Credit Union Central of Ontario AGM & DEVELOPMENT CONFERENCE W E S I C U O 6 PACK LIQUIDITY STRATEGY P.A. (Pat) Palmer Principal & CEO Where Eagles Soar Inc. April 4, 2008

2008 LANDSCAPE Canadian Consumers: Highest shopping promiscuity Drivers of commoditization Technological & financial literacy High personal debt/low savings level Lifestyle segment differences Significant economic slowdown hits

2008 LANDSCAPE Competition: Proliferation of channels by traditionals Niche players erode market shares (ING/PC Financial) Insurance companies cross-over (Manulife) Retail brand extensions (CTC, GM, HD, etc.) Intermediary explosion (brokers, planners, agents) Monolines change to multilines Internet virtual choices, comparisons and information

CORE CHALLENGES FOR DEPOSITS Offset commoditization influences Improve product attractiveness and stickiness Understand depositors’ behaviours Build value generators Inspire sales culture Capitalize on winning ideas

WESI LIQUIDITY STRATEGY 1 2 3 4 5 6 D E P O S I T REAL CANADIAN SOLUTIONS Capture More of Members’ Cashflow

#1 – MEMBER & PROSPECT PREFERENCES Analyze segment cashflow characteristics Identify high/low balance holders Uncover “best of balance” preferences Build prototype segment scenarios - women - entrepreneurs - not for profit organizations - family circles - employer partnerships - employee direct creditors Realize cashflow linkages, values, contingency cushions Isolate the Best Group Prospects

#2 – PRODUCT POSSIBILITIES Understand competitive S/W of products Assess sales & service costs Determine segment preferences Entrench on boarding culture Push pre-approved transaction switches Emphasize non-price values Coordinate universal channel product messaging Innovate S/C elimination Create Product Portfolio Values

#3 – DELIVERY CHANNEL CHOICES Identify member access choices Link access preferences with all FI’s Select channel investment targets Assess channel vulnerabilities Optimize segment-channel attract values Examples: - urban seniors – branch facilities - suburban families – evening/weekend access - entrepreneurs – business ATM functionality Investigate channel partnerships Integrate robust website/call centre agents Understand breakthrough trends – social networking Your Choices – Members Primary Choices

#4 – PROMOTION & COMMUNICATIONS Identify target audiences and messages Avoid shotgun expenditures Build segment information and education values Isolate preferred communications channels Customize delivery channel messages/maintain universal themes Script “calls to action” in everything Improve personalization of collateral materials Increase e-mail etiquette throughout Role Play Face-to-Face Messages

#5 – ACTION RESEARCH Uncover action catalysts in member and prospect segments Determine current and future relationship preferences Develop continuous, economical research methodologies “Mine” the member relationship database constantly Avoid “nice to know” syndicated studies Test customized value propositions with panels Evaluate an “incubator site” – brick & click Be Proactive With Research Findings

#6 – RELATIONSHIP VALUE EXPERIENCES Neutralize commoditization vulnerabilities Convert “quality of service” into “depositor care” Activate proactive relationship commitments Construct segment specific value propositions Motivate staff as to the value catalysts in total propositions Magnify attractiveness and stickiness of your value chains Concentrate on specific sales and service portfolios to build integrated member benefits Capture Increased Member Cashflow

SIX PACK STRATEGY SOLUTION An integrated deposit/cashflow series of segment specific values to quench your liquidity thirst WESI “Burp” Stop the Commoditization Cancer

AGM & DEVELOPMENT CONFERENCE CUCU AGM & DEVELOPMENT CONFERENCE Deposit Generation & Retention Workshop Thank You Pat Palmer pat@whereeaglessoar.com