Project Differentiation

FORUM CREDIT UNION

differ
differentiate

v.i, be unlike
v.t. make different, develop into unlikeness

WEBSTER'S DICTIONARY

In 1941, when a handful of telephone employees saw the need for their work associates to have access to reasonably priced financial services, they formed what was initially called Forum CU. Their idea: Pool their financial resources in a manner that would meet the needs of both borrowers and savers, and teach the proper use of credit.

It was all about valuing the member then, and the emphasis on value to the member is still our primary focus.

There have been lots of changes in our nearly sixty years of existence. A few include:

From one small office to a network of branches and electronic delivery mechanisms to meet the desires of our member/owner.

From primarily savings and loan products in the beginning, to a catalog of financial services which bring added value to our membership.

From an initial membership limited only to telephone employers, to a much wider cooperative membership base - involving nearly 1000 small employer groups, thereby bringing the benefits of credit union membership to more American families.

A change in our charter from Federal to State, allowing us closer access to our regulators, and a financial environment which would allow us to more effectively serve our members.

The development of our own mortgage company, allowing us to help every family achieve the dream of owning their own home. In addition, a number of other financial products have been added

Today, Forum Credit Union, now a state-chartered financial institution, continues to focus its plans for the future on the needs of its current membership, and the anticipated needs of its membership tomorrow.

It is our desire to help our members become financially secure by the wise use of their resources, the cautious and constructive use of credit, and by teaching the importance of systematic financial planning in building towards a comfortable retirement.

Section 1: Service to Our Members

Your credit union evaluates existing service opportunities on a continuing basis. We listen to you, our members, when you express your wishes in membership surveys and correspondence. Our service development teams attempt to stay on top of trends in the financial community in an effort to bring developing methods and service to market as quickly as possible.

Our member service goal is to add convenience, security, and value to the products and services we offer our membership. The programs are always designed to enhance the economic well being of the member.

Examples of Current Services

AWARE KIDS is the name of the program designed to create financial awareness for children under the age of 13. Small, motivating incentives are offered to encourage children to open and maintain savings accounts. There are prizes, a web site devoted to needs and interests, with links to other sites relating to finance.

AWARE TEEN is for youth 13-19 years of age. They have access to a full range of financial products - from basic savings, to checking, and for the older AWARE teens, even a credit card.

CREDIT UNION AT SCHOOL is a program where the officers and volunteer directors go into school classrooms to explain both financial and other business benefits to students just beginning to learn the importance of both topics.

SENIOR PARTNERS is designed to offer special benefits to Senior Adults throughout the year. These senior members receive free checking accounts and have access to free financial planning advice and legal service on wills.

MORTGAGE ADVANTAGE is the credit union's wholly owned mortgage company, created to allow the credit union to provide a gateway for its members into their first home. Conventional mortgage underwriting, and creative mortgage products enable Mortgage Advantage to help hundreds of families move in their first home, or move up from their current one, every year.

PLAN AMERICA is our member-friendly investment service. It offers both broker assistance and the Members Financial Network, an electronic connection, to the latest information on mutual funds, annuities and stocks. This program is an excellent resource for members wishing to begin their retirement planning early in their careers.

These services are merely examples of many other services designed to bring value to membership in our credit union. New ones are added every year in an effort to meet the new or changing financial needs of our members/owners.

Section 2: Financial Education

We are committed to ongoing efforts to provide financial education for our Membership.

A member newsletter is published for the purpose of creating awareness of our catalog products, and an understanding of how our rates, on both savings and loans, may enhance the value of a Forum membership. Articles reflecting the savings on various loan rates, the importance of understanding the Annual Percentage Rate (APR), and other articles on how to use credit wisely are part of the regular content. When possible, member testimonials are used to demonstrate service value.

Forum's web site contains valuable information for the consumer on a number of financial issues.

Members Financial Network offers a number of educational, and interactive options on a continuous basis for members who prefer the convenience of on-line access.

Seminars are often used to cover such topics as buying a home, investments, wills and trusts, and other topics which have appeal to the membership. Most of these are free, and with no obligation on the member's part.

Consumer Credit Counseling Services. We cooperate with the CCCS and encourage our members to avail themselves of its services when necessary. We believe protection of the individual's credit reputation is an important part of that individual's investment in his/her own future.

Better Business Bureau. By participating in the Better Business Bureau, and similar agencies, we encourage consumers to use these services to protect their credit reputations, and limit their exposure to poor or fraudulent service providers.

Section 3: Governance

Because our credit union is a member cooperative, it is only right that the governance of the credit union should rest in the hands of a volunteer member Board of Directors elected by the members/owners.

Board of Directors. This nine member board of volunteers is elected by the membership in accordance with the bylaws of the credit union, which are in compliance with the requirements of our state regulators. Three of the nine Board seats are up for election annually. Members of the nominating committee, appointed annually, interview interested candidates for the Board, and make recommendations to the membership. The election is conducted by mail ballot to increase participation in the voting process.

Volunteer Participation. Volunteers may become involved in the credit union through their participation in Committees and focus groups. The Supervisory Committee is a standing committee, subject to election annually. From time to time the Board may also appoint committees for special projects and events, with members being invited to serve on those Committees.

President/CEO. The President and Chief Executive Officer of the credit union is selected by the Board of Directors and serves at its pleasure. The CEO is responsible for the day-to-day operations, including quality of service, provided to the membership. For reporting efficiency, the direct supervisor of the CEO is the Treasurer of the Board. The CEO's governing authority is, however, at the pleasure of the majority of the Board.

The Annual Meeting, held every February, offers the opportunity for members to meet the Boards and Committees, as well as the officers of the credit union. The Chairman of the Board gives an annual address to the meeting, reviewing the performance of the past year, and looking ahead to future opportunities. The meeting is well publicized, and is open to the membership without charge.

Section 4: Diversity

For a number of years, your credit union has committed its efforts to diversity. It is our belief that a member-owned cooperative should have diversity in its management, staff, and volunteers.

We believe in equal employment opportunities. It begins with hiring, but that commitment needs to extend through the term of employment for every individual. We are committed to this process.

We believe in participating in the credit union community. Realizing that it takes credit unions of all sizes to make the system strong, we support our state league, and other credit union partnerships.

We believe in credit union efforts to serve the under-served. Wherever possible, we will do all we can to extend, or expand, credit union services to those who do not have access to them. This desire has long been exhibited through our small employer group efforts.

The Nominating Committee annually considers the demographics of the volunteer Board in an effort to open the Board composition to the diversity of the membership. The Board has continued to evolve over the years, reflecting the decline in the number of members in the telephone industry, and the increase in the membership among the many small employer groups. This is a concrete demonstration of the commitment to diversity.

Section 5: Commitment to the Credit Union Movement

Forum will continue its efforts to re-enforce the strength of the credit union industry. We understand the importance of our membership realizing the valuable differences between the credit union, and its competitors. We also acknowledge the continuing need to differentiate ourselves in the minds of political leadership at both the state and national level.

Examples of Current Efforts

We participate in the leadership of the Indiana League and the Corporate credit union serving Indiana credit unions.

Our CUSO offers mortgage services and marketing services to smaller credit unions.

We entertain other credit unions who ask to visit to observe technology or marketing strategies used by our credit union.

We have entered the Alliance One ATM network, expanding the no-surcharge outlets for the use of our membership.

We are participants in the shared branch network in Indiana.

Our current Chief Executive Officer is a member of local and national boards of directors in both the community, and the national credit union community.

Throughout the years we have provided financial participation in national credit union branding campaigns, and political efforts, through cash contributions.

We offer tuition assistance to our employees so that they may improve their individual skills, and thereby improve their job performance in the credit union.

Closing Summary

This statement of differentiation serves its purpose only if it becomes more than words. Good intentions, meticulously detailed, are impotent without commitment to what is on a printed page. A consistent awareness of the importance of each member is vital.

We realize that DIFFERENTIATION REQUIRES ACTION.

Yes, we believe credit unions are unique, and because of our uniqueness we should be able to better serve our memberships.

Yes, we hold dear the principles of the early credit union founders. At the same time, we believe they would understand how solutions of the thirties and forties can no longer work in the information age, beginning to unfold all around us.

They would recognize any credit union's survival depends on its ability to hold on to core values, while adapting to meet ever increasing competition, and the always changing methods of reaching our markets.

We want to be different than our competitors; we want to be better. We want to care more about our customers. We want to be fair.

How well we hold to these values, and how professionally we do our job will create the real differentiation between us and our competition.

The words won't be necessary. Our actions will speak much louder.

And if we fail to deliver, there will be no one listening to what we have to say.