By Ray Birch
JEFFERSON CITY, Mo.–In one small town where there really isn’t a facility at which a credit union might buy naming rights, one credit union is building its own.
River Region CU here plans to build a 3,000-square-foot community center for members and others to use on the site of a former restaurant in the town’s Old Munichburg area.
“A lot of large credit unions are getting naming rights to this and that as a way to get their name and brand out,” said River Region CEO Rick Nichols. “I think everyone in the industry has recognized that credit unions have a great story to tell and that consumers don’t know as much about credit unions as they should.”
The center, which will be known as the River Region Community Center, is expected to be completed by the end of Q1, 2019.
“This is really a great way for us to do something really neat for the community and members and at the same time build brand awareness,” said Nichols. “I sincerely am looking forward to the day when people regularly say, ‘We are holding our event at the River Region Community Center.’”
More Than Just Awareness
The $220-million River Region hopes the center will be used for weddings and other community gatherings.
The project is much more than an awareness effort, emphasized Nichols.
“This is giving the community something it really needs,” he said. “The Jefferson City area is home to only 40,000 to 50,000 people—a smaller community that desperately needs a community center type of space for everything from anniversary parties to small political gatherings to Boy Scout and Girl Scout meetings. There just are not enough public spaces for those kinds of things in this town.”
Nichols said the lot for the site is small—too small to include a branch—but is a positioned well on a heavily traveled road.
“You can almost see it from the state capitol building,” Nichols said. “State employees are within walking distance.”
River Region will place a drive-through video teller on the back side of the building and a digital display board on the front, which will be used to announce events at the center and also promote the credit union.
Why It Works In Market
Nichols acknowledged that the expense for the center, which he chose not to disclose, would likely not be as worthwhile in a bigger town.
“For example, we have offices in Columbia, which is a city of 150,000 with a lot of neighborhood communities,” he said. “You could go into Columbia with a community center, but you would not have the same impact. You could not affect the entire city and would have to focus on a neighborhood instead.”
River Region is already receiving calls from Scout troops asking about using the center for meetings.
“We’ve had dance troupes calling, as well. Some members said it would be great for 50th anniversary events,” said Nichols, who noted the credit union will not charge groups to use the center.
Another reason why the center is a good move for the CU in this small town is there are a lot of credit unions and community banks in the market, and no large banks.
Seeking Differentiation
“We have to look for new ways to differentiate beyond saying we are a Main Street institution and not a Wall Street bank,” explained Nichols. “The community banks are the same as us in that regard.”
River Region expects to break ground on the center by mid-July, and Nichols said members are asking about it.
“We announced that we were adding 15,000-square-feet to our branch in Jefferson City at the same time we announced construction of the center,” said Nichols. “All our members are asking about is the center and not the branch construction. That shows us the interest.”
Nichols believes that community pride is strong in small towns.
“This center places us in a very good light within the community he said. “It’s also nice the center is only a half mile away from this state’s legislature—so they will see first-hand what credit unions bring to their communities.”