# Presentation: 355301

## Market Disruption

**Inspiration**
**Instigation**
**Innovation**

- Transformation

- THE POWER OF TOGETHER

## MAGIC SHOW

**Notes:**
Rabbit graphic 

## From Burgers...

- Innovation got me press
- 3 patents
- Chaired the innovation team for McDonald’s
- Involved in every innovation with McDonald’s in the last 10 years
- The mentality had to change
- Press got me in “The World is Flat”
- NYT, WSJ, AP, Bloomberg, USA Today

- THE POWER OF TOGETHER

## To Bankers

- Lead to America’s Family
- Necessity is the mother of invention
- Fortune off the backs of them
- Employer based model
- Tremendous traction
- Sticky surface is CAPITALIZATION

## To the Working Poor

- 9 reasons

## 9 reasons

- 1-5 – kids
- 6. Pancakes for dinner
- 7. Fortune on the backs of them
- 8. Nothing American about working hard and being poor

## #9

- "This same road has opened for all Americans a new era of progress and hope. It has led to a new civil rights bill, and it will, I am convinced, be widened and lengthened into a superhighway of justice as Negro and White men in increasing numbers create alliances to overcome their common problems.

- THE POWER OF TOGETHER

## American dream scorecard 1970-2003 

- Poverty / child poverty / dist of wealth
- Average net assets / readiness for retirement /econ. mobility
- grad rates / achievement test scores
- college matriculation compared to others

- college completion by income
- health ins/ 2 parent families / asthma / obesity
- parent in prison and violent crime
- ANYONE happy with this progress

- THE POWER OF TOGETHER

## How to

- Harness innovation, technology and entrepreneurial spirit to
- Inspire
- Instigate
- Innovate
- And ultimately GRADUALLY Transform the nation

- THE POWER OF TOGETHER

## 
4X more expensive 
to be poor

8.7% of all US families (slightly less than 10 million families) do not have a checking or savings account

- 4X more expensive
- to be poor
- 8.7% of all US families (slightly less than 10 million families) do not have a checking or savings account

- THE POWER OF TOGETHER

## Payday Costs

**Current Costs****	****	****	****Yearly (24 Pay Periods)**
***Cab Fare******	******	*****$54.00*****	******           (Could get a ride)******	***
***Lunch for Kids******	*****$10.20*****	******           (Without feeding the kids)***
***Check Cashing******	*****$20.25****	*****	******	*****   $486.00*****	***
***Money Orders******	*****$3.95*****	******	******	*****               $94.80**
***Money Wire******	*****$16.99*****	******	******	*****   $407.76**
***P/U Money Wire******	*****$25.00*****	******	******	*****   $600.00**
***Total Yearly Cost:  *****$3,129 total****	**** ****$1558 in fees**
***AND She spent THE ENTIRE DAY****** ***

- THE POWER OF TOGETHER

**Notes:**
Play the Andrea story

## The steps to transformation

- Inspiration

- Instigation

- Innovation

- THE POWER OF TOGETHER

- Done!

## Disruptive InnovationClay Christensen

- Introduce a New value Proposition
- New Market (Kodak Camera / Xerox / E-bay)
- Key – Bring Consumption to Non consumers
- Bring banking to the un-banked
- This new model will use these principles

- THE POWER OF TOGETHER

**Notes:**
Take Clay’s book – Seeing What’s Next 

## LEVERING THE MARKETPLACE   Inspiration

** ****Instigation**

- Innovation

- THE POWER OF TOGETHER

**Notes:**
Couldn’t buy dinner for my kids
Didn’t have $ on me
Lots of guests shared desire!
Industry experts – Said never
Customer – Said now
The moral of the story – the customer ALWAYS gets what they want
Will you be the one giving it to them?

INSTIGATION
What’s out there
Don’t always reinvent the wheel
I took two existing items and married them
Tip edit
NDC - Bob
Full service software
Hardware
Omron – Bruce
“Instigated” them into solution

INNOVATION
Anyone can do it!
I was in a 25k restaurant manager position
Flippin burgers
500k and 5 prototypes later
Combine
McPlastic – There u have it
2 patents and over a decade later
McD 95%+ others over 70%
Restaurants accept
1 of my stores –over 100,000 tcs /yr

## McPlasticAn example 15 years in the making

- What CAN
- Happen!

- THE POWER OF TOGETHER

**Notes:**
Credit acceptance in QSR
2 Patents Feb 15 1994
Cute little box
Industry Transformation

## Explosive Transformation

**Notes:**
Card Acceptance
93,000 QSR’s in US
McD 95% accept
1 of my stores –over 100,000 tcs /yr
Less than 1b in 97
10b in 03
13.7b in 04
Nearly 20b Today!

## Transformation ThruInnovation

- EZ Bank

- THE POWER OF TOGETHER

## EZ Bank

- Inspiration
- No one wants the unbanked - Clay
- MLK Nobel Peace Speech – Anybody happy?
- Instigation – what’s out there
- Companies with employees
- Cash – Deposits
- AF
- Technology
- Innovation – EZ Bank

- THE POWER OF TOGETHER

**Notes:**
Instigation
Speak about tools, inspire employees to the BIGG vision
They buy in and solve the challenges

## Companies

- McDonald’s
- AUV – $2.1mm per location
- 14,000 US Locations
- All A real estate
- Over 650,000 hourly staff
- $86,661,157 average DAILY Deposit
- No need for a local Bank

- WalMart
- AUV - $97 million
- 3,189 US locations
- Not A real estate
- Over 1.5 million hourly staff
- $852,157,000 average DAILY deposit
- No need for a local Bank

- THE POWER OF TOGETHER

**Why not use these deposits for a day?**

**Notes:**
Add Walmart

## Technology

- Similar to V-Com
-    in 7-11 stores – fees a fraction of the cost
- Entry level bank
- NO BANKING PARADIGM
- Located where they are
- Scalable cost

- THE POWER OF TOGETHER

## Bridging the Gap 

**Banked**

**Un-Banked**

- TRUST

- THE POWER OF TOGETHER

- The Coalition

## Long-term EZ Bank Model

- AMFAM manages the relationship between the employer and the bank
- AMFAM helps the employees with counseling, loan programs, and other AACTS
- Once the employee becomes “bankable” we help transition the employee to a traditional local banking partner

- THE POWER OF TOGETHER

## Payday After EZ Bank

***Gas for Vehicle*****	****$5.00**
***Kiosk Fee*****	****	****$1.50**
***Bills******	*****	****	****$2.50**
_**Overseas  Transfer $1.50**_
**$10.50 x 24 Pay Periods = $250 **
**Fees = $130**
**(A difference of up to $2,999 annually)**

- THE POWER OF TOGETHER

## A

- dvocacy
- Partner to Success

- Hard Work  -  Education  -  Relationships

- THE POWER OF TOGETHER

**Notes:**
The Box You Got
Celebrity Partners 
Daryl Simmons, Mike Minter, Fisher DeBerry
Giving Voice to the Unheard
Helps to scale nationally

## A

- ssociation
- Connect to Success

- Hard Work  -  Education  -  Relationships

- THE POWER OF TOGETHER

**Notes:**
GRAMEEN Model
Leverage Community
Business 2 Business 
Existing Resources 
Connecting the Dots 
Helping to Bridge the gap for hard working Americans
Networking in small groups
Rides
Childcare
Shift coverage

The tech aspect
Cell phone use for bill paying, etc. 

## C

- apitalization
- Access to Success

- Hard Work  -  Education  -  Relationships

- THE POWER OF TOGETHER

**Notes:**
Access to resources
Financial Literacy
Available in English and Spanish
Interactive Counseling program in person and online 
Low Interest Loans for:
Lines of Credit
Car Loans
Consolidation Loans 

## T

- ransportation
- Transport to Success

- Hard Work  -  Education  -  Relationships

- THE POWER OF TOGETHER

## S

- cholarship
- Teach to Success

- Hard Work  -  Education  -  Relationships

- THE POWER OF TOGETHER

**Notes:**
Access to Education
GED, ESL
Tech Training, Community College
Mentoring
Financial and Family Stability

## Why AMFAM works

- THE POWER OF TOGETHER

**Notes:**
Our employer based relationship works because
We speak “employer”
We understand their needs
We have 100 years of operations experience
We introduce a “community based” model for the employer

## Back to the beginning

**Notes:**
Table Analogy
Another meeting?
Will you remember this meeting? 

## Questions?

- THE POWER OF TOGETHER

## Content Plus

- Website –  i3cms.com / Theboxyougot.com
- Steve Bigari – “The Box You Got”
- Theboxyougot.com
- Clayton M. Christensen – “Seeing What’s Next”
- Thomas L Friedman – “The World is Flat”
- Footnotes
- ETA 2005 Annual Meeting and Expo. (Mar 05)  Fast Food Solutions on a Fast Track:  An Industry Update on QSR.  By Gary Holmes (Sr VP First Data Bank) and
- Paul Bazylak (VP of Merchant Relations, Visa USA)
- Visa Takes Bite Out of Small Ticket Payments (Sep 06).  By Dori Busell and Emily Collins, Visa USA
- 2004 Survey of Consumer Finances
- www.mcdonalds.com
- www.walmart.com

**Notes:**
Footnotes 
Walmart
# of unbanked