SECU stands out as an alternative to megabanks that succumbed to government bailouts during the housing crisis by adhering to an internal growth and consumer lending strategy that has proved successful – an approach which members appear to appreciate.
Jim Hayes, hired as CEO in 2021, is pushing some radical reforms that were rejected for years by previous leaders.
Services
State Employees Credit Union is a not-for-profit financial cooperative owned by its members that has provided workers and their families with consumer financial services for more than eight decades. Recently, however, this $50 billion institution has taken steps to adapt to changing market dynamics by altering some key strategies.
Blaine challenged industry conventions by offering competitive interest rates for salary advance loans and tax preparation services, and steering SECU away from lending based on credit ratings toward knowing its customers individually.
He implemented drastic management team changes and introduced a revolutionary technology strategy, prompting some board members to express concern that too much change has taken place too quickly.
Member Benefits
Under Blaine, SECU expanded in ways that defied credit-union conventions or rules set by quasi-government regulators. For example, technology spending was increased and data centers opened to meet members’ needs.
These investments bore fruit, as membership accelerated rapidly. SECU also expanded by offering tax preparation services, low-interest salary advance loans that competed directly against H&R Block and payday lenders, life insurance policies and property management units, among other innovations.
Credit unions like the SECU Family House provide safe, comfortable alternatives to hotel stays for adult patients and caregivers traveling out-of-town for medical treatment, yet its policies have caused internal division.
Deposit Accounts
State Employees Credit Union of North Carolina provides employees and their families from the North Carolina state government access to affordable financial products and services, including ATM access across its member state, competitive savings account rates, share certificate terms that match any budget, two fee-free days each year for account overdrafts and two fee-free days for overdraft protection.
SECU members enjoy online banking features like bill pay, Quicken financial management integration and transaction history monitoring as well as mobile apps available for iOS and Android devices.
New members begin by depositing a minimum of $25 into a regular share account and can also open high interest-bearing savings accounts to support education, health and retirement goals.
Loans
SECU outgrew rival banks such as Wachovia, BofA and BB&T by sticking with its unique consumer lending strategy – which proved immensely successful.
SECU’s move to increase technology spending and open data centers in Triangle and Charlotte has dismayed some members who view these initiatives as attempts by SECU to compete with larger banks by appealing to younger customers.
Risk-based pricing was also approved, which will raise interest rates on those with poor credit while lowering them for those with excellent ones. This move should help the credit union expand loan balances without jeopardizing its low-risk status.
ATM/Debit Cards
SECU provides its members with an extensive network of CashPoints ATMs for free statewide account access1, as well as a mobile app allowing them to check balances and transact while on the move.
State-chartered credit union membership is restricted primarily to employees of the North Carolina state government and their families; however, other North Carolinians can join as well. Their accounts offer reliable 24/7 customer support with minimal fees over competitive savings account rates.
Alongside its checking and savings accounts, this credit union also offers share term certificates with terms ranging from six months to five years. Furthermore, two fee-free overdraft forgiveness days per year as well as a low nonsufficient funds fee are provided as additional services.
Money Market Accounts
State Employees Credit Union offers members a money market account that boasts high interest rates with no fees as long as minimum balances are kept up, access to its nationwide ATM network and access to its wide array of personal banking services such as online banking and bill pay.
Under Blaine’s leadership, SECU challenged conventional credit-union conventions by offering competitive mortgage and consumer lending rates at significantly reduced mortgage interest rates and consumer loan interest rates. Furthermore, its growth strategy differed dramatically from those employed by its larger North Carolina peers – who pursued acquisition strategies en masse – while offering tax preparation services undercutting H&R Block and payday lenders alike.
Credit Cards
SECU shuns advertising and annually donates over $20 million in charitable giving. Its innovative policies have contributed to decades of steady growth with safe balance sheets. Both Blaine and his successor Mike Lord ran SECU in ways that ran counter to convention for both credit unions and commercial banks – charging lower rates than competitors while avoiding risky investments and opening life insurance, property management and investment units.
Some longtime members are upset by these changes and fear the credit union is heading down a new path that will cost them even more money.
Investments
Under Blaine’s leadership, SECU ran in direct opposition to conventional credit union and banking practices. For instance, its deposit rates were equal regardless of credit score, while home loan agreements did not conform with rules set by quasi-government agencies.
Hayes has brought a different perspective to SECU, according to former SECU leaders. He has altered some key strategies and encouraged board members to make changes such as switching the loan pricing system from risk-based pricing. Furthermore, they intend to establish life insurance, property management and investment units.
Insurance
State Employees Credit Union can help protect both you and your family with group term life insurance1 provided through its wholly owned subsidiary SECU Life Insurance Company and health coverage through Blue Cross NC as an authorized agent.
SECU is widely recognized for placing its members first; however, as it has grown larger some of its policies have attracted scrutiny and been subjected to scrutiny by critics.
Under Blaine’s leadership, they established a tax preparation service and low-interest salary advance loans that rival H&R Block and payday lenders in cost. Furthermore, they expanded with real-estate management capabilities capable of overseeing over 1,000 properties as well as an investment unit for investments.
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