1. Lois Kitsch[email_address] Doing Well byDoing Good Grow Your Credit UnionBy Serving Expanded Markets Florida Annual Conference

2. Todays Conversation

Credit Union Growth -

Examples of what credit unions are doing togrow by offering

services to new market nichesincluding young people,

Immigrants and low-wage working families.

Sustainable Business Models -

Talking throughsustainable business models for non-traditional

credit union productssuch as payday loans, non-prime car

loans and innovative savings accounts.

Where to Go

Find the open source tools to help your credit union develop

Products and services to serve low-wealth households

Doing Good is Good Business 3. Doing Well by Doing Good The Spectrum Credit Union Story 4. What does a poor or mediocre score cost? Emily Karen 750 Credit Card Rate 9.9% Auto Loans 5% Mortgage one 5.5% Mortgage two 5.5% Credit Card 19.9% Auto Loan 8% Mortgage one 7.375% Mortgage two 7.375% 650 5. What does a poor or mediocre score cost? Emily Karen 6. Cost of Poor CreditEmilyKaren 7070 $39,600Credit Card Interest$79,600 $21,166Auto Loans$34,653 $174,760Mortgage One $243,020 $417,616Mortgage Two$594,572 100 Points Cost Karen$ 298,704 7. Think of the impact of Dorothys credit score on her access to financial services 8. Continuous set of services to allow members to move from step to step, no matter where they start Alternatives FCU Ithaca, New York 9. Product Innovations

Provide Right Time

Financial Education

Transaction Services

Out of the box Savings

Access to affordable

loans i.e. payday loans

alternatives, non-prime

auto loans

Wealth BuildingProducts such as student loans and mortgages

For people who most

Need access to affordable financial services

10. U.S. Adult Population by Banked Status Note: Unbanked consumers are those with no checking or savings account. Underbanked consumers are those with a checking or savings account who have made one or morenonbankfinancial transactions in the past 30 days.Source: CFSI Underbanked Consumer Study, 2008 11. Underbanked Market Size

The total underbanked population consists of106 million adultsor49%of the population ages18 & older

Floridas unbanked population is5 million people or 27%and the underbanked population is closer

to9 million people

Source: 2008 CFSI Underbanked Consumer Study 12. Florida Today

Employment and Benefits

6.2% unemployment

25% working in low wage jobs

36.4% participate in retirement programs

51.4% employers offer health insurance(24.2% pay for their own insurance and 24.4% uninsured)

Home Ownership

65% Home ownership

7.3% foreclosure average(compared to nation wide average of 3%)

22% High cost mortgages

http://scorecard.cfed.org/state_data/florida.php

Visit -www.realsolutions.coop

13. % of Asset Poor Households in Florida 46% 36% 22% 11 % 3% Low Wealth does notalways equate to low income. In Florida, 22%of households earning more than $44,000 and 3% earn more than $100,000 are asset poor. 14. 15. Membership growth Appropriate Products andServices At the right price and terms! 16. Customer first?Then a member? Prepaid Cards Check Cashing Customers Grow into membership VITA All Cash Global 17. To learn more Second Chance Checking A REAL Solutions Implementation Guide Visit the RS Impact Center www.realsolutions.coop 18. Want to know more?

Three Free Webinars - Provide

Tax Preparation Assistance through

Voluntary Income Tax Assistance Programs

This series is exclusively for participating REAL Solutions credit unions and leagues.

Tax Preparation the Credit UnionWayNancy Pierce Field Coach REAL Solutions Visit www.realsolutions.coop 19. Right Time Education It Matters FICEP Step WAY out side the box education . 20. To learn more Filene Research Institute www.filene.org www.realsolutions.coop League Highlights 21. Lets Talk Saving Programs Savings Matter 22. Coming Soon

Savings Toolkit and Webinar Series

Visit

www.realsolutions.coop

23. Lets Talk Loan Products 24. Non-Traditional Loan Products

Payday Loans

Small short term loans with high cost and balloon payments often causing a cycle of debt.Users:

• Are banked 100% have a bank account

• May be homeowners (42%)

• Are often under the age of 45 (median age is 32)

• Are women with children at home (62%)

• Are of low to moderate income 50% have incomes from $25,000 to $50,000

Credit Unions are moving members to alternative short term loan products- saving their members big money while at the same time pushing revenues to their bottom line.

25. Want More info? Visit www.realsolutions.coop for a comprehensive Toolkit on how REAL Solutions Credit Unions Provide short term loan products to their members. Contact League Liaison Natasha Melugin 26. Non-Prime Auto Loans

Who Needs them?

88% of Americans drive to work

Reliable transportation providesjob, education and family opportunities

Non-prime borrowers traditionallynot served by credit unions

Credit unions are missing

a huge business opportunity -

Visit the Impact Center to review the 7 lessons learned!! 27. Want to know more?

Four Free Webinars - Provide Affordable Auto Loans To Non-prime Borrowers and Make Money for you CU

This series is exclusively for participating REAL Solutions credit unions and leagues.

Steer Clear of Predatory Car Loans With Bill MyersField Coach REAL Solutions Senior Fellow, Aspen Institute Visit www.realsolutions.coop 28. Join us at REAL Solutions To Learn more contactLaura Vann or Adena Whitman LSECU Visit http://realsolutions.coop 29. Lois Kitsch REAL Solutions 407 616 2409 [email_address]