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REAL Solutions_PDLA Options_The Prospera Model

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Handout provided courtesy of the Illinois Credit Union League.

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REAL Solutions_PDLA Options_The Prospera Model

  1. 1. “People Helping People” Ken Eiden, CEO • ken.eiden@myprospera.com Kristi Van Schyndel, Director of Marketing • kristi.vanschyndel@myprospera.com Mary Lornson, VP Lending • mary.lornson@myprospera.com 1
  2. 2. Overview of our learning history Turnkey solution Software application 2
  3. 3. “A credit union is an instrument for the improvement of the economic economic conditions of its members, with particular emphasis on providing low- low- cost, personalized loans.” -CUNA International, Inc. Planning Committee Report, May 1965 CREDIT UNION CHARTER – [[Page 112 STAT. 914]] (4) Credit unions, unlike many other participants in the financial services market, are exempt from Federal and most State taxes because they are member- member- owned, democratically operated, not-for-profit organizations generally not- for- managed by volunteer boards of directors and because they have the the specified mission of meeting the credit and savings needs of consumers, especially those of modest means. A credit union is “organized…for the purpose Credit Unions’ “main purpose is still to of promoting thrift among its members and provide the average wage earner with a creating a source of credit for provident or source of low-cost credit and to encourage low- productive purposes;” him to save regularly…” - CUNA International, Inc. A Fact Book for Legislators -Federal Credit Union Act 1752 (1) NCUA board voted 2-to-1 in favor of collecting and aggregating membership profile data as well as data on financial products; the data collection plan will give the agency a comprehensive understanding of who FCU’s serve and how they serve them The agency intends to collect membership profile data as part of the CU exam The NCUA plans to begin collecting data by early 2009 Source: National Center for Credit Unions (The CEO Report – NCUA plans to collect CU industry data. Is this the first step towards CRA?) June 2008 3
  4. 4. Goodwill Industries of North Central Wisconsin • 25+ Human Service agencies on campus Financial Information Service Center (FISC) • Accredited consumer credit counseling Additional Credibility Payday Loans Check Cashing Money Orders Stamps Bill Payment Wire Transfers 4
  5. 5. Users fall into two categories • Poor money managers • Proposed Solutions: • FISC • Consolidated term loans • Chronic life disadvantages • Proposed Solutions: • Human Service agencies Juggling your finances? FISC can help! Female (57.58%) Unmarried (57.32%) Renter (53.38%) 18-54 Years Old • 18-34 (37.96%) / 35-54 (39.68%) <$25,000-$35,000 • <$25,000 (38.73%) / $25-$35 (17.07%) 5
  6. 6. Total Served— Total No. of Loans— Total Dollar of Loans— Average Loan Amt— Total Fees Saved— 6
  7. 7. “People Helping People” Three Package Options 7
  8. 8. Includes • MicroLender Origination Tool • GoodMoney Branding • GoodMoney Consulting • Per Application Fee (includes CLVerify fee of $1.00) – $2.25 • Per Rollover Fee – $1.25 • Forms – a la carte • Set Up – $3,750 Includes • MicroLender Origination Tool • GoodMoney Consulting • Per Application Fee (includes CLVerify fee of $1.00) – $2.25 • Per Rollover Fee – $1.25 • Forms – a la carte • Set Up – $3,000 8
  9. 9. Includes • MicroLender Origination Tool • Per Application Fee (includes CLVerify fee of $1.00) – $2.25 • Per Rollover Fee – $1.25 • Forms – a la carte • Set Up – $1,800 9
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  15. 15. Step 1 Conduct regulatory research Step 2 Obtain board approval • GoodMoney provides a beginner’s manual and PowerPoint presentation to assist credit unions with this process Step 3 User agreements (3) • CL Verify • CU*Answers/Lender*VP • Prospera/GoodMoney Step 4 Marketing plan • GoodMoney provides public relations support, demographics, suggested activities and templates Step 5 Staffing • GoodMoney provides, job descriptions, job ads and a characteristics profile Step 6 Policies; state-specific compliance • Consult with your legal counsel Step 7 Determine hours of operation Step 8 General operations; forms, practices, procedures, etc. • GoodMoney and CU*Answers have the ability to jointly assist credit unions in this area Step 9 Designate individuals to receive training • High-Level Overview of Operations – on-site • Frontline Overview of Operations – on-site • Accounting, collections, etc. – webinar or on-site • Marketing – as needed 15
  16. 16. To view a video on how GoodMoney has helped real members visit the following link: http://www.youtube.com/watch?v=WGmAFykJgx8 16

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