IT UP Credit unions are a path to a better financial future. Filene empowers you to LIGHT IT UP.

Your financial support of Filene serves as a light to a brighter financial future for hardworking people. You push credit unions forward, to light the path for others to follow, and to ensure people in your communities seize opportunities and shine.

Our shared passion and dedication to help consumers find safe and reliable financial solutions is transcendent. Couple that with the polarization of wealth and the incentives for banks to focus on short- term shareholder returns; credit unions are on the cusp of greatness realized. Now is our time.

We face major challenges: Ensuring the right talent is in place, keeping pace with emerging financial technologies, growing new ideas and creating sustainable innovation to meet expanding consumer demands, and having the resources to build organizational excellence to support scaling.

We rise to these challenges, together. That’s why we celebrate you. Your gift allows us to research, test and offer proven solutions that create meaningful impact for your organization and drive positive change for your members. You light the way for a brighter financial future for millions of people.

Shine on,

Mark Meyer President + CEO

DOWNLOAD the DIGITAL VERSION filene.org/annual-report/2017 IMPACT OF YOUR DONATION

As a Filene Research Institute member, you join more than 1,000 other passionate organizationsWHEN that WE support GET theTOGETHE growth andR, sustainability THINGS HEAT of cooperative UP. HER finance.E’S HOW:

We just want to thank you for playing with us!

We are not much into trophies, but 1,005 people representing 340 credit The Cooperative Trust was bestowed unions and system organizations the movement’s shiniest honor: across North America engaged in The Herb Wegner Award. Filene events this past year. THANKS FOR THE HONOR! THANKS FOR JOINING US!

You collectively gave close to 37 credit unions rigorously tested serving $8 million to brighten up vulnerable populations in the opaque the industry’s research and consumer credit markets, and issued development efforts. $25 million in consumer friendly . THANKS FOR TRUSTING US THANKS FOR CHANGING (WE WON’T LET YOU DOWN)! PEOPLE’S LIVES!

Close to 60 of our members invited Together we developed us to illuminate their strategic 52 research reports and outputs planning process with fresh ideas. with the latest industry insights. THANKS FOR THE INVITATION! THANKS FOR STAYING CURIOUS!

Filene has transformed into an organization“ that doesn’t just think; they help create action that provides bottom line results. From developing strategy, to growing talent, to engaging members, Filene’s focus is squarely directed in the areas that matter most to our . Their research is invaluable to us as we strive to improve our organization. ” Chuck Purvis, President/CEO, Coastal Federal Credit Union RESEARCH

Shining light on the industry’s most pressing issues

Everything we do is rooted in research. Filene Fellows, our Research Council, and other leading scholars ask tough questions, challenge the status quo, think differently, look outside, and collaborate through research to find the truth. Filene’s Centers of Excellence are fully operational, here is a breakdown of our key contributors:

Center for Consumer Decision Making Uncovering consumer preferences, trends, and behaviors in money management.

Research Fellow: Hope Schau, University of Arizona Supported by: CUNA Mutual Group

Center for War for Talent Attracting, developing, and promoting top performers, from the front line to the board table.

Research Fellow: Sekou Bermiss, University of Texas at Austin Supported by: Visa

Center for Performance and Operational Excellence Exploring and excelling in progressive management practices and operational behavior.

Research Fellow: Huggy Rao, Stanford Graduate School of Business Supported by: Fiserv, Alliant Credit Union, Christian Financial Credit Union

Center for Emerging Technology Connecting credit unions with the most impactful technology and consumer trends.

Research Fellow: Richard Swart, University of California, Irvine Supported by: CO-OP , BECU, Coastal Federal Credit Union

Center for Organizational Entrepreneurship Cooperative strategies for sustained competitive advantage and business model innovation.

Research Fellow: Dennis Campbell, Harvard Business School Supported by: PSCU, American Airlines Federal Credit Union, BCU IMPACT

Helping credit unions shine

We take the best insights, rooted in research and tested in the market, and make them scalable programs that drive change for credit unions, financial cooperatives, and hard-working people.

STRATEGY CYCLE SAVVYMONEY ?? 56 strategy sessions 1.25 million credit union members have access ? facilitated for credit to their credit scores and full credit reports for ? union organizations free through their credit unions across North America LARKY INNOVATION PROGRAMMING 1.3 million credit union members 27 Innovation Experiences teaching are connected to 1,200 locally- credit unions Filene’s methodology for targeted discounts via the web innovative thinking and mobile loyalty platform 8 full Innovation Groups where credit union organizations work with Filene over VERTEX the course of 9-12 months to build the 16 credit union leaders who are now better long-term infrastructure for innovation equipped to engage and develop their teams via the virtual coaching program MEMBER JOURNEY 15 credit unions completing member QCASH journey sessions that help the institution truly 44,336 loans made possible via the understand and improve the experience of their omni-channel lending solution that offers members across and between access channels relationship based underwriting (without credit check) to members in search for small, short-term unsecured loans

ONBOARDABILITY and YOUNG ADULT ADVISORY SERVICES DIGITAL STRATEGIES 2 new impact programs introduced 19 Digital Strategies Engagements by Filene in fiscal year 2017

We used Live Observational Research“ to test-market our new online and account application. We learned about at least three critical issues that will improve the flow and member experience of our new application. ” Jan Roche, CEO, State Department Federal Credit Union INNOVATION

From flashlight to spotlight A light through the cracks

This year fifteen individuals joined over 250 credit union leaders that have been part of the i3 group since 2004. These creative and passionate people use their inner light to grow ideas into viable solutions and brighten up people’s financial futures. Fourteen new ideas were introduced and a handful are making their way into the marketplace.

DEBT DRAGON guides students through BANK ON FAMILY is a product that reduces relatable, interactive scenarios that the awkwardness and informality of family or show real-time financial implications friends lending money to each other. With the and alternatives about their college credit union as the loan facilitator, borrowers investment options with clear action can get credit score recognition for on-time items, next steps, and checklists. payments while helping build brand loyalty and positive financial behavior. 14 credit unions are testing Debt Dragon. Results coming soon.

“ I thought that in order to come up with an innovative idea you had to either be a genius, or you were at the mercy of serendipity or spontaneity. I didn’t realize that following a formal, structured process can actually spark innovation! Which means innovation can indeed come from anyone, anywhere. ” Serese Selanders, VP Member Experience Strategy, Affinity Credit Union & i3 Alum INCUBATOR

A light through the cracks

In the Filene Incubator, credit unions test products that are rooted in our research and vetted against real consumer needs. Together, we are shining a light through the cracks in our financial system, and credit unions are lighting a path to a better financial future for those who have been left in the dark.

REACHING MINORITY HOUSEHOLDS

Thirty-seven credit unions have stepped up to replicate and test solutions aimed at meeting the needs of households of color and other vulnerable populations in the U.S. and Canada. With generous support from Visa and the Ford Foundation, Filene is enabling the credit union industry with innovative programs that can positively impact their organization’s and community’s bottom line.

One of the five programs being tested, the Non-Citizen Lending Program, is showing tremendous promise to be scaled and make a significant consumer impact – with over $22M in loans placed in just fifteen months from thirteen credit unions. However, the Incubator’s impact cannot be measured by statistics alone.

The true beneficiaries are individuals with hopes, dreams, and aspirations. Their stories measure true impact. Mariana (pictured below) benefited from Wakota Federal Credit Union’s participation in the Incubator’s Non-Citizen Lending Program. Mariana’s family was struggling with an unaffordable auto loan from another financial provider so Wakota FCU’s loan officer helped them find a payment option that worked within their budget. Mariana said, “it was just perfect and a huge blessing” for her family. THE COOPERATIVE TRUST

Igniting a fire Spotlight on Financial Performance: FY ended June 30, 2017

This passionate community of young, credit union professionals continues to promote collaboration and engagement across the industry. Its programs, including the Crash program, invite the next generation of leaders to experience industry events and partake in professional development opportunities, ensuring credit unions are engaging their staff to win the war for talent. FINANCIAL HIGHLIGHTS

Spotlight on Financial Performance: FY ended June 30, 2017

Our annual report provides an opportunity for us to thank the generous donors whose financial support makes our work possible, while also highlighting our financial health. We are fortunate to receive support from diverse revenue sources including membership contributions, Centers of Excellence Sponsorships, Grants, Outreach & Education services and Applied Research & Innovation programs. Our program services make up the majority of Filene expenditure enabling us to continue to deliver on our 501(c)(3) mission and create greater impact for credit unions, financial cooperatives and ultimately, consumers.

2017 REVENUE: $7,883,186 2017 EXPENSES: $6,122,449

Membership Contributions 47% Program Services 80%

Research Sponsorships & Grants 31% Support Services 12%

Outreach & Education 19% Membership Development & 8% Fundraising Applied Research & Innovation 3%

ASSETS LIABILITIES & NET ASSETS Current Assets $9,514,790 Liabilities $1,527,020 Fixed Assets $193,811 Unrestricted $5,665,059 Other Assets $1,239,294 Temporarily Restricted $3,755,816 Total Assets $10,947,895 Total Liabilities & Net Assets $10,947,895

Maurice Smith – Chair Paul Kundert – Director Mike Schenk – Local Government Federal UW Credit Union, President/ Advisory Member Credit Union, President/CEO CEO CUNA & Affiliates, Vice It takes dedication President, Economics and to move an industry. Angie Owens – Vice Chair Shruti Miyashiro – Director Statistics American Airlines Federal Orange County’s Credit This group of inquisitive, Credit Union, President/CEO Union, President/CEO Steve Suleski – experienced leaders Advisory Member help light up Filene’s Tracie Kenyon – Treasurer Jan Roche – Director CUNA Mutual Group, Senior Vice President and Chief mission through Montana Credit Union State Department Federal Network, President/CEO Credit Union, President/CEO Governance Officer volunteer service as our Board of Directors. Jim Nussle – Secretary Bob Trunzo – Director CUNA & Affiliates, CUNA Mutual Group, President/CEO President/CEO THANK YOU! You light up our world.

As a not-for-profit 501(c)(3) organization, Filene Research Institute relies on contributors to fuel our work. With this support, we are able to advance the boundaries of possibility through research, innovative ideas, and collective action. It’s the passion and insights of our supporters that encourage us to think more boldly about the future. Thank you to all of those who joined us on this journey last year.

Sponsors Chair of Excellence ($400,000–$1M over 4 years)

*

Grantors *

Members Charter Founding Chairman’s Roundtable ($250,000 over 3 or 4 years)

* *

Benefactor Gold ($50,000+)

*

Benefactor Silver ($25,000)

C 24 27 20 13 9 8 7 6 64 White M 75 95 96 98 100 92 84 34 55 Y 56 74 72 72 71 64 56 24 53 K 7 22 9 2 1 1 0 0 63

Benefactor Bronze (Non-Credit Union, $10,000)

* CONTRIBUTION ALIGNED WITH A CENTER OF EXCELLENCE Benefactor Bronze ($10,000)

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