Innovative Approaches to Improving the Financial Capability of Servicemembers Presented by: Blake Allison CEO & President, FELA Chairman, VALOR

Financial Illiteracy is a Real Threat to the Military Community 2 Sources: Department of Defense’s Office of Hearings and Appeals (DOHA) “Promoting Financial Literacy Among Military Families: Gaps in Resources and Recommendations for Services” developed by Blue Star Families

The Military Community Has Spoken 90% of the respondents to the Blue Star Survey:  Would like preventative financial education The military community would like:  To include spouses and families  Assistance from outside the command environment The military community understands:  Financial struggles preface workforce struggles  They are targets for expensive financial products 3

What is the Market Response?  Streamlining the delivery of education  Growth in Public-Private partnerships to solve the problem  More scalable solutions  Improving access to coaches and counselors  Utilization of innovative technology o Outcomes measurement o Program performance transparency = Data o Accurate ROIs for stakeholders 4

What Gaps Still Need To Be Addressed?  Financial challenges related to their service  Financial challenges ALL consumers face  Personalization of education over “one-size-fits-all” programs  "Splintered Resources" are underused and unevaluated  Knowledge ≠ Behavior Change  Preventative solutions over reactive approaches  Empower financial coaches and counselors 5

VALOR is Designed to be that Bridge VALOR, or Veterans Assistance for Learning, Opportunity and Readiness, is:  A financial empowerment program for veterans, service members, and their families  A public-private partnership that promotes income stability and long-term financial security  A holistic community program that engages partners and organizations already serving the military community 6

The VALOR Model Employers Community Partners/VSOs Educators Financial Services Public Services VALOR connects veterans VALOR connects veterans Veterans and their families are connected to VALOR through VSOs VALOR identifies personal needs, goals, and threats to their financial security Participants are then connected back VSOs who provide assistance based on identified needs. VALOR operates as a hub-and-spoke model. 10

Who is Involved in VALOR? 8 SPONSORS

Financial Education Made Easy  Assess knowledge and identify an individual’s needs  Measure behaviors, habits, attitudes, and preferences of individuals  Respond to needs by delivering education through adaptive model  9

Personalized Education and Support How does VALOR help individuals get started, navigate, connect and engage in improving their financial health?  Robust library of multi-media content delivered dynamically  Elements of gamification  Earn badges  Unlock rewards  Personalized ‘action plans’  Access to coaches and counselors  Comparative user analytics  Social media integration 10

Data-Driven Model Data for short-, medium-, and long-term outcomes generated through:  Pre- and post-assessments  Wellness check-ups  Task, goal, and badge completion  On demand ROI calculations  Behavioral scorecards “measure” habits, interests, confidence levels, and outlook  Correlations between improvements in knowledge and behavior 11 “Scorecards” measure, track, and demonstrate improvements in an individual’s behaviors over time.

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Accessible and Actionable Data 13

Targeted Communications and Feedback 14 Innovative tools for better engagement and outcomes management.

Participant Benefits Consumers/individuals benefit from LifeCents through:  Engaging, personalized, and relevant education  Understanding of how current behaviors impact financial well-being  Action plans to achieve goals and improve behaviors  Access to tools/resources relevant to them 15

Partner Benefits Partners benefit from VALOR and LifeCents by:  Implementing a turnkey financial education solution  Having flexibility to customize content for their needs  Accessing data on short-, medium, and long-term outcomes  Connecting to individuals/consumers based on well-defined needs and interests 16 Alpha, Retired military and DoD employee “I used this personal online financial health assessment called LifeCents [through VALOR]...This program is a must for future financial wellness management.”

Q & A Blake Allison Chairman