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Friday, Mar 29, 2024

Growth Mode at Credit Unions

At this time next year, the employees of Logix Federal Credit Union will be close to moving into their new home. The Burbank financial institution is relocating its headquarters to an 180,000-square-foot facility on 12 acres in the Valencia Commerce Center in the Santa Clarita Valley. Andrea Carpenter, chief administrative officer at Logix, called the move a lengthy and complicated project. It required a lot of decisions to make sure the final product is something the employees will enjoy. The new building will have a commissary, work stations with standup computers and great views all on a campus dotted with walking paths, Carpenter said. “We have put a lot of thought into the overall environment to make sure it matches the culture we are trying to reinforce,” she added. With assets totaling more than $5.7 billion, Logix ranked No. 1 on the Business Journal’s list of credit unions ranked by assets. The 2018 list is identical to the previous year. Logix was known as Lockheed Federal Credit Union until changing its name in 2012. Its Burbank headquarters comprises 75,000 square feet for offices and 6,000 square feet for its flagship branch. Early next year, the credit union will add two new locations, including the first of its “express branches” in Santa Clarita. The express branch will have no tellers – just ATMs that can do the same routine transactions as a teller, Carpenter said. As at other Logix branches, there will be a greeter and concierge to assist customers. “(It will be open) where we have really busy branches to help offload that traffic to make sure the wait times are as low as possible,” Carpenter explained. Another change for Logix’s 189,000 members is a new mobile banking platform set to launch in November. Otherwise, the credit union is trying to stay competitive with low interest rates on car loans and a credit card program in which members earn points for each dollar spent. “We are trying to continue to add value,” Carpenter said. “There is not a lot that is new in products but the ones we have we try to make sure keep pace and actually exceed what folks would expect.” Animal attraction A report last year from CUNA Mutual Group, a Wisconsin-based company that provides insurance to credit unions, predicted credit unions would register 3.5 percent membership growth in 2017 and 3 percent this year. “Most of the membership growth is taking place at credit unions with assets over $1 billion, due to organic growth and mergers,” the report found. Logix grew by 11,100 members since last year, according to data on the list. UMe Federal Credit Union, in Burbank, grew its membership by 4 percent. UMe started a marketing campaign back in the spring starring its new mascot, an emu. Yep, the institution flipped its name around to come up with the purple emu character, which wears a bow tie. Chief Executive Robert Einstein said the credit union worked with an outside marketing firm on ideas and the emu was one that resonated with the staff. He called the character “funny and smart.” “The membership has really embraced him,” Einstein added. “They talk about him in communications with us.” That’s not all that’s new at UMe. On the technological front, the credit union will improve its mobile banking app because it is widely used by the members. “We are working on mobile upgrades that will add a lot of features,” Einstein said. “We have a couple of other initiatives that we have not released to our membership but are going to be exciting – some within the next few months and some within the year.” Like Logix, UMe also underwent a name change. Until 2011, the institution was known as Burbank Community Federal Credit Union. It was started in 1940 by area school teachers. At the time of the name change, the credit union had $130 million in assets. that amount has increased 70 percent to $222 million as of June 30, making UMe the No. 14 credit union on the Business Journal’s list. Einstein said he expects to finish the year with about 15,000 members. At the same time as the rebranding, the credit union updated its single branch location. It took a two-story peach-colored building entered through security doors and created a community space that combined quirkiness with the feel of an upscale hotel lobby. A receptionist greets customers, pointing out the coffee bar and a jar of chocolate candy. A children’s play area is set beneath a skylight, with blocks for toddlers and iPads for older kids.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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