Project Differentiation

MAZUMA CREDIT UNION

As a member-owned, not-for-profit financial cooperative, Mazuma Credit Union will uphold its fundamental responsibility to actively serve our field of membership, and as appropriate, the community in which they live.

We are committed to our mission of being a provider of high quality financial services and education aimed at improving our members' financial well-being. Products and services are the means, but financial security is the end goal. We will help educate our members so that they make wise financial decisions for themselves.

We will look for better ways to serve the interests of underserved portions of our member and potential member base. We will seek opportunities to communicate and demonstrate the unique role that member-owned financial cooperatives play in our society, so that our members, potential members, legislators, regulators, and the community at large understand our differences.

All of this will be consistent with our credit union principles of "Not For Profit, Not For Charity, But For Service," and will represent good business practices that ensure the financial strength of our credit union on behalf of our members.

Annually, as part of our business planning process, we will assess whether our service and corporate culture are in alignment with this Statement of Commitment of Service to Members.

Section 1: Service to Members

Mazuma Credit Union provides the following programs and services to improve the economic and social well being of members and return financial value to our members and potential members.

Current or Existing Services:

Money Bunny Club - Youth membership club targeted at children ages 0-12. Promotes savings and good money management for youth through savings incentives, offers special educational fun through quarterly activities and a quarterly newsletter. (Max, the Money Bunny, is our mascot.)
fyi Only Club - Targets youths between 13-18. Teaches sound investment skills and the wise use of credit through a quarterly newsletter and seminars. A teen advisory board helps determine seminar content.
Freedom Club - Targets mature adults 55 and older by offering special account services.
Teaching Teens About Money - A money management workshop that is being provided to Lee's Summit and Southeast High Schools.
Free Checking Accounts - Value Checking provides members with a free checking option and no balance requirements.
Members Financial Services Program - An investment program that offers financial and investment services to members such as mutual funds, annuities, stocks, etc. Two representatives on site at Main Office and Gladstone locations.
Mortgage Loans, Including Non-Conforming Loans - Enables some members who might not qualify for a traditional mortgage loan because of some credit problems or down payment requirements, to obtain a mortgage loan.
Equal Opportunity Lender - Loans are made without regard to race, creed, or religion.
Share Secured Loans - Enables members to establish or re-establish credit.
Member Rewards - Relationship pricing that provides discounts on loans and bonus points on CDs based on members' business relationship with the credit union.
Special CD Programs - Young Investors' CD, Step Up CD, and Deposit CD offer special features targeted to young members and to members who seek an alternative to the volatility of the stock market.
Check Cashing Service at Low Monthly Fee - Offers unlimited check cashing for members who do very limited business with the credit union, at a low $2 a month fee.
Visa Gold Card Program - Targeted to higher income, high credit quality member at a low 11.9% APR, in addition to Visa Classic program, both offered without annual fee.
Secured Visa Card Program - Enables those members with little credit or with some credit damage to have a credit card, while re-building credit.
Surcharge Free ATMs - 13 ATMs provided at 9 locations, all surcharge free.
Free SMARTLINE - Audio response enables members to transact business conveniently from home or work.
PC Banking - Online Teller offers members the ability to transact business from home or office and includes a bill payment feature.
Lease Alternative Program through Payment Advantage - Provides members the option to purchase a vehicle with lower lease-like payments, but member retains title to the vehicle.
Rebate on Home Equity Loans - A promotional offer that rewards new loans with a rebate on interest paid for the year.
Visa Skip-A-Payment - A holiday promotional offer that allows members to skip their January Visa payment.
Excess Share Insurance - Provides members with up to $350,000 in deposit insurance.

New Services(s) Planned for 2000:

Short Term Unsecured Loans
Indirect Lending Relationships with select group of car dealers.
Mid-town Facility - Determine location and prepare plans and budget for a 2000 year branch.
Platinum Card - Determine whether sufficient market exists.
Additional Features to Core Deposits - Review market needs for additional features to saving, checking, and money market accounts.
Incentives for Good Grades - Investigate incentive options for young students who achieve good grades.
First Time Buyers and Low Income First Mortgage Programs - Investigate market potential.
Alternative Relationship Programs - Phase out Members Rewards Program with an alternative program to enhance account loyalty and profitability.
USDA Facility - Analyze business potential for additional location at new USDA facility.
"Personal Banker" Concept - Increase service to very valuable members through an account relationship with an Account Executive.
Loan Application Alternatives - Increase options available for members to apply for loans that are more convenient.
Target 18-35 Age Group - Group most likely to benefit from a credit union relationship. Assess lifestyle patterns and best delivery mechanism to reach them.

Section 2: Member Education

Mazuma Credit Union is committed to member education and social responsibility to enhance our members and potential members lives and financial "well-being," as well as to promote credit union uniqueness, philosophy, and values.

Current or Existing Programs:

Consumer Credit Counseling Services (CCCS) - CCCS Representative is on-site one day a week to provide counseling services to members conveniently, and at no cost.
Home Buying Seminars - Provided annually to members in conjunction with Missouri Credit Union League.
Web Site - Contains valuable information about Mazuma's products and services, financial advice, with links to investment advice and financial calculators.
fyi Only Advisory Board - The four member teen Board provides Mazuma with advice on what topics are of interest to teens and how to market to this group.
SEG Lunch & Learn Sessions - A series of educational topics are presented annually to employees of selected SEGs and government agencies, with lunch provided.
Internal & External Newsletters - Provide educational information to members and employees on a regular basis, including newsletters geared toward our young members.
Teaching Teens About Money - A high school education program to teach young adults how to manage money that Mazuma puts on monthly at Southeast H.S. and Lee's Summit H.S.
Junior Achievement - Teaches school children at Hartman Elementary School and Center Middle School how to make wise money decisions for themselves.
Take Your Child To Work Day - Once a year employees can bring a related youngster to work to see what the parent or relative does each day and to learn more about what a credit union is.
Members Financial Seminars - Investment and other related seminars are provided by representative of Members Financial Services on site.
PC Carbook - Members can research new and used car prices, both retail and wholesale, prior to buying the car to negotiate the best price.
Member Satisfaction Surveys - A weekly random survey of members who conducted transactions to learn how well the credit union is serving its members.
Billboards, Brochures, On-Hold Messages, Newspaper Ads, Media Releases - All geared to inform and educate members and potential members about Mazuma's products and services and uniqueness.
Credit Bureau Report Information - Members who have been denied credit based on credit bureau information are informed about their credit bureau reports and how to make improvements.
Employee Orientation and STAR and MERIT Training - Provides employees with information about credit union history and uniqueness.
Surcharge-Free ATMs - Brochures and web site keep members informed of area surcharge-free ATMs.
Financial Partnership Program - Training program for Account Executives and Telephone Service Representatives to help members build a strong financial future.
Mazuma "Money Minders" - Radio ads which are educational commentaries about managing money.
Mid-Town Partnership - A partnership relationship with KC Community Builders to obtain external financing for a Financial Literacy Officer for the proposed mid-town facility
Westport H.S. Partnership - Helps high school students become familiar with careers in finance and how to prepare for the work world.
EARS Program - Educating Adults to Read with Students, a program to encourage parents to read with their children at James Elementary School.
College Preparation Seminar - For fyi Only members to prepare students for college.

New Program(s) Planned for 2000:

Technology Center - A demonstration area to help members understand how to use electronic service delivery mechanisms.
Career Fair - For fyi Club members to prepare for careers.
Financial Literacy Seminars - A series of seminars at KC Caring Community School sites to help mid-town members learn sound money management skills.
In-house Seminars - Collaborate with business partners to provide financial seminars at credit union facilities.
Lobby Video - A video service to provide Mazuma infomercials to members during wait time.

Section 3: Involvement/Governance

Mazuma Credit Union will endeavor to preserve the credit union democratic principles, including demographic representation and volunteer participation in credit union activities.

Current or Existing Programs:

Board Elections - Board member elections are held by ballot box and mail ballot process to encourage wide participation by members.
Nominating Committee - The Board Nominating Committee is comprised of five members, and normally three are existing members of the Board or Supervisory Committee and two are at-large members. This composition invites member participation into the election process.
Board Nominations - Xtra Dividends is used to solicit membership interest in running for the Board of Directors. The Nominating Committee screens applicants, and nominates the best qualified to be placed on the ballot. The Nominating Committee strives to ensure that members have a choice in the election process.
Annual Meeting - Members are encouraged to attend their annual meeting to hear the reports of the officers and the final election results.
Volunteer Board - The Board and Supervisory Committee all volunteer their time and commitment without benefit of any payment.
Volunteer Training - Board and Supervisory Committee members are encouraged to attend all Chapter and League functions to become informed about the credit union system and issues. They are also encouraged to attend one national credit union conference to obtain a broader perspective of credit union issues. All volunteers agree to complete at least one of the Volunteer Achievement Program tracks each year.
Political Activism - The credit union Board, management and staff recognize their roles as legislative advocates for members to protect our democratic and operating principles. As such, the credit union encourages on-going participation in lobbying efforts, election campaigns, and fund-raising efforts for political action.

New Program(s) Planned for 2000:

No new programs planned.

Section 4: Diversity

Mazuma Credit Union recognizes the value of demographic diversity in staff as well as in volunteers, and will strive to bring people of diverse backgrounds and experiences into leadership and other roles at the credit union.

Current or existing programs:

Equal Employment Opportunity - Mazuma actively seeks to fill vacancies by hiring qualified candidates without regard to race, creed, religion, or socio-economic status, seeking to represent the community in which we operate.
Diversity Training - All employees receive diversity training during orientation.
Member Market Segmentation - MCIF is used to help determine the demographic makeup of Mazuma's members so that products and services may be specifically targeted to meet their needs.
Employee Diversification - In recent years, a concerted effort has been made to diversify Mazuma's employee base, including its management team, to better mirror its membership and community.
Affirmative Action Plan - Lists Mazuma's efforts to encourage and enhance a diverse staff.
TDD Phone - A telephone device for the deaf is used in the phone center.

New Program(s) Planned for 2000:

Make Training Available for employees to better assist members with disabilities or those who do not speak English.
An Additional TDD Phone could be considered for Financial Services area to better assist deaf members.
A Wheelchair in the Main lobby could help members who have difficulty walking or standing for long periods.
Flex Scheduling Options could help employees who are parents, students, etc.
College & High School Recruitment efforts help attract a diverse work force.
Web Site Employment Applications could help attract a diverse work force.

Section 5: Commitment to the Credit Union Movement

Mazuma Credit Union will work to build and strengthen a unique credit union movement by providing financial and in-kind resources throughout the credit union community, and by actively advocating the credit union difference at all levels of government and in other appropriate public forums.

Current or Existing Programs:

Leadership Roles - Mazuma's CEO is the past Chairwoman of CUNA. It's VP of Operations is the past Chapter Chairwoman, and its Controller is currently the Chapter Treasurer. The VP of Lending serves on League and CUNA committees relating to loan needs for low to moderate income members.
Shared Branch System - Mazuma participates in the League's Shared Branch System, and operates its Gladstone facility as a shared branch for other participating credit unions, at no cost to those members using it.
Surcharge Free ATMs - Mazuma's ATMs are available to consumers, including other credit union members, without a surcharge.
Small Credit Union Program - The credit union participates in the League's Small Credit Union Program, and donates excess equipment to small credit unions.
Political Activism - Participation in lobbying efforts, election campaigns, and fund-raising efforts for political action for credit union supporters is encouraged of management, staff and volunteers. Educating legislators about the credit union difference is a major focus of these efforts.
International Credit Union Day - Newsletters, news releases, flyers, posters, and food are all used to increase members' awareness of the credit union difference during International Credit Union Day.
Internships - Paid summer internships are provided to local students to acquaint them with a credit union environment and to encourage them to look to credit unions as future employment opportunities.
Staff Education - Continuing education through STAR and MERIT are used to keep staff knowledgeable of the credit union difference. In addition, Mazuma pays for post-high school education so that employees may further their careers in the credit union.
Filene Research Institute - Mazuma is a "Leadership Circle Member" of the Filene Research Institute and annually provides monetary support for research projects of interest to credit unions.
Sharing Ideas & Training - Mazuma shares operational ideas with other credit unions through networking opportunities and media articles. It has also invited other credit unions to attend its training programs at no cost.
PAC Fundraisers -Mazuma hosts lunch or breakfast with legislators for employees, volunteers, and members to attend with a PAC contribution.
Deduct-A-Buck - Members donate funds to PAC quarterly through a check-off request.
Career Questionnaire - Helps to determine employees area of interest and further their credit union careers.
Serve as Host Credit Union for a Chapter meeting.

New Program(s) for 2000: No new programs planned.

Section 6: Public Service/Corporate Citizenship

Mazuma Credit Union will strive to be an active partner in the community and field of membership, and will work to enhance their economic and social well-being.

Current or Existing Programs:

KC Keys - Mazuma provides funding and staff resources to further the Keys focus on education, as well as sports, to youngsters in the mid-town area.
Children's Miracle Network - Mazuma participates in the League's fundraising efforts for CMN.
Junior Achievement - Mazuma is participating in the Junior Achievement Programs at Hartman Elementary School and Center Middle School.
HeARTS Reading Program - Mazuma is participating in Hartman Elementary School's reading program for kindergartners and first graders
High School Partnerships - Mazuma partners with Southeast H.S. and Lee's Summit H.S. to teach young adults how to manage money.
Flu Shots - each year flu shots are provided at no cost to employees and volunteers, and at minimal cost to their family members.
Chambers of Commerce - Mazuma is a member of the Greater Kansas City Chamber, the Lee's Summit Chamber, the Northland Chamber, the South KC Chamber, and the Black Chamber. The credit union participates in many chamber sponsored community events. The President sits on the State Affairs Committee for the Greater KC Chamber.
Canned Food Drive - Mazuma sponsored a canned food drive and toy drive for community groups.
Breast Cancer Awareness - Mazuma participated in Denim Day and donated money to breast cancer awareness.
Brush Creek Community Partners (BCCP)- Mazuma is a member of BCCP and sits on a number of committees.
Boys & Girls Club - Mazuma provided educational sessions to youth at Boys & Girls Club.
Fire Drills - For employee safety and awareness, Mazuma provides annual employee fire drills.
Good Community Member - Mazuma participates in many community events through sponsorships or donations to demonstrate its community involvement.
Voter Registration Table - Mazuma hosted a voter registration table in August.
Encourage Voting - Mazuma provides employees with flex scheduling during voting days to encourage their participation.

New Program(s) Planned for 2000:

Boys & Girls Club Branch - Investigate on site branch options.
CPR - Investigate offering CPR classes to staff.
Career Fair for teenagers in area.
Financial Literacy Seminars for midtown area.
Partner with SEGs for political and community involvement opportunities.
"Financial Papers" is KPRT-AM radio's Teen Talk Program which provides financial commentary for teenagers. Mazuma will provide the written commentary.