Statement of Commitment to Members
Statement of Commitment to Members
At CUNA Credit Union, members come first. We promise to offer honest, fair deals to every member, every time. We promise to treat every member with respect and dignity. We promise to strive to be a trusted financial advisor that our members can count on to assist them with achieving their financial dreams. We will continually demonstrate the value of membership in CUNA Credit Union. Although we offer a full range of savings and deposit products for all members, we will strive to offer low cost products and services to the diverse economic and social make-up of our members and potential members. We will look for better ways to serve the needs of unserved and underserved portions of our member and potential member base.
We will communicate our service to members in a meaningful way so that members, potential members, legislators, regulators, and the community at large will understand and appreciate the unique role that locally owned, not for profit, financial cooperatives play in their lives.
Throughout CUNA Credit Union's business plan, we will emphasize programs that enable our members to become financially self-sufficient and successful. We will place high importance on consumer education and the teaching of financial thrift.
This Statement of Commitment to Members is consistent with our credit union principles of "Not For Profit, Not For Charity, But For Service" and our philosophy of "People Helping People". This statement represents good business practices that ensure the financial strength of our credit union on behalf of our members.
Section 1: Service to Members
The following programs are designed to improve the economic and social well being of members and return financial value to our members and potential members.
Current or Existing Services:
Murray's Club - Youth membership club targeted at children ages 0-11. Promotes savings and good money management for youth, offers special educational fun in a newsletter called Monkey Business (Murray, our mascot, is a monkey)
First Start Program - Targets young members 18 to 24 with limited or no previous credit experience, enabling them to have convenient access to limited credit lines.
VIP Club - Targets mature adults 55 and older with investment advice, preferential savings rates, free checks for checking accounts, credit union sponsored outings and field trips, special newsletters and special consumer education information on estate planning and wills.
Free checking accounts - These accounts were introduced to our members during 1997 and have been the fastest growing type of checking account. (lifeline checking)
IDA program - This program began in 1998 for low-income members seeking small business loans in partnership with Community Action Coalition.
Government insured student loans - Have offered these loans for the past several years to provide financial assistance to college-bound members.
Experience-based pricing - Began offering this program April 1, 1998. Enables the credit union to offer loans to those who previously would have been denied under our guidelines.
Building Certificates - This is a small-saver program that began in 1997 for those members who only have a small amount of savings. The account may be opened for $250.00 and members may add to the account at any time and as often as they would like. Additions may be any amount. The term of the certificate is one year.
Members Financial Services - This is an investment program that offers unique financial & investment services such as mutual funds, annuities & stocks.
WHEDA, State VA, Federal VA, Rural Housing Loans - CUNA Credit Union offers these types of home loans in addition to conventional mortgages so that we may reach rural and low income members and assist with their housing needs.
New Service(s) Planned for 2000:
Develop a sub-prime lending program internally for 'C' borrowers - During 2000, we will design a program to extend credit to those that are currently denied access to credit under CUNA Credit Union's existing lending policies.
Develop an in-house first mortgage program for low to moderate income families - design a program that will require small or no down payments and easier credit standards to needy families in our community.
Extend small loan services to low-wage employees of employers - Work with large employers in Dane County to offer small payday loans to their workforce.
Implement small business lending services - During 2000, we will develop a program for offering small business loans to companies in the Dane County area. These will be small entrepreneurial companies that are sometimes unable to obtain adequate financing at banks in the area.
Electronic Bill Payer - We will also begin allowing members to pay bills through PC Branch.
Section II: Member Education
CUNA Credit Union is committed to member education and social responsibility, including providing financial education to members and potential members to enhance their lives as well as promote credit union uniqueness, philosophy, and values.
Current or Existing Programs:
Home buying seminars - Each year our credit union sponsors at least two home buying seminars to assist first-time homebuyers.
Web-site - CUNA Credit Union's web site contains valuable consumer buying information for all major purchases, provides assistance in estate planning, providing valuable links to auto price guides, investment advice, financial calculators, etc.
Newsletter articles - Each quarter our newsletter contains valuable education for members related to credit union uniqueness and philosophy, important Y2K issues, and other timely topics. We are committed to more newsletter education and less advertising of products and services.
Newspaper articles - CEO frequently writes articles for local newspapers as well as national credit union trade publications that address timely philosophical topics for credit union members.
High school seminars - On occasion, our credit union is invited into the local high schools to conduct sessions related to how to handle a checking account and how to establish a budget.
Resource library in credit union lobby - In each of our branch lobbies we provide a resource center with consumer reports, buying publications, and educational brochures, as well as a computer for access to our web site and PC branch.
Consumer Credit Counseling Alliance - CUNA Credit Union is a member of an alliance between the WCUL, CCCS, and participating credit unions to provide viable credit counseling services to members who need it.
Employee Orientation - CUNA Credit Union provides a comprehensive employee orientation that emphasizes the uniqueness of credit unions compared to other types of financial service providers.
Fireside Chats - This program is a special dialogue between CUNA Credit Union's CEO and new hires of the credit union to acquaint them with current credit union issues, philosophy, political concerns, etc. Sessions are held once each Quarter.
Consumer Education Seminars - The Credit Union holds special seminars each year on timely topics such as Social Security, the Psychology of Money, Estate Planning, etc.
New Programs Planned for 2000:
Expanded website - We will develop our website to include valuable consumer information for the entire auto buying process, including instant pre-approvals, auto insurance quotes, mechanical breakdown coverage, payment quotes, educational data on autos, etc.
Email statements - We will begin offering electronic statement delivery to members as an option. This also will enable us to provide a new level of member education and information to members.
Electronic Bill payer - We will also begin allowing members to pay bills through PC Branch.
Section III: Involvement/Governance
CUNA Credit Union will endeavor to preserve the credit union democratic principles, including demographic representation and volunteer participation in the organization.
Current or Existing Programs:
Philosophy In Action Committee - This committee was formed two years ago for the purpose of providing feedback to the credit union related to member needs and concerns. This committee is comprised of members at large.
Board Elections - All board members are voted in by mail ballot, stressing full participation. Internet voting is also made available to ensure optimum voter participation.
Board Nominations - Each year CUNA Credit Union has three seats available for election. In a typical year, between 9 - 11 members will place their names for nomination. Local newspaper ads, statement newsletters, and flyers at major sponsor companies are all used to encourage nominations.
Board Term Limits - Board members are limited to serving no more than four consecutive terms so that new volunteers will be encouraged to serve.
Board Vacancies - When the situation arises where a board member resigns during his/her term, the board has a practice of reviewing the past election to determine who received the most votes but was not elected. This way, the members' collective voice helps to determine the replacement.
Committee Involvement - CUNA Credit Union has several ongoing committees and strongly encourages volunteer/member participation. They are: Asset/Equity Policy Committee, Audit Committee, Lending Committee, Marketing and Education Committee, Nominating and Elections Committee, Philosophy in Action Committee, and the Planning and Budget Committee. There are 51 CUNA Credit Union volunteer committee members slated for service in 2000.
New Programs Planned for 2000:
Section IV: Diversity
CUNA Credit Union will operate as a democratically controlled, member-owned cooperative by focusing management, staff, and volunteers on diversity in the leadership and staff of the credit union.
Current or Existing Programs:
Member Market Segmentation - CUNA Credit Union uses an MCIF to help determine the demographic makeup of its members so that products and services may be specifically targeted to meet their needs.
Equal Employment Opportunity - CUNA Credit Union actively seeks to fill vacancies by hiring qualified candidates without regard to race, creed, religion, or socio-economic status, seeking to represent the community in which we operate.
Cultivation of Indirect Market - CUNA Credit Union specifically targets the Indirect members for additional products and services to encourage better participation and viability.
New Program Planned for 2000:
Board Representation - Our board nominating committee will be researching and developing a more equitable method of obtaining board members that represent the community charter of our credit union.
Section V: Commitment to the Credit Union Movement
CUNA Credit Union will work to build and strengthen a unique credit union movement by providing financial and in-kind resources throughout the credit union community, and by actively advocating the credit union difference at all levels of government and in other appropriate public forums.
Current or Existing Programs:
Small Credit Union Partnership - CUNA Credit Union provides back office share draft processing, credit card processing, ATM card processing, and mortgage services for a small sister credit union (Members' First Credit Union) in the Madison area. We also donate computers and office equipment to smaller credit unions.
Political Activity - CUNA Credit Union's CEO actively works in political campaigns, donating time, money, and hosting fundraisers for those who support credit unions. .
Mentoring - CUNA Credit Union's senior management staff provides teaching, assists other credit unions with training, conducts planning sessions, etc. for other credit unions and credit union organizations.
Leadership Roles - CUNA Credit Union's senior management staff serves on boards and committees for credit union related organizations: WCUL Marketing Committee, WCUL Governmental Affairs Committee, Madison Chapter of Credit Unions, CUES National Board of Directors, National Credit Union Foundation Board of Directors, various CUNA committees, Filene Research Council.
Cooperative Advertising - CUNA Credit Union participates actively in SWAP (State-Wide Advertising Program) and the Madison Ad Group for collective advertising of credit union programs.
Development Educator - CUNA Credit Union's CEO does presentations throughout the country on the philosophy and uniqueness of credit unions.
People to People Program, National Values Campaign, Filene Research Council - CUNA Credit Union provides monetary support each year to these worthwhile credit union organizations and programs.
Continuing Education for Staff - CUNA Credit Union helps pay for post-high school education so that employees may further their careers in the credit union movement.
Internships - Throughout each year, CUNA Credit Union hosts visiting credit unions from other states and countries, as well as providing internships for numerous employees from CUNA and CMG in order that they may learn about credit unions.
Community Investment Fund - CUNA Credit Union has invested in the National Credit Union Foundation's CIF, an investment through Wisconsin Corporate Credit Union. A portion of the dividends earned is earmarked as donations to the state of Wisconsin and the National CU Foundation for credit union development work.
The Dane Fund - Formerly known as the Madison Area Community Development Loan Fund, CUNA Credit Union has made a $25,000 investment toward aiding the Dane County community in rebuilding distressed areas and funding low income housing development.
CDCU Investments - CUNA Credit Union places certificates with CDCUs in our country that are in need of deposits in order to fund their loan demand.
New Programs Planned for 2000
Section VI: Public Service / Corporate Citizenship
CUNA Credit Union will strive to be an active partner in the community and field of membership that will enhance both their economic and social well being. Each year the credit union budgets to support many organizations in our community, including but not limited to:
Current or Existing Programs:
Dane County Domestic Abuse Intervention Center
United Way Campaign
Dane County Hospice
American Red Cross
Children's Miracle Network
Food Share Day - supporting local food pantries
March of Dimes
Boys and Girls Club of America
Dane County Community Action Coalition
The Dane Fund
CUNA Credit Union also practices good corporate citizenship by:
Providing space for community and civic groups to meet in our East Side Training room each month.
Providing lifeline checking account services to the community.
Note: This plan was reviewed and revised by the Board of Directors in November of 1999.
