2013 Business Plan Visionaries, Challengers, & Game Changers EARNING A REPUTATION FOR BUSINESS DEVELOPMENT EXPERTISE August 2012

2013 Business Plan

Visionaries, Challengers, & Game ChangersEARNING A REPUTATION FOR BUSINESS DEVELOPMENT EXPERTISE

August 2012

2

Visionaries, Challengers & Game Changers

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

3

Building Business Development Expertise

Business Development (according to Wikipedia): “Comprises a number of tasks and processes generally

aiming at developing and implementing growth opportunities.”

We’ve planted our flag on the idea that we use our products and services to build businesses...

We’re a network that can generate growth opportunities

So in 2013, we’re focusing more than ever on business development as a route to earn us the reputation as Visionaries, Challengers & Game Changers

Will your team be the first to lay claim to one of these

monikers?

An Ongoing Foundation For How We Plan, Every Year

Reviewing Our Approach

5

(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)

6

(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

7

(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.

Projects and Efforts That Focus Us as Visionaries

Projects and Efforts That Focus Us as Challengers

Projects and Efforts That Focus Us as Game Changers

Where We’ll Focus in 2013

9


Back to Wikipedia again: Visionaries: “Prophets, Thinkers, Futurists, Dreamers”

Not hocus pocus...think “thought leaders” and “thought leadership”

An organization becomes what it studies...to be successful, an organization needs to study opportunities with more zest than problems

Technical teams are great at studying and earning certifications for their careers...can we find a new way to study together as an organization to yield new results for our business development goals?

10


Taking Our Business Plan Viral

We have some projects for helping our clients take their business plans “viral” to their members and community

What about our own business plan? Shared with cuasterisk.com partners Posted on Portal for employees What about www.cuanswers.com?

I’ll be soliciting “20 Commentators” to read and commend on our Plan (non-Board credit union CEOs, industry stakeholders)

Let’s see if we can encourage others to become visionaries, challengers, and

game changers

http://www.cuanswers.com/

11



Check out a new segment on score.cuanswers.com

12




13




14


Rethinking CU*BASE trademarks and marketing to inspire new efforts within our network

CU*BASE “Editions” GOLD Servicer Edition (SE) Cloud (or, more likely, “Evolution”) Operations ...and what about smaller “modules” like

groups of menus (ERM) or other segments?

15


Challenging the way our teams have grown

Department 10/1/2008 10/1/2009

Change in # of Employees

2009 10/1/2010


2010 10/1/2011


2011

Projected 9/30/2012 from

the Midyear budget

Projected Change in # of

Employees 2012

Projected 9/30/2013 from

the Annual budget

Budgeted Change in # of

Employees 2013

Anticipated Change in # of

Employees over 5 years

5 Year Growth %

Administration/Facilities 5 6 1 6 0 6 0 7 1 7 0 2 40.0%Adminsitration: Xtend 1 1 0 1 0 1 0 1 0 1 0 0 0.0%Client Services 13 14 1 14 0 15 1 16 1 16 0 3 23.1%Conversions 4 5 1 4 (1) 4 0 4 0 4 0 0 0.0%CU*Answers Management Services 11 15 4 20 5 28 8 31 3 32 1 21 190.9%CU*Answers Network Services 15 17 2 20 3 27 7 31 4 33 2 18 120.0%Finance 5 6 1 7 1 8 1 9 1 9 0 4 80.0%Item Processing 14 6 (8) 6 0 6 0 5 (1) 5 0 (9) -64.3%Operations 9 9 0 10 1 11 1 12 1 11 (1) 2 22.2%Organizational Resource Development 3 3 0 5 2 5 0 5 0 5 0 2 66.7%PR and Marketing 1 2 1 1 (1) 1 0 1 0 1 0 0 0.0%Programming 19 21 2 27 6 33 6 35 2 38 3 19 100.0%Quality Control 4 5 1 4 (1) 6 2 8 2 8 0 4 100.0%Sales 4 5 1 5 0 4 (1) 5 1 5 0 1 25.0%Technical Resources 1 1 0 1 0 1 0 1 0 1 0 0 0.0%Writing Team 3 3 0 3 0 4 1 4 0 5 1 2 66.7%CU*Answers Total 112 119 7 134 15 160 26 175 15 181 6 69 61.6%

0Leased Employees: Xtend 12 12 0 12 0 15 3 19 4 19 0 7 58.3%Leased Employees: Xtension 4 3 (1) 3 0 4 1 8 4 8 0 4 100.0%Xtend Leased Total 16 15 (1) 15 0 19 4 27 8 27 0 11 68.8%

0Leased Employees: eDoc 3 1 (2) 0 (1) 0 0 0 0 0 0 (3) -100.0%eDOC Leased Total 3 1 (2) 0 (1) 0 0 0 0 0 0 (3) -100.0%

0Grand Total 131 135 4 149 14 179 30 202 23 208 6 77 58.8%

Things to consider:* the table above does not include any of the part time staff that works directly for Xtend (they currently have approximately 10 and they share cubes)* as of 7/31/12 we had a total of 194 employees on payroll

Current Location Spread (7/31/2012):* 2 employees currently housed at Muskegon* 26 employees currently housed at 44th Street* 166 employees currently (projected to be 174 as of 9/30/2012 ) housed at 28th Street* 8 contractors, not included in the Employee count above, are housed as of 8/1/2012 (1 at 44th, 7 at 28th)

CU*Answers5 Year Growth

10/1/2008 through 9/30/2013

16


Challenging the way we earn our money from growth Avoid incremental and momentum based thinking Avoid investment without harvesting Avoid compensating business developers to the point

where their goals control the growth more than the goals of the organization

Working with CMS to review the 3 areas where business grow: Growth from new CU*BASE GOLD sales – their role and

how they earn Growth from existing CU*BASE GOLD clients – how they

turn support into new annual revenues Growth from new markets and taking their brand outside

the network – can we move from moonlighting to more traditional business development and investment?

17


Challenging our pricing and competitive practices Marketing concessions are signaling a shift in how we

sell CU*BASE GOLD

Challenging our industry’s status quo: building challengers among our clients and partners Cooperative Score (part 1) – the Cooperative Score Self

Assessment Viral Business Plan – Add “Read our business plan” link to

It’s Me 247 Use “Vote Now” to get real results from surveys What else?

18

Projects and Efforts That Focus Us as Game Changers

A reputation that our network, our firm, and our team members need in order to

be successful

“Why should I invite

CU*Answers to be part of my agenda?”

“Because we’re game changers. We may be the

missing ingredient that will help you

succeed.”

19

Projects and Efforts That Focus Us as Game Changers What will it take for CU*Answers to build a

network with the reputation of being game changers? Is this a marketing problem? Is this an opportunity issue? Can we find areas where

we can make a real difference and be known for this? Is this an issue of influence? Can we really influence

our industry, our clients, and our partners to merit the reputation as game changers?

20

Projects and Efforts That Focus Us as Game ChangersIs this a marketing problem? Build brands and raise the awareness ... tell

the marketplace we believe we are game changers

Evolve our website persona and leverage content in a new way

Is this an opportunity issue? Create opportunity to be seen as game changers:

get into the right rooms Chip’s challenge: “What expertise does your team have

that can get you to national events? What outlets do you have? What capabilities do you have?”

21

Projects and Efforts That Focus Us as Game ChangersIs this an influence issue? Become a reference as an organization where e-

document strategies have made a difference Influencing through investing in other firms

and their initiatives, partnered with ours Influencing the outcome of projects through

participating in industry initiatives

It’s a delicate balance tactically to want to be invited and then, once there, to do

the right thing

22

Projects and Efforts That Focus Us as Game Changers Building game changers among our

clients and partners A “Grand Opening State of Mind”

Tweak our processes (Product Team) Develop marketing and sales support services focused

on re-launches (CIMT/Xtend) Rethink the Peer Analysis/Learn From a Peer Develop marketing and sales support for launching directly

to credit union members (GOK) Cooperative Score (part 2) – showing that customer-

owner participation can be a game changer for a cooperative.

CUSO Financial Services, Inc. (CFS) Changing the game for our

cuasterisk.com partners

Every year our clients, the marketplace, and our teams anticipate the next step in our day-to-day evolutionHere’s where we will focus in 2013...

Delivering on Our Promises

24

Improving Our Solutions (What We Sell)

Improving Our Competitive Position Accounting Top 10

Not taking a quiet audience for granted Improving our reference with CFOs, accountants and

bookkeepers The next step in what we learn from Xtend SRS

Lender*VP Top 10 Continuing to deliver on the promises made to stick with

lending until we get it right and until our credit unions are maximizing our toolkit and network potential

File Expansion Project (FEP) and Improved Next Generation (ING) Laying the foundation for the inevitable Gaining the confidence of your clients that you can execute

change

25


Improving Our Competitive Position Establishing Mobile App Integrations and Support

It’s the craze...the whole world is moving to mobile! What are we doing? Answering our clients’ challenge not to

be left behind Balancing the need to study where all this is going against

the investment into proofs of concept ...and don’t forget

Teller Platform – delivering on the Currently Serving foundation

Aggregation – building a stronger relationship with MoneyDesktop

CU*BASE GOLD Look and Feel (ING) – will deliver on 2012 goals

EFT – anyone remember what a C2B2B model means?

26


Where We’re In the Lead It’s Me 247 Nav-01: Launching January 2013!

Using pretty pictures to keep our audience engaged, while changing the foundation to ensure this product can evolve dozens of new capabilities

Tiered Services next phase Getting credit unions to see Tiered Services as more than

just a relationship management tool Still valuing it for its unique ability to automate relationship

management all the way to the point of sale Analytics: Actionable Analytical Approach (AAA)

It could take a couple of years of a grand opening mindset to really make a difference with credit unions, beyond the initial wow factor

...and don’t forget Compliance tools Online and mobile

27


Our Clients Under Pressure Responding to credit union investments in ancillary

products that require core integration Helping new and larger clients who have made an

investment in third-party products

(Verifin, Meridian Link, Marquis, SageWorks, etc.) Avoiding the trap of relying in integration revenues: we’ll do

these as investments in learning, more than a way to earn a quick buck

28

Improving Our Business (Supporting What We Sell)

DR/BR: Capitalizing on a New Mindset Release Management and the Speed to Market

Paying for beta-test Paying for product certifications

Building Processes for Across-the-board Reinvestment RFPs (i3 & AnswerBook, no change; online education

moving to CU Training 11/30/12) F&E procedure Meet & greets for new employees, Sales Planning

meeting, cuasterisk.com administrating meeting

29

Improving the Collaborative Environment (CU Business Models, Infrastructure, and Non-CU Partners) Driving cuasterisk.com CU*Answers Connected to the World

Lender*Hub SSO connections

Connecting Networks for CU Income Opportunities CFS, Ross Blair, denied loan exchange?

CU*BASE SE (the CU*BASE Servicer Edition)

“What are your expectations when you publish a business plan?”I don’t mean what’s in it, I mean what do you hope to accomplish by publishing it?

If we take this thing viral, what does that mean to our future, our opportunities and our success?

Conclusion

Documents

2013 Business Plan Visionaries, Challengers, & Game Changers EARNING A REPUTATION FOR BUSINESS DEVELOPMENT EXPERTISE August 2012