Membership Enhancement Program Overview

1
Membership EnhancementProgram Overview

• September 2009

2
Contents

• What is Invest in America
• Results
• Why it Works
• How it Works
• Opportunities for Credit Unions
• Why Sign Up?
• Marketing Materials
• Marketing Support
• Getting Started
• Current Offers
• IIA Leasing Program
• Contacts

3
What is Invest in America

• A membership enhancement program that offers
  credit union members (90 million nationally)
  discounts on products and services, provided by
  U.S. based companies
• Utilizing the credit unions (7,800 nationally)
  ability to leverage their unique relationship
  with their members to market the offers
• Provides incremental sales to partner companies
• Provides a stimulus to the economy
• Increases the value of credit union membership

4
IIA Results
Automotive
Sprint
As of 8/31/09
5
Why it Works

• Credit union demographics match IIA vision
• 70 of credit unions began as occupational-based
  credit unions
• A great fit for the culture of value, trust and
  cooperative principals espoused by credit unions
• Members trust their credit unions to provide
• Low-cost, high quality financial services
• Real promotional offers, not gimmicks
• Founded on the principal of Made in America
• Credit unions and their members are rallying to
  the concept of Investing in America by supporting
  U.S. companies

6
How It Works

• CUcorp contracts with U.S. based companies to
  offer exclusive discount programs for credit
  union members. Current programs include
  Chrysler, GM, Ford, Sprint, THOR RV and Allied
  Moving and Storage.
• CUcorp markets the programs directly to credit
  unions and through individual state leagues and
  league service corporations.
• Credit unions that want to participate must
  complete the enrollment form located on
  www.lovemycreditunion.org under sign-up under the
  partner center tab.
• CUcorp provides free turn-key marketing materials
  to supporting credit unions to use in marketing
  the discounts to their members.
• Members utilize the discounts, saving money and
  increasing the value placed on credit union
  membership.

7
Member Enhancement Program
Domestic Auto Program

• Discounts/Financing Options for
• Recreational Vehicles

CU Member Rewards
Coming soon
Coming soon
Hotels
Computers
Others
Motorcycles
Boats
8
Opportunities for Credit Unions

• Extremely positive press coverage that
  differentiates credit unions from other financial
  institutions by helping support U.S. jobs and our
  economy.
• The member discounts provide real value to
  members versus gimmicks offered by other
  organizations.
• Increase the value of credit union membership by
  providing discounts exclusive to credit union
  members.
• Member enhancements provide credit unions a
  catalyst for membership and loan growth.
• Opportunities to educate members on credit union
  advantages including lower loan rates, lower
  fees, and better service.

9
Why Should a Credit Union Sign-Up?

• Receive latest program updates sent directly to
  the credit union point person
• Access to special offers and discounts that can
  be extended to your members on top of base
  program benefits.
• Access to credit union level sales data and
  member survey reports
• Email addresses of those members who have
  requested an authorization code that have not yet
  purchased a vehicle for credit follow up and
  cross marketing purposes
• Free marketing materials

10
Marketing Materials

• Receive FREE Marketing Kits (design, production
  and printing)
• Kits include
• 2 lobby posters and 100 take-ones for each branch
• CD with online elements
• Statement stuffers mailed directly to fulfillment
  house (credit union must submit order form)
• Simply complete the online order form at
  http//www.lovemycreditunion.org/IIA_Marketing_Mat
  erials_Order_Form_307.html

11
Marketing Materials

• Supporting credit unions have access to a
  complete line of marketing materials they can
  download and customize.
• Complete campaigns with partner approved
  materials including
• Suggested Web Site Home Page Layout
• Posters (22 X 28 8.5 X 11)
• Statement Inserts
• Web Banners
• Newsletter Articles
• E-Blast Message
• On-Hold Message
• Additional informational includes downloadable
  webinars for implementation details, marketing
  guidelines, PR tips and FAQs.
• All materials are available to supporting credit
  unions on the Marketing Materials page in the
  (http//www.lovemycreditunion.org/Marketing_Materi
  als_148.html) Partner Center.

12
Additional Marketing Support

• Comprehensive online advertising and social media
  efforts which includes key word search
  optimization, advertising on key sites and social
  media through Twitter, Facebook, Blogger and
  YouTube, etc.
• Online media campaign
• September through year end
• Promoting the GM and Chrysler vehicle discount
  programs
• Compliments free marketing kits available to
  supporting credit unions

• 70 for display advertising on niche auto and
  financing sites such as cars.com, Edmunds.com,
  bankrate.com, and Kelley Blue Book
• 30 on search sites like Google, Yahoo and Bing

13
Getting Started

• Recommend steps for getting started
• Order your free materials and schedule a mailing.
• Chose one of the available marketing campaigns.
• Train staff and distribute frontline staff
  resource guide. (e-mailed the first of every
  month to supporting credit unions)
• Incorporate the Suggested Web Site Home Page
  Layout on your Web site with the appropriate web
  banner that links to www.lovemycreditunion.org,
  where your members can learn about the program
  details.
• Place posters and statement inserts in your
  branches.
• Send your members e-blast messages.
• Use the prepared newsletter article in your next
  mailing.
• Record an on-hold message with the provided copy.
• Consider issuing a press release.

14
Chrysler Current Offer

• Through September 30, 2009
• Consumers who purchase a Chrysler, Dodge, or Jeep
  vehicle can save up to 6,000 on select 2009
  models
• For complete details visit http//www.lovemycredit
  union.org/Chrysler_347.html

15
GM Current Offer

• Through September 30, 2009
• Supplier Pricing
• Lease program available to participating credit
  unions in eligible markets (NY, NJ, FL, MI, PA)
• Supplier Pricing plus up to 4,750 in Lease Cash
  Back
• For complete details visit http//www.lovemycredit
  union.org/GM_171.html

16
THOR RV Current Offer

• September 1 December 31, 2009
• Discounts from 300 to 1,000 based on type of
  vehicle
• Popular RV brands including
• For complete details visit http//www.lovemycredit
  union.org/Thor_313.html

17
Sprint Current Offer

• Member Discounts
• 10 off most regularly priced service plans
• Waived activation fee on new accounts
• Waived upgrade fees
• Business Discounts
• 15 discount on most corporate recurring charges
• Waived activation (new accounts) and upgrade fees
• Equipment discounts
• 20 off accessories
• For complete details visit http//www.lovemycredit
  union.org/Sprint_169.html

18
Allied Moving Storage Current Offer

• September 1 August 31, 2010
• Nationwide Credit Union Member Discounts
• Members receive corporate rates (up to a 60
  discount)
• Extra value to offer members receiving mortgage
  loans
• For complete details visit http//www.lovemycredit
  union.org/Allied_Moving_and_Storage_170.html

19
Ford Lease Pilot

• August 4- October 31, 2009
• Northeast market area.
• Includes select Ford and Mercury vehicles.
• For complete details visit http//www.lovemycredit
  union.org/Ford_177.html

20
Leasing Pilot Overview

• OEM (Original Equipment Manufacturer) and Lease
  Partner will fund a residual escrow account equal
  to 10 of ALG (Automotive Lease Guide) residual
  value to cover end of lease losses
• Lease Partner will obtain residual value
  insurance to cover losses exceeding 10 of the
  ALG residual value
• League and credit unions establish advertisable
  APR rate
• Credit unions promote to their members all
  leasing offers on eligible models
• OEM will market lease payments to general public
  to increase dealership traffic
• Dealers will turn to participating credit unions
  for lease financing on all eligible models

21
Lease Process - Origination

• Dealer directs current or potential member to
  participating credit unions via Route One,
  DealerTrac, AppTrac or other systems
• Credit Union makes credit decision, if necessary,
  sends Adverse Action letter to lessee
• Credit Union charges member the established
  acquisition fee
• Dealer prints lease agreement from their Dealer
  Management System (DMS) or Lease Partner web site
• Dealer closes the lease and processes the title
• Credit union charges dealer for manufacturers
  lease subvention as an administrative fee
• Dealer is reimbursed by OEM for administrative
  fee
• Credit union forwards administrative fee and
  acquisition fee to lease partner
• Lease Partner deposits administrative fee along
  with Lease Partner contribution into escrow
  account

22
Lease Process Life of Lease

• Credit union receives and posts payments to
  principle, interest and sales tax
• Credit union remits sales tax monthly to Lease
  Partner
• Lease Partner files sales tax reports and remits
  tax to government entities
• Credit union provides normal collections and
  repossession activities for non-payments

23
Lease Process Lease End

• Lease Partner manages member education at lease
  end and remarketing (vehicle disposition) process
• Member has first opportunity to purchase the
  vehicle
• Originating dealer has second opportunity to
  purchase the vehicle
• Vehicle sold through national network of dealers
• Credit union has no responsibility to dispose of
  returned vehicles
• Lease Partner sells the vehicle and uses the
  sales proceeds plus the Residual Escrow Account
  (If applicable) to pay off the ALG residual with
  the credit union.

24
IIA Program Contacts

• Kim Irwin, VP of Invest in America
• 800.262.6285 x 250Kim.Irwin_at_cucorp.com
•  
• Lisa Robinson, VP of Marketing and
  Sales800.262.6285 x 539Lisa.Robinson_at_cucorp.com
•  
• Drew Cook, Director of Domestic Automotive
  Program800.262.6285 x 273Drew.Cook_at_cucorp.com
• Alan Babcock, Director of Membership Enhancement
  Programs800.262.6285 x 252Alan.Babcock_at_cucorp.co
  m

• Angela Hall, Sprint Project Coordinator800.262.62
  85 x 521Angela.Hall_at_cucorp.com
• Nancy Sawicki, Sales and Marketing
  Assistant800.262.6285 x 534Nancy.Sawicki_at_cucorp.
  com
• Gary Siegel, National Business Consultant, Inside
  Sales
• 800.262.6285 x 586
• Gary.Siegel_at_cucorp.com
• Ryan Egan, National Business Consultant, Inside
  Sales
• 800.262.6285 x 326
• Ryan.Egan_at_cucorp.com

25
National Business Consultants

• Robert Bearden , National Business Consultant
• (California, Nevada, Oregon, Washington)
• 800.262.6285 x 751
• Robert.Bearden_at_cucorp.com
• Curt Belaney, National Business Consultant
  (Connecticut, Delaware, Maine, Maryland,
  Massachusetts, New Hampshire, New Jersey, New
  York, Ohio, Pennsylvania, Rhode Island, Vermont,
  Virginia, Washington D.C.)800.262.6285 x
  543Curt.Belaney_at_cucorp.com

• Colleen Meek, National Business Consultant
  (Arkansas, Arizona, Colorado, Idaho, Indiana,
  Iowa, Kansas, Minnesota, Missouri, Montana,
  Nebraska, New Mexico, North Dakota, Oklahoma,
  South Dakota, Texas, Utah, Wyoming)800.262.6285
  x 530Colleen.Meek_at_cucorp.com
•  
• Leslie Norush, National Business
  Consultant(Alabama, Florida, Georgia, Illinois,
  Kentucky, Louisiana, Mississippi, North Carolina,
  South Carolina, Tennessee and Wisconsin)800.262.6
  285 x 542Leslie.Norush_at_cucorp.com

26
Michigan Credit Union League Representatives

• Stephanie KlocinskiHuron Valley/Jackson/
• Moon/Downriver800.262.6285 x 398Stephanie.Klocki
  nski_at_cucorp.com
•  
• Ron MartinMetro East/Battle Creek800.262.6285 x
  398Ronald.Martin_at_mcul.org
•  

• Darl McLeanBlue Ox/Paul Bunyon, Upper
  Peninsula800.262.6285 x 398Darl.McLean_at_mcul.org
•  
• Carolyn MillerGrand River/Kalamazoo/Southwestern
  800.262.6285 x 398Carolyn.Miller_at_mcul.org
•  
• Robin WybengaFlint/Lasing/Mid Michigan800.262.62
  85 x 398Robin.Wybenga_at_mcul.org