The presentation materials from the 2007 CEO Strategies Week events held November 26–30, 2007 by CU*Answers.

1. Making the
“Partnering With You”
Challenge of 2006 a Reality
Collaboration Workshop
CU*Answers CEO Strategies Week
November 26-30, 2007

2. Setting the Stage
We have extra capacity
We wish to serve as many members as possible
We wish to secure the future of our firms, our staffs, and
even ourselves
In the long term, it might not be enough to go after
members one at a time
Large blocks of members are being traded, sold,
abandoned
It’s time to act individually...it’s time to act collaboratively
If you don’t believe these statements, if your CU’s business plan doesn’t
agree with these statements, then we need to talk
It’s all about perspective...do you see yourself as part of a network?
2

3. Trading Places
Members as a Block of Opportunity
CUs Under 1,000 Members Leaving the Market
2004 2007 # Change % Change
IL 232 193 39 -16.8%
IN 51 40 11 -21.6% 19
14
MI 62 48 14 -22.6%
39
OH 175 121 54 -30.9% 54
11
WI 97 78 19 -19.6%
617 480 137 -1.11%
Change 137 -22.2%
3

4. Trading Places
Members as a Block of Opportunity
CUs 1,000-5,000 Members Leaving the Market
2004 2007 # Change % Change
IL 181 166 15 -8.3%
IN 103 94 9 -8.7% 16
27
MI 148 121 27 -18.2%
15
OH 204 174 30 -14.7% 30
9
WI 108 92 16 -14.8%
744 647 97 -0.65%
Change 97 -13.0%
4

5. Trading Places
Members as a Block of Opportunity
CUs 5,000-10,000 Members Leaving the Market
2004 2007 # Change % Change
IL 33 31 2 -6.1%
IN 34 30 4 -11.8% 3
19
MI 95 76 19 -20.0%
2
OH 68 62 6 -8.8% 6
4
WI 43 40 3 -7.0%
273 239 34 -0.54%
Change 34 -12.5%
5

6. Trading Places
Members as a Block of Opportunity
CUs 10,000+ Members Leaving the Market
2004 2007 # Change % Change
IL 55 55 0 0.00%
IN 44 44 0 0.00% 4
7
MI 122 115 7 -6.09%
0
OH 73 68 5 -7.35% 5
0
WI 46 42 4 -9.52%
340 324 16 -0.23%
Change 16 -4.7%
6

7. Our Specialty...Our Market Niche
Matching Your Expertise With These Members’ Needs
Total # of CUs Leaving the Market CU*BASE Partners
# of CUs
Under 1,000 3
42
1,000-5,000 42
67
5,000-10,000 37
56 95
24
10,000+ 31
Our business models relate well to
the shift in our industry
We are not going away; we are on the
edge of adding more to our ranks,
both CUs and their memberships
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8. www.cuasterisk.com
Inspiring Centers of Collaboration and Strategies for Growth
If a CUSO could be at the center, be the gravity for collaboration...why
couldn’t your credit union? Does your credit union’s business plan
include collaboration as a growth strategy?
8

9. www.cuasterisk.com
Inspiring Centers of Collaboration and Strategies for Growth
If a CUSO could be at the center, be the gravity for collaboration...why
couldn’t your credit union? Does your credit union’s business plan
include collaboration as a growth strategy?
9

10. Collaboration Is a Solution
Collaboration is a Competitive Edge For Growth
From the 2007 CEO Strategies event to
the 2008 Business Plan
Hunting for innovation also means inspiring
others to hunt, gathering an audience of
hunters, then responding to their lead...and
benefiting from them recognizing both our
response and leadership in driving executable solutions
In other words...
Winning at the old game, inspiring a new game, and
executing the transition from the past to the
present...and making a buck along the way
10

11. On the Road to a New Future
2006 CEO Strategies Event
Acquiring Credit Unions
– What if CU*Answers could find credit union
opportunities for credit unions?
– New Age Strategies
• A new age consolidation strategy
• A new age networked business strategy
Growing a Network
– We can innovate
Marketing Your Intentions to the Industry
– Prototype credit union brochure
The Scholarship Program
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12. Acquiring Credit Unions
Inspiring Opportunities
What if CU*Answers could find (inspire) credit union
opportunities for credit unions?
Putting Our $$ Where Our Mouth Is
• Financial support for credit union
collaborations $4,000 waived member fees per
month in 2007
Waiving member fees for one year
for new membership blocks
• Tools for collaborative strategies Major investment in multi-corp
software development with 2 active
Multi-corp, SRS templates, and other
partners in 2007
misc. shared business models
National events such as Filene,
• Selling the idea to the credit union
CURTS, NACUSO...anywhere that
marketplace will listen
12

13. www.cuasterisk.com
Inspiring Centers of Collaboration and Strategies for Growth
FISCAL YEAR 2004 2005 2006 2007
Count Members Count Members Count Members Count Members
CU*BASE to CU*BASE mergers 1 3,301 1 5,727 1 2,602 2 4,456
Outside mergers 5 15,750 4 6,095 1 1,816
Migrations to online 1 5,966 1 20,271
Migrations to CU*NW 1 (1,228)
Conversions 6 50,568 11 115,018 11 87,138 11 94,578
Deconversions 1 (1,906) 4 (81,989)
NET TOTALS 12 69,619 16 126,840 15 92,572 19 39,132
Whether it’s the CUSO bringing in new partners, or
credit unions bringing in new partners, our
collaboration and our individual business plans are
linked to network growth
13

14. www.cuasterisk.com
Inspiring Centers of Collaboration and Strategies for Growth
FISCAL YEAR 2004 2005 2006 2007
Count Members Count Members Count Members Count Members
Beyond that, 1 our network 2,602
CU*BASE to CU*BASE mergers 1 3,301 5,727 1 2 4,456
Outside mergers offers aggressive
5 15,750 4 6,095 1 1,816
financial support to de 5,966
Migrations to online 1 1 20,271
Migrations to CU*NW
novo credit union efforts (1,228)
1
Conversions 6 50,568 11 115,018 11 87,138 11 94,578
as well
Deconversions 1 (1,906) 4 (81,989)
NET TOTALS 12 69,619 16 126,840 15 92,572 19 39,132
Whether it’s the CUSO bringing in new partners, or
credit unions bringing in new partners, our
collaboration and our individual business plans are
linked to network growth
14

15. Acquiring Credit Unions
New Age Strategies
Direct support for credit unions Attract credit unions to the
whose business plan is to CU*Answers collaborative who
grow and better serve their see the value in partnering and
members through strategic participating in an operational
partnerships with other credit network - A New Age
union charters - A New Age Networked Business
Consolidation Strategy Strategy
These are credit unions who These are credit unions who
want to lead from the driver’s recognize the need to extend
seat and be proactive their model into the future and
acquirers of partners want to accomplish that
through partnerships
Two stories, two tracks, two ways to get the job done
15

16. New Age Consolidation Strategy
The Affinity Group Story
In one year, Affinity Group CU went from $37M to $120M
of member assets combined into one network
Uses a unique combination of multi-corp and
independent CU files to lead the new organization
Expanded the employee team to 58 serving 20,000
members daily
Participate in 5 different CUSOs
Affinity Group CU has aggressive
service goals for 2008
16

17. New Age Networked Business Strategy
The Shared Resources and Staff (SRS) Story
These are models of how to build shared businesses for key
credit union operational needs
They are available to any of our partners to use directly, one-
on-one between the CUSO and their credit union
They are available for any of our CUSO partners to use to
start businesses directly with their owners and clients
They are available to any credit union
with the mindset to start a peer-to-peer
business with other credit unions
We hope they are working
templates for collaborative
businesses that fuel
credit union growth
17

18. New Age Networked Business Strategy
The Shared Resources and Staff (SRS) Story
Can we inspire a new wave of innovative collaboration
before it’s too late?
Will our leaders seize the power of network business
development?
Can credit unions use the vendor model
as a template for a new network design?
So when you think SRS is just about
CU*Answers and Xtend making money as
vendors, you have it all wrong...
It is about inspiring CU leaders with templates
that assure them it can be done
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19. Growing a Network
Do We Have the Components To Collaborate Efficiently?
Servicing an
Servicing a Servicing a
Employee
Corporation Membership
Base
Business policies, Communicating and Nurturing credit union
procedures, creating value with advocates and
compliance, strategies, credit union building the careers of
leadership... consumers our employees
To effectively collaborate and service every element of a credit union, we
need tools that allow us to coordinate the keys to success
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20. Growing a Network
Do We Have the Intent to Drive Opportunity Through
Collaboration?
Point to Point
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21. Growing a Network
Do We Have the Intent to Drive Opportunity Through
Collaboration?
What is the
opportunity, and
where is it
focused?
Point to Point
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22. Growing a Network
Do We Have the Intent to Drive Opportunity Through
Collaboration?
A Hub
22

23. Growing a Network
Do We Have the Intent to Drive Opportunity Through
Collaboration?
What is the
opportunity, and
where is it
focused?
A Hub
23

24. Growing a Network
Do We Have the Intent to Drive Opportunity Through
Collaboration?
A Network
24

25. Growing a Network
Do We Have the Intent to Drive Opportunity Through
Collaboration?
What is the
opportunity, and
where is it
focused?
A Network
25

26. Growing a Network
Do We Have the Intent to Drive Opportunity Through
Collaboration?
Which is bigger? The
opportunity of one, or
the opportunity of all?
A network multiplies
the work of one into an
opportunity for all of its
participants
So as leaders and builders of businesses, can we turn away from a model that
magnifies the opportunity for every one of us?
We need to build, buy, trade, and find opportunity as a collaborative
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27. Acting On Our Beliefs
“Okay, I see the light. I’m going to link together all
these membership bases and build an organization,
or I’m going to change my organization so it can be
part of a network of credit union membership basis.
So how do I merge?”

28. It’s Not a One Trick Pony
Network Strategies Allow Many Opportunities for Collaboration
It’s not surprising that CUs always seem to assume that
collaboration equals merger
Everywhere you look, merger consultants are popping
up and people with M&A skills are seeing CUs as a
potential audience
Two schools of thought for all of us:
– Anti-merger: How can we show that collaboration doesn’t mean
consolidation?
– Effective mergers: How can we create a process that allows us
to earn from consolidation?
The trick for CU*Answers and this network is to create
an environment where individuals with totally opposite
points of view coexist and succeed together
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29. Marketing Your Intentions
To Compete, You Need a Clear Competitive Advantage
Have you hung out your shingle?
Do you have a message that might be seen as a better
way?
Are you building processes and strategies to be
successful at collaboration?
Can you communicate your skills?
Can you negotiate diversity?
Can you inspire collaboration?
Can you win the next opportunity?
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30. Hanging Out Our Collaborative’s Shingle
Our Partnership’s Strategy for Collaborative Growth
A Turnaround Program
– An investment in the continued success of credit unions, one
charter at a time
– An investment in building futures with new network partners
– An investment in securing an opportunity for one of our network
partners based on a worse-case scenario
– Banking on our peers
– Banking on members
– Banking on our philosophy
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31. Scholarship Program
How many candidates should we consider each year?
What are the criteria for selecting worthy candidates?
Investment maximums?
Should we get sponsors from our owners only?
Contract terms?
How should we market?
Which states?
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32. Conclusion
At the core of everything is one simple belief: When
people collectively work on the goals and aspirations of
their partners more than their own, good things happen
CU*Answers is about the business plans of credit
unions; credit unions are about the dreams and hopes of
members
A cascading collaboration to simply improve the situation
of people, one person at a time
How can we lose?
32