Project Differentiation

LUSO FEDERAL CREDIT UNION

As a member-owned, not-for-profit financial cooperative, Luso Federal Credit Union is committed to our members. We will uphold our fundamental responsibility to actively serve people within our field of membership, and as appropriate, the communities they live in. We will treat all members with respect and dignity and we will offer honest, fair deals to all members at all times. We will deliver a range of 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 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 Luso Federal Credit Union.

We will monitor and 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 member-owned financial cooperatives play in their lives.

Throughout Luso Federal Credit Union's strategic plan, we will put forth every effort to 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 I: Service to Members

Luso Federal Credit Union strives to offer 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 that Help Improve the Economic and Social Well Being of Members:

Participation in bench marking surveys on member satisfaction
Goals set on percentage penetration of membership
Surveying of members to ensure products and services are improving the financial well being of our membership
Totally Free Tiered Checking accounts - These accounts were introduced to our members during 1997 and have been the fastest growing type of account.
Small saver certificates (low minimum balance) - 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 $500.00 and members may add to the account at any time and as often as they would like. Additions may be any amount. The terms are flexible.
Small business loans
Experience-based pricing (risk-based)
Small signature loans (Personal loans - $500.00 - $5,000.00)
Total quality programs that measure improvements
First time home buyer program
Youth membership club targeted at children ages 0-11 promoting savings and good money management for youth, offers special educational and fun activities

New Services Planned for the Future:

Establish "Rebuilder accounts" - A portfolio of services designed to help members re-establish and rebuild damaged credit histories.
Develop a financial counseling program for remedial and preventative situations.
Develop partnerships with city or county government and dynamic, community involved social agencies. These partners can provide access and insight into the community and furthermore, can assist with funding and planning.
Develop affordable housing programs.
Develop a program targeted at young members 18 to 24 with limited or no previous credit experience, enabling them to have convenient access to limited credit lines.
Develop a program targeting 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.
Student loans - Government insured student loans providing financial assistance to college-bound members.

Section II: Member Education

Luso Federal 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 Programs that Support Member Education and Advocacy:

Sponsorship of financial counseling seminars
Providing periodic financial information on a variety of topics of financial concerns to members
Working with local press and media to educate public about the credit union difference - The CEO frequently writes articles for local newspapers as well as national credit union trade publications that address timely philosophical topics for credit union members.
Full and fair disclosure on pricing
Providing education materials and programs teaching thrift, including

Homebuying
Financial management
Remedial counseling
Small business development

Web-site information links - containing valuable consumer buying information for all major purchases, provides valuable links to auto price guides, investment advice, financial calculators, etc.

New Programs Planned for the Future:

Educational newsletter - Provide the members with a quarterly newsletter containing valuable education for members related to credit union uniqueness and philosophy, important Y2K issues, and other timely topics. The newsletter will be committed to more newsletter education and less advertising of products and services.
Sponsoring home buying seminars in conjunction with realtor week
Sponsoring budgeting seminars open to the general public
Resource library in credit union lobby - Provide a resource center with consumer reports, buying publications, and educational brochures, as well as a computer for access to our web site.

Section III: Involvement/Governance

Luso Federal Credit Union will endeavor to preserve credit union democratic principles, including demographic representation and volunteer participation in credit union activities.

Current Programs that Support Involvement/Governance:

Make annual meetings more accessible in order to accommodate the majority of members
Set Board and committee attendance standards
Educate the members, staff, board and the community about the uniqueness of credit unions, specifically the importance of volunteer leadership and democratic elections
Instruct Nominating Committee to actively seek wider member representation on credit union boards and committees
Involve more volunteers through active committees
Provide special training for members on the board of directors and other volunteer committees
Invite/bring elected officials to annual meetings to demonstrate democracy in action

New Programs Planned for the Future:

Establish advisory groups of members and SEGs to solicit feedback, discuss future directions, encourage involvement in board or other volunteer committees
Creative - and uncomplicated - alternatives to encourage voting (i.e., internet voting)

Section IV: Diversity

Luso Federal Credit Union recognizes the value of demographic diversity in staff as well as in volunteers, and will strive to bring people of diverse backgrounds and experiences into leadership and other roles at the credit union.

Current Programs that Promote Diversity:

Seek out volunteers, staff and management that reflect the diversity of the membership - In recent years, a concerted effort has been made by the board of directors to bring in more committee members and board members from the community at large. The 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.
Analyze household income data to ensure diverse market segments have programs and services that meet their diverse needs

New Programs Planned for the Future:

Develop a plan that supports and encourages volunteer involvement representative of the demographics within its field of membership
Develop a plan to include in the selection process all staff, officials, SEGs and above all, members, without regard to their financial or social status
Develop a plan for internal training and promotion for community hiring that can lead to management and volunteer diversity
Establish goals for percentage penetration in various SEGs to ensure all groups within the membership are being served equally
Member Market Segmentation - to help determine the demographic makeup of our members so that products and services may be specifically targeted to meet their needs.
Cultivation of Indirect market - specifically targeted to the Indirect members for additional products and services to ensure full participation and viability.

Section V: Commitment to the Credit Union Movement and other Cooperative Activities

Luso Federal Credit Union will work to build and strengthen our unique credit union movement by providing financial and in-kind resources to others within the credit union and in other appropriate public forums. In addition, Luso Federal Credit Union will participate in local, state and national cooperative activities as appropriate, and will strive to build and strengthen relationships with other sectors of the national cooperative movement.

Current Activities that Support the Credit Union Movement and other Cooperative Activities:

Participate in state and/or national image campaigns that promote the uniqueness of credit unions
Encourage staff and volunteers to take active roles in league, chapter, and other leadership networks
Participate in cooperative advertising campaigns
Create or participate in strategic alliances and partnerships

Credit union to credit union
Credit union to community
Credit union to advocacy groups
Credit union to other cooperatives
Shared service centers
Back-office management functions
Data processing
Mentoring

Share your resources - equipment, personnel, expertise, etc. - with other credit unions in need
Political action

Work in political campaigns for those who support credit union issues
Contributions to state and federal PACs

Participate in local cooperative activities

New Programs Planned for the Future:

Create a standing board committee charged with responsibility of implementing and evaluating the credit union's Statement of Commitment to Members

Section VI: Public Service / Corporate Citizenship

Through direct financial support or other in-kind contributions to worthwhile local organizations, and by participating in public service activities, Luso Federal Credit Union strives to be an active partner in our community. We recognize that practicing good Corporate Citizenship supports the Credit Union Philosophy of People Helping People; furthermore, it will help raise the overall level of social; and economic well being of those in our community, help to strengthen ties within the community, and better position us to reach out and serve - as only credit unions can - those people in greatest need of affordable financial services.

Community/FOM Groups Currently Receiving Financial or Other In-Kind Support (including the support given) and Current Public Service Activities:

Corporate sponsor:

Ludlow Boys and Girls Club
Western MA Pioneers Soccer Team
Ludlow Chamber of Commerce
Ludlow High School Sports Teams
Ludlow High School Yearbook
Ludlow Rotary Club
Our Lady of Fatima Parish and Annual Picnic
St. John the Baptist School Computer Fundraiser
Christ the King Parish Fundraiser
Paul R. Baird Middle School - Student of the Month
Gremio Lusitano Scholarship Program - "Night In Portugal"
March of Dimes
Easter Seals
United Way Campaign
All Western MA Athlete Association
American Cancer Society
Taste of Ludlow

Budget for charitable donations
Become an active participant in the local community or organizations by volunteering staff to assist in civic goals
Allow staff to take time off for volunteer activities