Strategic Opportunties And Implications In Serving Underserved

Question 1

What were credit unions chartered to do?

Answer 1

Provide affordable access to credit

Question 2

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

Answer 2

Serve the underserved

Question 3

Helping underserved populations can be what?

Answer 3

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

Question 4

What percentage of Americans have subprime credit?

Answer 4

55%

Question 5

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

Answer 5

50%

Question 6

What percentage of Americans are living paycheck to paycheck?

Answer 6

75%

Question 7

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

Answer 7

20,000

Question 8

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

Answer 8

33,000

Question 9

Serving underserved markets can be?

Answer 9

Profitable and scalable

Question 10

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

Answer 10

Niche

Question 11

Underserved markets are growing rapidly?

True or False

Answer 11

True

Question 12

What are the three types of new market opportunities?

Answer 12

Lower Income/Credit Challeneged
Hispanic Market
Micro enterprise Small Businesses

Question 13

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

Answer 13

80%

Question 14

Credit challenged is defined with FICO scores less than

Answer 14

640

Question 15

The median age of the Hispanic market is

Answer 15

22

Question 16

Hispanics are more likely to use what?

Answer 16

Social, mobile, online content and resources.

Question 17

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

Answer 17

5

$35,000

Question 18

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

Answer 18

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.

Question 19

What can we do to overcome the bias?

Answer 19

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

Question 20

What are the four strategies for serving underserved markets?

Answer 20

Overcome bias
Risk Mitigation
Financial Education and community outreach
Customized Programs

Question 21

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

Answer 21

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

Question 22

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

Answer 22

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

Question 23

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

Answer 23

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

Question 24

What does LID stand for?

Answer 24

Low income designation

Question 25

What is CDCU?

Answer 25

Community development Credit Union

Question 26

How many credit unions are low income designated?

Answer 26

2,365

Question 27

What is MID?

Answer 27

Minority institution designations

Question 28

What does CDCU stand for?

Answer 28

Community Development Credit Union

Question 29

What does LID stand for?

Answer 29

Low income designation

Question 30

What does LITP stand for?

Answer 30

Low income targeted population

Question 31

What does CDFI stand for?

Answer 31

Community Development Financial Institution

Question 32

What does LMI stand for?

Answer 32

Low to Moderate Income