INDIANAPOLIS, Ind.-Roger Youngs, CEO of Finance Center FCU, attributes community outreach as the reason the $379-million CU won NAFCU's Credit Union of the Year award for CUs with more than $150 million in assets.
This past year, the credit union focused on reaching out to the Hispanic community and youth markets. "In the Latino community, we have attended all the events they had," Youngs said. "Serving the Latino market is very difficult to do. You have to be out there all day every day. You have to be consistent on a daily basis. And we are bilingual in every department."
In an effort to reach the youth market, Finance Center FCU opened three branches in local high schools. Each branch has a CU supervisor, however most of the work at the credit union is done by the students. "We require the students to go through financial literacy training," Youngs said. "They are the tellers. They open the new accounts. They do it all."
Youngs said the CU has seen a slow and steady growth from these branches. "We're starting to see administrators and teachers joining them," he noted.
Pregnant Teen's Poignant Story
In one of these branches, a pregnant student needed to discontinue her part in the program about two-thirds the way through. After summer break, she called the credit union to thank them for the opportunity.
"She said 'I can't thank you enough for the classes,'" Youngs said. "She said that she managed to save $1,000 over the summer, even with a baby. She said 'all my life until now I've been on some form of public assistance.' She now understands how to manage money. I was so moved. That branch paid for itself."
The third push, after the youth market and Hispanic community, is "top of the market customer service," Youngs said. Through these three focuses, Youngs said the CU grew deposits by 9% last year. "And we are on pace to at least equal that this year."
In addition, the CU's target for membership growth in 2009 was set at 3.83%."We reached that in June," Youngs said. "So we just issued a new goal, which will take us to about 8% membership growth for the year."
Finance Center FCU also began offering two new products during the past year. "One is an HSA program product that as far as I can tell is the best in the marketplace," he said. "Brokers are recommending it so now we are getting into companies now instead of just one at a time. The other product is a reward checking account with high interest."
"This account offers 4.51% on the first $25,000, as long as the member uses electronic statements, uses direct deposit or pays at least one bill each month electronically, and uses a debit card for at least 12 purchases."
Youngs said the CU has also done a "tremendous amount of coaching and training people. When making a change, your employees must first understand 'When? Why? And How?' Otherwise all they will focus on is the process."
In today's tough economic climate, Youngs said he really just reinforced what the credit union already had in place — that they are there for the members. "Sometimes the best thing you can do for a member is say no," Youngs said. "If they really don't qualify for that long, don't give it to them to be nice, and then bury them. We are here to improve their financial lives. As long as we do that, we are in good shape."
