MOLINE, Ill. — DHCU's decision to rebrand to Vibrant CU is one name change that isn't merely skin deep.
Beyond the cosmetics of changing the CU's name, the rebrand is but one part of the $502 million credit union's goal of revolutionizing how it does business, with a principal focus on enhancing "member experience" to attract new ones.
Vibrant CU CEO Matthew McCombs told Credit Union Journal the 80-year-old credit union is also in the midst of upgrading its technological infrastructure, including converting to a new core processor. These nuts-and-bolts improvements, along with the new name are all geared toward making a trip to one of Vibrant's branches a fun experience for members, he said.
"For example, during March Madness [NCAA college basketball tournament], we had balls and baskets for people to shoot some hoops in our branches," he said. "We're committed to good member service and improved personal interaction between members and employees, and even between the employees themselves."
In addition, DHCU branches even feature cookouts, sing-alongs and musical concerts to keep the membership relaxed and entertained.
But it's not all fun and games — the key to a stronger credit union, McCombs said, was increased and improved service. "In that vein, we look at all of our employees — from the top executives to the tellers — as 'salespeople.'"
That approach has helped increase the number of products and services the average member household uses from about 2.2 to 2.53, McCombs cited.
During McCombs' four-year tenure at the credit union, its financial health has improved dramatically. In 2011, he noted, DHCU had a loan-to-share ratio of 56%--now that figure has soared to a more respectable 95%. Meanwhile, the credit union's loan volume outstanding has surged from $250 million to more than $400 million over that same period.
"When I came here in 2011, the credit union's income stream had dropped, and the loan business was in dire straits," he said.
One major change in business strategy that McCombs undertook involved the cancellation of the indirect lending program and focusing on its direct consumer portfolio.
"As our business model shifted to a member experience focus, we evaluated all aspects of the indirect program," McCombs explained. "Although [indirect was] a large percentage of our balance sheet, we determined that the overall profitability and control of member experience did not align with the direction of the credit union. Removing ourselves from that channel was both a significant shift in strategy as well as a change in the business partnerships we had formed over the last few decades. "
The final move away from the indirect channel, he added, allowed the credit union's retail team to "focus exclusively on serving our members through our delivery channel and has resulted in significant growth in our direct member business."
However, McCombs noted, it did have to accept there would be significant runoff within the indirect channel and "are proud of our ability to grow our overall auto and loan portfolio during this transitional time."
In addition, DHCU has made a concerted effort to attract younger members — and the technological infrastructure and easier-to-use website played a big part in that endeavor.
Now, as a beacon for the future, Vibrant plans to open three new branches this year and two or three more annually for the next several years, he said.
Vibrant was no stranger to name changes. It was one of several credit unions serving various aspects of Deere Harvester that was asked by the original sponsor company to remove references to John Deere and/or Deere Harvester from their names.
That led to the CU, which converted to a community charter but still counts current and past Deere Harvester employees among its membership, to change its name to DHCU.
But its community charter allows the CU to serve people throughout the Quad Cities area of northwest Illinois and southeastern Iowa, and the time had come for a name that would reflect that shift.
In connection with the name change, the credit union's website officially switches over to www.vibrantcreditunion.org May 4.
