RIVERSIDE, Calif. — As part of its pending merger into SchoolsFirst FCU, Service Plus Credit Union will close approximately 200 accounts held by student groups at the local University of California campus - and Altura CU has stepped into the breech.
Ricki McManuis, SVP of communications for Altura, said the $918-million credit union is more than happy for the opportunity to add groups of college-age, potential future members.
"We were contacted by UCR [University of California, Riverside] after the school was notified Service Plus was closing the accounts at the end of September," McManuis told Credit Union Journal. "We have club accounts that were specially created for non-profits, so we said absolutely yes. We are going to be presenting to all of those club leaders next week on why they need an account, how they should set up the accounts, and other Financing 101 details."
According to McManuis, the addition of the club accounts fills two purposes oft-discussed in credit union circles, financial education and reaching out to young people. "There are a lot of high school graduates who do not know anything about basic finances, because all they are taught is how to pass exams," she assessed. "For us, when we go in to do these workshops, the focus will be on why they need to open a checking account, why they need to have multiple signators, why they definitely should have their advisor be one of the signators, the importance of maintaining the account in good standing and more."
Some clubs incorrectly assume they can simply use a coffee can as a piggy bank, McManuis continued. "One of our colleagues here pointed out there needs to be a paper trail as many vendors do not take cash; they want a check for their paper trail. We offer online banking, so it will be easy for them to keep track."
Further, Altura sees this as a great way to attract future members, she declared.
"It is talked about all the time that Gen Y does not know credit unions, so this is an opportunity for us to be there and say who we are, what we do and how we do banking better than a bank. I'm excited to do the presentations."
There are approximately 300 clubs on the UC Riverside campus, and the school is hosting what is being called a "club retreat" that will take place over three days, Sept. 21-23. The first day will be fraternities and sororities, the second day will be cultural, religious and service organizations, and the third day will be recreation, academics and honors, and arts and entertainment clubs. McManuis will speak each of the three days. "On the Friday after the presentations, there will be a club block party, and we will be there giving out information along with Altura popcorn bags," she said. "We don't think we'll be opening accounts, but we will be promoting the credit union. Our branch is only two blocks from campus."
Thanks to loan losses and other factors that dropped its net worth to 5.29%, $84-million Service Plus CU and its 9,000 members will be merged into $8-billion SchoolsFirst FCU, based in Santa Ana, Calif., by Oct. 31. The decision to merge was done on an emergency basis on the recommendation of NCUA and the California Department of Financial Institutions in late August.
