Nicole Haverly is a 30-year-old Senior Portfolio Manager of Affinity Plus Federal Credit Union ($1,839M) in Saint Paul, Minnesota, United States. This is her Finalist presentation that she gave in Savannah, Ga. as part of the 2016 CUES Next Top Credit Union Exec competition.

1. Nicole
Haverly
Senior Portfolio Manager
Affinity Plus Federal Credit Union ($1,839M)
Saint Paul, Minnesota

2. "A penny saved is a penny earned:"
Savings Accelerator Program
2016 CUES NTCUE Competition
Nicole Haverly - Senior Portfolio Manager
October 24, 2016

3. • Past Inspiration to Current Motivation
• Evidence through Data
• Concept and Strategy of Program
• Quantitative Statistics
• Impact: Employees, Members, Organization as a whole
• Looking Ahead
Overview

4. Past Inspiration to
Current Motivation

5. Past Inspiration: Goal to Reality
"Develop your dreams. Advertise your goals. Execute your plan. Close the sale."
Michael Dooley

6. Traditional Strategy vs. Strategic Innovation
Current Motivation
• Where to Play: Member needs and experience
• How to Play: What we offer is a win-win-win
• How to Win: Value all around
Sniukas, M., Lee, P., Morasky, M. (2016). The Art of Opportunity. Hoboken: Wiley.

7. Evidence through Data

8. Survey Results
Google Consumer Surveys
Sample: National adult Internet population
Are you satisfied with the amount of money you save each month?
[Results for all respondents]

9. Survey Results
Google Consumer Surveys
Sample: National adult Internet population
Are you satisfied with the amount of money you save each month?
[Results for 25-34 yr olds]

10. Survey Results
Google Consumer Surveys
Sample: National adult Internet population
What percentage of your income do you put into savings in an average month?
[Results for all respondents]

11. Survey Results
Google Consumer Surveys
Sample: National adult Internet population
What percentage of your income do you put into savings in an average month?
[Results for 25-34 yr olds]

12. Survey Results
Google Consumer Surveys
Sample: National adult Internet population
If your bank or credit union built in an automatic savings plan with your regular
car payments, would you choose this product as a way to grow your savings?
[Results for 25-34 yr olds]

13. Survey Results
In general, how secure do you think your members
feel with their current savings balance?
Do you feel that a lack of adequate savings account
balances contribute to auto loan delinquencies and
defaults at your credit union?
SurveyMonkey
Sample: CU employees and executives

14. Concept and Strategy
of Program

15. Savings Accelerator: Program of interlocking gears
Large
accumulation of
savings once you
pay your loan off
Reduced
rate on
your new
auto loan
Increased
rate in your
new savings
account

16. Interlocking gears
Up to $2000 =
1.0% APY
1) Increased rate on your new savings
• Unknown savings rates on own
accounts
• Millennials have not experienced
the magnitude of compound
interest

17. Interlocking gears
2) Reduced rate on your new auto loan
• Thrifty and Frugal: Groupon,
Cartwheel, Airbnb, etc.
• No layered products gimmicks
0.00%
0.05%
0.10%
0.15%
0.20%
0.25%
0.30%
0.35%
0.40%
0.45%
0.50%
< 620 FICO 620-669 FICO & No
Score Borrowers
≥ 670 FICO

18. Interlocking gears
3) Large accumulation of savings when
loan is paid off
• The "unexpected expenses"
• Laying the foundation with $1000
• Your sinking fund

19. Quantitative Statistics

20. Statistics of Savings Accelerator loans
$13,612 Average loan amount
WA FICO: 665 Range: 497 - 850
WA DTI: 30% Range: 10% - 82%
WA LTV: 95% Range: 40% - 141%
WA Term: 61 months Range: 24 - 84 months
WA Rate: 5.40% Range: 1.94% - 11.99%

21. Goal: Millennials
4%
42%
19%
22%
10%
3% 1%
< 20
20 to <30
30 to <40
40 to <50
50 to <60
60 to <70
>= 70

22. Goal: Attract new borrowers
9
1
4
2
4
1
2
1
3
1
6
12
13 13
8
13
20
0
5
10
15
20
25

23. Quantitative Measures
27
71
114
140
0
20
40
60
80
100
120
140
160
June 2016 July 2016 August 2016 September 2016
Loans Originated

24. Quantitative Measures
$2k
$8k
$12k
$14k
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
June 2016 July 2016 August 2016 September 2016
Interest Saved

25. Quantitative Measures
$14k
$20k
$32k
$43k
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
June 2016 July 2016 August 2016 September 2016
Savings Accumulated

26. Impact:
Employees, Members,
Organization as a
whole

27. Employee Experience: Corinne Loe
• Champions the concept
• Every member matters; no one left behind
• Passion to create change and imbeds optimism

28. Member Experience: Ce'Airra T.
• 26 yr old millennial
• "Able to save for certain things, but struggles if
not tied to something specific"
• "This forces me to save, regardless of a thought
out plan"
• Music career: CiCi Bella
http://www.cicibella.com

29. Organization: Core Values

30. Organization: Financial Soundness
• Potential of reduced interest income and
increase in interest expense
• Offset with reduced probability of charge off
and credit union's added protection in event of
default

31. Looking Ahead

32. CFPB Study

33. Exposure

34. Importance of Future Actions
• Provide accessible, robust resources
• Get ahead of the payoff to provide
impactful financial advice
• Concept is scalable and relevant

35. Thank You!

36. Q&A with
Nicole