© 2009 Coopera Consulting. Original information contained within this presentation is copyrighted and cannot be used without expressed written consent from Coopera Consulting.

The Hispanic Opportunity Navigator

The HON is an assessment that identifies opportunities and challenges unique to your credit union. It is a report that becomes your strategic plan for effectively reaching the Hispanic market. It includes:

Demographic Market ScanAnalysis of Current Hispanic MembershipBranch AnalysisCultural ScoreCredit Union Road MapNeeds Assessment – Groundwork and 4P’s

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Demographic Market ScanAnalysis of Current Hispanic MembershipBranch AnalysisCultural ScoreCredit Union Road MapNeeds Assessment – Groundwork and 4P’s

The Demographic Market Scan contains maps and graphs depicting the demographic make-up of the Hispanic market around your field of membership.The Demographic Market Scan includes:

Distribution of HispanicsPercent of Hispanics EmployedPercent of Households that Prefer SpanishMedian Income of Hispanic HouseholdsAggregate Income of Hispanic HouseholdsMoney Service BusinessesCounty Population Projections

As well as our analysis of what this information means for your credit union. NEXT

Demographic Market ScanAnalysis of Current Hispanic MembershipBranch AnalysisCultural ScoreCredit Union Road MapNeeds Assessment – Groundwork and 4P’s

The Analysis of Current Hispanic Membership will provide a screen of membership to establish a baseline of the number of Hispanics being served and their contribution to the credit union’s bottom line.

We Triangulate

Proprietary Algorithms Studying Origins of Members’

First and Last Names

Zip Code DataConsumer Self-Reported Data Indicating Ethnicity

This allows us to analyze:

How your Hispanic membership drives down your median member age

How loyal your Hispanic membership is compared to your general membership

Whether your Hispanic membership is more or less accustomed to U.S. systems

Financial performance of your Hispanic membership including average deposits, average loan volume, delinquency rates, and loan penetration

Proportion of market share that you have gained as your members

CountAverage

AgeMedian

AgeAvg Years

at CU

Median Years at

CU % of TotalChecking Penetration

Accounts per

MemberAverage Deposits

Median Deposits

Loan Penetration

Hispanic Members 3,266 33.0 31 4.8 3.0 8.5% 52.0% 2.4 $3,079 $189 28.2%Overall Membership 38,241 42.2 43 7.2 4.6 100.0% 54.8% 2.8 $8,807 $525 36.9%

Overall Median Age-Adjusted Membership 26,078 32 31 6.1 4.07 68.2% 50.0% 2.5 $3,663 $251 30.9%Hispanic Upward Assimilated 1533 32 29 5.16 3.28 4.0% 52.0% 2.5 $3,388 $259 26.7%

Hispanic Downward Assimilated 1701 34.2 32 4.53 2.84 4.4% 53.0% 2.3 $2,845 $151 29.6%

The following is an example of some of the data credit unions haven’t had access to until now:

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Demographic Market ScanAnalysis of Current Hispanic MembershipBranch AnalysisCultural ScoreCredit Union Road MapNeeds Assessment – Groundwork and 4P’s

We examine specific areas of the exterior and interior of pertinent branches and provide recommendations that you can choose to adapt to be more welcoming to the Hispanic community.

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Demographic Market ScanAnalysis of Current Hispanic MembershipBranch AnalysisCultural ScoreCredit Union Road MapNeeds Assessment – Groundwork and 4P’s

The Cultural Score continuum is a guide to observe the progress of the credit union over time. It is a measurement based on our experience with credit unions of whether the organization is excited by the philosophical and business imperative to serve the Hispanic market well. We arrive at your score by interviewing and surveying your staff and board.

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Demographic Market ScanAnalysis of Current Hispanic MembershipBranch AnalysisCultural ScoreCredit Union Road MapNeeds Assessment – Groundwork and 4P’s

As we measure your progress on your road to serve Hispanics, we utilize an extensive checklist of best practice tactics. This data, together with a secondary research analysis of your policies, collateral, planning documents and other information, allows us to position you along the road from a Discovery credit union to a Best Practice credit union. This baseline can be measured from year to year to ensure progress.

Our checklist tests for over 200 best practice tactics in the areas of:

Groundwork

Personnel

Products

Processes, and

Promotion/Marketing Strategies

And you will know where you currently stand with your Hispanic outreach efforts as we pinpoint your position along the road to becoming a Best Practice credit union:

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Demographic Market ScanAnalysis of Current Hispanic MembershipBranch AnalysisCultural ScoreCredit Union Road MapNeeds Assessment – Groundwork and 4P’s

Most importantly, the Needs Assessment section of the HON organizes all of the information gathered into a report outlining manageable steps. The recommendations are organized into Tier 1 (short-term) recommendations and Tier 2 (mid-term) recommendations. It prioritizes the components of your strategy giving you confidence that you are investing your money wisely on the activities that will provide you the results you seek.

Groundwork

T1 Board of directors has, collaboratively with management, developed a strategic plan with milestones and goals for serving Hispanic populations

Complete a comprehensive strategic plan on an annual basis. Review collectively as a management group and with board of directors on a quarterly basis. Engagement of board members is as important as gaining their buy-in, because it will help them become champions of the initiative.

T1 Credit union knows how many Hispanic members they currently have

There is no consistent method of tracking Hispanic membership. While a new field was added to the system to measure the success of the Credit Union Remittance Program, the information is not analyzed consistently and staff usage of the field is inconsistent. To measure growth it will be important to establish a baseline of current Hispanic members. A combination of internal tracking, surveying methods and analyzing member data with appropriate algorithms to determine likelihood of ethnicity and ethnicity are options to explore.

T2 Board of directors has received adequate training to understand Hispanic populations

Most board members are receptive to serving Hispanics and would like more information about how to serve this market. However, there is doubt from some board members about the risks involved in serving this market and about the profitability potential that exists in serving Hispanics. Schedule training on topics that will help board members understand the Hispanic opportunity, the Hispanic culture and an approach to reaching Hispanics. Regular sessions with the board will help them become true champions of this initiative who are committed for the long term.

T2 Credit union has conducted research of competitors in the alternative financial service sector

Conduct an annual market scan of alternative financial services providers in the area, including payday lenders, title lenders, pawn shops, rent-to-own shops, abusive auto lenders, remittance shops and check-cashing outlets. Research should include prices and the customer profile of those who use these services.

Personnel

T1 All employees are trained on the business case for serving Hispanics

All staff should be trained on the Hispanic opportunity. New employee orientation should also leverage Coopera's training expertise and include information about the business case including the Hispanic opportunity and the extent to which the Hispanic market is underserved.

T2 All employees receive training on upselling to the Hispanic market

Formal training should be scheduled for those employees directly working with the Hispanic market.

T2 Employees interfacing with the Hispanic market are trained on effectively cross-selling to the Hispanic market

Formal training should be scheduled for those employees directly working with the Hispanic market. An emphasis should be placed on credit, homeownership, financial education, remittance services, credit building loans and specialty loans.

Products

T1 Credit union provides special purpose loans to pay for quinceañera expenses.

Quinceañeras are traditional celebrations in the Hispanic community that are often costly. Repackaging an existing personal loan to meet this need would be appealing to this market.

T1 Credit union provides special purpose loans to pay for travel expenses.

This product will target the 1st generation Hispanic who is traveling at least on a yearly basis to their native country in Latin America.

Processes

T1 Credit union tracks language preference, place of birth, and income of members while maintaining anti-discriminatory practices

Utilize appended data resources available through Coopera and commit to a regular schedule of measurement of progress.

Promotion and Marketing

Strategy

T1 Credit union has developed a marketing plan to reach Hispanic populations

While Hispanic outreach is a part of the credit union’s overall marketing plans, a specific marketing plan should be developed emphasizing word of mouth and grassroots strategies to reach primary and secondary targets.

T1 Credit union has developed brand guidelines that specify how, when, and where messaging are to be used for marketing to the Hispanic community

Brand guidelines will ensure marketing materials for the Hispanic community are consistent.

Print Collateral, Advertising, Signage

T1 Relevant signage has been translated literally Not all relevant signage has been translated including bilingual branch hours posted on doors, patriot act requirements and NCUA signs.

T1 Relevant signage uses culturally relevant images and messages

Not all relevant signage has been translated including bilingual branch hours posted on doors, patriot act requirements and NCUA signs.

Web Site/Technology

T2 Credit union has a culturally relevant Spanish Web site

The credit union does not have a Spanish Web site.

T2 Spanish applications are available online The credit union does not have Spanish information on the Web site.

T2 Spanish consumer financial education information is available online

Consider subscribing to El Poder es Tuyo, which is an interactive Web tool linking to the credit union’s Web site that provides consumer financial education.

Location

T1 Credit union has a branch which is welcoming to Hispanics

There are many positive aspects of the environment that staff at the East Des Moines and Denison branches have created. They are very welcoming. However, more can be done to increase visibility that these branches serve Hispanics through signage and other environmental cues. Refer to the Branch Analysis.

T1 Branch is children-friendly and is relevant to Hispanic children

More can be done at the Denison and E. Des Moines branches to create a welcoming environment for Hispanic children. Consider having a children’s area with English and Spanish materials such as coloring books and financial education materials.

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Coopera Consulting866.518.0214

info@cooperaconsulting.com www.CooperaConsulting.com

© 2009 Coopera Consulting. Original information contained within this presentation is copyrighted and cannot be used without expressed written consent from Coopera Consulting.

GROW BY SERVING THE LARGEST, FASTEST-GROWING, YOUNGEST, AND MOST UNDERSERVED COMMUNITY - HISPANICS