2014 Business Plan

Gearing Up for a “95/5” Year

95% Focusing the Next 12 Months on Delivering on Past Commitments 5% Staying the Course on Our Goals to be Visionaries, Challengers, & Game Changers

August 2013

An Ongoing Foundation For How We Plan, Every Year

Reviewing Our Approach

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(1) Differentiating Our Network Approach Old Game/New Game

Old Game (Standalone CU Model)

New Game (Collaborative/ Networked CU Model)

1 People Who Need Leaders (CU boards/ volunteers with a charter)

The Ultimate Client 10 (CU boards looking to field a team to lead their organization)

2 People Who Lead and Need Processes to Run a Business

(CU CEOs)

Professional Management Vendors 9 (Organizations designed to lead networks of credit unions

or operational clusters)

3 People Who Design Processes for People to Use Tools

(CU management teams) Professional Service Vendors 8 (Organizations designed to consult and outsource process oversight and design)

4 People Who Use Tools (CU staff members)

Shared Employee Service Businesses 7 (Organizations designed to execute on behalf of the CU’s business plan through

shared teams and personnel offerings)

5 Tools (CU*Answers solutions, old game)

Tool Providers 6 (CU*Answers solutions, old game)

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(2) Attacking Our Marketplace with a Layered Design

LAYER 1: CU*A TOOL PROVIDER/CLASSIC CORE PROCESSING 1. Packaged revenue expectations 2. Diverse and general approaches 3. Responding to operational models and configurations 4. Leveraging an active audience upstream to conceptual models, and their evolution

LAYER 2: CU*ANSWERS MANAGEMENT SERVICES 5. A la carte service revenue expectations 6. Specialty services and expert approaches 7. Driving conceptual models and change into credit union configurations 8. Leveraging expertise downstream for core processing depth and expertise

LAYER 3: CUASTERISK.COM NETWORK CONFIGURATIONS 9. Wholesale and alliance-based revenue expectations

10. Franchise-like business expansion (cuasterisk operations) 11. Alliance-based alternative business expansion (non-CU*BASE leverage) 12. Shared infrastructure projects 13. Leveraging expertise across shared commonalities

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(3) Goals for Expanding our Client Base

1. Work with more diverse and complex CUs who have dedicated and specialized teams.

2. Increase our solutions’ viability for larger CUs and match up better with a wider set of CU decision-makers.

3. Broaden our geographic marketplace and build additional regional intensity to expand where we are doing business.

4. Leverage our capabilities, talents, and software copyrights to expand into other businesses, both inside and outside the credit union industry.

Manage FEP/ING

Manage Conversions

Attacking the 95% in 2014

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Goal #1 for 2014:

Manage FEP/ING

Finish the programming and keep the programming team ready to respond to QC and rollout issues Finish the QC and documentation efforts, over and over, until we get it right

Use talents from every department at the point of need as things come up

Be single-minded until this is complete – free up these resources as needed to stay focused

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Goal #1 for 2014:

Manage FEP/ING

Manage our release schedule for 2014 ING rollout in February 2014 FEP rollout in September

2014 Normal CU*BASE software

releases during 2014 “Life happens”...

Accounting Top 10 projects Key Lending projects such as

Associated Apps Misc. Analytics projects

Will likely use the new Active Beta process even more in 2014

Summary of FEP/ING Beta Timelines Revised 7/19/2013

ING Beta

May 2013 Jun 2013 Jul 2013 Aug 2013 Sept 2013 Oct 2013 Nov 2013 Dec 2013 Jan 2014 Feb 2014 2 online CUs + 8 CU*A Bd + 2 online CUs

+ 7 Site-4 CUs + 1-2 SP + Others?

ALL CUs Live

2 CUs over 9 months + 8 CUs over 6 months + 9 CUs over 5 months + ?? CUs over ?? months (make sure to include FEP beta CUs!)

19 Beta CUs

$500/mo for 2 CUs over 9 months* = $9,000

$0 $0 $0 $9,000

*Randy said he told these two CUs he’d pay them “through the end of the year” so this might be one month too many.

FEP Beta No newly-converted CUs No Xtend Shared Branch CUs National Shared Branch CUs ?? (Checking on impact for Services Center)

February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014

2 online CUs* + SCFCU (3, SB)* + 1 SP*

+ 2-3 more OL + 2 more SP

+ 25 CU*NW + ?? CU*S??

+ Others? ALL CUs Live

6 CUs over 7 months (*NOTE: These must be CUs who launched early on ING!) + 5 CUs over 5 months + 25 CUs over 3 months + ?? CUs over 2 months 36 Beta CUs

$500/mo for 6 CUs over 7 months = $21,000

$300/mo for 5 CUs over 5 months = $7,500

$500/CU (one-time) = $12,500

$0 $41,000

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Interesting sidebar...

It’s My Biz 247

Creates the vision for multiple, targeted online banking applications

It’s My Biz 247 will develop into its own copyright – might be the first property we take outside of the CU*BASE audience Helping credit unions be able to say,

“we’re a credit union for businesses”

Mobility – products for the CU executive of the future

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Goal #2 for 2014:

Manage Conversions

Conversion resources may come from the same pool that is developing and delivering on FEP/ING Teams need to understand their

priorities, deadlines, and the importance of communicating changes constantly

Develop an independent merger management resource Market that we will help CUs acquire merger

opportunities, beyond just facilitating the data processing project

Be ready to flex our investment in staff, travel, and concessions to complete these projects on time and meet the expectations of our new partners

Conversion blackout: October-

December 2014

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Interesting sidebar...

Sales Planning

With a sold-out 2014 conversion calendar and the blackout period for FEP, sales will have some new focuses in 2014: Introductions to new markets (the Vic Pantea

project) Prepare our launch for an aggressive attack on in-

house servicing opportunities Make the call:

Open new Tier 1 markets and aggressively fund their expansion, OR

Purchase markets and start an M&A investment initiative, OR

Make a concrete investment in cuasterisk.com and expand our wholesale partners list

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Attacking the 95% in 2014

Stay focused until we deliver FEP/ING and all of our contracted conversions Oh, and handle mergers, de-conversions, vendor

changes, EFT mandates, regulatory changes that pop up...

In other words, a normal year Development and delivery processes will be on

hyper drive in 2014“It’s a good test to see how we can step up and one day say that it’s normal around here to deliver big development projects and over 150K members every year. Let’s build a design so that we can jump up a tier and start a new growth curve for the next decade.”

Goal #1: Stay the Course on Our 2013 Business Plan Theme

Goal #2: Business Development

Goal #3: UCI

Goal #4: e-Documents Culture Change

Goal #5: The Next Decade

Attacking the 5% in 2014

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Goal #1: Stay the Course on our 2013 Theme

Someday when people look back on CU*Answers, what do we want them to say?

Remember the projects from 2013 and constantly ask, “is the marketplace starting to perceive us this

way?”

“CU*Answers was a team of visionaries, game changers, and

challengers...cuasterisk.com was a network of

those kinds of people, and inspired generations of credit unions to adopt those same

goals.”

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Goal #2: Business Development

Build a business development process and set of resources Effective in building businesses Tangible enough to market our capabilities for business

development

Create a stable of business development project managers who work through a process design A spec and program for connecting business

development project managers with CU*Answers talents who’ve built the businesses we already have Production Center DR/BR efforts Accounting and legal services Consulting Building businesses through

cuasterisk.com

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Goal #2: UCI

Take our middleware investment to the next level Reposition its brand and sell its potential as a new

platform

Create a deeper set of vendor references for its potential and a standing resource for quicker response to projects

Create a deep list of transaction types with various purposes Post to a member’s account, authenticate a user, update

data, create a relationship, etc.

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Goal #3: e-Documents Culture Change

Truly embed these ideas in our organization so that we are experts beyond a vendor relationship and can guarantee how those ideas work for our clients and owners

The next decade for eDOC returns needs new expectations

Coming with ING in

February 2014!

Scan e-Document

View e-Document

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ID

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Goal #4: The Next Decade

Develop a marketing campaign and set of elevator speeches about the opportunity we see in the next decade and how we are driving to constantly evolve the model Sell our Pricing Focus Group Study and respond to the potential impact of new

owners Develop the confidence (inside and out) that we can

transition our team resources based on anticipated departures in the next 10 years

Take a hard look at our events calendar and what we are expecting from our clients and owners as far as time and input

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And don’t forget...

Continuing on our 2012 and 2013 paths towards:

Improving our solutions (what we sell)

Improving our business (supporting what we sell)

Improving our collaborative environment (credit union business models, infrastructure, and non-credit union partners)

Even though this year’s plan is dominated 95% by things already known, there are still long-term goals in everything we do, every day

We learn as we do; we are constantly evolving

Join in the effort to make some big things happen this year for all our owners: CU members

Conclusion