Ent Federal Credit Union is using a new card partnership with a local university to reach out to young people, an area in which credit unions traditionally don't often thrive.
In an attempt to serve a significant portion of the Colorado Springs area and capture the 18- to 24-year-old market segment, Ent FCU and the University of Colorado at Colorado Springs (UCCS) struck a deal late last month that will provide an "all-in-one" campus card for students starting school this fall.
The new Lion One Card will solidify the existing relationship between the credit union and university, with both organizations being active in the community, with students and local residents.
EFCU SVP Jim Moore said the credit union realized that many Colorado Springs residents and its own members were either students or employees of UCCS.
After board direction, Moore said EFCU went ahead with the plan for three reasons: it reflects an emphasis on growth in the youth market; UCCS is an important segment of the local population with strong ties to the community (just like Ent FCU, see story below) and the large number of commuter students attending the school.
"We felt it was a natural link for us to work with them. We see this as planning for the future of the credit union," Moore said.
Moore said the revenue generated by the new cards is incidental to creating the program as they are highly transactional accounts with balances on the smaller side. But, Moore said it's an important service to members and the student body with solid potential for long-term growth.
Students eventually will be able to use the all-in-one- card for many campus functions and events such as personal identification, a meal card, entry into sporting events, performing arts, a library card and possibly even to do their laundry instead of taking it home once a month to mom and dad.
Eventually, the card will be able to be used as a door key for campus dormitories.
Moore said students can choose to open their account with a debit card or ATM function. Moore said there won't be a great deal of personal or account information on the card's stripe, instead acting as a portal to the Ent FCU database where the information is permanently stored.
Ent FCU will also serve as the university's formal financial partner and will launch an on-campus branch at the university center staffed with customer service representatives and ATM machines placed throughout the school.
In addition to the Lion OneCard, EFCU will pay rent for its branch space, provide student internships, scholarships and continued support for capital construction projects.
Moore said the new cards will be issued in September and is hoping to get as much as 50% of the school's 9,000 students and faculty. Moore said EFCU has already started pitching the new cards during summer freshman orientation.
"I think the parents think it's a terrific idea," Moore said.
UCCS spokesman Tom Hutton called Ent FCU a high-quality organization that is well known in the community for its community involvement and campus support. Hutton said the CU went through several rounds of state RFPs, but still came out on top as the new campus financial partner.
"They also won the deal fair and square," Hutton said.
Hutton said UCCS is expecting to increase its student population 100% during the next 10 years and EFCU fits snugly into that plan. Hutton also mentioned EFCU's developed online banking system and its well-known expertise in technology.
"They saw the future, that we are the fastest growing campus in Colorado," Hutton said. "We could learn a lot from their security arrangement. It's great to be in partnership with them."
