
56
Jumping to the Future
eDOC CU*SPY Project
 Today, eDOC Innovations processes e-statements and daily reports



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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
That brings us to It’s Me 247...
..a date that will live in infamy (for many of you)
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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?
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 up
with the Joneses
How do we navigate
gadgets, 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 Company
From 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
61
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
62
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
63
It’s Me 247 Online Banking
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!”
64
It’s Me 247 Online Banking
“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!
65
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


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
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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Making It’s Me 247 Online Banking a Richer
Link to Your Members
 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
67
Making It’s Me 247 Online Banking a Richer
Link to Your Members
 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
68
Making It’s Me 247 Online Banking a Richer
Link to Your Members
 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)
69
Making It’s Me 247 Online Banking a Richer
Link to Your Members
 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


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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
It’s Me 247 Online Banking
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 247!
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It’s Me 247 Online Banking
Under Development Now
 e-Notices
 Biggest money saver since
e-statements
 Will include enhancements to the
online banking message center
 Filter by message type
 Delete messages
72
It’s Me 247 Online Banking
Under Development Now
 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!
73
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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It’s Me 247 Online Banking
Under Development Now
 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!)
75
It’s Me 247 Online Banking
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
76
It’s Me 247 Online Banking
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

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
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
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?
77
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
78
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:


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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
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?
80
http://translate.google.com
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?
Look for an eDOC solution
early in 2009
81
www.deposzip.com
Where are members taking us?
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
82
Where are members taking us?
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


83
afford it
Today, an internally-developed solution
does not seem practical
What is your budget for text messaging
to your members?
www.celltrust.com
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)
84
Navigating the Possibilities
What do we use for a technology compass?

85
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
New Declarations: Our Goals
To achieve the lowest cost of going active
with innovation
To have the lowest cost in the industry
for compliance
To be known as one of the most
aggressive mortgage servicing networks
87
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

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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?
Lowest Cost of Going Active With Innovation
A Well-crafted Network
 Some early examples:
But how much further can we go?
89
Lowest Cost of Going Active With Innovation
A Well-crafted Network
 Some ideas we are continuing to work on:
Choose a peer:
Learn from a peer
Phase 1 was for your auditors with the view-only configurations on the new
MNAUDT menu; look for a growing list of visible configurations
90
Lowest Cost of Going Active With Innovation
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
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http://cuanswers.com/pdf/ppt/Passageways_PowWow_May_08.ppt
Lowest Cost of Going Active With Innovation
CU*Talent: More than a Technical Highway
 For CU*Talent to work, it will need more than a cool highway of bits

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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
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union
 CU*Answers has a rich history with using an Intranet to improve our


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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 solution
to the owners and participants of
CU*Answers
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union
CU*Answers
employees went
live on June 11
94
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union
 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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Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union
 How much will it cost on a monthly basis?
Asset Size
Monthly Maintenance
$0 - $50M
$300 per month
$50M - $200M
$450 per month
$200M +
$600 per month
 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
96
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union
 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




Help Desk Management Module
Timesheet Management Module
Assigned Tasks Module
Products and Services Module
 Consistent with other investments like this, credit unions will have
the opportunity to purchase other modules to enhance their
individual configurations
Learn more at www.passageways.com
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Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union
 Rough, big-picture vision of the calendar:
Phase 1
Phase 2
Phase 3
Phase 4
Phase 5
CU*Answers
goes live
(June 2008)
cuasterisk.com
partners go live
as ASP nodes
Credit unions go
live as ASP
nodes
SRS
Community
servers go live
(bookkeeping,
collections)
Credit unions
start to offer
services through
community
initiatives
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!)
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Lowest Cost of Going Active With Innovation
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?
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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?
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Lowest Cost In the Industry for Compliance
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
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Lowest Cost In the Industry for Compliance
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
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Lowest Cost In the Industry for Compliance
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!)
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Lowest Cost In the Industry for Compliance
Audit Link Up and Running
 Developed new business plan and rolled initiative to client base in

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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
Lowest Cost In the Industry for Compliance
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...
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Lowest Cost In the Industry for Compliance
The Future of CU*BASE BSA Tools
Interactive


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
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Daily Analysis/Monitoring

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
Lowest Cost In the Industry for Compliance
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
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Lowest Cost In the Industry for Compliance
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


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
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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
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?
109
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
110
An Aggressive Mortgage Servicing Network
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...
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An Aggressive Mortgage Servicing Network
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
112
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...





113
“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
Lender*VP: A Foundation for Lending
In the first 120 Days of 2008 (Jan.-Apr.):









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

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
 2 clients first 120 days
 817 total applications
Lender on the Road
 15 CUs
114

Collections - 2 1/2 staff
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
Lender*VP: A Foundation for Lending
 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)
An Average Month
CU Loan Applications
Booked
19,836
Applications
3,263
Denied
6,117
Online Banking Apps
115
Booked
835
Applications
523
Denied
970
Student Lending
Lender*VP Working With National Partners
 CU*Answers is one of the many vendors that are part


116
of 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 for
more information and a
compelling argument on
why you should get
involved
http://www.studentchoice.org/media/doc/CUStudentChoiceIntro.pdf
Declaring Some New
Directions In Software
Interesting Specs to Highlight
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...
118
Speaking of shared businesses...
 It looks like payday lending will be one of the hottest collaborative
efforts in 2009
www.myprospera.com
119
“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
120
“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

121
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
“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
122
“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
123
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
124
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...)
125
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
The Power of the Network
Selling a New Credit Union Future
127
The Power of the Network
Selling a New Credit Union Future
128
www.cuasterisk.com
The Spirit of a Network
De 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
129
The Spirit of a Network
Scholarships
 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?
130
The Power of the Network
Living 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...
131
The Power of the Network
Building the Business, One Partner at a Time
 Today, we are a network of


132
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
The Power of the Network
CU*BASE As the Common Factor
142 Credit Unions
in 18 States
# of CUs by State
12
1
1
1
78
16
6
1
4
7
3
2
1
1
1
3
1
1
2
133
Processing on CU*BASE as of June 2008
The Power of the Network
CU*BASE As the Common Factor
# of Members by State
WI
OH
IN
MI
SD
NY
OR
WA
CU*BASE Credit Unions: 142
Total Members: 1,049,800
CT
TX
ME
FL
AL
IL
KY
MN
134
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)
Processing on CU*BASE as of June 2008
Your New Partners:
New Clients Since Last Year’s Meeting
Michigan







Clawson Community CU
(Clawson, MI)
Chiropractic FCU
Wisconsin


(Farmington, MI)
Detroit Municipal CU
(Detroit, MI)
Iosco Community CU
(Oscoda, MI)
Great Lakes Members CU
Glacier Hills CU
Federated Family CU
South Dakota
CR Community
First CU – Startup
(Eagle Butte, SD)
(Dearborn, MI)
Kensington Valley CCU
(Highland, MI)
United Educational CU
(Battle Creek, MI)
Including mergers, over 96,000 new
members added since last year
135

(West Bend, WI)
(Milwaukee, WI)

Ohio
New Horizons CU
(Cincinnati, OH)
Florida

Sarasota Municipal ECU
(Sarasota, FL)
Your New Partners:
New Clients Coming Soon
Michigan

Community West CU

Lake Huron CU
(Kentwood, MI) – July 2008
(Saginaw, MI) – Jan. 2009
Wisconsin

Firefighters CU

Superior Choice CU

(LaCrosse, WI) – July 2008
(Superior, WI) – Oct. 2008
Self Processor
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
Heartland CU
(Madison, WI) – April 2009
Including mergers and other pending
contracts, 23 new clients and over 160,000
members are in the pipeline
136
Ohio


Franklin County CU
(Columbus, OH) – Sept. 2008
...plus 14 other pending
conversions and
mergers already being
scheduled through
mid-2009!
The Power of the Network
A Network of Owners
87 Owners
in 16 States
8
56
1
1
8
1
3
3
3
1
Percent of
Total CUs:
61.2%
1
1
137
The Power of the Network
When Local Makes Sense










138
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
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
139
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
140
The Power of the Network
Check 21 as the Common Factor
141
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
142
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
143
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:
SRS Bookkeeping
Xtension
Member Reach
Audit Link
Mortgage
Servicing
Xtend Shared
Branching
cuasterisk.com
144
Lender*VP
Shared Execution
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
145
Shared Execution
What’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
Member Reach
Xtension
Audit Link
Mortgage
Servicing
Xtend Shared
Branching
146
Lender*VP
Shared Execution
What’s Next?
 How far down into the stack will credit
Marketplace
Products and Services
Resources
Teams
Senior Team
CEO
Board of Directors
Membership
147
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?
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?
Shared Execution
What’s Next?
148
CU*ByDesign
A 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
149
Shared Execution
CU*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,
“I LOVE partnering with you to
drive-up/lobby handouts
provide this awesome marketing
service to us. It makes my life so
 Participants are reporting increased focus and
much easier... I’m sure this will
results, and are building their memberships!
have a positive impact on our
150
product penetration. Thank you!
- Brenda S. Lippens, President/CEO,
Delta County CU
Shared Execution
CU*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
“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
151
“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!
Shared Execution
Partners 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!
152
http://marketing.cuanswers.com
The Power of the Network
All 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 pushing
more and more information your way
153
Randy’s Top Ten
Top Goals for Your Teams in the Coming Year
Using CU*Answers Tools You Already Have
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
9
Investigate 5 processes that you could improve or evolve in 2009 without buying something
10
155
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
1
Commit
to #25
having
more
e-statement
members
than online
members
MNMRKT
Tiered
Services
Monthly
Comparison
– trackbanking
to attack
2
Coming to
soon...
e-Notices
Commit
cutting
your notice postage in half by year-end 2009
3
Spend
day with Geoff
Johnson
and understand
what amortgage
partner Lender*VP
can be
Exit
theamortgage
crisis as
a stronger,
more competent
lender
4
Figure
out student
lending
– today’s
need
for needs
the next
generation
Query your
Household
Database
andbig
link
family
with
your opportunities
5
Plan in 2009
build and
an Intranet
with
Passageways
andtalents
CU*Answers
Inventory
yourtotalent
know the
difference
between
and job descriptions
6
MNMGMA
(my
current
favorite:
Mbrs)
Find
5 new#1-23
ways to
prove
to your
Board#17
thatOpen/Active/Closed
you know your members
7
Take ainlong
look
at the e-commerce
fee and figure
out what
it means
to you
Invest
your
advantages
and communicate
your value
every
single day
8
Create
a digital
vault
why marketing
members should
select
youtipand
your services
Use Talking
Points
forfor
every
and cross
sales
included
in CU*BASE
9
http://www.cuanswers.com/client_release_summaries.php
Investigate
5 processes that you could improve or evolve in 2009 without buying something
10
156
Review last year’s Top Ten and see what you put into action (be tough on yourself!)
What’s On Your Mind?
Debating with Randy...
will it be Dr. Jekyll or Mr. Hyde?
158
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
Idea Forms
A Conversation Between Users and Developers
I never would have guessed how hard it is to
compose 50 words about an idea
159
Blogging with cuasterisk.com
A Conversation Amongst Peers
 Keeping up with the
conversations...a simple click
checks on which conversations
are active and need your attention
news.cuanswers.com
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Multi-media Education
Removing Roadblocks to Participation
 In 2009, CU*Answers will introduce a new website that allows users
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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
Recognizing Your Participation in Education
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Top 5 Web Conference Attendees
(June 07 – May 08)
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Top 5 Online Learning Users
(June 07 – May 08)
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1. Ohio Catholic
2. Affinity Group
3. Alpena Alcona Area
4. Detroit Municipal
5. Aeroquip
1. Detroit Municipal
2. United Educational
3. Glacier Hills
4. New Horizons
5. Iosco
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Top 5 AnswerBook Users
(June 07 – May 08)
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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)
Pass It On
http://cuanswers.com/lc2k8/
 The Leadership Conference
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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
Lights, Camera, Action!
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Some final thoughts...
What are we going to do tomorrow?
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