Credit Unions: A Self-Sustaining Development Solution USAID OCDC Cooperative Brown Bag Series June 4, 2014 Bill Cheney, President & CEO, Credit Union National Association Brian Branch, President & CEO, World Council of Credit Unions

1 Credit Unions Worldwide 101 Countries 56,000 Credit Unions $1.3 Trillion in Savings $1.1 Trillion in Loans $1.7 Trillion in Assets 200 Million Members

2 Developing & Emerging Economies 93 Countries 47,000 Credit Unions $179 Billion in Savings $152 Billion in Loans $252 Billion in Assets 86 Million Members

3 Foundation: Access to Finance United States Promoting financial inclusion since 1934 Internationally Taking lessons from the U.S. to promote credit union growth worldwide starting in the 1950s

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6 Savings for Consumers Credit unions provide billions of $$ in financial benefits to consumers each year (nearly $8.5 billion in 2013)

7 Demand Driven Approach Consumers like us Convenience Good prices Choice: variety of savings and loan products Financial education

8 Growth of the U.S. Sector

9 Communicating Arts Credit Union in Detroit, MI Low-income credit unions (LICUs) Products designed to assist low- income individuals and families Financial literacy Youth programs Community Development

10 International Engagement World Council Partnerships Program Bahamas / Massachusetts Jamaica / Texas Belize / Texas Mexico / Colorado Brazil / Texas New Zealand / Canada Colombia / Maryland & DC Paraguay / Minnesota Costa Rica / Florida Peru / Vermont Dominican Republic / Wisconsin Poland / Georgia Ecuador / Illinois Puerto Rico / New York Estonia / Virginia Romania / Ohio Ghana / Louisiana Russia / Louisiana Guatemala / California & Nevada Trinidad & Tobago / Connecticut Global Women’s Leadership Network 9 U.S. based Sister Societies 6 International based Societies

Global Challenges Regulatory Burden Mobile and Payments Small CU Sustainability Membership Growth Small Farmers

12 Global Advocacy Representing credit union interests at international levels Advocating for rigorous and appropriate levels of regulation and oversight Working with national governments to enact progressive and prudentially sound laws and regulation

13 Mobile Technology Strategy Credit unions leverage the collective size and bargaining power of a network to serve more members, more effectively, more often. Increasing Levels of Access and Convenience

14 Field Agent Banking – Rural Outreach Use of smartphones (PDAs), POS devices and mobile banking to extend savings and credit to remote areas More than 1.1 million members reached through Semilla Cooperativa

15 Remittances for the Unbanked Haiti: Enabling remittance transfer via mobile phones Remittance-linked products US$ 4 billion transferred to recipients through credit unions Opportunity to bring the unbanked into the financial system

16 Strength in Networks Bolivia, Brazil, Colombia, Ecuador, Guatemala, Kenya, Mexico, Peru and Poland Mobile Technology -Remittances -Mobile banking -Smartphone -Tablet -POS device -Deposits -Payments -PtP transfers -Purchases World Council - National Federation - WSG Office CU - National Federation - WSG Office CU - National Federation - WSG Office CU - National Federation - WSG Office CU

17 Young Adult Outreach 2.8 million young people have mobilized more than $4.3 billion in savings through credit unions in 30 countries. Reaching young people with products and services to address life transitions

18 Outreach to Women Leveraging the global community to support outreach to women through the Global Women’s Leadership Network Increased savings Increased investment in education, medical care and better- quality food On average, women make up 50% of credit union membership

19 Financial Inclusion I. Model Credit UnionIII. Integrated Networks Affordability Availability Accessibility The Disciplines, Efficiency and Structure to Keep Costs Low. The Appropriate Mix of Financial Products and Services. The Broadening and Deepening of Outreach using all Available Tools. II. Expansion, Products & Services People with access to finance live healthier and more productive lives.

20 Agricultural Finance to Reach Small Farmers Peru: Farmer income increased by 22% with new access to finance and markets

21 Integrated Ag Financing Model Ethiopia 44,685 direct beneficiaries 48% increase in income 32% increase in savings Guatemala Scaling the model to reach 332,193 small farmers

22 Islamic-based Credit Union Model Afghanistan 100,000 members 14 provinces 30 IIFCs (credit unions) Self-sustainable in 3 to 4 years 205,000 jobs created IIFC Group (national association) member of World Council

23 Thank you Questions?