VANCOUVER, Wash.-After three weeks at iQ Credit Union here, Walter Melendez has plenty of ideas for how to improve CUs in his native Costa Rica.
Melendez was one of several Costa Rican CU professionals who recently wrapped up three-week internships at American credit unions through a program run by the World Council of Credit Unions (WOCCU). Melendez serves as marketing manager at Coopealianza in San Jose, Costa Rica (see related stories, page 16).
While he was surprised by the strong sales culture at iQ, what stuck with Melendez the most was shared branching-a concept he planned to take back home to Costa Rica. He explained that shared branching could help CUs better differentiate themselves from the banks in his home country, while also providing a necessary service to Costa Ricans. Melendez said that despite the nation's smaller size, Costa Rican CU members move around as much as American CU members-but they lack a way to effectively move their money with them.
Melendez said he hopes to present the idea to FEDEAC-the Costa Rican CU association-with the possibility of developing the concept in the country.
One of Melendez's goals with the WOCCU internship program was to get a better understanding of technology at American CUs and the role it plays here. He specifically pointed to items like cash recycler machines as items that aren't currently available at Coopealianza, but said that he hopes the CU can bring them online within the next few years.
Lessons In Referrals
"Another thing that's important for us is that here at iQ they have different plans for referrals and loans, so it's a great culture for sales," explained Melendez. "With that knowledge, I think we can improve the referrals and the lending at my credit union."
Aside from shared branching, sales cultures and an increased reliance on technology, Melendez pointed to a number of differences between U.S. and Costa Rican credit unions. CU board members there can be paid, while the position is still widely a volunteer one in the U.S. (though Tennessee and Washington recently passed legislation to allow board members to be paid). Additionally, Costa Rican CUs don't do much of their lending online, so the branch network plays a larger role.
Despite all that, plenty of similarities remain: credit unions in both nations face stiff competition from the banks (which are regulated in Costa Rica by the same agency that governs CUs there). And, said Melendez, "We focus on our members the same as they do here."
