By Ray Birch
LIVE OAK, Texas—One credit union that recently surpassed $10 billion in assets says the secret to getting to that point is the organization can’t act like a big credit union.
The $11.4-billion Randolph-Brooks Federal Credit Union says it has seen the success it has—growing total assets by more than $3 billion over the last four years—by making sure it has remained close to its community and its membership.
Blake Lyons, vice president of marketing and business development, told CUToday.info that being close to members means carefully leveraging data, while being connected with the community by having a lot of feet on the street.
That formula, RBFCU says, is what led it to winning Raddon Crystal Performance Awards from 2009 through 2016, and again in 2019. Raddon’s awards recognize credit unions for achieving a Top 10 ranking within the company’s Performance Index, a balanced scorecard measurement of growth, income, efficiency and margin management.
“Over the years, RBFCU has grown, but our attention to service, products and technology has remained our top priority,” said Lyons. “In 2019 alone, RBFCU grew by more than 70,000 members, setting records throughout the year. The communities we operate in recognize we are a trusted institution and allow us to guide their financial futures. Our members know they can turn to us for whatever financial needs they have.”
Looking for Unique Data
More specifically, Lyons explained, to get close to members Randolph-Brooks relies heavily on its own and third-party data to not only understand member demographics and transaction habits, but to try to learn what is unique about each account-holder.
“We look at our membership data and we don't necessarily try to classify people into a generational cohort; we try to look at them based on what is going on in their lives,” explained Lyons.
With that understanding RBFCU targets its 887,000 members with products and services that address their life events.
“And these life events can be both joyous and stressful,” said Lyons. “Like having your first child is a very joyous occasion, however going through pregnancy can be very stressful. So we understand that and just make sure we are there for our members when they need us. And having your first child does not mean you are 20—you can have your first child at 40. So, again, we classify members based on their life events and offer them the right products when they are needed.”
Stress Reduction
Lyons said the credit union relies on data to determine individuals’ needs with the goal of trying to make those life events less stressful.
“Our efforts are dictated by data,” he said. “We constantly scrutinize the numbers and give ourselves the flexibility to change course quickly and decisively if the data tells us to. Predictive analytics allow us to not only pore over data, but also give our members a more personalized experience.”
Lyons said RBFCU has sought to hang its hat on its value proposition—saving members time and money—that it delivers on.
“We feel it is a big component of our success,” he said. “We want to make sure that we are helping our members save time save money, and earn money. When we look back at all of our offerings we want to make sure they fall into one or more of those buckets.”
But connecting with the community at large, noted Lyons, requires less emphasis on data and more attention to a physical presence. RBFCU has a business development team of 16.
“This is a team that is on the street every business day,” said Lyons. “They're not in the branch. They're not in the corporate headquarters. They are out in the community every day meeting with business and community leaders. They participate in events, really demonstrating we are pillar in the community. People know RBFCU does more to serve the community than just offer great rates and services. They know they can rely on us to help uplift the communities we serve.”
New CFPB Compliance
RBFCU’s rapid growth has taken the CU past $10 billion in assets and, as a result, it is also now under the supervision of the CFPB. But Lyons said passing that threshold was never concerning to the credit union.
“We had been preparing for that for a while. It was an inevitability, so we chose to embrace it rather than try to avoid it,” said Lyons. “We have put a larger focus on the regulation and increased scrutiny from examiners and the CFPB, and that has not impacted our ability to deliver a high level of service to our members.”