“My advice for someone pursuing a leadership role in the credit union movement is to lead with resolve and humility. Listen first and approach challenges and opportunities through a cooperative lens as that will yield unexpected results and better answers.”
BECU ($29.0B, Tukwila, WA) is a leader in technology adoption as well as community engagement.
Tom Berquist joined the Evergreen State cooperative in 1994 and through successive promotions has been at the leading edge of its progress. Since 2000, he’s been the executive vice president and chief marketing officer responsible for all BECU marketing efforts including affinity relationships, internal and external communications, marketing technology and analytics, philanthropic efforts, and community affairs.
Berquist retired at end of November, but before he left, he shared insight from his long experience at what is now the nation’s fourth-largest credit union.
How has the credit union industry changed during your career? How has BECU responded to those changes?
Tom Berquist: When I started working in the credit union industry nearly 30 years ago, digital banking platforms such as online and mobile banking did not exist. Although our branches play a critical role in how we support our members, digital services and tools have allowed BECU, as well as other credit unions, to better serve our members.
In addition to online and mobile banking, marketing and branding of credit unions was almost non-existent. In 2005, I was lucky to help spearhead the creation of BECU’s brand and bring its story to the marketplace through the words of our members. Credit unions were not actively involved in their community beyond their SEG relationship. It has been rewarding to see BECU increase its community engagement and make it a key part of our brand.
What’s That You Say?
Last year, BECU donated $8.5 million in philanthropic funding to community partners focused on financial wellbeing and equity.
Finally, the credit union industry has continued to expand its fields of membership, which grants more people the ability to enjoy the benefits of being a credit union member. Although this technically created more competition among credit unions, I now see greater collaboration among credit unions to solve critical issues like access to affordable housing and affordable credit.
Despite the ways the credit union industry has changed, one aspect that has never wavered is the belief and embodiment of the “people helping people” philosophy and operating principles. Supporting our members’ financial wellbeing and giving back to our local communities is part of our DNA and will remain a focus for BECU both now and in the future.
Where do you think the movement is heading? What challenges and opportunities lie ahead?
TB: This might not come as a surprise, but credit unions will continue to consolidate as we head into the future. However, I still believe there is a space for small credit unions that are highly focused on serving specific member segments in our communities. In these cases, there is an opportunity for larger credit unions to better support smaller credit unions. Oftentimes, those larger in scale might be unable to meet the specific needs of certain segments.
To put it simply, there is immense opportunity for credit unions to demonstrate “cooperation among cooperatives” by coming together to serve their members and local communities most effectively.
CU QUICK FACTS
BECU
DATA AS OF 09.30.23
HQ: Tukwila, WA
ASSETS: $29.0B
MEMBERS: 1,430,708
BRANCHES: 60
EMPLOYEES: 2,919
NET WORTH: 10.9%
ROA: 0.74%
The biggest challenge I see is also the credit union movement’s biggest opportunity, which is staying relevant to our members and communities. There’s opportunity for financial cooperatives to lean further into what makes credit unions different from banks and fintechs. Whereas credit unions need parity with banks in terms of products, services, and technology, at the end of the day, our true differentiator is the cooperative model and the credit union philosophy. As not-for-profits, credit unions are uniquely positioned to serve their members’ needs, no matter the circumstances.
What advice do you have for someone pursuing and assuming leadership roles in the movement today?
TB: My advice for someone pursuing a leadership role in the credit union movement is to lead with resolve and humility. Listen first and approach challenges and opportunities through a cooperative lens as that will yield unexpected results and better answers.
The Exit Interview series features parting thoughts and wisdom from influential leaders in the credit union movement upon their retirement. Read the whole series on CreditUnions.com.
What’s next for you now? What’s on your bucket list?
TB: Following my retirement from BECU, I hope to stay connected to the credit union and cooperative movement, although I don’t plan on working a “real job.” In addition to spending more time with my family, I plan on doing more skiing, hiking, and flyfishing, volunteering with local nonprofits, and traveling. I’m also looking forward to learning new skills and hobbies.
What final words do you have for the credit union industry?
TB: The cooperative model is an excellent innovation platform for good and allows us to tangibly differentiate ourselves in the marketplace. It also enables credit unions to create long-term sustainability for the cooperative. A cooperative model driven by innovation will have significant positive impacts in our communities and the lives of our members and employees. Leaning into the cooperative model will reinforce how credit unions are earning their tax exemption.
This interview has been edited and condensed.
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