ITUP

Credit unions are a path to a better financial future. Filene empowers you to LIGHT IT UP.

Your financial support of Filene serves as a light to a brighter financial future for hardworking people. You push credit unions forward, to light the path for others to follow, and to ensure people in your communities seize opportunities and shine.

Our shared passion and dedication to help consumers find safe and reliable financial solutions is transcendent. Couple that with the polarization of wealth and the incentives for banks to focus on short-term shareholder returns; credit unions are on the cusp of greatness realized. Now is our time.

We face major challenges: Ensuring the right talent is in place, keeping pace with emerging financial technologies, growing new ideas and creating sustainable innovation to meet expanding consumer demands, and having the resources to build organizational excellence to support scaling.

We rise to these challenges, together. That’s why we celebrate you. Your gift allows us to research, test and offer proven solutions that create meaningful impact for your organization and drive positive change for your members. You light the way for a brighter financial future for millions of people.

Shine on,

Mark Meyer President + CEO

DOWNLOAD the DIGITAL VERSION filene.org/annual-report/2017

WHEN WE GET TOGETHER, THINGS HEAT UP. HERE’S HOW:

We are not much into trophies, but The Cooperative Trust was bestowed

the movement’s shiniest honor: The Herb Wegner Award.

THANKS FOR THE HONOR!

Close to 60 of our members invited us to illuminate their strategic

planning process with fresh ideas.

THANKS FOR THE INVITATION!

37 credit unions rigorously tested serving vulnerable populations in the opaque consumer credit markets, and issued

$25 million in consumer friendly loans.

THANKS FOR CHANGING PEOPLE’S LIVES!

You collectively gave close to $8 million to brighten up

the industry’s research and development efforts.

THANKS FOR TRUSTING US (WE WON’T LET YOU DOWN)!

1,005 people representing 340 credit unions and system organizations across North America engaged in

Filene events this past year.

THANKS FOR JOINING US!

Together we developed 52 research reports and outputs with the latest industry insights.

THANKS FOR STAYING CURIOUS!

As a Filene Research Institute member, you join more than 1,000 other passionate

organizations that support the growth and sustainability of cooperative finance.

We just want to thank you for playing with us!

IMPACT OF YOUR DONATION

“Filene has transformed into an organization that doesn’t just think; they help create action that provides bottom line results. From developing

strategy, to growing talent, to engaging members, Filene’s focus is squarely directed in the areas that matter most to our credit union. Their research

is invaluable to us as we strive to improve our organization.

”Chuck Purvis, President/CEO, Coastal Federal Credit Union

RESEARCH

Everything we do is rooted in research. Filene Fellows, our Research Council, and other leading

scholars ask tough questions, challenge the status quo, think differently, look outside,

and collaborate through research to find the truth. Filene’s Centers of Excellence are fully

operational, here is a breakdown of our key contributors:

Center for Consumer Decision MakingUncovering consumer preferences, trends, and behaviors in money management.

Research Fellow: Hope Schau, University of Arizona

Supported by: CUNA Mutual Group

Center for Organizational EntrepreneurshipCooperative strategies for sustained competitive advantage and business model innovation.

Research Fellow: Dennis Campbell, Harvard Business School

Supported by: PSCU, American Airlines Federal Credit Union, BCU

Center for Performance and Operational ExcellenceExploring and excelling in progressive management practices and operational behavior.

Research Fellow: Huggy Rao, Stanford Graduate School of Business

Supported by: Fiserv, Alliant Credit Union, Christian Financial Credit Union

Center for Emerging TechnologyConnecting credit unions with the most impactful technology and consumer trends.

Research Fellow: Richard Swart, University of California, Irvine

Supported by: CO-OP Financial Services, BECU, Coastal Federal Credit Union

Center for War for TalentAttracting, developing, and promoting top performers, from the front line to the board table.

Research Fellow: Sekou Bermiss, University of Texas at Austin

Supported by: Visa

Shining light on the industry’s most pressing issues

IMPACT

We take the best insights, rooted in research and tested in the market, and make them scalable

programs that drive change for credit unions, financial cooperatives, and hard-working people.

Helping credit unions shine

ONBOARDABILITY and YOUNG ADULT ADVISORY SERVICES

2 new impact programs introduced by Filene in fiscal year 2017

QCASH

44,336 loans made possible via the omni-channel lending solution that offers relationship based underwriting (without credit check) to members in search for small, short-term unsecured loans

LARKY

1.3 million credit union members are connected to 1,200 locally- targeted discounts via the web and mobile loyalty platform

SAVVYMONEY

1.25 million credit union members have access to their credit scores and full credit reports for free through their credit unions

VERTEX

16 credit union leaders who are now better equipped to engage and develop their teams via the virtual coaching program

“ We used Live Observational Research to test-market our new online loan and account application. We learned about at least three critical issues that will

improve the flow and member experience of our new application.

”Jan Roche, CEO, State Department Federal Credit Union

DIGITAL STRATEGIES

19 Digital Strategies Engagements

MEMBER JOURNEY

15 credit unions completing member journey sessions that help the institution truly understand and improve the experience of their members across and between access channels

INNOVATION PROGRAMMING

27 Innovation Experiences teaching credit unions Filene’s methodology for innovative thinking

8 full Innovation Groups where credit union organizations work with Filene over the course of 9-12 months to build the long-term infrastructure for innovation

STRATEGY CYCLE

56 strategy sessions facilitated for credit union organizations across North America

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INNOVATIONFrom flashlight to spotlight A light through the cracks

This year fifteen individuals joined over 250 credit union leaders that have been part of

the i3 group since 2004. These creative and passionate people use their inner light to grow

ideas into viable solutions and brighten up people’s financial futures. Fourteen new ideas

were introduced and a handful are making their way into the marketplace.

“I thought that in order to come up with an innovative idea you had to either be a genius, or you were at the mercy of serendipity or spontaneity. I didn’t realize that following a formal, structured process can actually spark innovation!

Which means innovation can indeed come from anyone, anywhere.

”Serese Selanders, VP Member Experience Strategy, Affinity Credit Union & i3 Alum

BANK ON FAMILY is a product that reduces the awkwardness and informality of family or friends lending money to each other. With the credit union as the loan facilitator, borrowers can get credit score recognition for on-time payments while helping build brand loyalty

and positive financial behavior.

Results coming soon.

DEBT DRAGON guides students through relatable, interactive scenarios that show real-time financial implications and alternatives about their college investment options with clear action

items, next steps, and checklists.

14 credit unions are testing Debt Dragon.

INCUBATORA light through the cracks

In the Filene Incubator, credit unions test products that are rooted in our research and vetted

against real consumer needs. Together, we are shining a light through the cracks in our

financial system, and credit unions are lighting a path to a better financial future for those

who have been left in the dark.

REACHING MINORITY HOUSEHOLDS

Thirty-seven credit unions have stepped up to replicate and test solutions aimed at meeting

the needs of households of color and other vulnerable populations in the U.S. and Canada.

With generous support from Visa and the Ford Foundation, Filene is enabling the credit

union industry with innovative programs that can positively impact their organization’s

and community’s bottom line.

One of the five programs being tested, the Non-Citizen Lending Program, is showing

tremendous promise to be scaled and make a significant consumer impact – with over

$22M in loans placed in just fifteen months from thirteen credit unions. However, the

Incubator’s impact cannot be measured by statistics alone.

The true beneficiaries are individuals with hopes, dreams, and aspirations. Their stories

measure true impact. Mariana (pictured below) benefited from Wakota Federal Credit

Union’s participation in the Incubator’s Non-Citizen Lending Program. Mariana’s family was

struggling with an unaffordable auto loan from another financial provider so Wakota FCU’s

loan officer helped them find a payment option that worked within their budget. Mariana

said, “it was just perfect and a huge blessing” for her family.

Igniting a fire Spotlight on Financial Performance: FY ended June 30, 2017

This passionate community of young, credit union professionals continues to promote

collaboration and engagement across the industry. Its programs, including the Crash

program, invite the next generation of leaders to experience industry events and partake

in professional development opportunities, ensuring credit unions are engaging their

staff to win the war for talent.

THE COOPERATIVE TRUST

LIABILITIES & NET ASSETS

Liabilities $1,527,020

Unrestricted $5,665,059

Temporarily Restricted $3,755,816

Total Liabilities & Net Assets $10,947,895

Spotlight on Financial Performance: FY ended June 30, 2017

Our annual report provides an opportunity for us to thank the generous donors whose

financial support makes our work possible, while also highlighting our financial health.

We are fortunate to receive support from diverse revenue sources including membership

contributions, Centers of Excellence Sponsorships, Grants, Outreach & Education services

and Applied Research & Innovation programs. Our program services make up the majority

of Filene expenditure enabling us to continue to deliver on our 501(c)(3) mission and create

greater impact for credit unions, financial cooperatives and ultimately, consumers.

FINANCIAL HIGHLIGHTS

Membership Contributions

Research Sponsorships & Grants

Outreach & Education

Applied Research & Innovation

47%

31%

19%

3%

2017 REVENUE: $7,883,186 2017 EXPENSES: $6,122,449

Program Services

Support Services

Membership Development & Fundraising

80%

12%

8%

ASSETS

Current Assets $9,514,790

Fixed Assets $193,811

Other Assets $1,239,294

Total Assets $10,947,895

It takes dedication to move an industry.

This group of inquisitive, experienced leaders help light up Filene’s mission through volunteer service as our Board of Directors.

Maurice Smith – Chair Local Government Federal Credit Union, President/CEO

Angie Owens – Vice Chair American Airlines Federal Credit Union, President/CEO

Tracie Kenyon – Treasurer Montana Credit Union Network, President/CEO

Jim Nussle – Secretary CUNA & Affiliates, President/CEO

Paul Kundert – Director UW Credit Union, President/CEO

Shruti Miyashiro – Director Orange County’s Credit Union, President/CEO

Jan Roche – Director State Department Federal Credit Union, President/CEO

Bob Trunzo – Director CUNA Mutual Group, President/CEO

Mike Schenk – Advisory Member CUNA & Affiliates, Vice President, Economics and Statistics

Steve Suleski – Advisory Member CUNA Mutual Group, Senior Vice President and Chief Governance Officer

Sponsors

Chair of Excellence ($400,000–$1M over 4 years)

Members

Benefactor Gold ($50,000+)

Benefactor Silver ($25,000)

Benefactor Bronze (Non-Credit Union, $10,000)

Grantors

As a not-for-profit 501(c)(3) organization, Filene Research Institute relies on contributors to fuel our work.

With this support, we are able to advance the boundaries of possibility through research, innovative

ideas, and collective action. It’s the passion and insights of our supporters that encourage us to think

more boldly about the future. Thank you to all of those who joined us on this journey last year.

* CONTRIBUTION ALIGNED WITH A CENTER OF EXCELLENCE

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Charter Founding Chairman’s Roundtable ($250,000 over 3 or 4 years)

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THANK YOU! You light up our world.

Benefactor Bronze ($10,000)

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WE WOULD ALSO LIKE TO TAKE THIS OPPORTUNITY TO RECOGNIZE LEADER’S CIRCLE AND INDIVIDUAL ASSOCIATE MEMBERS FOR THEIR CONTINUED SUPPORT.

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