By Ray Birch
CHUBBUCK, Idaho–One credit union that has been rapidly growing its branch network says it has no plans to slow down, but adds if a CU is going to pursue such a strategy it must first be seen as relevant by the communities it serves.
That’s the philosophy of Kent Oram, who leads Idaho Central Credit Union.
“We have 46 branches now and of those 45 are in Idaho, one is in Spokane, Washington,” Oram explained. “They're spread across all of Idaho.”
Oram, who will retire at the end of the year, has overseen rapid growth. He will hand over the keys next year to EVP/COO Brenda Worrell, who has been tapped as his successor.
Oram joined ICCU in 1984 as data processing manager and was named CEO in 2007. While CEO, he has overseen growth to $8.7 billion in assets from $613 million, to 516,538 members from 67,797, to 1,700 employees from 249, and to 46 branches from 18.
Oram told CUToday.info the member and branch growth pace Idaho Central has enjoyed is sustainable.
The Big Question
“That’s always been the big question of my career,” kidded Oram. “We’ve been asking ourselves that for the last five years—should we stop building branches? As it turns out, the answer has been no, and I don’t see that changing. We're just going to keep building branches.”
Oram said Idaho Central will keep building offices at its current space for two primary reasons: credit unions are well received in Idaho and his organization is seen as being relevant in the lives of the people who live in the communities it serves.
“I believe that credit unions in general have to think about whether they have good strategies around strong membership growth. And if they are not growing members, that is a sure sign the general public is saying ‘We don't think you're really relevant anymore’,” said Oram. “Members in your community must see you as relevant. To survive, your consumer base has to think that you are important.”
Oram said Idaho Central has achieved relevance among its communities several ways, one being that the organization is very present in members’ lives. Oram said having a branch within a short driving distance for almost any member certainly helps, while also noting the products and services offered have to be attractive and current.
Just as Important--Digital
And, in what at first appears ironic for a credit union that has invested heavily in branches, he said ICCU is also very digital focused.
“We have not ignored the digital channel,” said Oram. “In fact, we spend just as much on developing our digital delivery services as we spend on our branches. Most of our transactions are digital, and the trend for us is for those transactions to continue to grow. But one thing we know is that despite members doing most of their business with us online, here in Idaho they love to stop by the branch. That is clear.”
Involved In Communities
What is also clear is the communities Idaho Central serves is people expect the CU to been seen and participate in their daily lives, outside of simply financial services.
“Potential and current members see us as an active participant in their communities,” said Oram. “We support things that they generally support. We try not to get edgy or support something that might backfire on us—which can happen. We're just out there with our members.
“We involve ourselves in a lot of things—chambers of commerce, local events, charitable contributions and so forth,” continued Oram. “We have two to three community development people assigned to every market and they drive around in very recognizable Jeeps that are all marked up with our credit union signage and they have flashing lights…Those Jeeps are everywhere.”
A Good Market for Credit Unions
Oram said his credit union’s approach to driving growth also works well because the market is very good for credit unions in his state.
“There are certain parts of the country where credit unions are doing better than others,” he explained. “We're in Idaho, and that's a good market for credit unions. There is a lot of receptivity here. It's just interesting to see how well credit unions are received in some markets.”
As CUToday.info has reported, each quarter NCUA’s analysis of credit union performance by state consistently ranks Idaho at the top or near the top of the list for growth in assets, lending and membership.
Staff Performance
Oram said he would be overlooking a key aspect of Idaho Central’s success if he did not address the performance of staff over the years.
“We have really focused on our people over the years,” said Oram. “We make sure we hire the right employee, put them in the right spots, treat them well and make sure they enjoy their workplace. And then we let that positive attitude of our people radiate outward to our communities. I think it always starts with people. For me, that's the most important part of any business.”
CUs Competing With CUs
Looking back on credit unions over his long career, Oram said what stands out today is how the face of the competition has changed.
“It used to be that we felt we're competing more with the banks, and still we’re getting most of our membership growth from the national banks,” Oram said. “But, today it seems like credit unions are a lot more competitive with each other than they used to be. And there's no changing that. I think that’s the biggest difference going back to the 1980s. In the ’80s credit unions were not quite in each other’s faces as much as they are now. That really doesn't bother me much, I guess, as I'm a fan of the competition. I think consumers get the best deals that way when there's tough competition.”