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

Credit Union Central of Canada Agenda Key Priorities Key Priorities 3. Comments & Questions

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

Credit Union Central of Canada Priorities 2002 Business Priorities for the System (Major areas of focus for CUCC this year) E-BusinessE-Business Wealth ManagementWealth Management Learning and DevelopmentLearning and Development Payments & Transaction ProcessingPayments & Transaction Processing System RestructuringSystem Restructuring

Credit Union Central of Canada Priorities Update E-Business - Connectivity Bringing together a member’s total co-operative portfolio: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. MemberDirectSelf-service, Internet Banking Channel: e.g. MemberDirect And service from In-Branch Channel via C.U. Staff e.g. cudirectAnd service from In-Branch Channel via C.U. Staff e.g. cudirect

Credit Union Central of Canada Priorities Update E-Business - Electronic Document Presentment Canadian Central has a “generic state of readiness”, with national agreementsCanadian 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 paymentWith 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 websiteWith webdoxs™, operated by e-route Inc., members can receive and pay bills online directly at their FI’s website

Credit Union Central of Canada Priorities Update E-Business - Emerging Technologies Canadian Central working with CUCBC on a national e-business strategy, including P2P payments, account aggregationCanadian Central working with CUCBC on a national e-business strategy, including P2P payments, account aggregation Working on market analysis of mobile commerceWorking 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 monthsNational chip card strategy developed for the credit union system; Interac Association developing debit chip card strategy over the next 18 months

Credit Union Central of Canada Priorities Update Wealth Management- CAM/CSI/MemberCare Merger Benefits:Benefits: –Integrated Wealth Management Strategy –Single Point of Contact –Comprehensive Suite of Products –Consistent Advisory Services –Integrated Data Solutions

Credit Union Central of Canada Priorities Update Learning & Development - NLO National Learning Organization (NLO) - target implementation Jan 1, 2003National Learning Organization (NLO) - target implementation Jan 1, 2003 Mandate is to develop and deliver high-quality education programs for credit union systemMandate is to develop and deliver high-quality education programs for credit union system Enhance access, eliminate duplicationEnhance access, eliminate duplication Business Case approved early this yearBusiness Case approved early this year New Executive Director - Cheryl Byrne - hiredNew Executive Director - Cheryl Byrne - hired

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

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

Credit Union Central of Canada Priorities Update System Restructuring External: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:Internal: –Refining Canadian Central’s By-Laws to accommodate system restructuring initiatives

Credit Union Central of Canada Priorities Update Other Priorities Stakeholder Satisfaction Survey - to ensure Canadian Central is responsive to owners’ needsStakeholder Satisfaction Survey - to ensure Canadian Central is responsive to owners’ needs

Credit Union Central of Canada Priorities In Brief Key Projects Identified... Work to increase C.U. presence in SME marketWork to increase C.U. presence in SME market Enhanced research capabilitiesEnhanced research capabilities Risk & Fraud managementRisk & Fraud management E-business strategyE-business strategy Harmonization of key legislative areasHarmonization of key legislative areas NLO rolloutNLO rollout Support of system restructuringSupport of system restructuring

Credit Union Central of Canada 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:

Credit Union Central of Canada Thank you Questions?Questions? Comments?Comments?