ROANOKE, Va. -
To that end, Member One has partnered with Collegiate Funding Solutions, an online service that allows consumers to make personalized decisions in saving money for their children's education. In addition to directing members to credit union savings products, the Web-based service also has potential to help the $318- million institution recover its annual investment in the program. However, covering costs and earning fee income are not the motivating factors in offering the service said Boothe, Member One's AVP of marketing.
"We've been committed to financial literacy for several years and this program walks hand in hand with our other initiatives," Boothe said.
Boothe began exploring college funding options six months ago, uncovering the Raleigh, N.C.-based online program in the process. Other Virginia credit unions already had partnered with Collegiate Funding Solutions, including Synergy One FCU, Manassas; Ft. Belvoir FCU, Woodbridge; and DuPont Fibers FCU, Richmond. Conversations with officials at those credit unions, as well as with Collegiate Funding Solutions president Roger Lorelle led Member One to partner with the service provider last month.
"The program works like Turbo Tax," Boothe said. "A member logs on to the Collegiate Funding website through a link on the credit union website, then enters his or her personal financial information into the program. Collegiate Funding offers suggestions as to what the best savings plan and vehicles might be, directing the member to credit union products. The program adjusts its recommendations based on how early in the savings process the member has become involved."
Members can participate in a high-level general program for free to get a feel for the product and process, Boothe said. A more advanced plan with greater customization is available to the member for $79, 30% of which is returned to the credit union as a form of fee income. Member One paid a one-time co-branding fee of $1,500 to set up the program and will commit $7,000 per year to participate. With enough participation the 58,000-member credit union could recover its annual costs, but service, not revenue is the driving force behind the program, Boothe said.
Member One, with both a community- and SEG-based membership, sees the service as falling in line with 10 other financial literacy programs it offers not only to members, but also schools, churches and other community organizations interested in helping their own members better manage their money.
"The programs are driving toward financial education first, not toward promoting credit union products," Boothe said.
The relationship with Collegiate Funding Solutions, in addition to fitting into this program, also is designed to attract younger members and dovetails with Campus Advantage Accounts that Member One offers young members age 13 and up. The programs combine to combat the continued "graying" of the credit union's membership base, he added.
The Collegiate Funding Solutions college savings program is still quite new and Boothe does not expect it to make an impact until the credit union's Web page redesign, due to be released Nov. 1. After that, Member One anticipates the program will start gaining traction, but is maintaining modest expectations for success, he said.
"If we can attract 200 participants by the end of next year we'll feel that we've accomplished our goals," Boothe said.
