EL SEGUNDO, Calif. - When Teresa Freeborn discusses developing a new business model at the Credit Union Journal’s Grow Show, she will be speaking from practical and current experience.
That’s because the president and CEO of Xerox Federal Credit Union will be leading a name change to Xceed Financial Credit Union on March 31. The CU’s management recently hosted an event to get employees excited about the new brand, which is aimed at letting Xerox FCU’s other 150 select employer groups know they matter, too (CU Journal, Feb. 25).
“This is not an easy time to be running a credit union,” Freeborn told Credit Union Journal. “Everyone is in the same boat wondering, what does one do? What we are doing at Xceed is kind of radical. We have to reinvent ourselves, because business is not as usual. Calling yourself Xerox Credit Union is not going to cut it.”
According to Freeborn, management at Xerox FCU looked at the credit union from “absolutely every angle” in order to form a new perspective.
“The vision is to be the workplace credit union. We are not a community credit union; we are going to service the needs of businesses. That is where we think we can excel. Not everybody wants to do that.”
Xerox/Xceed has 150 employer groups in seven states. Freeborn said business development and interacting with SEGs and their liaisons are very important, and noted that the CU has made a serious commitment to this endeavor–as evidenced by its eight dedicated business development officers.
“One of the keys to my presentation will be talking about the rebranding effort. But I will give people a view of a credit union that is hitting on all cylinders,” Freeborn promised. “There is no silver bullet; there is no single thing that will ensure your survival.”
Freeborn’s presentation will open with an overview of which types of credit unions will survive and thrive in today’s market. She will discuss which factors need to be in place to support sustained growth. Freeborn believes there are four cornerstones to growth: branches, small business products, business development, and a solid name and brand strategy.
She will close the presentation with a professionally produced, four-minute “brand video.” The video was shown to Xerox/Xceed’s associates to help them become advocates of the new brand.
“We have chosen to have this vision, we’ve fired up the troops, given them a new brand and name, and we have a branch growth strategy,” said Freeborn. “Unless we do the whole thing, it won’t work. We have to be willing to hit on all of these and do extremely well. This isn’t for the faint of heart.”
The credit union spent an estimated $130,000 to $140,000 for the event plus the brand video. Freeborn and others in management insist the risk and the investment are worth it.
“We are in red ink, but we are deliberately in red ink. We will be in red ink until 2009, but we are well capitalized and it is time to invest in our members.”
