Project Differentiation

UNITED AIRLINES EMPLOYEE'S CREDIT UNION

As a member-owned, not-for-profit financial cooperative, United Airlines Employees' Credit Union is committed to our members. We will uphold our fiduciary and moral responsibilities to actively serve people within our field of membership, and as appropriate, the communities they live in. The cornerstone of our solid financial stability has been in maintaining the philosophy of providing a safe place to save and offering fair rates to our members. We treat all members with respect and dignity and offer honest and fair products and services to all members at all times. We will deliver a range of low cost products to the diverse economic and social make-up of our members and potential members. We will continue to look for ways to reach out to the un- or underserved in our field of membership. And we will continually, in all facets of operations, demonstrate the value of membership in United Airlines Employees' Credit Union.

We will pro-actively communicate our purpose to members, potential members, legislators, regulators, and the community so that all groups will understand and appreciate the unique role that member-owned financial cooperatives play in their lives. We will always place a high importance on consumer education.

This Statement of Commitment to Members is consistent with our credit union principle of promoting thrift among members, creating a source of credit at fair and reasonable rates of interest, and providing members with an opportunity to use and control their own finances on a democratic basis in order to improve their economic and social conditions. United Airlines Employees' Credit Union will put forth every effort to enable our members to become financially self-sufficient and successful.

Since it was organized in 1935, UAECU has provided quality member service, competitive rates on loans and savings, and safety for our members' deposits. We are committed to a member-focused strategy that emphasizes favorable terms and conditions on all products and services in an environment of low operating expenses. These values have never changed and it is our intention that they never will.

Section I: Service to Members

United Airlines Employees' Credit Union strives to offer products and services designed to improve the economic and social well being of all members from all socio-economic backgrounds, including our low- and moderate-income members, and return financial value to all those who participate in our member-owned financial cooperative.

Current Services to Help Improve the Economic and Social Well Being of Members:
  1. Flight Attendant Graduate Loans - Our sponsor, United Airlines, requires flight attendants to spend 7 weeks in training prior to beginning employment. As this training is without pay, many new flight attendants are in need of funds in order to relocate to their domicile. UAECU makes loans available to these graduates by reducing reliance on credit history and debt ratio factors.

  2. Flight Officer Welcome Loans - To assist new hire pilots that are temporarily financially encumbered because of low starting wages and the costs incurred building their qualifications, UAECU has established special unsecured loans for these members.

  3. Disaster Relief Loans - UAECU offers financial assistance, in the form of loans, to aid those members impacted by natural disasters (i.e. Hurricane Hugo).

  4. Debt Consolidation Loans - In an effort to reduce a member's monthly payments and lower their interest rates, UAECU has offered a special discounted rate on debt consolidation loans.

  5. Passport Plus Checking - No minimum balance and no monthly fee checking accounts offered to all members.

  6. Computer Sale Event - UAECU conducted a special computer sale featuring top quality computer systems at discounted prices. A special interest rate reduction allowed members additional savings for those who were interested in financing their purchase.

  7. 110% Vehicle Promotion - Loans granted at 110% of the vehicle's value gives members additional funds at a low secured interest rate to use as they wish to pay for insurance, tuition, holiday expenses or to reduce debt.

  8. High Dividends Returned to all Members - 72% of all earnings are returned to our members in the form of dividends at rates nearly 1% above money market accounts. Of the 140,000 members in our credit union, 46% have share balances under $500 but are still able to take advantage of our high dividend.

  9. Credit Life and Disability Insurance - With rates among the lowest in the nation, 68% of our members elect credit life insurance on their loans and 50% of our members elect credit disability insurance on their loans.

  10. Vehicle Service Agreements - In partnership with another company, UAECU offers a comprehensive vehicle warranty service program to our members at prices well below dealer warranties. Dealerships and retail service centers around the country can be used for repairs.

  11. Service Surveys - In a continuing effort to make UAECU more efficient, responsive and service oriented, members are randomly given service surveys to rate our performance. These results are then used to assess target areas for improvement as necessary. It is our goal to maintain an average annual minimum score of 4.50 on a scale of 1 to 5.

  12. Prudential Home Connections - A comprehensive set of real estate services makes moving easier and less expensive for our members. Participating members can receive a cash bonus or a discount equal to 20% of the real estate commission when a home is bought or sold through this program.

  13. Quality Assurance Program - The key objective of this program is to quantify opportunities for quality improvement and put measures and controls in place to ultimately improve quality for our members. Our mission is to create a positive environment for measuring and collaboratively improving quality.

  14. Individual Retirement Accounts - UAECU offers its members numerous Individual Retirement Account options that require no minimum balance and distribute a high dividend to our members.

  15. Competitive Mortgage Programs - Our first mortgage program is offered with no Private Mortgage Insurance or jumbo loan differential. In addition, there are no points or escrow accounts required. By offering both fixed and adjustable rate mortgages, our members are able to choose which program best suits their needs. Our second mortgage program offers rates as low as prime, no closing costs, application fees or appraisal fees. Members may borrow up to 90% of the home's value.

  16. Loan Modifications - In combining all credit union debt into one lower payment, we assist our members who experiencing financial difficulty by improving their monthly cash flow and their ability to meet their other financial obligations.

New Services Planned for the Coming Year:
  1. Members Financial Services - This investment program will offer our members unique financial and investment services such as mutual funds, annuities, stocks, etc.
  2. Internet Banking
  3. ATM Deployments - We plan to increase accessibility to member accounts through the installation of greater numbers of ATM machines.

Section II: Member Education

United Airlines Employees' Credit Union is committed to member and consumer financial education; in addition, we are committed to educating members and consumers, alike, about credit union uniqueness, philosophy and values.

Current or Existing Programs that Support Member Education and Advocacy:
  1. Station Visits - United Airlines Employees' Credit Union representatives regularly visit off-line airport stations that do not have a credit union office on site. Members are given educational briefings on products and services as well as on special credit union promotions.

  2. Credit Union Day - This nationwide day is celebrated each October to give our members increased knowledge and awareness of the credit union movement.

  3. National Direct Deposit Week - In an effort to promote awareness of our direct deposit service, United Airlines Employees' Credit Union participates in National Direct Deposit Week. Posters, tent cards and balloons are used to decorate the service center lobbies and a brochure is available to address any member concerns.

  4. Flight Attendant Presentations - Credit union representatives conduct weekly seminars educating newly hired Flight Attendants about our credit union products and services.

  5. Articles for Trade Publications - President writes articles for national and local credit union trade publications that address timely issues, areas of expertise, and/or philosophies related to the credit union industry

  6. Annual Report - United Airlines Employees' Credit Union distributes an Annual Report to educate members regarding information on dividend payouts, share and loan growth and other areas of financial performance.

  7. Educational Newsletters - Our member newsletter, MoneyClips, is distributed quarterly and our checking newsletter, Passport Plus Checking News Bulletin, is distributed monthly. Both professionally produced newsletters feature timely and informational items of interest to our members.

  8. Intranet Web site Information Links - United Airlines Employees' Credit Union offers an Intranet web site for our members. Outside links include Digital Cars, Deluxe, ATM Locators, Investments, International ATM Access, CUNA Mutual, InterLink Merchant, VSA (Vehicle Service Agreements), and Prudential links.

  9. Retiree Convention - Each year our president, along with other credit union representatives, attends the Retired United Airlines Employee Association convention. Presentations are given to educate these members on new credit union products and services, Individual Retirement Accounts, special promotions, and, most recently, the Year 2000 situation.

  10. Digital Car Pricing Program - Our members are able to obtain invoice and retail cost information on new and used vehicles. Digital Cars can also put the member in touch with a dealer in their area to obtain preferred fleet pricing quotes on a new vehicle.

  11. Credit Counseling - Financial counseling is available to all our members through representatives in service center locations nationwide or through our toll free Telecenter.

  12. Year 2000 Communication - Through educational newsletters, brochures, posters, magnets and buttons, our members are educated on the status and progress United Airlines Employees' Credit Union is making as it relates to Year 2000 readiness.

  13. Education Exchange College Grants - Marketing materials and applications are provided for our members who wish to participate in the annual Education Exchange College Grant Program. This program honors hardworking and academically talented students nationwide and is sponsored by the Exchange, MPACT and TX networks. A total of four $5,000 and eighty $1,000 grants are awarded.

  14. ATM Safety Tips - Periodically safety tips are provided for our members through credit union newsletters to educate members on ATM use and awareness to protect against fraud. In addition, when each member receives their ATM/Check card notification of these safety tips are provided.

  15. Resource Information - All United Airlines Employees' Credit Union service center lobbies contain buying publications and educational brochures. In addition, several locations offer computer access to our intranet web site.

  16. Fraud Education - Continuous fraud education is available for all credit union members through various newsletters. In addition, "What to do now" checklists are provided to members victimized by identity fraud.

New Service Planned for 1999:

1. Internet Web Site

Section III: Involvement/Governance

UAECU makes every effort to preserve the credit union democratic principles, including broad based representation and volunteer participation in the organization.

Current or Existing Programs that Support Involvement/Governance:
  1. Board Representation - UAECU has a diverse cross-representation of members on the Board of Directors, representing a variety of division within our corporate sponsor.

  2. Committee Involvement - UAECU has several ongoing committees and strongly encourages volunteer participation. They are: the Executive Committee, Supervisory Committee, Asset Liability Management Committee, Proxy Committee, Credit Committee, Nominating Committee, and Membership Committee.

  3. Committee Mentoring - First year Credit Committee members are given special mentoring to guide them their role and function as a committee member.

  4. Board Exposure - UAECU management and staff are provided opportunities to interact with the Board, as well as, make presentations representing their individual departments.

  5. Annual Meetings - UAECU makes annual meetings accessible to all membership and encourages participation by staff.

No New Program Planned for the Coming Year

Section IV: Diversity

UAECU is dedicated to promoting diversity in our management, staff and field of membership by providing educational and enrichment opportunities to our leadership and staff.

Current or Existing Services that Promote Diversity:
  1. Member Market Segmentation - UAECU uses an MCIF (Members Customer Information File) to help determine the demographic make-up of our members so that products and services may be specifically targeted to meet their needs.

  2. Equal Employment Opportunity - UAECU actively seeks to fill vacancies by sourcing and hiring qualified candidates without regard to race, creed, religion, or socio-economic status, seeking to represent the community in which we operate.

  3. Field of Membership - UAECU has a broad field of membership, opening it up to the entire diverse team of employees at UAL Corp., as well as, their family members.

  4. Management Education - UAECU requires that all managers and supervisors attend Diversity Training, administered by our corporate sponsor, UAL Corp.

  5. Welfare to Work - UAECU and our sponsor, UAL Corp., are among the industry leaders in the President's Welfare to Work initiative. Seeking out and hiring individuals receiving government assistance so they can attain financial independence.

  6. Staff Development/Internal Placement - UAECU's managers and supervisors are instructed to coach and develop their employees, encouraging them to apply for positions within the credit union to advance their own careers through internal job postings.

  7. Employee Task Teams - Task teams are formed by a variety of stake holders within the credit union to address internal issues, policies and procedures, affecting the group.

  8. Open Door Policy - UAECU's President, and managers, welcomes and encourages an "open door policy" to all employees, at every level.

No New Program Planned for the Coming Year

Section V: Commitment to the Credit Union Movement

UAECU is committed to strengthening the credit union movement by providing monetary contributions and contributions of staff time and resources throughout the credit union community. Our commitment to the movement is also apparent through our active roll at all levels of government and in a variety of other appropriate public forums.

Current or Existing Services that Support the Credit Union Movement:
  1. Leadership Roles - UAECU's management staff serves on boards and committees for credit union related organizations: Northern Cook County Chapter of Credit Unions, Mid-States Corporate Federal Credit Union, Governor's Credit Union Advisory Board, CUNA Mutual Group, Card Services for Credit Unions, State of Illinois Treasurer's Task Team, and the Department of Financial Institutions Regulatory Advisor Board.

  2. Political Activity - UAECU donates both time and money to activities that support credit unions, such as: Monetary contributions to CUPAC (Credit Union Political Action Council) and having staff attend the Annual Governmental Affairs Conference.

  3. Cooperative Training - Members of our training staff attend and also present at a Credit Union Trainers' Roundtable, sponsored by the Illinois Credit Union League. This roundtable is an effective tool for gathering training ideas and networking with credit union trainers from across the state.

  4. Filene Research Council - UAECU provides monetary support each year to this worthwhile credit union program.

  5. Internships - Throughout each year, UAECU hosts interns from other credit unions, both within the U.S. and from other countries. In addition, UAECU hosts collegiate interns looking to be educated in the business of credit unions.

  6. On-going partnership with CUNA Mutual Group - UAECU regularly sends a representative to visit CUNA Mutual Group's Lending School to share expertise and knowledge regarding the development of a sales and service culture.

  7. Credit Union Partnerships - UAECU participates in strategic credit union to credit union alliances, routinely sharing our knowledge and expertise in the areas of collection, titles and fraud.

  8. Other Credit Union Affiliations - UAECU is a member of other credit union related alliances supporting the strength of the movement: National Association of State Credit Union Supervisors and Airline Credit Union Association.

No New Programs Planned for the Coming Year

Section VI: Public Service/Corporate Citizenship

United Airlines Employees' Credit Union has strived and will continue to strive to be an active partner in our community to enhance both the economic and social well being for our field of membership, as well as, the communities around us. Each year we support many organizations in our community, including but not limited to:

Current or Existing Service Activities:
  1. Junior Achievement

  2. Life Source (Blood Drive)

  3. ALS Foundation

  4. United Way

  5. Hawaiian Food Bank

  6. Arlington Heights Food Pantry

  7. Johnson School Community (Coat Drive)

  8. Chicago United We Care (Take Your Community to Work Day)

  9. Community Investment Fund (Illinois and National Credit Union Foundations)

UAECU has made charitable donations to local schools by donating previously used PC's to support education in our area.

Our support extends across the country, including a Fantasy Flight (Keiki Flight) in Honolulu, Hawaii, which benefits local charities, such as:

  1. American Children's Diabetes Foundation

  2. Red Cross

  3. Big Brothers & Sisters of Honolulu

  4. Helping Hands of Hawaii

  5. Mental Health of Hawaii

  6. MS Society

  7. Spouse Abuse Center of Honolulu

  8. YMCA

  9. Habitat for Humanity

  10. Child & Family Services

  11. Japanese School for the Blind

Many of these events are annual and we are planning continue support for them in the coming years.

No Additional Activities Planned for the Coming Year
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