6. Case Study 1
Credit Union Program Results
Item # Cost Per
Credit Union
Pre‐Outsourcing
Costs # Cost Per
Outsourcing
Partner Results
Managers ($45,000 Annual + benefits at 25%) 1 $ 56,250 $ 56,250 1 $ 56,250 $ 56,250
Supervisors ($15.00/Hour + benefits at 25%): 2 $ 39,000 $ 78,000 1 $ 39,000 $ 39,000
Collectors/Admin ($12.50/Hour + benefits at 25%): 8 $ 32,500 $ 260,000 0 $ 32,500 $ ‐
Other Office Expenses*: $ 90,000 $ 10,000
Total FirstBank Office Expenses $ 484,250 $ 105,250
Outsourcing Fees (Pre‐collect) $ ‐ $ 120,000
Estimated Contingency Fees (@22%): $ ‐ $ 397,848
Total Outsourcing Costs: $ ‐ $ 517,848
Total Cash Out: $ 484,250 $ 623,098
Cash Generated on Overdraft Accounts $ 1,320,000 $ 1,808,400
Cash Generated on Loans $ 480,000 $ 628,800
Total Cash In: $ 1,800,000 $ 2,437,200
Net Cash Impact: $ 1,315,750 $ 1,814,102
7. Case Study 2
Item # Cost Per
Credit Union Outsourcing
Costs # Cost Per Credit Control Return
Manager ($45,000
Annual + benefits at
25%) 1 $ 56,250 $ 56,250
Supervisors
($15.00/Hour +
benefits at 25%): 1 $ 39,000 $ 39,000
Collectors/Admin
($12.50/Hour +
benefits at 25%): 2 $ 32,500 $ 65,000
Other Office
Expenses*: $ 60,000
Total Credit Union
Office Expenses $ 220,250
Account
Outsourcing Fees
(@6.50 per
account): $ 13,000
Total Outsourcing
Costs: $ 156,000
Total loans
outstanding as of
December 2012 $ 105,289,127 $ 105,289,127
Delinquency
(1.8%) $ 1,895,204 $ 992,644
Increase cash
back to Credit
Union $902 560
8. Key Performance Requirements
Operations
• Manages turnover
• Experienced employees
• Proper employee screening
& training
• Monitoring, recording, and
call analytics
• Respectful of your members
• Strong financial controls
Client Services
• Robust Onboarding
Process
• Dedicated Client
Services Team
• Single Point of Contact
with industry expertise
• Risk Matrix for legal
escalation
• Reporting/Measurement