NEW YORK - If Lower East Side People’s FCU didn’t offer financial services, passers-by in Manhattan might mistake it for a community center, says treasurer and CEO Linda Levy.
That’s what residents who frequent the credit union in this underserved area of New York say, Levy explained. “It’s a relaxed atmosphere. Members are always chatting with staff, and they just like the credit union a lot. It’s very comfortable and people feel at home.”
Being an approachable financial has worked with New York residents, whom Levy said have strong ties to their neighborhoods. It’s “timely” and an advantage over the big banks that are grappling for deposits with not a great deal of “warmth,” Levy reminded.
“Almost everyone who works in our branches, whether it’s Lower East Side or Harlem, lives in the community or used to live there,” Levy said. “Many times their job at the credit union helped them move out. But when people come in they recognize the faces of their friends.”
It’s not just the credit union’s friendliness that’s drawing member support. They recognize the CU is helping them stay in a neighborhood that’s quickly gentrifying, Levy said.
Partnering With A Local Housing Cooperative
LESPFCU has a financing arrangement with a local housing cooperative that’s allowing members to purchase a two-bedroom apartment for $2,500.
“It’s a program where we work with people who are living in a building that’s being converted into a low-income co-operative,” said Levy. “That’s a very low purchase price for an apartment anywhere, let alone New York City.”
Even with the low price, some members need additional assistance.
“We offer a home ownership individual development account,” Levy said. “They save $1,000 over a year’s time and we match it. We can make home ownership a real possibility for low-income people in New York City.”
While it’s a community development CU, the $21-million LESPFCU has grown to offer a full range of services – even auto loans, of which it’s made five since the credit union opened in 1986. “Not a lot demand for cars here,” Levy added.
And it also offers home banking and electronic bill pay. “We have members in all five boroughs, and they asked for the services,” Levy said, reminding that no one escapes the city’s fast pace. “I’m not sure that many other community development credit unions would have felt the pressure we did to offer the services. That’s New York.”(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
