This document summarizes a new lending program called ClearChoice that allows credit unions to provide loans to members based on their deposit history rather than credit scores. It describes how ClearChoice works, the benefits to both credit unions and members, and how it could help credit unions attract new members and grow their business by meeting everyday shopping needs through an interest-free loan program. ClearChoice expects this will increase direct loan growth and spending at credit unions.

1. Through special arrangements with the publisher,
this ClearChoice informational cover wrap has
been placed on a limited number of copies of
FORTUNE® magazine. It does not constitute an
endorsement by FORTUNE and no endorsement
is implied. FORTUNE is a trademark of Time Inc.,
Registered in the U.S. and other countries.
HOW ONE COMPANY IS
CHANGING THE WAY CREDIT
UNIONS CAN GROW

2. ONLINE SHOPPING JUST MIGHT CATAPULT CREDIT UNIONS
TO NEW GROWTH AND RELEVANCY.
For many years credit unions have attempted to
solve flat loan growth by seeking more ways to be-
come relevant to their members, attract millenni-
als and serve the underserved. It’s a big mission,
but one that credit union CEOs strive to achieve
year-after-year. From in-school branches to in-
direct loan growth and working with special em-
ployee groups (SEGs), credit union executives are
trying different strategies to compete, become rel-
evant to new market segments and grow.
Enter ClearChoice (www.goclearchoice.com). A
unique offering that could very well revolution-
ize lending as we know it, making credit unions
the focal point for members’ every-day needs.
The revolution is how the maximum loan amount
is derived; not by credit score, but by depository
history and account balance behavior! You read
it right.
TheexecutivesatClearChoicebelievethatthrough-
out a member’s trials and financial dealings with
other entities that a member’s account is the one
consistent financial tool they try to keep going. Re-
search would prove them right. Even when mem-
bers lose their jobs and default in other areas, they
rarely close their accounts.
“It’s a financial tool,” explains Matt Cochran, CEO
of ClearChoice. “Credit cards are easily cut, rent-
ed and leased items are usually turned back to the
financier; but accounts stay because they need a
way to purchase items. A member’s account aids
the most basic financial need.”
Continued on inside back cover 
HOW ONE COMPANY IS
CHANGING THE WAY CREDIT
UNIONS CAN GROW
THE BIG JUST KEEP
GETTING BIGGER
THROUGH INDIRECT
LENDING
CU SAVINGS AND LENDING HAS
GROWN RAPIDLY IN THE U.S.
YET THE NUMBER OF CUs NATIONWIDE
HAS STEADILY DECLINED
Chart Source: CUNA
Savings and loan amounts shown in millions.

3. Add the fact that credit union members are more
stable and reliable as a group, remaining with
that organization for 15 years on average, and
have dual income, the credit union market is the
perfect market for such a product. For members
looking to purchase household goods and oth-
er products, why go anywhere else when you can
get the same price or less through the credit
union branded shopping platform with an inter-
est-free loan?
WHAT’S IN IT FOR THE
CREDIT UNION?
For credit union executives, the CU earns a 10%
fee on every purchase made by members. At a
projected spending level of $1,500 per member, it
becomes an impactful growth tool for any cred-
it union. CU executives can expect an increase
in direct loan growth, and an increase in “wal-
let share” from members as they will spend more
through the credit union for their household and
recreational needs. Credit unions can now provide
a financial tool to the underserved and those less-
than-prime, with a fair retail shopping experience
and interest-free loan, combatting the rent-to-own
and predatory creditors that keep these members
in an unrelenting downward spiral of exorbitant
rates and pricing.
“The model was built to benefit both the member
and the credit union,” remarked Matt. “We believe
it will attract millennials as a way for them to more
safely spend and gain credit worthiness, as well as
buildontheconceptofrelationshiplending.Mean-
ing, we are basing the maximum loan amount on
your account behavior and your relationship with
the credit union, versus a credit score algorithm
that’s built to always keep you in debt. We’re trying
to provide members with a tool that will help them
be more financially responsible by aligning to their
consistent interactions with their credit union.”
There’s no doubt that the ClearChoice program is
different. It’s simplicity is in “how” it fills a need
in the credit union market by driving engagement
from new and existing members with a program
that meets their everyday needs and is under-
written based on a person’s stability, ability and
willingness to pay. Leveraging ACH and other
tools, ClearChoice minimizes the risk of defaults
by removing “willingness”
from that formula. Payments
are automatically withdrawn
from accounts; that’s part of
the agreement. Now you just
have stability and ability in the
formula and the credit union
member is highly rated in both.
This comes at the right time. The industry is look-
ing for innovative ways to be more relevant, attrac-
tive and grow. Shopping through the ClearChoice
Member Purchase Program aligns well to the
needs of the industry and their members. It serves
the underserved as well, pulling them away from
predatory retailers and interest rates.
Learn more at www.goclearchoice.com 
 ‘The rent-to-own industry promises consumers the American
dream of ownership,’ Ed Mierzwinski, consumer program director
at U.S. Public Interest Research Group, told Bloomberg. ‘But its
contracts provide for very high-cost payments, and it is difficult
to complete the contract.’ 
Source: http://www.fierceretail.com/story/kmarts-new-rent-own-program-draws-criticism/2013-11-12
Related Resource
CREDIT UNIONS OFFERED BEHAVIOR-
BASED LENDING MODEL
Download this article at:
goclearchoice.com/FORTUNE

4. The tide is turning. The change is at hand. Your
credit union can once again step into the power
it once had to serve the needs of your core
members—and create new revenue streams at
the same time.
ClearChoice offers a remarkably simple—and
financially sound—solution. Similar to reverse
layaway, the program gives your members the
freedom to make those important purchases—
safely. No interest. No finance charges. No
hidden fees.
Lead the change. Visit www.goclearchoice.com
to join the ClearChoice revolution today!
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