Portland, Ore. ? When Shirley Cate joined Providence Health Systems Federal Credit Union as CEO in July, she discovered the financial institution and its sponsoring employer had similar missions ? missions she felt would help the $70-million credit union grow. The fact that Providence Health Systems is also Oregon's second largest employer doesn't hurt, either.
"Providence cares about what happens to its patients, who are the hospital's customers," said Cate, a 25-year credit union veteran who joined Providence Health Systems from Cutting Edge FCU (formerly Blount Employees FCU), which serves employees of a chainsaw manufacturer. "It was gratifying to know I was part of a credit union tied to a hospital whose goal was to help as many people as possible."
Tremendous Growth Potential
With 47,000 employees in Oregon and Washington, Cate also has the potential to provide financial services to a large membership that includes not only physicians, nurses and administrators, but also janitorial, housekeeping and security personnel. With barely three months under her belt, Cate already knows the credit union has tremendous growth potential. How she manages to reach those members will be based on strategies that have yet to be developed.
Providence Health Systems is actually the result of the 1997 merger of two hospital credit unions: St. Vincent Portland FCU, founded in 1962, and Providence Portland Employees FCU, which began serving members in 1969. Economies of scale, both for the credit unions and hospitals, led to the creation of the current entity, which supports 19 employees in four locations, including two full-service hospital branches in Portland and Beaverton and two service center locations in the Portland suburb of Milwaukie and Olympia, Wash.
The credit union has long focused on serving employees of its single employer and their families, a strategy it plans to continue, according to Cate. "We're trying to find our niche and continue to grow. I don't see a lot of roadblocks based on the research I've done," she added.
Now at 11,750 members, the credit union has enjoyed significant growth over the past two years based on two specific strategies it has implemented. In 2004, Providence Health Systems FCU received a Trade, Industry, Profession (TIP) charter from NCUA, allowing it to serve satellite clinics and service providers that were related to but not employees of the health care system. The credit union also hired two full-time business development representatives who have been developing membership for the past four years in Oregon and two years in Washington. In fact, the Washington business development officer was hired about the time the TIP charter was granted, events that have helped drive growth, she said.
The credit union's success also has led to some interesting service challenges, several of which sit squarely on Cate's immediate horizon.
"We know we need a larger headquarters office, but we haven't yet decided whether we're going to build a building or stay on the Providence campus," said Cate, who works out of the Milwaukie service center. "As Oregon's second-largest employer, the growth potential is huge, but it might make more sense to move off campus so we can better serve other doctors and labs."
Providence Health Systems FCU is also looking for ways to better serve members electronically, a factor that will become more critical if the credit union leaves the hospital campus.
Majority of Loan Apps Done Online
Currently, 63% of loans applications are done online, many benefiting from the standard 90-second approval process the credit union offers. The credit union also can issue credit and debit cards immediately to members who come into either the branches or service centers. Greater technology could make the issue of office locations moot provided that members can continue to be well served, she said.
"I knew when I came here that I'd find a strong, viable credit union that operated lean and mean," Cate said. "I was surprised to see how well run it was, especially based on the number of employees. People who work here love what they do, and that's kept the member services levels high."
(c) 2007
