2004 cu*base annual leadership conference · defend our niche and motivate clients and members to...
TRANSCRIPT
2004 CU*BASE Annual Leadership Conference
June 23, 2004
Welcome!
2
A Quick Decade:CU*Answers Aged 25 to 35
3
A Quick Decade:“Where Have All the CUs Gone?”
National CUs Michigan CUs
Peer Group 1994 2004 1994 2004
Over $1 Billion 16 88 1 3
$250 Million - $1 Billion 168 420 8 20
$100 Million - $250 Million 401 661 19 46
$50 Million - $100 Million 569 809 37 79
$20 Million - $50 Million 1,403 1,558 118 86
Under $20 Million 9,762 5,952 352 194
Total 12,319 9,488 535 428
4
A Quick Decade:Anchored by Our Partners
Survival
Forced retooling
Re-earn our owners’ confidence
Month-to-month horizon
Nowhere to go but up
Saved by ownership’s will
Survival
Constant evolution
Promote our owners’ confidence to general marketplace
2 to 3-year horizon
North, east, west or south
Led by our ownership’s will
5
2005 – 2015: It Will Be Tougher
For our industry to survive, we must all adhere to the concept of timely solutions based on timeless principlesAs we approach the next 10 years, it will become harder for this CUSO, and for CUs in general, to defend our niche and motivate clients and members to see the value in the credit union wayCommitment, creativity, vision, and an intensity about partnership and new solutions will have to rule the day
6
Today’s Agenda
Selling the Power of OwnershipAre We a Partnership for Business Process Design? Redesign?The Year in ReviewSoftware Development Report
New Tools in Your ToolboxThemes for Software DevelopmentWhat’s Next?
CU*Answers PartnershipsHardware and CU Networks
Selling the Power of Ownership
Credit Unions and CU*Answers: We’re In the Same Boat
With the Same Challenges, Serving the Same Members
8
Selling the Power of Ownership
Excerpt from “Selling the Power of Ownership” article:“This might be the biggest problem in the credit union business today. Financial service consumers cannot differentiate the ownership dividend paid to credit union members from the services they receive from non-credit union providers. Is there any power in owning a credit union? Is there any return in ownership? What does the word “owner” mean if you don’t have stock or receive stock dividends?”
9
Selling the Power of Ownership
10
Selling the Power of Ownership
11
Selling the Power of Ownership:
What Can We Do?
Excerpt from 2004 CU*Answers Board Planning Session:“We can be over the top . . . We can use technology and every member communication to reinforce the value of ownership. Our firm can give ideas to our credit unions and to the industry that show up in member transactions, member contact points, member communications, and if we use our cooperative marketing budget they will show up in the media.”
Rewarding Savers and Borrowers as Credit Union OwnersRewarding Transactors as Credit Union OwnersThe Ownership VoiceThe Power to Lead
12
Selling the Power of Ownership:
Rewarding Savers/Borrowers
Are you paying your savers and borrowers the ownership difference?
TBA CU has paid Jim Vilker $75 in 2004 for being a borrowing member
13
Selling the Power of Ownership:
Rewarding Savers/Borrowers
What if you were bold enough to make a statement that your ownership difference was 3% of every dollar paid to the member?So instead of paying $10 dividend, you paid a $9.70 dividend and a $0.30 ownership dividend every month
TranDate Amount (n/a)
CurrentBalance
TransactionDescription
TransferAccount
ID
3/31/04 9.70 4,577.24 SHARE DIVIDEND OP3/31/04 .30 4,577.54 OWNERSHIP DIVIDEND OP
14
Selling the Power of Ownership:
Rewarding Transactors
What if you paid members when they acted like an owner and saved the credit union money through their actions?Transfer expenses from customers to benefits for owners
15
Selling the Power of Ownership:
Rewarding Transactors
Collaborative Marketing Contest (Apr. 2004): We Pay Owners for E-Statements
14 CUs participated116,545 inserts mailed7 web links
300% average increase in new enrollments (comparing Feb-Mar to Apr-May periods)1,266 enrollments (estimated savings: $11,394 in one year)
16
The Ownership Voice
Do you advertise the owner’s voice? What kind of surveys, focus groups, and other “voice of the member” tools do you use?Would you use a survey/secret shopper service if offered by Xtend/CU*Answers?
Through home banking / audio response?Through mailings?Through personal contact?
How do you define “the owner’s voice”?Do you listen, do you hear, do you act, and do you learn from what your owners have to say?
Member Reach: a 2005 service?
17
The Ownership Voice:
Making it Work at CU*Answers
CU*Answers projects in 2004:Pricing Focus Group“Know Your Member” Focus GroupOpen Suggestion Box / Idea FormOne Step AheadFace-to-Face – education and web conferencingBuilding Loan Channels focus group
18
The Ownership Voice:
2004 Pricing Focus Group
Ron BudzinskiLa-Porter FCUChris ButlerCommunity CUJeanna EckhardtMichigan Coastal CUShawn HansonAdvantage CUGlenn KretchmerATL CUBob MackayBerrien Teachers CU
Dave OhmanFiler CUJoni ShinnService 1 FCURay WardKent County CUDave WrightServices Center FCUJohn YeomansTBA CU
19
The Ownership Voice:
2004 Pricing Focus Group
2004 Pricing Guide
Comparative Pricing AnalysisOur ASP pricing is competitiveOur base member pricing is competitiveOur in-house pricing is competitiveOur a la carte pricing is a competitive advantage
Also available upon request: The CU*Answers Pricing Model: A Historical Perspective 1999-2004
20
The Ownership Voice:
2004 Pricing Focus Group
0
10
20
30
40
50
60
70
80
Relationship (Complexity/Asset Size)
% S
avin
gs
Understanding Value vs. Price
Price
Ownership DividendOwnership Dividend
Participation
21
The Ownership Voice:
2004 Pricing Focus Group
Goal was to respond to the expense pressures added by home banking services
Are these commodities?What is over service?How can we control costs?How do we expand value?Can CUs make expense trade-offs?
What is the long-term outlook for CU*@HOME?
www.gonzobanker.com
22
The Ownership Voice:
2004 Pricing Focus Group
Tailoring CU*@HOME service levels, one credit union at a time
Testing in July and AugustCU control included in 2004 Fall release
Login & menus 2 and 3 minutesTransactions & settings5 and 6 minutesResearch & forms 20 minutes (no change)Sales & related links3 minutes
23
The Ownership Voice:
The “Open Suggestion Box”
Jun ‘03-May ‘04: 23,667 calls in to Client ServicesOf those calls, 6% become project sheets targeted at program modifications and development
Avg. 78% of all projects come from client requests and suggestions
Remaining 22% generated by sales interaction, and CU*Answers leadership interpretation of the market
916 projects completed and moved into productionSaw substantial increase in the use of the Idea Form
24
The Ownership Voice:
One Step Ahead
Actively calling about CU opinions and feedbackAverage call lasts about 20 minutes
5 campaigns since last year:Month Theme Calls MadeJune/July ’03 2003 Spring Release 78August ’03 CU*Answers education offerings 85November ’03 2003 Fall Release 87February ’04 ACH enhancements 75Ongoing AnswerBook 90
25
The Ownership Voice:
Face-to-Face
July 2003 – June 2004Classroom sessions: 124 events; 1,085 participantsRegional training: 5 events; 284 participantsIndividual requests: 64 events
Next year we will also have stats on online courses
26
The Ownership Voice:
Changing How We Interact
Web conferencesStarted with October 2003 release training28 web conference events held since then
(Callahan & Associates has done 50+ Webinars in the past year, averaging 60+ attendees each, at an average price of $199 each)
The evolution: Hold separate sessions for “live” training and web conferencing
27
Selling the Power of Ownership:
The Power to Lead
An inherent right of ownership is the ability to participate in the leadership and direction of the firm you ownDo you still sell the fact that you need your members to help buildyour organization?Is your Board an asset?
28
Selling the Power of Ownership:
The Power to Lead
Are you using your web site as an opportunity to tell the community and your owners about what it means to own the credit union and participate as a leader?
Election rulesBoard member handbookLeadership calendar
29
Selling the Power of Ownership:
The Power to Lead
CU*Answers would like to participate in your leadership eventsWhether as facilitator, or featured speaker, or quiet participant – we want to hear about your future
Recent Board planning sessions:
Kent County CUService 1 FCUTBA CUDelta County CUForest Area CU
Are We a Partnership for Business Process Design? Redesign?
Building a CUSO for Execution in a Networked World
31
Are We a Partnership for Business Process Design? Redesign?
At its 2004 Board Planning Session, CU*Answers emphasized the need for our partnership to extend its focus further into the futureTo accelerate our momentum by engaging the collective power of credit union CEOs and senior leadersTo ensure that weare focused on business process as intently as we areon daily tasks
32
Are We a Partnership for Business Process Design? Redesign?
How?By anticipating the changes to business process that build member demand
Building Loan Channels focus group
By measuring network activity and setting goals for our collective input and outputBy designing systems that allow us to measure and benchmark input and output
LobbyLook and AnswerBook
By giving all credit unions better insight into our collective efforts and projects
Monitor
33
Anticipating Changes that Build Member Demand
Building Loan Channels focus group Kickoff meeting on June 9; 28 attendees (23 CUs)Goals:
Set 2005 development agenda for loan productsBroaden CU*BASE/CU*@HOME Internet lending capabilitiesExpand third-party lendingoutlets
Next delivery: October 2004 – Specs forInternet lending changes sent out for comment
34
Does Technology Enable Business Process or Define It?
The most telling moment in the Focus Group meeting was when we learned that many CUs were allowing the tools to dictate the process......increasing the time, and ultimately, the expense of every loan by not tailoring the way the toolwas used to the loan product, the member need, or the lending opportunity
35
Measuring Network Activity
Measuring network activity to learn more about individual CUs
Developing and publishing CU and network activity scorecardsTransactions, lending, etc.
36
Understanding Network Activity
AnswerBookIntroduced to staff August 3, 2003Rolled out to clients October 1, 2003
Approx. 2,000 new incoming help desk items per month
Oct. ‘03 May ‘04 % IncreaseKnowledge base items 134 794 203%Knowledge base searches 636 1,031 62%
“This is a good tool to get the answers we need.” – Ilene, City Employees CU
“I like not having to call to get my answer.” –Jody, Onaway CU
“I like this method of electronically sending my ideas.”– Steve, Brewery CU
“Awesome!” –Debbie, County-City CU
37
Understanding Network Activity
An AnswerBook for your credit union membersUnderstanding the questions 700,000 people ask of 100 credit unions (can we do this?)Financial opportunity –discounts starting at50% of annual cost
Kickoff meetingweek of August 9, 2004
www.cuquestions.com
38
Understanding Network Activity
AnswerBook discounted pricing
Asset Size Setup Fee Year 1 Year 2 Year 3$0 - $10 million $525 $83 $124 $165$10 - 25 million $525 $130 $195 $260$25 - $50 million $525 $175 $263 $350$50 - $100 million $525 $325 $488 $650$100 - $150 million $525 $540 $810 $1,080$150 - $200 million $525 $595 $893 $1,190$200 - $250 million $525 $650 $975 $1,300$250 - $300 million $525 $705 $1,058 $1,410$300 - $350 million $525 $760 $1,140 $1,520$350 - $400 million $525 $815 $1,223 $1,630$400 - $450 million $525 $870 $1,305 $1,740$450 - $500 million $525 $925 $1,388 $1,850
Monthly Fee
Pricing valid for orders placed by December 31, 2004.
39
Insights Into Network Projects
Announcing Project MonitorAn Internet-based CU*Answers project tracking systemWill email alerts as projects move through development teamsA shared view of what thenetwork is working on
Do you understand theCU*Answers SDLC?
Monitor is for projectmanagement, not an outstanding “wish list”
http://monitor.cuanswers.com
The Year in Review
New Clients and Sales Activity
41
CU*BASE Credit Unions: 92
14 States
2
24
Self-Processing CUs
All CUs currently under contract
1
1
9
1
61
2
4
1
On-Line CUs
1
11
2
42
CU*Answers Owners: 65
Percent of Total CUs:
70%
2
13
Self-Processing CUs
12 States
All CUs currently under contract
1
1
1
444
4
1
On-Line CUs
1
2 1
43
# of Members by StateCU*BASE Credit Unions
Michigan (367,300)Wisconsin (148,800)New Mexico (39,300)New York (30,400)Indiana (22,200)Texas (22,100)Connecticut (19,500)Florida (11,300)Illinois (7,400)South Dakota (7,200)Ohio (6,700)Washington (1,200)Minnesota (900)
NY
TX
IN
CT
FLI L
SD
NM
All CUs currently under contract
WAOH
WI
MI
CU*BASE Credit Unions: 92Total Members: 684,300
44
# of Members by StateCU*Answers Owners
Michigan (301,900)
Wisconsin (111,900)
New Mexico (39,300)
New York (30,400)
Indiana (22,200)
Texas (22,100)
Connecticut (19,500)
Florida (11,300)
Ohio (6,700)
Illinois (5,800)
South Dakota (5,600)
NM
NY
TX
CT
FL
I LSD
All CUs currently under contract
CU*Answers Owners: 65Owner Members: 576,900% of Total: 84.3%
IN
WI
CU*BASE Credit Unions: 92Total Members: 684,300
MI
OH
45
CU*BASE Conversions
July 2003 through June 2004
Since Last Year’s MeetingNew On-Line Clients
Consumers Federal CU(Brooklyn, NY)
AAA Federal CU(South Bend, IN)
Premier Financial CU(Clinton Township, MI)
Rogue River Community CU(Sparta, MI)
GR Consumers CU(Wyoming, MI)
Hardin Community FCU(Kenton, OH)
Isabella Community CU(Mt. Pleasant, MI)
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
46
Since Last Year’s MeetingOn-Line Mergers
Westshore CU into Muskegon Co-Op CU(Muskegon, MI)
Center Valley CU into Fox Communities CU (Appleton, WI)
Coming Yet This YearNew On-Line Clients
(September) Alpena County Medical CU (Alpena, MI)
CU*BASE Conversions
July 2003 through June 2004
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
47
Coming Yet This YearMergers
(July) Osceola Community CU into West Michigan CU(Grand Rapids, MI)
(July) Winnebago CU into Fox Communities CU(Appleton, WI)
(July) Twin Cities CU into Berrien Teachers CU (St. Joseph, MI)
(August) 1st Security CU into Fox Communities CU(Appleton, WI)
CU*BASE Conversions
July 2003 through June 2004
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
48
CU*BASE Conversions
2005 Fiscal YearNew On-Line Clients
(January) Allegan Community FCU(Allegan, MI)
(February) Besser CU(Alpena, MI)
(March) Alpena-Alcona Area CU(Alpena, MI)
(June) SECU(Saginaw, MI)
July 2003 through June 2004
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
New Tools In Your Toolbox
What plans can you develop for 2005 based on new tools released in 2004 and
already part of your day-to-day workplace?
50
New Tools In Your Toolbox
During the first CU*Answers University “CEO Strategies Week” in May, we talked about how to write business plans that include improving CU capabilities without additional expenseWhat are the top 10 toolsyou plan to use from the 2003-2004 developmentyear?
51
New Tools In Your Toolbox:2003-2004 Development
Success of “Knowing Your Members” toolsStatistical Productivity toolsfor teller and cash activityExtending credit-based decisions (pre-approvals)
52
New Tools In Your Toolbox:2003-2004 Development
Tiered Services27 CUs currently configured
17 scoring and rewarding10 scoring without rewardsSince July 2003, have met with 13 CUs to get startedProgram names: VIP Rewards . . . Member Rewards. . . Star System Pricing . . . Gold Star
Basic50%A
27%
B14%
C9%
Basic55%A
24%
B12%
C9%
Avg. Members/TierHousehold Scoring Method
Avg. Members/TierMember Scoring Method
9 CUs 8 CUs
53
New Tools In Your Toolbox:2003-2004 Development
Making GOLD fun for employeesPersonalizing navigationPrompt for auto-securitySelecting your teller interfaceSelecting your aesthetic experience
What’s next?What issues?At what cost?
54
New Tools In Your Toolbox:2003-2004 Development
BrandingAt last year’s conference, Dave Ohman asked, “why brand?”When the price was right, credit unions stepped up:
GOLD branded: 31CU*@HOME branded: 20
What’s next?What issues?At what cost?
55
New Tools In Your Toolbox:2003-2004 Development
New look and feel for Teller Processing Quicker learning curvefor new clients“Mousers” vs.“keyboarders”Only see what you need, when you need itGOLD user interfaceas a software development tool
56
New Tools In Your Toolbox:2003-2004 Development
Stop Pay enhancementsNon-monetary records – “messages” to members“Suspect” stop pay processing
Loan Insurance and amortization enhancementsComplete rewrite of amortization programsNew insurance program configuration optionsImproved insurance calculation and posting processes
Still holding out for a new and improved Loan Quoter!
57
New Tools In Your Toolbox:2003-2004 Development
CU*@HOME Transaction sorting and filteringRelated linksURLs for sales info
Infrastructure.NETNew teamDocumentedInner workings
Themes for CU*Answers Software Development
Thinking about strategies that need tools to improve the “big picture” in credit
unionsLittle projects can change the way big
thinkers see the world
59
Themes for Software Development:
Focusing on Internal Auditors
In 2005, CU*Answers will focus on getting both internal and external auditors more involved with the day-to-day workings of CU*BASE and CU*@HOME
Continuing to improve Member Account AdjustmentsCoded Account AdjustmentsNew Wire Transfers systemMail/Direct posting codes
CU*Answers “Employee 89” Security Tracking access for each individual CU*Answers employeeReporting for CU auditors
2005 Focus Group: Where’s the input?
60
Themes for Software Development:
Focusing on Internal Auditors
It has to be more than reports—what do internal auditors need as tools to interact with data?
Dormancy processing improvementsUnderstanding the total costMore interactiveImproved options for monitoring
Bank Secrecy verification inquiryInteractive, online; allows for samplingVerification checklist
What does it mean to put your auditors on line?
61
Themes for Software Development:
Documenting the Back Office
Documenting G/L and back office activityConfigurable purpose text –“What do we use this G/L account for?”Configurable procedures text –“How do we reconcile this G/L account?”Configurable comments –“How did we fix an out-of-balance condition?”Configuring A/P comments –“Why do we do business with this vendor?”
Communicating key information about accounting is just as important as the numbers
62
Themes for Software Development:
Documenting the Back Office
Consider the need for CUs to outsource and share resourcesIs your back office interactively documented in a way that you can communicate with CU*Answers? With potential partners? With temporary employees? Or even with your management team and board?
What else can we do in 2005 to make sure you are ready to get creative in these areas?
63
Themes for Software Development:
Making Pricing a Strength
Understanding pricing and making that a CU*Answers strengthCU*Answers has always led the way with configurable pricing options, relationship waivers, and the ability to collect income
In 2003 we released the Fee Waiver Information fileIn 2005 we want to perfect the art of understanding when and why we charge member fees, and what is the consequence of when we don’t
Artful pricing can be the difference between a winning ROI and a lagging one – it can be the difference between the CU
philosophy and appearing to be a bank
64
Themes for Software Development:
CU*BASE at the Center of Meetings
CU*BASE has a DB2 database and full Query capabilities, and CUs are becoming more adept at database analysis and reporting“We know the information is there. Just give it to us! Don’t make us work so hard to find the answers we’re looking for.” - Chris Butler
Software Development: What’s Next?
New Tools for 2004 and 2005
66
Online Credit Cards
Configured as a CU*BASE loan category (new Process Type “V”)
Separate “buckets for purchases, cash advances, and balance transfers; up to 999 configurable rates per bucket
Online card configuration, maintenance and orderingIncorporated into CU*BASE account inquiry and Phonesoftware
67
Member Service Rewrite(2004-2006)
Opening MembershipsBreaking down input screens into multiple steps Conditional fields based on CU workflow management configIncorporated into the flow based on CU config:
Household enrollmentRequest credit reportPersonal banker preferences (e-statements, bill pay, ARU/home banking)OFAC and fraud scans
Opening New Accounts No more entering the account number over and over!Ability to pull credit report based on DIVAPLIncorporated into the flow:
ODP configPrinting starter checks
68
Member Service Rewrite(2004-2006)
Tracking Joint Owners and BeneficiariesUnlimited joint owners for all sub-accounts (savings, checking, certificates)All joint owners tracked by SSN like the existing membership joint owners systemSeparate beneficiary (POD) tracking system for all sub-accounts
69
Member Service Rewrite(2004-2006)
MiscellaneousSecondary member name (DBA) Expansion of email field to 120 characters; new fields for “other” email addressesCU-defined Membership Designation labeling system
Controls field labels on inquiry and update screens
70
ANR (Courtesy Pay) Processing
CU*BASE: 24 clients using ANR processing or getting started soon (29% of all clients)
Current # of CU members with a negative balance limit: 82,956 (average limit: $575)Majority are using the automated activation/deactivation features
CU*Check Item Processing:58 out of 73 item processing clients saw reductions in return volume: ranging from -55% to -1% (2003 to 2004)13 of these saw more than a -25% reduction64 out of 73 IP clients saw a reduction in check volume during the same period
71
Xtend Courtesy PayPowered by CU*BASE ANR Processing
18 CU*Answers CUs currently under contractMarketing supportOn-site management consultationTrainingCompliance servicesCollection management assistance
ResultsLa-Porter FCU: Implemented Aug. ’03 - averaging 80% NSF increaseSangamon Schools CU:55% NSF improvement the first month AAC Credit Union:38% NSF improvement the first month, 58% the second month
72
Continuing to Develop ANR
Check processing statistics and verification toolsNew statistics file and inquiry for CU analysis
Income analysisVolume analysis
Improvements to negative balance collectionsConsidering integration with Households and Tiered Services
73
New E-StatementsPowered by CU*@HOME
Scheduled for release in September Marketing materials to CUs for September statementsMake this a highlight of your CU*@HOME marketing efforts during the 4th
quarter
XML document format XML document format expands the member’s optionsexpands the member’s options
74
New E-StatementsPowered by CU*@HOME
Download a commaDownload a comma--delimited delimited (CSV) file format to MS Excel(CSV) file format to MS Excel
Reconcile checking Reconcile checking accounts on line! accounts on line!
75
CU*@HOME Continued Development
Member management of AFTs (Fall 2004)Internet lending (specifications by Oct. 1)
External rate boards Non-member lendingMember lending outside of CU*@HOMEInternet lending using auto decisions
Carryover from 2003E-alertsE-noticesA partnership with the CU*BASE tickler system
76
Account Naming
New program to allow CU employees to enter a member-defined account suffix name
Auto Loan Dad’s Truck3-Mo Certificate Bill’s College
Inquiry/Phone/Teller toggle between default suffix name and member-defined account nameChanges to display the member-defined name instead of the standard name on:
ReceiptsStatementsCU*@HOME
Beta test by 12/31/04
77
Projected for Fall Release 2004
AFT maintenance via CU*@HOMECU*EasyPay! UpgradeE-statements upgrade (XML)CU*@HOME timeout value configurationCheck processing statsHome banking info window in teller/phone/InquiryNotices for balloon and single-pay maturity loans
Account adjustment enhancementsWire transfersMail/direct post codesTiered Service points enhancement for ANR G/L account description lookup and purpose/ procedures tipsFinancial statement review enhancements
CU*Answers Partnerships and Cooperative Efforts
CU*Answers is technology tools and people focused on execution Cooperating to be more than
just a data processor
79
Collaborative Marketing
Contest 3 (July ‘03): E-Statement Enrollment
26 CUs participated297,500 inserts mailed16 web links
Winner: Judy MacInness, member of Auto-Owners Associates CU, Lansing, MI
Contest 4 (Dec. ‘03): CU*EasyPay! Enrollment
25 CUs participated184,550 inserts mailed15 web links
Winner: Lauren Thompson, member of Ottawa County Schools ECU, Grand Haven, MI
80
Collaborative Marketing
Next Campaign: CU Membership/Ownership Awareness
To raise awareness among members of the value of ownership Inserts & other materials available starting with July ’04 statement run (available as standard item from then on)
81
CU*EasyPay!A Winning Cooperative Effort
As of May 2004:5,336 network subscribers (up 27% since 12/31/03)38 credit unions and growingTotal invoice from CheckFree: $23,714Member bills paid daily: $250,000 average (has spiked to half a million dollars!)
As of January 2004:Over 17,000 payments processed per month1,000 bills presented per monthElectronic payment ratio: 68%Claims ratio: 0.6%
82
CU*EasyPay!A Winning Cooperative Effort
CheckFree at a glance:Processing 50 million bill pay transactions per monthElectronic pay ratio: 78%Claims rate: <0.2%Over 6 million e-bills distributed per month300 e-billers (retailers) in production todayMore than 12 million subscribersContinuing to be profitableStill #1 in the electronic bill payment space
Be sure to visit with Carol Moore in the Vendor Exhibit area
83
CU*EasyPay! Upgrade
Upgrading to CheckFree “WebPay 3.2.3” Enhanced ability to activate e-bills (bill presentment)
Optional email notification when an e-bill arrives (direct link to log in to CU*@HOME)Expanded list of e-billersNew “Auto Pay” - automatically pay an e-bill (in full or up to a set amount)
Payment screen “look and feel”Make a single payment, make multiple payments or set up for auto payment
Beta Sept. 2004; all CUs by Jan.
Check with Jim Vilker about your conversion date
84
Xtend Shared Branching
Very successful focus group effortNext on the focus group agenda: Automated settlement
41 CUs signed up (out of 50 total CU*BASE shared branching CUs)
Alpena area will have 6-7 new credit unions in 2005
“Go live” date is July 1, 2004Over 200K inserts already ordered for first mailing
How will you market shared branching in 2005? Take advantage of this cooperative effort
85
You asked us to start combining the concepts of doing a job at the CU with the “how to” for the tools you use
Internal goals to train our staff External goals to help CUs teach their staff“Just In Time” education
We looked for a partner with a wealth of CU and financial service education content and expertise
Trusted and valued partner so CUs can develop independent strategies with MyDAS in addition to the CU*Answers shared solution
A New Education Partner
www.mydas.com
86
CU*Answers University Online CampusGeneral financial service and “soft” skills contentInteractive and multi-sensory (audio, video, text); includes testing and tracking of student participationMini-modules available directly from GOLD screens, or full courses via www.cuanswers.com
A New Education Partner
87
CU*Answers University
Teller SchoolFinancial Service OrientationNegotiable InstrumentsCash & Cash HandlingSecurity & Loss PreventionInternal & External Relations
Telephone SchoolBasic SkillsTelephone RapportPersonality BehaviorsSales RulesService Standards
Product KnowledgeSavings productsLoan productsConvenience products
Loan Officer SchoolLoan Officer TrainingCredit & Lending BasicsThe InterviewBehavior Skills & TechniquesApproval-Denial Process
CU DifferenceRoots of the CU Movement, Definitions & Terminology, etc.
Schools available in the CU*Answers campus:
88
CU*Answers University
Online Campus Rollout ScheduleJune 28 – introduce CU*Answers staff to the full campusSeptember 13 –
Add links in GOLD to just-in-time education(“mini-modules”)Introduce CU*University campus for CUsRelease updated CU*BASEonline courses
1st Qtr 2005 – custom CU campuses available
89
CU*Answers University Next Phase:Custom Credit Union Campuses
Business DevelopmentBusiness ServicesCore Competency AssessmentCollections SchoolCommunity Relations SchoolCompliance SchoolComputer Basics SchoolCU DifferenceDiversity SchoolFinancial Education SchoolFraudGenerational Differences SchoolHarassment Prevention School
HELOC SchoolIRA SchoolLeadership SchoolLoan Officer SchoolMortgage Lending SchoolMySTERY ShoppingNew Employee OrientationProduct KnowledgeSales and Service SchoolTelephone SchoolTeller SchoolTotal Quality ManagementVolunteer School
Choose from over 185 courses in these schools:
90
Goals from the MyDASPartnership
Enhanced internal training for CU*Answers staffGain better understanding of day-to-day CU employee experienceAssist CU*Answers education developers in making classes more relevant for CU employeesIntroduce CUs and their employees to automated education campuses (tracking, certification, etc.)Introduce a new and trusted partner, MyDAS, to credit unions (preferred pricing, etc.)
91
Primary Payment Systems
IDENTITY CHEKSM Fraud DetectionDetecting known fraud patterns
Checks against OFACChecks SSN against deaths, date of birth, and last nameChecks driver’s license against SSN and date of birthCompares phone number to ZIP code; compares address to list of hospitals, prisons, nursing homes, vacant lots, etc.Create your own “never open account” list and share with shared branch CUs
14 CUs have signed up; implementations in May, June and July
Access via the Net button in CU*BASE GOLD; full integration withthe Member Service rewrite project (the first data processor in country to do so)
92
DocMergeA New Forms Management Partner
Automation for miscellaneous credit union formsUses key CU*BASE data fieldsDirected by CU; projects managed by DocMergeBeta starting late summer 2004 with Berrien Teachers CU
A new team member for forms development in 2005
Hardware and CU Networks
At your end of the phone line...Today’s CUs are building sophisticated
networks, complex Internet offerings, and some really cool graphical products
94
High Availability Update
A cooperative effort attracting national attentionOwner/clients insuring themselvesBig things planned for 2005
A strategy, not a task
95
Planning for Your Desktop Network Needs
CU*BASE GOLD storage requirements60 Mb (double the size of 3 years ago)GOLD custom screens will increase storage another 5 to 10 Mb per CU
Have you reviewed the minimum specifications for a desktop unit today? What should you be planning on doing for 2005?
Check with WESCO Net today!
96
Matching Network Needs with Network Speed
Today, CU*BASE GOLD navigates the IBM iSeries, many internal web servers and desktop applications, and potentially the entire InternetCommunications are no longer as simple as a single line between your CU and CU*Answers
Frame relay linesISDN backupDSL and cable Internet links
Does your structure match your business plan?
97
WESCO Net
Business continues to grow, but moreimportantly, Joe and Randy have become a significant part of CU*Answers and building network and security awareness
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2002 2003 2004-YTD
Gross Sales
0
10
20
30
40
50
60
Oct
-02
Nov
-02
Dec
-02
Jan-
03
Feb-
03
Mar
-03
Apr
-03
May
-03
Jun-
03
Jul-0
3
Aug
-03
Sep
-03
Oct
-03
Nov
-03
Dec
-03
Jan-
04
Feb-
04
Mar
-04
Apr
-04
May
-04
# of Managed Firewalls
98
WESCO NetThe Ultimate Solution for GOLD Releases
Introducing GUAPPLE: The GOLD Update Appliance
GUAPPLE (Gold Update Appliance)
Pros Cons No user intervention required; no demands on creditunion time or resources Configured to receive software downloadsautomatically On-demand client software delivery Download notification provided to CU*Answers staff Verification logs are created automatically fortroubleshooting purposes Remotely monitored and managed by CU*Answersstaff Secure, hardened unit; not vulnerable to virusinfections Robust UNIX operating system provides highavailability Full 3-year warranty
Cost to credit union ($589.00 per unit plus$29.00/month - includes hardware maintenance/replacement, software maintenance, WESCO Netmonitoring and managing of unit)
99
Data Retention and Network Storage Tools
In 2005, CU*Answers and its credit unions will need to come up with long-term solutions for electronic storage of all kinds of data, forms, and images
In some cases, we will partner (Carswell Data Products and CoWWW)In some cases, we will own (CU*Archives)
Regardless, a comprehensive strategy is needed by all
100
Expanding our Partnership with Carswell Data Products
Changing the lobby experience (teller networks)E-Receipts – Teller receipts, signature capture, and ID images
Changing the borrowing experienceE-Forms – Loan forms and related documents
Changing how credit unions store member information
E-Docs – Miscellaneous document imaging
101
CU*Archives: A New CU*Answers Strength
CU*Archives is an effort by CU*Answers to enhance our capabilities and services related to records retention
In 2004, CU*Answers became a direct producer of microfiche and report/statement archival on CD-ROM In 2005 we will focus on
Records retention policy managementAuditingProduct development
Coming in 2005: New CU storage products
102
Expanding our Partnership with CoWWW
In 2005, CU*Answers will put forward several new solutions to extend CU*SPY into credit union offices
Online statements past one yearCU reports past 90 daysTransitioning CU*SPY from a retrieval tool to an archival toolA new CoWWW partnershipCombining CDP and CoWWWPlanning for long-term electronic storage of all kinds of data, forms, and images
What’s On Your Mind?
Are there any topics related to technology or our CUSO that you’d like to hear about
today?
Conclusion
What are the top 10 tools you plan to use from the 2003-2004 development year?
105
Randy’s Top 10 Using CU*BASE Tools You Already Have
Create a “Borrowers For Life” programCreate an “Investors Focus” programHave 2 CU@HOME membership drivesConvert one person from back office to salesDo 4 selective statement insert campaignsCreate a Tiered Service rewards programOffer three different pricing schemas for ATM/debit cardsPay members for somethingStart a one-on-one personal banker/messaging campaignSet a big goal for member contact and then track it!
Thank you!