Strategic Opportunties And Implications In Serving Underserved Flashcards
What were credit unions chartered to do?
Provide affordable access to credit
CU’s improve the quality of life for individuals and strengthen communities when they??
Serve the underserved
Helping underserved populations can be what?
Inspiring and rewarding - attracting the best employees, member and community partners
What percentage of Americans have subprime credit?
55%
What percent of working adults make less than 30K per year?
50%
What percentage of Americans are living paycheck to paycheck?
75%
There are more than _______________ payday lending outlets in the US.
20,000
There are more than __________ predatory buy here, pay here used car lots
33,000
Serving underserved markets can be?
Profitable and scalable
What should credit unions find so that they can become #1 or #2, not #10 or #20
Niche
Underserved markets are growing rapidly?
True or False
True
What are the three types of new market opportunities?
Lower Income/Credit Challeneged
Hispanic Market
Micro enterprise Small Businesses
Low to moderate income is definitely as income earners who make ________ of the local statistical market area
80%
Credit challenged is defined with FICO scores less than
640
The median age of the Hispanic market is
22
Hispanics are more likely to use what?
Social, mobile, online content and resources.
Micro enterprise small businesses have ______ or fewer employees and have capital requirements less than _________.
5
$35,000
What are the 4 motivational points to starting a micro enterprise?
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.
What can we do to overcome the bias?
Understand why they make the decisions they do and identify and remove barriers.
What are the four strategies for serving underserved markets?
Overcome bias
Risk Mitigation
Financial Education and community outreach
Customized Programs
What are the building blocks for developing a sustainable underserved market strategy?
Low income designation (regulatory tools)
CDFI Certification (Access to external resources)
CDCU (Specialized Expertise & Partnerships)
What can we do to help our risk-mitigation for serving the underserved?
Dig deep, look beyond their credit scores, customized limits and terms, appropriately price for risk, Proactively collect and recover assets.
What financial aid is important to implement these programs in our credit unions?
CUNA FICEP
Member facing staff, friendly and ongoing and transactional
Online
Outreach & community partners
What does LID stand for?
Low income designation
