Title: Ready to Go to Live With You well, sort of
1Ready to Go to Live With You (well, sort of)
- Payday Lending Focus Group
- Meeting 2
- April 23, 2008
2Agenda
- We Think the Product is Ready
- Review MicroLender by LenderVP (Geoff Johnson)
- Contrasting MicroLender to other software
products (Mary Lornson, Prospera CU) - We Think the Process is Ready
- A partnership between LenderVP and GoodMoney
(Geoff Johnson, Randy Karnes, and Ken Eiden,
Prospera CU) - Consulting for payday lending program startup
(Ken Eiden) - Using GoodMoney as your program brand (Ken Eiden)
- Are You Ready to Get Started?
- Working with first movers (looking for 6)
- What are the steps?
- June Leadership Conference (Randy Karnes)
3We Think the Product is Ready
- Review MicroLender by LenderVP (Geoff Johnson)
- Contrasting MicroLender to other software
products (Mary Lornson, Prospera CU)
4We Think the Product is Ready
- Its the old chicken or the egg dilemma
- To do payday lending with your members, youll
need to have the confidence that you can process
a payday loan, efficiently blend payday lending
into your operations, and handle success in your
program - That starts with a tool that helps you envision
the future MicroLender by LenderVP - Armed with the confidence to move forward, you
then need to craft a program GoodMoneySM
5MicroLender by LenderVPA Tool For the Future A
Partnership You Can Count On
- MicroLender responding to all CUs who want to do
payday lending - CUAnswers settingthe foundation forCUBASE
users
6MicroLender by LenderVPA Tool For the Future A
Partnership You Can Count On
- Lets take a look at the tool
7MicroLender by LenderVPA Tool For the Future A
Partnership You Can Count On
- MicroLender is currently in production with
Prospera CU and part of their GoodMoney offering
to their members - Prospera has the day-to-day experience with
payday lending to be an excellent partner and
leader in the development of this tool - Lets get their point of view
Its the CUAnswers way Build it with the
people who use it, get it to market, and innovate
based on the real world
8Traditional Payday Software
- Challenges
- Cost (Set up as a pure profit model)
- Complex for users
- Integration of forms
- Collections
- Notes, member comments
- Upgrades (Communication)
Its the CUAnswers way Make sure the cost of
the tools doesnt eat up all the profits, share
the risk, go into business together, and both
sides earn from lending
9MicroLender by LenderVPA Tool For the Future A
Partnership You Can Count On
- Back to the old chicken or the egg dilemma
- To do payday lending with your members, youll
need to have the confidence that you can process
a payday loan, efficiently blend payday lending
into your operations, and handle success in your
program - So are you ready to get started?
Its the CUAnswers way We recognize that a
tool is not a business for your CU...you need a
business plan to get people on board and ready to
make that first loan
10We Think the Process is Ready
- A partnership between LenderVP and GoodMoney
(Geoff Johnson, Randy Karnes, and Ken Eiden,
Prospera CU) - Consulting for payday lending program startup
(Ken Eiden) - Using GoodMoney as your program brand (Ken
Eiden)
11A Unique PartnershipCUAnswers and CUs in it for
the Long Term
Its the CUAnswers way Building strong and
diverse solutions takes a network. Payday
lending is a big part of our business plans Will
it be a big part of your business plan in 2008
and 2009?
12Working With A PeerWhy reinvent the wheel?
- Prospera CU announces a program for CUs based on
their experience and track record GoodMoney is
now a process you can bring to your CU
www.myprospera.com
13Why create a turn-key solution?
- Credit Union Charter Page 112 STAT. 914(4)
Credit unions, unlike many other participants in
the financial services market, are exempt from
Federal and most State taxes because they are
member-owned, democratically operated,
not-for-profit organizations generally managed by
volunteer boards of directors and because they
have the specified mission of meeting the credit
and savings needs of consumers, especially those
of modest means.
14Why create a turn-key solution?
- 12-20 of credit union members are using payday
loans - Reach traditional payday loan consumer
- Provide alternative for current members
- Create positive financial futures
- Competitive rather than legislative solution
- Protect bottom end of the market
15The GoodMoneySM ProgramConsulting
- Credit Union will receive
- Initial and ongoing training
- Comprehensive training and operations manual
- Advertising and public relations support
- Marketing objectives
- Target market
- Reaching target market
- Characteristics of target market
- Assistance with rationale for obtaining board
approval - Transfer of knowledge, approval
criteria/decisioning factors
16The GoodMoneySM ProgramUsing Our Brand With Your
Members
- Credit Union will receive
- All items that are included in consulting PLUS
- Use of trademarked name, GoodMoney (trademark
terms will apply) - Nationally recognized program
- Herb Wegner Memorial Award 2007
- USA Today
- New York Times
- Trade Journals
- Local media
- In addition to advertising and public relations
support we would provide suggested marketing
activities accompanied with marketing materials
and templates
17The GoodMoneySM ProgramBuilding a Winning Payday
Lending Program for Your CU
18The GoodMoneySM ProgramBuilding a Winning Payday
Lending Program for Your CU
Timeline for GoodMoney availability July 1, 2008
19Getting Started
- Working with first movers (looking for 6)
- What are the steps?
- June Leadership Conference (Randy Karnes)
20Looking For First-Movers
- First things first we need to build a focus
group and set of programs to learn with and from - In the next 30-60 days, we need to identify a
group of CUs who can participate in the launch of
both Prosperas GoodMoney business process and
the MicroLender payday lending tool - Are you ready to be part of the first wave?
21GoodMoney 1Business Program Consulting With a
Brand
- GoodMoney Offer
- Use of trademarked GoodMoney name
- Initial and ongoing training
- Comprehensive training and operations manual
- Advertising and public relations
support/marketing materials - Assistance with rationale for obtaining board
approval - Transfer of knowledge, approval
criteria/decisioning factors
- MicroLender Offer
- Web-based LOS as described in the current Pay
Day Advance System MicroLender User and
Configuration Guide - Direct connection to CLVerify for payday lending
data and decisioning - User documentation and training
- LenderVP client support
22GoodMoney 2Business Program Consulting Without
a Brand
- GoodMoney Offer
- Initial and ongoing training
- Comprehensive training and operations manual
- Advertising and public relations
support/marketing materials - Assistance with rationale for obtaining board
approval - Transfer of knowledge, approval
criteria/decisioning factors
- MicroLender Offer
- Web-based LOS as described in the current Pay
Day Advance System MicroLender User and
Configuration Guide - Direct connection to CLVerify for payday lending
data and decisioning - User documentation and training
- LenderVP client support
23Other Options
- GoodMoney consulting without a CUAnswers payday
lending tool - Create a CUBASE loan category that emulates
payday lending without buying MicroLender - You may already have a relationship with an
alternative tool provider - GoodMoney can help
- MicroLender payday lending tools without a
business program consultant - You may already have a consultant/branded
product, but you need a tool - You may decide to go it alone, and you need a
tool - MicroLender can help
Todays meeting is about a three-way partnership
your CU, GoodMoney, and MicroLender If you need
a different option, lets talk
24Now for the rest of the story...First-Mover
Pricing
- Five-year contract with both GoodMoney and
MicroLender - Startup fees can be divided into 60 equal
payments over the life of your payday lending
program
How can you go wrong? Good partners, great
tools, and a price where you can afford to get
busy
25Things To Be Worked Out
- Remember that this is only our second focus group
meeting on developing payday lending - Our intention is to work with a small group of
committed credit unions to smooth out the rough
spots, get our training and education materials
up to speed, and work through the details related
to logistics and unforeseen complications - If youre ready to get started, we will get a
packet of contracts and marketing materials out
to you as quickly as possible for your
consideration
26The Next Update
- In the next 30-60 days, Prospera and CUAnswers
will be finalizing our at large marketing
business plans and you will start to see some big
announcements - The next big announcement will be at the
Leadership Conference on June 18
Thanks for coming!