TOTOWA, N.J.-North Jersey FCU here has grown its share of business accounts after holding its first-ever small business summit, with at least one sizeable loan in the pipeline as a result.
According to CEO Lourdes Cortez, North Jersey FCU has "been focusing on growing our business accounts for a while, so we wanted to come up with an idea that would garner the most bang for our buck."
The CU hosted about 80 businesses at the summit, which took place in late September and was so well-attended that employees had to move their cars off-site to allow for enough parking. The event offered networking opportunities and tips on growing a business, as well as introducing many guests to the credit union itself.
"We didn't want to make it where it was a hardcore sale of products and services," said Cortez. "The objective here was to gather these small to mid-size businesses here at our credit union to network with each other and see the services we offer and how some of these businesses can help each other grow and expand the business."
Of the 80 businesses that attended, five held accounts with North Jersey prior to the event. Another 18 joined the $198-million, 30,000-member institution as a result of the summit, "and we expect a lot more accounts to be opened because of the summit," said Cortez.
NJFCU is following up with new members and other attendees in an attempt to deepen the relationship, and one business has already submitted a $2.5-million loan application.
Cortez said she was confident that the CU would continue to deepen its lending relationships with businesses that attended the summit, and said that many branch managers will be visiting those businesses on-site as a way to cement the relationship and look for other ways the CU can serve that business while also making them more profitable members.
Banks Not Interested
"Obviously we have our competitors, the commercial banks, but they're not interested in serving the small to mid-size businesses, so we're finding that this is our niche," said Cortez. "And it's not just us that are realizing this-other credit unions in New Jersey are...realizing that this is an area that the banks are lacking as far as servicing."
Businesses with NJFCU accounts receive the fringe benefit of participating in the CU's "New Jersey Preferred Program," which lets them market their business on the CU's Web site for free and offer exclusive discounts to NJFCU members (
Cortez said that North Jersey will continue to host business summits in the future and encouraged other CUs to run similar programs.
"Credit unions should not be afraid to try something new," she said. "While we may not have the marketing budget that the banks have, nothing is as valuable as a good idea."
And, she added, "plan for parking overflows."
