This section should identify the financial services needed by potential members and the services that are planned for the credit union. Based on the results of the membership surveys and available capital and funding, identify the products (such as loans and shares) and services (such as money orders, wire transfers, notary service, debit/ATM cards) to be offered in the first two years and the timing of when they will be made available (upon opening, within 6 or 12 months, end of Year 1 or 2). The offering of products and services at the commencement of operations should be based on what is realistically possible for a newly chartered federal credit union with possibly limited income capacity and resources.
Discuss in detail the terms, conditions, and use of third-party vendors for products or services offered in the first two years. Discuss the due diligence review performed for each vendor and state why the vendor was selected. Obtain written proposals from the vendors with the costs (flat fees and per transaction costs) to use their services. This section should also discuss the per transaction and aggregate maximum dollar limitations placed on each product and service. A summary table like Table 1 should be incorporated into the business plan.
Table 1: Summary of Products and Services
| Product/Service | Start Date | Terms | Individual and Aggregate Limits | Third-Party Vendors |
|---|---|---|---|---|
| Regular Shares | Immediate | 0.25% Dividend, paid quarterly |
Individual $250,000 or insured limit; Aggregate – None |
None |
| Direct Deposit | 6 Months | Free | None | ABC Corporate Credit Union |
| Share Drafts | See Benchmark | 0.0% Dividend; See Fee Schedule |
None | ABC Corporate Credit Union |
| New Auto Loans | See Benchmark | Rate = Average of 5 CU Competitors; 60 Month Maximum Maturity |
Individual $5,000; Aggregate the lesser of $500,000 or 40 percent of total loans. |
None |