Key Initiatives & Issues

1. Key Initiatives & Issues Credit Union Central of Canada Update 2002 & Outlook 2003 CUMA October 9, 2002

2. Agenda 1. 2002 - Key Priorities 2. 2003 - Key Priorities 3. Comments & Questions

3. Priorities 2002 Canadian Central Focus determined by what credit unions said they need • Growth (market share, assets, membership) • Cost competitiveness of the system • Speed and effectiveness of change/decisions in the credit union system

4. Priorities 2002 Business Priorities for the System - 2002 (Major areas of focus for CUCC this year) • E-Business • Wealth Management • Learning and Development • Payments & Transaction Processing • System Restructuring

5. Priorities 2002 - Update E-Business - Connectivity • Bringing together a member’s total co-operative portfolio: • from within their credit union and from Strategic Partners’ systems. • Self-service, Internet Banking Channel: e.g. MemberDirect • And service from In-Branch Channel via C.U. Staff e.g. cudirect

6. Priorities 2002 - Update E-Business - Electronic Document Presentment • Canadian Central has a “generic state of readiness”, with national agreements • With e-post™, members can receive bills electronically via e-post and then link to the C.U. website for payment • With webdoxs™, operated by e-route Inc., members can receive and pay bills online directly at their FI’s website

7. Priorities 2002 - Update E-Business - Emerging Technologies • Canadian Central working with CUCBC on a national e-business strategy, including P2P payments, account aggregation • Working on market analysis of mobile commerce • National chip card strategy developed for the credit union system; Interac Association developing debit chip card strategy over the next 18 months

8. Priorities 2002 - Update Wealth Management- CAM/CSI/MemberCare Merger • Benefits: • Integrated Wealth Management Strategy • Single Point of Contact • Comprehensive Suite of Products • Consistent Advisory Services • Integrated Data Solutions

9. Priorities 2002 - Update Learning & Development - NLO • National Learning Organization (NLO) - target implementation Jan 1, 2003 • Mandate is to develop and deliver high-quality education programs for credit union system • Enhance access, eliminate duplication • Business Case approved early this year • New Executive Director - Cheryl Byrne - hired

10. Priorities 2002 - Update Learning & Development - NLO • RFPs for Learning Management System (LMS) issued - responses to be reviewed early November • Management Services Agreements with individual Centrals being negotiated • LMS Financing of about $2.3 million via loans from provincial Centrals, per the Business Case • Board of Canadian Central to become Board of CUIC • Advisory Council to be created

11. Priorities 2002 - Update Payments & Transaction Processing • 260 million transactions routed through National Node in 2001 • Canadian Central contract with CGI expires end of 2003 - new contract needs to be in place by end of 2002 or early 2003 • Level of price is volume driven

12. Priorities 2002 - Update System Restructuring • External: • Developing an appropriate regulatory structure to give affect to key provisions in Bill C-8 • Canadian Central response to Federal government’s Cooperative Bank Consultation Paper • Internal: • Refining Canadian Central’s By-Laws to accommodate system restructuring initiatives

13. Priorities 2002 - Update Other Priorities • Stakeholder Satisfaction Survey - to ensure Canadian Central is responsive to owners’ needs

14. Priorities 2003 - In Brief Key Projects Identified... • Work to increase C.U. presence in SME market • Enhanced research capabilities • Risk & Fraud management • E-business strategy • Harmonization of key legislative areas • NLO rollout • Support of system restructuring

15. Summary Canadian Central’s job remains: • To help you compete and grow • To work with you and for you • To deliver quality, cost-effective results For more information check out the Member’s section of our website: www.cucentral.ca

16. Thank you • Questions? • Comments?