Strategic Opportunties And Implications In Serving Underserved Flashcards

1
Q

What were credit unions chartered to do?

A

Provide affordable access to credit

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2
Q

CU’s improve the quality of life for individuals and strengthen communities when they??

A

Serve the underserved

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3
Q

Helping underserved populations can be what?

A

Inspiring and rewarding - attracting the best employees, member and community partners

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4
Q

What percentage of Americans have subprime credit?

A

55%

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5
Q

What percent of working adults make less than 30K per year?

A

50%

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6
Q

What percentage of Americans are living paycheck to paycheck?

A

75%

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7
Q

There are more than _______________ payday lending outlets in the US.

A

20,000

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8
Q

There are more than __________ predatory buy here, pay here used car lots

A

33,000

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9
Q

Serving underserved markets can be?

A

Profitable and scalable

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10
Q

What should credit unions find so that they can become #1 or #2, not #10 or #20

A

Niche

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11
Q

Underserved markets are growing rapidly?

True or False

A

True

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12
Q

What are the three types of new market opportunities?

A

Lower Income/Credit Challeneged
Hispanic Market
Micro enterprise Small Businesses

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13
Q

Low to moderate income is definitely as income earners who make ________ of the local statistical market area

A

80%

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14
Q

Credit challenged is defined with FICO scores less than

A

640

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15
Q

The median age of the Hispanic market is

A

22

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16
Q

Hispanics are more likely to use what?

A

Social, mobile, online content and resources.

17
Q

Micro enterprise small businesses have ______ or fewer employees and have capital requirements less than _________.

18
Q

What are the 4 motivational points to starting a micro enterprise?

A

Low wages
Balance home and work
Starting a business is preferable to minimum wage
Self-employment offers the chance to find fulfillment that is rarely possible with their options for low wage labor.

19
Q

What can we do to overcome the bias?

A

Understand why they make the decisions they do and identify and remove barriers.

20
Q

What are the four strategies for serving underserved markets?

A

Overcome bias
Risk Mitigation
Financial Education and community outreach
Customized Programs

21
Q

What are the building blocks for developing a sustainable underserved market strategy?

A

Low income designation (regulatory tools)
CDFI Certification (Access to external resources)
CDCU (Specialized Expertise & Partnerships)

22
Q

What can we do to help our risk-mitigation for serving the underserved?

A

Dig deep, look beyond their credit scores, customized limits and terms, appropriately price for risk, Proactively collect and recover assets.

23
Q

What financial aid is important to implement these programs in our credit unions?

A

CUNA FICEP
Member facing staff, friendly and ongoing and transactional
Online
Outreach & community partners

24
Q

What does LID stand for?

A

Low income designation

25
What is CDCU?
Community development Credit Union
26
How many credit unions are low income designated?
2,365
27
What is MID?
Minority institution designations
28
What does CDCU stand for?
Community Development Credit Union
29
What does LID stand for?
Low income designation
30
What does LITP stand for?
Low income targeted population
31
What does CDFI stand for?
Community Development Financial Institution
32
What does LMI stand for?
Low to Moderate Income