HOUSTON - Walk into the Houston branch of JSC FCU and you might see a Russian cosmonaut doing business with member services. You won’t be able to tell him apart from the rest of the members, except for the interpreter by his side.
JSC FCU serves NASA employees of the Johnson Space Center here, including Russian cosmonauts when they come to train at the facility. Credit union CEO Mike Brown acknowledges that cosmonaut sightings occurred more often in the past, when the U.S. was conducting joint exercises with the Russians, than now. But they still stop by the CU today when they come to town.
Accounts For Foreign Astronauts
“We continue to have a large number of accounts for foreign astronauts,” Brown said. “Many buy homes because they come here to train for long periods of time.”
While JSC FCU has expanded to serve 1,100 SEGs, its core FOM remains the NASA employees and aerospace contractors who make up 60% of its 104,000 members. NASA has been a very stable FOM, Brown said, which has allowed the $1-billion CU to grow.
“When I came to JSC as CEO in 1986, one thing I always thought would be around is the space industry. Even with accidents with two shuttles, we only had a little downturn. It’s been a great, stable FOM.”
Brown quickly learned about the credit union’s primary FOM, and their most obvious traits. They don’t have a lot of time for banking and they’re ahead of the curve when it comes to technology. The CU’s board, made up of many NASA employees, made sure the credit union was one of the first financials in the area to begin taking advantage of home PCs.
“We’ve always been on the forefront of technology because our board set that direction,” Brown explained. “Our systems are all automated and we use bill payer and home banking. Our members really use home banking a lot.”
The popularity of online services is obvious when comparing walk-in traffic to remote access. Currently 30% of the credit union’s business is conducted in-branch, with 70% online. It’s a trend that’s not slowing.
“We’ve seen our walk-in transaction volume decrease every month and our electronic transactions go up,” Brown said.
Despite a tech-savvy membership that is often highly educated, Brown said, members like the credit union to keep financial products simple. “We don’t have a lot of tiered products,” Brown said. “As busy as they are, they like their financial offerings to be straightforward.”
JSC FCU also keeps deposit and loan rates at the top of the market because members are rate sensitive, Brown said.
“I think a great deal of our membership grew up watching the market,” Brown said. “Because of their income level, they are likely to chase rates. They expect us to offer the best prices on loans and CDs. Otherwise, they might move.”
The credit union was formed in 1961 to serve NASA employees and has expanded its FOM over the 47 years since. Brown said the JSCU FCU kicked around the idea of changing its current name–it was originally called MSC FCU when the Johnson Space Center was called the Manned Space Flight Center, before changing its name to honor former president and Texan Lyndon B. Johnson.
No Name Change
“We came to the conclusion that changing our name was not smart,” Brown said. “You make a name stand for what you want it to stand for. Who else can say their credit union serves a world-renowned space center? Why would we give up that recognition. The space industry still fascinates people and that’s a strong marketing tool.”
