Ben Rogers Driver, CU Tomorrow Filene Research Institute

1. Ben Rogers Driver, CU Tomorrow Filene Research Institute

2. Numbers

3. 47

4. 47 Average age of credit union member

5. $2,846

6. $2,846 Average credit card debt of a college senior

7. 50%

8. 50% Increase in bankruptcies among young adults in past 10 years

9. 0

10. 0 30 Under 30 members who planned a credit union career -Filene Research Institute

11. 25 - 42

12. 25 - 42 Prime borrowing years

13. 38%

14. 38% Credit union members in prime borrowing years. Down from 55% in 1985. -CUNA (2007)

15. 47%

16. 47% Percentage of 25-34 year-olds with an interest-bearing savings account. -Beacon Economics (2004)

17. Myths

18. Young adults get all their information from the Web

19. Social networking will automatically attract young adults

20. Young adults only want electronic delivery

21. Business Briefs Open-source, youth-oriented business plans for credit unions published monthly • Monthly business plans include research, program suggestions and case studies • Programs attract younger members, professionals and volunteers • Briefs announced at CUTomorrow.org, downloadable from Filene.org.

22. Business Briefs Open-source, youth-oriented business plans for credit unions published monthly SCREEN CAPTURE FROM FILENE

23. Business Briefs • Credit Card Consolidation Loans • Youth Advisory Program • College Recruiting Coming Up: • Youth-Focused Transaction Accounts • Using Google AdWords • Advisory Board Members

24. League Partnerships Statewide collaboration to implement CU Tomorrow programs • CUs commit to implement several business brief ideas • Regular training and collaboration with partner CUs • Filene and the league liaison measure and disseminate results

25. Recruiting Talented interns, new hires from top universities • Filene helps connect high-potential undergrads and MBAs with credit unions • Net Impact Partnership

26. Community CUTomorrow.org and Filene.org for publications, idea sharing • Blog posts for ideas and updates several times per week • Discussion/comments around youth and credit unions • 30 Under 30 and league meetings

27. Minding the Gap 30 Under 30 Ideas • Free foreign ATM transactions • Automatic text notifications • College application fees • Discounted loans

28. Minding the Gap 30 Under 30 Ideas • “Here I am” reminders • Account to Account transfers • NSF amnesty • Smart Score

29. Young Adult Advisors • Who: Decide on your target. This will be driven by your product needs and marketing opportunities. • 15-18 - Debit; small savings; credit cards • 18-24 - Credit cards; debit; auto loans; college loans; mortgage; consolidation loans. • 22-30 - Investment accounts; mortgage; HELOC; debit; auto loans.

30. Young Adult Advisors • Where: Depends on the age • At the credit union? • Older, with own transportation • If credit union is centrally located • School? • Relationship with administrators • Partner with a business class or club • Junion achievement or similar • Community center? • Partner organization’s site

31. Young Adult Advisors • When: Depends on the age. • After school or during a partner group’s activity for high school age • After work / over dinner for working adults • During class at community college. Target a marketing or business administration class

32. Young Adult Advisors Best practices • Find an existing group • Offer a tangible incentive - Cash, gift card, “nice” dinner • Use personal invitations

33. Credit Card Consolidation • $2,864 - Average credit card debt of graduating college senior • Only 21% of undergraduates pay off their balance every month • Average graduating senior has six cards (CBS News, 2003) • Think Zopa / Prosper / Lending Club

34. Credit Card Consolidation Advertising Simple Benefits • Lower monthly payments • Ability to pay off debt faster • Eliminating confusion • Paying only one bill • Lower interest rates

35. College Recruiting Credit Union Advantage • Socially responsible employer • Opportunities to work with senior staff from day one • Travel for job-related training • Opportunities to influence strategy early on (MBA students) • Reasonable hours; good work/life balance • Education reimbursement?

36. College Recruiting Credit Union Advantage • Socially responsible employer • Opportunities to work with senior staff from day one • Travel for job-related training • Opportunities to influence strategy early on (MBA students) • Reasonable hours; good work/life balance • Education reimbursement?

37. College Recruiting Net Impact Partnership • Matching credit unions with talented business students • Chapters around the country, including ASU • Internships and jobs • Opportunities for Summer 2009 interns and hires

38. Transaction Accounts Most popular features: • Online banking • Online bill pay • E-statements • Online tutorials • Affiliated credit card • Online account opening

39. Transaction Accounts Differentiating features: • High rates • Reward points • Special debit card design • Mobile banking

40. Transaction Accounts Best Practices Avoid “teen” or “Gen Y” in title

41. Transaction Accounts Best Practices Offer tangible rewards

42. Transaction Accounts Best Practices Emphasize (and personalize) debit

43. Pillars of Change • Members • Employees • Volunteers

44. Members Rethink commodity products

45. High-interest checking accounts Electric Orange “Remarkable” Checking FreeTunes Checking

46. What do you give away? Foreign ATM transactions? Overdraft protection? Savings prizes? Online community? Coffee? Lounge space?

47. Employees Rethink value proposition

48. Why do they choose you?

49. Mission Corporate Social Responsibility? People helping people?

50. Glamour Travel? Access to senior leadership? Decision-making?