1. The Credit Union Business Model – Growth Strategies

2. Seven Pillars of Credit Union Growth

3. Grow or Die

4. Growth Is Not For Everyone Weakened Financial Condition - Limit balance sheet growth -Improve risk profile -Limit reliance on volatile funding liabilities such as high cost deposits -Work to remedy problems -However, continue prudent lending activities

5. The Credit Union Model Physical branch presence Traditional deposits and personal loans business Better rates Better service

6. Growth of Caribbean Credit Unions (2002 – 2009) Source: WOCCU

7. When The Going Gets Tough, The Tough Go Marketing

10. Telemarketing

11. Shut-Up

12. Television Ads

14. Member Satisfaction Surveys Satisfied members are easily wooed by the competition

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17. Retention - The New Marketing

18. Why Retention? Expensive to acquire new member Existing members potentially profitable These members become promoters

19. How to Achieve Member Retention?

20. Sell

21. Cross-sell

22. Up-sell

23. Create Channels of Meaningful Interaction

26. TEXT TO WIN! 1.On a scale of 1-10, how likely are you to recommend a friend, family member or colleague to join our credit union? 2.What new service can the credit union offer you now? 3.What can our credit union do right now to completely delight you? 4.What is the most important suggestion you can offer your credit union today?

28. Loyalty “A dog is the only thing on earth that loves you more than it loves itself” - Josh Billings

29. Activity Draw the feeling of member loyalty! Share your drawing with the persons sitting next to you.

30. Why Loyalty Matters Loyal advocates (Promoters) -Stay longer -Buy more products -Refer more members -Cost less to service -Worth more than detractors

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32. TECHNOLOGY

34. Use Technology For Member Loyalty and Growth Credit union website E-mail auto responder Online-applications Blackberry Messenger Download financial statements and other info. Facebook page Follow us on Twitter Blog for member comments YouTube for delivery of training

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38. Why Youth?

39. Youths Know What Youths Need!

40. Youths Have Energy!

41. Youths Know Technology!

42. How To Involve Youth? Involve schools Set-up junior credit unions Deliver youth financial literacy training Recruit youth volunteers Develop special youth saving instruments Establish scholarship programmes Hire youth interns

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44. You Decide! LoanShares Existing :$20,000$10,000 Proposed:$20,000$ 5,000 Total$40,000$15,000 Projected DSR- 32% A few late payments Interest rate: 1% per month

45. -Based Lending

46. Risk-based Lending Meets the borrowing needs of all members Prices loans based on member’s credit risk Benefits first-time borrowers with little credit history Benefits those attempting to repair their credit, due to previous mis-handling Benefits borrowers with strong credit by charging them lower interest rate

47. Risk-based Lending Requires: Strong lending policies Specialized lending staff Good monitoring system Strong collection efforts Adequate capital base

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51. Credit Union Mergers

52. Benefits of Mergers Immediate Growth Synergies and Reduced costs Greater variety of services More branches Economies of scale Greater opportunities for employees Improved performance especially for acquired credit union

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55. Member Life Needs Insurance Education funding Housing financing Debt management Retirement Income Estate planning Wills and Trusts

56. The Results!

57. Thank You and Best Wishes!

58. Cecil Sylvester cecvas@yahoo.com