SAN DIEGO-Morgan Courtney was recently named by San Diego-based USA Federal Credit Union as vice president of Overseas Operations. Talking to Credit Union Journal readers from Japan, below Mr. Courtney talks about the challenges and unique nature of overseeing branches located in foreign countries.
CUJ: Where does USA Federal have overseas branches?
Courtney: USA Fed currently maintains 11 branch locations throughout Japan and Korea. Each branch is situated on a U.S. military installation residing in different parts of each country. We serve all four military branches: Air Force, Army, Navy, and Marines.
CUJ: Ninety-nine percent of credit unions do not have overseas operations. What is unique about managing overseas branches that most CUs would not be aware of?
Courtney: Simply put, logistics. With USA Fed headquartered in San Diego, there is a small window of time where we have backoffice support infrastructure and the overseas branch personnel at work at the same time. On a good day, that window is roughly three hours. To some degree this is a good thing because it promotes self-sufficiency within the branch system. Many of our overseas employees are versed in areas that our stateside employees have had little exposure to. At the same time, not everything can be handled at the branch level and the support system is a necessary ingredient. I work to fill the gaps and address time-sensitive matters as best I can, acting as an after-hours liaison between headquarters and the branches. My typical day lasts from 7 a.m.-- 10 p.m., but I feel this availability offers our internal member the greatest benefit.
CUJ: What is unique or unusual about activity at an overseas branch vs. activity by members at a domestic branch?
Courtney: Both Japan and Korea are cash-transaction heavy and the sheer volume of cash flow coming in and going out is easily the greatest discrepancy between the two. I've worked for stateside financial institutions both small and large where, when a member comes in wanting to withdraw $40,000 in cash, it's typically a red flag. But provided the nature of the local economies, it is common for our overseas members to make these types of requests. A perfect example to illustrate this is the Living Quarters Allowance (LQA) our service members who reside off base/post are afforded. DFAS processes a direct deposit into our member's account, typically ranging between $40,000 - $100,000, and a few days later the member withdraws the entire amount of the LQA in cash to pay their rent in advance for the next year to two years. My comfort level with this type of transaction has increased quite a bit, but I haven't quite adjusted fully.
CUJ: What specifically, does your position entail?
Courtney: I am responsible for the strategic leadership of USA Fed's overseas branches. This includes staff development, operational integrity, exceeding service standards, product development and deployment, procedural improvements, market penetration, and branch effectiveness & efficiency.
CUJ: How do you communicate with these branches, and how often do you visit?
Courtney: Communication is a critical facet in any work environment and the logistical nature of our overseas network certainly poses some challenges. Aside from weekly group conference calls, I spend quite a bit of time each day on the telephone with the branches. I make a concerted effort to talk with each branch at least one time per week, but I am often in contact more frequently.
In 2009, I spent six months working my way through our branch network in both Japan and Korea. The plan for 2010-2011, is to spend eight months per-year onsite. I'm currently in Japan on a three-month tour, after which I'll return home for a couple of months and then return to Korea for the remainder of the year.
I try to spend a solid three weeks in each branch, because I feel this offers me a fair amount of time to gain a solid feel for the branch operation. If I were to only spend a few days at each branch, I don't believe that I could readily capture the good we're doing, nor could I identify the deficiencies we need to improve upon. Three weeks affords me the ability to do this and as a group, we can achieve steady growth and improvement.
