alvaro macias 2014 cues next top credit union exec presentation

Alvaro MaciasCommunity Development Coordinator Ascentra Credit Union ($340M) Bettendorf, Iowa

The New Iowans Initiative

○ Slow membership growth of CUs ○ Increased scrutiny of financial institutions ○ Competition – fringe financial services, Apple

Pay, PayPal, Wal-Mart ○ Aging population and membership of CUs

INDUSTRY CHALLENGES

○ Immigrants tend to have larger families ○ Immigrants tend to be younger ○ Immigrants are in their prime borrowing years ○ According to FDIC 40-55% of Latino

immigrants are unbanked

OPPORTUNITIES IN SERVING IMMIGRANTS

○ About 2004 – Recognition of the opportunity ○ 2010 Census: Muscatine, Iowa ● 16.6% Hispanic ● 6.9% Foreign born ○ 2010 Census: Iowa ● 5% Hispanic ● 4.3% Foreign born

THE FOUNDATION

○ Added products, services & adjusted account opening process ● International money transfers ● Market loan products

○ Quarterly internal & external advisory groups ○ Involvement in events

OUR PROGRESS

○ Hispanic growth at Ascentra have risen 35% since 2010 ○ Overall membership growth since 2010 is 8%

OUR GROWTH SINCE 2010

○ Partnership with Diversity Service Center of Iowa (DSCI): Non-profit immigration services provider

○ Perfect timing: grant opportunity ○ Awarded a grant for $37,500 to create an

immigrant asset-building initiative

NEW IOWANS INITIATIVE

○ Grantmakers Concerned with Immigrants and Refugees ○ The National Federation of Community Development

Credit Unions ○ Northwest Area Foundation

A GENEROUS GRANT FROM...

○ Ascentra has a proven track record of working with the immigrant community

○ DSCI has the trust of the immigrant community in our region ○ DSCI loses potential clients because they don’t have the

money to pay for costly immigration fees ○ We provide financing to people who may otherwise put their

services on hold

THE PARTNERSHIP WITH DSCI

○ $24,500 has been put into a DSCI Account ○ The amount will be used as collateral for “Citizenship Loans” ○ DSCI will contact designated Ascentra staff informing us of a

referral ○ The new member comes in, applies for the loan and DSCI

signs off on using their account as collateral ○ The remaining $13,000 are used for a part-time program

coordinator at DSCI

STRUCTURE OF LENDING

Marketing ● Collateral Material & Web ○ Flyers ○ Brochures ○ Ascentra.org/NewIowans

NEW IOWANS INITIATIVE OUTREACH

○ Is it for everyone? ○ Do you know the demographic trends in your

region, state, or city? ○ Planning ○ Final thoughts...

NEW IOWANS INITIATIVE

○ Do you plan on being in business in 2040?

FINAL THOUGHTS...

QUESTIONS?

Ascentra.org/NewIowans

Q&A with

Alvaro