GROWING MEMBER
RELATIONSHIPS &
ASSETS
A Comprehensive Program of Financial
Planning and Investments for your Network
Remember This?
Later we will explore some CUSO
investments
Agenda
• What investment services can mean to your CU
• Who is CFS?
• What programs are available?
• Leveraging CU*BASE
• What it takes to get started
Key’s to success
Awareness is…
…ownership of member and CU
staff “mind share”
CU members and staff must understand what
investment services are offered and why.
Integration is…
…the degree to which the
investment program is embraced
by CU members and staff
View the program as a “core offering” rather than an
ancillary service.
Integration is also…
…a portal that includes all of the
member financial relationships
…a marketing engine that helps you
stay “top of mind” with members
Credibility is…
…member and staff confidence
in CU’s competent delivery of
investment services.
CU must continually demonstrate and develop the
credibility of the program and representatives.
Before We Too Far Along…A Quick
Review of Industry Terms
GDC - Gross Dealer Concession
AUM - Assets Under Management
OSJ - Office of Supervisory Jurisdiction
NII - Non-Interest Income
So why is NOW the right time to
launch an investment program?
Key Metric: Assets Under Management
• Some thoughts on ROI
and off-balance-sheet
income opportunities
An Investment Program is a Service that
offers a chance for significant growth
• How significant?...Think about your own situation
• What % of your personal assets are in insured deposits
vs. securities and insurance products? (mutual funds,
stocks, bonds, etc.)
• The average individual has 5 to 10 times as much of
their personal assets are in the market vs. insured
deposit assets (money markets, share accounts, CDs,
etc.)
Average 7.5 times
Wallet Share CUs Have
Investments
Certificates of Deposit
Loans
Savings & Checking
Wallet Share of Members Who Invest
Investments
Certificates of Deposit
Loans
Checking
Savings
Where Revenue comes from
Invested $ Generates GDC
1–6%
Average 3.5 %
What is this #?????
$ 28,571,428.57
Invested amount by members
$ 28,571,428.57
=
$1,000,000 GDC
And 80% of this is NEW
money from your members
INTRODUCING CUSO
FINANCIAL SERVICES, LP
What the Nation’s Leading Investment
Services CUSO Can Mean to your Business
Plan
CFS-Who we are
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Founded in 1996
Credit Union Owned
Serving over 145 Credit Unions Nationwide
Serving over 35 Banks through common back office with
Sorrento Pacific Financial (SPF)
Serving 3 Registered BD’s (Secondary Clearing Agreements)
Experienced back office (4:1 ratio RR/EE)
Financial Strength
Best of Breed Program Performance
 Focused Strategies for Retirement Planning and Retirement
Income Solutions
 Efficient Integrated Technology Solutions
 No Proprietary Products
 Clean Compliance Record
About Us

Co-Founders

Valorie Seyfert, President and CEO
 25+ years experience in the securities industry
 Recognized expert in regulatory compliance,
corporate law and developing investment services
programs for credit unions
 Member of the California Bar Association
 Amy Beattie, Chief Operating Officer
 30+ years experience in operations and
management of banking and independent broker
dealers
 Expert in clearing firm services; trading and
registration
 Guiding hand of CFS' leading edge technology
systems
About Us
Senior Management Team
We are proud of our top notch, cohesive management team,
each with 20+ years of experience in their field.
 Valorie Seyfert, President/CEO
 Amy Beattie, COO
 Peter Vonk, EVP, Chief Compliance Officer
 Kevin Mummau, EVP, Program Development
 Dan Kilroy, EVP, CFO
 Rick Dahl, EVP, CCO/SPF
 Bob Spadafora, EVP Business Development/SPF
 Cindy Zabuska, Sr VP, Operations
 Steve Hollenbeck, Sr VP, Marketing
 Mitzi McMillin, Sr VP, Business Systems
 Mary Ahearn, Sr VP, Retirement Services
 Janine Holmes, VP, Human Resources
 Monica Daggs, VP, Compliance
 Yubie Asghedom, VP, Controller, Accounting
 Nick Contristan, VP, Transitions/Supervision
CFS financial strength
 Consistent Revenue Growth and Stability
 10-Year Track Record of Profitability
 9-Year Track Record of Profit Sharing
Distributions
 More than $25 million in Total
Partnership Distributions Made to CU
Owners
 Industry Leading Metrics (2011)
 CFS 2011: $100 million+ GDC
 SPF 2011: $10 million+ GDC
 Program Performance
 54 Programs had Best Year Ever
 Top Quartile: $1.6 million
 All Programs: $587,000
 Rep Performance
 142 Reps had Best Year Ever
 Top Quartile: $642,000
 All Reps: $329,000
State of our clearing firm
STRENGTH AND STABILITY
*As of December 31, 2010
**As of February 28, 2011
Strategic differentiators

CFS Roadmap and Vision:
 Collaboration and Networking
 Focus on Financial Institution Programs
 Help Grow Your Investment Program
 Deliver Solutions that Attract More Members and More of their Assets
 Improve Advisor Efficiency and Effectiveness
 Maintain SINGLE PLATFORM SOLUTION
 Enhance Value and Convenience for Members through automation and Integration
 Provide Program Management Support and Resources to Assure Consistent Growth and Expansion
We Have Different Program Types
Tailored to Your Business Plan and
Designed to Attract More Members
and More Assets
What Programs are Available Today?
• Full Service Brokerage
 1-on-1 credit union relationship
-
CFS hires and manages brokers
-
Dual employee
 Broker shared by multiple CUs
• Self-Service Brokerage (more later)
Self Service Programs
• It’s Me 247 Investment
 Available to all credit unions
 Included with all Managed/Shared
programs
®
Evision online
discount trading
Leveraging your investment in
CU*BASE tools
CU*Answers is investing
• New functionality already being
used by 3 CU*BASE CUs
• Implementation fees are being
waved to inspire off-balancesheet strategies
• Awareness driven at the
November CEO Strategies
Session
Introducing a New Brand
Leveraging It’s Me 247 as a PFM Portal
It starts with OBC
OBC
Investment
Content
Leveraging Your CU*BASE Tools:
It’s Me 247 as Member PFM
PFM
equals
PFI
Leveraging Your CU*BASE Tools:
It’s Me 247 as Member PFM
SSO from
It’s Me 247
SSO Access to their investment world
Member-facing, web-based account aggregation
Available through a link or SSO from one Banking
High level summary of brokerage, direct, advisory and
insurance accounts through CFS
Customized to match CU Home Banking site
Includes easy reporting for Member to use/download
5 Year Track Record with All Major CU Home Banking
Vendors
Detailed historical and cost basis information (history is
retained for the life of account with CFS)
Quick to market
Customer brokerage statements, confirms and tax
documents
Phase 2: Investment Planning with a
single click from It’s Me 247
BUILDING Awareness of your Offerings…It’s all
about tools, timing and execution
• Life Stage Marketing Campaigns
• Detailed Demographic Breakdown
Tax Season/Retirement Planning
Consolidate Accounts/Rollovers
Income in Retirement
Wealth Transfer
Leveraging Your CU*BASE Tools:
Member Connect (or Member Reach)
• Text, Short Message, and Social Media Marketing
• eVISION®
• B-Day
• Turning 50
• Turning 62
• Tax Season/Retirement Planning
• Consolidate Accounts/Rollovers
• Income in Retirement
• Wealth Transfer
Pick a Channel - We’ve got your back
• Member Connect and
E-Info messages
funded by CFS
• Co-marketing dollars
for outbound call
campaigns
• Banners, flyers, lobby
posters, etc.
Sample Member Reach Messages
• eVISION®
“Take control of your future and make your
own investment decisions with eVISION®
online trading. Log into your It’s Me 247
account to get free quotes, breaking news,
charts, analysis, screening and more.
Investments
available
through
CUSO
Financial Services, LP.”
• Age 50
“Happy Birthday. One positive thing about
turning 50 is you’re now eligible to contribute
an extra $1,000 to your IRA. Click on
http://www.xyzcu.com/brokerage for more
information on ways to sock extra cash away
for retirement! Investments available through
CUSO Financial Services, LP.”
• Happy Birthday
“Happy Birthday. Give yourself a gift you’ll
never regret – Financial Independence.
Click on http://www.xyzcu.com/brokerage to
start investing in your future today.
Investments available through CUSO
Financial Services, LP.”
What Programs are Coming?
• Shared Remote Broker
• Additional CUSO investments
FMC
Dashboards
Etc.
What does it take to get started?
1.
2.
3.
4.
5.
Deposits
Broker
Technology
Marketing
Partners
Vic Pantea (victorj.pantea@yahoo.com)
David Lawrence (dlawrence@cusonet.com)
Geoff Johnson (gjohnson@cuanswers.com)
Scott Collins (scollins@xtendcu.com)
Thank you!
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