ROCKVILLE, Md.–Despite a loss of $1.8 million last year and an increase in loan charge-offs–after launching a credit union for Realtors during the mortgage crisis and a CEO shake-up–REALTORS FCU is here to stay, said Jesse Boyer, EVP, COO and CIO at the nation’s sole online-only CU.
“Seeing as how the credit union is about to celebrate its three-year anniversary and has been recognized as one of the fastest growing credit unions in history, it would seem that the online model has proven to be an attractive alternative to the branch-based model for our members,” he said. The CU’s net worth is 6.37%.
The “lean delivery model” at REALTORS FCU could help overcome various setbacks, Boyer said. “We’re online-only, so we’re able to be a bit more nimble than most credit unions. We can easily roll out or change forms, marketing and branding because we only have to effect those changes on a couple of servers. Our production costs are low.”
The online model isn’t for everyone, Boyer acknowledged. “In order to effectively serve the needs of technology-averse members, existing physical locations will not necessarily go away. I do think, however, that there is an interest by many credit unions in branding an online-only offering to attract and serve a different segment of their membership.”
