For more information: 
Phil Tschudy 608/231-7188  philip.tschudy@cunamutual.com
Rick Uhlmann 608/231-8940  rick.uhlmann@cunamutual.com

April 28, 2008

Incorporate Retirement Programs Into Business Services Strategy
Credit Unions Tell NACUSO Attendees of Benefits of Marketing 401(k) Programs

LAS VEGAS – Credit unions that have adopted a formal strategy to enter the business services market should consider offering 401(k) retirement plans to select employee groups, business members and other businesses, a panel told attendees at the National Association of Credit Union Service Organizations (NACUSO) annual conference Monday.

CUNA Mutual’s Steve Dowden, senior vice president of asset accumulation sales distribution, moderated the panel that included Kevin Thompson, CUNA Mutual vice president of asset accumulation products; Peggy Mostowy, assistant vice president of business development at Clearview Federal Credit Union; and Chuck Purvis, senior vice president of Coastal Federal Credit Union.

Credit unions are showing more interest in offering retirement programs as part of an overall business services strategy, Thompson said.  “That makes sense, because offering 401(k) programs to SEGs and small businesses directly supports a business services growth strategy.”

• Thompson said marketing retirement services can help credit unions:
  Attract and retain members (including younger ones)
• Generate ongoing fee income from plan sales
• Attract 401(k) rollovers and individual rollovers from participants
• Strengthen current business relationships
• Increase cross-selling opportunities for CU products (i.e. lending, checking accounts)
• Increase retirement expertise awareness within the community
• Remain relevant to baby boomers, while helping them do a better job of saving for retirement.

“For Coastal FCU, it gives us an opportunity to deepen the relationship with our 1,100 SEGs and provide valuable business services to diversify and grow our revenues,” Purvis said.

It also helps the credit union meet demand from small businesses for reasonably priced services from a local, trusted and tenured institution.  “The average community bank in our market is less than seven years old.  Our credit union has an established track record here over the last 41 years,” Purvis said.

Coastal offers a full menu of business lending and business account services, and adding employee benefit plans seemed a logical extension.  “The ability to offer 401(k) plans will better position us to capture rollover funds in our Trust and Investment Services group, and these additional services will enhance our visibility within our SEGs, particularly with HR decision makers,” he said.

Clearview’s Mostowy echoed those sentiments, and stated her credit union’s target market is small businesses (annual sales up to $5 million) and the mid-market (annual sales between $5 million and $10 million).  “This product will assist small businesses as they grow and their needs become more complex.  With mid-market clients, it will deepen the relationship and provide us the opportunity to compete with the larger financial institutions,” Mostowy said.

Coastal and Clearview are partnering with CUNA Mutual to offer the company’s growing 401(k) program, which has consistently ranked among the top 401(k) providers nationally for sponsor satisfaction in the micro and small retirement plan markets. CUNA Mutual provides marketing and administrative support and works hand-in-hand with credit unions to establish the program and coordinate employee enrollment meetings.

“CUNA Mutual’s cost is very competitive, and the options and delivery channels are as good as any provider in the market,” Purvis said. “We believe that packaging these services for delivery to our small business members will be a winning proposition for all parties,” he said.

CUNA Mutual’s ability to offer this program fits ideally with Clearview’s strategies and makes the 401(k) a perfect complement to its business products and services, Mostowy said. “It’s a turn-key offering that allows us to be very responsive to our clients and another way to let the marketplace know that Clearview offers the depth of products and services as other larger financial institutions,” she said.

“The expansion of our 401(k) program is a good example of CUNA Mutual transforming its business to bring new value, new products, and better services to CUs and their members,” Dowden said.  “Pivoting the company by developing new products and new markets that diversify CUNA Mutual provides growth opportunities for the company and for credit unions.”
 
CUNA Mutual Group is a leading provider of financial services to cooperatives, credit unions, their members and valued customers worldwide. With more than 70 years of market commitment, CUNA Mutual’s vision is unwavering: to be a trusted business partner who delivers service excellence and customer-focused, best-in-class products and market-driven innovation. More information on the company is available on the company’s Web site at www.cunamutual.com.