10 Young Adult Innovations: From The 30 Under 30 Group

ISBN 978-1-932795-56-1
CU Tomorrow Business Brief
From the 30 Under 30 Group

10 Young Adult Innovations:
ideas grow here
PO Box 2998 Ben Rogers

Madison, WI 53701-2998 Driver, CU Tomorrow
Phone (608) 231-8550
Filene Research Institute
PUBLICATION #177 (2/09)
www.filene.org ISBN 978-1-932795-56-1
Ben Rogers
Driver, CU Tomorrow
Copyright © 2009 by Filene Research Institute. All rights reserved.
ISBN 978-1-932795-56-1
Printed in U.S.A.
About Us
Deeply embedded in the credit union tradition is an ongoing search

for better ways to understand and serve credit union members. Open
inquiry, the free flow of ideas, and debate are essential parts of the
true democratic process.
The Filene Research Institute is a 501(c)(3) not-for-profit research
organization dedicated to scientific and thoughtful analysis about
issues affecting the future of consumer finance. Through indepen-
dent research and innovation programs, the Institute examines issues
vital to the future of credit unions.
Ideas grow through thoughtful and scientific analysis of top-priority
consumer, public policy, and credit union competitive issues.
Researchers are given considerable latitude in their exploration and
studies of these high-priority issues.
CU Tomorrow is a Filene Research Institute clearinghouse for credit

union young adult strategies. The project publishes research and
open-source business plans to help credit unions attract younger
members, promising young professionals, and younger volunteers.
Initiatives include:
• Business briefs—open-source, young adult business plans for
credit unions.
• 30 Under 30—entrepreneurial SWAT team of young credit
union professionals.
• Community—CU Tomorrow and Filene Web sites for publi-
cation and idea sharing.
• Leagues—statewide collaboration to implement CU Tomor-
row programs.
• Recruiting—talented interns and new hires from high-profile
universities.
• Research—academic research, focus groups, online surveys,
and interviews.
Visit www.cutomorrow.org for more details.
Acknowledgments
The Filene Research Institute would like to thank PSCU Financial

Services, the nation’s largest credit union service organization, for its
generous financial support of past, present, and future studies of the
under-30 population and for recognizing the potential that young
adults represent for the continued success of the credit union system.
We also gratefully acknowledge the Credit Union Executive Society,
Fiserv, and the Corporate Credit Union Network for their financial
and intellectual support of research and projects focused on credit
union growth.
We also thank the California Credit Union League, which hosted the
final 30 Under 30 presentations at its annual convention in Novem-
ber 2008. The assistance of Mark Klinkert, Diane Spiegel, and
Patrick Solares was invaluable. We would like to thank the “curious
observers” who spent time with us in San Francisco:
• Jessica Hrubes, Credit Union Executive Society
• Josh Jones, Credit Union National Association
• Barry Lingelbach, CUNA Mutual Group
• Jessica Vogel, National Credit Union Administration
• Jeff Jordan, Omniture, Inc.
Finally, even the best ideas cannot go far without a long-term com-
mitment. We are grateful that the Credit Union National Association
sees value in the 30 Under 30 model and has committed to continu-
ing the project in pursuit of its member growth and professional
development goals.
v
vi
Table of Contents
Executive Summary and Commentary ix
About the Author xi
Chapter 1 Younger Members 1
Chapter 2 Younger Employees 43
Chapter 3 Younger Volunteers 63
Chapter 4 Conclusion 69
Appendix 1 Change Your Savings Additional Information 73
Appendix 2 Win–Win Savings Additional Information 75
Appendix 3 iAdvanceCU.com Additional Information 81
vii
Executive Summary and Commentary
By Ben Rogers, Credit unions need to attract younger members, talented young pro-
Driver, CU Tomorrow fessionals, and a new generation of volunteers. Since its inception in
2007, the Filene Research Institute’s 30 Under 30 group has worked
toward these goals.
In 2007 Filene invited talented young credit union professionals
from around the country to apply for a spot to innovate alongside
their peers. The final 30 Under 30 group emerged from 167 appli-
cants. For several months, the group focused on research and infor-
mation gathering regarding millennials’ financial habits and needs.
Later, members broke into smaller groups to develop business inno-
vation plans to help credit unions better serve this emerging young
group.
This report highlights those 10 business plans, each of which aligns
a facet of young adult life with credit unions’ needs. From recruiting
programs to innovative savings products, and from volunteer panels
to employee consulting, this national group of rising credit union
talent shows what kind of innovation is needed to keep credit unions
relevant and essential for a new generation of members and lead-
ers. Ideas were generated for younger members, for talented young
professionals, and for younger volunteers.
Plans for Younger Members

• Change Your Savings: Harnesses the power of debit to fund wor-
thy goals.
• CUre Card: Members improve their communities with a credit
union card—“a dime every time.”
• GrassHopper: Life planning meets credit union products.
• Mortgage Down Payment Accelerator: Rewards those who are
saving for a home.
• Win–Win Savings: Prize-based savings for young adults.
• What’s Next?: A responsible way to build credit and save.
Plans for Talented Young Professionals

• Shared Staffing: Short-term sabbaticals for professional develop-
ment and credit union cooperation.
• Gen Y Fast Track: Mentorships and job rotation for superior
retention.
• iAdvanceCU.com: Credit union career paths and improved
recruiting.
ix
A Plan for Younger Volunteers
• Member Advisory Panel (MAP): Connecting young adult volun-
teers with credit union leaders.
The 30 Under 30 group is both from and for the entire credit union
system. Each business plan details the product’s overall aim, out-
lines its benefits for the member and the credit union, explains how
to put it into practice at your own credit union, and shows what
further considerations, like marketing, human resources, or finance,
apply to each. This is brainstorming you don’t have to do yourself,
and in most cases the groups have already beta tested their ideas
in their markets and share their real-world insights. All ideas from
the 30 Under 30 group are open-source. We encourage you to use,
tweak, or rewrite them for your credit union’s benefit. Each group
has volunteered to share its expertise and the research that wouldn’t
fit in this final report.
The aging of credit unions’ membership is only the iceberg’s tip of
the challenge the industry faces. Marketplace and regulatory realities
will continue to change at a breakneck pace, and financial institu-
tions of all stripes risk obsolescence if they can’t stay ahead of that
change. Engaging ambitious young professionals and giving them
enough room to suggest, to improve, and to innovate will be essen-
tial for credit unions over the next 10 years.
As pointed out in this group’s interim report, Mapping the River: A
Report from 30 Under 30, insights without effort disappear quickly;
they don’t become innovation. Filene’s 30 Under 30 group sees
innovation as more than just flashes of insight. Innovation is like a
river. It starts small, but it starts somewhere. It begins when ideas and
effort align. Like a river, it grows as other ideas feed into it. It takes
time to get to its end. Sometimes it barely moves, and sometimes it
roars.
In this final 30 Under 30 report, full efforts follow on initial insights.
The results are the seeds for 10 open-source opportunities for credit
unions.
x
About the Author
Ben Rogers
The author, Ben Rogers, is driver of the Filene Research Institute’s
CU Tomorrow project and director of the Institute’s 30 Under 30
group. Ben is a former editor of The CEO Report and chairman of
the National Directors’ Convention. Ben holds a master’s degree
in journalism from Northwestern University and graduated cum
laude from Brigham Young University with degrees in English and
philosophy.
xi
Chapter 1
Younger Members
Young adults’ habits, along with their slang,

may change from year to year, but their finan-
cial needs do not. Credit unions succeed by
making it easier for young adults to save and
borrow on their own terms, even if that means
tweaking existing products or preconceptions.
Change Your Savings
Opportunity
The United States maintains a poor personal savings rate. In a
recent focus group, consumers described savings as important, but
described the actual process as painful or difficult. The pain of saving
can be reduced by having the option to save a small amount each
time a purchase is made.
Consumers have defined Bank of America’s Keep the Change
program as a painless way to save and an easy way to balance their
checkbooks with round numbers. But they have also said that it’s
very easy to transfer their
savings right back into their
checking account. The Keep the The pain of saving can be reduced by having the option to save
Change program and Wacho- a small amount each time a purchase is made.
via’s Way2Save program have
not addressed the fact that con-
sumers have different goals when attempting to save. These institu-
tions attempted to launch their products as “one size fits all.”
Solution
Change Your Savings will operate in a similar fashion to Bank of
America’s Keep the Change program by rounding up point-of-sale
(POS) transactions to the nearest dollar and transferring the funds
to a savings account. Change Your Savings is different from other
programs in that it attempts to meet the individual savings goals of
specific Gen Y markets. Several savings options are offered.
Tuition Savings Option

The tuition savings option will receive a deposit to a Coverdell
Educational Savings Account (CESA) at the end of the business day
for all purchases made during that day. This account can receive a
deposit maximum of $2,000 annually. Members will achieve tax
benefits from participating in this type of account, but if they with-
draw funds prior to the beneficiary’s 18th birthday or use the funds
2
for purposes other than education, they will be penalized. More than
one checking account may make deposits to the CESA (e.g., parents
and grandparents may link their checking accounts to the savings
account).
Auto Savings Option

The auto savings option will receive a deposit to a non-interest-
bearing club account at the end of the business day for all purchases
made that day. When the club account reaches maturity, the mem-
ber will receive a savings match option of 10%, up to $250, if the
account is redeemed in conjunction with an auto loan at the credit
union. The member can also opt to remove the funds without any
incentives at time of maturity. Finally, the club account can be bro-
ken, but penalties will apply.
House Savings Option

The house savings option will receive a deposit to a non-interest-
bearing club account at the end of each business day for all purchases
made that day. When the club account reaches maturity, the mem-
ber will receive a savings match option of 10%, up to $2,000, if the
account is redeemed in conjunction with a mortgage at the credit
union. The member can also opt to remove the funds without any
incentives at time of maturity. Finally, the club account can be bro-
ken, but penalties will apply.
Debt Reduction Option

The debt reduction option will receive a deposit to a savings account
at the end of each business day for all purchases made that day. On
a monthly basis, an ACH transaction will be made to the member’s
loan or will be transferred internally to their loan.
Other Savings Option

The other savings option will receive a deposit to an interest-bearing
club account at the end of each business day for all purchases made
that day. When the club account reaches maturity, the funds will be
automatically transferred into the member’s checking account. The
club account can be broken, but with penalties and loss of interest.
Member Benefits
Consumers who participate in programs like Keep the Change and
Way2Save fully benefit from having an easy way to save, but they
do not benefit from saving for a specific goal. Consumers have
specifically noted that they transfer the money from these accounts
back to their checking account without the benefit of savings and
3
eliminating future debt. In addition to easier saving, members can
expect the following benefits:
• Easy and painless way to save with tax relief, to eliminate debt,
to save for a down payment, or just to meet a short-term savings
goal.
• Eliminate future college debt.
• Ability to receive contributions from multiple debit cards.
• Ability to save with premium incentives to help reach goal.
• Eliminate probability of negative equity on an auto loan.
Credit Union Benefits

The Change Your Savings program encourages saving for different
goals, and it packages incentives on the basis of whether a loan is
obtained by the credit union. While programs like Keep the Change
and Way2Save only increase low-cost deposits, non-interest income,
and checking account penetration, Change Your Savings also benefits
the credit union with loan penetration. The benefits to credit unions
can be described as follows:
• Increased checking account penetration.
• Increased low-cost deposits and overall net interest margin.
• Increased interchange income.
• Increased loan penetration through auto and home savings
options.
• Increased core deposits.
• Improved loyalty of Gen Y by engaging them at an early age.
Target Market
Primary Target Market
• Current member.
• Have a checking account at credit union or live within one-mile
radius of a branch location.
• Have children under the age of 18.
• Household income of $50,000 or greater.
Secondary Market
• Non-member.
• Have children under the age of 18.
• Household income of $50,000 or greater.
• Live within one-mile radius of a branch location.
4
Auto Savings Option
• Current member.
• Have an auto loan at credit union.
• Between the ages of 18 and 34.
Secondary Market
• Non-member.
Home Savings Option

• Current member.
• No mortgage loan at any financial institution.
• Have a checking account at credit union or no checking account
within one-mile radius.
Secondary Market
• Non-member.
• No mortgage loan at any financial institution.
Debt Savings Option

• Current member.
• Current unsecured debt of $5,000 or greater.
• Have a checking account at credit union or no checking account
within one-mile radius of branch.
Secondary Market
• Non-member.
5
• Current member.
• Have a checking account at credit union or no checking within
one-mile radius of branch.
Secondary Market
• Non-member.
Operational and Other Considerations

There are many ways the Change Your Savings program can be pack-
aged depending on the credit union’s needs and capabilities. Credit
unions should consider the following questions when packaging this
product:
• Can our processing system accommodate rounding POS transac-
tions to the nearest dollar, or should $1 be transferred for each
POS transaction? The rounding option is recommended; however,
some systems may not support this.
• Should a new suite of checking accounts be rolled out to accom-
modate this service, or can it be implemented as an add-on
service to existing checking accounts? Change Your Savings should
be introduced as an add-on service to existing checking accounts to
increase both value to members and non-interest income.
• Does our credit union need all savings options? Depending on
your credit union’s strategy, it may not be necessary to implement all
options at once or even at all.
• Can this process be automated with our core system, or do we
have a budget to look into customization? Automation is key. If
this process cannot be automated, the credit union may want to con-
sider what type of budget fits its goals for this program. From the beta
tests for this service, it was estimated that research and implementa-
tion will require 64 IT hours.
• Do we have a marketing budget to introduce this program, or
should we consider grassroots efforts? Proactive and consistent mar-
keting will enhance the results of this program.
6
• Do we have the staff to implement the program and train
employees in the program? Training is essential for employees. From
beta tests, the following training time is recommended:
■■ 24 hours for training program development, inclusive of proce-
dural plans.
■■ Approximately 2 hours for training class (employees and
trainer).
• What are the legal implications? Legal considerations should also
be made in the case of the Change Your Savings program. Recent
lawsuits between Bank of America and Every Penny Counts regard-
ing the technology behind the program mean credit unions should be
careful with this product. Consulting with legal counsel during the
early phases of product implementation is recommended.
Proof of Concept
Consumers who participated in
focus groups have indicated that
programs like Keep the Change
make saving painless. First
Financial Federal Credit Union,
Travis Credit Union, and Weber
State Credit Union are cur-
rently preparing to implement
beta testing of the Change Your
Savings program. First Financial
Federal Credit Union is seek-
ing to test the auto loan savings
option. Travis Credit Union is
seeking to test all of the Change
Change Your Savings Team, From Left to Right: Robin Hickey,
Your Savings options. Weber
First Financial Federal Credit Union; Dustin Allen, Weber
State Credit Union is seeking to
State Credit Union; and Matthew Prosneski, Travis Credit
test the CESA option. Results
Union
are yet to be determined.1
For more information about this project, please e-mail Josey Siegen
thaler at joseys@filene.org.
1 See Appendix 1 for a guide to implementation and examples of market-consumer research.
7
CUre Card Figure 1: CUre Card
Opportunity
CUre Card is a debit card for ages 15–25 that
donates a dime to a worthy cause every time
the card is swiped. The donations fund grants
aimed at social problems in a local community
or at the national level. The card offers a unique
opportunity to reach millennials with ideas that
attract them: social responsibility and collabora-
tion. Gen Y makes up about one-quarter of the
U.S. population,2 but credit unions derive only
about 12.5% of their membership from this
demographic.3 Clearly, there is a vast opportunity
for credit unions to increase membership by attracting young adults.
CUre Card is an effective conduit for increasing credit unions’ rel-
evance to Gen Y and for entering this market.
In addition to the sheer size of Gen Y, members of this generation
also possess strong spending power. From “Tough Customers: How
to Reach Generation Y,” author Joanna Krotz notes, “This generation
already spends an average $100 a week, or a stunning $150 billion a
year. And they influence another $50 billion in family purchases.”4
As this generation ages, both spending power and influence over the
economy will continue to increase. The oldest of this generation have
not yet reached age 30 and have not yet entered their peak borrow-
ing years. Now is the time for credit unions to form solid, lasting
relationships with them.
Credit unions are especially well positioned to appeal to one particu-
lar characteristic of Gen Y: its focus on social responsibility. Studies
show that members of this target market make many decisions on
the basis of social responsibility and that 89% of this demographic
would switch brands in favor of one associated with a good cause.5
Credit unions can gain members by offering socially responsible
plastic cards, but they can lose them just as easily if they do not offer
options like CUre Card, as the demand for such products is high.
2 Microsoft, www.microsoft.com/smallbusiness/resources/ArticleReader/website/default.aspx?Print=1&ArticleId=ToughcustomershowtoreachGenY.
3 2007–2008 Credit Union Environmental Scan Report (Washington, DC: Credit Union National Association, 2008), 4.
4 Microsoft, www.microsoft.com/smallbusiness/resources/marketing/market-research/tough-customers-how-to-reach-gen-y.aspx#
ToughcustomershowtoreachGenY.
5 Ibid.
8
Solution
CUre Card presents an opportunity to younger members by pro-
viding a new way for them to increase their personal commitment
to social responsibility. Generation Engage, a nonprofit group that
aims to increase civic participation among young adults, conducted
a survey of individuals under age 29 and found that nearly 70% of
respondents had volunteered
their time for community
This generation already spends an average $100 a week, or a service. Of that same group,
stunning $150 billion a year. And they influence another $50 nearly 60% had never donated
billion in family purchases. money to a cause. John Burnett,
professor of marketing at the
University of Denver’s Daniels
College of Business, says this about this demographic, “They are far
more socially conscious than any generation since World War II. They
believe in giving, participation in nonprofits, and in donations of
time and resources.”6 While this demographic cares about making an
impact in the community, its members might not currently be in the
financial position to make monetary contributions.
This is where CUre Card holds appeal: Members get the opportunity
to make a difference in their communities, become more civically
engaged, and provide financial support to worthwhile causes, but
without the concern of compromising their own financial security to
make it happen.
There are competitive products on the market, mostly in the form of
rewards cards, although American Express and Visa have also recently
developed cards that focus on philanthropic efforts. CUre Card
differentiates itself from other cards and also differentiates credit
unions from other financial institutions by supporting the credit
union philosophy of “not for profit, not for charity, but for service.”
CUre Card is different because of its collaborative nature that draws
together the efforts of all credit unions, a Web site that includes a
tracking system that creates a sense of ownership for the individual
and a community among card users and social entrepreneurs, and its
universal use by all credit union members in this demographic.
CUre Card stands out from the competition in the way it serves
communities. Unlike credit cards that donate small amounts to the
individual’s charity of choice every time the individual uses the card,
CUre Card combines the efforts of all cardholders to make a signifi-
cant contribution to a cause that will help build a future of social
responsibility. CUre Card helps members better understand the bot-
tom line to which they contribute, as well as how these contributions
6 Ibid.
9
add up with those from other card users throughout the entire credit
union system. CUre Card plays a role in increasing public under-
standing of the credit union difference.
The current market is primed for credit unions to draw attention
to themselves, to their strong financial performances, and to their
ability to serve members. CUre Card provides a new way to bring
positive media attention to credit unions, provides a service to
communities that are also feeling the weakened economy, and gives
young consumers—a typically underserved demographic—a product
that often begins a relationship with a primary financial institu-
tion. As margins continue to tighten, fee income is critical to credit
unions—as is the importance of attracting new, young members on
the verge of their prime borrowing years. CUre Card works to bring
in additional income and attract new members in a way that feels
good to them: through social responsibility.
Member Benefits
Members will financially benefit from CUre Card through access
to an exceptional plastic card program and exposure to additional
benefits of credit union membership. Using CUre Card is just as
convenient as using any debit card, but it offers something more.
Appealing to this generation’s desire to be part of something greater,
to fit into a community, and to make a difference, CUre Card will
fully integrate members into the credit union philosophy by making
them part of the effort. The complete program provides members:
• Access to an interactive Web site that tracks charitable contri-
butions and shows the significant impact members have made
through collective philanthropy.
• An opportunity to advocate for the social venture whose efforts
they most support.
• The possibility of creating their own programs to positively
impact their communities.
• A shared community with other CUre Card holders who are also
part of the credit union system.

Credit unions will tangibly benefit through increasing membership
numbers from a demographic that many firms are struggling to
reach. The primary focus of the program is not to generate revenue
but to increase credit unions’ long-term relevance through building
new relationships with potential members. This will, however, result
in increased revenue and increased lifetime value of a member.
CUre Card and the social entrepreneurship grants it funds will gen-
erate additional awareness of credit unions and their commitment
10
to communities, helping get the word out about the credit union
difference. Rather than saying credit unions are member-owned
financial cooperatives run by a volunteer board of directors, CUre
Card will show how credit unions use a spirit of cooperation to make
an impact and how membership can make a difference.
Target Market
Gen Y in the United States comprises more than 76 million indi-
viduals.7 CUre Card targets those individuals born between 1983
and 1992, or approximately one-half of the members of this gen-
eration. The 15–25-year-old CUre Card holder will be reached by
credit unions that participate in the program. When a credit union
partners with CUre Card, it receives debit cards with the CUre Card
graphic as well as its own logo, and marketing materials to distribute
via direct mail, online, and in-branch. In addition to these materials,
partner credit unions benefit from the appeal of a national image and
earned media, which may raise awareness of the program. Interactive
Web sites, blogs, and word of mouth will also be used to reach the
demographic. Costs for marketing to members beyond the market-
ing toolkit will fall to individual credit unions and may include paid
advertising in newspapers and on TV and radio.
The CUre Card program can work for the 94.5% of credit unions
that offer plastic card services.8 Strategic partnerships with estab-
lished, reputable organizations and the media attention this will
generate will help overcome the barrier of reaching all 8,200 credit
unions. It is not expected that all credit unions will sign up, but
through continued development and success, reaching out to all
credit unions that offer debit cards is a reasonable goal.

CUre Card is a debit card with a custom design and an interactive
Web site for all CUre Card holders to access. CUre Card provides
turnkey marketing and promotional products with the same look
that can be customized for each credit union, but the CUre Card
brand will remain consistent. Consistency in branding is important,
and credit unions win by sharing a similar look for this program in
order to emphasize its cooperative nature. Credit unions will use
the marketing tools in ways that are effective for their membership
or potential membership and can either attach the CUre Card to a
checking product they currently offer or introduce a new one that
integrates with a current product line and member needs.
7 Penelope Trunk, “What Gen Y Really Wants,” Time, www.time.com/time/magazine/article/0,9171,1640395,00.html.
8 Credit Union National Association, “Second-Quarter Debit Transactions Are Up,” www.cuna.org/newsnow/08/system080808-7.html.
11
This debit card functions just like any other debit card with the
exception that 10 cents of each transaction’s interchange income will
be contributed to the same national charity (“a dime every time”).
This national charity will administer a grant program, providing
funds to social entrepreneurs with solutions for improving their com-
munities. Each year, the number and amount of grants distributed
will be based on CUre Card usage, showing members’ direct control
over the program. Grant recipients will be selected through Web
site voting, as well as potential impact on a community. A flat rate
of 10 cents per transaction keeps CUre Card contributions simple.
It’s easy for the CUre Card holder to understand his or her impact:
When I swipe my CUre Card, I donate a dime every time.
Proof of Concept
Interchange income became the focus of our research because
research indicates it provides credit unions with an opportunity to
make a real impact without incurring new costs and without increas-
ing member fees. Further, it does not require additional efforts by
members outside normal behavior.
The credit union system generates a significant amount of inter-
change income each day—approximately $6.5 million (M). This
number considers that the average debit card transaction is roughly
$40 and the average percentage of interchange income generated for
a credit union with each debit transaction is 1.39%, or $0.56 per
transaction. While CUre Card would not contribute from all inter-
change income generated by credit unions, the realization of how
quickly these funds could grow indicates credit unions can make a
real difference for communities without significantly detracting from
an individual credit union’s bottom line. This is further supported
by credit union executive commentary that indicated CUre Card
is unlikely to cannibalize current interchange income. With only a
sliver of credit union member-
ship represented by those ages
15–25, and only about 35% The credit union system generates a significant amount of
debit card penetration among interchange income each day—approximately $6.5M.
this demographic, it appears
that 10 cents per transaction is
a small price to pay for most credit unions looking to increase their
debit card penetration among this age group. In fact, interchange
income generated from CUre Card could increase revenue from this
demographic by 80%.
One hundred percent of credit unions responding to a survey about
debit card interchange income indicated they are interested in learn-
ing more about increasing debit card penetration among young
adults. In this survey of 24 Oregon and Montana credit unions, the
12
results indicated that if these credit unions offered CUre Card to
their current 15–25-year-old membership, estimated revenue would
be $23,000 per month in contributions. These 24 credit unions
range in size from $810,000 to $866M in assets and have between 4
and 5,828 debit cardholders.
With the addition of just one of the largest credit unions in the
country—one that holds over $1 billion (B) in assets—one month’s
contributions would quickly increase to $525,000. Another way to
look at the potential is to consider the average debit card numbers
for the average-size U.S. credit union (about $87M in assets). With
12% participation from all credit unions nationwide, average contri-
butions generated would equal $325,000 per month.
This survey did not account for the growth in membership antici-
pated with the rollout of this new product and the associated
publicity. Calculations accounted for current numbers only, which
indicates even greater potential for revenue.
How to Get Started

Visit www.CUrecard.org and
read a detailed explanation
of the CUre Card concept.
This Web site also has tools to
measure interest from potential
members, social entrepreneurs,
and credit union personnel.
CUre Card will be brought
closer to rollout with advocacy
from credit unions expressing
their interest on www.CUrecard.
org or by encouraging current
CUre Card Team, From Left to Right: Brandi Melo, Rocky
card processors to make CUre
Mountain Credit Union; Chad Warneke, Oregonians
Card one of their available debit
Credit Union; Jill Jarman Nowacki, Credit Union National
cards for credit unions to select.
Association; and Mike Escudero, MBA Candidate at the
University of Southern California For more information about
this project, please e-mail Josey
Siegenthaler at joseys@filene.org.
13
GrassHopper: Jump with Confidence
Opportunity
Many students experience financial hardship after college because
their expectations of what opportunities their degree will bring are
unrealistic. With 55% of students relying on
student loan funding to complete their degree Figure 2: Sample Logo
(65% for four-year college students), a limited
deferment window for postgraduation repayment,
and other financial pressures associated with debt
acquired throughout college, many students do
not realize how much higher education can cost
after four or five years.9 Some believe that once
graduation comes, they will walk into high-paying
jobs and professional opportunities; however, these are commonly out
of reach for most graduates.
GrassHopper addresses this problem by providing a unique opportu-
nity for young adults to develop and test their college and young-life
plan against the realities of the marketplace. Through accurate and
realistic data, and managed expectations, young adults can success-
fully embark on their college adventure without falling into some of
the pitfalls associated with unrealistically matching postcollege costs
with job opportunities within their field of study.
Solution
Gen Y needs a service that resembles what Ameriprise Financial does
for baby boomers. But instead of helping identify retirement goals
and action plans, GrassHopper helps young adults identify their life
goals and develop a realistic plan to accomplish them. GrassHopper
provides the information needed to make these tough decisions
through research on college majors, salary expectations, and national
housing and job market environments and then matches credit
union products and services to help young adults achieve their goals.
While students are in high school, they are faced with tough deci-
sions that can make or break their future, and sometimes the advice
they receive from their parents is misguided or out of touch with
today’s marketplace realities. GrassHopper focuses on serving
students age 16 and older. The service entails a series of steps that
involve high-touch, face-to-face communication with a credit union
representative and the member, as well as low-touch communication,
via an online channel.
9 FinAid, “Student Loans,” www.finaid.org/loans.
14
The steps are as follows:
1. The member uses an online submission form to describe life goals
and how he or she plans to accomplish these goals.
2. The member meets face-to-face with a credit union representative
to review the information submitted online.
3. Field experts and online data resources help set the course for
making the plan a reality and potentially provide guidance for
areas of the plan that may need to be adjusted.
4. Another face-to-face meeting is held with the member, the credit
union representative, and a field expert, to discuss findings and
make adjustments if needed.
5. The last stage of this meeting involves the credit union matching
products and services with the member to help achieve his or her
goals and put him or her on track to financial independence and
security.
By matching credit union products and services with the goals of the
member, GrassHopper not only helps fulfill the needs of the member
but also creates a profitable member for the credit union over time.
The Market
As an industry, credit unions have experienced a decline in the num-
ber of young adult members. These members are vital to credit union
growth because they are in their prime borrowing years. According
to a CUNA report, Credit Union Growth Task Force, “The number
of members between the ages of 25 and 44 years old has declined
17 percentage points (from 55% of members to 38%) between 1985
and 2006.” The report also indicates that while overall membership
will grow by 5 million by 2010, the number of young adults will
decline by 2.5 million. Approximately 94% of young adults ages
19–24 don’t belong to a credit union.10
GrassHopper is a service that helps young adults validate their life
plan to determine how realistic their ideas are for achieving their life
goals. The opportunity lies in allowing credit unions to offer a ser-
vice that is needed and that attracts young adults as members, thus
increasing profitability per account. While young adults do need
financial literacy, this service is much more than that. It offers young
adults a chance to explore their plan for reaching life goals by validat-
ing through research and statistics how realistic their initial plans are
to attain those goals. This service helps put young adults on track so
that they don’t make huge financial mistakes that may affect their
future. GrassHopper helps young adults make educated decisions
10 CUNA, Credit Union Growth Task Force, summary report, August 18, 2006, 6.
15
and recommends credit union products and services to help them
accomplish their goals.
There are 76 million young adults in America today.11 These individ-
uals are making life decisions that will impact their financial future.
They’re deciding on which
schools to attend and how to
pay for college. In addition, The number of members between the ages of 25 and 44 years
they are faced with many other old has declined 17 percentage points (from 55% of members
life events, such as buying their to 38%) between 1985 and 2006.
first car, getting married, or
purchasing a home. These deci-
sions all benefit from guidance and create an opportunity for credit
unions to be the resource in funding and helping young adults make
informed life decisions.
Target Market
The target market is segmented into two dis- Figure 3: Gen Y Population per Age Group
tinct groups. The primary segment will be
Age Population
17–18-year‑old high school students who plan to
12–15 years 17 million
attend a postsecondary educational institution.
The secondary segment is a little broader and
includes any young adult under the age of 25.
Having two distinct segments allows the credit
Presentation by Susan Follick, PSCU Financial Services, at the 30 Under 30 meeting, Chicago,
union to identify high school students who are Illinois, March 13, 2008.
just about to make life-changing decisions, such

as whether to attend college. The service is more
effective when started in the student’s senior year of high school,
before any concrete decisions have been made. GrassHopper could
be particularly effective for credit unions with in-school high school
branches and those that offer student loans. The second segment of
young adults under the age of 25 is also included because these indi-
viduals could be making the same decisions, albeit a bit later in life.
Marketing
Marketing materials will focus on three groups: (1) high school
students ages 17–18, (2) all young adults under the age of 25, and
(3) parents of young adults, helping them understand the value of
this service in planning and validating the goals of their children.
Gaining the parents’ confidence is important for creating a level of
interest with the students.
It will be important for credit unions to find ways to create aware-
ness of this service within high schools that are located in their field
11 Trunk, “What Gen Y Really Wants.”
16
of membership. Marketing materials will be developed to address this
segment and create partnerships with the schools.
Direct-to-Students Marketing
The direct-to-students marketing will work well for credit unions
that have developed relationships with schools in their area. Whether
through in-class presentations, school branches, or participation in
educational events, credit unions in partnership with local schools
will have a great opportunity to directly reach their target audience
for this product.
Parental Marketing
Marketing directly to parents is another effective way to find the
appropriate users of this product. Students close to graduating from
high school or just starting college are likely to still be dependent on
their parents for guidance and financial support. While the best fit
for this product will be naturally motivated students with a desire
to succeed, parents can still play an important role in helping reach
students who can benefit from this product.
School-based Marketing
Another great way to reach this audience is through local high
schools and colleges. They can be a great resource for gathering sta-
tistical data about anticipated graduate salaries and job and housing
markets. Many colleges and universities send out surveys to graduates
to get information on what their after-school salaries are. With that
specific information, the data may one day be able to get down to
specific levels of insight based on schools and distinct areas.
In addition to providing data, school partnerships can play an
important role in providing potential students for the GrassHopper
product. They can identify motivated students who are looking to
make informed decisions about their education and the rest of their
lives. GrassHopper can also serve as a good starting point to create a
relationship between the credit union and the local schools and uni-
versities. With a product and service targeted to their students, they
may be more likely to engage in a mutually beneficial relationship
that can extend even beyond GrassHopper.
Advertising can be broken into two categories: advertising to current
members and advertising to prospective members.
Advertising to Current Members

Current members will be an important group to engage with Grass-
Hopper. Many members in this age group will likely have just a
savings account. By encouraging members to participate, it will help
17
deepen the relationship and encourage the use of additional credit
union products and services.
There can also be marketing to current members who are parents of
this age group. Many credit unions purchase demographic informa-
tion that shows the presence of children in the household. It’s also
easy to obtain this information through interactive member conver-
sations as well as by noticing who brings children into the branch.
Advertising to Prospective Members

GrassHopper is unique enough that it has the power to generate new
members. Partners can help identify prospective students who would
benefit from the GrassHopper tools, which include the following:
• E-mail to current members.
• Internet.
• Blogs.
• Social networks.
• Direct mail to current members or members with children.
• Internal sales force—cross selling and making observations will be
important parts of the marketing efforts.
• Press releases—another great way to get the word out about this
product.
• Branding, logo, Web design, and content (to be determined).
The service is intended to be free to members. The credit union will
absorb the cost of using the service with the thought that it will pro-
duce more active members. The last stage of this process is to identify
credit union products and services the member will need to reach
his or her goals. The money spent to participate in the service can be
viewed as a replacement of traditional marketing dollars to naturally
acquire these services.
Member Benefits
The target audience was chosen
on the basis of several factors, Young adults have a strong preference for personal contact.
including the potential for Many young people will avoid a financial purchase until they
credit unions to (1) gain new meet with a professional.
young members in their prime
borrowing years, (2) increase
profits by matching products and services to this demographic, and
(3) provide needed solutions to help young adults reach their life
goals.
Gen Y believes that planning for its future needs and purchases is
important. GrassHopper meets this need and provides not only a
18
financial plan but a plan to help young adults achieve their life goals.
This program can help young adults determine if their plan for
growth is feasible and puts them on the right track to success.
According to the Filene Research Institute Report by Mark Meyer,
“Young adults have a strong preference for personal contact. Many
young people will avoid a financial purchase until they meet with
a professional.”12 Purchasing financial products via the Internet or
telephone rates low with these consumers, but they use these media
to research products and services that may be appropriate for them.
GrassHopper takes this into account by providing young adults with
high-touch interactions alongside online resources.

The average credit union member is 47 years old. Credit unions need
to attract young adults because these individuals will help generate
interest income to help credit unions thrive. As members age, their
borrowing needs begin to diminish and they begin to demand higher
yields for savings products. The young adult segment may not create
an immediate return on investment, but will yield profits the longer
the relationship is maintained, which can be measured in terms of
lifetime value. The goal for GrassHopper is to help credit unions
offer a service that will appeal to a younger demographic to increase
membership and lower the average member age.
Challenges
More and more students are attending college every year. According
to an NCES graduation rate survey in 2006, college graduation rates
were at 56.4%, up from 54.3% in 2002. As the number of graduates
increases, so does the opportunity for credit unions to attract these
individuals for membership and provide options for student loans.
Once the young adult becomes a member, the credit union can begin
to offer products and services to help meet his or her needs while in
college and beyond. GrassHopper is designed to attract these young
adults even before they enter college, to help in the decision process
of which school to attend and how they’re going to pay for their
education. The average annual cost of a private four-year college
continues to rise and is approximately $25,143, up 5.9% from last
year.13 Students need help in determining whether they actually can
afford tuition, housing, and books. Some students may make deci-
sions about college without really examining the financial impact and
the debt load they will incur after graduation. The average student
12 Mark Meyer, Cool Solutions: Say Hi to Y (Madison, WI: Filene Research Institute, 2005), 11.
13 College Board, “2008–09 College Prices,” www.collegeboard.com/student/pay/add-it-up/4494.html.
19
debt after graduation is approximately $20,000.14 This is without
taking into consideration the amount of other accumulated debt,
for example, credit card debt. According to Nellie Mae, college-age
credit card holders are accumulating more debt, with high balances
ranging between $3,000 and $7,000—up 61% since 2000.15
This is a financial burden that
requires planning. Students The average student debt after graduation is approximately
need to weigh the probability of $20,000.
finding their desired occupation
after graduation with their obli-
gation to repay their student loan with their accompanying salary.
GrassHopper presents research and statistics that can help students
and their parents make more educated financial and life decisions.
Credit unions that invest in GrassHopper will need to understand
that an immediate return on investment may not be apparent. While
this service is designed to attract younger members and deepen rela-
tionships, the profitability of these new accounts should be measured
over a longer period of time. Credit unions need to understand that
by attracting these individuals while still in high school, there is an
opportunity to profit off these accounts through the many life events
that young adults encounter. This could span from purchasing their
first car to retirement products.
A potential barrier to entry is
the perception many young
adults have of credit unions.
Credit unions are not perceived
as hip financial institutions,
especially compared with many
banks. Furthermore, many
young adults aren’t even aware
of what credit unions are or
how they’re structured.
Students can go to Salary.com
to find out what they can expect
to make in a certain job cat- GrassHopper Team, From Left to Right: Melissa Troiano,
egory, but the Web site doesn’t Bridgeway Federal Credit Union; Christopher Danvers, Delta
help them process that informa- Community Credit Union; and Amy Stanton, Connex Credit
Union
14 Robert R. Jennings, “Higher Education Must Fill the Void in Student Financial Management,” Diverse Issues in Higher Education, www.
diverseeducation.com/artman/publish/article_9801.shtml.
15 Nellie Mae, “Undergraduate Students and Credit Cards: An Analysis of Usage Rates and Trends,” April 2002, www.nelliemae.com/library/
ccstudy_2001.pdf.
20
tion into something useful if the anticipated salary isn’t what they
expected.
The combination of face-to-face interaction and online tools will be
an appropriate balance to take the service beyond what the competi-
tion currently offers. GrassHopper reaches out directly to students
and also reaches out to the students through the parents.
21
Mortgage Down Payment Accelerator
Opportunity
As the availability of 100% financed mortgage products quickly
wanes, the need for consumers to save for a down payment increases.
The Mortgage Down Payment Accelerator Program is an easy-to-
implement savings and educational tool designed to bring the young
borrowing demographic to the credit union through a three-step
program. The program is specifically formulated to target first-time
homebuyers who are struggling with accumulating an adequate
down payment. This program comes at the perfect time, with first-
time homebuyers accounting for nearly half of all new and existing
home sales in 2008. With the slump of the housing market and the
subprime mortgage crisis well documented, the mortgage market-
place has already changed. Specifically, more lenders are shying away
from 100% financing and requiring customers/members to have
enough funds for a down payment when purchasing a home. The
Mortgage Down Payment Accelerator Program helps alleviate this
pain by giving young members the tools and incentives necessary to
save money to purchase a home.
Solution
The solution offered by this savings plan is twofold. First, credit
unions will attract young members who need one of the credit
union’s most profitable loan offerings. Credit union members who
take advantage of this program will save the money necessary to
make a down payment on a home. Research shows that Generations
X and Y will spend more on their first home than previous genera-
tions, and monthly mortgage payments are on average about 25% of
that household income.16 It is vital that credit unions acknowledge
this research and provide members with an easy-to-use mortgage
down payment savings plan.
Second, financial literacy education is a key part of this program.
In order to qualify for the initial accelerator component and the
final reward incentive, the member must attend a minimum of two
financial education sessions. Generations X and Y will likely look at
this positively because both generations prefer to have more contact
with their mortgage loan officers. Generation Y specifically would be
more open to learning and research prior to purchasing a home, with
about 77% more likely to conduct research online—a key reason to
offer seminars on the Web.17
16 International Communications Research, “Century 21® Study Reveals Generational Attitudes toward Homebuying,” www.icrsurvey.com/
Study.aspx?f=CENTURY21_4_20_06.htm.
17 Ibid.
22
The Details
A major selling feature of this program is the ease of development
and implementation within the credit union. The Mortgage Down
Payment Accelerator Program may be customized by each credit
union so that it meets specific marketplace needs. The components
of the three-step program are discussed next.
Savings Accelerator
The savings accelerator component helps young members save for
the down payment on their future mortgage. Why would a member
come to you with his or her money as opposed to opening an ING
Direct account paying 4.3%? This is where the accelerator comes in.
Participating credit unions select a savings vehicle to help their mem-
bers accelerate the savings process. This product could be an upside-
down CD, a high-yield savings account, or an add-on CD starter.
The key is to create a savings plan that gives the member a head start
toward saving for a down payment.
Financial Literacy
The financial literacy component is designed to bring mortgages
to the credit union and to assist the member with financial educa-
tion. The member will be responsible for attending two educational
seminars throughout the course of this program. Credit unions may
choose the format that works best for their members and the market-
place. This could include online seminars, member seminars offered at
the credit union, or one-on-one financial coaching with a mortgage/
loan officer.
Reward Payoff
As an incentive for the member to complete the financial literacy
component and close the mortgage through the credit union, a
reward payoff has been designed. Reward options will be presented
at the time the member creates his or her savings program and will
be set by the credit union according to market need. Upon comple-
tion of the program and mortgage signing, the member will choose
and receive a reward. An additional benefit for the credit union is the
customization built into its program. Credit unions will determine,
on the basis of market need, what rewards they will offer members.
Rewards could include, but are not limited to, the following:
• Discounted/no closing costs.
• Cash.
• Furniture discount.
• Landscaping discount.
• Energy-efficient products discount.
• Home theater system discount.
23
Member Benefits
• The Mortgage Down Payment Accelerator Program helps mem-
bers create a savings plan to purchase a home.
• In addition to saving the down payment amount, members will
receive a savings reward at the end of the program encourag-
ing them to take out the mortgage with the participating credit
union.
• Financial literacy is one of the key take-aways from this program.
All participating members will receive financial education on
creating savings plans as well as purchasing a home.

• The Mortgage Down Payment Accelerator Program will assist
credit unions in attracting young members who want to utilize
mortgage products.
• By offering this program, credit unions provide financial literacy
and position themselves as the financial experts in the eyes of the
member, thus building a relationship for life.
• Participating credit unions will be preparing their members to
take out a mortgage with their credit union.
• This program gives credit unions the opportunity to market ser-
vices they already provide.
Target Market
The Mortgage Down Payment Accelerator Program benefits a very
specific membership base, due to the required time commitment.
This group has been identified as those members who are just begin-
ning to think about home ownership. The member will need to have
a specific time frame available in which to save before he or she is
ready to purchase a home. This program will not truly benefit mem-
bers who are currently ready to purchase a home.
Market Pricing
The pricing model will need to be credit union specific due to lend-
ing practices. Credit unions that immediately sell their mortgages to
the secondary market could risk giving away a large portion of their
loan profits if their giveaway is overpriced. Each credit union will
have to price the reward on the basis of its risk tolerance as well as
market expectations.
24
The Ideal Consumer
The average age for a first mortgage purchase for Generation Y is 26,
while Generation X has an average purchase age of 29.18 Because
this is a savings program, the timeline created to reach the goal will
be set according to the amount of money the individual has avail-
able to save. A college graduate
has a higher entry-level earning
The average age for a first mortgage purchase for Generation Y potential ($52,000) than a non–
is 26, while Generation X has an average purchase age of 29. college graduate ($30,000).19
The ideal consumer will be a
young member/non-member
experiencing a life-changing event such as getting engaged, graduat-
ing from college, starting a first job, or getting married.
This program gives credit unions the opportunity to market services
they already provide, while adding one-on-one financial coaching
and savings programs for their members. The time put into the
member financial literacy and coaching will not increase; only mar-
keting efforts will increase. Due to the small size of the target market,
marketing expense is estimated to be minimal.
Proof of Concept: The University of Wisconsin Credit

Union
3-Step Process Implementation
Savings Accelerator
The University of Wisconsin Credit Union (UWCU) chose to set
up the savings accelerator portion as a 30-month add-on CD with a
$250 gift deposit to get the member started. The $250 gift deposit
will be locked, and the member will be unable to withdraw this
amount. However, all interest earned on the $250 will belong to the
member. If the member’s savings plan allows it, the CD term may be
broken with no penalty at the time of mortgage loan closing.
The gift deposit will be later withdrawn if the member does not
attend a seminar, close on the first mortgage, or establish a checking
package.
Financial Literacy
All participants in the UWCU Mortgage Down Payment Accelerator
Program will have access to an online interactive budgeting tool that
18 Florida Home Loan, “Home Buyer Survey Reveals Different Motivations for Different Generations,” www.floridahomeloan.com/2006/04/
home-buyer-survey-reveals-different.html.
19 U.S. Census Bureau News, “Earnings Gap Highlighted by Census Bureau Data on Educational Attainment,” www.census.gov/Press-Release/
www/releases/archives/education/009749.html.
25
will show their savings goals and their progress toward those goals.
This will be in the form of widgets on their home banking Web site.
Members must attend a home buyer’s seminar at the credit union
and meet with a mortgage loan officer for at least one coaching
session. UWCU will also provide members an online home-buying
educational library.
Reward Payoff
Once the member has completed the savings program and has taken
out the mortgage, he or she will receive not only the initial $250 gift
deposit but an additional $250 Visa gift card as a savings reward. The
member will receive a grand total of $500 from the credit union by
utilizing the Mortgage Down Payment Accelerator.
Operations Process
Members will meet with their mortgage loan officer and collectively
determine their savings goal through an online, interactive budget
tool. At the end of the budgeting process, the 30-month CD will be
set up through an interface with UWCU’s operating system, includ-
ing the initial $250 accelerator deposit. Any agreed upon automatic
transfers will also be set up through this interface as well. Once the
account has been established, the member will be able to track his
or her progress online through a savings thermometer located within
UWCU’s Web banking.
UWCU has created an internal system where an annual letter will
be mailed to the member while enrolled in the program. This letter,
signed by the mortgage loan officer who helped open the account,
will contain a $5 “keep up the good work” gift card as well as a sum-
mary of the member’s savings progress. The member may meet with
his or her mortgage loan officer at any time to discuss/modify the
program, to complete the financial education portion, or to receive
one-on-one coaching (a flag will be created on UWCU’s operating
system to track the financial literacy component).
Another component of the program involves a preformatted invita-
tion (called MoneyLink) that a member can send out to friends and
family to deposit funds directly into the member’s Mortgage Savings
Accelerator account. This will be great for birthday, holiday, and
wedding gifts.
Marketing Plan
Branding
UWCU chose to incorporate the Mortgage Savings Accelerator
Program into its current marketing pieces (as opposed to creating an
individual campaign). The program will be featured on electronic
marketing venues as well as more traditional print vehicles:
26
• Electronic: This includes advertising the program on UWCU’s
Web site, home banking, e-mail blasts, and e-statements. The
program will be prominently featured on all mortgage-related
pages. Additionally, the home banking site will feature a savings
thermometer for members to track their progress. UWCU will
also have special statement messages designed for members in the
target demographic.
• Print: UWCU will eventually feature this program in its current
print documents, including brochures, posters, one-page hand-
outs, and direct mail.
MoneyLink Invitation
UWCU has partnered with MoneyLink to create a preformatted
invitation that members can send to their family and friends inviting
them to make deposits directly into the member’s account.
Internal Sales Force

UWCU believes that its cur-
rent financial specialists and
mortgage loan officers will be
the drivers behind this product’s
success. With that in mind,
both groups will attend a train-
ing session that will emphasize
the following:
• Describing the Mortgage
Down Payment Accelerator.
• How to determine which
members are right for the
program.
Mortgage Down Payment Accelerator Team, From Left • How to use the online,
to Right: Matthew Schewe, UW Credit Union, and Toni interactive budgeting tool.
Montgomery, AmeriChoice Federal Credit Union • How to describe the pro-
gram to a member.
27
Win–Win Savings: Prize-Based
Savings Accounts for Young Adults
Opportunity
Current economic instability has encouraged all Americans to start
saving today. Capturing those savings is a great opportunity for
credit unions. The U.S. sav-
ings rate has hovered around
1% since 2005;20 however, in The U.S. savings rate has hovered around 1% since 2005;
2008, personal savings rates however, in 2008, personal savings rates rose significantly to
rose significantly to just over just over 2.5%.
2.5%. Young adults in particu-
21
lar have been known to simply

spend and borrow more than is feasible. For example, the number
of 18–24-year-olds declaring bankruptcy has increased 96% in the
last 10 years.22 University administrators state that they lose more
students to credit card debt than to academic failure. Credit unions
need to reach out to this market and help young adults prepare for
their financial future—both short term and long term.
According to one study, 61% of young adults cited “lifestyle pur-
chases” as an impediment to saving.23 Those purchases include items
such as iPods and big-screen TVs—things that aren’t required for
day-to-day living but are influenced by advertising and peers. Yet
millennials are “the most socially conscious consumers to date.”24
For example, 61% of 13–25-year-olds feel “personally responsible
for making a difference in the world.” Additionally, 81% have
volunteered in the past year, 69% consider a company’s social and
environmental commitment when deciding where to shop, and
83% will trust a company more if it is socially or environmentally
responsible.25
20 Comment on “Our Savings Rate Is (Still) Negative: Should We Worry?” My Money Blog, www.mymoneyblog.com/archives/2007/02/
our-savings-rate-is-negative-should-we-worry.html.
21 Bureau of Economic Analysis, www.bea.gov/briefrm/saving.htm.
22 “The State of Financial Literacy in America,” Young Americans Center for Financial Education, www.yacenter.org/index.
cfm?fuseAction=financialLiteracyStatistics.financialLiteracyStatistics.
23 Sandra Block, “Few Young Workers Take Heed of Need to Start Saving Now,” USA Today, www.usatoday.com/money/perfi/columnist/
block/2006-03-06-young-savings_x.htm.
24 Sharon Jayson, “Generation Y Gets Involved,” USA Today, www.usatoday.com/news/nation/2006-10-23-gen-next-cover_x.htm.
25 Ibid.
28
Solution
A Savings Account for a New Generation
How can credit unions appeal to young adults and encourage them
to save in a way that is meaningful, fun, exciting, and rewarding?
Enter Win–Win Savings, an account that awards cash and prizes
as part of the saving product’s return, with prizes and messaging
tailored to young adults.
In this program, everybody
According to one study, 61% of young adults cited “lifestyle wins! Unique to this product is
purchases” as an impediment to saving. that the monthly grand prizes
are twofold: The young adult
receives a cash prize, and a
similar dollar amount is given to a local charity chosen by the young
adult when opening the account. A $25,000 annual grand prize is
also suggested for all participating credit unions.
Win–Win Savings26 will appeal to young adults’ own self-interest
(prizes) as well as their altruistic side (charitable component).
Prize Values (suggested starting point)

• Monthly prizes:
■ Monthly cash prize: $2,000/member and $2,000/charity.
■ Monthly various prizes: $1,000 in prizes (no chari-
table component), to be split however the credit union
decides—for example, a single prize valued at $1,000 or
10 prizes valued at $100. More opportunities to win each
month will mean more winners and more excitement.
This also allows each credit union to differentiate its Win–
Win Savings account.
• Annual prize:
■ Annual cash prize: $25,000/member and $25,000/charity
(provided by a cooperative investment fund—see “Prize
Funding” in the “Operational and Other Considerations”
section for more information).
Figure 4: Sample Logo Members automatically receive one entry for
every $25 average daily balance in their Win–
Win Savings account. This feature will encour-
age members to save, because as their savings
increase, their chances to win will increase. This
method discourages making last-minute deposit
dumps without the intention of growing core
deposits, only to increase one’s chance to win.
26 Based on an idea conceived by the Filene i3 group, Prize-based Savings.
29
Members can increase their chances of winning by earning bonus
entries. The following are shown to be popular ways of increasing
chances of winning:
• Direct deposit.
• Referring friends and family.
• Adding other products and services.
(Please see Appendix 2 for detailed information on bonus entries.)
Member Benefits
With little to no regular income, young adults find it increasingly
difficult to save money. However, they often find themselves want-
ing the latest technology, new clothes, and other merchandise. This
product provides a solution because it encourages young adults
to save while giving them the opportunity to obtain these items
through the prize drawings. With the credit union’s monthly and
annual prizes, young adults can win one of the latest gaming systems
or even a large cash prize.
With its simple design, this product surpasses the competition’s bor-
ing, low-rate savings account. Dividend rates do not usually attract
young adults to credit unions—and savings in general. In fact, most
young adults do not know the difference between a dividend rate
and an interest rate—neither has much meaning to them. Most are
also unfamiliar with what a credit union is. Win–Win Savings speaks
their language—“Win $25,000!” “Win an iPhone or a gift card!”
“Win and make a difference!”
Marketing for this product will focus on the fact that saving can be
fun, rewarding, and different. Unlike most raffles or lotteries, where
the individual most likely will not see a return on the investment,
this product is a way to save money and to possibly win something at
the same time. There are no adverse entry requirements, no penalties
for early withdrawal, and no hidden fees.
In addition, the Win–Win Savings account is recommended as
the default account for all members within the targeted age group.
This will show new members that the credit union is committed to
improving their financial well-being and dedicated to serving the
community—a great first impression for all new members.

Credit unions offering Win–Win Savings have the opportunity to:
• Help young adults develop good savings habits.
• Promote social responsibility.
• Attract low-cost deposit dollars.
30
• Attract new members.
• Increase product use among account holders.
The charitable component of the product benefits not only the indi-
vidual but also the credit union system, the surrounding community,
and society as a whole, demonstrating the credit union philosophy of
“people helping people.”
Target Market
Win–Win Savings is specifically targeted to all young adults (ages
18–30) in a credit union’s field of membership. This product will
target an untapped market for prize-based savings. Recent data show
interest in prize-based savings is greatest among people who do not
have regular saving habits, who have little actual savings, and who are
optimistic about their future.27
Win–Win Savings is a new and exciting concept for young adults.
It not only appeals to their desire to improve their personal finan-
cial condition with bonus cash and prizes, but also appeals to their
philanthropic side.
Marketing
Launching a full targeted marketing campaign with special emphasis
on internal branch contests is essential. Marketing will be specifically
targeted to young adults, promoting the credit union and Win–Win
Savings in areas highly frequented by this group: schools, sporting
events, etc.
Please see Appendix 2 for extended details on developing the
following:
• Marketing campaign—Billboards, e-mail, direct mail, education
seminars at schools.
• Segmented marketing opportunities—Winning cash and
prizes, charitable component, target parents/guardians of young
adults.
• Internal marketing—Internal branch staff contests to promote
the product and keep the excitement alive.
• Social media—Adding a blog component for young adults to
talk about their savings goals and initiatives, as well as promote
their charity of choice.
27 Nick Maynard, Jan-Emmanuel De Neve, and Peter Tufano, “Consumer Demand for Prize-Linked Savings: A Preliminary Analysis” (working
paper 08-061, Harvard Business School, Finance, 2008), 2.
31
Operations
Win–Win Savings should have a product manager who will work
closely internally with the marketing, operations, sales, and training
departments and be the liaison between the credit union and the
entity administering the cooperative investment fund (for the annual
prize via the corporate credit union). The product manager will be
the product “champion” and “owner” at the credit union, which
means leading regular meetings with key staff and overall manage-
ment of the product. The following is a brief description of each
department that might be involved with this product and what its
role might be (aside from the project manager above):
• Operations—This department will administer the development
of this product and determine any account codes or system regu-
lations that need to be established.
• Marketing—This department will be responsible for targeting
the product to young adults. It will also fund and purchase the
monthly prizes. Marketing will be responsible for public rela-
tions, and thus it will create and distribute all public information
about this product’s charity component (see the “Marketing”
section for more details). It will also create excitement and buzz
around the grand prize among members and charities. Product
brochures and take-away information should be created for staff
to distribute to inquiring members. It is important to reach out
to this market through schools, sporting events, and other areas
where young adults gather.
• Accounting—This department will be responsible for processing
the 1099 tax reporting information for members.
• Sales or training—The sales or training department will be
responsible for informing staff about this new product and will
conduct staff training and development on how to sell and open
Win–Win Savings accounts for members. Sales managers will be
in charge of the internal promotions and contests to encourage
staff to continue to sell the product.
• Branch managers and branch staff—Branch staff will assist in
promoting and signing members up for the Win–Win Savings
account. They will also have the opportunity to contact monthly
prize winners. By having the branch manager personally contact
the winners, this will help build relationships at the branch level.
National Network
Why reinvent the wheel? A collaboration network for communica-
tion among credit union prize-based savings’ product owners has
been formed to share best practices, to ask questions, and to find
32
solutions. The platform has discussion functionality, write boards,
the ability to share files, and more.28

Legal Considerations
Prize-based savings falls into the category of sweepstakes, as an entry
is required to win. Considering this, each interested credit union will
first need to check its local and state laws when tailoring its product.
Credit unions must adhere to laws such as No Purchase Necessary
and acts such as the federal Deceptive Mail Prevention and Enforce-
ment Act.
Prize Funding
Prizes for Win–Win Savings will be funded by a combination of a
few elements. Credit unions can offset the cost of the monthly prizes
by offering a slightly lower rate of return. In addition, a portion of
marketing’s promotional budget could be utilized to fund the prizes.
CES Credit Union in Ohio launched a comparable version of this
product in early 2008 with great success. In fact, CES Credit Union
exceeded its break-even point by 70% in the first five months of
opening the prize-based savings account. The break-even point
projections for Win–Win Savings have been calculated based on
results from CES Credit Union. (Please see Appendix 2 for a detailed
breakdown of the monthly prize break-even point projections.)
The annual grand prize is funded through a cooperative investment
account through a corporate credit union. This account is designed
to earn enough dividends to not only fund the annual prize but also
provide an additional return on investment to cover administrative
costs. Credit unions offering this product will have the opportunity
to pool funds without giving up their hard-earned cash.
More specifically, here is an example of how the investment
fund would work, considering a desired return on investment of
$100,000. Half of this return ($50,000) funds the annual grand
prize for the cooperative, and the other half ($50,000) will be distrib-
uted to participating credit unions according to their level of invest-
ment. This return will assist credit unions in covering administrative
costs and monthly prizes, and it will reward those credit unions that
invest more monies into the fund (see Figure 5).
Naturally, if the yield on investment is higher, credit unions could
invest less money in the fund and benefit from the same return.
28 For more information on this collaboration network, contact Josey Siegenthaler at joseys@filene.org.
33
Figure 5: Cooperative Investment Fund Projections
Desired return on investment $100,000
Example #1 (yield of 2%)
Yield on investment 2%
Total investment amount $5,000,000
Number of participating credit unions 10 25 50 75 100
Average credit union investment $500,000 $200,000 $100,000 $67,000 $50,000
Example #2 (yield of 3%)
Yield on investment 3%
Total investment amount $3,333,333
Number of participating credit unions 10 25 50 75 100
Average credit union investment $333,333 $133,333 $66,667 $44,444 $33,333
Similarly, if more credit unions participate, the average credit union

investment decreases.
Proof of Concept
After extensive work from an i3 innovation team, several credit
unions have started prize-based savings accounts in the last few years
with much success. Most are broad-based (i.e., they do not have a
defined market for the product) and do not have a charitable compo-
nent. Data from Centra Credit Union in Indiana show that interest
in prize-based savings was highest among young adults.29 Anecdotal
evidence from the other credit unions with similar accounts suggests
the same.
Additionally, almost all credit unions that offer a prize-based sav-
ings product have yet to launch a full-blown marketing campaign,
because it hasn’t been necessary—interest (and deposits) continues
to rise. For example, Neighborhood Credit Union (Texas) opened
946 new accounts in the first month of its program, with an aver-
age balance of $788. After 10 months, these accounts grew to over
4,500 accounts with over $4M in deposits and an average balance of
$902. This exceptional growth did not come from a major market-
ing campaign—only simple monthly statement flyers and informa-
tion on the credit union Web site. Neighborhood Credit Union’s
prize-based savings account is positioned as a primary share account,
which contributes to the account’s success.
Comparable savings programs in countries such as South Africa, the
United Kingdom, India, Mexico, and Japan have also experienced
29 Maynard, De Neve, and Tufano, “Consumer Demand for Prize-Linked Savings,” 20.
34
great success, establishing new customer relationships, deposits, and
excitement about savings.30
A survey of young adults regarding the validity of Win–Win Sav-
ings was conducted and distributed through a variety of channels.
Responses augmented the market/customer analysis and ultimately
helped shape Win–Win Savings product development. Survey results
also corroborated with findings from other sources. Key findings
from this survey of young adults follow.
Prize-Based Savings (Win–Win Savings)

• Almost 80% are interested in prize-based savings, 6% are not
interested, and 15% don’t know.
• Prize options: The vast majority are very interested in cash,
followed by 52% very interested in a plasma TV and 41% in a
semester of college tuition.
• Increase chances to win: Survey respondents chose options of
increasing savings, direct deposit, and referring a friend.
• Almost 60% would pay down debt if they won $20,000.
Charitable Contributions
• Sixty-one percent have a charity that matters deeply to them.
• Almost 65% donate money to charitable organizations.
• Eighty percent donate time to charitable organizations.
Current Product Use and Financial Condition

• Almost all have a checking and a regular savings account, and
half have a retirement account.
• Half have an auto loan, and half have a school loan.
• Members are generally satisfied with their current financial
condition.
• The majority said the following statement most accurately
reflects their attitude toward saving—“Saving is difficult; I
feel saving money is a difficult task. Something always comes
Win–Win Savings Team, From up that I have to spend my money on.”
Left to Right: Christopher • Members are hopeful that their financial condition will
Morris, Credit Union National improve in the next five years.
Association; and Megan
Armstrong, Sunmark Federal For more information about this project, please e-mail Josey
Credit Union Siegenthaler at joseys@filene.org, and please visit the Filene i3
section of the Web site for more information about similar i3
projects: filene.org/home/innovation/i3ideas/buildwealth/15.
30 Denise Gabel, Key Findings 3.0—Innovation through Cooperation (Madison, WI: Filene Research Institute, 2007), 7.
35
What’s Next?: A Responsible Way for
Young Adults to Build Credit
Opportunity
Young adults struggle with both saving money and building credit.
When making a large purchase, they often rely on support from their
parents or high-interest credit cards. The problem with relying on
their parents is that young adults don’t learn the value of saving and
the importance of budgeting for a large purchase. When it comes
to credit cards, they run the risk of getting into debt; if they miss a
payment or default on the credit card, this can seriously hurt their
credit.
Furthermore, most young adults and credit union members of all
ages are uninformed when it comes to credit scores and building
credit. According to the Callahan Internet Strategies Consortium,
25% of credit union members surveyed did not know what a FICO
score was.31 Most young adults don’t have a credit file, and some
build credit through high-
interest auto loans or high-
interest credit cards, according Twenty-five percent of credit union members surveyed did not
to Maxine Sweet, vice president know what a FICO score was.
of public education at Experian.
The demand for credit-building
products is growing as more adults are getting into debt. The Cal-
lahan Internet Strategies Consortium found that although parents
are looking for ways to educate their children on savings, 60% of
them do not have savings accounts for their kids.32 The What’s Next?
product provides parents with a way to educate their children about
savings and also help them build credit.
At this stage of life, young adults will choose the financial institution
they will remain loyal to throughout their life. The Callahan Internet
Strategies Consortium recently performed a case study on Point Plus
Credit Union in Wisconsin. This credit union has had young adult
programs in schools for many years. The study found that members
who joined the credit union when they were under the age of 18 had
higher product usage and higher account balances by the time they
were in the 30–39 age group than members who joined later in life.
Solution
The goal of What’s Next? is to help younger members (18–25) estab-
lish and meet short-term goals in a way that allows them to connect
31 Callahan & Associates, Online Member Attitudes towards Debt and Savings, January 2008, 45.
32 Ibid., 17.
36
with other members and develop a stronger trust in credit unions.
Through this program, the young members will be able to achieve
their savings goal while building their credit and loyalty with their
credit union.
Members who joined the credit union when they were under the age of 18 had higher product
usage and higher account balances by the time they were in the 30–39 age group than members
who joined later in life.
What’s Next? features the following:

• Goal setting.
• Credit building.
• Social media and support.
• Online integration of services.
• Monthly drawing for one goal to be fulfilled (up to $500).
The process starts with a young adult choosing a specific product
that he or she would like to save for, such as an iPod. Credit union
personnel help the member develop a savings plan and open a no-
fee What’s Next? account to take deposits toward the goal. A social
media site will supplement the product as a place where these young
adults can share the myriad emotions involved in the savings process
with their family, friends, and other credit union members. On this
blog, they can also track how close they are to achieving their goal.
What’s Next? also mirrors a new Figure 6: Sample Web Site
collaboration between a Filene
i3 team and StickK.com. There,
members can set financial goals
and formally invite friends to
monitor the commitment and
hold the goal-setter accountable.
To motivate themselves further,
goal-setters can commit to
“stakes,” money that they forfeit
if they don’t achieve their goals
in time. They can also invite a
referee to verify their progress.
The What’s Next? share account
features a generous dividend
rate, no fees, a low minimum balance requirement, and limited
withdrawal capabilities. The cost of the higher dividend rate will be
partially offset by the requirement that new accounts elect electronic
statement delivery. Direct deposit for this account is both available
37
and encouraged, as systematic savings is the easiest way to build posi-
tive savings habits.
Upon reaching the savings goal, the member is automatically
approved for either a loan in the amount of what was saved or a
credit card with a spending limit in the amount of what was saved.
Unlike a traditional share-secured loan or credit card for young
adults, which uses a parent’s savings account as collateral, this
product requires young adults to save this money themselves, thus
teaching them how to save. As an added bonus, they can withdraw
this money once they’ve saved enough to purchase the product they
want. Another unique feature of this product is that each month one
member will be selected to have the remaining balance of what he
or she is saving for paid off. This prize-based approach has proved
successful in the past and should motivate young adults to take part
in this initiative.
Unlike a traditional share-secured loan or credit card for young adults, which uses a parent’s sav-
ings account as collateral, this product requires young adults to save this money themselves, thus
teaching them how to save.
Although there will be no charge for this product, the credit union
can expect to see an inflow in share deposits and increased loyalty
among younger members. This loyalty should result in greater credit
union usage as younger members progress through life.
Member Benefits
Through What’s Next?, members have the opportunity to:
• Achieve their savings goals through a no-fee savings account.
• Earn dividends on their savings account.
• Build their credit through a preapproved loan or a low-interest-
rate credit card.
• Enter a monthly drawing to win money to reach their savings
goal. Figure 7: Sample Logo
• Connect with other members through an online social network-
ing site.
• Develop a blog that tracks savings progress and that others can
view and comment on.
38
Credit unions also benefit through What’s Next? by:
• Attracting younger members.
• Developing loyal and responsible members who will use the
credit union for future long-term borrowing needs.
• Generating new deposits.
• Having more people visit their Web site through the online com-
ponent of the program.
• Providing financial education resources to the children of current
members.
Target Market
The target market for this product is credit union members between
the ages of 15 and 25. According to CUNA’s 2006–2007 National
Member Survey, credit union members between the ages of 18 and
24 represent 6% of all members, so the potential market is at least
5 million credit union members.33 This age group represents 17% of
the entire U.S. population, which means the market could increase
up to 51 million people. Teens between the ages of 13 and 19 spend
$94.7B annually, or $3,309 per capita, while young adults between
the ages of 20 and 21 spend $61.3B annually, or $7,389 per capita.34

For credit unions to launch the social media aspect, a blog template
with full instructions has been created. Credit unions can incorpo-
rate this template with their Web site. Maintaining the blog will
require 10–15 hours per week. The manager of the blog will need to
be an excellent copywriter along with being proficient (not expert)
in HTML and photo editing. Journalism experience would be a very
nice plus. Typically, credit unions have a person in their marketing
department who fits this description.
In order to show growth of What’s Next?, the host credit union may
implement its marketing strategy in well-planned phases. Starting
with direct communication to existing young adult members may
give a better glimpse of how the program will be perceived by larger
audiences. An example of phased implementation may look some-
thing like this:
33 2006–2007 National Member Survey (Washington, DC: CUNA, 2006), 3.
34 Harris Interactive YouthPulse Study, 2003, www.harrisinteractive.com/NEWS/allnewsbydate.asp?NewsID=66.
39
• Phase I—Direct mail/e-mail to 18–25-year-old members inviting
participation in What’s Next?
• Phase II—Credit union Web site, newsletter article/ad, in-branch
advertising used to increase awareness and participation.
• Phase III—Statement inserts, SEG marketing, educational semi-
nars distributed within the community.
• Phase IV—Earned media (traditional and new), public relations,
press releases are used.
• Phase V—Mass media advertising is implemented.
Throughout all phases, credit unions should communicate regularly
with What’s Next? users and update blog content as recommended
above.
Projections
While projections and keys to success for What’s Next? will vary by
host credit union, here are a few potential indicators:
• Ten percent increase in young adult (18–25) membership within
six months, increasing by an additional 2% monthly for the first
year.
• Seventy percent of savings goals met by established deadline.
• Positive word of mouth on Web site.
• User-initiated blog posts.
• Twenty-five percent of users creating second goal within six
months of achieving first goal.
Proof of Concept
For beta testing of What’s Next?, several members between the ages
of 19 and 30 were asked to access the Web site whatsnextaffinityplus.
com. Here, they were asked to do three things:
1. Post one goal that they would like to achieve.
2. Post at least one comment to another member’s goal.
3. Navigate the Web site and provide feedback, input, and thoughts
to help make it more effective.
Through the members’ use
of the Web site and follow-
up discussions, several things Members enjoyed connecting with other members and learning
were learned that have aided in that other members had similar goals.
understanding the future use of
this product for credit unions:
• Members were excited about the chance of “winning” the
monthly drawing of having their goal achieved, which all
40
members noted as a motivator
to continue participation in the
program.
• Members who had not yet
taken out their first loan
were most intrigued by the
thought of demonstrating
their “worthiness” to the
credit union in order to get
approved for the loan by their
actions, as some did not have
any past credit and had been
previously denied for not
What’s Next? Team, From Left to Right: Julie Cosgrove, having any credit.
Affinity Plus Federal Credit Union; Matt Davis, Members • Members enjoyed connect-
Credit Union; Rachel Parrent, Vantage Credit Union; and Joe ing with other members and
James, CU Direct Corporation learning that other members
had similar goals. They
enjoyed sharing recommendations or referrals to other like-aged
members surrounding things that they have learned about achiev-
ing a goal (e.g., a member wanted to purchase a treadmill, and
several members responded with additional recommendations,
from Web sites to help track outside walking distances to a nicely
priced treadmill found at Sears).
• Almost all noted that they do find savings to be difficult, so
having a tool such as this member forum was one way to inspire
them that little things can result in positive outcomes.
thaler at joseys@filene.org, and please visit the Filene i3 section of the
Web site for more information about similar i3 projects: filene.org/
home/innovation/i3ideas/buildwealth/50.
41
Chapter 2
Younger Employees
Credit unions can expect short-term mem-

bership growth and market buzz when they
introduce innovative products. But recruiting
talented young professionals as employees is even
more important for the long-term health of the
credit union system. Nearly three-quarters of
executives state that finding successors for top
leaders is the chief challenge facing companies,
according to a recent survey by the Society for
Human Resource Management.
Shared Staffing
Opportunity
As the American workforce continues to grow older and approach
retirement, it is imperative for credit unions to develop strategies
and services to retain and train younger professionals. Generation Y
has been characterized as a generation that challenges the status quo
and resists traditional management styles. Gen Y “seeks out creative
challenges and views colleagues as vast resources for whom to gain
knowledge,” according to an article in USA Today.35 Gen Yers are also
willing to have multiple jobs during their working careers and to seek
out jobs that tolerate a work-life balance. All of these priorities exac-
erbate the need to create an environment that engages, challenges,
and meets the needs of Gen Y. The credit union system, for the most
part, falls short. The desires and opinions of younger employees must
be captured to ensure they stay engaged, thus minimizing job fatigue
and promoting entrepreneurial spirit. A service must be created to:
• Develop future leaders—It is estimated that 60% of baby boom-
ers will retire in the next 5–10 years, creating a void in the higher
echelons of senior management.36 Human resources departments
will be looking to Gen Y to fill management vacancies. Instead of
waiting with nervously crossed fingers, credit unions should be
working to retain and prepare employees within as well as recruit
new young talent.
• Promote innovation—Credit unions cannot stay competitive
if they do not continue to develop new products and services to
meet the needs of the future workforce and future consumers.
Solution
Shared Staffing, like its cousin Shared Branching, is the next wave of
the “people helping people” philosophy.
35 USA Today, “Generation Y: They’ve Arrived at Work with a New Attitude,” www.usatoday.com/money/workplace/2005-11-06-gen-y_x.htm.
36 CU Times, “Building Succession Plans Critical with Baby Boomers Beginning to Retire,” www.cutimes.com/Issues/2007/April%2025,%20
2007/Pages/Building-Succession-Plans-Critical-with-Baby-Boomers-Beginning-to-Retire.aspx.
44
Shared Staffing is a short-term sabbatical where young credit union
leaders utilize their skills and experience to assist other credit unions
in their quest to develop innovative products and services. It is
important to note that Shared Staffing is not a temp agency, nor is it
designed for the temporary exchange of entry-level employees.
The receiving credit union, the institution in need of developing an
innovative project or product, will utilize these employees for a vari-
ety of reasons: beginning a new
branding campaign, introducing
Shared Staffing is a short-term sabbatical where young credit an innovative operating system,
union leaders utilize their skills and experience to assist other implementing different human
credit unions in their quest to develop innovative products and resources tools, or executing
services. a new lending program, to
name a few. The lending credit
union, the institution that will
loan an employee, will recognize the need to engage and develop its
employees.
Develop Future Leaders

Shared Staffing provides an affordable, practical, and attractive solu-
tion for developing future credit union leaders. At its core, it encour-
ages entrepreneurial thinking. It also offers younger employees the
benefits of nationwide travel, recognition from industry peers, and a
variety of industry networking opportunities. It enables credit unions
of all sizes to attract and retain top young talent. It will also assist
human resources departments by:
• Decreasing job fatigue.
• Relieving stress and workload of current staff.
• Retaining quality employees.
• Providing networking within the credit union system.
Promote Innovation
Shared Staffing will promote innovation through the development
of ideas gained from employees’ exposure to other credit unions.
Both the receiving and lending credit unions will benefit through
the shared ideas of the temporary staffing exchange. It is when an
employee goes to another credit union and experiences its methods
and ideology that new ideas and innovation are shaped. Shared Staff-
ing will also help credit unions:
• Increase new product/service development.
• Develop and implement products and services faster.
• Develop and implement products and services smarter.
• Receive relevant and highly qualified individuals.
45
• Cultivate employee experts who are current in the industry.
• Offer the objective viewpoint of an outsider.
• Offer current regulatory expertise.
• Make an experienced workforce available almost immediately.
• Provide coverage for staff who are absent or on leave.
Shared Staffing Survey

According to results from the Shared Staffing survey, 50% of credit
unions with assets greater than $1B believe they are very likely to be
more innovative with the Shared Staffing service, 33% more than
any other asset group. That said, 75% of credit unions with less than
$100M in assets believe they are somewhat likely to be more innova-
tive. As the assets increased, so did the credit unions’ desire to utilize
a consultant within the Shared Staffing service. Credit unions see
Shared Staffing as a solution to provide better quality work (11%),
implement products/services more efficiently (13%), and provide rel-
evant experience to the project (13%). They also see Shared Staffing
as a solution to lower costs compared to outsourcing talent (16%),
and to relieve stress and the workload from current staff (22%).
According to results from the Shared Staffing survey, 50% of credit unions with assets greater than
$1B believe they are very likely to be more innovative with the Shared Staffing service, 33% more
than any other asset group.
In response to the Shared Staffing survey, Catherine Tieney, president/

CEO of Community First Credit Union, in Appleton, Wisconsin
($695M, 72,000 members), says consulting is an “efficient, effective
way of accomplishing projects, injecting new ideas and expertise.”
Community First offers IT, compliance, accounting, marketing, and
support services to several smaller credit unions. “It’s a BIG win for
everyone,” Tieney says.
Feedback on the Shared Staffing service came from professionals
across 27 states—10% from CEOs, 42% from other senior manag-
ers, and 48% from other credit union employees. The survey focused
on how these professionals thought the Shared Staffing service would
help in the areas of retaining and recruiting talent and innovation in
the credit union.
Shared Staffing enables credit unions large and small to play on their
largest strength: the philosophy of “people helping people.” While
banks wouldn’t dream of sharing their latest online bill pay or text
banking innovation, credit unions don’t hesitate to share their ideas
through various listservs or other networking channels.
46
Figure 8: Interest of Credit Union In conclusion, the survey indicates that credit unions at
Employees to Participate in Shared either end of the asset spectrum (<$100M and >$1B) are
Staffing most likely to utilize the Shared Staffing service for the
benefit of the employee and the employer. The reason for
50
these vastly different credit unions to find value in such a
46.8
service could be the entrepreneurial spirit of the service.
40
While the smaller credit union is trying to think of big
35.8
ideas with small resources, the larger credit union is trying
30 to find the next big idea in a smaller pool of new ideas.
Percentage
Credit unions of all sizes realize that in order to stay com-

20 17.4
petitive, the cooperative spirit must continually progress.
While interest in the employee is strong, the employer’s
10
opinion plays a key role in the buy-in of the Shared
Staffing service. An amazing 66% of current credit union
0
Not at all Somewhat Very
employers are somewhat likely to allow staff to partici-
interested interested interested pate as consultants in Shared Staffing, and another 24%
are very likely. Credit unions smaller than $100M and
larger than $1B are the most willing to allow staff to
consult with other credit unions. In assisting the human resources
department, employers at all the credit union respondents believe
they could use this service to retain younger employees (7%), reward
employees (9%), attract higher-quality employees (11%), retain qual-
ity employees (15%), provide networking access with other credit
unions (17%), and engage current employees more (26%).

Develop Future Leaders
For the lending credit union, Shared Staffing provides young credit
union employees the opportunity to:
• Stay engaged by challenging their skills.
• Encourage entrepreneurial spirit through the education that
comes with networking with other credit unions.
• Be considered an expert/consultant in their respective areas.
• Travel nationally and internationally.
• Minimize job fatigue.
• Have their value as employees acknowledged.
Promote Innovation
For the receiving credit union, Shared Staffing provides:
• Income potential from product offerings.
• Increased member satisfaction through new and enhanced prod-
uct offerings.
• Increased competitive edge.
47
• Cost savings (versus an out- Figure 9: Do you believe your credit union would be more likely
side consultant). to be more innovative in its market if you utilized a Shared
• Enhanced networking. Staffing service?
Answer Very likely Somewhat likely Not at all likely
Operational and Other Less than $100M 18.3% 73.4% 8.1%
Considerations $100M–$499M 6.9% 69.7% 23.2%
The Shared Staffing service $500M–$1B 25.0% 56.2% 18.7%
operates efficiently through Greater than $1B 16.6% 27.7% 55.5%
use of a craigslist-type Web
site where resources and needs are joined through a “community”
interface. This approach allows the service to gain traction without
the need for expensive operating budgets or Web sites. Details of the
Shared Staffing transaction are discussed and settled by the indi-
vidual credit unions. The Shared Staffing service does not provide
guidance on fee structure or individual compensation.
Proof of Concept: The California Credit Union League

Partnership talks are ongoing between the California Credit Union
League (CCUL) and Shared Staffing. CCUL developed an innova-
tive platform that utilizes some of the concepts of the Shared Staffing
service. The following are oppor-
tunities for implementation:
• Listing a credit union’s need
versus a credit union’s staff
availability.
• Full geographic implementa-
tion versus local or regional.
• Promotion of the service to
human resources to retain
and recruit young credit
union leaders.
Utilizing CCUL’s existing
platform, Shared Staffing would Shared Staffing Team, From Left to Right: Carma Parrish,
offer suggestions and brain- Perfect Circle Credit Union; Brandon Michaels, San Francisco
storming to enhance the viability Fire Credit Union; and Avery Cashman, Formerly of Service
of CCUL’s service. 1st Federal Credit Union
For more information about this
project, please e-mail Josey Siegenthaler at joseys@filene.org.
48
Gen Y Fast Track
Opportunity
More than 78 million U.S. baby boomers are poised for retirement,
and 54% of workers ages 45 and older will leave the workforce in the
next 10 years. In addition, the annual growth rate of the U.S. work-
force is expected to slow to .06% over the next few decades. Indus-
tries that require workers with specific skill sets—including finance,
accounting, health care, science and technology, and engineering—
will feel the pinch most acutely.
Generation Y—those born in 1978 or later—is a critical demo-
graphic for employers, one that already comprises 22% of the work-
force. In fact, more than half
of the employers surveyed in
More than half of the employers surveyed in MonsterTRAK’s MonsterTRAK’s 2006 Gradu-
2006 Graduation Survey expect to replace a baby boomer with ation Survey expect to replace
a Gen Y employee sometime in the near future. a baby boomer with a Gen Y
employee sometime in the near
future.37
Savvy hiring managers recognize that the future success of their orga-
nizations will depend on proactive, long-term recruitment strategies
that will attract tomorrow’s brightest talent. This requires thinking
more like a marketer: tailoring your messages and outreach efforts
in such a way that is meaningful to the target audience, much in the
same way a company looks to influence consumer behavior.
The Gen Y Fast Track (GYFT) plan aims to do just that—help credit
unions find a way to attract, retain, and help Gen Y grow.
Solution
GYFT is a highly scalable internship, rotation, and mentorship
program tailored directly to the needs and desires of Generation Y
employees. Gen Y is a different type of worker; these employees look
at your company as a “hub of resources.” They expect the following
to be provided for them:38
• Money.
• More control of their schedule.
• Relationships at work.
• Task choice.
• Learning opportunities.
37 Diana Nicholson, “Tomorrow’s Talent: Luring and Retaining Generation Y,” Boston Business Journal, www.bizjournals.com/boston/
stories/2007/01/22/focus2.html.
38 Bruce Turgan, “Managing the Generational Differences” (speech, Navy Federal Credit Union, Vienna, VA, July 2008).
49
What they don’t want: Figure 10: Sample Logo
• To be pigeon-holed in one position or one
task.
• To be left alone. This is the great “oversuper-
vised” generation—they love peers, they want
attention from peers, and they want someone
to have a plan for them.
The GYFT program addresses these unique Gen
Y characteristics and is composed of three parts:
internship, rotation, and mentorship.
Internship
Partner with local universities and/or high schools depending on the
type of internship position available at your credit union and the skill
level required. Have recruiters establish and maintain relationships
with high school counselors and college career services departments.
Encourage credit union executives to offer their time to speak with
students and establish relationships with local professors. Sponsor
“innovation challenges” and university/graduate program projects.
Finally, make sure that each internship position has the following
components:
• Immediate responsibility: Credit unions are uniquely positioned
to offer each intern significant responsibility because many lack
financial resources to add staff just for busywork.
• Regular feedback sessions.
• Visibility: If possible, give interns the opportunity to make pre-
sentations to their supervisors or peers and interact in meetings
with executives.
Rotation
Recruit Gen Y employees for a full-time rotation program at the
same high schools or colleges where you recruit for your internships.
Develop an annual or biannual “class” of incoming recruits. Ideally,
the rotational employees would get to work with the interns, so the
rotation could be aspirational for current interns. The necessary rota-
tion components include the following:
• Three- to six-month positions chosen for recruits based on their
background and the availability of positions.
• Elective rotations that allow the recruit to finish in a chosen
department.
50
• Variety, which could include:
■■ At least two weeks in a branch role.
■■ At least one week on the phone in the call center.
■■ Participating in volunteer outings as a group to develop
camaraderie (Habitat for Humanity, fiscal education at a
local school, supporting a USO event, etc.).
■■ Meeting with the CEO of the credit union to discuss prog-
ress and gain insight into the CEO’s “vision.”
• At the end of two years, the employee, his or her mentor, and
supervisors of available positions will complete a ranking and
pairing process to place the rotational employees in available
positions.
Mentorship
Credit union executives who have the power to shape a rotational
employee’s future should be chosen as mentors. The mentorship
program should be structured as follows:
• Through personality matching (Myers-Briggs, etc.), the men-
tor would be paired with one member of the incoming rotation
“class.”
• Mentors will be engaged within the employee’s first month of
hire.
• Mentors are responsible for working with their mentees to set
up a “growth plan” that includes continuing education goals and
identifying appropriate positions within the company for subse-
quent rotations.
• The mentor’s responsibility is to monitor as a trusted advisor and
head off any issues with the mentee before they arise. The mentor
should have the power to get this done quickly and effectively.
• The mentor will be responsible for mentoring the rotational
employee throughout the two-year rotation and will write the
mentee’s annual review after collecting feedback from the employ-
ee’s rotational managers.
Gen Y Benefits
This program meets Gen Y’s needs by providing for their profes-
sional growth and development, and answering their desires for:
• Relationships.
• Task choice.
• Learning opportunities.
• Responsibility.
• Variety.
• Feedback.
51
This program increases the employee’s eagerness to meet with differ-
ent people, to remain interested, and to learn from different areas.
It aids in building contacts and networks and in getting a mentor. It
makes individuals more self-motivated, flexible, adaptable, innova-
tive, eager to learn, and able to communicate effectively. Finally, it
increases career satisfaction, involvement, and motivation.
Through all this, the rotational employee is not only likely to be hap-
pier but more knowledgeable and better able to understand how he
or she fits into the credit union’s big picture.39

Other than the obvious benefit of filling a credit union position with
an in-demand and motivated Gen Y employee, the credit union will
gain from this program by:
• Breaking down departmental barriers through cross-trained
employees who have credit union–wide networks and friends.
• Enhancing communica-
tion between departments The key component in reaching this market is strong campus
through these networks and communication through the development of significant cam-
the improved understanding pus relationships.
of different departmental
processes and procedures.40
• Training employees with a “soup to nuts” knowledge base about
the credit union so that they are better able to enact changes with
more intelligent understandings of repercussions.
• Increasing the speed at which workers develop.
• Improving retention.41
• Raising its recruiting profile because the unique program will
attract higher-quality applicants.42
Marketing Plan
Since the program is a full-scale approach to attracting and retaining
young professionals, credit unions must, in turn, implement a full-
scale communication strategy to reach their desired audience. The
full program model outlined below is designed for credit unions of
$500M and larger that have the resources to hire multiple full-time
employees in one “class” for professional-level work. Small credit
39 Ibid.
40 John Sullivan, “Develop World Class Job Rotation Programs to Improve Retention” (working paper, College of Business, San Francisco State
University, 1998).
41 Ibid.
42 Ibid.
52
unions could customize elements of the plan on the basis of their
target market and organizational constraints.
Most larger credit unions generally prefer to use their own branding
for recruitment marketing. Therefore, this plan does not provide cre-
ative components for recruiting, but suggested marketing strategies
needed to reach the target market.
Marketing Strategies
Credit unions should use a multiplatform strategy to reach their
target market and communicate the internship/job rotation pro-
grams. The key component in reaching this market is strong campus
communication through the development of significant campus
relationships. These relationships must consist of more than simply
purchasing space at career fairs and hoping that students will rush
to the booth. In order to be effective, strategic partnerships must be
cultivated with targeted high schools or colleges. GYFT recommends
the following recruiting strategies.
Recruiting Teams
In order to develop a personal selling strategy toward the high
school or college community, credit unions should create recruit-
ing teams. These teams should consist of employees who can engage
students and sell the value and level of prestige achieved through a
project-based internship and job rotation participation. They must
also sell the credit union philosophy and personality to the campus
community—including both students and faculty. These recruiting
teams solicit targeted campus faculty and staff for help in identifying
talented students while also seeking face time with students outside
a traditional career fair setting. The teams should be a mix of credit
union staff from various departments (not only human resources).
Career Services
Career development or counseling departments at high schools or
universities have a major influence on student career choices and
companies. Credit unions should develop a strong relationship with
Career Services though corporate sponsorship programs, career fairs,
recruiting mixers, and mock interview seminars.
Business School/High School/College Departments

Developing relationships with academic departments is important
for reaching students. Building these relationships with professors
and staff creates in-house advocates for credit unions. For the intern-
ship program in particular, a professor can promote the value of the
experience and identify students with a high likelihood for success.
Since most school districts and universities have credit unions, many
53
faculty members may already be members and thus they understand
the value of a credit union and can promote the internships more
vigorously.
Classroom Speeches
Credit unions should utilize an excellent and free recruitment
marketing/personal selling opportunity by conducting classroom
speeches. It is important that recruiting teams develop relationships
with faculty and offer to give business talks and personal testimonials
regarding careers in the credit union system. These speeches should
also endorse the internship and job rotation programs.
Student Organizations
Student organizations are another excellent avenue to reach stu-
dents. Generally, highly successful students are involved in student
organizations. Student organizations also offer a great opportunity
to identify high-achieving prospects and speak directly to them in a
captive audience format.
Sponsorship of School Programming

Sponsoring campus activities and programs is quickly becoming a
highly effective recruiting tool for corporations. Such sponsorship
allows direct access to students in a nontraditional format and pro-
vides strong community goodwill.
Branch Advertising
Recruiting teams should make sure to distribute collateral materials
throughout the local branches as well. Parents are often very active in
helping their Gen Y children find jobs and are an excellent source of
word-of-mouth advertising for the programs.
The Competition
The GYFT model addresses the need for developing unique pro-
grams to attract and retain highly talented, upper-tier young profes-
sionals to the credit union system. Financial institutions, particularly
large national banks, spend heavily for their recruitment process and
formal new employee development programs. Gaining a good under-
standing of how other financial institutions organize their recruit-
ment and development process is paramount to developing strategies
to compete.
Direct Competitors
The market for college interns and college graduate jobseekers is
large. In general, credit unions compete against the entire finan-
cial industry for the finite pool of young professionals. Direct
54
competitors include other credit unions, national banks, regional
banks, and community banks. Indirect competitors include invest-
ment firms, financial services agencies, and mortgage lenders.
Additionally, consulting firms and various large corporations actively
recruit young professionals.
The Targets
Competitors are seeking young professionals who generally have
a business-related educational background. The most sought-after
individuals are typically highly involved in extracurricular activities
and have stellar academic achievement. According to Chris Resto,
author of Recruit or Die, employers are also looking for students who
possess professional qualities including communication skills, leader-
ship, teamwork, energy, entrepreneurial spirit, creativity, critical
thinking, analytical skills, self-motivation, technical savvy, resource-
fulness, and integrity.43
Best Practices
The leaders in recruiting in the financial industry have developed a
strategic approach to recruiting and integrating new hires into the
firm. The key to their success is their focus on developing highly
desirable new employee development programs and marketing them
through strategic personal selling and word of mouth. In order to
achieve this, they understand the importance of a strong campus
presence. These industry leaders make a concerted effort to garner
significant face time on college campuses and make it widely known
that they are looking for the best and brightest talent.
Bank of America is a classic example of a financial institution that
makes a significant effort to reach the college market. The bank has
a sponsored relationship with more than 300 major university career
services offices in the United States. It backs its sponsorship dollars
with recruiting teams that conduct classroom and student organiza-
tion speeches highlighting the bank’s internships and specialized
development programs (including job rotation programs) for new
employees.
How GYFT Helps Credit Unions Beat the Competition

The credit union difference—the ability of credit unions to provide
a balanced lifestyle, a civic/social purpose, and lots of responsibility
to early-career employees—makes credit unions ideal for recruiting
and retaining Gen Y. The GYFT model adapts some of the elements
of what other financial institutions are doing but takes a holistic
43 Chris Resto, Ian Ybarra, and Ramit Sethi, Recruit or Die: How Any Business Can Beat the Big Guys in the War for Young Talent (New York:
Portfolio, 2007).
55
approach to attracting young professionals by developing a string of
employment programs—internship, job rotation, and mentorship—
that drives positive word of mouth, provides a multifaceted view of
credit unions, and gives career options to a generation that thrives on
having options.
Younger workers want more than just a good salary; they want to feel
good about the company they work for. Gen Y wants a sense that
their company is cool, committed to a charitable purpose, and focused
on nurturing its employees.44 According to a 2006 Harris poll, Ameri-
can adults 65 and older have only lukewarm feelings toward nonprof-
its, but the feelings of those aged 18–39 are wildly positive.45
One large-asset credit union recently hired a Georgetown MBA and
Gen Yer for an analyst position in the marketing department. The
graduate had initially stated
an expected salary $25,000
above what could be paid for American adults 65 and older have only lukewarm feelings
the position (her expectations toward nonprofits, but the feelings of those aged 18–39 are
were not out of line with what wildly positive.
MBA graduates from George-
town University were making
upon graduation). But after hearing about the benefits and quality
of life this credit union offered, she lowered her salary requirements
and accepted the position. She later said that her primary motivator
when looking for a place to work was the company’s “mission.” She
had previously worked for Merck on a project relating to providing
the HPV vaccine to indigent women, and with Nike on a project
that gave sneakers to underprivileged children. Credit unions provide
what Gen Yers crave, and GYFT facilitates this.
The internship cultivates a pool of students who know what the
credit union is like and have seen the rotation and a full-time posi-
tion as something aspirational. Then the rotation itself (through
providing constant job challenges) helps establish “affective organiza-
tional commitment”46 from the employees, combined with a mentor
who has bought into their career.
This program design takes an integrated approach to identifying,
recruiting, fostering, and retaining young professionals in the credit
union system. By fully implementing this program, large-asset
credit unions can compete with multibillion dollar asset financial
44 “Tomorrow’s Talent: Luring and Retaining Generation Y,” www.bizjournals.com/boston/stories/2007/01/22/focus2.html.
45 Mark Penn, MicroTrends: The Small Forces behind Tomorrow’s Big Changes. With E. Kinney Zalesne (New York: Twelve, 2007), 231.
46 Marlene Dixon et al., “Challenge Is Key: An Investigation of Affective Organizational Commitment in Undergraduate Interns,” The Journal of
Education for Business 80 (January–February 2005): 172–178.
56
institutions by highlighting
credit union competitive advan-
tages over other financial insti-
tutions and taking an aggressive
stance on the development of
young professionals. Portions of
this model allow even small to
midsize credit unions to engage
young professionals directly.
For more information about
Gen Y Fast Track Team, From Left to Right: Katie Miller, Navy
Federal Credit Union; Brandon Kelly, E Federal Credit Union;
and Christina Gaglione, Affinity Federal Credit Union
57
iAdvanceCU.com
Opportunity
A mounting talent shortage that will affect all industries is projected
to peak by 2010. Credit unions and all employers will have to deal
with myriad generational challenges:
• In 15 years, there will be 15% fewer Americans in the
35–45-year-old range. At the same time, the U.S. economy is
likely to grow at a rate of 3%–4% per year.47
• Over that period, the demand for bright, talented 35–45-year-
olds will increase by 25%, and the supply will be going down by
15%.48
These trends will lead to a war for talent that will make it even
harder to retain top employees. Credit unions—large and small—
will be hard-pressed to compete. Combine this shortage with the
reality that Generation Y will not only change jobs but change
careers numerous times, and it’s likely that this generation of employ-
ees will leave your credit union within 2–3 years. Credit unions that
retain talented employees will thrive while competitors spend time
and money in the recruiting cycle.
“I think credit unions do a great job of marketing their services, but I’m not so sure they do such a
great job of career pathing,” says William Kennedy, CEO of Central Florida Postal Credit Union.
The Solution
iAdvanceCU.com is a Web site that unites credit union opportuni-
ties, showcases expeditious career paths, and provides testimoni-
als of relevant Gen Y employees. Credit unions that use it gain a
nationwide presence and benefit from a larger pool of opportunity,
which this generation demands.
“I think credit unions do a great job of marketing their services, but
I’m not so sure they do such a great job of career pathing,” says Wil-
liam Kennedy, CEO of Central Florida Postal Credit Union. At 47,
he is many years away from retirement himself, but he has already
started training candidates to fill his shoes and those of his much
older industry peers.49
47 Charles Fishman, “The War for Talent,” Fast Company (July 1998), www.fastcompany.com/magazine/16/mckinsey.html.
48 Ibid.
49 Lauralee Ortiz, “Partnership with MBA Program Creates CU Career Path,” CU Journal (February 2004), www.cujournal.com/article.html?id=2
0060531AUS1TVB0&queryid=2144882834&hitnum=33.
58
Visiting any local credit union Web site or state network for career
opportunities validates Kennedy’s comments. Out of 49 State Credit
Union Network sites, only 1 had career path functionality, only 1
had testimonials, and all of them combined averaged only 14 job
opportunities. Among the state credit union sites and hundreds of
researched credit unions, only job postings from BECU in Wash-
ington and Teachers Credit Union in Indiana showcased career path
options within their own organizations, but these still lacked any
engagement of the target audience.
iAdvanceCU.com fills that void and serves as a recruiting tool for
credit union talent nationwide. It contains a host of additional
resources and supplemental material:
• Credit union jobs nationwide.
• Showcase CU Career Path—All areas of expertise, including
finance and marketing.
• Mentor Connection—Contact info and live chats to connect
with in each state.
• Gen Y Success Stories—Testimonials and
Figure 11: Sample Logo podcasts from the nation’s youngest CEOs
and VPs, a day in the life.
• Education on the credit union difference.
From the perspective of Generation Y, this site
globalizes all opportunities within the industry.
Rather than perusing site after site, one visit to
iAdvanceCU.com allows a search of all credit
union job opportunities nationwide by depart-
ment, desired state or region, or job title.
Employee Benefits
Upward mobility is a hallmark desire among Gen Y. They want to
understand not only what is expected in their present capacity but,
even more important, what will be required to move into the next
opportunity. iAdvanceCU.com not only will contain credit union
opportunities nationwide but will fill this void for credit union
employees by showcasing clearly defined career paths. This will pro-
vide individuals a better understanding of what it takes to advance
within the industry—even if it means transferring to another credit
union.
By showcasing these opportunities within the industry, talented indi-
viduals who may not have upward mobility at a specific credit union
may still remain within the industry. Although the organization may
fail to retain the employee long term, the credit union system may
retain him or her longer in order to hone the skills necessary for
59
advancement within the industry, making the individual that much
more effective and efficient for your organization.

Credit unions of any size stand to benefit from iAdvanceCU.com.
Even the largest credit unions in the nation lack the ability to offer
opportunities in every department and therefore do not stand a
chance against the global giants and large banking institutions.
For obvious reasons, smaller credit unions face the same issues, but
many also lack the resources and funds to recruit at all. Centralizing
recruitment efforts at iAdvanceCU.com will benefit the industry as
a whole and provide each credit union the opportunity to retain the
talent it currently has plus recruit more effectively.
According to a survey conducted by Deloitte Consulting LLP and
the International Society of Certified Employee Benefit Specialists
(ISCEBS), three-quarters of the 413 U.S. human resources profes-
sionals surveyed cited talent as their top concern—more than the
increasing costs of health care. As a result of the talent shortage, the
survey also showed recruitment costs have increased, with almost
one in two (45%) hiring managers experiencing cost increases
up to 25%. Cost to replace talent is currently at 100 to 150% of
salary, which is likely to increase during the talent shortage.50 As
much as 70% of operating budgets is spent on human capital.
If you have a more engaged employee, his or her productivity
increases 20%.51
iAdvanceCU.com would allow credit unions to:
• Work together to reduce
costs by retaining talent As much as 70% of operating budgets is spent on human capi-
within the industry while at tal. If you have a more engaged employee, his or her productiv-
the same time attracting tal- ity increases 20%.
ent that may not be familiar
with what the industry
offers.
• Highlight the progressive career path opportunities available. In
many cases, credit unions offer a faster career path. When they
exploit this advantage they have a better shot at retaining A-level
talent among this group longer. Elements of iAdvanceCU.com
career-pathing could be adopted and tailored at the individual
credit union Web site and networking sites, and all can point
50 Management-Issues, www.management-issues.com/2008/3/27/research/talent-shortage-tops-hrs-list-of-worries.asp.
51 Mark Herbert from New Paradigms, “Little c to Big C,” webinar.
60
to this global Web site to keep credit unions as competitive
recruiters.
• Provide a nationwide presence for credit unions of all sizes that
will ultimately provide the industry with the ability to compete
for this young talent.
Target Market
The primary audience for iAdvanceCU.com is the 70 million people
who make up the “Me” generation—Generation Y. However, in
order to attract this generation and provide a relevant site, an appeal
must be made first and foremost to the secondary audience, which
includes credit unions large and small, credit union leagues, colleges,
and vendors.
iAdvanceCU.com will employ a variety of marketing strategies to
communicate its advantages in order to reach the primary and sec-
ondary target audiences.
To start, iAdvanceCU.com will be built as an interactive site and a
brand image developed to resonate to the Gen Y crowd. Ideally, the
site will contain a large database of career opportunities, which will
require numerous touch points with our secondary audience. To
achieve this, exposure from the credit unions that are part of Filene’s
30 Under 30 program will be leveraged as well as partnerships formed
with state leagues and other affiliates. This will require a public rela-
tions effort, face-to-face meetings, and eventually potential direct
mail showcasing the finished Web site at iAdvanceCU.com. Once
this substantial grassroots effort is accomplished, these partners will
not only supply the site with all the opportunities available but will
promote the site from their own career opportunity pages.
Through exposure from the secondary audience Web sites, traffic will
be generated to the site by individuals in the credit union’s primary
market who may already be entrenched in the credit union system.
However, in order to achieve exposure to untapped talent outside the
industry, a variety of marketing strategies will be used that will utilize
online channels to reduce marketing costs, such as exposure through
blogs, microblogs, and social networks. This emphasis on online
marketing will be essential to drive word of mouth and achieve ulti-
mate visibility among the Gen Y demographic.
Additional marketing materials—direct mail and fliers—plus other
tools promoting iAdvanceCU.com will be developed for the primary
audience to utilize, thus making it easier to promote the site at career
fairs and college campuses.
61
Operational Considerations
iAdvanceCU.com will initially be produced by the original partner
credit unions—Novation Credit Union and Park Side Federal Credit
Union. To keep costs minimal, the partner credit unions will utilize a
highly skilled freelance designer
as well as a Web developer for
the creation of the Web site and
branding elements. After the
initial start-up, ongoing support
will be provided by the original
partner credit unions until the
site is adopted by another entity,
such as a state league or other
credit union partners.
An initial investment of $6,000,
which has already been contrib-
uted by the two founding credit iAdvanceCU.com Team, From Left to Right: Arnold Ramirez,
unions, makes this program very California Credit Union League; Kia Herd, Alliant Credit
appealing. Additional funds will Union; Jeremy Presta, Park Side Federal Credit Union; and
be raised through contributions Megan Primeau, Novation Credit Union
from the participating credit
unions, credit union leagues and associations, and CUSOs. Small
nominal fees will be assessed depending on the types of services
provided.
Proof of Concept
Numerous credit unions and state networks have already volunteered
to pilot iAdvanceCU.com. A plan is in place to gather at least 50 credit
unions and 10 state networks to provide the following:
• Job opportunities to the iAdvanceCU.com Team to upload to the site.
• A link to iAdvanceCU.com from the individual credit union Web
sites.
• Testimonials of Gen Y talent within their credit union.
Generation Y is indeed the future of the American workplace and
undoubtedly comprises the next generation of nonprofit leaders.
The credit union system must do its best to attract and retain those
leaders, as the traditional practices from previous generations will
no longer work. If the industry fails to understand this and does not
embrace this charge, it will fail to grow and will suffer from it.
62
Chapter 3
Younger Volunteers
Financial products and compelling professional

opportunities for young adults are essential for
the future of credit unions. But perhaps even
more important is attracting younger volunteers
who will inform, and eventually set, the stra-
tegic direction of the credit union. Only 6% of
credit union directors are younger than 40, and
only one in four is younger than 50, according
to a 2005 Filene survey.
Member Advisory Panel
Opportunity
The average age of a credit union CEO is just over 50. The board
members, to whom the CEO answers, have an average age of 56.52 A
young adult member advisory panel (MAP) provides a direct channel
for credit union decision makers to communicate with young adults.
This is an opportunity for credit unions to engage the community,
to find out how to best serve its market, and to give young adults a
voice in the development of credit union products.
A young adult MAP should recognize and attract young members
in the community to become advocates for the credit union. It also
should recognize the talent
young people have and address
their thoughts on the way credit The average age of a credit union CEO is just over 50. The
unions operate. It should be board members, to whom the CEO answers, have an average
designed so that members may age of 56.
directly communicate electroni-
cally with one another through-
out the year on various issues relating to the client credit union.
The opportunity for young people to participate in an advisory panel
is attractive in several ways. They can:
• Use their experience when making financial decisions in the
future.
• Gain professional experience for their résumés.
• Make contacts within the community.
• Learn firsthand the philosophies guiding the credit union system.
Solution
MAP to Success is a package that enables direct access to younger
members by credit union executives. Those making decisions for the
52 CUNA Research Services, quoted in Minnesota Credit Union Network, www.mncun.org/mycup.html.
64
client credit union will no longer rely only on industry numbers and
intuition for new products. Instead, they will gain input from young
members during the decision-making process. Having young mem-
bers’ input during product development not only will help make
for a better product but will get the young member engaged in the
philosophy behind doing business with a credit union.
The panel will be overseen by a member of the credit union’s senior
management team, most likely a marketing executive, and an
employee chosen by the credit union will be in charge of using mate-
rial to facilitate online discussion in addition to conducting quarterly
meetings.
Member Selection
MAP to Success provides an opportunity to use your own credit
union employees to recommend the most qualified candidates. The
credit union selects 14 members to participate in the panel. The term
for participants is 12–24 months. Seven new members join the panel
every year so that the group remains fresh. Members of the panel
will meet in person four times per year, and it is mandatory that each
member attend at least three of the four meetings. Members will
correspond continually throughout the year on a secure Web-based
platform, and they will be asked to participate in short research/
brainstorming assignments at the request of the credit union’s main
contact.
Online Interface
MAP to Success will be your guide for creating an electronic work-
space for panel members to communicate. Implementation is out of
the box and straightforward. The program demonstrates the process
of recruiting quality participants, developing an electronic meeting
space, establishing a curriculum for meetings, and facilitating discus-
sion between the panel and credit union decision makers.
Direct Contact
In addition to participating in online discussions and regular meet-
ings, members of the advisory panel have an opportunity to present
annually to the credit union’s board of directors. This provides the
board an opportunity to interact with members of the panel and hear
a young person’s perspective on issues pertinent to his or her credit
union. It may also introduce talented young volunteers as potential
director candidates to the nominating committee.
65
Member Benefits
MAP to Success gives a voice to a group of young consumers who
spend approximately $200B annually.53 Giving young members
input into the decisions of the credit union will benefit all members
in the following ways:
• Young members in the community will have advocates in the
credit union.
• All members will benefit because products will be reviewed by
young adults, who will bring a new perspective that a different
generation of credit union managers may lack.
• Young members will learn about the values and philosophies that
have shaped the credit union system.
• Young members will be more inclined to at least consider using
a credit union because a young adult advisory panel will cre-
ate a direct relationship with the client credit union and the
community.
• A young adult advisory panel will create more new accounts, giv-
ing the client credit union greater market share.
Young members will be more inclined to at least consider using a credit union because a
young adult advisory panel will create a direct relationship with the client credit union and the
community.
As an incentive to participants, it is recommended that panel mem-

bers receive premier pricing at the credit union. This is at the credit
union’s discretion, but premier pricing may include free checks, no
foreign ATM fees, free online services, and any other benefits given
to applicable members. The target market for the advisory panel is
young adults ages 16–24 within the client credit union’s charter. The
secondary audience is potential 16–24-year-old adults affected by the
credit union’s marketing efforts.

A number of credit union benefits come with simply engaging a
young market of consumers. These consumers are technologically
savvy, informed, and yearn for convenience when it comes to their
finances. Along with the obvious benefits of direct communication,
reduced age of membership, and greater market share, here are three
additional benefits to consider:
53 Fast Company, “Leading Generation Y,” www.fastcompany.com/blog/bea-fields/leading-generation-y/marketing-generation-y-

experience-culture.
66
• New technology will be engaged—In the past, credit unions
have been slow to adapt to new technology. But with a group of
young member-owner advisors and a credit union management
team willing to listen, this dynamic can change. Panel members
will also have the opportunity to create new electronic marketing
campaigns for the client credit union.
• Your credit union will become the brand in your commu-
nity—The young adult advisory panel will comprise members
that you have chosen in the community. These members will talk
to their friends, classmates, and others in the community about
their experience advising the credit union. This will undoubt-
edly have an effect on other young consumers who are looking to
purchase their first car or first home or who are simply building
credit for the future.
• You’ll start your own credit union movement—By creating
a young adult advisory panel, you are creating a new group of
consumers who understand why credit union membership mat-
ters. Panel members and other young adults will then understand
the principles behind being a member-owner as well as the credit
union’s commitment to the community.
Beta Testing
All expected results previously highlighted are based on beta testing
using a MAP with participation from current members of the young
adult panel. Implementation of a young adult member advisory
panel at Wright-Patt Credit Union (WPCU), in Dayton, Ohio, as of
Fall, 2008, is still ongoing. Young adults were recruited, interviewed,
and are currently involved in
various projects at WPCU.
How to Get Started

Download the MAP to Suc-
cess Implementation Guide at
filene.org/home/research/
cutomorrow/30u30 for a step-
by-step approach to starting
your own young adult advisory
panel.
For more information about
Members Advisory Panel Team, From Left to Right: Dustin
Limburg, Wright-Patt Credit Union, and Jansen Perdue,
Hoosier Hills Credit Union
67
Chapter 4
Conclusion
The previous chapters suggested ways to attract

younger members, young professionals, and new
volunteers. All three segments are important,
and all of these open-source ideas are yours to
keep, modify, and use. May they be a start-
ing point for credit unions to appeal to a new
generation.
30 Under 30 participants hail from all over the country and from
every corner of credit unions’ employee base. Many are marketers,
but others work in finance, IT, product development, branch opera-
tions, and human resources. With their work in 30 Under 30, this
group of young professionals has shown that the credit union philos-
ophy is not just alive but thriving. Participants constantly challenged
one another and themselves to develop ideas that would be good for
the credit union and good for the member. A heavy emphasis on
saving among the group suggests that, at least among this segment of
Gen Y, the ideals of thrift, personal responsibility, and prudent bor-
rowing are enjoying a renaissance.
The 30 Under 30 group’s business plans are also available at filene.org
for free perusal and download. The downloads include additional
information and materials not available in this report. Filene, along
with each participant of the 30 Under 30 group, is committed to
providing support, information, and encouragement for the success
of these open-source ideas.
The 30 Under 30 group was designed as an open-source experiment
for the Filene Research Institute. After a year of trailblazing, the
30 Under 30 program will pass to the Credit Union National Asso-
ciation, which has agreed to use the program to promote professional
development and product innovation for the credit union system.
Additionally, the Filene Research Institute is heartened by the
appearance of young adult networking opportunities popping up in
places such as Indiana, Wisconsin, Oregon, and California.
But credit unions don’t have to wait for a formal program to
empower young employees. Who better, after all, to formulate
responses to young adults’ financial needs than young adults them-
selves. Credit unions that constantly and conscientiously empower
their younger professionals invite not just excellent ideas but enthu-
siasm and loyalty. These traits cannot be bought, but they can be
grown.
70
Regardless of where the formal credit union 30 Under 30 group
resides, young professionals are brimming with ideas and fervor for
a credit union system that can thrive among a new generation of
consumers. Difficult economic times mean challenges, and some-
times even wrenching pain, for credit unions in the short term. But
the long-term prospects for cooperative, socially responsible financial
institutions have never been better.
71
Appendix 1
Change Your Savings

Additional Information
Implementation Time
For implementation of the Change Your Savings program, the fol-
lowing investments are assumed:
• Program research: 16 employee-hours.
• Core programming: 32 employee-hours.
• Program testing: 16 employee-hours.
• Total IT investment: 64 employee-hours.
Market-Consumer Research
On average, credit union members make 150 debit card purchases
per year, with an average purchase of $38 and annual purchases
totaling $5,700 per debit card. Of these purchases, 63% are signa-
ture based and 37% are PIN based. Consumers typically don’t have a
preference when choosing credit or debit when making purchases.

With the overwhelming amount of debt that a college graduate has,
about 30% of consumers have named saving for tuition as one of
their primary concerns for their children or themselves. Some parents
have stated that it is ideal to find or keep a position within a uni-
versity or college for the simple fact that tuition for members of the
employee’s family who are attending that university or college will
be paid by the school. Local and state governments are also working
on plans to curb college expenses. The Florida Prepaid College Plan
allows parents to pay a monthly fee to cover a child’s tuition and fees
to participating Florida colleges. The plan starts as early as when the
child is a newborn. New Jersey STARS is a program that allows any
student within the top 20% of his or her graduating high school
class to attend a New Jersey two-year college for free. Although some
states are addressing the issue of the high cost of tuition, they are not
addressing the additional costs of books, transportation, supplies,
and room and board. Even with assistance, parents and students still
need to save for tuition.
About 25% of college students said that they are solely responsible
for their college tuition, according to a survey conducted for the
Change Your Savings program. Fifty percent said that their parents
73
are assisting them with tuition. The last 25% said that their parents
had paid for 100% of their tuition.
Auto Savings Option

Over 50% of consumers in a recent focus group named an auto as
one of their primary reasons for saving.
Home Savings Option

Over 50% of consumers in a recent focus group named a home as
one of their primary reasons for saving.
Debt Savings Option

Over 25% of consumers in a recent focus group stated they would
participate in a program that helped pay down debt.

All participants named different types of short-term savings as a
primary concern, such as saving for a vacation.
74
Appendix 2
Win–Win Savings
Charity Listings
Each member will have the opportunity to select a charity at account
opening. The credit union should prepare a short list of national and
local charities available in case the member needs some guidance.
Some resources for this could be your local United Way or another
nonprofit agency. Here are listings of top national charities:
• 50 largest charities: www.csmonitor.com/2006/1120/
csmimg/50_largest_charities.pdf.
• 200 largest charities: www.forbes.com/2005/11/18/
largest-charities-ratings_05charities_land.html.
• Charity research: www.give.org and www.charitynavigator.org.
Bonus Entries
The following is a suggested guideline for awarding bonus entries:
• Refer-a-Friend: Five bonus entries will be awarded to members
who utilize the Refer-a-Friend program. Both the member mak-
ing the referral and the friend opening the account will receive
five bonus entries. A one-time bonus entry (not perpetual).
• Direct deposit: Five bonus entries will be awarded for mem-
bers who set up direct deposit to their savings account. The
five entries are perpetual—five bonus entries for the life of the
account with a minimum of $10 monthly direct deposit. Should
the member cancel direct deposit or deposit less than $10 per
month, the bonus entries will no longer be awarded.
• Additional credit union products or services: Five bonus entries
for each new product/service the member uses. For example,
a member who establishes an auto loan through the credit
union will receive 10 additional entries. This has much poten-
tial. FORUM Credit Union (Indiana) has a prize-based savings
program called the Weekly Five Club, and the average number of
services per Weekly Five Club player is 3.78. Also, 84% of Weekly
Five Club players have a checking account with the credit union.54
The five entries are perpetual—five bonus entries for each
54 “Save and Win: Will Scaled Up Jackpots, Prize-Based Saving Bring New Members, Better Financial Habits to Michigan CUs?” CEO Report
(Gaithersburg, MD: UCG, 2008), 6.
75
additional product/service currently open. Should the member
close an account, the bonus entries will no longer be awarded.
Members could also receive bonus entries for a blog post on the
credit union’s Web site. This could be about savings goals, financial
questions, or charitable events and causes. Also, additional entries
could be given for community service for members who give back to
the community.
Marketing Plan
Marketing Campaign
In addition to using forms of social media (detailed below), Win–Win
Savings should be advertised the same as any other youth prod-
uct would be advertised. Use direct mail and electronic means to
reach your existing youth membership. In addition to the normal
advertising campaigns, leverage relationships with schools, sporting
programs, and other youth-friendly organizations to help promote
the product. Hosting financial education seminars and speaking
at high schools and colleges in the area will help credit unions get
face-to-face communication with students. Within the program the
credit union can pitch the Win–Win Savings account and provide
take-home materials. Representatives will also be prepared to take
applications and open accounts at the event. Encouraging younger
sales staff to attend these functions will help the audience relate with
the speaker and will increase response. These young staff will act as
brand ambassadors of the program.
For credit unions with the ability to do so, accounts should be able
to be opened through the company’s Web site as well as through
ATM access. Any necessary paperwork to settle the account could be
sent to the member via e-mail communication or mail.
Another vital part of the marketing program will be the real-life-
success campaigns. These real-life winners will be key to keeping the
excitement thriving. Providing information on both the individual
winner and the benefiting charity can attract good press. This should
be provided on the Web, through public relations releases, newslet-
ters, and promotional campaigns.
Most credit unions have found success with standard prize-based sav-
ings products with little or no marketing. Therefore, there is an even
greater potential of increased account openings by rolling out this
product in a big way. A full-blown marketing campaign could consist
of the following:
• Billboards strategically positioned near high schools and colleges
that will help catch the eye of young adults traveling through the
area.
76
• A small incentive offered by the credit union for opening an
account, such as a $25 bonus or five extra entries in the annual
prize drawing, to increase initial excitement about the product.
• An e-mail campaign that will increase awareness of the product.
E-mail lists from schools and colleges would be a great target
market for this product. After the e-mail campaign has had time
to hit, it should be followed with a direct mail campaign to fur-
ther increase awareness. While the need and success of direct mail
has decreased throughout the years with the increase in “junk”
mail, young adults rarely receive mail, so the piece is likely to get
attention. The branding of the mail campaign will match the bill-
board and e-mail campaigns, thus increasing its familiarity with
the young adult. Young adults will be instructed to open their
account online, and the credit union’s home page will be heavily
marketed with this product to make sign-up especially easy dur-
ing the initial launch of the product.
• Automatic sign-up for eStatements for members to keep mainte-
nance costs of the product down.
• “Word of mouth” marketing potential—bonus entries can be
given for referrals (see Appendix 2 for more information).
• Segmented marketing opportunities, internal marketing, and
social media.
Segmented Marketing Opportunities

Another unique aspect of this product is the ability to create seg-
mented marketing messages for different types of young adults (and
their parents). Advertising can be segregated into the following
categories:
• General product marketing and information.
• Marketing that appeals to young adults’ self-interest, focusing
largely on the ability to win prizes and/or cash.
• Marketing that appeals to more socially responsible young adults
that focuses on the ability to win money for a charitable organiza-
tion of their choice.
• Marketing that appeals to young adults’ parents/guardians.
Parents are usually the main trusted source of financial advice
for young adults. Therefore, separate marketing that appeals to
parents that shows that saving can be fun and exciting has great
potential.
Internal Marketing
Increasing internal staff excitement for the product is vital to the suc-
cess of the program. The frontline sales staff controls the success and
energy of this product. When sales staff is excited about the program,
77
more accounts are opened and more members walk away excited
about their new account and the credit union as a whole.
Internal promotions and incentives will stoke excitement and keep
the momentum for the product offering. While staff are not eligible
to win through Win–Win Savings, an internal incentive campaign
could be more effective. In fact, research shows credit unions cur-
rently offering prize-based savings accounts have found more success
with incentives than with allowing staff to participate in winning
the prizes. In particular, Centra Credit Union in Indiana found
great success promoting its prize-based savings account internally
through branch contests with no external marketing. However, when
the internal promotion ended, staff excitement decreased and fewer
accounts were opened; keeping a regular incentive would help keep
the excitement going.
Social Media
Social media is the norm for this target market. Among U.S. col-
lege students, approximately 28% author a blog and 44% read
blogs.55 Providing a blog component gives young adults the oppor-
tunity to promote their charity of choice and talk about financial
struggles and their savings goals (see Members Credit Union’s
www.whatareyousavingfor.com as an example). The blog can also be
a great way for the credit union to talk about upcoming prizes, the
credit union difference, and savings tips. Past prize winners can post
why they chose the charity they did, and local charities will also be
able to leverage this avenue to promote and inform young adults of
their mission and upcoming events. All aspects of the product can be
communicated through this channel.
Additionally, leveraging other forms of social media can enhance the
blog and overall marketing efforts. For example, a Facebook page can
be set up with RSS feeds from the blog and provide another avenue
for members to interact on that platform if they prefer. Canada’s Ser-
vus Credit Union’s Young & Free campaign uses a variety of online
media channels effectively in this way (see www.youngfreealberta.
com—there you can find links to its YouTube videos, Flickr photos,
Twitter feeds, etc.).
Information about the program should be featured prominently on
the credit union’s Web site and in e-mails. This can mean buttons,
widgets, and relevant information that hyperlink back to the main
product blog. Registering a unique URL for the product is recom-
mended (e.g., www.yourproductname.com).
55 en.wikipedia.org/wiki/Generation_Y.
78
Break-Even Projections for Monthly
Prizes
Suggested monthly prize amounts were determined by calculating
an obtainable break-even point. This was completed with the help
of CES Credit Union in Ohio, which introduced a standard prize-
based savings product as its primary share account in January 2008.
President/CEO Kelly Schermerhorn says that CES exceeded its
break-even point in less than five months. In fact, by May 31, 2008,
the credit union had garnered almost $700,000 more than its break-
even point without taking into consideration any ancillary benefits of
the promotion. With a cost of funds of 0.75% and an average yield
on assets, CES Credit Union’s net yield was 5.45% on funds in its
prize-based savings account.
Using these assumptions, a net yield with a cost of funds of 1.00%
was calculated, which is slightly higher than CES Credit Union’s cost
of funds. A monthly award of $5,000 in prizes, totaling $60,000
annually, is recommended. In order to break even with this option,
the credit union will need to bring in approximately $1.2M in
deposits for the Win–Win Savings account.
Acknowledgments
A special thanks goes out to Brie McCarthy at Coors Credit Union
for her input and ideas in the development of this product. The
Win–Win Savings group also wishes to thank the following indi-
viduals (in no particular order) for their input, advice, feedback,
and time: the staff at Filene Research Institute, with special thanks
to Ben Rogers, Mark Meyer, Denise Gabel, Josey Siegenthaler, and
George Hofheimer. Also, we would like to thank Alex Alexander,
Kent Sugg, Tinker Federal Credit Union; Doug True and Andy Mat-
tingly, FORUM Credit Union; Nan Morrow, Centra Credit Union;
Carolyn Jordan, Neighborhood Credit Union; William Azaroff,
Vancity Credit Union (Canada); Kelly V. Schermerhorn, CES Credit
Union; Josh Jones, CUNA; James E. Burns and Leigh Philibosian,
Mid-Atlantic Corporate Federal Credit Union; Tim Eischen, Mem-
bers United Federal Credit Union; Cindy Ships and Sheri Ledbetter,
WesCorp; Rebecca Secor, Member Loyalty Group; Maxine Xodo and
David Dunn, Co-operative Bank (UK); the i3 team on prize-based
savings, and finally the entire 30 Under 30 group.
Figure 12: Win–Win Break-Even Projections

CES credit union
1st year results $2,000 monthly $5,000 monthly $6,000 monthly $10,000 monthly
Total cost of prize giveaways $55,000 $24,000 $60,000 $72,000 $120,000
Breakeven point for shares invested $1,009,174 $461,538 $1,153,846 $1,384,615 $2,307,692
79
We also recognize and are grateful to the following individuals and
organizations for their support throughout the development of this
product: Bruce Beaudette, president/CEO, and Susan Siegel SVP,
Marketing & Branch Operations, Sunmark Federal Credit Union;
Dan Mica, president/CEO, CUNA; and David Rohn, vice president,
CUNA Councils.
80
Appendix 3
iAdvanceCU.com
Financial Analysis
For individual credit unions or state network leagues, costs for
iAdvanceCU.com will be minimal. The site is intended to be a
cooperative, and therefore each credit union would be required to
contribute a nominal yearly fee to the site for utilization, which will
include the ability to post job descriptions. Given the savings in
retention and recruiting costs, which will vary greatly by each credit
union, the overall savings to each credit union could be significant.
The operating costs associated with the continuation of the Web
site will be limited to employee resources and marketing expenses.
Marketing expenses may vary, depending on the number of credit
unions and state leagues utilizing the site. These figures reflect a
yearly expense, and may be increased depending on the response to
the program campaign.
Additional funds will be raised through contributions from the par-
ticipating credit unions, credit union leagues and associations, and
CUSOs. Small nominal fees will be assessed depending on the types
of services provided.
Going forward, assuming the minimum yearly contribution to join
the site per credit union or network is $150, with some contributing
more than that, only 17 participants in 2008 and 30 in 2009 will be
needed to break even. Much like any cooperative, more participants
means greater investments that can be put back into the site and
higher potential for even lower contribution amounts.
Figure 13: Estimated Costs for Program

Expenses 2008 Anticipated 2009 Projected
Web development $5,200 $0
Design/graphics $800 $500
Marketing $2,500 $2,500
Site maintenance $0 $1,500
Cash investment ($6,000)
Total expenses $2,500 $4,500
81
ISBN 978-1-932795-56-1
CU Tomorrow Business Brief

ideas grow here
PO Box 2998 Ben Rogers

Madison, WI 53701-2998 Driver, CU Tomorrow
Phone (608) 231-8550
PUBLICATION #177 (2/09)
www.filene.org ISBN 978-1-932795-56-1

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Deeply embedded in the credit union tradition is an ongoing search

CU Tomorrow is a Filene Research Institute clearinghouse for credit

The Filene Research Institute would like to thank PSCU Financial

Executive Summary and Commentary ix

About the Author xi

Chapter 1 Younger Members 1

Chapter 2 Younger Employees 43

Chapter 3 Younger Volunteers 63

Appendix 1 Change Your Savings Additional Information 73

Appendix 2 Win–Win Savings Additional Information 75

Appendix 3 iAdvanceCU.com Additional Information 81

Plans for Younger Members

Plans for Talented Young Professionals

Young adults’ habits, along with their slang,

Tuition Savings Option

Auto Savings Option

House Savings Option

Debt Reduction Option

Other Savings Option

Credit Union Benefits

Home Savings Option

Debt Savings Option

Operational and Other Considerations

1 See Appendix 1 for a guide to implementation and examples of market-consumer research.

Credit Union Benefits

Operational and Other Considerations

7 Penelope Trunk, “What Gen Y Really Wants,” Time, www.time.com/time/magazine/article/0,9171,1640395,00.html.

How to Get Started

9 FinAid, “Student Loans,” www.finaid.org/loans.

just about to make life-­changing decisions, such

11 Trunk, “What Gen Y Really Wants.”

Advertising to Current Members

Advertising to Prospective Members

Credit Union Benefits

13 College Board, “2008–09 College Prices,” www.collegeboard.com/student/pay/add-it-up/4494.html.

Credit Union Benefits

Proof of Concept: The University of Wisconsin Credit

Internal Sales Force

lar have been known to simply

21 Bureau of Economic Analysis, www.bea.gov/briefrm/saving.htm.

24 Sharon Jayson, “Generation Y Gets Involved,” USA Today, www.usatoday.com/news/nation/2006-10-23-gen-next-cover_x.htm.

Prize Values (suggested starting point)

26 Based on an idea conceived by the Filene i3 group, Prize-based Savings.

Credit Union Benefits

Operational and Other Considerations

Similarly, if more credit unions participate, the average credit union

Prize-Based Savings (Win–Win Savings)

Current Product Use and Financial Condition

What’s Next? features the following:

Operational and Other Considerations

33 2006–2007 National Member Survey (Washington, DC: CUNA, 2006), 3.

34 Harris Interactive YouthPulse Study, 2003, www.harrisinteractive.com/NEWS/allnewsbydate.asp?NewsID=66.

Credit unions can expect short-term mem-

Develop Future Leaders

Shared Staffing Survey

In response to the Shared Staffing survey, Catherine Tieney, president/

Credit unions of all sizes realize that in order to stay com-

Credit Union Benefits

Proof of Concept: The California Credit Union League

just about to make life-changing decisions, such