Proprietary/Confiden0al

10Crea(veBestPrac(cestoAccelerateYourAutoLendingMarke(ng

September15,2016

© 2016 Harland Clarke. All marks are the property of their respective owners. All rights reserved.

Presenta0onmaterialsandvideoreplaywillbeprovidedwithinoneweek.Haveques0ons?Usetheques0onspanel–we’llfieldthemaswegoandduringtheQ&Arecapattheendofthecall.

Today’sSpeakers

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KrisNibleHCrea0veDirector,HarlandClarkeMarke0ngServices

●  20+yearsexperiencecrea0ngstrategic,award-winning,mul0channeldirectmarke0ngcommunica0onsforfinancialins0tu0onsandotherindustries

●  Drivesresultsformajorbrands,includinglargefinancialins0tu0ons,communitybanksandcreditunions.

●  Leadscrea0veteamthathaswonmorethan100industryawards,includingHermesAwards,DMAEchoAwards,GraphicDesignUSAAwardsandtheLondonInterna0onalAdver0singAward

StephenNikitasSeniorStrategyDirector,HarlandClarke

●  30+yearsexperienceinstrategicplanning,marke0ng,publicrela0onsandexecu0vespeechwri0ng

●  Providesconsulta0veservicestobanksandcreditunions

●  Developsmarke0ngandretailstrategiesandcampaignstogrowtargetedporWolios

Today’sAgenda

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•  Autolendingtrends

•  Crea0vechallenges

•  10crea0vebestprac0ces

•  Legalrequirements

•  Examplesandcrea0veanalysis

•  Q&A

AutoLendingTrends

4 Source:Sta0sta–2016-SalesofPassengerCarsinSelectedCountriesWorldwidefrom2005to2015–sta(sta.com

7.56

6.77

5.4 5.646.09

7.247.59 7.69 7.57

3

5

7

9

2007 2008 2009 2010 2011 2012 2013 2014 2015

NewPassengerCarSales–U.S.(inmillions)

AutoLendingTrends

5 Sources:BureauofTransporta0onSta0s0cs–U.S.DepartmentofTransporta0onandIHS/USAToday–AverageAgeofCarsonU.S.RoadsBreaksReacoard–July29,2015

10.210.3

10.410.5

10.8

11.1

11.311.4 11.4

11.5

9.5

10

10.5

11

11.5

12

2006 2007 2008 2009 2010 2011 2012 2013 20214 2015

AverageAgeofU.S.PassengerCars(inyears)

AutoFinancing

6 Source:ExperianInforma0onSolu0ons-StateoftheAutomo(veFinanceMarketFourthQuarter2015

$426

$420

$408

$412

$395

$400

$405

$410

$415

$420

$425

$430

Q42012 Q42013 Q42014 Q42015

AverageMonthlyAutoPayment

$28,381$29,551

$18,411 $18,850

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

Q42014 Q42015

AverageAmountFinanced

New Used

AutoFinancing

7 Source:ExperianInforma0onSolu0ons-StateoftheAutomo(veFinanceMarketFourthQuarter2015

13.3%

35.8%

17.6%

27.4%

6.2%

ShareOfAutoLoans

FinanceCompanies Banks CreditUnion Cap0ves BuyHerePayHere

KeyElementsofEffec(veDirectMarke(ngofAutoLendingProducts

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Strongcrea(veacceleratessuccess!

AudienceData/Targe(ng

1

Offer2

Crea(ve3

Crea(veChallenges

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Somanyop0ons—buy,lease,financing

1 Consumersstronglydislikeautopurchaseprocess

2

3

4

5

Compe00onisfierce

Consumersareshoppingaround

Legalrequirementsareonerous

Crea(veFundamentalsforAutoLendingandRefinance

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Standoutbycuhngthroughmailbox,inboxcluier

Makethelending/approvalprocessfeeleasy

Calloutcompe((verateofferthatinterruptsrateshopping

Makeiturgentwithofferenddate

Emphasizekeybenefitsandproductfeatures

Keepitreadabletokeepprospectsengaged

Leveragebrandtostrengthenvalueproposi0on

Usestrong,clearcalltoac(ontocreateurgency

Offerresponsechannelop(onsforeasyresponse

Designanddeliveryourmessageinthemostrelevant,compellingway

LegalRequirements

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Requirements●  Opt-outbox(forpre-screenedoffers)

DisclosureguidelinesfromtheFairCreditRepor(ngAct(FCRA)

Note:Pre-screenedoffersrequireboththeshortopt-outno(ceonthefrontofapieceandlongopt-outno(ceonthebackorfrontofapiece

●  Opt-outboxgraphicrequirementsare:

Shortno(ce•  Frontofthemailpiece•  Typemustbedis0nct,atleast12pointfont •  Insideaborder

Longno(ce•  Backorfrontofthemailpiece•  Mustbeginwith“Pre-screen&Opt-outNo0ce”•  Typefacemustbedis0nct,atleast12pointfont

Thismaterialisforinforma0onalpurposesonlyandshouldnotbeconstruedasfinancialorlegaladvice.Pleaseseekguidancespecifictoyourorganiza0onfromqualifiedadvisers.

Source:FCRA(FairCreditRepor0ngAct)Guidelineship://www.occ.gov/news-issuances/bulle0ns/2005/bulle0n-2005-7.html

Top10Crea(veBestPrac(ces

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Mailformats•  #10Envelope–goodforaccountholdersandprospects

•  Spaceforcer0ficateorlivecheckanddisclosureforprescreenedoffers

•  Postcard–promo0onal,awareness-raisingapproachforprospectswithnoprescreenedoffer

•  Botharecost-efficient

“Aslowas”rate•  En0cewithcompe00verates“aslowasX”

•  High-profileJohnsonBoxorsidebar

•  Calloutonenvelope

Top10Crea(veBestPrac(ces

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Prescreenedcallout•  Preselected/prequalified/preapproved

•  Makesbuyingprocesseasier

“Bonus”offers•  Delayedpayments—nopaymentfor60-90days

•  Checkmadeouttodealer—empowering!

•  Save—“RefinanceyourcurrentloanatanX%lowerrate”,savingschart

•  Cashbonusoffer–$200

•  Sweeps(freegas,freepayments)

Top10Crea(veBestPrac(ces

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Goodexperience—fast,easyapproval•  Crea0vecanmakeprocessfeeleasy

•  ApprovalinasliileasXhoursordays

Urgency•  Tieofferstospecificenddate

•  Restateenddateinleierpostscript

Top10Crea(veBestPrac(ces

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Clearcalltoac(on•  Tellaccountholderorprospectexactlyhowtoapply

•  Makeitsoundeasy

•  Maketheofferpop—explainexactlyhowtogetoffer

Easytorespond•  Dealer,branch,call,online

Top10Crea(veBestPrac(ces

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Accountholdervs.prospect•  Accountholder—posi0onas“offerforaccountholders”

•  Prospect—makemorepromo0onaltostandout

Leveragebrand•  Differen0a0ng

•  Atrustworthybrandispartofthevalueproposi0on

•  Thetrustfactorforaccountholders

Recap:MessagingHierarchy

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Elementstoremember•  Prescreened

•  AslowasXX%APR

•  Accountholderexclusiveoffer?

•  “Bonus”offerssuchasdelayedpayment,cash,etc.

•  Loweryourmonthlypayments(i.e.,refisavings)

•  Empoweraccountholderstomakeadeal(check,preselectedcer0ficate)

•  Quickandeasytoapplywithfastapproval

•  Urgencyandeasytorespond

RealEstateAlloca(onforAutoLending

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HarlandClarkeRefiGenius™ProgramMail&email

AgoodexampleofCrea0veBestPrac0ces

•  Iden0fiesyouraccountholders’creditrela0onshipswithotherfinancialins0tu0onsusingthreecreditbureaus

•  Sendspersonalizedrefinanceoffertopre-screened,creditworthyaccountholders

•  Sellscreditproducts,includingautoloan,mortgage,HELOC,homeequityloan,personalloan

•  Designedtointerruptshoppingbehaviorswithin-marketcommunica0ons

•  Crea0vebuiltonbestprac0cesforautolending

•  Applicabletoyourautolendingini0a0ve

KeyCrea(veElements—Mail

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Loweryourmonthlypayments

Pre-selected

Greatlowrate

Savingschart

ShortFormOpt-Out

KeyCrea(veElements—Mail

†PRESCREEN & OPT OUT NOTICEThis “prescreened” offer of credit is based on information in your credit report indicating that you meet certain criteria. This offer is not guaranteed if you do not continue to meet our criteria and other factors bearing on your creditworthiness (including acceptable property collateral, income and employment history). If you do not want

to receive prescreened offers of credit from this and other companies, call the consumer reporting agencies toll-free at 1-8885-OPT-OUT (1-888-567-8688); or write

TransUnion Opt Out Request, P.O. Box 505, Woodlyn, PA 19094-0505Experian Consumer OPT-OUT, P.O. Box 919, Allen, TX 75013Equifax Options, P.O. Box 740123, Atlanta, GA 30374-0123

1 We used information on you that we obtained from a consumer reporting agency in connection with this “Pre-Selected” offer. You were selected to receive this offer because you satisfied certain criteria for creditworthiness, which we previously established. The offered credit may not be extended if, after you respond to this offer, we determine that you do not meet the criteria used to select you for this offer or any other applicable criteria bearing on creditworthiness, or if you do not provide the required collateral. This offer may also be withdrawn if the value of the vehicle you are refinancing exceeds 100% of Loan-to-Value (LTV). Not all applicants will qualify for the lowest rate.

2 APR = Annual Percentage Rate. Offer based on loan term of 64 months. YourFI Name finances 100% of MSRP (new vehicles) or the NADA Retail value (used vehicles). The maximum interest rate for this offer is 11.35% APR and the minimum approved loan amount is $10,000. Refinance restrictions apply. Rates current as of August 1, 2014, and are subject to change based on market conditions and borrower eligibility. Other rates and terms available. Subject to credit review. May not be combined with other offers. Membership eligibility is required.

HarlandClarkedoesnotofferlegaladvice.Informa0oncontainedwithinthisdocumentdoesnotcons0tutelegaladvice.Pleaseconsultwithanaiorney.20

Longno(ceopt-outbox

Cer(ficatecalltoac(on/channels

Calltoac(on—enddate

P.S.refiornewloan—enddate

KeyCrea(veElements—Email

21 HarlandClarkedoesnotofferlegaladvice.Informa0oncontainedwithinthisdocumentdoesnotcons0tutelegaladvice.Pleaseconsultwithanaiorney.

Subjectline:“Save”

Pre-selected

Savingschart

Calltoac(onbuHon

FCRA-compliantdisclosures

ArizonaStateCreditUnion:AutoLoanorRefinance

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TargetMembercross-sell

Preapproved$40,000cer0ficate

Offer2.45%APRforneworusedvehicleloans

OffersweetenerThreemonthsnopayment,0.25%APRdiscount,skiptwopaymentsduringlifeofloan

UrgencyOfferenddate

FormatLeierpackage

Calltoac9onCall,goonline,takecer0ficatetobranchordealer

•  Preapprovedemphasis•  Boldratecall-outinsidebar•  Wellbranded•  Three-stepofferpresenta0on•  Preapprovedcashamountcalledoutvisually•  Canbescanned•  Enddate

Source:Comperemedia

WellDone

FamilySavingsCreditUnion:AutoLoanRefinance

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TargetMembersandprospects

PreselectedrateofferAslowas2.79%

OffersweetenerDelaypaymentfor45days

LendingpartnerRateGenius

UrgencyPromocoderequired,offerexpira0on

FormatLeierpackage

Calltoac9onApplyonline

•  Leadswithlow-rate•  Pre-qualified•  Recognizesconsumer’sgoodcredit•  Promocodewithenddate•  Posi0onsofferasexclusiveandurgent

Source:Comperemedia

WellDone

FleetFinancialAutoFinanceSolu(ons:AutoLoanRefinance

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TargetProspects

PreselectedrateofferAslowas5.80%

MessageSave$586overnext12months;skipapayment

MonthlypaymentChart

FormatLeierpackagewithurgent,officialenvelope

Calltoac9onCall,goonline,usePIN

•  Powerfulsavingsbenefitdemonstratedinchartandattopofleier

Source:Comperemedia

WellDone

MissionFederalCreditUnion:AutoLoanorRefinance

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TargetMembersandprospects

OfferMonthlypaymentsaslowas$295,notpre-screened

OffersweetenerDeferfirstpaymentupto90days;sweepstakestowinamonthlypayment

FormatLeierpackage

UrgencyEnddatewithpromocode

Calltoac9onApplyonline,call,branch

•  Strongemphasisonlowmonthlypayment

Source:Comperemedia

WellDone

Na(onwideBank:AutoLoanRefinance

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TargetCross-sellcustomerswhoalreadyhavehomeorautoinsuranceproducts

Pre-approved

RateAslowas2.25%APR

OffersweetenerNoapplica0onfees,flexibleterms

MessageTwowaystosave:refinanceandpayoffyourcarsoonerorrefinanceatalowerrateandloweryourmonthlypayments

FormatLeierpackagewithinsert

Quickandeasy

Calltoac9onGoonlineorcall

•  Strongfocusonratesavings•  Simplesavingschart•  Clearbranding“launches”Na0onwideBank•  Cleanlayoutcanbescanned

Source:Comperemedia

WellDone

VirginiaCreditUnion:AutoLoan

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TargetMembersandprospects

Getpre-approvedfast

RateAslowas1.99%APR,First-Pay-Delay

KeymessageFast,easyapproval,moveexis0ngloanfromotherprovider,seasonalSpringmessage

FormatPostcard

Calltoac9onGoonline,call,visit

•  Leadswithgreatlowrateandincludessavingschart

Source:Comperemedia

WellDone

ABCOFederalCreditUnion:AutoLoan

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TargetMembercross-sell

OfferTransferyourloanandget3%belowyourcurrentrateormore

KeymessageReduceyourmonthlypaymentbyupto$100,alsoincludesoffersforcreditcardonaddressside

FormatUsesonesideofpostcard–othersidepromotesbalancetransferofferforVisa®creditcard

UrgencyForalimited0me

Calltoac9onApplyonlineorcall

•  InexpensivewaytoshowthatABCOwillworktoloweryourcurrentautoloanrateandsaveyoumoney

Source:Comperemedia

WellDone

ChartwayFederalCreditUnion:MortgageReferral

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TargetMemberandprospects

RateAslowas1.99%

OffersweetenerNopaymentfor45days,plusentertowinfreegasforoneyear

MessageFastapproval—getananswerinasliileastwohours

FormatPostcard

UrgencyLimited0me

Calltoac9onCall,goonline

•  Aien0on-gehngandpromo0onal•  Focusesonlowrateandfreegasoffer

Source:Comperemedia

WellDone

BeyondMail:IntegratedMul(channelCampaigns

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Email•  Accountholdercross-sell•  Greatforrela0onship-basedoffers•  Piggybackontoe-newsleierstreams

Branch•  Take-ones•  Posters•  Tentcards•  Bankersheets

Web•  Onlinebankingpop-ups•  Drivetolandingpage

ATM•  Promo0onalmessagingandoffercoupons

Mobile•  Integratedpromo0onalmessaging

SocialMedia•  Challengingformanyfinancialins0tu0ons•  Buildawarenessofyourfinancialins0tu0onasac0velylending

•  Posi0veexposureforgoodcustomerexperiences

•  Blogs

Award-WinningCrea(veQuality79Awardsin2015and36Awardsin2016YTD

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Q&AWrapUp

Typeyourques(onintheques(onspanel

KrisNibleHCrea0veDirector,HarlandClarkeMarke0ngServicesStephenNikitasSeniorStrategyDirector,HarlandClarke

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harlandclarke.com/LinkedIn

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