Building Partnerships to Enhance Your Loan Product - REAL Solutions


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REAL solutions Webinar Training Series - Community Partnerships

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  • Building Partnerships to Enhance Your Loan Product - REAL Solutions

    1. 1. REAL solutions Webinar Training Series April 10, 2008 Building Partnerships to Enhance Your Loan Product
    2. 2. Presenters <ul><li>Bill Myers: REAL Solutions Field Coach, former CEO of Alternatives Federal Credit Union, Ithaca, NY </li></ul><ul><li>Lil Dupree: Development Director, Northwest Montana Human Resources, Kalispell. </li></ul><ul><li>Jeremy Presta: President/CEO, Park Side Federal Credit Union in Kalispell. </li></ul>
    3. 3. <ul><li>Bill Myers: REAL Solutions Field Coach </li></ul><ul><li>Partnerships </li></ul>
    4. 4. Partnerships When going it alone isn’t enough Bill Myers [email_address] REAL Solutions Montana Partner’s Meeting. April 10, 2008
    5. 5. Two Basic Types of Partnerships <ul><li>Operational Partnerships </li></ul><ul><ul><li>Efficiency </li></ul></ul><ul><ul><ul><ul><li>- Data processing </li></ul></ul></ul></ul><ul><ul><li>Regulatory Compliance </li></ul></ul><ul><ul><ul><ul><li>- Continuing education </li></ul></ul></ul></ul><ul><ul><li>Hours of operation </li></ul></ul><ul><ul><ul><ul><li>- Call Center </li></ul></ul></ul></ul><ul><ul><li>Service Extension </li></ul></ul><ul><ul><ul><ul><li>- Brokerage </li></ul></ul></ul></ul><ul><ul><ul><ul><li>- Business Lending </li></ul></ul></ul></ul><ul><ul><ul><ul><li>- Collection </li></ul></ul></ul></ul><ul><li>Mission Partnerships </li></ul>
    6. 6. Same Mission, Different Strengths <ul><li>When you want “Out of the Box” </li></ul><ul><li>work with someone not in your box. </li></ul>&quot;It is not from ourselves that we learn to be better than we are.“ Wendell Berry
    7. 7. Exercise in Translation: No Comparable Terms <ul><li>Financial Institutions Non-Profits </li></ul><ul><li>Return On Assets Grant Coverage </li></ul><ul><li>Equity Endowment </li></ul><ul><li>Revenue Stream Grant Cycle </li></ul><ul><li>Leverage Endowment earning </li></ul><ul><li>Scale Replicable Model </li></ul>
    8. 8. Assess your core skills and weaknesses <ul><li>What does our CU do well? </li></ul><ul><ul><li>Business-like approach </li></ul></ul><ul><ul><li>Existing Retail Network </li></ul></ul><ul><ul><li>Existing Transaction Servicing capacity </li></ul></ul><ul><ul><li>Capital to lend </li></ul></ul><ul><ul><li>Desire to grow </li></ul></ul><ul><ul><li>Capital necessary to growth </li></ul></ul>
    9. 9. Areas CU don’t serve well <ul><li>New Americans </li></ul><ul><li>Youth </li></ul><ul><li>Short term loans </li></ul><ul><li>Unbanked </li></ul><ul><li>Financial Education </li></ul><ul><li>IDA matches </li></ul><ul><li>Donations </li></ul>Anything that diminishes Net Income
    10. 10. Non-Profit Strengths <ul><li>Education Skills </li></ul><ul><li>Client contacts </li></ul><ul><li>Grant Support </li></ul><ul><li>Desire to have impact </li></ul><ul><li>Visibility </li></ul><ul><li>Good will </li></ul>
    11. 11. Get to know your partners <ul><li>Share the Vision </li></ul><ul><ul><ul><li>What is in it for each party? </li></ul></ul></ul><ul><li>Understand needs, capacities, constraints </li></ul><ul><ul><ul><li>Avoid Culture Clash </li></ul></ul></ul><ul><li>Create a Partnership Agreement </li></ul><ul><ul><ul><li>Clarify roles, responsibility, authority, purpose </li></ul></ul></ul><ul><li>Say Thanks </li></ul><ul><ul><ul><li>Evaluate and Celebrate Success </li></ul></ul></ul><ul><li>Keep the Fires Burning </li></ul><ul><ul><ul><li>Do Lunch </li></ul></ul></ul>
    12. 12. Hybrid Products <ul><li>Youth Credit Union </li></ul><ul><ul><li>- Schools, PTA, Teachers, Reader’s Digest Wallace Foundation, Local banks </li></ul></ul><ul><li>Financial Counseling </li></ul><ul><ul><li>- Balance, Cooperative Extension, Neighbor Works, NYS CDFI, HUD , Housing Authority, Community Action Program, Urban Renewal Agency </li></ul></ul><ul><li>Short Term Loans </li></ul><ul><ul><li>- Donated Loan Loss Reserves, State, County CDBG, City </li></ul></ul><ul><ul><li>- Referrals </li></ul></ul><ul><li>New Americans </li></ul><ul><ul><li>- Catholic Charities, Immigrant Resettlement </li></ul></ul><ul><li>Individual Development Accounts </li></ul><ul><ul><ul><li>- FHLB, Neighbor Works, HHS, NYS CDFI </li></ul></ul></ul><ul><li>Free Tax Preparation </li></ul><ul><ul><ul><li>- IRS, Daycare Council, Dept of Social Svcs, NCUA, National Credit Union Foundation, HSBC </li></ul></ul></ul>
    13. 13. Startup Partnership Questions <ul><li>What is the purpose of the partnership? </li></ul><ul><li>Is there a demonstrated member need? Have we had member feedback? </li></ul><ul><li>Do the partners share a common mission? </li></ul><ul><li>Do the partners bring different skills to the agreement? </li></ul><ul><li>Can each side realistically support the partnership? </li></ul><ul><li>Is there value added for CU members? That is, could members do the same thing without the partnership? </li></ul><ul><li>Is quality assurance sufficient that the CU's reputation will not suffer? </li></ul><ul><li>Will the CU make money from the relationship? </li></ul><ul><li>Will this partnership exclude other members from the same partnership (do we have members in competition with our partner)? </li></ul><ul><li>How do we get out of the relationship, if necessary? </li></ul><ul><li>Does the partnership support our mission? </li></ul>
    14. 14. Partnerships Bill Myers [email_address]
    15. 15. Lil Dupree : Development Director, Northwest Montana Human Resources, Kalispell. Jeremy Presta : President/CEO, Park Side Federal Credit Union in Kalispell. Free to Choo$e