A Radically New Playing Field

1
A Radically New Playing Field
If someone offered you an exclusive 6 to 8 year
opportunity to be the only financial services
provider in a city, would you take it?

• Dave Preter
• Sarah Canepa Bang
• Juli Anne Callis
• Ron Daly

2
Changing the Rules

• Create new game to exploit CU strengths
• Taking the CU to the member
• New members and new business to CU network
• New Alliances
• Long-term operation expense reduction and/or
  redistribution

3
Virtual City-Wide Shared Branches
4
Virtual City-Wide Shared
Branch secure transactional insured
e-Security
Community Outreach Financial Literacy
New Businesses CUs Help my small business?
CU ATM Kiosk Network remote loans deposits
Remote ATM Kiosk Network remote loans
deposits
Current Members Home, Office, Road
Businesses Accts remote deposits, CC Readers,
Loans, cash management
New Members What the heck is a CU?
5
How Would a Virtual Branch Change the Playing
Field?

• Disruptive technology with plug-ins
• New cell phones, PDAs, laptops, RFID, credit card
  and remote deposit readers, ATMs Kiosks
• Exclusive CU Providers for 6 to 8 years
• Reorganizes Branching Strategy (spending 1 to 5
  Million per branch)
• Puts CUs across entire community just like B of A
  (without the capital expense)

6
What Does It Mean for the Industry?

• New members and new businesses
• Alliances outside CU Industry players
• Telecom hardware providers
• Stores
• School systems
• New/More Products Opportunities
• Youngest members growing up with technology
• Everyone with Wi-Fi can see it
• Everything wireless plugs in
• Remote deposits by businesses individuals
• Payday lending loan opportunities
• Credit card ACH processing

7

If someone offered you an exclusive 6 to 8 year
opportunity to be the only financial services
provider in a city, would you take it? City of
Fairfax, VA 6.5 square miles Herndon, VA 4.1
square miles Vienna, VA 2.5 square miles

• Action Item - Create cooperative CUSO with
  high-level national industry focus that
• pulls parties together
• forms alliances with network providers
• increases CU Industry buying power
• acquires network cloud opportunities
• executes business model