HIGHLAND PARK, Mich. — While many credit unions covet Generation Y for future relationships, Communicating Arts CU sees the value in one member of GenY right now.
LaTrisha Smith is the 23-year-old manager of the new Highland Park branch of CACU that was placed in this low-income neighborhood to help residents reverse their financial situations. Located in a strip mall on Woodward Avenue next to a police station and a small grocery store, the Highland Park office is beginning to pull individuals out of financial tailspins.
"We wanted to be located where we could do a great deal of good in the community," said Smith, who acknowledged that sometimes members, due to her youth, think she's a teller. "That's OK. As long as we are helping our members, that's what I am concerned about."
Before moving into Highland Park, the CU wanted to understand the needs of the community rather than find out after the branch opened. Smith, and coworker Shandel Small, who both did a great deal of research into the community's financial habits, immediately noticed the prevalence of payday lenders. So Smith and Small stopped into a payday lender and took out a loan to see how it worked
'Shock' from a Lesson Learned
"We were shocked at the extent to which these lenders take advantage of this community," she said. "They charge about 300% to 400% interest and demand payback in two weeks. It's a cycle that people often never get out of."
One of the first orders of business before the branch opened in April 2008 was to create its own payday lending product. Called My Pay Today, the signature loan charges 18% and can be repaid in 60 days. "We expect direct deposit with the product," Smith said. "That way it helps members with their credit report when they pay on a regular basis. We want to work with members to rebuild their credit."
Smith said CACU also wanted to be located where many of its existing members live and work. Most of the residents are African American, said Smith, describing the area as "close knit" — made more so by the fact that the neighborhood's small, narrow homes are extremely close together. The motion picture Gran Tornio, starring Clint Eastwood, was filmed n Highland Park, and inaccurately depicts the area as having a high Asian population, according to Smith.
The 3,000-square-foot Highland Park branch is the $25-million CACU's second location. The main office is situated in downtown Detroit. The Highland office is the only credit union in its community, which Smith said is helping the office take business from banks that are struggling with member service and poor reputations. "We were not sure how quickly we'd grow, which is why we did not hold a grand opening. We were not sure if people would come rushing in, or if we would grow slowly."
While lines are at times "out the door," Smith said, the branch has experienced a steady increase in membership, and averages a little more than 1,000 transactions per month. Running a branch and having such a direct impact on the credit union's growth was not something Smith envisioned when she signed on with CACU at age 21 as a member service rep. Smith was named branch manger four months before the new office opened. "I think the credit union liked my professionalism, my dedication to the credit union and members, and my enthusiasm," she said.
Even after being in her new role for more than a year, members still mistake Smith for one of her staff of three. "Being young and running a branch can have some drawbacks," Smith said, both in terms of what members may think and in running the daily operations. "The lack of experience was the toughest part at first. But I am learning fast with the help of many of the leaders in the credit union."
Plans to Exceed Goals
Smith said CACU expects she'll make some mistakes, but won't repeat hem. Based on her 2008 results, Smith is a quick study. "I exceeded my goals last year," she said. "I had to bring in a certain number of new members by October, and I beat that mark by 400. I also surpassed my savings target by $400,000. I have to say, I really like this job."
This special report on Branch Management is reported by Ray Birch.
