By Steve Kelley
Unless you’ve been hiding under a rock (and some of you may wish you had been), you know that our president has recently signed into law one of the most far-reaching pieces of legislation ever enacted – or at least, enacted in most of our lifetimes. And whether you like it, hate it, or fall somewhere in between, you have to admit: there are going to be some dramatic changes around here, though it may take a while before the full impact is known.
Here at BCI, we’ve been working on something that we think could bring about some dramatic changes as well, at least for the credit union movement. Difference is, we don’t think it’s really going to take so long for these changes to make an impact (and we’re quite certain the impact will be a positive one!).
In our now-completed “Why conserve energy?” video series available at http://www.bcihq.com/videos/index.cfm, we’ve shared our view of most energy conservation ... READ MORE
By Steve Kelley
If you’re a regular reader of this blog (or follow us on Twitter or YouTube), then you’re probably aware that we’ve launched a video series focusing on energy conservation in credit union buildings. The first three episodes are already out, and three more are on the way. I hope you’re watching, and inviting others to do so as well.
In Episode 3, which went online yesterday, we finally disclosed how much our engineers think credit unions could save annually in energy costs if they underwent retro-commissioning (a comprehensive process of making a building more energy efficient): over $23 million. I don’t know about you, but to my way of thinking, that’s a significant amount, especially at this time of mounting loan losses and disappearing capital.
Of course, these savings wouldn’t come without cost. We estimate that to realize the $23 million in annual savings, credit unions would have to invest approximately $57 million. And yes, that’s a lot. But if you do the ... READ MORE
By Steve Kelley
I read a good article this week by Leigh Anne Terry of Callahan and Associates on CreditUnions.com (5 Ideas Your Credit Union Can Take to the … Bank) that should probably be required reading for everyone in the credit union movement. Ms. Terry makes the point that “going green” and “saving green” aren’t mutually exclusive. We couldn’t agree more.
Though you ought to read the article for yourself, the gist of it is that there are a number of environmentally-friendly things that credit unions can do that will either save money or expand business opportunities. The five she lists include going paperless where possible, making loans for environmentally-friendly vehicles (including bicycles), using “green” architecture when building new buildings (BCI can help you with that!), making home loans for environmentally responsible dwellings, and offering remote capture to cut down on the trips members have to make to a branch.
These are all great ideas, and I would ... READ MORE
ALEXANDRIA, Va. – Last week’s disclosure of the elimination of all capital at U.S. Central FCU means more losses are going to start trickling down to corporate credit unions and to their natural person credit union members in the coming days.
The depletion of the corporates’ capital began in 2008, continued through 2009 and is expected to continue through this year, as illustrated in the more than 500 comment letters received by NCUA on its corporate rule proposal. This comes as NCUA is preparing to charge another assessment for the corporate credit union bailout.
For 2009 a stunning 3,817 credit unions, or just under half of the total, reported losses. That compares with 1,644, or 21% for 2008.
In California, where the failure of WesCorp FCU wiped out $2 billion of credit union capital, credit union giant LBS Financial FCU said it lost $8 million on the WesCorp failure. The $1.6 billion credit union also paid NCUA $1.4 million for its share of the corporate bailout. Redwood ... READ MORE
Come visit us in Booth 125 at the Gaylord Hotel in Grapevine, Texas on April 7th, 2010. BCI is exhibiting at the Texas Credit Union Annual Meeting & Convention. For more info on the show http://events.tcul.coop/annualmeeting/
CUNA MADISON, Wis. Some employees at credit unions who used to work for banks say their work experience is significantly different when their clients are not just customers but also owners, according to a publication for bankers.
Several advisors and program managers who switched jobs to credit unions from banks said the genuine service culture perpetuated by credit unions creates member loyalty worth noting (bankinvestmentconsultant.com March 1).
"The relationship with members is just incredibly compelling, and the internal support is also amazing, because the employees at a credit union have a real drive to make a difference in the members' lives," Michael Gradl, a program manager at Redwood CU in Santa Rosa, Calif., told the publication.
Larry Braley moved from Guaranty Bank in Stockton, Calif., to the Kern Schools FCU in Bakersfield, Calif., because, with $1.8 billion in assets and 185,000 members, it was the biggest financial institution in Bakersfield. Initially, he ... READ MORE
“The CEO of Toyota was on Capitol Hill yesterday and he said he’s not sure if they’ve fixed all their problems,” Rep. Spencer Bachus, told attendees at Wednesday morning’s General Session. “The same could be said of Congress—we’re not sure if we’ve fixed all the problems that caused the recent financial meltdown."
“We need to be careful not to paint with too broad of a brush as we try to identify the culprits and enact solutions. All financial institutions didn’t cause the meltdown. All Wall Street firms weren’t part of the problem.”
Bachus thinks Congress has missed the mark and hasn’t addressed some issues that played a prominent role in the recent financial meltdown:
Credit reporting agencies. “We have not adequately addressed the role they played in all this.”
Housing policy. “We all assumed everyone should own a home, but not everyone could afford a home. Consequently, people took on too much debt.”
Too big to fail. “The thinking that some institutions are too big ... READ MORE
New Vision Credit Union formally Neenah Foundry Credit Union wanted to relocate their branch to a more convenient location that would provide better member service in a contemporary state of the art banking environment.
This project consists of a Tenant Space build-out of 3,202 square feet, and the addition of an exterior drive-thru canopy of 385 square feet for a total project size of 3,587 square feet in an out-lot building of a high profile retail location on a major commercial strip with easy access to the freeway.
BCI faced a number of challenges during the Design and Construction phases of this project but most importantly, minimizing any disruptions to the Credit Union’s business in closing their existing office and re-opening in a new location.
The Design challenge was to provide innovative solutions for delivering financial services to the members, increasing convenience, efficiency and satisfaction, and thereby, helping the Credit Union grow their business.
This ... READ MORE
BCI has broken ground on a building expansion and remodeling project for the First National Bank in Seiling, Oklahoma. It is BCI's first project for the bank, which began as Farmers and Merchants Bank in 1901.
The project will add over 2,300 square feet to the bank's headquarters, and include a complete remodel of the existing 3,900-foot space. The building, built by the bank in 1925, was last remodeled in 1981.
Design Project Manager Kyle Edwards headed the design team for the project, which is anticipated to be completed in seven months.
February 22, 2010 – Randall Smith, CUinsight.com
Washington – Sunday night the WOCCU held a reception for supporters of the world credit union movement at the Cannon House and CUinsight.com was honored to be in attendance. Credit unions from across the country and around the world were represented at the event.
The WOCCU event was highlighted by the work CU Aid is doing providing relief to earthquake ravaged Haiti. To date the credit union community has donated over $800,000 to the Haiti relief effort through CU Aid. The WOCCU stressed that more work needs to be done now and for many years into the future.
Follow the link below for more information on the credit union community’s efforts to help Haiti and to make a donation.
http://cuaid.coop/site/PageServer/.
By Frank J. Diekmann, Credit Union Journal
How prepared are you for the "i-Member?"
The unveiling by Apple Computer of its much-anticipated iPad has led to considerable speculation about the niche it will fill and in particular its effect on the newspaper, magazine and book publishing industries.
But if you've dismissed the device because you identify with the PC in those PC vs. Mac commercials and further find Mac loyalists to be just plain annoying in their proselytizing, you're making a mistake.
What Apple unveiled at the Consumer Electronics Show in Las Vegas wasn't a nifty device, it was your future when it comes to member interaction. The iPad won't even begin shipping for another two months, so it's too early to tell how readily it will be adopted. But that's essentially irrelevant. In the inverse of the old axiom, when it comes to consumer technology the tree doesn't roll far from the Apple.
The Apple PC user interface. The iPod. The iPhone. All created either a ... READ MORE
MADISON, Wis. (2/4/10)--Credit unions need to capitalize on consumer angst, update delivery channels and sharpen their value proposition for non-members, especially young members, according to a new report from the Filene Research Institute.
The report is titled, "Customer Experience and Credit Union Opportunities: A Collaboration with McKinsey and Company." Filene collaborated with McKinsey research to conduct qualitative interviews with 31 credit unions about why credit unions command stellar member loyalty and how they can leverage that loyalty.
Making existing credit union members more satisfied is very difficult, and probably the wrong goal, says the McKinsey surveys. Consumers consistently identify credit unions as trusted financial providers, loyalty doesn't translate automatically into increased wallet share or membership growth, Filene said.
The report identifies several challenges credit unions face:
- While consumer perceptions of credit unions are demonstrably ... READ MORE
By Steve Kelley
I’m typing this while recuperating from a 3-on-3 basketball tournament I was crazy enough to play in last weekend ( my fingers still work, though most other parts are questionable). And though I may question my sanity for participating, the events did bring to mind an important truth about credit unions.
It seems that someone had the great idea to put together a tournament and invite people who had no business on a basketball court to form teams, so some friends of mine signed up and asked me to join them. Now, I am 50 years old, have never been much of a player, and have not laced up the old sneakers for years. Plus, two of my four teammates were also 50 (fortunately we were allowed to have five on a team to allow for subs). So, although the other two were young and athletic, our chances did not look good.
What happened, though, surprised me. Facing teams that were made up of younger (and healthier) players (only one other guy in the tournament was over 40!), we ... READ MORE
Credit unions can “Connect in Chicago” and get all the information they need to plan and register for NAFCU’s 43rd Annual Conference and Exhibition – set for July 20-24 at Navy Pier in Chicago –by going to www.nafcu-annual.org.
The new Web site, launched yesterday, provides a wealth of information about this year’s Annual Conference, including speakers, breakout sessions, registration and hotel information, exhibitor information and places to visit in Chicago. This is the third year NAFCU has created an online experience for AC attendees; the two previous sites won Graphic Design USA awards.
“With its unique and vibrant feel, this Web site perfectly captures the distinct spirit of Chicago while putting the latest and greatest conference information at attendees’ fingertips,” said NAFCU President Fred Becker. “When they visit the Web site, they’ll find that the tracks and sessions have been redesigned to meet their changing needs.”
TechMecca 2010 was true to this year’s theme, “Rock the Business”, kicking off the conference to Stevie Ray Vaughn music welcoming attendees. Bob Galman of the Texas Credit Union League along with Chris Wiliston (IBAT) and Dennis Simmons (SWACHA) opened in the 8th TechMecca event. A conference where credit unions and banks live in harmony.
The challenges of the current economic environment present a dynamic and unprecedented growth opportunity for the community driven financial institution. Stop by BCI's booth #217 to discuss how our Strategic Planning Analysis will help you identify and create your future growth opportunities.
Despite the down economy, A new study by Frost & Sullivan indicates that reveals that companies in the ICT sector have actually paying more attention to environmental initiatives -- to save cost and improve competitive differentiation as well as enforce brand loyalty. However, given the tighter budgets and higher stakeholder expectations, such initiatives need to demonstrate a positive ROI.
In its third annual edition, Frost & Sullivan's study "Sustainability in Telecoms: Return on Environmental Investments," focuses on a selection of companies that have adopted a longer term, measurable and sustainable way of doing business. This study identified further best practices and discussed measures for returns on eco-investments.
While the first section of this study profiles certain service providers (British Telecom, France Telecom, Telefonica and Swisscom) and vendors (Alcatel-Lucent, IBM, NSN, Ericsson and Huawei) based on their notable efforts in the sustainability space, the second ... READ MORE
By Steve Kelley, BCI vice president for Branding Services
I checked my mail the other day and found something that got me a little excited: a postcard from my credit union advertising a great low rate on auto loans, inviting me to call in or click in to apply!
Now, the truth is that I’m not in the market for a new vehicle, nor do I have the appetite right now to add to my debt load. But the postcard was still a welcome sight because it seemed like a sign that things might be heading back toward normal.
I live in Arizona, and this credit union is like most here – they’ve seen substantial losses in the last couple of years as their members have struggled (some harder than others) to repay loans. As a result, they’ve really had to change the way they make (and market) loans. So, instead of the pre-approved offers I used to see in my mailbox a couple of times a year, things got really quiet on the loan marketing front. They were still making loans, but mostly just to the people ... READ MORE
By John Belty
I have recently read articles about the inability of CUs to move beyond 6 percent of industry assets, how CUs should be more like banks to compete with banks, etc. I believe these authors and anyone who agrees with them have already missed or are missing the boat. The current economic crisis is the biggest marketing/expansion opportunity presented to credit unions in the last 50 years and we are sitting back and watching it sail by.
"Huh? What did he just say?" you might be asking. "My credit union grew this year; we had a great year!" These could be very typical responses to my statement, but let's look at the evidence.
Currently banks are the favorite punching bag of politicians; public opinion of banks is lower than it has ever been; and financial gurus are recommending credit unions on TV, radio and print. Who is not talking to the public about the benefits of credit unions? The credit unions!
Being the inquiring mind, I asked why, and was told, "we ... READ MORE
I was having lunch with a credit union CEO friend recently, and we got to talking about some of the challenges his credit union has been facing during these very tough times. He runs a large, diverse institution that has taken huge loan losses and is still seeing delinquency rates higher than they’d ever imagined possible.
As he talked about the things they are doing to deal with these issues, and even shared some hard-to-believe stories about how members have tried to justify their failure to fulfill obligations on the grounds that doing so wasn’t in “their best interest financially,” it occurred to me that with all of its difficulties, this amazingly tough time might bring at least one positive for lenders: credit histories that tell the whole story about borrowers.
The way I see it, for the vast majority of today’s borrowers (especially in the high-flying West where my friend operates) this is the first serious economic downturn they’ve ever experienced – or at least, the only ... READ MORE
As in any industry, tradeshow exhibit professionals are constantly faced with justifying the value of participating in shows. The cost of exhibiting, the travel, diminishing show attendance and the economy has turned up the heat.
One basic test that helps answer these challenges is to pose a simple question to any bottom line accountable executive. The question: if you were given 2 minutes to explain the advantages of dealing with your company to a person who regularly buys the same products and services from a competitor, do you think that you could convince them to give your company a try?
If the answer to this question is no, perhaps they should consider working for the competitor or at least reexamining your product or service offering.
Most confident executives would gladly accept this challenge. The best place to set the stage for this scenario is at a tradeshow or convention. Couple this amazing opportunity with the fact that the buyer has paid their own way to the show ... READ MORE
We came up with the following answer: “DON’T”
“DON’T” drill for more oil in the country
“DON’T” look for more oil off our country’s shores
“DON’T” build nuclear power plants we need
“DON’T” worry about importing foreign oil.
So, if our “Nation’s Energy Policy” is “DON’T” and we are concerned about our supplies of energy, then we thought:
“DON’T” use so much energy.
How can the Nation’s 7,800 Credit Unions with over 21,000 locations “participate” in this “Energy Policy”?
We are told that nearly 40% of today’s energy consumption occurs in the 114 million households and more than 7.4 billion square feet of commercial building floor space. And, that these buildings account for 71% of the Nation’s electrical consumption.
Our Nation’s Credit Union buildings are in these numbers.
So, we ran some numbers using very conservative assumptions to see what would happen if our Credit Unions participated in an “Energy Conservation Plan”. Here is what we found:
Credit Unions ... READ MORE
BCI has completed work on an expansion of the headquarters building for Parker Community Credit Union in Janesville, Wisconsin.
The project, which also included a complete remodeling of the existing structure both inside and out, added nearly 3,300 square feet to the facility, along with 26 new parking spaces and two new drive-up lanes for future expansion. Also added were a partially covered employee patio, a new metal standing-seam roof, all new signage and new landscaping and exterior lighting.
Inside, the credit union gained a new, expansive lobby with reception area, a brand-new teller line, new offices for member services and a dramatic new entryway. Also added were new conference areas and a convenient, fire-rated records room, plus expanded computer, lunch and mail rooms.
"We're pleased to have had this opportunity to work with the Parker Community management team and directors," said BCI's Executive Vice President David Jaeckels. They had a vision for improving ... READ MORE
Recognizing that there are five generations of members now using credit union services, BCI is sponsoring Design Studios at the University of Wisconsin-Milwaukee School of Architecture and Urban Planning aimed at creating a branch environment that is relevant to Gen Y or Millenials, the youngest of the five.
The first studio, which is based in Chicago, Illinois, puts four teams of graduate architecture students to work designing a credit union branch built around the needs and habits of today’s emerging generations of financial services users. The students began by studying how credit unions interact with their members today, then took a look into the future to anticipate how trends such as the expansion of the internet, the ubiquity of social networking sites, continued evolution of payment systems and other factors might affect that interaction and what future service demands might arise as a result.
“This studio is the latest manifestation of our longstanding partnership ... READ MORE
A new main address is now reality for Security First Credit Union in Texas' Rio Grande Valley, as they celebrate the move to the headquarters built for them in Edinburg by BCI.
The new headquarters, a 21,891 square foot facility housing administrative staff, training and meeting rooms and a full service branch, was designed and built on property located and selected by BCI as the place for their future home. It is the credit union's first branch in Edinburg, and comes during a period of exciting growth for Security First.
"This is the third project we've had the privilege of working on for Security First," said David Jaeckels, BCI's executive vice president. "We truly enjoy working with the credit union's board and staff, and are pleased to get to be a part of their growth."
Work is now complete on the new facility, which is designed with many elements that reflect the unique style of south Texas architecture. The offical occupancy began May 11th.
BCI is still helping ... READ MORE
Work is now complete on a new main office for Tallahassee-Leon Federal Credit Union, a project planned, designed and built by BCI in Tallahassee, Florida. The grand opening celebration is taking place June 17, 2009.
The new facility, in one of Tallahassee's hottest retail locations, will house the credit union's management and back office staff along with a full service branch. The building totals 8,163 square feet and features four drive thru lanes plus an ATM. It sits on two acres.
BCI was first engaged by Tallahassee-Leon FCU to perform a market study in search of the best place for relocating their main office. The previous building was located in an industrial area that didn't offer much potential for growth, and the credit union's Board and management had aggressive plans for increasing their reach and service to members. After the study identified areas with the greatest potential, BCI worked with local real estate professionals to find the perfect site, ... READ MORE
BCI has begun construction on a new branch for Mountain America Credit Union in Mesa, Arizona.
The new branch will be Mountain America’s second in Arizona, and 63rd overall. It represents the first facility BCI has designed and constructed for the $2.7 billion Credit Union, which is based in Utah and also has operations in Nevada and New Mexico.
At over 5,100 square feet, the branch will have 4 drive-through lanes and one drive-up ATM. Senior Designer Chris Elias’ exterior design employs a regional flair, incorporating manufactured stone and EIFS.
“We’re very pleased to begin this new partnership with one of America’s leading Credit Unions,” said David Jaeckels, BCI’s Executive Vice President. “We completed a market study for them and helped research locations for the branch, so to get to design and build it allows us to complete what we started.”
BCI has designed and constructed hundreds of credit union branches throughout the United States. To request ... READ MORE
The January 5, 2009 edition of the Credit Union Journal carried an interview with William Minahan, BCI's President and founder, regarding the wisdom of launching building programs during difficult financial times.
Minahan, who started BCI over 26 years ago to help Boards of Directors of financial institutions make informed building decisions, told the Journal's Ray Birch that for credit unions with strong financials, times like this may be the perfect time to build, with opportunities appearing and costs coming down.
"BCI has never seen economic events align as they have to lower costs to build a branch," Minahan said. “Those that are in strong positions could not be expanding at a better time."
Minahan went on to make the point that while the timing of the turnaround is as yet unknown, “wouldn't it be good to be in a position that if mid-'09 it started to look like this economy was coming back … you were ready to take advantage of that?"
BCI is ready to help institutions ... READ MORE
As environmental issues become a major talking point in facility design and construction, more and more financial institutions are looking into going green as well. BCI has added green design facility solutions to our array of planning options for consideration by our clients.
Going green ranges from simple smart choices to reduce the facility energy usage to full LEED® (Leadership in Energy and Environmental Design) certification which maximizes options to reduce the impact on the environment, both in design, construction and operation of the building.
If you are interested in exploring your green facility options please contact the salesman for your region or our design team at 1-800-222-1509.
Credit Union Times, a leading credit union trade publication, has posted a podcast featuring a conversation with Steve Kelley, director of BCI's Brand Services division.
In the podcast (posted on the CU Times website at http://www.cutimes.com/podcasts/), Steve and Tom Greve, CU Times' publisher, talk about credit unions' need for a strong brand to compete in today's crowded market, and how BCI can help fulfill that need. The podcast is set to coincide with publication of the Times' October 5 edition, and is the latest in the publication's series of conversations with industry experts on topics of critical importance to their audience.
BCI is proud to have a nationally-recognized branding expert heading our Brand Services division. Steve's consulting work with credit unions around the country, as well as his background as the top marketing executive with a then- $1.5 billion credit union, make him uniquely qualified to assist credit ... READ MORE
Hughes had the official ribbon cutting at the Grand Opening of their new 36,000 SF Administration center on May 28. This facility brings together 73 employees from four separate locations and provides for an additional 35 to 40 future growth positions. The credit union also used this opportunity to roll out the new logo and image campaign put together by BCI’s Strategic Brand team. The credit union has been aggressively marketing this grand event with billboard advertising, special events at the local mall and direct member communications. All branches were part of the new identity program with a comprehensive re-signing program and apparel for all employees. BCI is proud to have had the opportunity to work with the outstanding management and staff of the credit union throughout the planning, design, construction and branding phases of creating the new face of Hughes.