Repackaging Non- Interest Bearing Savings and Checking Products

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Beverly Pierce
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1 Repackaging Non- Interest Bearing Savings and Checking Products 8/26/2013 Anna Peña Coopera Client Relations Manager

2 Preview Steps to repackage a SAFE Account/ Checking account Best practice samples Coopera/ CUNA Resources 2

3 Trajectory of Products Basic Products and Ancillary Services Check cashing Remittances Money orders Bill payment Payday alternatives SAFE accounts and Savings Individual Development Accounts (IDAs) Tax assistance and RAL s Integration Products Checking Credit building loans Prepaid cards Lines of credit Auto loans Credit cards Direct deposit Home banking ITIN lending Residency loans Wealth Building and Protection Mortgage loans Business loans Insurance CDs Investments

Integration Products Checking Credit building loans Prepaid cards Lines of credit Auto loans Credit cards Direct

4 Steps to Repackage Products Review existing processes/ communications Identify areas of improvement for the market Financial education Enhancements Culturally relevancy Translations Partnerships Marketing

5 5 SAFE Account

6 The National Credit Union Association (NCUA) permits credit unions to serve individuals without social security numbers, if the person lives within the credit union s field of membership, regardless of their citizenship. 6

security numbers, if the person lives within the credit

7 CIP At minimum the credit union must obtain the following information prior to opening or adding a signatory to an account: Name Date of birth (for individuals) Residential or business street address, APO or FPO or address of next of kin (individual) or principal place of business, local office or other physical location (corporation, partnership, etc.); and Taxpayer identification number (U.S. person) or passport number and country of issuance, alien identification card number, or other government issued document bearing a photo or similar safeguard (non-u.s. person) Source: NCUA Letter on the Bank Secrecy Act (BSA) 7

physical location (corporation, partnership, etc.); and Taxpayer identification number (U.S.

8 Identification and Documentation Non-expired Government-issued Photo ID such as: Driver s license State ID U.S. or Foreign Passport Resident Alien Card ( Green Card ) Employment Authorization Document (EAD) Consulate Cards including the Matricula Consular Cédula Identification Cards Voter Registration Cards 8

9 Consular Identification Cards Official I.D. card issued by a non-u.s. Government through its consular offices in case individuals need consular assistance abroad Mexican Matricula Consular Bearer is of that countries nationality and is living abroad Does not: give bearer any immigration status or benefit allow a person to obtain a SSN Guatemalan Consular Identification 9

Consular Bearer is of that countries nationality and is living abroad Does not: give bearer

10 Cédulas National identification document used in many Central American and South American countries Cards or booklets Spanish documents 10

11 Mexican Voter Registration Card Credencial para votar Source: Instituto Federal Electoral 11

12 What is a SAFE Account? Non-interest bearing savings account Board approved Separate set of shares Doesn t require a taxpayer ID (ITIN or SSN) Best practice recommendation Able to serve whole Hispanic community

13 Interest vs. Non-Interest Bearing Accounts Interest-bearing accounts and loans require a taxpayer identification number Non-interest bearing accounts do not require a taxpayer identification number 13

14 Steps to Implement Review Customer Identification Program (CIP) Add SAFE account language Receive board approval Update process Train staff Promote

15 SAFE Account Sample Language For those non-u.s. persons that do not supply a U.S. taxpayer identification number, but do supply another form of acceptable identification under this policy, [Credit Union] will open a non-interest bearing share account. These accounts will be referred to as SAFE Accounts. Such accounts have been approved as a separate class of shares by [Credit Union s] board of directors. 15

[Credit Union] will open a non-interest bearing share account.

16 Help Members Obtain an ITIN Partner with an ITIN Acceptance Agents Become an ITIN Acceptance agent Have IRS Form W-7 available Source: Internal Revenue Service 16

17 Update Internal Process

18 Train Staff Trainings on Demand for Staff Hispanics & Immigration: Alternative Forms of Identification & Documentation: 18

php?sku=fc126p Alternative Forms of Identification &

19 Training Resources Reference ID Guides International ID Guide available US Immigration and Naturalization: Guide to Select Identity and Travel Documents available online at: 507/documents.pdf 19

html US Immigration and Naturalization: Guide to Select Identity and

20 Communicate with Members IRS Web Site ITIN forms, ITIN brochures, Acceptance Agents Secretaría de Relaciones Exteriores Matriculas, Passports Instituto Federal Electoral Mexican Voter Registration Card information

Relaciones Exteriores Matriculas, Passports Instituto

21 Communicate with Members Matrícula Window Cling

22 Marketing- Promotions

24 Checking Account

25 Checking Account Penetration Indicator= Preferred financial institution Average Hispanic member penetration is 47%

26 Steps to Implement Review existing process/ product Identify areas of improvement Update process Train staff Promote

27 Checking Alternatives/ Enhancements Prepaid reloadable cards Debit Card/ ATM Card ACH services/ direct deposit Rewards Checkless options Mobile alerts in Spanish

28 Financial Education To Oder: Click Here

29 Resources Member Education- Bilingual Seminar in a Box Pasos Basicos Para El Control de Su Dinero - Basic Steps to Managing your Money (Spanish Seminar in a Box) Checkbook Reference Card

30 Product Eligibility Roadmap Sample 30

34 34 Questions? / Preguntas?

35 Resources White Papers The Multifaceted Hispanic Market Develop the Right Organizational Mentality to Serve Hispanics Asking the Right Questions: How to reach and best serve the Hispanic market in your credit union Learning the Language of America s Youth Attract the Hispanic Community with Prepaid Reloadable Cards Hispanic Outreach Insights Monthly E-newsletter Hispanic Outreach Connection LinkedIn Group (CCHOC) y=5f Coopera Blog Coopera on Twitter Follow 35

36 2013 Upcoming Webinars Date Topic Helpful for Tuesday, Sept 17 th Developing a Cultural Translation Marketing at 11am CST Strategy Tuesday, Oct 15 th Tuesday, Nov 19 th at 11am CST Tuesday, Dec 17 th at 11am CST Hispanic Youth: Demographics, Products & Promotions Developing Win-Win Community Partnerships Hispanics and Credit All Staff Community Outreach, Business Development Operations, Front Line Staff 36

37 Contact Coopera Anna Peña NW 118th Street Des Moines, Iowa Coopera. Original information contained within this presentation is copyrighted and cannot be used without expressed written consent from Coopera.

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