BOSTON — Darren Williams, CEO of Wescom Credit Union, had a question for his audience.
"Does anyone remember Operation Moon Shot?" he asked CU Journal's Business Development & SEG Conference. Many in that audience were unsure of the reference. Williams explained the goal of Operation Moon Shot, launched in the 1990s, was 100 million American as credit union members by the year 2000. How outsized is that expectation compared to today's estimated 85-million member-figure six years later, he asked.
But some CUs have seen strong growth, including his own Pasadena, Calif.-based Wescom, which has experienced a 10-year annualized growth rate of 10%. Having gone through its own shocks, Wescom rebounded more than once, he said. Formed in 1934 as the CU of Pacific Bell and AT&T employees, it was accustomed to layoffs. Then the Bell divestiture and spin-offs in 1984 put a hurt on. "We were already a quasi-community credit union by 1999; we had 2,500 SEGs," Williams said.
Wescom became a community charter in 2000 with a potential membership of 21-million people who live in the seven counties of Southern California. "Growth is the most important performance measurement. It means we are vital and relevant in our community," said Williams. But serving such a diverse community effectively can only be done with a branch network that provides access, he stressed, and branching is a key driver of Wescom's growth strategy.
Wescom's 50-branch network is on track for that, as Williams' aggressive plan included opening 11 branches in 2006, seven this year and eight in 2008. "At the end of 2010 we want to have a total of 70 branches," he said. "There is a clear correlation between giving members access through our branches and our growth. We added 53,000 new members last year. Some 6,000 joined this March." Williams said that earlier expectations of growing through the Internet in years past have proven unfounded, and indirect loans aren't a key producer of member growth either. But branches do work, and Wescom keeps them open seven-days-a-week. Together with web services and ATMs, that convenience has contributed to the most robust growth the CU has ever had, and 60% of new members are referrals from existing ones.
Williams also stressed that a CU's branches serve as advertising for the entire movement, just by creating awareness of CUs. That makes for political support and also presents real competition to the banks, he said. "We're going for the broad middle market," Williams said. With a $4-million marketing budget, Wescom uses all traditional venues, but radio is its No. 1 pick.
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