Desert Schools Case Study –Incorporating Financial Education into a Highly Successful Sales & Service Program

“An educated employee is our best employee” – Becky Nilsen, CEO, Desert Schools Financial Services -

Agenda

• Background Information on Desert Schools• Why did Desert Schools provide employees with

financial education training?• What forms of financial education are provided?• How was the financial education promoted?• Recap of the results of the program• Q&A

Background InformationDesert Schools FCU:• $3 billion dollars• 61 branches in Arizona• 352,000 members• 1,300 employees / 1,040 FTE• “Appropriate” Selling is Good Service!

Desert Schools Financial Services:• Offers insurance, investments and estate

planning

• Serves roughly 10,500 members with team of 30 people

• $55M in sales, generating nearly $3M in non-interest revenue in 2006

Background Information

• In 2003, senior management realized lack of financial knowledge was not only a “member education” issue. Employees needed help too.

“Employees will not recommend or refer a product or service they don’t understand”

- Becky Nilsen, CEO Desert Schools Financial Services -

Why provide financial education to employees?

Why provide financial education for employees? 3 Year Performance

  2004 2005 2006 3YR Growth

Referrals 3,000 5,500 9,500 317%

New Sales $20 M $40 M $55 M 275%

Gross Revenue (GDC) $0.8 M $1.6 M $2.6 M 325%

Building a Sales & Service Culture

• Helping to educate and empower credit union employees to connect members with services they need.

• Partnership of senior management, training, and the Educated Investor team to help achieve key goals.

Desert Schools Virtual University:• Internal education offering 10 degree

programs • Develop technical competence to

drive business goals• Blended learning approach • Degrees are used to promote within• Celebrate success!

Building a Sales & Service Culture

Evolution in Financial Services Training• Education on CD• Online tutorials for employees &

members• Seasonal product knowledge• Integrated marketing campaign• Robust online degree programs

Education on CD• Provided financial services education to

employees and members• Quick deployment for staff• No tracking and accountability• In-frequent updates

Online Tutorials• Transferred tutorials from CD to

DSVU server• Deployed tutorials through DSVU and

tracked scores• Placed the same content on the

company website for members

Online Tutorials-Results• Personal Finance Certificate Program offered 18 online

courses related to investing basics, retirement and related areas

• Over 200 people completed certificate program

• Helped drive 15,000 referrals and $100M in sales

Seasonal Product Knowledge• Reinforced IRA knowledge for front

line staff in March to prepare for tax season questions

• Mandatory training modules online• New Educated Investor University

format• Custom landing page

Retirement Readiness– Results

 Content was valuable for preparing someone to plan for the future.

84%

After taking this course, I’m more likely to talk with members.

I feel more knowledgeable.

Test Questions were fair

82%

Course content was fair 87%

 Avg. Hours = 1.9 Pre-Test Post-

Test

Number of Employees 509 489

Average Score 60% 78%

Integrated Marketing Campaign

• Q3 Campaign Targeting Financial Services• Customized tutorials to support staff

knowledge

Integrated Marketing Campaign– Results

  Employees Average Score

Pre Test 350 60.93%

Post Test 345 81.17%

Robust Degree Programs Online• Three complete degree programs

– Personal Finance– Investing basics– Retirement & Wealth Management

• Each degree consists of 15-20 hours• Online access anywhere, anytime• Updated Information

Recap• 3,000+ Courses Completed• 800+ Employees Completed Courses• 1,200+ Employee Interactions• 7,000+ Training Hours

  2004 2005 2006 3YR Growth

Referrals 3,000 5,500 9,500 317%

New Sales $20 M $40 M $55 M 275%

Gross Revenue (GDC) $0.8 M $1.6 M $2.6 M 325%

Desert Schools Case Study –Q & A