Market Disruption

Inspiration

Instigation

Innovation

Transformation

THE POWER OF TOGETHER

MAGIC SHOW

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

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

Play the Andrea story

The steps to transformation

Inspiration

Instigation

Innovation

THE POWER OF TOGETHER

Disruptive InnovationClay 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

Take Clay’s book – Seeing What’s Next 

LEVERING THE MARKETPLACE   Inspiration

 Instigation

Innovation

THE POWER OF TOGETHER

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

McPlasticAn example 15 years in the making

THE POWER OF TOGETHER

Credit acceptance in QSR

2 Patents Feb 15 1994

Cute little box

Industry Transformation

Explosive Transformation

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 ThruInnovation

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

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?

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 

THE POWER OF TOGETHER

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

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

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

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

Access to Education

GED, ESL

Tech Training, Community College

Mentoring

Financial and Family Stability

Why AMFAM works

THE POWER OF TOGETHER

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

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

Footnotes 

Walmart

# of unbanked