The document discusses strategies for credit unions to grow by serving underserved markets like low-income individuals, immigrants, and young people. It provides examples of credit unions that have developed sustainable business models and products tailored to these populations, such as payday loan alternatives and non-prime auto and mortgage loans. The document also highlights data on the size of the underbanked population in Florida and the United States, and how credit unions can help improve financial inclusion.

1. Lois Kitsch [email_address] Doing Well by Doing Good Grow Your Credit Union By Serving Expanded Markets Florida Annual Conference

2. Today’s Conversation Credit Union Growth - Examples of what credit unions are doing to grow by offering services to new market niches including young people, Immigrants and low-wage working families. Sustainable Business Models - Talking through sustainable business models for non-traditional credit union products such 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 Credit Emily Karen 70 70 $39,600 Credit Card Interest $79,600 $21,166 Auto Loans $34,653 $174,760 Mortgage One $243,020 $417,616 Mortgage Two $594,572 100 Points Cost Karen $ 298,704

7. Think of the impact of Dorothy’s 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 Building Products 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 more nonbank financial transactions in the past 30 days. Source: CFSI Underbanked Consumer Study, 2008

11. Underbanked Market Size The total underbanked population consists of 106 million adults or 49% of the population ages18 & older Florida’s unbanked population is 5 million people or 27% and the underbanked population is closer to 9 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 not always equate to low income. In Florida, 22% of households earning more than $44,000 and 3% earn more than $100,000 are asset poor.

15. Membership growth Appropriate Products and Services 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 Union Way Nancy 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. Let’s Talk Saving Programs Savings Matter

22. Coming Soon Savings Toolkit – and Webinar Series Visit www.realsolutions.coop

23. Let’s 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 provides job, education and family opportunities Non-prime borrowers traditionally not 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 Myers Field Coach – REAL Solutions® Senior Fellow, Aspen Institute Visit www.realsolutions.coop

28. Join us at REAL Solutions To Learn more contact Laura Vann or Adena Whitman LSECU Visit http://realsolutions.coop

29. Lois Kitsch REAL Solutions 407 616 2409 [email_address]