NFCDCU Saturday

1
NFCDCUSaturday June 12, 2004Union
Settlement Federal Credit Union

• Getting Members to Save and Borrow

2
USFCU - Who we are

• Chartered on April 22, 1957
• Community Charter serving New York Citys East
  Harlem Community
• 8.4 Million in Assets
• 3.4 Million in Loans
• 4,217 Members 5,182 Accounts

3
Services Offered

• Loans
• Personal,
• Vacation,
• Student,
• Computers,
• Credit Cards ,
• Micro Enterprise and Business,
• Personal and Business Real Estate,
• Home Equity
• Participations
• 
  

• Shares
• Regular Shares,
• Share Drafts,
• Holiday Clubs,
• Youth Accounts,
• Business Accounts
• Organization Club Accounts
• Share Certificates to Organizations
• Non Member Shares and Share CertificatesEducatio
  n IDAs for YAP
• Interactive Voice Response System

4
4 of Our Many Successes

• Holiday Club Accounts
• Computer Savings Accounts
• Individual Development Accounts
• 24 Hour Loan Center

5
Holiday Club Accounts

• Club Year extends from October 10th to September
  30th each year
• Members open accounts and sign a new agreement
  from October 10th to December 31st each year
• Minimum Deposit of 5.00
• Dividends paid on balances of 250 or more at
  rate of 1.5, credited to the account monthly
• Accounts are usually disbursed within the 1st 4
  business days of October
• Members choice
• have a check mailed OR
• their account credited

6
Holiday Clubs Statistics

• 2003 Actuals
• 677 Accounts for 321,000
• 2004 Projections
• 845 Accounts for 372,000

7
Computer Savings Account

• Collaboration with Per Scholas and Union
  Settlement Association to
• Offer Internet-ready refurbished computers to
  community residents and USAs Program
  Participants for less than 250
• USFCU would permit interested residents both
  credit union members and non-members alike- to
  deposit regularly into a designated account from
  September 1st to November 30th, 2002
• Per Scholas would deliver the computers, ready
  for use with all the software installed by
  December 20th, 2002
• RESULTS 125 computers were delivered and
  distributed to community residents

8
Individual Development Accounts

• Collaboration with a Community Based
  Organization, Youth Action Programs and Homes, to
  offer Education IDAs to their program
  participants / students.
• Their participants both work for YAP and attend
  school. They are required to deposit 25 of their
  income.
• They have a 2 to 1 match with a time frame of 9
  months, January to September of each year.
• USFCU Role is that of the depository institution
• YAP identifies participants and refers them to us
  to open an account.
• RESULTS 25 accounts, average monthly deposit of
  100 per account, per month for 9 months,
  collective balances of 22,500.

9
Bilingual 24 Hour Loan Center

• Goals
• Increase Consumer loan balances and volume.
• Increase members access to loan applications 24
  hours a day, 7 days a week.
• Expedite response time to loan requests.
• Reduce staff time spent analyzing and
  underwriting personal loans.

10
Research a 24 Hour Loan Center

• NYCfNACs Assistance
• Presentations by Vendors
• Boards Decision
• Cost 500 per month, unlimited applications,
• 250 at signing
• Implementation
• 1 page of information completed by USFCU
  detailing our loan criteria
• ½ hour training by vendor for key staff
  responsible to review and give final approvals
• Tested service and implemented program in
  October of 2003

11
Digital Dialogues Responsibility

• Issue us a toll free telephone number and a link
  on our Web Site
• Completely Computer Based
• They take application
• Request and analyze the credit report
• Perform the Loan Underwriting Summary
• Decision in 10 Seconds or less
• They do not deny loans, but refer them to the
  credit union for further review and a decision

12
USFCUS Responsibilty

• Review all applications presented by Digital
  Dialogue
• Make Final Loan Decision
• Verify income matches stated by member on
  application
• Collect 5.00 for the credit report
• Ensure compliance with our policy
• Make copies of proof of income for file
• Have member review and sign application
• Payout loan

13
RESULTS 24 Hour Loan Center

• As of June 1, 2004
• Total Applications 93 347,200
• Approved/Disbursed 33 87,200
• Approved/Pending 2 57,000
• Counter Offers/ 7 16,500
• Disbursed
• Holds 2 21,000
• Withdrawn 4 52,500
• No C. U. Account 1 1,500
• Rejects 44 111,500

14
Unanticipated Bonuses

• Our credit committee loves the underwriting
  summary and credit reports. They find them very
  detailed, easy to read and understand.
• Our auditor had similar comments.
• Members are pleased and we have had very positive
  feedback regarding the service and the customer
  service representatives.
• Approved loan volume has generated enough income
  to pay for the program in the First Year.
• We advertise in our quarterly newsletter, have
  statement stuffers we pass out over the window
  and include in all receipts we mail and we have
  had magnets made to distribute.