Ready to Go to Live With You well, sort of

1
Ready to Go to Live With You (well, sort of)

• Payday Lending Focus Group
• Meeting 2
• April 23, 2008

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Agenda

• We Think the Product is Ready
• Review MicroLender by LenderVP (Geoff Johnson)
• Contrasting MicroLender to other software
  products (Mary Lornson, Prospera CU)
• We Think the Process is Ready
• A partnership between LenderVP and GoodMoney
  (Geoff Johnson, Randy Karnes, and Ken Eiden,
  Prospera CU)
• Consulting for payday lending program startup
  (Ken Eiden)
• Using GoodMoney as your program brand (Ken Eiden)
• Are You Ready to Get Started?
• Working with first movers (looking for 6)
• What are the steps?
• June Leadership Conference (Randy Karnes)

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We Think the Product is Ready

• Review MicroLender by LenderVP (Geoff Johnson)
• Contrasting MicroLender to other software
  products (Mary Lornson, Prospera CU)

4
We Think the Product is Ready

• Its the old chicken or the egg dilemma
• To do payday lending with your members, youll
  need to have the confidence that you can process
  a payday loan, efficiently blend payday lending
  into your operations, and handle success in your
  program
• That starts with a tool that helps you envision
  the future MicroLender by LenderVP
• Armed with the confidence to move forward, you
  then need to craft a program GoodMoneySM

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MicroLender by LenderVPA Tool For the Future A
Partnership You Can Count On

• MicroLender responding to all CUs who want to do
  payday lending
• CUAnswers settingthe foundation forCUBASE
  users

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MicroLender by LenderVPA Tool For the Future A
Partnership You Can Count On

• Lets take a look at the tool

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MicroLender by LenderVPA Tool For the Future A
Partnership You Can Count On

• MicroLender is currently in production with
  Prospera CU and part of their GoodMoney offering
  to their members
• Prospera has the day-to-day experience with
  payday lending to be an excellent partner and
  leader in the development of this tool
• Lets get their point of view

Its the CUAnswers way Build it with the
people who use it, get it to market, and innovate
based on the real world
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Traditional Payday Software

• Challenges
• Cost (Set up as a pure profit model)
• Complex for users
• Integration of forms
• Collections
• Notes, member comments
• Upgrades (Communication)

Its the CUAnswers way Make sure the cost of
the tools doesnt eat up all the profits, share
the risk, go into business together, and both
sides earn from lending
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MicroLender by LenderVPA Tool For the Future A
Partnership You Can Count On

• Back to the old chicken or the egg dilemma
• To do payday lending with your members, youll
  need to have the confidence that you can process
  a payday loan, efficiently blend payday lending
  into your operations, and handle success in your
  program
• So are you ready to get started?

Its the CUAnswers way We recognize that a
tool is not a business for your CU...you need a
business plan to get people on board and ready to
make that first loan
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We Think the Process is Ready

• A partnership between LenderVP and GoodMoney
  (Geoff Johnson, Randy Karnes, and Ken Eiden,
  Prospera CU)
• Consulting for payday lending program startup
  (Ken Eiden)
• Using GoodMoney as your program brand (Ken
  Eiden)

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A Unique PartnershipCUAnswers and CUs in it for
the Long Term
Its the CUAnswers way Building strong and
diverse solutions takes a network. Payday
lending is a big part of our business plans Will
it be a big part of your business plan in 2008
and 2009?
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Working With A PeerWhy reinvent the wheel?

• Prospera CU announces a program for CUs based on
  their experience and track record GoodMoney is
  now a process you can bring to your CU

www.myprospera.com
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Why create a turn-key solution?

• Credit Union Charter Page 112 STAT. 914(4)
  Credit unions, unlike many other participants in
  the financial services market, are exempt from
  Federal and most State taxes because they are
  member-owned, democratically operated,
  not-for-profit organizations generally managed by
  volunteer boards of directors and because they
  have the specified mission of meeting the credit
  and savings needs of consumers, especially those
  of modest means.

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Why create a turn-key solution?

• 12-20 of credit union members are using payday
  loans
• Reach traditional payday loan consumer
• Provide alternative for current members
• Create positive financial futures
• Competitive rather than legislative solution
• Protect bottom end of the market

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The GoodMoneySM ProgramConsulting

• Credit Union will receive
• Initial and ongoing training
• Comprehensive training and operations manual
• Advertising and public relations support
• Marketing objectives
• Target market
• Reaching target market
• Characteristics of target market
• Assistance with rationale for obtaining board
  approval
• Transfer of knowledge, approval
  criteria/decisioning factors

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The GoodMoneySM ProgramUsing Our Brand With Your
Members

• Credit Union will receive
• All items that are included in consulting PLUS
• Use of trademarked name, GoodMoney (trademark
  terms will apply)
• Nationally recognized program
• Herb Wegner Memorial Award 2007
• USA Today
• New York Times
• Trade Journals
• Local media
• In addition to advertising and public relations
  support we would provide suggested marketing
  activities accompanied with marketing materials
  and templates

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The GoodMoneySM ProgramBuilding a Winning Payday
Lending Program for Your CU
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The GoodMoneySM ProgramBuilding a Winning Payday
Lending Program for Your CU
Timeline for GoodMoney availability July 1, 2008
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Getting Started

• Working with first movers (looking for 6)
• What are the steps?
• June Leadership Conference (Randy Karnes)

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Looking For First-Movers

• First things first we need to build a focus
  group and set of programs to learn with and from
• In the next 30-60 days, we need to identify a
  group of CUs who can participate in the launch of
  both Prosperas GoodMoney business process and
  the MicroLender payday lending tool
• Are you ready to be part of the first wave?

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GoodMoney 1Business Program Consulting With a
Brand

• GoodMoney Offer
• Use of trademarked GoodMoney name
• Initial and ongoing training
• Comprehensive training and operations manual
• Advertising and public relations
  support/marketing materials
• Assistance with rationale for obtaining board
  approval
• Transfer of knowledge, approval
  criteria/decisioning factors

• MicroLender Offer
• Web-based LOS as described in the current Pay
  Day Advance System MicroLender User and
  Configuration Guide
• Direct connection to CLVerify for payday lending
  data and decisioning
• User documentation and training
• LenderVP client support

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GoodMoney 2Business Program Consulting Without
a Brand

• GoodMoney Offer
• Initial and ongoing training
• Comprehensive training and operations manual
• Advertising and public relations
  support/marketing materials
• Assistance with rationale for obtaining board
  approval
• Transfer of knowledge, approval
  criteria/decisioning factors

• MicroLender Offer
• Web-based LOS as described in the current Pay
  Day Advance System MicroLender User and
  Configuration Guide
• Direct connection to CLVerify for payday lending
  data and decisioning
• User documentation and training
• LenderVP client support

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Other Options

• GoodMoney consulting without a CUAnswers payday
  lending tool
• Create a CUBASE loan category that emulates
  payday lending without buying MicroLender
• You may already have a relationship with an
  alternative tool provider
• GoodMoney can help

• MicroLender payday lending tools without a
  business program consultant
• You may already have a consultant/branded
  product, but you need a tool
• You may decide to go it alone, and you need a
  tool
• MicroLender can help

Todays meeting is about a three-way partnership
your CU, GoodMoney, and MicroLender If you need
a different option, lets talk
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Now for the rest of the story...First-Mover
Pricing

• Five-year contract with both GoodMoney and
  MicroLender
• Startup fees can be divided into 60 equal
  payments over the life of your payday lending
  program

How can you go wrong? Good partners, great
tools, and a price where you can afford to get
busy
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Things To Be Worked Out

• Remember that this is only our second focus group
  meeting on developing payday lending
• Our intention is to work with a small group of
  committed credit unions to smooth out the rough
  spots, get our training and education materials
  up to speed, and work through the details related
  to logistics and unforeseen complications
• If youre ready to get started, we will get a
  packet of contracts and marketing materials out
  to you as quickly as possible for your
  consideration

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The Next Update

• In the next 30-60 days, Prospera and CUAnswers
  will be finalizing our at large marketing
  business plans and you will start to see some big
  announcements
• The next big announcement will be at the
  Leadership Conference on June 18

Thanks for coming!