RIVERSIDE, Calif.–Altura Credit Union is reporting strong income figures and asset growth that it is attributing in part to its success in better penetrating the Millennial market but also to no longer participating in shared branching.
For Q3 2017, the $1.28-billion Altura reported net income of $8.091 million, an increase of 9.9% compared to the same period in 2016. Total assets also increased 4.8% over the comparable period last year, while net worth rose to of 10.7%.
CEO Jennifer Binkley said through the first nine months of the year total loan balances are up 15.19%, driven primarily by auto loans. But Binkley said the credit union has also begun offering more mortgage loan options and its new Uphora Rewards Credit Card program.
Binkley said Altura has been especially successful in attracting younger members, a frequent topic of discussion among credit unions.
“We created an internal marketing team of our own Millennial-age employees to help us develop outreach campaigns to these potential members,” said Binkley. “The results have been incredibly successful. We are 127% over our 2017 target for new members in this age group.”
In a statement, Binkley added that Altura has been strategically reaching out to its members in 2017 for service and product feedback.
“We have made a number of changes in the last six months as a result of listening to our members. Among these are changes at our branches and to our website,” she said. “For instance, we just launched a new online banking portal that is easier to use even though it adds more features. We are revamping our branches so they are more relevant to the local community. For example, our 14th Street Branch features local artists in displays that change quarterly, and a community room is available for use by community groups during regular business hours.”
To ensure it is keeping up with expectations, Altura said it surveys its members annually. An area of concern that came up repeatedly has been long lines in branches. In response, Altura is no longer providing free banking services in its branches to members of other credit unions, otherwise known as shared branching. Binkley said Altura will continue to participate in CO-OP Financial Services to allow no-fee usage of all Altura ATMs for members of other credit unions.
“For Altura, this has negatively impacted our own members,” Binkley explained. “Altura is the largest credit union in Riverside County with 13 branches around the county, making it a popular choice for shared branching customers. Unfortunately, this led to long wait times in our branches as large numbers of people from other credit unions used them to conduct business.
“Altura listened to our Membership and decided to make this change, which should reduce lines and wait times significantly,” Binkley continued. “We may be sacrificing some revenue as a result, but it will greatly benefit our members. While we regret that this may impact those who are members of other credit unions, we must maintain our focus on our own members.”
Binkley added that another area of emphasis at Altura CU during 2017 has been improved employee engagement.