PHOENIX -
Becky Nilsen, CEO of Desert Schools Financial Services, told the Credit Union Journal she heard a presentation on financial education at a NACUSO conference three years ago that made her realize the importance of the topic.
"About the same time, JoAnn Johnson of NCUA had challenged credit unions to educate their members," Nilsen recalled. "Employees care about member service, and want members to have a good experience but I know employees will not recommend a financial product they don't understand. Education is key."
Soon after, Desert Schools Financial Services purchased educational CDs and began training its employees on basic investment topics. Eventually, DSFS enrolled its staff in Educated Investor University, which is published by Precision Information.
The Educated Investor program is an online university which offers up to 18 hours of personal finance content, from which CU employees can learn more about personal finance topics. DSFS employees who complete all 18 courses receive a Personal Finance Certificate and go through a cap-and-gown ceremony with personal recognition from senior management. Nilsen said completion of the certificates is entered into employees' work files and considered when they are evaluated for potential pay raises and/or promotions.
The problem's roots, Nilsen asserted, are in the fact financial education is not taught in schools. She said the vast majority of Americans do not understand financial terms and concepts. Nilsen cited a survey by the Securities Industry Association, which found more than 67% of people feel they do not know enough to make a sound financial decision. More importantly, 84% want their financial service provider to do more to help educate them.
By educating its employees, Desert Schools has given them the confidence needed to provide referrals, Nilsen continued. This, in turn, has led to bottom line growth.
As of the end of 2006, more than 800 Desert Schools employees had completed one or more online courses, and more than 120 had earned a Personal Finance Certificate. Nilsen said the enterprise-wide employee education program was complemented with sales incentives to help staffers understand how to apply this new-found knowledge to better serve members.
As employees have become armed with the confidence necessary to provide referrals on topics covered in the courses, in two years (2004 to 2006) DSFS has seen 317% growth in the number of referrals (to 9,500 from 3,000), 275% growth in revenue (to $55 million from $20 million), and 333% growth in profits (to $3 million from $900,000).
"It really has been a journey for us," said Nilsen. "From inserting a CD into a drive to having an online program that is automated and interactive, where results are tracked. The statistics in referrals and business show the value of the program.
"I would recommend Educated Investor University to any credit union," she continued. "I really believe if employees are not knowledgeable in making a referral, it just won't happen. Making them educated helps members and the employees."
Nilsen said Desert Schools pays an annual licensing fee to Precision Information to use the course content. The cost depends on the size of the organization and how many employees are taking tests.
"Next year, we will launch a three-tiered approach to learning for members. It will go beyond investing: it will have first-time home buying information and a money coach to help them set up a plan," she said.
Desert Schools FCU is a $3 billion credit union serving 344,000 members and 1,700 SEGs from 59 branch locations with 1,100 employees.
FOR MORE INFORMATION
www.desertschools.org
www.desertschoolsfs.com
www.educatedinvestor.com
