Credit Union Management

The most difficult lesson learned by a VP/marketing of First Technology Credit Union was not about their cool online banking products but about the people they served. Literally every credit union was a brand extension of the post office, the railroad, the high school and the mill. The credit union was an employee benefit marketed by the human resources department. The credit union's brand was as strong as the company or group they served. And that is where their brands started to erode. Ther...

Management Network

Branches for the Hispanic Community

Opening a new branch often symbolizes that your credit union is expanding. One type of growing market is the Hispanic community. In large cities the Hispanic population may be upwards of 30% to 40%, says Black Diamond Concepts Hispanic. With a metro area population that is nearly 30% Hispanic, Denver Community FCU has found tremendous success in its targeted branch. Two hundred fifty-three new memberships were acquired in the first month and the branch has a higher checking penetration rate t...

Moving Out to the 'Burbs

If you have a growing credit union and are wondering where to place your next branch, consider setting up in the suburbs. The $367 million, 46,000-member AMOCO Federal Credit Union, League City TX, is working with NewGround, a design/build, branding and retail services firm for credit unions, to establish a new branch in the residential and business community of Bay Colony. The Bay Colony branch will be visible from a nearby interstate highway and accessible to Bay Colony residents, yet centr...

Insights

Open Forum

Death in the Family

Dealing with death is an unfortunate reality of the workplace. The death of an employee, regardless of the circumstances, is a severe blow to any organization. Susan Vuong, EVP of $37 million PrimeSource Credit Union, with 5,400 members in Spokane WA, recalled an employee death that was both violent and public, and thus came with its own unique challenges. Carolyn Drake, EVP at $422 million Fort Knox Federal Credit Union, with 77,000 members in Fort Knox KY, recalled a time when her CU was hi...

General Management

Controversial Course

Credit unions have changed a lot in the decade since the National Credit Union Administration (NCUA) revised its rules and regulations after the passage of H.R. 1151 and opened up more flexible growth opportunities for credit unions. The passionate debate that has circled around these basic issues, especially in the past year, is one of the biggest risks credit unions seriously considering the conversion option face right now, stresses Attorney Rich Schaberg, a partner with Thacher Proffitt, ...

In the Cards

PEMCO Technology Services Inc, Seattle, specializes in providing credit unions with the technology and systems to assist members and more. The Credit Union Executives Society (CUES) recently named PEMCO the CUES Financial Suppliers Forum 2005 Supplier of the Year for companies with 76-100 employees, recognizing the company for the Visa, Master Card and ATM processing services it offers CUs. According to CEO Dan Cook, one of PEMCO's goals is to consistently deliver the latest technology to its...

Visionary Leadership

You have likely heard a lot about vision and mission, strategic and scenario planning. Three credit union executives share what they learned during CUES' CEO Institute. Julian Gee, co-manager of A/C Credit Union, said the session was an interactive one in which the class was presented with factual situations and challenge to predict the outcome. Alan Cortum, EVP of Pyramid Credit Union, said that the session on leadership and decision-making has helped him expand his approach to leading peopl...

This Space for Rent

Building a new credit union facility is a little like the tale of Goldilocks and the Three Bears. Certain building plans are too small; others are too big. In some cases credit unions tend to under-build, says Paul Seibert, CMC, principal at Emick Howard & Seibert Inc, a member of CUES Financial Suppliers Forum based in Seattle. Building a lot of extra space can be a bit of a risky proposition. Sometimes the wisest course is to split the difference: Maybe build for 10 years and have enoug...

Human Resources

Handle with Care

Consider the increased complexities and anxieties that accompany the move from one credit union location to another, whether moving corporate headquarters, opening a new branch or moving to an entirely new facility. Careful planning, attention to detail, involvement of staff and plenty of communication can make the difference between a smooth transition with a minimum of disruption to members and staff and a stress-filled, service-impacted nightmare. Georgia Federal Credit Union and Space Coa...

Board

Off the Carpet

The dispute seemed impossible to resolve. After 40 minutes of intense debate, the board reached a consensus on the color of the carpet in the credit union's new branch. Boards have the most tendency to micro-manage when it comes to building new facilities, says Consultant Anthea Radford, president of Arjane Governance Group. Many people do not realize that making a change in a building may have a domino effect, making it necessary to make many other changes. While many directors and CEOs have...

Priceless?

While many credit union (CU) boards across the US continue to hold their unpaid volunteer status as a distinction that sets them apart from banks, some executives and directors foresee compensation as an issue that may be revisited in the near future. Beyond life insurance coverage for travel related to credit union business and payment of expenses related to education and conferences, directors are not paid for their time. Responding to the likelihood that compensating directors would make i...

Operations

Cashing Out

The signs of a cashless society are everywhere. Cashless branches are not new. In fact, some credit unions have had cashless branches for decades. The automated options credit unions use for cash dispensing range from basic ATMs to remote teller systems that enable tellers to handle two remote windows at a given time, similar to the efficiencies of drive-up windows. Credit unions that operate cashless branches cite improved efficiencies and lower operating costs as chief advantages. Meanwhile...

Be Persistent

Collectors need the consistency of a bloodhound determined to follow a trail no matter how long, plus the persistence of a bulldog with a firm grip on the quarry. But there is some good news. The new Federal Bankruptcy Abuse and Prevention Act that takes effect Oct 17 is expected to help. Another option is outsourcing, such as that provided by Lending Solutions Inc. Credit unions simply have to be more diligent with indirect loans. Typically credit union collection managers handle some collec...

Best Practices

Special Project Strategies

Many managers find success with one-of-a-kind projects elusive, even when they are successfully achieving other objectives. Managers acquire business and technical skills as they progress up the career ladder. Yet effective project management requires a set of skills many managers have not -- and will not -- develop without specialized training coupled with hands-on practice. Using project management strategies, training project managers, and putting a project management culture in place must...

Marketing

On the Map

No single phenomenon highlights the contrast between banks and credit unions quite like shared branching. With shared branching on the rise, promoting your expanded service area to members is an ever more real and pressing challenge. Members who use shared branching generally represent a very desirable segment of the overall membership. So if shared branching attracts a desirable demographic, credit unions interested in that demographic should actively and aggressively engage in and promote s...

E-Marketing

E-Mail Service

Forrester Research's e-mail review methodology was applied to evaluate how large financial institutions respond to queries about checking account and credit card account recommendations. Interestingly, no firms passed the test. Citibank received the highest score out of six reviews: +4. Firms performed particularly poorly on three criteria: 1. E-mail dialogues lacked essential content. 2. Privacy policies were not clearly presented. 3. Message headers did not communicate value. Forrester reco...