MEMBER IMPACT REPORT - Filene Research Institute · Each area of expertise is led by academics at the top of their field . and guided by Filene’s Research Council, a group of credit

MEMBER IMPACT REPORTF I S C A L Y E A R 2 0 1 8

F I L E N E R E S E A R C H I N S T I T U T E

For nearly 30 years, Filene and our community of supporters have helped credit unions like yours think forward by turning questions into research, research into ideas and ideas into action.

Filene members tear our research and innovation right off the page and put it into action in their communities to effect real and lasting change for the people they serve.

Your membership empowers your entire staff to think bigger, stay relevant and be prepared for what’s next. We research and test the business topics that matter most to growing, innovative organizations — talent acquisition and retention, consumer thinking and marketing, business strategy and operational efficiency, emerging technology and business entrepreneurship. You get the information and innovation you need today for long-term sustainable growth.

That includes research backed by experts from renowned universities across the country. Incubation that delivers real-world testing. Events and communities to connect you with the big idea people from inside and outside credit unions. Advisory services that bring end-to-end innovation.

We have ambitious plans for Filene in 2019 we can’t wait to share. We will be enhancing our value to our members. We will be working with you to incubate new products that drive your business forward and deliver value to your members. We will push the line on a new research program that can be applied to your business. More to come.

Cheers + Best,

Mark MeyerPresident + CEO

What’s in a number? Big value when you look at your Filene benefits over the past year.

22 new research reports in easy-to-digest formats for each member of your team.

40 credit unions tested brand new products designed to serve diverse consumer segments resulting in 58,482 new loans totaling $84.8 million.

78 young credit union professionals participated in Crash the GAC, one of our 14 “Crash” events, enabling them to network with thousands of industry leaders.

123 credit unions turned to Filene’s advisory services to help them spark innovation, strengthen business strategies and grow operations.

18,559 consumers gained access to affordable and quality financial services through the Reaching Minority Households Incubator.

100,000 visits and counting to our new easy-to-search website designed to maximize access to our research and innovation.

YO U R I N V E S T M E N T B R I N G S P O W E R F U L B E N E F I T S !

“Filene has credibility. When I get a recommendation from Filene or go to a Filene event, I know I’m getting solidly-researched data and not just a sales pitch. Working with Filene also offers an opportunity to partner with a group that not only truly believes in the advancement of the credit union movement, but that goes about it in a way that a lot of other organizations can’t — with true innovation and research.”

TERESA FREEBORN, PRESIDENT/CEO,

XCEED FINANCIAL FEDERAL CREDIT UNION

Research you can rip right off the page…

Filene’s research and outputs are focused on the key issues facing credit unions today — business strategy and development, marketing, talent attraction, consumer thinking, and technology. Your membership is an investment in making your team smarter, more innovative and ready for the future.

Each area of expertise is led by academics at the top of their field and guided by Filene’s Research Council, a group of credit union leaders passionate about transforming cooperative finance. This is the foundation of our Centers of Excellence.

CENTER FOR ORGANIZATIONAL ENTREPRENEURSHIP

Filene Fellow Dennis Campbell dove into research on the power and practice of open-book management for credit unions in the first-ever three-part series on this topic for the industry.

CENTER FOR CONSUMER DECISION MAKING

“Generational Money Chatter,” by Filene Fellow Hope Schau, analyzes the language used by different generations when they talk about finances. This research helps credit unions better tailor their messaging and programming to different age groups.

CENTER FOR PERFORMANCE AND OPERATIONAL EXCELLENCE

Supported by more than 30 years of credit union data, the report “Factors Contributing to Credit Union Asset Growth, 1979–2016,” by Luis Dopico, identifies the key factors correlated with asset growth for credit unions.

CENTER FOR EMERGING TECHNOLOGY

The Center for Emerging Technology’s report, “Credit Union Regtech: Innovation and Expertise,” by Chandra Middleton, opens the door to new trends in developing technologies to show how credit unions can use technology to stay compliant.

CENTER FOR WAR FOR TALENT

“Diving Headfirst into the (Applicant) Pool: How Employee Attraction Impacts Employee Retention,” by Filene Fellow Sekou Bermiss, surprises us with small tweaks that can be made in credit unions’ recruitment processes to influence attraction, recruitment and retention of top talent.

“Filene is all about first-rate thought leadership but it’s more than just that. It’s the fellows, the research faculty from the Centers of Excellence, the quality of the people that Filene can plug into. It’s world-class thought leadership like you’d get at Davos or TED Talk.”

JASON OSTERHAGE, SVP/LENDING, ALLIANT CREDIT UNION

Innovation you can put into action…

It’s more than just ideas. Filene’s innovative programs and pilots are rooted in research, based on real consumer need, and tested in the market for viability and scalability to help you grow your organization and change your members’ financial lives for the better!

“Sometimes we are so closely tied to our processes that we miss the pain points that are real and could be preventing us from truly creating member impact. The Filene method-ology for innovation helped us to activate our ability to see the world through the eyes of our members.”

ERIC BUGGER, CHIEF LENDING OFFICER,

WRIGHT-PATT CREDIT UNION, INC.

INNOVATION PROGRAMMING

Through 15 innovation programs, more than 400 innovators dedicated their time and teams to remove the friction impacting their day-to-day work and their long-term success.

INCUBATION

Nearly 60,000 loans were issued to more than 18,000 underbanked households through Filene Incubator programs. Teaming up with Visa and the Ford Foundation, the Reaching Minority Households Incubator tested new financial products and services with more than 40 credit unions across the U.S. and Canada designed specifically for minority households’ needs, resulting in $84+ million in loans issued.

“The ITIN Lending program has had a huge impact on the members that are coming in to us. One example is a member who needed transportation, bought a car for $6,000 from a friend and the engine blew the next week. He came to us and we were able to show him how and where to buy a safe, reliable car at a price he could afford at 2.99% interest—he had A credit but had not bought from a dealer before because of the interest rates he was given. He is now our biggest advocate and is sending everyone he knows to us.”

KATHY CHARTIER, PRESIDENT/CEO,

MEMBERS CREDIT UNION

EVENTS

So much more than just hosting conferences, Filene brings the best and brightest minds together to dive deep into issues vital to the future of cooperative finance through five research events, our annual big.bright.minds. event and a host of other learning opportunities. These events encompass the heart of what we do — bringing together the best minds to connect ideas with truth and cooperation.

“As a seasoned HR professional, it can become easy to use intuition and experience to inform solutions to people and business problems. Filene’s Research in Action event helped me step back and question if the assumptions I was using to make decisions really made sense. Learning how to do more than roll out pilot groups to test and learn—but ensuring that I am solving the right problems with proven scientific solutions—will help improve my desired outcomes.”

CHARY KROUT, SVP, HUMAN RESOURCES,

FIRST TECHNOLOGY FEDERAL CREDIT UNION

Events and communities to build your connections…

i3

Filene i3 (Ideas, Innovation, Implementation) is a program with a legacy of fostering the development of new ideas and innovations for credit unions. Tasked with solving issues credit union members face today, participants leverage Filene’s research and develop solutions that address the trends of tomorrow.

COOPERATIVE TRUST

An award-winning international community, the Cooperative Trust connects more than 1,600 credit union young professionals through a passionate online community, the acclaimed “Crash” program and mentorship opportunities. Filene engages the next generation of leaders to experience the credit union industry and help you develop your credit union’s next leaders.

“Filene i3 is an opportunity for me to share and discover ideas with some of the most unique and ardent innovators in the industry while harnessing those ideas and pioneering change for credit unions and members around the world.”

BRAD HICKEY, MANAGER,

APPLICATION DEVELOPMENT,

AMERICAN AIRLINES

FEDERAL CREDIT UNION

“I know that the future of our industry is in the best capable hands with these individuals as our up and coming leaders. To know that our philosophy of people helping people isn’t just a catchphrase to make ourselves look better, and in-stead, to understand that this is the root of our very being.”

TIFFANY MAHAN, 2018 “CRASH THE GAC” CRASHER,

WHITEFISH CREDIT UNION

F I N A N C I A L H I G H L I G H T S : Y E A R E N D E D J U N E 3 0 , 2 0 1 8

Fiscal Year 2018 was a year of planned investment for Filene as we moved into a new facility to accommodate our growth (now and into the future), invested in talent and enhanced technology so our Fileners can better deliver value to our stakeholders. We continue to maintain a healthy diversification of revenue as well as focused spend on program services specific to our 501(c)3 mission.

ASSETS

Current Assets $8,757,490Fixed Assets $987,299Other Assets $724,956

Total Assets $10,469,745

LIABILITIES & NET ASSETS

Liabilities $1,558,980Unrestricted Net Assets $5,603,197Temporarily Restricted Net Assets $3,307,568Total Liabilities & Net Assets

$10,469,745

EXPENSES

Program Services $6,072,901 79%Support Services $819,260 11%Membership Development & Fundraising

$787,578 10%

Total $7,679,739 100%

SUPPORT & REVENUE

Membership Contributions 3,603,186 50%Research Sponsorships & Grants

1,769,459 25%

Outreach & Education 1,524,944 21%Applied Research & Innovation

239,109 3%

Other Income 32,931 0%Total Support & Revenue* $7,169,629 100%

FY 2018 REVENUE: $7,169,629

FY 2018 EXPENSES: $7,679,739

OTHER INCOME

APPLIED RESEARCH & INNOVATION

OUTREACH & EDUCATION

RESEARCH SPONSORSHIPS & GRANTS

MEMBERSHIP CONTRIBUTIONS

MEMBERSHIP DEVELOPMENT & FUNDRAISING

SUPPORT SERVICES

PROGRAM SERVICES

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

Jan Roche – Vice Chair President/CEO State Department Federal Credit Union

Tracie Kenyon – Treasurer President/CEO Montana’s Credit Unions

Jim Nussle President/CEO Credit Union National Association

Shruti Miyashiro President/CEO Orange County’s Credit Union

Maurice Smith CEO Local Government Federal Credit Union

Bob Trunzo President/CEO CUNA Mutual Group

Mike Schenk – Secretary Deputy Chief Advocacy Officer for Policy Analysis & Chief Economist CUNA & Affiliates

Eric Dillon CEO Conexus Credit Union

Paul Kundert President/CEO University of Wisconsin Credit Union

Keith Sultemeier President/CEO Kinecta Federal Credit Union

B OA R D O F D I R E C TO R S – F Y 1 8

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

* CONTRIBUTION ALIGNED WITH A CENTER OF EXCELLENCE

CHAIRMAN’S ROUNDTABLE ($250,000 OVER 3 OR 4 YEARS)

**

T H A N K YO U !

CHARTER FOUNDING *

*

CMYK

24 75 56 7

20 96 72 9

13 98 72 2

9 100 71 1

8 92 64 1

7 84 56 0

6 34 24 0

64 55 53 63

White27 95 7422

BENEFACTOR BRONZE ($10,000)

121 Financial Credit Union

Advantis Credit Union

Affinity Federal Credit Union

Affinity Plus Federal Credit Union

Altra Federal Credit Union

America’s First Federal Credit Union

American Heritage Federal Credit

Union

AmeriCU Credit Union

Anheuser-Busch Employees’ Credit

Union

Arizona Federal Credit Union

Associated Credit Union

Austin Telco Federal Credit Union

BayPort Credit Union

Bellco Credit Union

Bellwether Community Credit Union

BlueShore Financial

California & Nevada Credit Union

League

Carolinas Credit Union League

Centra Credit Union

Central Florida Educators Federal

Credit Union

Chevron Federal Credit Union

Citadel Federal Credit Union

CoastHills Credit Union

Collins Community Credit Union

Columbia Community Credit Union

Community Choice Credit Union

Community First Credit Union

Community First Credit Union of

Florida

Conexus Credit Union

Connexus Credit Union

Cooperative Credit Union Association

Cornerstone Credit Union League

CoVantage Credit Union

Credit Union Association of New

York Inc

Credit Union of Colorado

Credit Union One

CUES

CULIANCE

Dow Chemical Employees’ Credit

Union

Dupaco Community Credit Union

DuPont Community Credit Union

Eastman Credit Union

Educational Employees Credit Union

Educators Credit Union

Elevations Credit Union

ELGA Credit Union

Empower Federal Credit Union

Farmers Insurance Group Federal

Credit Union

Financial Center Credit Union

Financial Partners Credit Union

Finivation Software

Firefighters First Credit Union

Firefly Credit Union

First Community Credit Union

First Community Credit Union

First Entertainment Credit Union

FirstLight Federal Credit Union

Firstmark Credit Union

Fort Knox Federal Credit Union

FORUM Credit Union

Founders Federal Credit Union

Fox Communities Credit Union

GECU

Genisys Credit Union

Georgia Credit Union League

(Affiliates)

Georgia United Credit Union

Georgia’s Own Credit Union

Greylock Federal Credit Union

Grow Financial Federal Credit Union

HAPO Community Credit Union

Harborstone Credit Union

Hawaii Credit Union League

Hawaii State Federal Credit Union

Heartland Credit Union Association

Hiway Federal Credit Union

Hudson Valley Federal Credit Union

I. H. Mississippi Valley Credit Union

Idaho Central Credit Union

Illinois Credit Union System

Indiana Credit Union League Inc

Interra Credit Union

Iowa Credit Union League

Jeanne D’Arc Credit Union

KEMBA Financial Credit Union

KeyPoint Credit Union

Kitsap Credit Union

Lake Trust Credit Union

Landmark Credit Union

Langley Federal Credit Union

LBS Financial Credit Union

LGE Community Credit Union

Maryland & District of Columbia Credit

Union Association

Massachusetts Credit Union Share

Insurance Corp

Mazuma Credit Union

Member Driven Technologies

Merck Employees Federal Credit

Union

Meriwest Credit Union

Metro Credit Union (MA)

Michigan Credit Union League

Michigan Schools & Government

Credit Union

Michigan State University Federal

Credit Union

Minnesota Credit Union Network Inc

Mountain West Credit Union

Association

Municipal Employees Credit Union Of

Baltimore Inc

National Association of Federally-

Insured Credit Unions

NavyArmy Community Credit Union

New England Federal Credit Union

NorthCountry Federal Credit Union

Northeast Credit Union

Northwest Community Credit Union

Northwest Credit Union Association

Nusenda Credit Union

NuVision Federal Credit Union

Ohio Credit Union League

Orange County’s Credit Union

Oregon Community Credit Union

Pen Air Federal Credit Union

Pennsylvania Credit Union

Association

Polish & Slavic Federal Credit Union

Purdue Federal Credit Union

Redstone Federal Credit Union

Redwood Credit Union

Robins Financial Credit Union

Rogue Credit Union

Royal Credit Union

SAFE Credit Union

San Francisco Federal Credit Union

San Francisco Fire Credit Union

Sandia Laboratory Federal Credit

Union

Scott Credit Union

SEFCU

Self Reliance New York Federal Credit

Union

Service Credit Union

Sound Credit Union

Spokane Teachers Credit Union

Stanford Federal Credit Union

State Farm Federal Credit Union

Teachers Credit Union

Technology Credit Union

Tennessee Credit Union League

Tennessee Valley Federal Credit

Union

Texas DOW Employees Credit Union

Texas Trust Credit Union

The CUMIS Group Ltd

Tower Federal Credit Union

Travis Credit Union

Truliant Federal Credit Union

TruWest Credit Union

TwinStar Credit Union

UNIFY Financial Credit Union

Unitus Community Credit Union

University Federal Credit Union

University of Wisconsin Credit Union

Utah Credit Union Association

Vantage West Credit Union

Veridian Credit Union

Virginia Credit Union League

Visions Federal Credit Union

Wescom Central Credit Union

West Community Credit Union

Westerra Credit Union

Wings Financial Credit Union

Wisconsin Credit Union League

Workers Credit Union

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

ED FILENE

Filene Research Institute 1010 E Washington Ave Suite 306 Madison, WI 53703

608-661-3740

filene.org

The credit union movement... it is a great movement, worthy of great deeds, deserving of great loyalty.

Filene engages leading scholars and researchers to dig deep into the problems, questions, and needs impacting cooperative finance.

Filene’s research Centers of Excellence explore these topics with the goal of identifying what comes next.

Filene’s research is relevant, tangible and at your fingertips. LOG IN OR CREATE YOUR ACCOUNT ON FILENE.ORG AND EXPLORE THE RESEARCH TO HELP WITH YOUR NEXT BIG IDEA.

CONSUMER THINKINGUncover consumer preferences, trends and behaviors to learn how to market your credit union’s programs and services based on how people make financial decisions.

UNIVERSITY OF ARIZONARESEARCH FELLOW: HOPE SCHAU

STANFORD UNIVERSITY

OPERATIONSExplore insights on how to run more efficiently and effectively scale your credit union operations.

RESEARCH FELLOW: HUGGY RAO

HARVARD BUSINESS SCHOOL

BUSINESS STRATEGYExamine the newest methods to improve organizational culture and align employee engagement with long-term strategy.

RESEARCH FELLOW: DENNIS CAMPBELL

UNIVERSITY OF CALIFORNIA, IRVINE

TECHNOLOGYScan the horizon in new technology and gain insights to inform cost/benefit analyses, risks assessments, and future digital strategies.

RESEARCH FELLOW: BILL MAURER

UNIVERSITY OF TEXAS AT AUSTIN

TALENTConnect to solutions for attracting, developing, and promoting top performers, from the front line to the board table.

RESEARCH FELLOW: SEKOU BERMISS