Caribbean Confederation of Credit Unions 54 th International Convention june 2011 COMPETE-CONNECT-COMPLY renaissance

1. Caribbean Confederation of Credit Unions 54th International Convention june 2011COMPETE-CONNECT-COMPLY renaissance Curacao resort & casINO

2. Eastern Credit Union Cooperative Society LimitedTrinidad & Tobago COMPETE How did it happen?

3. WHEN DID IT ALL START? • In the year 1973 • Mounting unemployment, • Relatively low wages in the public and private sectors • Growing evidence of poverty Eastern Credit Union emerged against this background of uncertainty and restlessness in the Society.

4. WHEN DID IT ALL START? • Thirty-eight years ago - April 16, 1973 • Following the dissolution of the Bermudez Employees Credit Union. Twenty-two pioneers from the Biscuit Company with $58.50. • In 1975 …began drive to broaden its bond and increase its asset base • Cultivate the community and the industries in the Eastern catchment areas • Aranguez, El Socorro and San Juan • Cheeseborough Ponds, Flavorite, YKK Zippers and Holiday Foods were absorbed into the Eastern fraternity • This approach has led to unlimited boundaries with a bond that now embraces the whole of Trinidad and Tobago.

5. WHO WERE THE VISIONARIES/PIONEERS? • The Pioneers were enterprising and committed employees • Led by Alston Stephen Wilson and were made up of factory workers along with officer staff. • In the early days CCULTT (the League) lent the expertise of its Field Officer – Mr. John Edward Garcia

6. THE FOUNDER • Mr. Alston Stephen Wilson • Industrial Relations Officer at Bermudez Biscuit Company, the “CRIX People”

8. ASSET/MEMEBERSHIP PROGRESSION

9. BRANCH NETWORK

10. THE JEWEL - LA JOYA La Joya – The Jewel (1988) • Built out of the resources of the Credit Union for $15M.TT • State of the art Auditorium • Conference Room • Day Care Centre • Pre-School, • Gymnasium • Swimming Pool • St. Joseph Branch • Artisan Units - two and three bedroom apartments • Administrative Headquarters La Joyawas built under the leadership of Mr. Louis Lee Sing (Now Mayor of Port of Spain)

12. LA JOYA PIONEERS Main Contributors to the La Joya multi-purpose structure • Mr. Louis Lee Sing – President • Mrs. Linda Besson • Mr. Gary Cross • Mr. Edward Garcia • Mr. Cuthbert Alvarez • Mr. Errol Bethelmy • Mr. Michael Leacock. • La Joyawas commissioned in September 1988 by the then Hon. Prime Minister of Trinidad and Tobago - Mr. A.N.R. Robinson. The term “Sleeping Giant” was coined by Hon. Ken Gordon – then Minister of Trade, Industry and Commerce at Eastern’s A.G.M in March 1989

13. MAJOR ACHIEVEMENT In the year 2000, • Eastern achieved national recognition for its service to the community • By attaining the third highest award: “The Humming Bird Silver” From the Government and People of Trinidad and Tobago for Its outstanding contribution in the sphere of Credit Union Development

14. COMPETING AND EXPANDING IN AN UNCERTAIN FINANCIAL LANDSCAPE • Analyzed the internal and external environment • Targeted the lower and middle income families • In the seventies and eighties • Concentration of the membership was drawn from the industries, factories and businesses within the common bond of membership. While simultaneously working on attaining membership within the communities • The approach in identifying membership • It allowed for the facility of Payroll deductions to aide in the savings thrust and for the settlement of loan commitments.

15. MAJOR CHALLENGES EXPANSION • Another location within the Capital city - Cost/location • Expand ATM Network through LINX relationship • Bring on board other CUs on IT and LINX Platform COMPETITION • Competition is inevitable. – slow down in economic activities • Internal setting - competition is centered around other financial co-operatives • External environment -competition comes from Banks, Insurance Providers and large retail stores

16. MAJOR CHALLENGES • STRATEGIC ISSUES • Eastern needs to build a cadre of leaders and innovators • Eastern’s performance must reflect an improved bottom line • Explore joint venture opportunities • Improvement in customer service – cultural mind set • DELIVERY CHANNELS • Expansion of ATM network – proprietary/LINX • Brick and Mortar presence/ agencies/ shared branching/Electronic Distribution • Debit card / Credit Card • Joint venture/ alliances – overseas arrangement • Businesses / Communities • Eastern ambassadors – employees and elected officials .

17. MAJOR CHALLENGES • LEADERSHIP STRUCTURES The structure is ALWAYS under constant review with the objective of creating synergies among the Management Team for organizational effectiveness • Managers • Functional responsibilities • Divisional Structure • Subsidiary • Group Executive Managers • Group CEO • Deputy CEO • DIY (Do it yourself/outsource) • What’s next ?

18. MAJOR CHALLENGES LEGISLATION • The Proposed Policy Document – New CUA • The Regulator – Central Bank of Trinidad and Tobago • Fit and proper condition • Capitalisation • Dividend Payment • Prudential Criteria • Restriction on real estate investment • Subsidiary Operations

19. TECHNOLOGY Our technological transformation has been consistent with the growth of the institution. We have graduated from: • ‘Old IBM and Batch PC Network’ • To the AS400 Hardware • First CU to have ATM proprietary Network/System • 2002 – Established the first CU Call Centre • 2007 -OSI (Open Solutions Incorporated) System Allows speedier credit union transactions • Associate member of LINX ATM Network in T & T Access to funds 24/7 400 ATMs / 2000 Merchants Nationwide

20. EASTERN STRATEGIC FOCUS • SUNSIDIARY COMPANY In the year 2002, Eastern took a decision to diversify its operations by establishing a wholly-owned subsidiary company “EPL Properties Limited” This property development company serves as the landlord for all Eastern-owned properties and seek opportunities for the real estate development. The subsidiary is responsible for ECU’s ancillary services Sporting Complex/ Swimming Pool Day Care Centre/Nursery School Travel Service Events Management/Short term Rental/Auditorium/Conference

21. Eastern……The Brand“Leading the Way” • The brand was created through consistent messages and electronic media advertising extolling the vision and virtues of the institution • The branding was backed up by a delivery channel that re-inforced the message of leadership within the sector • Small Business Sessions • Members Fora • Granny Lucess Classic (23rd Year) • Media / Publicity • Liaison Officers Outreach Programme • Diabetes Health and Fitness Walk • Cricket Sponsorship of Premier League • Primary Schools and Members Calypso Competitions

22. ALLIANCES/PARTNERSHIPS - MOU Eastern has developed alliances and partnerships with: • The City of Kingston (COK) - Jamaica • The City of Bridgetown (COB) - Barbados • The Communal Credit Union - Grenada • Rhand Credit Union - Trinidad and Tobago. Through these interactions, we are able to share relevant documentations, exchange human resources and build on the technology platforms of the participating institutions.

23. UNIQUENESS The uniqueness was built on the tradition of innovation and creativity • Open Bond • Target companies/industries • Nationwide Youth Programme established in 1985 • First to have ATM Network • Only CU in Linx Network • Multi Complex Facility – La Joya : The Jewel of the East • Call Centre • National Coverage • Accessibility to ten strategic locations • Branding – Eastern is a household name • Transparency • Responsive to change • Wide range of products and services

24. EASTERN SIZE: Does it complement or divide the Credit Union Sector!! • Eastern’s size in terms of assets and membership create some measure of ambivalence. Within the sector, there is a polite antagonism which demands Eastern to deliberately pursue a path of quiet dignity and humility in dealing with constituent bodies within the movement. • Eastern’s aggressive stance in mobilizing membership and savings is regarded by the internal competition as “poaching” and Eastern needs to be aware of this reality • In the external environment, the institution has earned the respect of the regulators and the financial services sector through its work over the past thirty – eight years.

25. THE FUTURE • Internet Credit • Mobile Transactions • International Debit Card • Credit Card • Wire Transfers • Health Insurances • Wealth Management • Shared Branching • Intensify Use of Call Centre • Other units to use ECU IT Infrastructure All of the above will be done observing rigidly the philosophy and principles of the Credit Union Movement

26. DO YOU SLEEP OR DREAM? Eastern refuses to sleep on its accomplishments Eastern, in an effort to remain relevant will continue to Dream The dream incorporates establishing a sound foundation so that Young People within the fold can assume the reins of leadership and perpetuate the philosophy and message of co-operation through Eastern Credit Union

27. ECU …… THE STORY THANK YOU