SEATTLE-The $8.7-million Express Credit CU made a radical change earlier this year in an effort to survive, and so far the move is paying off, according to its CEO.
The CU reached a partnership with 16 area non-profit groups to host branches at their locations on either a full- or part-time basis. Brenda Kurz told Credit Union Journal Express CU has grown by more than 700 new members this year, with most of those joining since the new branching strategy made its official opening at the end of May. She had set a goal of 1,250 new members in one year meaning growth is ahead of the forecast.
"About 90% of the new members, based on our survey results, are low-income according to NCUA standards," she said. "We have a total of four community member service representatives, or CMSRs for short, which have been deployed in non-profits since June. There are 16 different non-profit locations, and most of the CMSRs are at a different location each day. Three of the CMSRs are assigned to five locations each, the fourth has one designated location. The CMSRs serve in a total of five languages."
Express CU views the CMSRs as "private bankers for low-income people," Kurz continued. She said the goal is to get members to return on an as-needed basis: whether it is for ATM cards, checks or other member-service functions.
Kurz said there have been no complaints regarding the rotating nature of the branches.
"Members have the cell phone numbers for their reps, so they can get a hold of them any time," she explained. "We group the CMSRs somewhat geographically, so while members know which days their CMSR is open, they also can go to another location if they need to.
"We are very pleased with how it is going," she declared. "There is a huge need right now for debt consolidation. We've been able to help a number of members but wish we could help more. We have applied for grant funds to expand what we want to do. We'd like to create a loan loss allowance fund so we can take on more high-risk loans for people who are in a cycle of payday loans and credit cards. Credit card rates are increasing dramatically, and some of those people will never get those paid down."
Express CU's goals for 2010 include a vehicle ownership program. Express Advantage, the credit union's charity arm, will match a member's down payment up to $500.
"After going through a financial education program, members will get a loan at a much better rate than they get elsewhere," Kurz said. "Some credit-challenged people are being charged up to 29.9% APR in this community."
