ROCKVILLE, Md. -
Raymond Holt Jr., Energy Federal Credit Union, Rockville, Md.
Small credit unions still have reason to be part of the financial services landscape because of the services they offer, but only if those credit unions can remain financially solvent and service-oriented.
That's been a guiding philosophy throughout Raymond Holt Jr.'s 22 years of service as board member and chairman of Energy Federal Credit Union. But that survival must be measured by objective, and not sentimental standards, said this year's winner of NAFCU's Volunteer of the Year in the assets less than $150 million category.
"If you can maintain a small credit union without getting into trouble, then it should continue to exist," said Holt, who spent eight years as board chairman for the $97-million Rockville, Md. institution. "But are you serving your members? That's the question to ask."
Unlike some volunteers, Holt is able to measure service levels not only in terms of member satisfaction, but also in the financial stability they bring to the credit union. A former banker, civil servant, accountant and auditor, Holt earned an accounting degree, then a masters degree in financial management from the former Benjamin Franklin University, now part of The George Washington University, in his native Washington, D.C. Stints in the U.S. military and Unites States Postal Service preceded four years as accountant and auditor with Riggs National Bank, D.C.'s largest financial institution.
"I've been able to use that audit experience on behalf of the credit union even today," Holt said. "As a board member, I can be involved and also informative as to where the credit union was trying to go."
After Riggs, a position Holt left in 1978, the former credit union chairman next became the revenue auditor for Montgomery County, Md., followed in 1979 by an extended tour of duty in financial positions for both the U.S. Department of Energy and the Nuclear Regulatory Commission, Energy FCU's two primary select employees groups. Holt retired from the Commission in October 2003, but not from the credit union.
"I joined the credit union's supervisory committee in 1986, then ran for the board in 1987," Holt said. "I plan to retire from the board after 23 years of service."
During those years, Holt saw the institution grow from $44 million in assets to $106 million, only to drop back to the current figure of $97 million largely due to employment changes and retirement of federal employees from its two primary SEGs. Assets are once again on the rise, and Holt would like to see that growth continue. However, new services and increased use of automation in service delivery will be necessary for Energy FCU to maintain a competitive edge, he said.
"We have to consider ourselves a worldwide institution now as members continue to retire," the former chairman said. That will mean offering those members a wider range of services, automated delivery methodologies and other things that small credit unions sometimes find it hard to manage, he added.
The most recent debate centered on automated bill-pay services, which members began requesting and which Holt knew other area financial institutions were offering. The ability to offer those services free-of-charge remained the focal point of extended debate, which delayed service launch for some seven years. Holt sees the service, along with several others, as investments in the credit union's future.
"We're testing [automated bill-pay] now and the service will be free," he said. "This will help us maintain our membership base and attract new, younger members."
Energy FCU also is working with the underserved to make sure members of that community have access to services. The credit union created a payday lending program designed to combat the high rates charged by check-cashing shops and keep current and potential members from being "gouged." The program has attracted national attention and honors, helping support the institution's member-service profile while setting the stage for future growth critical to credit union future growth.
"Each member is different, but they're all part of the whole," Holt said. "You have to look out for the welfare of members as a whole if you want the credit union to survive."
