The development of our new Neighborhood Contact Offices with local community groups such as churches and other community organizations has resulted in a powerful new business model for our company. Through the placement of computer terminals in these locations, we are able to provide many of the services of a traditional branch—bringing access to quality financial services to areas no longer served by traditional banks.
Jack Houseknecht
CEO
SSA Baltimore Federal Credit Union
 
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SSA Baltimore Credit Union

How does a credit union with declining membership grow its business? Ask SSA Baltimore Federal Credit Union, a 42,000 member credit union with $278 million in assets.

Until recently, SSA Baltimore Federal Credit Union primarily served employees of the Social Security Administration and Center for Medicaid Services and their families. With increased computerization, the number of individuals employed at these government agencies dropped from 30,000 to less than 15,000 in the last 15 years—resulting in a flat member growth rate and an average customer age of 47. Additionally, credit union loans had declined as members transitioned from borrowers to savers. With fewer loans, SSA Baltimore faced serious threats to its ability to earn income and maintain capital.

As a solution, the company added the underserved area of the City of Baltimore to their charter—increasing potential membership from 200,000 to over 1 million. To penetrate the potential market, SSA Baltimore is establishing non-cash outreach offices in community centers, churches, and other nontraditional locations in low-income areas where potential members lived. Two of these "NCO" offices opened in 2003.

One of these, The Money Place, is located in a shopping center and co-exists with a check casher. Overall, the expansion has resulted in delivering new auto loans and home loans to the community.

Although these new locations are not full-service branches, the community benefits by having convenient access to financial services in their local neighborhoods—filling the void that traditional financial institutions created by leaving inner cities.

SSA Baltimore Federal Credit Union plans to open three to four more locations in the next two years.

For more information on the program, listen to Jack Houseknecht, CEO of SSA Baltimore Federal Credit Union on the November 2003 Audio Conference, or contact . Kevin Roland, VP of Marketing at SSA Baltimore FCU at (410) 281- 6239 or e-mail Kevin at Kroland@ssabfcu.org.

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  © 2002 Laufer Green Isaac