The Federal Credit Union May-June 2014 - (Page 2)
Name a strategy you are
employing to compete against
the "big banks."
A strategy we are employing to compete
against 'big banks' is to present Arizona FCU
consistently with the seven principles of a
cooperative - as a membership organization
that offers financial services. The benefits of
membership will be proportionate to each
individual's economic participation with their
cooperative. As one obvious benefit example,
we distribute capital proportionate to members'
participation every year a surplus is achieved,
including surplus distributions of $5 million
in 2013 and $3 million in 2012. We have a
membership proposition that offers tangible
and measurable value over and above their
membership dues. It is a strategy of establishing
both mutual expectations and mutual benefit
of our not-for-profit cooperative design and
structure. Our strategy is to highlight how we
are different from a bank, not the same.
- RONALD L. WESTAD, president and CEO, Arizona FCU, Phoenix
An item we continuously offer - and
big banks rarely do - is our financial
education and our in-school credit
unions. Financial education is offered to
schools, adult career centers, churches,
Army Community Services and other
groups looking for budgeting, check
writing, credit score and loan classes in
the area. We won second place in the
Louise Herring Award for our in-school
credit unions and first place in the
Desjardins Award for our financial
education from League of Southeastern
Credit Unions in 2013.
- JIM MITCHELL, president and CEO, Army Aviation Center FCU, Daleville, Ala.
Our strategy for competing with the
'big banks' is to limit how much we need
to compete. We target a position within
the calmer water and deliver a value
proposition focusing on trust, sense of
family, low fees, well-above-average rates
and a narrow product line within which we
can strive to be best in class. This allows us
to apply our limited resources to areas that
directly benefit our owners, rather than
fighting for highly contested space.
For the past nine years, we've returned $50
million in bonus dividends and loan interest
refunds to members. The annual return rewards
loyalty. If someone has his mortgage, vehicle and
credit card with Ascend, he's not only going to
receive a larger return than someone who only has
a savings account with us, but he's also sharing in
the success of the credit union. That's something
the banks simply don't offer.
- CAREN C. GABRIEL, president and CEO, Ascend FCU, Tullahoma, Tenn.
- RICHARD A. FEHR, president and CEO, APCI FCU, Allentown, Pa.
THE FEDERAL CREDIT UNION MAY-JUNE 2014
Table of Contents for the Digital Edition of The Federal Credit Union May-June 2014
Voices & Opinions
Calendar of Events
From the Chair
The Lending Landscape
The Social Life: A Social Media Roundtable
NAFCU's 2014 Annual Report
Getting to Know...
Inside NAFCU Services
From the President's Desk
The Federal Credit Union May-June 2014