In 2024, Service Credit Union ($6.0B, Portsmouth, NH) appointed Regan as its director of fintech innovation. Though he’d had plenty of previous exposure to credit unions, he described his official entry as a steep learning curve.

“Loans to me have never been assets. Let’s put it that way,” he quips.

Still, in the year that followed, Regan successfully made multiple investments that improved Service’s operations, enabling the adoption of a new deposit-management system and the introduction of an AI chatbot.

Building on this early success, last month the credit union announced the launch of Service Ventures. The CUSO will serve as an independent investment arm of the credit union, partnering with startups that share a commitment to supporting the industry.

“There are always new, creative ways to provide value to your members. That’s the core of it for me,” Regan says. “We have wins, but with every investment we make, we’re also asking what we missed and how we can be better.”

In the following Q&A, Regan touches on his background, the evolution of Service’s fintech strategy, and more.

In your own words, could you briefly walk me through your background and what led you to Service Credit Union?

Brian Regan: My background is mostly finance and the software industry. I started out at a cybersecurity company doing finance for their R&D organization, eventually moving into more of a product strategy-type role working on a cybersecurity platform. Then, I left and started my own software company focused on public cloud environments, helping companies understand what they’re spending in the public cloud and why. Service Credit Union was one of my customers. I also have family ties to the industry, so I had known people there for a while. When I was figuring out what I wanted to do next, I reconnected with [CEO David Araujo] and [CFO Michael Dvorak], and it’s been all uphill from there.

Why has it been important for Service Credit Union to focus on investments in fintech companies?

BR: 1) It’s another way to put assets to work. We make investments for a return, and every return we make we put to work to better our members’ financial lives. That’s one aspect.

2) It’s an interesting way to push our strategy forward faster. We can find technologies that are solving either our specific needs or needs we know are common in the industry and help them to build out those products. And it’s not just us. There are other credit unions out there doing this work and helping integrate fintechs into the credit union industry. It’s exciting. I think it’s a promising path.

Before the launch of Service Ventures, you were brought on as the credit union’s director of fintech innovation. What were your primary goals?

BR: It’s been a lot of learning. How does Service Credit Union work, who are our members, and what are their lives like? We have a really interesting membership with unique needs. I spent a lot of time trying to figure out what problems they need to solve. Additionally, a lot of time went into understanding how others in the organization, like our board, approach the investment decisions we’re making. How do they track success? What’s the risk tolerance we’re comfortable with, and how do we offset that risk? I’ve spent a lot of time setting that foundation, and now we’ve made our first four or five investments.

Is there an example of a partnership you’re particularly proud of?

BR: I think the company that probably has the coolest story and impact so far is ScribeUp. Our CEO saw them in a commercial. At the time, they were a B2C company with a subscription management product. David reached out and said, “Hey, what if we put this in online banking?”

We now have thousands of members using it. Every month, we can see how we’re saving members money with it. They’re finding and canceling subscriptions, and then they’re saying, “Hey, I want to use Service Credit Union to manage more of my financial life.” They’re pulling outside subscriptions and card transactions into our organization. So not only are we making members’ financial lives better, but we’re deepening that relationship.

What is one of the biggest challenges you see when it comes to credit unions making these sorts of investments?

BR: The thing about venture capital investments is you don’t just cancel a contract if you’re unhappy. You’re making a 10-year commitment. That’s the average amount of time it takes to “massage out” a venture capital investment – “massage out” meaning sometimes they’re good, sometimes they’re bad, but hopefully there’s an exit or a way to make your money back. This is a very different type of investment than most credit unions are used to making.

When you’re dealing with early-stage companies like us, it’s important to really look at who you’re investing in. How do we feel about this partnership? How do they want the relationship to go? There are always the core finances of the company to consider, but more than that, what do we think this could do for the industry if it’s successful?

The thing about venture capital investments is you don’t just cancel a contract if you’re unhappy. You’re making a 10-year commitment. That’s the average amount of time it takes to “massage out” a venture capital investment, meaning sometimes they’re good, sometimes they’re bad, but hopefully there’s an exit or a way to make your money back. This is a very different type of investment than most credit unions are used to making.

What was the driving force behind the credit union deciding to establish Service Ventures and expand your efforts?

BR: The real goal is to build a brand in the fintech industry for CUSO innovation. We are a corporate venture capital arm for Service Credit Union and our primary focus is on Service Credit Union and our members, but when looking for investments we are also concerned with solutions that are applicable to the credit union industry as a whole.

Now with Service Ventures officially launched, what’s next for you as General Partner?

BR: Going forward, a lot more of my time will be spent searching for the solutions that we need. For example, companies that aren’t CUSOs yet, who don’t even know what a CUSO is, but want to work with credit unions to solve problems. I meet with probably one company every week where that’s the conversation, and I want to meet with more. Success in the longer term will be looking at how we’re driving operational efficiency and the actual financial return, but I think the member impact metrics and the efficiency metrics stand up right next to the income metric.

This interview has been edited and condensed.

The post Service Credit Union Launches CUSO For Fintech Investments appeared first on CreditUnions.com.

According to the Department of Defense, approximately 400,000 military personnel PCS every year. On the civilian side, approximately 11% of Americans move every year for job-related reasons, according to World Metrics; 75% of those relocations are employer-initiated.

As trusted financial partners, Service Credit Union ($5.6B, Portsmouth, NH) and BCU ($5.9B, Vernon Hills, IL) strive to provide a holistic approach to moving, with targeted loan programs and financial education to help military families avoid loan traps.

Smoother PCS Transitions

Formed in 1957 to serve what is now Pease Air National Guard Base, Service Credit Union still boasts 37% of its 338,000 members as active-duty military, veterans, and their families, primarily from the Air Force and Army.

“We understand how frequent moves can impact financial wellness,” says Tye Jacobson, vice president of overseas operations at Service, which has 54 branches, including 14 in Germany.

Its relocation loan, a flagship offering, provides up to $3,000 for PCS-related expenses such as housing deposits, secondary vehicles, and relocation fees that military reimbursements might fail to cover.

Military relocation loans offer a low-interest, accessible alternative to predatory loans that can entrap service members in costly cycles of debt.

“Our loan gives military members a reliable option during transitions, allowing them to avoid risky lenders so they can better focus on their mission,” says Jacobson, a veteran of 28 years with New Hampshire’s largest credit union.

Money In Minutes. Members For A Lifetime.

When it comes to applying for the loan, approvals often take just minutes. An online PCS checklist and in-branch support also drive home the message that Service Credit Union is committed to making relocation stress-free.

In addition to relocation support, Service provides financial planning and budgeting resources, including educational tools and one-on-one counseling for critical topics such as managing moving expenses and building a savings for long-term goals.

“The biggest ‘to-do’ is to ensure loan products genuinely meet members’ needs,” Jacobson says. “Our role is to provide stability during the uncertainty of relocations, supporting both financial resilience and connection within our community.”

Long-term engagement is also a benefit for both sides of the relationship. By offering access to responsible, affordable PCS loans and ongoing education, Service strives to earn the trust of a lifelong member while helping them safeguard their financial wellbeing.

What Can You Learn From Like-Minded Leaders? Credit unions are responding to the evolving needs of members with a variety of products and services, including relocation assistance. What’s more, they are using expertise from one another to do so. Callahan Roundtables put leaders in the same room to share solutions, solicit feedback, pose questions, and more. Inspiration is a Roundtable away. Learn more today.

Full-Service Support For Corporate Relocations

BCU rolled out its relocation program to serve employees of healthcare equipment leader Baxter International but now helps corporate employees at nearly a dozen Fortune 100 companies, including through BCU’s own Target Credit Union division.

“Relocation is more than moving expenses,” says Joe McCarthy, BCU’s vice president of real estate lending. “It’s making sure our members have a financial roadmap for the future.”

With 35 years of lending experience, McCarthy oversees BCU’s relocation program, which includes a specialized team of lenders and certified relocation professionals (CRPs). It also maintains a robust relocation resource page.

“We support members with an understanding of the relocation landscape,” McCarthy says. “BCU’s team structure means continuity and specialized support for relocating members.”

The cooperative’s relocation program offers creative financing options such as bridge loans, jumbo loans, and other customized products. For example, working in partnership with the employers, BCU offers perks such as reduced closing costs and direct billing to corporate partners for relocation expenses such as real estate agent and appraisal fees.

The Benefit Behind Relocation

Support from programs like relocation loans pulls down the member’s out-of-pocket costs, thereby softening the financial burden of relocating.

“With every interaction we make the relocation financing experience more approachable, more dependable, and less stressful for our members,” McCarthy says.

The credit union has members in all 50 states and abroad, and its Global Client Service Program supports international relocations by helping to ensure foreign transferees can build a U.S.-based banking and credit profile with minimal barriers.

When it comes to long-term engagement and support, BCU, like Service, prioritizes education and support in relocation services that extend beyond loans, savings, and checking. Along with working directly with the credit union’s CRPs, members can take advantage of webinars, on-site presentations, and digital tools that include valuable tips on how to navigate moving challenges.

According to McCarthy, these resources help members achieve a successful relocation experience and build a foundation for ongoing financial wellness.

The post Help On The Homefront appeared first on CreditUnions.com.

Small Change? Not So Much.

A new checking product at St. Mary’s Bank ($1.5B, Manchester, NH) is pumping up membership numbers and supporting local community organizations. The 603 account — named for the state’s area code — allows members to select a charity they want to support from four different categories. For each debit card purchase users make, the credit union plans to donate 6.03 cents to selected nonprofits, with a commitment of up to $5,000 each to four organizations in its first year.

“This account is a great extension of what we already do as an organization,” says executive vice president and incoming CEO Ken Senus. “Giving our members the power to give to a charity that’s important to them.”

Since launching in August, the 603 account has already garnered 254 new member accounts and an additional $600,000 in deposits at St. Mary’s.

Read more in “Small Change Makes A Big Difference At St. Mary’s.”

How To Lead With Purpose

Why does your credit union exist? Do you serve your members and community in ways that set you apart from other financial choices? Rethink your role and responsibility to members, employees, communities, and the environment with Sustainable Business Strategy, a virtual learning experience Callahan & Associates offers in collaboration with Harvard Business School Online.

Learn More Today

Enlisting Former Military Members In The Credit Union Movement

Many credit unions focus on serving the armed forces, but AmeriCU ($2.6B, Rome, NY) is giving former service members an opportunity to serve the credit union movement once their time in military ends. The credit union created a 90-day internship program to help transitioning solders better understand what a career in banking has to offer.

“We were already helping transitioning soldiers with resumes and mock interviews,” explains Tina Thornton, assistant vice president of financial services. “An internship program gave us an opportunity to not only give on-the-job career experience to soldiers leaving the military but also to recruit them into full-time positions and transition them into the local community.”

The program has already resulted in two full-time hires for the credit union. Both stayed approximately one year, and one of those hires moved to a position at another credit union after relocating.

Read more in “Soldiers Sample A Credit Union Career At AmeriCU.”

Stopping Elderly Financial Abuse In Its Tracks

It’s the most wonderful time of the year — but not for everyone. According to a report from AARP, elderly financial exploitation (EFE) has doubled since the start of the pandemic. Fortunately, credit unions are stepping up to make a difference. The National Credit Union Administration has highlighted EFE as an initiative for the industry to keep an eye on, and institutions of all sizes can make an impact.

Atomic Credit Union ($532.5M, Piketon, OH) and AgFed Federal Credit Union ($351.2M, Washington, DC) have both identified the issue as an area of concern. The Ohio cooperative has in part relied on close connections with its membership — particularly aging baby boomers — to help monitor for potential risks. AgFed has instituted training around how to spot abuse and has procedures in place around how to respond when concerns arise.

Read more in “Elderly Financial Exploitation Is A Growing Problem. Here’s How To Help.”

The post Impact Strategies From December 2022 appeared first on CreditUnions.com.

Top-Level Takeaways

• The 603 account at St. Mary’s Bank pays 6.03 cents to one of four charities in New Hampshire with every swipe of a debit card.
• The credit union has committed to donating up to $5,000 to each category and will announce donations every year on June 3.

America’s first credit union has rolled out a creative checking concept that’s gaining ground and members.

The 603 account from St. Mary’s Bank in New Hampshire ($1.5 billion, Manchester, NH)  is designed to boost membership as well as benefit organizations that support the local community.

“This account is a great extension of what we already do as an organization,” says Ken Senus, who currently serves as executive vice president of St. Mary’s but will take the helm as CEO at the first of the year. “Giving our members the power to give to a charity that’s important to them.”

That’s exactly what the new account does — gives members control over charitable giving.

For every purchase an accountholder makes with their 603 debit card, St. Mary’s will pay 6.03 cents to one of four charities in New Hampshire. Those charities fall into one of four categories — animals, children and families, the environment, and food and shelter — that members can select for their contributions.

“These are the types of charities most in need and most important to members in and around New Hampshire,” says Senus, adding that determining the categories for giving was the easy part. “We have a paid day for employees to go out into the community and do volunteer work every year. These categories fit into where our employees volunteer their time.”

The credit union has committed to donating up to $5,000 to each category and will announce total donation amounts and recipient organizations every year on June 3, a date marked numerically as 6/03.

Why the numerical namesake? It has a special “ring” to it.

Although St. Mary’s Bank existed for close to 40 years before telephone area codes were implemented in October 1947, St. Mary’s and the state’s 603 area code have both become staples of New Hampshire.

“We can tie together 603 and charitable giving,” Senus says.

St. Mary’s leaders feel good about the categories and how the variety allows members to focus on something close to their heart. However, the recipients in each category can change from year-to-year, Senus says. For this first year, until June 3, 2023, the credit union will distribute donations to the New Hampshire SPCA (animals), Court Appointed Special Advocates (CASA) in New Hampshire (children and families), Society for the Protection of New Hampshire Forests (environment), and the New Hampshire Food Bank (food and shelter).

St. Mary’s 603 was the brainchild of Senus, who earlier this year was inspired by white papers about various checking account types. The EVP thought the credit union might need to diversify or expand its offerings as a way to grow or retain members.

“Every credit union is looking at their member base,” Senus says. “Baby Boomers are getting older, and this is a great way to grow the member base while also giving back.”

The more Senus studied the paths various credit unions were taking with their expanded checking offerings, the more he noticed a consistent pattern he knew St. Mary’s didn’t want to follow for the sake of simplicity.

Every credit union is looking at their member base. This is a great way to grow the member base while also giving back.

“Other credit unions were using a percentage of interchange,” the EVP explains. “We figured that would be harder to explain to members, so we went with the $0.0603.”

For members who have a hard time selecting a single category, St. Mary’s will allow them to change it.

“We saw a need out there,” Senus says. “Some of our current checking account holders are going to migrate into this account. It’s a good way for them to choose something that’s close to their heart.”

That’s the community aspect. As Senus intended, the checking account also provides an opportunity for St. Mary’s to grow its member base.

“People are moving to the big four banks because of their digital offerings,” Senus says. “Not only do we have comparable digital capabilities, we now we have something extra to offer to keep them local and to give back local.”

Keeping it local and supporting local economies is something inherently ingrained in most credit unions. For Senus – who made his home in New Hampshire beginning in 2017 after starting his banking career in audit, then IT and operations in nearby Rhode Island – these values are especially personal.

Senus is part of a statewide organization called Stay, Work, Play New Hampshire that works to increase others’ appreciation of local resources and strengthen the economy. As Senus explains, it’s not just about shouting from the rooftops how beautiful New Hampshire is or how it’s a great place to ski.

“We want families to grow up here and for kids to stay for college,” he says. “Too many times they leave for college or a career takes them somewhere else. New Hampshire is a great place to play, but it’s also a great place to stay.”

Launching the account was easier than some might anticipate, Senus says. The IT team handled all of the core system work in-house, using user-defined fields within the account type to create the categories that members choose. After launching in August, the 603 account has already garnered an additional $600,000 in deposits and 254 new member accounts.

St. Mary’s has done very little to promote the account so far, but that’s on purpose.

“We wanted to see how this was received as a soft launch,” Senus says. “If it resonates with any of our members, then it’s an easy conversion.”

In the coming months, the credit union plans to promote its 603 account heavily on social media, targeting millennials and Gen Z.

St. Mary’s Bank has a history of doing things in its own, creative way. It was the nation’s first financial cooperative, even pre-dating the term “credit union.” And it was operational six years before Alexander Graham Bell made the first transcontinental phone call in January 1915, placing a call from New York to San Francisco. Now, the credit union is at it again, using an area code to connect with members and helping members to connect financially with their community. At 6.03 cents per swipe, that’s real change making a real difference.

Lead With Purpose

Rethink your credit union’s role and responsibility to members, employees, communities, and the environment with Sustainable Business Strategy, a virtual learning experience Callahan & Associates offers in collaboration with Harvard Business School Online.

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The post Small Change Makes A Big Difference At St. Mary’s appeared first on CreditUnions.com.

Throughout September, CreditUnions.com has featured stories of how the industry is making an impact in consumers lives, including everything from strategies to reduce delinquencies, recruit younger members, providing financial education, and more. Read on for highlights from this month’s coverage.

Going All In For Community Development

As Clearwater Credit Union ($921.0, Missoula, MT) has embraced values-based banking, it has also turned to a program from the federal government to stretch its impact further. Having recently been certified as a Community Development Financial Institution, leaders from the Montana-based cooperative discuss the meaning of CDFI status, their struggles meeting the lending needs in their communities, and more.

Read more in “Clearwater Embraces Its CDFI Status.”

Financial Education Abounds

When Kentucky schools resumed in-person instruction in 2021, schools across the state were also in their first year of providing state-mandated financial literacy courses. Enter Abound Credit Union ($2.0B, Radcliff, KY), which stepped in to help, meeting with local schools to develop in-house curriculum that would not only meet state requirements, but keep students particularly younger ones engaged and entertained, all while taking some of the burden off of teachers. The end result has not only helped students from grades K-12 better understand money management and meet the state’s requirements, but also reinforced the credit union’s partnerships with local schools.

Read more in “Adding Fun To Financial Education.”

A Tie Between Financial Literacy And Lower Delinquency

Want lower delinquency rates? It might be time to roll out additional financial literacy offerings. According to data from Callahan Associate, among institutions with more than $100 million in assets, credit unions providing financial literacy education consistently report lower delinquency rates than those that do not. At midyear, there was a 21-basis-point difference in delinquency rates between those two types of institutions. What’s more, delinquency rates consistently trend downward at credit unions that make education tools available to members, whereas rates move up and down in some cases dramatically at credit unions that don’t provide such resources.

Read more in “Financial Literacy Offerings Drive Down Credit Union Delinquency Rates.”

Atomic’s Key To Capturing Young Members

A student-run branch program from Atomic Credit Union ($532.5M, Piketon, OH) that began 11 years ago with just five branches has expanded to nearly 60 branches and 421 volunteer student workers, making it one of the largest such programs in the nation. Along with nearly 6,000 active accounts and deposits totaling $3.1 million, the program is teaching students across the region about consistent saving and good financial habits.

“We provide each student with their initial deposit to open an account to ensure there is no one left out of the program,” says Atomic CEO Tom Griffiths.

Read more in “School Branches Earn High Grades For This Ohio Cooperative.”

Financial Wellness? There’s An App For That.

Service Credit Union ($5.2B, Portsmouth, NH) is helping improve financial wellness for members of all ages particularly younger demographics with Fin-Life, an app-based financial-education tool that uses psychology and behavioral science to reach consumers where they already are on their phones. The app is intended to teach users everything from budgeting to savings, tax planning, understanding debt and credit scores, retirement preparation, and more.

Read more in “Service Puts Financial Wellness In Members’ Pockets.”

The post Impact Strategies From September 2022 appeared first on CreditUnions.com.

For those digital-first members who want to take charge of their finances, Service Credit Union ($5.2B, Portsmouth, NH) has one thing to say: There’s an app for that.

The New Hampshire cooperative recently rolled out a smartphone app that engages members via a DIY approach to holistic financial wellness.

“There is excitement out there for an easy, relatable way to manage finances,” says Anna Baskin, content manager at Service. “We’re happy to be able to provide that to our members.”

The app, which Service says is already reaching hundreds of users, is called Fin-Life, and it uses advanced response technology to customize the experience for each user depending on their goals. The financial wellness journey from creating and sticking to a budget to planning for the future for each user is different depending on whether their focus is eliminating debt, saving for retirement, planning for taxes, or any one of nearly a dozen goals.

The purpose of Fin-Life is to use behavioral science and psychology to coach its users through various financial wellness topics in just a few minutes a week, Baskin says. By asking its users questions about their lifestyle and budget, the app customizes advice to help users meet their goals.

Users can also connect the app to their banking accounts for a full-picture view of their finances. The ultimate goal of Fin-Life is to put users in control of their finances and help them meet their financial goals.

The app walks first-time users through a 10-minute setup process to create a login and answer a series of questions about their current financial status and goals.

“For example, [it asks if] they have outstanding student loans, credit card debt, a mortgage, what they are saving for, etc.” Baskin says. From there, Fin-Life customizes a financial wellness plan.

By asking its users questions about their lifestyle and budget, the app customizes advice to help users meet their goals.

That financial wellness plan includes an ever-evolving and updated to-do list of both short- and long-term goals and ongoing reminders that prompt the user to engage with the app and complete tasks. This gamification of personal finance is something Service CU has wanted to do for the past couple of years to pique the interest of Gen Z and Millenials who are getting their financial literacy information in creative ways.

According to the 2022 Financial Literacy Survey from Investopedia which surveyed 4,000 adults from each of the predominant generational categories of Gen Z, millennials, Gen X, and baby boomers the 18-to-25 year-olds in Gen Z get 45% of their financial literacy information from YouTube and 30% from TikTok. For Millenials, which range in age from 26 to 41, 87% of their information comes from either basic internet searches or YouTube videos.

“Our relationship to money, investing, and financial planning has radically changed in the past few years,” says Investopedia editor-in-chief Caleb Silver. “What hasn’t changed is the need for relevant financial education but in a modernized curriculum.”

Service saw the writing on the wall and began looking for partners to help them develop a better way to reach members.

“Improving our members’ financial wellness is part of our mission, so we were looking for a partner that could help us achieve this in a fun and easy-to-use way,” Baskin says. “Pocketnest was created by and for Gen X, millennial, and Gen Z users, and that is our target audience for this effort.”

According to the 2018 annual report for the Certified Financial Planning Board, 90% of 18-to-34-year-olds are overwhelmed by financial planning. According to Pocketnest, the same percentage of people are missing critical elements in their financial plans. The app integrates with not only Service’s banking platform but the platforms of other financial institutions as well, allowing non-members to use the app.

“Fin-Life sends regular prompts via push notification and email to engage with the user to complete outstanding tasks,” Baskin says. “We think Pocketnest does a great job of simplifying and making enjoyable the not-so-fun task of financial planning.”

Since launching in mid-June, Fin-Life has 1,672 users on the platform. And more are joining every day. The goal of Fin-Life is to fix those gaps by understanding individual goals and then using technology to develop next steps and engage members in their own journey.

The post Service Puts Financial Wellness In Members’ Pockets appeared first on CreditUnions.com.

Digital Federal Credit Union ($9.9B, Marlborough, MA) and Service Credit Union ($5.4B, Portsmouth, N.H.) have each teamed up with Mobius Mobility to offer loans for the company’s Ibot, a prescription device similar to an electric wheelchair but that allows users a greater range of functionalities, including the ability to rise to eye level, go over curbs, uneven surfaces, and more.

Leaders at both institutions saw the Ibot in action at community events and reached out about forming partnerships, in part because they share similar geographies Mobius is headquartered nearby in Manchester, NH. With partnerships in place, Mobius began working with both credit unions to find ways to help those in need.

“Your average electric wheelchair is probably $3,500, but it has a short-term battery life, and it can’t do much,” says Caleb Cook, DCU’s vice president of consumer lending. “It can go on flat streets but is not really a mobility device for all-day mobility needs. It can get you from Point A to Point B, but if you come up on a curb, you’re kind of stuck.”

Although each credit union structures its loans differently, the commonality between the two is that neither is using it as a profit driver. Rather, the intention is to make the chairs as accessible as possible to those who need them, eliminating debt-to-income and FICO score requirements while partnering with nonprofits that can provide down payment assistance and more.

Mark O’Dell, vice president of lending at Service, says one of the directives from Mobius was to make the loan process as simple as possible.

“There’s a ton of red tape for people to go through,” O’Dell says. “You have to have a prescription to even pursue this product. There’s a lot of hoops to jump through and [Ibot inventor Dean Kamen] didn’t want financing to be another hurdle. We aren’t going into this thinking this is going to be a big loan production opportunity for us to grow membership this was fulfilling a specific need.”

According to O’Dell, some borrowers need a cosigner to secure a loan because the devices average $40,000 thanks, in part, to the wide variety of features that come with the chair as well as the fact no two chairs are exactly the same.

“Individuals have to get fitted for a chair,” O’Dell explains. “It’s a custom seat based on the weight and the needs and the type of disability the user may have.”

The devices can only be fitted at Mobius’s New Hampshire headquarters for now, O’Dell adds, so there is some travel and lodging involved, but the credit union is willing to wrap some of those costs in with the loan.

Part of the need for the loans comes from the fact that the high cost of the devices has resulted in some would-be users getting being priced out. And unlike traditional or electric wheelchairs, insurance and government aid don’t yet cover the costs of these. Mobius is working to get them covered under Medicaid, but that process is arduous and uncertain.

Lucas Merrow, CEO of Mobius Mobility, says one problem the company continues to deal with is that Medicare and private insurers often only reimburse for basic wheelchair products that cover daily living inside the home. So products that come with a higher price tag but provide a wider range of mobility options are often overlooked in favor of cheaper, more basic options.

“Medicare doesn’t want to reimburse a beneficiary for anything other than being mobile inside the home, which is kind of absurd in 2022, given the advances in technology and robots,” Merrow says. “Not to say you can’t get reimbursed, but you can only get reimbursed to the extent that a comparable product could get someone around inside a level apartment.”

There isn’t much competition for these loans right now, and DCU and Service are believed to be the only two institutions offering them.

“If we do a dozen [Ibot] loans this year, that’s great,” Cook says. “We’re not pricing it for the risk; we’re not worried about that. If we have to, we’ll work with those folks to do the right thing.”

Neither credit union has an Ibot loan in the pipeline yet, but executives chalked that up to the long lead time associated with the product, including working with insurance providers, seeking any available assistance from nonprofits, being fitted for the devices, and more.

“We can do the loan real quick, but the sales cycle from getting someone pre-screened to getting them in a chair is about three months,” Cook adds.

Although mobility is a chief component of the devices, there’s far more to it than just getting around, emphasizes O’Dell.

“It’s about dignity,” he says. “To say it’s a wheelchair is like comparing a bicycle to a car. They’re just two different things. It’s exciting to be partnering with this kind of company that can make such a difference in people’ lives.”

Expanding Access

Leaders at both Service and DCU say they expect most interest in Ibot loans will come from outside their institutions’ current membership and possibly well outside their geographical footprint but the product lines up with an existing offering at DCU.

For more than a decade, the credit union has offered a suite of access loans designed to serve disabled consumers. Those range from stair-climbing chairs to rehabilitative equipment, home modifications, vehicle conversions and beyond.

That program was born out of the strong demand the credit union saw to cover costs for things such as vehicle conversions. In those instances, DCU offers loans for not only the cost of the vehicle but also for costs associated with the conversion — everything from adding hand controls to reconfiguring seating arrangements, and more. Those additional fees can add as much as $10,000 to the cost of the vehicle, so DCU allows for longer terms with a slightly higher interest rate, which helps protect the credit union since those vehicles are particularly difficult to unload at auction should a repossession be required.

DCU initially channeled some of those deals through indirect lending, but Cook says DCU shifted its focus to direct in part because of high dealer fees. The shift has worked. Existing members and potential members come to the credit union for financing through its website, which includes a specific page focused on access loans, along with online applications.

“They can click ‘apply now,’ and go through a regular car loan process,” he says. “We underwrite it and try to get them approved just like a car loan.”

Although exact numbers were not available, Cook says DCU has made thousands of mobility vehicle loans and several hundred access loans for items such as wheelchair ramps and in-home medical devices.

“It is not a huge book of business compared to our core products like credit cards and auto and personal loans,” he notes. “The volume of business has been pretty consistent over the years, although our access loans did see a decline over the past several years as rates in general were very low, so there were other affordable options such as cash-out mortgage refinance, low unsecured rates in general, and the emergence of buy now/pay later options.”

Because comparatively few lenders focus on the disabled market, many members have returned for additional loans for new services over the years, Cook adds. While those loans have affordability requirements, the underwriting is designed to be as flexible as possible. Lenders generally consider debt-to-income ratios, annual income, and unsecured debt levels.

“Access is an umbrella term for any access need you have when you’re disabled,” Cook says. “It could be a wheelchair or a van, it could be in-home medical devices that are expensive, it could be custom modifications to your house. We’re pretty loose as to what we consider an access loan.”

The post Increasing Mobility One Loan At A Time appeared first on CreditUnions.com.

Staff members today find themselves either working in an office surrounded by new protocols to keep themselves and members safe, or working at home surrounded by personal pressures as they try to fulfill their professional responsibilities.

When credit unions had to close locations and send staff home this past spring, many did what they could to support and incent workers; however, it’s not easy to replicate the social engagement that accompanies in-person work environments.

That hasn’t stopped them from trying.

Here, five credit unions from New Hampshire to California share how they are engaging staff on a professional as well as personal level.

Affinity Plus Federal Credit Union

Approximately 250 of the 530 or so employees of Affinity Plus Federal Credit Union($3.0B, St. Paul, MN) have been working off-site since mid-March. But theTwin Cities cooperative has no fear. What it does have is Dairy Queen.

We have a Dairy Queen in every one of the 29 communities in which we have branches,says Julie Cosgrove, chief talent officer at Affinity Plus. So, we sent every employee a gift card to have a treat night with their families.

That gesture is just one of many the credit union has extended to its staff, whose work-at-home teams have been told to expect things to stay that way until at least next April 1.

It’s an unpredictable time,Cosgrove says. Taking one step at a time is the best approach for us and our team members.

To help ease the anxiety that accompanies unpredictability, the company has sent gift cards and credit union swag to staffers’ homes as well as celebrated employee appreciation week with a drive-thru gift parade in which the leadership team lined the parking lot and handed out blenders for making smoothies and milkshakes at home.

Many drove through with kids in the back seat, spouses up front, and dogs’ heads sticking out the windows, Cosgrove says. It created a break, a moment of joy, and an opportunity to connect and recognize our team members.

Although Affinity Plus employs many tactics, it has a singular goal.

Our culture is built on a foundation of care, connection, and gratitude, Cosgrove says. We’ve sought ways to demonstrate this to our employees over the past six months. We’ve focused on showcasing our care for them, ourdesire to connect, and our genuine appreciation of their hard work and heart that they bring to the credit union.

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KeyPoint Credit Union

KeyPoint Credit Union($1.4B, Santa Clara, CA) is relying on digital channels to help its workforce of 175 people make it through these trying times.

The credit union offers a robust resources page on its intranet as well as joint sessions such as a parent support group.

In this tough environment of having kids at home doing remote schoolwork, we’ve tried to find how we can support working parents, says LeeAnne Giblin, chief human resources officer at the Silicon Valley cooperative. We’ve hosted three different virtual sessions for parents to share ideas on what’s working and what tools they have found helpful. Some staff have expressed this support group helps them know they’re not alone.

Their dogs aren’t alone either as evidenced by the Hug Your Dog Day photo collage. That was among the lighter engagement activities that fill the credit union’s intranet calendar. KeyPoint’s CEO, Brad Canfield, also has chipped in with more than a dozen virtual chats with small groups since May.

They can ask him questions and he can ask them questions and get a first-hand pulse on how everyone is doing, Giblin says. These have proven to be beneficial.

Logix Federal Credit Union

Logix Federal Credit Union($7.6B, Burbank, CA) currently is at 95% remote for its workforce of 770 people, including the entire contact center

When the pandemic coast is clear, flexible work arrangements are being considered, including having a mix of remote and on-site work by rotating team members in and out of the office, says Natalie Crosby, vice president of the cooperative’s Member Service Center.

In the meantime, engagement is kept up through virtual team meetings as well as one-on-one sessions between managers and each of their team members to discuss their individual contributions as well as their level of engagement, Crosby says. But it’s not all work.

Fun is part of our culture and greatly valued within our organization. We work very hard but we play hard, too, to help balance it out, Crosby says, adding, It’s much harder to celebrate successes on the same scale we used to.

But they give it a go, indeed. For instance, they celebrated National Customer Service Week in early October by, among multiple activities, playing virtual bingo (with transaction types as the squares), hosting a virtual (non-alcohol) lounge during a lunch hour, a selfie day that drew pics of babies, dogs, cats, and amusing filters, and a Mad Hatter Day.

Participation was encouraged with raffle drawings that featured staffers’ kids pulling out the winning names, while a Grub Hub account was opened to to help motivate our team members in the fashion we’ve always been so great at: breaking bread and sharing food, Crosby says.

It seems to be working. We’ve received a lot of appreciative emails from team members, the Logix vice president says. They loved seeing each other’s faces again and loved that it was not just work-related, but for fun.

And, when it’s over: One thing I know for sure, is that once it’s safe to do so, she says, I’m sure Logix will have a very big family reunion!

Service Credit Union

At Service Credit Union ($4.4B, Portsmouth, NH), approximately 80 of its 130 employees are still working remotely. This includes underwriters, call center representatives, and people with administrative duties, says Meghan Leach, assistant vice president of the contact center for the New Hampshire-based financial institution. And at this point, the credit union has no plans to change.

We’re remaining in this mode at least until the end of the year, Leach says.

Service distributes a newsletter to engage employees. It also has encouraged staffers to respond to questions such as what they like most about the fall, asked them to share baby pictures for a guessing contest, and sponsored spirit weeks in which employees selected the days.

Striking the right balance between getting the work done and catering to employee needs is the goal, Leach says. To that end, the credit union has surveyed its team to determine how people prefer communications and if leadership is communicating enough.

We have some in-person representatives working with them as well, Leach says. Keeping things fair can be challenging at times.

Teachers Federal Credit Union

Teachers Federal Credit Union ($8.2B, Smithtown, NY) has fully re-opened its 31-branch network in New York City and on Long Island, with modified staffing inthe branches. The back office is working at 50% capacity in-house, says president and CEO Brad Calhoun, as the big cooperative follows state mandates and social distancing best practices.

To keep up morale among the workforce of nearly 740 people as they rotate in and out of the office or work full time at home, TFCU has deployed a range of tactics, including a new intranet that encourages social media-like interaction and multiple videoconferences, including quarterly sessions for all employees to ensure they are up to date on their cooperative’s financials, initiatives, and internal news.

In-person activities have also continued. For example, the credit union sponsored a summer social with lunch, activities, and giveaways. A team of 30 team members also volunteered at a local food bank to help pack more than 800 boxes.

Volunteerism can help people feel engaged and like they’re making a difference, Calhoun says.

Earlier this year TFCU began using Energize, an internal recognition platform, to acknowledge, thank, and congratulate individuals for their contributions while sharing their stories across the enterprise, Calhoun says.

It’s been a great driver of morale, particularly when we’re not able to recognize one another in person, the TFCU chief executive says.

According to Calhoun, during the height of the pandemic in New York, from late March through mid-June, nearly 2,000 recognition awards were given to the staff with 91% of its employees receiving one or more award. Such behaviors aligned with the credit union’s core organizational values of respect, teamwork, and member-focus.

On a personal level, I connect with each employee on their birthday, Calhoun says. It’s a way to individually recognize teammates and take a moment to say, Thank you, your contributions are seen and appreciated.

The post How To Manage Morale During Social Distancing appeared first on CreditUnions.com.

This Veterans Day, see how military credit unions stack up to the industry as a whole. Read Military Credit Unions Lead The Way On Veterans Day on CreditUnions.com.

At first glance, these 172 cooperatives might not seem to have a lot in common, but they all are working to deliver real benefits to military members, veterans, and their families.

Here, six credit unions offer best practices and tried-and-true tips to better serve and support those who serve.

Making Lives Easier

For Service Credit Union ($3.7B, Portsmouth, NH), serving military members is all about making their lives easier and providing the best benefits available.

Lori Holmes, Assistant VP of Marketing and Communications, Service Credit Union

Our military members are busy serving our country, says Lori Holmes, assistant vice president of marketing and communications at the credit union. That’s why we look for ways to streamline products and provide them with benefits that are easy for them to receive.

Those benefits include earning 10% APY on a Deployed Warrior Savings Account when in a designated combat zone. Other checking account options offer perks such as ATM fee rebates up to$30 and a 0.75% discount on an auto or personal loan.

Service also offers Readiness Pack Loans of up to $2,500 for military members to use for moving expenses or other necessities. And, when members maintain at least a partial direct deposit with the credit union, they’re automatically eligible for loan discounts and the best checking account the cooperative offers.

Focusing On Families In A Blended Community

Serving military members and their families is intertwined with a community focus at Northern Credit Union ($277.9M, Watertown, NY). Locally, Fort Drum has brought a lot of military members and veterans to the cooperative. It’s a transient area, and the bases has one of the higher rates of deployment. However, many people decide to stay in the region which is approximately four hours from Niagara Falls after transitioning back to civilian life.

Christine Booth, VP of Member Relations, Northern Credit Union

Fort Drum has no on-post schools, so the children attend our public schools and most use our community healthcare system, says Christine Booth, Nothern’s vice president of member relations. When we serve our community and schools, we’re serving those soldiers’ children.

For military members, the credit union has been offering VA mortgage loans since 2010 and to date has made $17.9 million in loans to help 103 families. Northern also offers a 90-day, 0% interest furlough assistance loan to support military personnel in the event of a government shutdown.

The credit union also works with the USO’s Pathfinder group to assist military personnel in the transition to civilian life. Its Equity Advantage mortgage works like a VA loan and offers up to 103% financing along with a 6% seller concession that allows borrowers to roll in closing costs and avoid paying a funding fee or private mortgage insurance. It’s an alternative solution for veterans and military members who might not qualify for a VA mortgage.

But Northern offers military perks in less dramatic, more everyday ways, too.

We provide special parking for veterans and active duty military at our branch just outside Fort Drum, says Dan Estal, vice president of lending. These are just a few of the ways we show how proud we are to serve the men and women who serve this nation.

Understanding Member Needs

When Navy Federal Credit Union ($110.1B, Vienna, VA) wants a deeper understanding of the military members it serves, all it has to do is ask one of the many military spouses it employs. And although this is not the sole means of gathering market insight, those employees have helped the largest credit union in the United States shape a definition of service.

CU QUICK FACTS

Navy FCU
Data as of 09.30.19

HQ: Vienna, VA
ASSETS: $110.1B
MEMBERS: 8,851,309
BRANCHES: 335
12-MO SHARE GROWTH: 20.0%
12-MO LOAN GROWTH: 10.1%
ROA: 1.65%

Service means being there when they need us, says Jaspreet Chawla, vice president of membership for Navy Federal.

To this end, the world’s largest credit union offers 24/7 call center support, convenient mobile and online banking access, 335 branch location including 26 overseas, and a worldwide ATM network.

The credit union also offers support and guidance for this transient membership during inflection points such as enlisting, relocating (or PCSing, which stands for permanent change of station), deploying, and transitioning to civilian life.

To aid members during these stages, Navy offers checklists and bite-size resources as well as tailored products such as its Free Active Duty Checking that provides early direct deposit, free checks, and up to $20 in ATM rebates.

Navy Federal also looks at its members’ entire financial picture so the credit union can serve as a partner for individuals and families. In addition to teaching financial literacy, the cooperative encourages its members to create positive habits. For example, if a member is close to paying off a car loan, the credit union recommends saving part of that recurring debit amount.

Taking A Leadership Role

Serving military families and veterans, along with the broader civilian communities that support the base, has always been a focus for Fort Knox Federal Credit Union ($1.7B, Radcliff, KY). The credit union offers a worldwide network of ATMs, recognizes direct deposits up to two days early, and provides on-post locations. It also has taken on a leadership role in the area of financial health.

Ray Springsteen, CEO, Fort Knox FCU

We’re making long-term, impactful investments in our military and in our community, says Ray Springsteen, chief executive officer of Fort Knox FCU.

In January, the credit union rolled out the Vault, an interactive financial literacy program with EVERFI that empowers students to make smart financial decisions, at a local school that primarily serves military children.

With Kentucky ranked 45th in financial literacy, these investments are vital, Springsteen says.

In terms of direct military support, the credit union and its members donate approximately $70,000 annually to USA Cares, a non-profit that assists military families in crisis. In 2019, the credit union’s on-post team helped double pledges during Military Saves Week and the cooperative offers online and in-person financial education resources designed specifically for veterans. The annual Veterans 2 Entrepreneurs workshop, hosted by Fort Knox FCU in partnership with the Kentucky Small Business Development Center, provides mission critical information to help Veterans build and grow their small businesses.

Veterans programs, financial wellness, and food donation are three ways this Kentucky credit union serves its local citizens. Read more in More Than Money: How Fort Knox FCU Makes A Community Impact.

This is just the tip of the iceberg, says Springsteen. Looking ahead to 2020, we’re going to be investing even more in military and community financial health.

Providing Financial Education

The military represents a majority of members and is large part of the cooperative identity of Frontwave Credit Union ($891.8M, Oceanside, CA), which until 2018 was known as Pacific Marine Credit Union.

Todd Kern, CMO, Frontwave Credit Union

We serve not only our marines and their families but also the communities that support those marines, says Todd Kern, chief marketing officer of Frontwave.

In conjunction with the expansion of its on-base presence, the credit union also has expanded the financial education it offers both military and community members, educating groups in both classroom and one-on-one settings. And like the members its serves, Frontwave’s military relations team is an active group. Its members participated in 88 events in the month of September and connected with 7,000 marines.

From how to use a bank account or loan product responsibly to buying a home and preventing fraud, Frontwave is on the front lines of financial wellness, with certified financial educators providing the information and counseling young marines need.

An educated consumer is healthy for our membership, our community, and our credit union, Kern says. Whether a member is starting out or moving up, we’re there to help make financial dreams come true.

Supporting Active Duty Family Members

For ARC Federal Credit Union ($90.0M, Altoona, PA), working with local organizations to support the military is deeply personal. Earlier this year, the credit union partnered with Military Families Ministry to provide care packages to servicemembers abroad.

Liesl Kapfhammer, Marketing Coordinator, ARC FCU

Some of our staff have active duty family members who mentioned how impactful the care packages from Military Families Ministry were, says Liesl Kapfhammer, ARC’s marketing coordinator.

The credit union promoted its Socks for Soldiers drive throughout the summer, collecting black crew and ankle socks at both branch locations as well as at the gates of three local MiLB baseball games with the Altoona Curve. As an organization with local roots, Military Family Ministry tries to ensure items ship to soldiers stationed abroad but from the credit union’s home area.

In terms of helping other credit unions find the right community partners, Kapfhammer suggests credit unions look to their members and staff.

See what matters most to them and what they feel passionate about, the marketing coordinator says. One of the things that sets credit unions apart is our connections to our members. A great way to build those connections is to support the things that our members care about.

The post 5-Star Service For Those Who Serve appeared first on CreditUnions.com.

As technology rapidly advances and its role in the daily operations of credit union’s expands, institutions that fail to adapt to the shifting landscape and remain even with the curve may find themselves struggling to provide what will become basic but necessary member services. This collection features six articles that directly focus on aspects of technology: from insight on how to leverage an investment in innovation, to the role of technology in both internal and external operations such as online services, risk mitigation, predatory lending competition, or security management.

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