SAN JOSE, Calif.-As firms in Silicon Valley hire more engineers born outside the United States., one CU is making the transition to America a little easier when it comes to their personal finances.
Technology Credit Union has introduced a Global Members program that offers services specifically focused on the needs of high-tech workers who have recently moved to the U.S. or who are foreign nationals who have established residency or gained citizenship. The program consists of four service areas:
1. CreditStart: a loan program the credit union said is designed to assist employed individuals who are new to the U.S. with limited or no credit history. Members can apply for an auto loan or credit card with just two years of verifiable income in the U.S. or abroad.
2. Foreign Remittance in Partnership with Xoom: This service allows individuals to send money abroad for bank deposit or cash pickup. Home delivery service is available in some locations. Members can send wire transfers 24/7 from their PC or mobile device.
3. International Wires: Members can send and receive funds via an electronic transfer, direct deposit or check order from their CU account to a recipient outside the U.S.
4. Travel Insurance: Tech CU has partnered with ExpertQuote Insurance Services, a local firm that offers travel medical insurance, to help those with visiting family members ensure they are protected by medical coverage while in the U.S.
'Particularly Unique' Needs
David Greene, product development manager for Tech CU, has overseen the development of the Global Members program. He told Credit Union Journal Tech CU's market area is "particularly unique," and therefore its members have special needs.
"Many Silicon Valley employees were born in other countries and have come to the United States to work," he said, noting 34% of Santa Clara County residents were born outside the U.S. "Many are Chinese or Indian and do not have a credit history here. The CreditStart component of the program helps give car loans or credit cards to people who have little or no established credit. They are regarded as 'thin file' or 'no file,' even though they have advanced degrees and good jobs."
The program was designed after Tech CU noticed working immigrants had the same needs in pretty much the same order, year after year. Greene said typically when someone comes to this country they first need to get a credit card, and then they need a car to get around. "That is why those services are covered first by CreditStart," he noted.
Moving along the continuum, Greene said many immigrant tech workers want to send money back home to their families, but international wire services are expensive. He said Tech CU's partnership with Xoom, a San Francisco-based company, gives members a referral they can count on, rather than having to research themselves. And, Tech CU members get their first transfer free.
"After they have been here for a while, many want to bring their family members over for a visit," he continued. "They need to buy travel insurance so their family is covered in case of, say, a car accident, so we have partnered with ExpertQuote Insurance Services, a Bay Area firm that offers travel medical insurance. Many of our members look to their credit union as a trusted source for the vendors to use."
Lisa Fettner, VP of Marketing for Tech CU, said the four service areas currently covered by the Global Members program are "just the beginning. A large percentage of our membership population was born in other countries and this really helps them," she said. "We are promoting it on our Web site and in our branches. Also, we do quite a bit with our 1,500 member companies in the Bay Area, so we are letting them know about the program."
The partnership with Xoom for the Global Members program is bringing in new members, Fettner added. If someone is registered with Xoom and joins Tech CU with direct deposit, they get a bonus deposited in their accounts, she said.
According to Greene, the CreditStart portion of the program helps people get a credit history based on their credit card and auto loan. "This will help them later in life when they trade up on their second car and need a loan, or when they are ready to get a mortgage," he said. "It really fits a need that our membership has. We had CreditStart before Global Members, but it wasn't promoted the same way."
