When I took over the helm of Riverfront Federal Credit Union in Wyomissing, Pa. four years ago, it was akin to grabbing the wheel of a ship adrift at sea without a compass. Riverfront was lacking direction and its financial performance had stagnated. It was time to plot a new, more productive course.
As an agent of change, I’m not comfortable with the status quo. I believe in giving members/owners everything they would possibly need at the most cost-efficient price possible. This philosophy has been my business compass, and I relied on it to guide me through Riverfront’s turbulent waters.
After 14 years of leading operations as the chief operating officer for the highly successful Singing River Federal Credit Union in Moss Point, Miss., I was prepared and ready to begin a new journey, one that would capstone my career and achieve a positive impact based on my knowledge and experience of mentoring and motivating others.
But as with any “ship,” making a major course correction was going to require some time, not to mention a financial investment to bring about the changes that were required. Staffing, product technology, service, software and Riverfront’s core banking platform were among the first components that needed to be reviewed and changed. And with the blessing of Riverfront’s board of directors, I embarked on this dramatic change in course.
Throughout the job interview process, it became clear to me that Riverfront had gradually become more and more risk-adverse and, as a result, had not been lending enough to positively impact its future growth. One of the first steps I took when I became CEO was to loosen the purse strings regarding loans.
I understood the risk-averse strategy that was in place before I got to Riverfront, but it was time to take a more proactive, aggressive approach with lending to ensure a prosperous future. Underwriting strategies were realigned to work for the member demographic that Riverfront serves. This has resulted in a 75 percent increase in direct loan originations for the year to date June 2018 compared to the same period last year. Measuring the same information through July, YTD growth is 71% higher for 2018 vs 2017.
In addition, I saw that the credit union had not stayed current in engaging many of the tools, technologies and access services that other financial institutions had deployed years prior. We started to turn the tide by moving from a stale, inward-looking institution to one that’s exciting and forward-looking. Although there were some setbacks while making the course correction, proper processes were in place to overcome those hurdles.
New directions
Armed with a fresh tagline, “We’re headed in a new direction,” that’s exactly where I directed my focus. We needed to review every product and service, take it apart and put it back together again to create efficiency and speed for the member base. Each of the credit union’s products and services were reviewed to see what was and wasn’t working. Then they were put back together to make them bigger, better and faster than before.
In addition, I set out to find what Riverfront members needed to enhance their financial lives. I had our employees conduct extensive member surveys to solicit feedback, and then we followed through in providing what members asked for. As a result, we added an updated and interactive website and a robust electronic banking platform, complete with a full-service mobile offering, and online loan and membership application accessibility. Auto decisioning soon followed, and traditional products and service offerings were enhanced with the addition of a Cash Rewards Visa credit card.
We also implemented a standout iChoose cash rewards program which, in addition to very competitive loan rates, provides members with up to $500 cash back at loan closing as a way of saying thank you for trusting the credit union with their lending needs. With that, the member can then choose how to use their iChoose cash rewards. To date, we have awarded over $256,000 in iChoose cash to our members.
To assist local businesses as well as our existing consumer member base, in 2016 we deployed a merchant partnership program, complete with a co-branded online loan application and specialized financing options for businesses to extend to their clients looking to finance their home renovation, landscaping, and heating and cooling needs, to name a few.
Our major course correction paid off in 2017, when Riverfront generated over $1 million in net income, replenishing member capital. What’s more, we’re on track to do the exact same thing in 2018. I’m also proud to point out that our updated and integrated technology systems have significantly increased electronic banking enrollment and have engaged over 65% of the credit union’s membership in e-statements.
No pain, no gain
Reaching this point didn't come without some pain and hardship along the way. Although, as they say, nothing worth having ever comes easy, and it makes success that much sweeter.
Let me stress that I couldn’t do this alone. I was surrounded by a staff that shared my excitement, and remains dedicated to do whatever is necessary to accomplish the tasks at hand. I look forward to going to work every day, knowing that all our employees truly believe in the products and services that Riverfront offers, and are thrilled by the positive impact they have on the communities we serve.
Although Riverfront closed 2017 with more than $1 million in net revenue – something that hadn’t been accomplished in years – I’m not about to become complacent. We constantly review what we do. Our products, processes, and services are routinely scrutinized to ensure Riverfront’s members/owners are getting the most their credit union has to offer.
As a result of our continuous review process, we are currently launching instant issue debit cards that can be customized with members’ personal photos. Also coming later this year will be enhancements to our relationship pricing strategy.
As we celebrate our 70th anniversary this year, we continue to head in a new direction. And because of the changes made so far, it looks like smooth sailing ahead for Riverfront’s owners/members and employees.
