Building Partnerships to Enhance Your Loan Product - REAL Solutions

REAL solutions Webinar Training Series April 10, 2008 Building Partnerships to Enhance Your Loan Product

Presenters
Bill Myers: REAL Solutions Field Coach, former CEO of Alternatives Federal Credit Union, Ithaca, NY
Lil Dupree: Development Director, Northwest Montana Human Resources, Kalispell.
Jeremy Presta: President/CEO, Park Side Federal Credit Union in Kalispell.

Bill Myers: REAL Solutions Field Coach
Partnerships

Partnerships When going it alone isn’t enough Bill Myers [email_address] REAL Solutions Montana Partner’s Meeting. April 10, 2008

Two Basic Types of Partnerships
Operational Partnerships
Efficiency
- Data processing
Regulatory Compliance
- Continuing education
Hours of operation
- Call Center
Service Extension
- Brokerage
- Business Lending
- Collection
Mission Partnerships

Same Mission, Different Strengths
When you want “Out of the Box”
work with someone not in your box.
"It is not from ourselves that we learn to be better than we are.“ Wendell Berry

Exercise in Translation: No Comparable Terms
Financial Institutions Non-Profits
Return On Assets Grant Coverage
Equity Endowment
Revenue Stream Grant Cycle
Leverage Endowment earning
Scale Replicable Model

Assess your core skills and weaknesses
What does our CU do well?
Business-like approach
Existing Retail Network
Existing Transaction Servicing capacity
Capital to lend
Desire to grow
Capital necessary to growth

Areas CU don’t serve well
New Americans
Youth
Short term loans
Unbanked
Financial Education
IDA matches
Donations
Anything that diminishes Net Income

Non-Profit Strengths
Education Skills
Client contacts
Grant Support
Desire to have impact
Visibility
Good will

Get to know your partners
Share the Vision
What is in it for each party?
Understand needs, capacities, constraints
Avoid Culture Clash
Create a Partnership Agreement
Clarify roles, responsibility, authority, purpose
Say Thanks
Evaluate and Celebrate Success
Keep the Fires Burning
Do Lunch

Hybrid Products
Youth Credit Union
- Schools, PTA, Teachers, Reader’s Digest Wallace Foundation, Local banks
Financial Counseling
- Balance, Cooperative Extension, Neighbor Works, NYS CDFI, HUD , Housing Authority, Community Action Program, Urban Renewal Agency
Short Term Loans
- Donated Loan Loss Reserves, State, County CDBG, City
- Referrals
New Americans
- Catholic Charities, Immigrant Resettlement
Individual Development Accounts
- FHLB, Neighbor Works, HHS, NYS CDFI
Free Tax Preparation
- IRS, Daycare Council, Dept of Social Svcs, NCUA, National Credit Union Foundation, HSBC

Startup Partnership Questions
What is the purpose of the partnership?
Is there a demonstrated member need? Have we had member feedback?
Do the partners share a common mission?
Do the partners bring different skills to the agreement?
Can each side realistically support the partnership?
Is there value added for CU members? That is, could members do the same thing without the partnership?
Is quality assurance sufficient that the CU's reputation will not suffer?
Will the CU make money from the relationship?
Will this partnership exclude other members from the same partnership (do we have members in competition with our partner)?
How do we get out of the relationship, if necessary?
Does the partnership support our mission?

Partnerships Bill Myers [email_address]

Lil Dupree : Development Director, Northwest Montana Human Resources, Kalispell. Jeremy Presta : President/CEO, Park Side Federal Credit Union in Kalispell. Free to Choo$e

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Building Partnerships to Enhance Your Loan Product - REAL Solutions

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