Ladies and gentlemen…we have ourselves a winner! After a tough two week experience which includes reviewing each prototype submission and a phone call with each finalist, the judges have selected The Collider winner:
The Credit Union Home Buyer’s Plan is a tool. From the member’s perspective, it’s a tool that will help member’s save for their down payment to purchase their first home. In a time where there are very few incentives for saving, the Credit Union Home Buyers Plan may be quite attractive.
From the Credit Union’s perspective, it’s a tool that will help grow a credit union’s deposit portfolio and/or non-interest-revenue portfolio; depending on if the underlying assets are guaranteed (like a Guaranteed Investment Certificate or Savings Account) or non-guaranteed (like a mutual fund, which would generate fee or trailer based income).
Some of the elements within this program are:
- Allows consumers to select investment options for their savings (as well as the matched portion from the credit union)
- Requires consumers to use the savings (and matched portion) strictly for purchasing a home (and revoking funds that are not)
- Requires in-branch deposits to ensure conversations take place with a financial advisor
While our Collider participants sought to find a solution to our challenge, our judges were not only interested in seeing new, fresh ideas brought to the table, but equally important was outside feedback from the field. Robert proved his innovative idea would work by showing:
How it was different from what’s around:
How it could motivate members:
How it could increase lending portfolios:
Now that Robert was convinced this idea could work, he moved forward with settling on some of the logistical to-dos.
What would marketing pieces look like?
What should be included in the banking system?
Ideally, it would be great if information regarding the applicant’s post-secondary schooling appeared on their personal member screen. The power in this program is that it must be set up and administered in-branch; that is, at least once a year, a credit union could guarantee that they would get their trained financial professionals to sit down with these member’s and have a meaningful conversation about budgeting, saving and creating a customized financial plan. This may seem like a minor detail, but I would suggest that this is the most crucial aspect of the program.
What would an internal form look like for the member?
Outside of the typical information requested, slight modifications would be put into place to also request details on the member’s secondary education as well as housing-related budgets. Obtaining this info would assist the Financial Advisor, assigned to the member, to make recommendations on their specific saving plan.
After the judges had reviewed everything Robert had put together for his prototype, they commented, saying:
The next time I have a problem, I’m calling you….you did a great job of articulating the problem. (Denise)
It seems like what you’re proposing is a true partnership between lender and borrower in which both are trying to help each other meet their goals. (Matt)
Field work is key in this stage and you did a commendable job getting these data. (George)
You do a good job of identifying the problem and potential solution from a member perspective.(Bob)
You did a great job bringing your concept to life. I have liked this product since your original introduction and think this could be great for potential home buyers and a really great way to differentiate credit unions. (Patty)
The Big (Bright) Prize
Robert will bring his idea to the big.bright.minds stage, a gathering of some of credit union land’s top thinkers, held this year in Kansas City, Missouri. In addition, Filene will equip Robert with a dedicated implementation team to launch his idea into the marketplace.
Are you interested in being among the first to bring the Credit Union Home Buyer’s Plan – or any of the other prototypes – to your credit union? Let us know by clicking here and filling out contact form.
Way to go, Robert!
And thanks again to everyone who participated, especially to the other finalists: Bill Clancy, Amanda Thomas, Matt Vance, Sean Capaloff-Jones, and Lisa Brown.
Stay tuned for updates on Rob and the team’s progress!