During the summer of 2016, Boeing Employees Credit Union (BECU), the $15.7 billion institution based in Tukwila, Wash., took the unusual step of bringing its
In some ways, the gesture was symbolic, as many credit unions require a nominal deposit from members to join –often as low as $5, $10 or $15.
Still, given BECU's prominence and size, the new policy – whereby people can attain membership in BECU without having a funded share account – was significant. Interestingly, the change did not impact the voting or ownership structure of the credit union – all members remain owners with one vote each, even if they have a zero balance in their accounts.
So how has the zero-balance policy worked out for BECU over the past six months?
Stacey Collins, director of experience design at BECU, who led the team that initiated the change, said the move has been a successful one.
"We prepared ourselves for some downward pressure on utilization of accounts when we removed the $5 requirement, and it turned out to be a non-issue," she said. "Our new members are depositing and using their accounts within the first 30 days of membership at a slightly higher rate than before."
BECU's existing members, she added, have embraced the new policy and have even used social media to show their gratitude about having their $5 back.
Collins also noted that the credit union has increased its membership since the new policy was enacted: BECU saw its membership climb by more than 20,000 members since the program was put in place (from 971,328 in June to 992,680 by the end of November).
But she doesn't attribute it to the zero-balance policy.
"It's really our strong reputation and positive word- of-mouth that has contributed to our membership growth," she commented. "Our intention with removing the [share fund] requirement was simply to make it easier for prospective members to join BECU and provide greater flexibility for money management by allowing members to fund their new accounts when they were ready. We've found most new members make an initial deposit at the time of joining."
Follow the Leader?
As a state-chartered credit union, BECU does not have to follow the rules of federally chartered institutions as mandated by the National Credit Union Administration (NCUA), wherein in order to be considered a full member of a federally chartered credit union, a person must have an account with a minimum balance at the credit union – one of the key membership requirements.
But according to the compliance department at the Northwest Credit Union Association (NWCUA), in the state of Washington, state-chartered credit unions are not required to charge a membership fee or require a share account. "It will be dependent on each credit union's individual bylaws, but as long as the member meets the membership requirements [as] laid out in the bylaws for the credit union, they can join the credit union," NWCUA said.
Collins indicated that some other credit unions are waiving their fee requirements for new members, but few are releasing the share requirement dollars for their existing membership.
For example, Spokane Teachers Credit Union (STCU), a $2.4 billion institution based in Liberty Lake, Wash., has a new program whereby the standard $10 membership fee is waived when new members join online.
In addition, the $9.4 billion Alliant Credit Union of Chicago has instituted a service where new members can open a savings account for only $5 – and Alliant pays for it. (The minimum balance to keep the savings account open is $5.)
But BECU's policy is still rather unique.
"We've found that our members value their membership beyond the $5 share [that they] hold," Collins added. "They participate by utilizing product and service solutions we have that bring them value in their everyday lives."
