FAIRHAVEN, Mass.-A program at First Citizens' FCU here for current and former military personnel has brought in thousands for veterans organizations and boosted wallet share at the credit union.
Announced in November 2007, the "Hero Account" was created as a comprehensive package of banking services offering better checking and savings rates, discounted loan rates, reduced closing fees on mortgages, and number of other personal financial services to any person currently serving or having served in any branch of the U.S. military. To further entice qualified members, the credit union promised to donate $50 to local veterans' organizations for each new account opened - and to date it has donated $45,000 to those groups.
"We've really broadened the members' relationships with the credit union and that's huge. The more member walletshare you get, the more profitable that member becomes to the credit union," said CEO Peter Muise. "The Hero checking member uses above the median in terms of additional products and services. These members also have a higher than average number of accounts per member, which includes deposit accounts, loans and mortgages."
The Hero checking account is already the CU's 4th largest checking product by deposit dollars, while the savings is its 2nd largest statement savings account. Muise called the adoption of the accounts "pretty remarkable" given that they are limited to just a segment of the membership and have been around for only two years. The new account, as well as other programs where the $475-million CU partners with local veterans support groups, has boosted the visibility of many of those organizations. The increased publicity has allowed one such group, called Welcome Home Veterans, to convert a former mill into one-bedroom apartments for homeless veterans.
"Any time any of these organizations can get a little bit more publicity and someone reads about the good work that they do, the contributions become twofold and threefold," Muise noted. "You just don't know where these things go; it's really a pay it forward type thing."
Of course, the credit union is benefiting from the relationship as well. Muise said several groups keep brochures on First Citizens' products and services at their locations and have referred a number of new members to the CU. The program has been so successful that the credit union is using a carbon copy to help families of police officers, firefighters, EMT personnel and teachers, especially those who have been hit by municipal and county budget cuts, through their Champion program.
"We use the same type of program but instead of making a contribution to an organization we make the contribution to a scholarship fund where the only people who are eligible are those who have Champion accounts," Muise explained.
The CU also places $10 into that scholarship fund for every loan for Champion Checking Account holders open.
