ORLANDO, Fla. - If there was a consistent theme at Credit Union Journal’s Grow Show, it was that credit unions that have been among the fastest-growing do not actually focus on growth.
Case in point: Tukwila, Wash.-based BECU. “Growth is not one of our objectives. Growth is an outcome of value and service,” said Gary Oakland, president/CEO of BECU, which has grown by 100,000 members and $2-billion in assets over the past 18 months.
That growth has been driven instead by what Oakland described as an “evangelical belief” that all consumers ought to be able to join a credit union, and that the CU those consumers join should be the one that meets the needs of members. “That’s the core purpose of the credit union,” said Oakland. “We believe growth occurs because of the value and service we deliver. If we are vital to the members, that creates a vitality in the credit union.”
BECU, said Oakland, strives to operate with an 8.25 to 8.50 reserve ratio, and does not chase ROA. It prefers to measure itself according to RTM, or Return To Member that measures the amount the benefits BECU delivers to members.
In 2003 BECU calculated it returned $166 per member. In 2007, that figure had risen to $300. Oakland said the credit union is projecting by the end of 2008 it will return $365 to members. “That translated into an accumulated value of $210-million that our members save by having their finances at BECU rather than another financial institution,” said Oakland.
Moreover, said BECU strives to be an active member of its communities, and throughout all its decisions asks itself how it impacts “credit union philosophy.”
BECU is also driving growth via its delivery strategies, according to Oakland. “We want every experience to be the same so regardless of which channel the member uses to interact with us, they get the same information,” said Oakland, noting BECU has now turned on a new knowledge base that is open to the entire membership so anything its consultants are looking up can also be accessed by members. “Part of the goal is skating to where the puck is going to be, rather than chasing after where it was,” said Oakland. “This is part of the bet we’ve made on the future. And we think we’re just about there. Our bet is that we don’t need a whole bunch of traditional branches, we can rely on the virtual channels and we can let members define convenience on their own terms.” To that end, BECU has been opening “Neighborhood Financial Centers” in local Safeway stores with a 400- to 500-square-foot footprint. At those centers, staff demonstrate for reps how to use BECU’s other virtual channels.
Oakland made clear BECU stresses value to members, but it does not try to be all things to all prospects. “It finally occurred to us that who we are is how we operate, and we cannot be everything to everyone. Our product base is very broad, but very shallow. There is A checking account and A credit card,” said Oakland. “This is who we are, all are welcome. Part of our BECU audience are members who define convenience as not necessarily a branch.”
