Lights, Camera, Action!

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Lights, Camera, Action!
2008 Annual Leadership Conference
CUAnswers
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June 18, 2008
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We have a winner!

• Lights, Camera, Action...Win 1,500
• February-March, 2008
• 24 entries submitted
• And the winner is...

Velvet Fuller AAC Credit Union Grand Rapids, MI
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The Owners are Here!

• Topics for the day
• Shedding Some Light on Industry Issues
• Invest...Execute...Earn!
• Last year we announced a Jump to the Future
  where are we today, and what does it mean to
  2009?
• New Declarations
• Can a network set goals to guarantee the
  difference?
• A Year of Collaboration
• It was a big year for the CUAnswers network for
  leading the industry towards a new kind of
  networked future
• Randys Top Ten
• Whats On Your Mind?

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Shedding Some Light on Industry Issues

• Misery loves company when youre grading on a
  scale...so when rainy skies have everyone
  hunkering down, what should you be thinking about
  for when the sun comes out again?

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Navigating a StormWhile Planning to be Stronger
on the Other Side

• You can read, watch TV, and figure out for
  yourself, the national news on our economy is not
  that great
• But the effect from the perspective of members
  and credit unions might be a little different
  during this phase in our economy
• Now may be the best time to invest for the
  inevitable next phase

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Navigating a StormWhile Planning to be Stronger
on the Other Side

• CUAnswers will kick off the day with two
  investments in your 2009 business year
• The upcoming COLA increases will be capped at
  0.01 per member!
• Online ATM/Debit transaction prices will be
  slashed by 0.005 (down 6.6) for 2009!

• You can read, watch TV, and figure out for
  yourself, the national news on our economy is not
  that great
• But the effect from the perspective of members
  and credit unions might be a little different
  during this phase in our economy
• Now may be the best time to invest for the
  inevitable next phase

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Responding to Stormy Skies

• While there is no doubt there are CUs struggling
  with this change in the economy, the national big
  picture is not nearly as bleak as you might think
• Have you considered that you might be the
  standout performer in your marketplace if you
  respond differently than your competition, right
  now?

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Responding to Stormy SkiesWhen Its Raining,
Find an Umbrella Salesman

• Its an old adage that members flock to safety in
  unsure times
• Whats special about right now is that our
  competition might actually be encouraging it
  through their actions and response to a rampant
  time of speculation and bursting bubbles
• Its an advantage to be local and deal with
  real-people experiences

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Responding to Stormy SkiesWhat are your plans
for a sunny day?

• This mortgage crisis is an opportunity for credit
  unions to shine
• As members hunt for solutions to their problems,
  they are finding credit unions are on their side
  and still interested in building a relationship
• The trick will be for us to come out the other
  side of this crisis as a long-term, trusted
  channel for member mortgage needs

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Responding to Stormy SkiesWhat are your plans
for a sunny day?

• Time to draw a line in the sand and make a big
  declaration...and back it up with actions and
  investment
• Later today, well talk about how we will work at
  being known as one of the most aggressive
  mortgage servicing networks in the industry

• This mortgage crisis is an opportunity for credit
  unions to shine
• As members hunt for solutions to their problems,
  they are finding credit unions are on their side
  and still interested in building a relationship
• The trick will be for us to come out the other
  side of this crisis as a long-term, trusted
  channel for member mortgage needs

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Responding to Stormy SkiesWhen Its Raining,
Find an Umbrella Salesman

• The pressure has been building for a long time on
  deceptive credit card practices
• The voice of consumer groups is getting louder,
  and people are listening
• Now a credit crisis, real or imagined, adds to
  the pain
• If you are looking for disruptive signals and a
  time to get active, what more could you ask for?

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Responding to Stormy SkiesWhen Its Raining,
Find an Umbrella Salesman

• CUBASE online credit card programs are growing
  like crazy, but lets invest a bit more
• In 2009, any CU processing their credit card
  portfolio online with CUBASE will see an
  additional price decrease of 0.005 for ATM/Debit
  transactions...for a total savings in 2009 of
  13.3 on ATM/Debit activity

• The pressure has been building for a long time on
  deceptive credit card practices
• The voice of consumer groups is getting louder,
  and people are listening
• Now a credit crisis, real or imagined, adds to
  the pain
• If you are looking for disruptive signals and a
  time to get active, what more could you ask for?

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Responding to Stormy SkiesEverybodys Putting
Money Away For a Rainy Day
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Responding to Stormy SkiesEverybodys Putting
Money Away For a Rainy Day

• Its always a balancing act, understanding the
  flows between emerging delinquencies and
  budgeting the provision for loan loss,
  actualizing charge-offs, and then taking your
  chances with the next delinquency report
• It appears credit unions are doing a good job
• What are you learning about collections right
  now?

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Responding to Stormy SkiesEverybodys Putting
Money Away For a Rainy Day
CUAnswers invested more in Collections during
2008 than in the previous five years
combined LenderVP Collections is making a huge
difference in why With delinquency on everyones
mind, are you planning to revamp how you see
Collections in 2009?

• Its always a balancing act, understanding the
  flows between emerging delinquencies and
  budgeting the provision for loan loss,
  actualizing charge-offs, and then taking your
  chances with the next delinquency report
• It appears credit unions are doing a good job
• What are you learning about collections right
  now?

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Right Now, Credit Unions Stand OutRemember Its
a Sliding Scale
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Responding to Stormy SkiesBack to Reality...Its
Not All Good News

• When it gets to the end of the month, and you
  have to look at your income instatement, and your
  balance sheet all by itself, its not as easy to
  think about an industry perspective, graded on a
  scale
• Its still tough to make big plans on 60 basis
  points of ROA and an asset base that still seems
  too small
• It is the time to strike, invest, and
  innovate...because to emerge from the other side
  of a storm with new opportunities, you have to be
  truly different than you were on the day the
  skies darkened

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The Pressures Will Be the Same...

• ...unless we address these issues in anticipation
  of the next phase
• We need to pump new energy into traditional,
  maturing ideas
• We need to capture the benefits of scale
• We need to be relevant to the next generation
• So when all the pundits remind the market that in
  bad times, credit unions shine, we can only smile
  for a second, and then get right back to work on
  ensuring that well be here, every time theres a
  bad time

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Knowing Your Member is Still the Key to Future
Relevance
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Knowing Your Member is Still the Key to Future
Relevance

• More than knowing your members for who they are
  right now, standing still, we need to look at
  where they are going, and then make sure we are
  moving as fast as they are
• So lets get this party started!

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Invest...Execute...Earn!

• Like clockwork, you can count on us to spend the
  money, develop the products, and put the products
  in your hands, year in and year out
• Are you earning on these investments?

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Marching On June 2007 - June 2008

• Since we last met, we have continued to keep our
  eye on the big prize, but our efforts very
  focused day to day
• Project Statistics June 07 through May 08
• Total projects requested 1,712
• Total projects completed 1,088 (64)
• Outstanding projects as of June 6, 2008 505
• Overall approval rate 93
• Idea Forms
• 580 hits on the Idea Form web page so far in
  2008 (2,521 hits in 2007)
• Worked in batches of about 25
• Blogged with subject-matter expertsat CUAnswers
  and the credit union
• Making sausage...

http//monitor.cuanswers.com/
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Marching On 1998 to 2008A Track Record You Can
Verify

• This year more than ever, releases are fresh in
  everyones mind after all, we just had a big
  one (June 9 online, June 23-24 self processing)
• A 12-page release summary (a record!)
• Over 25 individual major projects which modified
  451 CUBASE programs and added or changed nearly
  50 database files
• 250K-300K average FASB investment
• Its Me 247 alone 125K
• And weve been doing this, day in and day out,
  for over ten years!

What could I improve on without spending a
dime? A CEO Writing His 2008 Business Plan
http//cuanswers.com/client_release_summaries.php
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Marching On 1998 to 2008A Track Record You Can
Verify

• After you build it, you have to document it, sell
  it, and train it
• Once its live, you have to support it ... and
  then start the whole process all over again

• AnswerBook
• 3,109 average contacts per month
• 80 resolved in less than 30 min.
• Client Support
• Avg call length 5.65 minutes
• Avg hold time 1.14 minutes
• Avg of incoming calls 7,800/mo.

• Education
• Since last year...
• 225 classroom or individual events
• 360 web conference sessions (up 12.5)
• 220 days of conversion training/support

• Documentation
• In the last release alone...
• 150 help topics changed
• Dozen booklets updated

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Some of Our Favorites Since Last YearTools to
Connect With Your Members

• Cross-selling is not an employee strategy, it is
  a corporate one, and you should apply the 3 to 1
  rule
• In 2008, we made big advances in rounding out a
  corporate strategy and a series of tools to turn
  leads into income
• Cross Sales integration into Sales Tracker
  conversation notes
• When you hear CRM, know that Sales Tracker is at
  the core of those ideas
• Following up on Sales Leads with the new Work
  Sales Trackers tool

Watch for upcoming web conference training...get
a perspective on these new tools from the
Xtension Call Center team!
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Some of Our Favorites Since Last YearTools to
Connect With Your Members

• More reports enhanced to use the A.S.A.P. /
  Member Connect export process
• Were up to about 30 reports and inquiry tools
  that now allow you to communicate with your
  members on the spot!

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Some of Our Favorites Since Last YearTools for
Lending

• Miscellaneous Coverages (Spring 2008)
• Gap insurance, mechanical breakdown,
  miscellaneous fees, you name it!
• Also included significant enhancements to how
  insurance and debt protection can be quoted on
  your loan requests
• Loan Payment Change History Phase 2 (Fall 2007)
• Changes to the delinquency calculation
• First person responder
• Loan Application trending file (Year-end 2007)
• Know your numbers

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Some of Our Favorites Since Last YearTools for
the Front Line

• Teller Rewrite
• Streamlined flow for faster member service
  consolidated funds in and posting screens
• Comprehensive Verify Member pop-up window
• Check Holds configuration
• Automatic calculation of holds according to
  locale (RT) and amount
• Default holds to match your electronic (ATM)
  holds policies

Coming soon...Business Day Calculator for teller
holds and more!
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Some of Our Favorites Since Last YearTools for
the Back Office

• One-click export of financial statements
  directly to Excel
• Contingent Liability Analysis report and data
  capture

Coming soon...consolidated financial statements
for multi-corp processing!
Coming soon...trend analysis and new tools to
turn contingent limits into real loan balances!
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Some of Our Favorites Since Last YearTools for
Member Service

• Member Personal Banker enhancements
• Automatic reminder to sign the member up for
  e-services
• Complete picture of the members e-status and
  everything you need to service the member in one
  handy location

Throughout the next two years, Its Me 247 is
going to continue to develop the personal aspect
of online banking Every point of contact with
your member will need to amplify that commitment
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Some of Our Favorites Since Last YearTools for
Member Appreciation

• Configurable Patronage Dividends making
  ownership dividends real for your members
• A new, standard program to let you post special
  bonus share dividends and/or loan interest
  rebates to your members, without the usual custom
  programming fees and lead times
• CU-defined configuration
• Posting audit feature to allow you to forecast
  the expense and tweak the configuration settings
  beforeactually posting any dividends tomember
  accounts

Included in the CUBASE 8.0 (June)
release...start planning now for year-end!
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Special Year-End Announcement!

• In the past, bonus programs required
• Lead time notification required by mid-November
  
• Programming Fees typically 400-750 per
  account type
• Price change this year Fees will be doubled and
  the lead time extended to September 30 NO
  exceptions!
• To avoid these fees, plan around the standard
  tool
• If something is missing from the standard tool,
  lets get busy on it NOW
• Watch for some materials you can bring to your
  Board to start brainstorming on what is possible
  with the tools you already have

Included in the CUBASE 8.0 (June)
release...start planning now for year-end!
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Our Favorite Reports
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And surprisingly, one of your favorites...Tools
for Your Staff
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A Report on Jump to the Future

• Invest...Execute...Earn!

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Jumping to the FutureEvolving Capabilities

• Remember this from last year? We threw down the
  gauntlet and started thinking about a new
  foundation for the next decade

2000
2002
2005
2008
2011
2014
2017
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Jumping to the FutureEvolving Capabilities

• Starting last year, we began shaking up some of
  the key foundations of the CUAnswers solution
  suite
• It continues on into 2009

The future

• ATM/Debit Pause for a Cause
• Under the hood
• CUBASE Platinum
• RDI ASP
• Forms
• Online banking

2009
2008
The past
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Jumping to the FutureEvolving Capabilities
On the way to the future, things change...

• Starting last year, we began shaking up some of
  the key foundations of the CUAnswers solution
  suite
• It continues on into 2009

The future

• ATM/Debit Pause for a Cause
• Under the hood
• CUBASE NGS
• eDOC ASP
• eDOC Forms
• Its Me 247

2009
2008
The past
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Jumping to the FutureEvolving Capabilities

• The confidence to redefine yourself and to reset
  the foundation for the next go-around requires
  leadership
• And that brings us to the Robert H. Mackay award

The challenge of leadership is to be strong, but
not rude be kind, but not weak be bold, but not
bully be thoughtful, but not lazy be humble,
but not timid be proud, but not arrogant have
humor, but without folly. Words to live by,
shared by Bob MackayTaken from a quote by Jim
Rohn  
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Jumping to the FutureATM Pause for a Cause
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Jumping to the FutureATM Pause for a Cause
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ATM Pause for a CauseBenefits Gained

• Card system vs. account system
• Unlimited cards and card products per account
• Cards can access accounts across member bases
• Two name lines (if supported by switch)
• Reduced setup time for a new interface
• For your staff
• More consistency across switches to reduce the
  learning curve when changing vendors...and
  complete online help (finally!)
• Reconciliation and settlement improvements
• Improved closed card and card deletion processes
• Expanded configuration options
• ISA fees, fee waivers and rebates, multiple debit
  card hold types
• Online analysis of transaction requests (first
  for us, then CUs)
• Why was my purchase just denied at Best Buy?

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ATM Pause for a CauseBenefits Gained

• Custom card stock by member (if supported by
  switch)
• Single point card maintenance (if supported by
  switch)
• Increased online availability (during nightly
  cycles) and eventual ability for redundancy on
  cuasterisk.com network
• Data encryption for PCI DSS compliance
• Per the email you received on June 4, the
  prototype for this is being released this summer
  when we begin encrypting card PANs in our online
  credit card database
• Rules for data storage and accessibility by
  trusted insiders is changing...so were getting
  ahead of the game now

iSeries box owners This uses a special
third-party utility (think )
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Jumping to the FutureATM Pause for a Cause

• Alpha (certification) testing two switches
  starting in August 2008
• CUSouth with Fifth Third
• CUAnswers with CO-OP
• Beta testing two switches (with CUs) starting in
  September 2008
• Credit unions will see new CUBASE screens and
  processes and staff will need to be trained
• CUSouth client(s) with Fifth Third
• CUAnswers client(s) with CO-OP ?All 50 CO-OP
  credit unions will be in this beta!
• Starting in October, we will begin to roll these
  new features into the other ATM/Debit vendor
  switches

The ATM Pause was a jump to the future,
considered to be a 6-month project...it has
turned into a journey to the future and will
affect things for years to come
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Jumping to the FutureATM Pause for a Cause

• Best laid plans...not that much of a pause
• Existing client ATM/Debit network changes 2
• New client ATM/Debit startups 8
• National Network Shared Branching startups 6
• Credit card conversions 11
• CU changes due to network switch mergers 7
• Compromised card mass reissue 1
• Network mandate projects (Track 2 elimination) 4
• Miscellaneous ATM/Debit projects (Falcon Fraud)
  6
• Total projects completed in addition to PFC 45

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Jumping to the FutureATM Pause for a Cause
A note from the EFT Team... Lately, CUs have
been making decisions about changing vendors, new
program startups (such as HSA debit cards), or
minor configuration changes with their
vendor...but leaving CUAnswers out of the
loop. We dont want to slow you down, but if we
have to scramble at the last minute to make sure
your plans stay on track, everything is at
risk. In 2008, we created a new position
specifically to coordinate with you and be your
liaison to our programming team. Our EFT Product
Specialist is Nadine Thomas (nthomas_at_cuanswers.com
, ext. 141). Much like a conversion
coordinator, Nadine is at your beck and call from
the time you think about making a change, to the
moment that change goes live. Please take
advantage of this new resource we need to be
involved in the choices you make with your
ATM/Debit vendor!
Dont let your network salesman sell you into a
poorly planned change!
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An ATM Sidebar...PBFs 7 Days for the Price of 5!

• Sending PBFs 7 days a week...for the same price
  as 5 days a week
• Operations will be offering a new service to send
  PBFs up to 7 days a week
• Beginning with the 2009 business year (Oct. 1,
  2008)
• Look for announcements coming soon on what is
  available from your switch (5, 6, or 7 days)
• Make sure you verify the cost of additional days
  with your vendor before you give us the green
  light
• PBFs might not be your best bet for avoiding EFT
  fraud dig a little deeper when it comes to
  understanding daily limits, deposit holds, and
  your options when your vendor is offline

The big question is, when (if ever) will PBFs go
away?
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Jumping to the FutureWorkin Under the Hood
Project Released One CU Benefit Gained
Smart Operator June 2006 Continues to be focus of both Operations and Programming (do you know your numbers?)
Processing Date and BOD/EOD improvements Oct./Nov. 2008 Flexibility for conversions, testing, releases (freedom from the calendar)
Member Reach automation Oct./Nov. 2008 Consistently more, more, more
Insurance posting automation June 2008 Custom to your CU and consistent for your member
Supreme 44th April 2008 Capacity, capacity, capacity
Did these changes get by you, or did you notice?
Is there something here that you should take
advantage of in 2009?
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Jumping to the FutureCUBASE The New GOLD
Standard (NGS)

• Time to start getting ready...Something BIG is
  coming this fall!
• Like CU_at_HOME, CUBASE GOLD has been around a
  while
• From August 1999 CUBASE 2 A Focus on
  Presentation
• Time for the nextBIG change for CUBASE GOLD...

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Jumping to the FutureCUBASE The New GOLD
Standard (NGS)

• So how will NGS become a reality?
• Involves a client upgrade on every workstation
• JWalk Windows Client 3.1C3 ? LegaSuite Windows
  Client 4.1
• We have developed an automated tool, but someone
  needs to sit down at every workstation and run
  the tool (about 15 minutes per workstation)
• As of January 2008 (online CUs)
• Total of terminals 3,436 of branches
  254
• Average of terminals per branch 14
• Median of terminals per branch 10
• Branches with more than 20 terminals 49
• Branches with 20 terminals or less 205
• Workstations may need to be upgraded to handle
  1024x768 screen res.

Well be offering a discounted price for a bulk
purchase of flat-panel 17 LCD monitors (around
160-170 depending on the size of the order)
watch for an signup form coming in July!
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Jumping to the FutureCUBASE The New GOLD
Standard (NGS)

• And this is just the beginning...
• 2,200 help topics need new pictures and updated
  content
• Our goal is to have all of these with the initial
  release, but stay tuned...
• 150 booklets will need updated pictures and
  content
• Updates will be ongoing starting in 2009
• 125 online training demo movies need to be
  recreated
• Some online courses may still show GOLD versions
  into 2009
• Some show me and let me movies may be
  consolidated or eliminated
• 40 Excel / comma-delimited downloads to be
  reprogrammed
• Will prioritize with about two-thirds to be
  completed in the first pass, and the rest
  throughout 2009
• Favorites, colors, and more...

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Jumping to the FutureCUBASE The New GOLD
Standard (NGS)

• This is the presentation layer...eye of the
  beholder is everything
• We need to get you into the process and start
  refining it based on what you see
• Ultimately, we must move forward and not be
  trapped by our own past accomplishments

Visit the CUAnswers Kitchen and introduce your
staff to the new look
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Jumping to the FutureCUBASE The New GOLD
Standard (NGS)

• NGS Rollout Events (Final dates to be
  announced.)

Official Kickoff June 18 Leadership Conf.
Preparing Your Network for NGS Monitor Bulk-Purchase Signup Announcement Early July
Special Event Preparing Your Staff for NGS Will include instructions about signing up for your implementation time slot, similar to how we rolled out the CUNextNET project Early September
Credit Union Project Verification period Xtension/WESCO Net project to follow up to verify your plan and key dates September 1 September 30
Implementation Period This is when your staff will upgrade to LegaSuite Windows Client 4.1 and install the first version of NGS October 1 October 31
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Jumping to the FutureeDOC Innovations

• One of the biggest jumps to the future we have
  ever announced was the purchase of Reed Data in
  2006
• This was not only a software project...this was a
  business initiative
• At tonights Annual Stockholders Meeting, I will
  give a report on this investment and its future
• In 2007, we built the ASP solution, and were off
  to the races with teller e-receipts and
  electronic photo ID
• In 2008, we are adding loan documents and setting
  the foundation for CUSPY
• In 2009, eDOC Innovations will be a force in
  Check 21 processing

See you at tonights Stockholders Meeting!
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Jumping to the FutureeDOC ASP

• Over 4 million receipts have been stored in the
  ASP vault
• Over 40,000 member IDs are online today as part
  of our ASP solution
• 47 clients (40 of which are CUBASE users)
• 88 branches
• There are 10 more branches in the queue
• 101 workstations, 42 sig pads, 51 scanners
• The e-receipt and Photo ID product are a perfect
  entry tactic for developing an e-document
  strategy to be successful with your member
• If you are not one of these credit unions, think
  about it for 2009

• 1,162 workstations
• 370 signature pads
• 389 scanners

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Jumping to the FutureeDOC Loan Forms

• eDOC Innovations can handle CUBASE loan forms
  through its own processes today, and does for
  several of our clients
• The new eDOC/CUAnswers ASP solution is about
  redesigning both sides of the equation and
  sending data in a new way to eDOC software
• A standard software change that can be configured
  for any CUBASE CU
• A standard template for any e-document vendor in
  the future
• A new process that can extend beyond loan forms -
  data exchange will become richer over time, for
  more types of forms
• Kent County CU is the current beta and should be
  live by the end of this summer, and well be off
  to the races in 4th Qtr 2008

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Jumping to the FutureeDOC CUSPY Project

• Today, eDOC Innovations processes e-statements
  and daily reports for over 282 clients, 17 in the
  ASP environment
• But all CUAnswers credit unions that process
  e-statements and daily reports through CUSPY do
  so via the CoWWW (OSI) software
• During the 2008 business year we have completed a
  gap analysis on the current processes used for
  CUSPY that integrate with CUBASE and Its Me
  247 online banking
• During 4th Qtr 2008, CUAnswers and eDOC will
  start a project to replace the CoWWW software
  and fully integrate CUBASE and Its Me 247
  with eDOC solutions

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That brings us to Its Me 247...
December 5, 2007

• ..a date that will live in infamy (for many of
  you)

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Personal Technology A Consumer Wave, or an
Addiction?

• How do we respond to a marketplace that seems to
  be going a thousand miles an hour, when most of
  our members seem to be standing still?

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Gadgets or Business? A Member Tactic Does Not
Always Equal a CU Business

• My team spends a lot of time trying to interpret
  current trends and all the crazy things people do
  today, to figure out whether we can credit
  union-ize a consumer activity and make it a
  business reality for our organizations
• Its more than keeping upwith the Joneses
• How do we navigategadgets, fads,
  infatuations,and passing fancies to come up
  with winning solutions?

What Consumer Trends will Drive Innovation in
2009 and Beyond? Lisa Renner, CEO, CU Holding
CompanyFrom the 2008 NACUSO Annual
Conferencewww.nacuso.org
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Gadgets or Business? A Member Tactic Does Not
Always Equal a CU Business

• Does everything that todays consumer does with
  personal technology, translate to something they
  want to do with the credit union?
• Text messaging?
• Watching YouTube videos?
• Social networking?
• Surfing the Net?
• Downloading songs?
• Camera phones Check 21?
• ...that next big thing you readabout in a
  magazine?

For all of us, this is real we invest, we
develop solutions We need to figure this out
together
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Our Launch Pad to a Technology-Crazy World
The ideas are diverse, opinions can be polarized,
and the member response can vary greatly
according to personal feelings and
experiences But most of us agree that it is an
investment that is just in its infancy
63
Its Me 247 Online Banking From December 5 to
Today

• Improvements since December 5
• Transfer improvements
• Resolving the pesky looping issue
• Eliminating per-minute fees and usage tracking,
  changes to self-service fees, marketing clubs and
  Tiered Services
• New lite and high contrast color schemes
• Funds On Hold inquiry

64
Its Me 247 Online Banking From December 5 to
Today

• Improvements since December 5
• Increasing the speed

• More than tripled our bandwidth capacity
• Also added web servers shortly after launch,
  bringing our total number of web servers to 6

Some might say, A rapid response to a need you
created! Others would say, Were off to the
races for what our members need!
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Its Me 247 Online Banking Version Dispatch
Project

• New infrastructure and final stage in the move
  to the itsme247.com URLs
• Provides a method for multiple versions and
  beta-testing special software builds a safer
  environment for stretching the envelope with new
  features and tools
• Final stage in eradicating CU_at_HOME URL
  variations
• Targeted for this summer, to be completed by
  September 1 (so we can beta-test A2A Transfers
  and e-Notices!)

Watch for more information coming soon...just be
sure to wait until you hear from us before
changing your website links!
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Making Its Me 247 Online Banking a Richer Link
to Your Members

• We need to continue reaching out to members
  through email and electronic marketing like never
  before
• Just since January, Member Reach has distributed
• 258,993 email messages
• 239,828 online banking messages
• 72,848 audio response messages
• Thats nearly 572,000 member contacts in just
  five months!
• In the next year, we will enhance how members
  are part of this process

67
Making Its Me 247 Online Banking a Richer Link
to Your Members

• E-Statements and a new Online Banking Use
  Agreement
• New verbiage on the Use Agreement related to Reg
  E and online acceptance of e-statements and other
  electronic notices
• If the member is enrolled via CUBASE, the Use
  Agreement will automatically be re-presented to
  the member the next time they log in to Its Me
  247
• E-statement notifications 2 ways through email
  or through an online banking pop-up message
• New CU-configurable flag for whether the monthly
  notification must be delivered via email or
  whether the member can elect to receive just a
  message in online banking

If a member doesnt want a paper statement in
their mailbox, do they want an email in their
inbox that says they have a relationship with
you? Private is private
68
Making Its Me 247 Online Banking a Richer Link
to Your Members

• Handling bad email addresses
• Will be adding a new Wrong email address flag
  in the MASTER record
• Automatic pop-up message in Its Me 247
  requesting an updated email address from the
  member
• Automatic pop-up message to CU staff from various
  CUBASE screens
• Marketing opt-outs
• Will be adding two new Y/N flags
• 3rd party marketing contacts
• CU marketing/education contacts
• Will allow members to opt out via Its Me 247 or
  via CUBASE
• Member Connect and other CUBASE tools will use
  the flags
• Preferred contact method

Do you get the feel of this? We want members to
elect e-notices, to elect e-statements, elect
e-alerts...and we want to do everything possible
so they elect us as a trusted partner when it
comes to electronic communications and marketing
69
Making Its Me 247 Online Banking a Richer Link
to Your Members

• Secure chat and file exchange
• The 2009 business plan will include an investment
  in a secure message center to use
• Between CUAnswers and your credit union
• As the foundation for secure chat between your CU
  and your members
• We have already identified a credit union as a
  proof-of-concept partner for building an Xtension
  Call Center web chat shared service offering
• Will you be ready to answer member emails from
  Its Me 247 or your website?
• What comes to mind when I say Internet
  fulfillment?
• What comes to mind when I say Call Center
  fulfillment?
• Other uses gathering feedback from members on
  Its Me 247
• Surveys, comments, etc. either in Its Me 247,
  or Member Reach, or OBC (make it a real
  community)

70
Making Its Me 247 Online Banking a Richer Link
to Your Members

• Managing More than a Membership through Its Me
  247
• Leveraging the Transfer Control feature for
  working with other credit union memberships -
  using Its Me 247 and PIB controls for
• Transferring to other CU memberships
• Jumping to other CU memberships (no logoff
  required!)
• Transferring to and from other financial
  institutions (A2)
• Navigating the Xtend Shared Branching network

71
Its Me 247 Online Banking Under Development Now

• A2A (Account-to-Account) transfers between the
  credit union and other financial institutions
• Magic-Wrighter ACH interface
• Both an online banking and CUBASE product for
  members and for staff

A new, more intuitive flow for transferring money
in Its Me 247!
72
Its Me 247 Online Banking Under Development Now

• e-Notices
• Biggest money saver since e-statements
• Will include enhancements to the online banking
  message center
• Filter by message type
• Delete messages

73
Its Me 247 Online Banking Under Development Now

• Extending Tiered Services to the online banking
  member -
• Deepening the visible relationships with members
• A project in 3 phases
• Part 1 What points did I get and how did I get
  them? (in development now)
• Part 2 What rewards do I get for those points?
• Part 3 Redeem my points!

These samples are from the prototype...and its
already evolving!
74
Special Announcement Tiered Services Focus Group

• Mark your calendars for October 16, 2008
• We will unveil our plan for Tiered Services
  development for 2009
• We plan some big releases throughout 2009 related
  to taking Tiered Services to the next level
• What additional things would you like to see
  scored?
• How about unlimited dividend applications for
  scoring?
• Separate scoring/rewards system for
  organizational accounts?
• Is anybody really ever going to use Lifetime
  Points?
• Starting over, rolling year(s)?
• Cap on lifetime points?
• Redeeming points when opening accounts, redeeming
  CDs, etc.?

Make sure your Tiered Services gurus mark this
date on their calendars we will be scouring Idea
Forms and old wish lists to get ready for this
meeting
75
Its Me 247 Online Banking Under Development Now

• Teller receipt analysis through e-statements
• Continuing to develop Its Me 247 as a strong
  tool for business members

(Also remember the Account Activity Analysis
feature added to e-statements earlier this year!)
76
Its Me 247 Online Banking Dreams Becoming Specs

• Pending ACH transactions
• New wizard for the PIB profile
• Facelift for the Online Banking Community (OBC)
• Where does payday lending fit with online
  banking?
• Allowing members to change renewal settings on
  maturing CDs
• Opening accounts with expanded joint owner
  information
• Either a variation of Transfer Control or pull
  from existing JOs only
• Next Suggested Product and more automation
  around the personal profile of a member

Big goals for the 2009 development year...Look
for focus groups and In-The-Kitchen projects to
help move these along
77
Its Me 247 Online Banking Downloads to Quicken
/ QuickBooks!

• Its finally here!
• Intuits annual cycle runs Aug 1 July 31
• No pro-rating for partial years
• Remember features that are already in Its Me 247
  to help members move data for their personal
  finance analysis
• Download from CUEasyPay! to QIF file
• Account Detail filters
• XML downloads to CSV files
• E-Statement Account Activity Analysis
• Teller Receipt Analysis (coming soon)

Do you have a flyer or web page with tips that
sell how much your members can already do related
to moving information?
78
Risk Assessments for Online Activities...NOT a
one-time event!

• We continue to improve the process to roll out
  PIB to your members
• Most recent changes
• Ability to allow online PIB access for staff but
  not for members, or to switch gears down the
  road
• Ability to flood new default profile settings
  to all member PIB profiles
• PIB is a very important tool in managing online
  risk you need to get active
• PIB is becoming a major platform for extending
  new services to your membership you need to get
  active

So if you thought PIB was yesterdays news, think
again In the next 12 months, you need to get
active with these ideas
79
Risk Assessments for Online Activities...NOT a
one-time event!

• Expanded passwords for online banking
• We have no choice . . . Do you?
• As of June, 19 CUs still use the same PIN for
  audio and online banking (no change since
  January)
• Some CUs still use passwords fewer than 6
  characters
• Important Sunset Announcement

• As of June 30, 2009
• We will remove the ability for CUs to use the
  same PIN for audio response and online banking
• We will increase the minimum password length from
  4 to 6 characters

80
Banca en línea en español(Online Banking in
Spanish)

• In 2009, we will begin a project with a new
  CUBASE user to deliver a Spanish language
  version of Its Me 247 online banking
• This will be a journey, not a project you can
  translate something, but does it still convey the
  right message in the other language?
• Should we translate
• Online Banking Community?
• Every web page?
• Our online help?
• Your messages to your members?
• Transaction descriptions?
• Sales and product description information?

http//translate.google.com
81
Where are members taking us?Deposits from Home

• Remote Capture Member check deposits via an
  image that the member scans and sends from home
• From eDOC, to the CO-OP Network, to the corporate
  credit union network everyone is working on the
  ideas around remote capture
• It is easier than it is safe
• Are you ready to jump onthis bandwagon?

Look for an eDOC solution early in 2009
www.deposzip.com
82
Where are members taking us?Mobile/Cell Phone
Banking

• We havent found a vendor that we believe has any
  of the following
• A credit union willing to invest
• A financial model to entice the CUSO to invest
• A market analysis that says members are ready to
  adopt
• A prospective client saying this is a deal
  breaker
• Therefore, while I continue to have meetings,
  stay in the loop, and watch for signals, mostly
  its still a wait-and-see game for us

83
Where are members taking us?Text Messaging

• Currently reviewing partners who would convert
  online banking and email messages sent to members
  from CUBASE, into text messages that could be
  distributed through the cell phone channel
• Member Reach messages
• Member-elected e-Alerts
• Marketing messages around member preferences
• The trick is defining who wants this kind of
  message and how to afford it
• Today, an internally-developed solutiondoes not
  seem practical
• What is your budget for text messagingto your
  members?

www.celltrust.com
84
What are you thinking about?
When that one-in-a-thousand member walks in and
says, When will I be able to check my balance
through my car radio? what will you say? When
will Ford advertise that their Synch product will
dial into ARU? (I still think holographic
banking might be a way off)
85
Navigating the PossibilitiesWhat do we use for a
technology compass?

• For it all to come together, we need a meeting of
  the minds on where members are taking us, whats
  hot, and whats the business opportunity

86
New Declarations

• Tools, Processes, and Goals for the Future

87
New Declarations Our Goals
To achieve the lowest cost of going active with
innovation
To have the lowest cost in the industry for
compliance
To be known as one of the most aggressive
mortgage servicing networks
88
Lowest Cost of Going Active With InnovationA
Well-crafted Network

• Last year we introduced the concept of A.S.A.P.
  (Ask, See, Act, Profit)
• Zipping the process of marketing communications
• How could a well-crafted network do the same for
  innovation?
• Speed the time between finding an idea and
  executing on it
• Speed the time between recognizing a need and
  delivering a solution
• Eliminate the duplication of standalone work and
  replace it with the benefits of shared work
• Well-crafted networks are rich in content and the
  tools that make all that is known, visible to all
  participants
• But once things are visible, how do you make them
  your own? How could the relationships that we
  build in CUAnswers allow us to simply import,
  append, or ratify your next solution?

89
Lowest Cost of Going Active With InnovationA
Well-crafted Network

• Some early examples

But how much further can we go?
90
Lowest Cost of Going Active With InnovationA
Well-crafted Network

• Some ideas we are continuing to work on

Learn from a peer
Phase 1 was for your auditors with the view-only
configurations on the new MNAUDT menu look for a
growing list of visible configurations
91
Lowest Cost of Going Active With Innovation
CUTalent A 2009 Initiative

• At a recent Board Planning workshop, I introduced
  the concept of CUTalent and a new Intranet
  initiative
• On the ground floor ... Later this year
  CUAnswers will go into the Intranet business
• At 5,000 feet ... Our new Intranet Community
  servers will allow credit unions who utilize SRS
  services to go live with our shared personnel
• At 10,000 feet ... There is a potential for
  3,000 credit union employees and 100
  organizations to go live to capture talent in a
  brand new way

http//cuanswers.com/pdf/ppt/Passageways_PowWow_Ma
y_08.ppt
92
Lowest Cost of Going Active With Innovation
CUTalent More than a Technical Highway

• For CUTalent to work, it will need more than a
  cool highway of bits and bytes and technical
  wizardry
• It will take people, and blending the ideas
  around leadership, coordination, succession
  planning, and HR standards with a new-age respect
  for all that could be accomplished by an active
  collaboration of talented credit union
  professionals

93
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union

• CUAnswers has a rich history with using an
  Intranet to improve our organization
• Whether it be SAS70 examinations, new employee
  orientations, tracking team activities, or simply
  organizing the tens of thousands of documents,
  forms, and stuff that we need to do our
  day-to-day jobs
• For several years now, weve been touting the
  power of what an Intranet can do for any
  organization
• In 2009, we will bring a new solutionto the
  owners and participants ofCUAnswers

94
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union
CUAnswers employees went live on June 11
95
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union

• Our new partnership with Passageways is a unique
  venture
• It is based on the mutual aspirations of both
  CUAnswers and Passageways to build an aggressive
  network of Intranets for a new kind of sharing
• It started with an investment by CUAnswers that
  assures every CUBASE CU the chance to use one of
  the premier portal tools on the market
• This shared investment will allow CUAnswers to
  extend this new ASP service to your CU through
  our existing education and web services channels
• Both CUAnswers and Passageways are investing
• How much do we have to charge for the software?
  (0, according to the contract the software is
  paid for)
• How much will it take in support to get your team
  up and running? (best guess, 1K-2K one-time
  fee, but your do-it-yourself attitude might
  surprise me)

This is truly a network investment, and it will
take until January 2009 for us to deliver the
details
96
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union

• How much will it cost on a monthly basis?
• The payoff from this investment is not the direct
  return of monthly revenues or big up-front
  software sales...it will come from building a
  network of digital organizations that thrive, and
  seeing what opportunities there are in sharing

Asset Size Monthly Maintenance
0 - 50M 300 per month
50M - 200M 450 per month
200M 600 per month
This is truly a network investment, and it will
take until January 2009 for us to deliver the
details
97
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union

• The Passageways Portal is a rich environment of
  modules that ensure that your operation is
  enhanced by more than just a highway or
  communication portal
• This investment includes
• The Portal Framework
• Group Collaboration Module
• Expense Reporting Module
• Microsoft Outlook Module
• E-Forms Builder Module
• Consistent with other investments like this,
  credit unions will have the opportunity to
  purchase other modules to enhance their
  individual configurations

• Help Desk Management Module
• Timesheet Management Module
• Assigned Tasks Module
• Products and Services Module

Learn more at www.passageways.com
98
Lowest Cost of Going Active With Innovation
Offering an Intranet to Your Credit Union

• Rough, big-picture vision of the calendar

Phase 1 CUAnswers goes live (June 2008)
Phase 2 cuasterisk.com partners go live as ASP
nodes
Phase 3 Credit unions go live as ASP nodes
Phase 4 SRS Community servers go live
(bookkeeping, collections)
Phase 5 Credit unions start to offer services
through community initiatives
This is a work in progress...if you need to move
now, and have the funds and the staff to do so,
we encourage you to talk to Passageways and get
started (Just remember that we told you were
going to do some big things in the future!)
99
Lowest Cost of Going Active With Innovation
Tiered Service The Network View

• This booklet was designed from a new program that
  aggregates Tiered Services scoring of all
  CUAnswers online credit unions in a single
  operation
• We anticipate adding a command key to the Tiered
  Services analysis that would allow you to view
  and compare your results with the network on a
  monthly basis
• Benchmark your performance
• Search for what you have in common and what
  makes you different
• Inspire your teams
• Search for peers who might help you with your
  next idea

What has changed since 2005 about the way your
members score?
100
Lowest Cost In the Industry for ComplianceA
Collaborative View

• Its easy to agree and cooperate on things that
  have a single answer
• 112 ... everyone agree?
• That is, until we dont all use the same formula
• BSA method 1 Combine in and out
• BSA method 2 Separate in from out
• The interpretation of rules, and then how to
  execute on that interpretation, never seems to
  have a single answer
• Reg. D configurations, Reg. E configurations, BSA
  configurations, Chart of Accounts
  configurations...
• For a data processor, whose golden rule is we
  create tools, not rules building a compliance
  company is a real challenge

From the DP perspective, you are on your own
when it comes to gray areas in compliance But
what about our CUSO, our network perspective?
Could it be different?
101
Lowest Cost In the Industry for ComplianceA
Collaborative View

• So from the CUSO perspective, could we build a
  cooperative, collaborative view of how to comply?
• Could we have a working model to analyze,
  understand, and even make judgment calls about
  one way to do it?
• Could we have a working model that aggressively
  tries to drive down the cost of day-to-day
  execution around compliance and auditing?
• Could we use that aggressive model to improve the
  software and tool foundation that everyone uses
  in diverse ways?
• The vision is Yes and in 2008, we are starting
  Audit Link

102
Lowest Cost In the Industry for ComplianceAudit
Link

• Audit Link is like SRS Bookkeeping
• Do the work, every day, using CUBASE tools
  intensely
• Drive throughput as hard as possible and innovate
  to meet the goal
• Share with everyone, clients and non-clients,
  what we learn be a template for everybody

Do you have documented processes to innovate
against? Its more than just a user manual
103
Lowest Cost In the Industry for ComplianceAudit
Link SRS An Active Collaboration

• In 2009, we plan to leverage the participants in
  Audit Link and SRS as the working focus groups to
  take on the challenges related to understanding
  if a project makes sense, then designing
  specifications, project oversight, and
  implementation of some key projects
• Automating third-party risk assessments
  (defending our products)
• 5300 reporting and analysis (streamlining a
  quarterly chore)
• Red Flag (itll take a group of us to figure this
  one out!)
• Enhanced Due Diligence (work-flowing new member
  processes)
• A network solution for ALM (using data better)

EDD open suggestion period runs through June 30
send your ideas to dmoore_at_cuanswers.com (weve
heard from just 5 of you so far!)
104
Lowest Cost In the Industry for ComplianceAudit
Link Up and Running

• Developed new business plan and rolled initiative
  to client base in January 2008
• 14 credit unions sign up by April 2008
• 6 credit unions currently have been through an
  initial contact
• Doing the daily work for 4 CUs with the
  expectation of 10 by the end of the Q3
• New web site for Audit community by the end of
  Q3 to explain the new audit community,
  compliance updates, audit blogs, best practices

http//xtendcu.com/pages/audit
105
Lowest Cost In the Industry for
Compliance2008/2009 Actions Towards This Goal

• Tools for your Auditor (released June 2008)
• MNAUDT
• Audit Tracker
• Coming soon...another round of BSA improvements
• The problem Sources of activity that fall under
  BSA monitoring rules are changing
• CUBASE shared branch activity
• National shared branch activity
• Unspecified activity (will ATMs ever fall in
  here?)
• To date, weve resisted and followed suit with
  the nationals, trying to exclude shared branch
  activity from the base BSA monitoring
• We didnt win, and changes are needed for 2008...

106
Lowest Cost In the Industry for ComplianceThe
Future of CUBASE BSA Tools
Interactive
Daily Analysis/Monitoring

• Sending a warning to the teller handling a
  members visit
• The visit is your member or a shared branch
  member
• The message just says Verify against BSA rules
  a signal that something should be done
• The SARS-type message says Member has other
  transactions today
• External sources will not be evaluated for
  interactive messages for the foreseeable future

• Based on the CUs BSA configuration
• Evaluates only activity that occurred at the
  members CU
• Analyzed at end of day
• Creates the BSA summary for recommending activity
  to audit through the BSA Inquiry/Report
• Will add additional sources of member activity to
  the file that is analyzed at end of day
• Starting with Xtend SB activity
• Next FSCC pilot project
• Will create an engine for future sources of
  activity

107
Lowest Cost In the Industry for ComplianceThe
Future of CUBASE BSA Tools
Audit Link will use these tools like never
before...and that will lead to some great new
changes
108
Lowest Cost In the Industry for
CompliancePrivacy 2010

• A different