Repackaging Non- Interest Bearing Savings and Checking Products

Repackaging

Non-Interest Bearing Savings

and Checking Products

8/26/2013

Anna Peña

Preview

• Steps to repackage a SAFE Account/ Checking account • Best practice samples

• Coopera/ CUNA Resources

Trajectory of Products

Basic Products and

Ancillary Services Integration Products Wealth Building and Protection •Check cashing •Remittances •Money orders •Bill payment •Payday alternatives •SAFE accounts and

Savings

•Individual Development Accounts (IDAs)

•Tax assistance and

•Checking

•Credit building loans •Prepaid cards •Lines of credit •Auto loans •Credit cards •Direct deposit •Home banking •ITIN lending •Mortgage loans •Business loans •Insurance •CDs •Investments

Steps to Repackage Products

– Financial education – Enhancements – Culturally relevancy – Translations – Partnerships – Marketing

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

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)

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

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

• 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

Mexican Matricula Consular

Cédulas

• National identification document used in many Central American and South American countries

• Cards or booklets • Spanish documents

Mexican Voter Registration Card

What is a SAFE Account?

• Separate set of shares

• Doesn’t require a taxpayer ID (ITIN or SSN) • Best practice recommendation

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

Steps to Implement

• Review Customer Identification Program (CIP) • Add SAFE account language

• Receive board approval • Update process

• Train staff • Promote

SAFE Account Sample Language

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.

• Partner with an ITIN Acceptance Agents

• Become an ITIN Acceptance agent • Have IRS Form W-7

available

Source: Internal Revenue Service

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Train Staff

Trainings on Demand for Staff • Hispanics & Immigration:

http://www.cuna.org/products-services/detail.php?sku=FC126P

• Alternative Forms of Identification & Documentation:

http://www.cuna.org/products-services/detail.php?sku=FC127P

Training Resources

Reference ID Guides

• International ID Guide available

http://www.driverslicenseguide.com/book-intl.html

• US Immigration and Naturalization: Guide to Select Identity and Travel Documents

available online at:

http://www.bollearningconnect.com/nonus0 507/documents.pdf

Communicate with Members

brochures, Acceptance Agents • Secretaría de Relaciones

Exteriores – Matriculas, Passports

• Instituto Federal Electoral – Mexican Voter Registration Card information

Communicate with Members

Checking Account Penetration

•

Indicator= Preferred financial institution

•

Average Hispanic member penetration is

Steps to Implement

• Train staff • Promote

Checking Alternatives/ Enhancements

• Debit Card/ ATM Card

• ACH services/ direct deposit • Rewards

• Checkless options

To Oder: Click Here

• 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

Product Eligibility Roadmap

Sample

Questions? / ¿Preguntas?

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

http://www.cooperaconsulting.com/hispanic-expertise.cfm • Hispanic Outreach Insights Monthly E-newsletter

http://www.cooperaconsulting.com/

• Hispanic Outreach Connection LinkedIn Group (CCHOC)

http://www.linkedin.com/groupInvitation?groupID=2148195&sharedKe y=5F7335401508

• Coopera Blog http://blog.cooperaconsulting.com/ • Coopera on Twitter Follow Coopera @_Coopera

2013 Upcoming Webinars

Date Topic Helpful for…

Tuesday, Sept 17th

at 11am CST Developing a Cultural Translation Strategy Marketing

Tuesday, Oct 15th _{Hispanic Youth: Demographics,}

Products & Promotions All Staff

Tuesday, Nov 19th _at

11am CST Developing Win-Win Community Partnerships Community Outreach, Business Development

Tuesday, Dec 17th _at

11am CST Hispanics and Credit Operations, Front Line Staff

Contact Coopera

Anna Peña

pena@cooperaconsulting.com

866.518.0214

1500 NW 118th Street Des Moines, Iowa 50325