UNCLE Credit Union gets serious about business

UNCLE Credit Union has launched a Business Banking Division after recognizing what one executive called a “market void” in its community.

The $381 million credit union is based in Livermore, Calif., in the San Francisco Bay Area. Harold Roundtree, president and CEO, told Credit Union Journal here were a number of factors driving the decision to create the new program, including numerous requests from members who owned businesses.

“We wanted to leverage the entrepreneurial spirit of our existing membership base while providing them with enhanced service and value,” he explained. “Many of our members had approached us about providing products and services geared toward businesses and were eagerly anticipating the launch. When we rolled out business banking in September, these members opened a new business account right away.”

Harold Roundtree, president and CEO of UNCLE CU

Although UNCLE had existing business accounts, Roundtree said prior to the formation of the new division the CU did not have a formal program consisting of business products and services, policies and procedures, and a team member whose primary responsibility was to oversee these specific accounts and help set and implement strategy and goals for business banking.

“Prior to the launch of our Business Banking Division, our business members did their banking on our consumer platform,” he recalled.

The BBD was introduced via a soft launch on Sept. 1, 2016, followed by an official launch in early January of this year. With the program in place, UNCLE now offers what Roundtree termed a “wide spectrum” of products and services customized for business owners, along with set practices and guidelines for business accounts and a dedicated account manager. The new suite of products features business savings, business basic checking and premier checking accounts — all with flexible terms. In addition, the credit union offers business certificates for those seeking the highest yield from insured deposit accounts, and business Money Market accounts with low fees and competitive dividend rates.

“Through our strategic partnership with Newtek Business Services Corp., we also are providing businesses with multiple lending solutions and vital services such as cash management with ACH payment processing, payroll, merchant cash advance and accounts receivable financing,” he said. “The partnership enables us to provide our members a variety of personal and commercial insurance options and digital solutions, such as web design and development, web hosting and data backup.”

In its December 2016 Call Report, UNCLE CU listed more than $1.5 million in net income for 2016. It net worth ratio as of Dec. 31 was 9.43 percent (“well capitalized”).

Revenue Stream, Loan Growth
Asked what prompted the change, Roundtree said business banking offers the credit union a “valuable potential revenue stream and promising new area for loan growth,” along with a strong selling point for new members. In addition, he said diversifying UNCLE CU’s loan portfolio with products offering high loan yields is an important component of its strategy to help ensure the long-term health of the organization.

During the soft launch of the BBD, UNCLE Credit Union introduced its new business banking program to existing members by implementing an in-branch communications strategy and by using its website and social media channels. It also rolled out updated collateral and brochures, and ran e-mail campaigns.

“Within our branches, we utilized digital marketing with inLighten video displays,” Roundtree said. “Our front-line branch employees were invaluable in informing our members about the advantages of business banking. Our leadership worked closely with staff to help ensure they delivered knowledgeable and consistent messaging about products and services, and were well-equipped to recognize and refer potential members who would benefit from the program.”

Another key step was the hiring of a business banking manager whom Roundtree said works in concert with the credit union’s business development managers to grow and enhance the program.

“Our business development team has taken a proactive approach in identifying existing companies from among our membership that might be interested in converting to the program, and then providing a warm introduction to the business banking manager.”

The credit union is planning a media relations campaign to increase awareness of its business services.

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Growth strategies Business services Small business lending California
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