State Employees Credit Union in Raleigh, North Carolina, may be the second-largest credit union in the U.S. by assets, but it still has plenty of room to grow.
The $50.8 billion-asset credit union appointed a new CEO last month, with a plan to get the institution caught up to its peers in its use of technology while also keeping the pace of growth of its branch footprint.
The promotion of
The credit union industry has a lot of women leaders already; a 2021 study by the Credit Union National Association found that
"So it's apparent that credit unions are leading the way in this regard and should be proud that women not only have a seat at the table, but are thriving in leadership roles," Brady said in an interview. "I have been blessed to serve for the past 35 years alongside other great female leaders within our credit union and our industry who have inspired me to strive for more."
Brady shared her views with American Banker on issues of technology, branch expansion, M&A and regulation. The following is edited for length and clarity.
What strategic changes can we expect to see under your leadership at SECU?
LEIGH BRADY: We might tweak just a few items, but our strategic plan outlines the initiatives that our team members will carry forward and keeps members at the center of everything we do at the credit union. That's been the hallmark of SECU since 1937 and continues with our strategic plan and its implementation. You can expect that I will develop a team that is thoughtful and measured when looking at ways to offer even more for our members wherever they are in their financial journey.
What is your position on
SECU has 275 branches throughout the state with at least one location in all 100 North Carolina counties. Our newest branch just opened [in June] at 7725 Midtown Market Avenue in Raleigh. For SECU, meeting members wherever they are in their financial journey means that we will keep a large branch footprint across the state. This model affords us the opportunity to provide in-person service for our cooperative and will be further complemented by our expanding digital options.
SECU has been accused by some of being slow to
It's no secret that we have integrated our digital offerings at a more measured pace than many financial institutions, including our credit union counterparts. While we have not been initial adopters of some convenience offerings, we serve 2.7 million member-owners and there's a lot at stake when you are delivering products and services to that many members. With that said, we are undergoing numerous technology enhancements and our teams will be working aggressively to implement those enhancements for our members; in fact, we recently announced that we are
expansion of our member mobile and online capabilities.
Which
Members have responded very positively to our low rates for auto loans extended through tier-based pricing. We saw an immediate uptick with 8,300 auto loans originating in the first month of the new lending approach. The last time we had that volume in one month was August 2021 when rates were rock bottom. As we continue to provide a more competitive pricing structure for the remainder of our consumer product lineup, we anticipate an overall increase in volume, like that experienced with auto lending. We have also seen home prices continue to increase, putting a strain on the ability for many consumers to afford a 20% down payment. Our five-year adjustable rate mortgage product has been popular, and we believe it will continue to be the product of choice for our members looking to purchase a home, especially as we provide 100% loan-to-value financing with no private mortgage insurance. For those members who took advantage of the historically low first mortgage rates, many of them will remain in their homes and look to tap into their equity by establishing a home equity line of credit to assist with home renovations, debt consolidation and other financial needs.
How important is driving
While SECU is not focused on top line growth, we have been fortunate that our membership has grown organically over the years mainly through immediate family member relationships. However, the true measure of success continues to be the engagement and satisfaction of our members. SECU's field of membership consists of North Carolina's state government and public school employees and their families, and we currently serve over 2.7 million members. They are at the center of all we do and providing more value for our members through expanded products and services, digital enhancements, competitive lending and deposit rates, fee eliminations and financial education resources remains our top priority.
What are your thoughts about SECU's planned
SECU is fully supportive of LGFCU's decision to become independent and remains committed to ensuring a successful transition period. In the interim, LGFCU members will continue to have full access to SECU's branch locations, ATMs and account management services. We will work hard to support the needs of LGFCU as they chart their future.
Deposits are certainly the hot topic among many credit unions, and capturing those deposits in the market is driven primarily by interest rates. We will continue to make adjustments in our rates as prudent for our organization, always keeping our members in mind. Fortunately, SECU has a strong capital position with more than $5 billion in equity and a current capital to assets ratio of 10.36%, making us a very well-capitalized credit union. Combining this equity with ample liquidity options puts SECU in a good position to meet member and operational demands.
What is the biggest
The increasing scope of regulation. The collective weight of new federal and state laws and regulations being introduced each year requires credit unions of all sizes to allocate more and more of its members' funds to meeting these compliance mandates. While there will always be a need for sensible regulation and consumer protection, the credit union industry doesn't have a track record of mistreating consumers or engaging in risky business practices. When crafting legislation, we'd like to see lawmakers consider the unique role credit unions play in the financial services ecosystem.
As CEO, what is your
SECU is supportive of a strong community of independent credit unions in North Carolina and beyond and has no interest in any mergers. We very much value the opportunity to assist smaller credit unions and wish to maintain those strong connections in the spirit of cooperation among cooperatives.
