"Independence Day" is June 1!
😎 Don't overlook "that other", very-close-to-home, anybody can join credit union in North Carolina. Civic... formerly known as Local Government FCU.
The SECU Board in 2022 badly bungled a positive 40-year partnership between SECU and LGFCU. During that time, the credit union for North Carolina local government employees - which SECU worked hard to form - grew from "nada" into a $4 billion institution. Having destroyed the relationship of trust, the SECU Board chair tried to cover up the mess with a "no proposal proposal" wittering [means "banal chatter"]. The LGFCU Board understandably wasn't buying it - no one else did either.
It will be interesting to watch how this relationship "further blossoms" after June 1. LGFCU members will be confronted with loss of local SECU branches. Hope the SECU staff is ready for the uproar!... it probably will not be pretty! Many LGFCU members are eligible through spouse and family members to join SECU; and, with no "real" local branches may choose to bail out. This may not be fun to watch.
As things settle down, SECU members may take notice that Civic offers a competitive alternative for many services - and remember all those SECU members can join Civic! SECU for example has $6.7 billion sitting in share accounts earning .25%, while Civic is already paying almost 4x as much at .90%. Civic is currently paying higher rates on 6, 18 & 24 month CDs - the current member investments of choice at both credit unions. Money market rates at both credit unions are currently the same.
✅ If you'd like "the full scoop" on the LGFCU➡CIVIC transition here are the FAQ's published by Civic [link].
😎 Don't think credit unions compete with each other? Get ready for showtime on that hallucination!
... wittering has consequences
under faq "LGFCU member-requested financial solutions that keep more money in your pocket with better rates.'
ReplyDeleteThen ask Naylor if that was true. How come they have so many inflated salaries for staff well above average from their members, and the expense to launch Civic has been covered from the money of LGFCU members since 2018? Dig a little deeper at the cost of deconversion from SECU and the expense to try and win the business and minds of legacy members. They basically stole from hard-working members, who for many will be left with no ROI. Fewer branches, a digital platform that has nothing unique that others do not have, weak member services, and an internal staff where many are desperately looking to get out before the ship begins to list.
DeleteI see legal action in the future ... get out your pocketbooks members ...
ReplyDelete“Things are not always as they seem“ ...
ReplyDeleteWhy would SECU staff face the uproar? Why wouldn’t LGFCU/Civic staff deal with that?
ReplyDeleteLGFCU has 400,000 members, not everyone will get the message until they arrive at a branch after June 1... just the way it goes despite best efforts by Civic
DeleteGonna start sooner than that - no more lending thru SECU branches as of 4/1.
DeleteAnd "best efforts" is generous. They have played games with being forthcoming about how dramatic a change this will be for their members. SECU branches will take the heat.
Advise giving them Naylor's phone number out of the gate. This will be his circus.
BR5-49.
DeleteWhat year was Civic established by LGFCU?
ReplyDeleteDidn't Naylor work at Langley for a pretty long time? You think Langely sensed the weakness down here with SECU and Civic and decided to move in?
ReplyDeleteCivic was chartered in 2018 which was before the “no proposal proposal “. I do not know the back story but was their plan all along to establish Civic and then merge with LGFCU? That gives them the independence to create their own products and services. They offer business lending and offered a rewards card well before SECU did.
ReplyDeleteThat’s why they will succeed. They pay attention to the needs of their members. Civic / LGFCU doesn’t need SECU. Anxious to break away from that 40 year old core.
DeleteMost of my finances (including bill pay) are with Fidelity. The primary reason I still have money at SECU is for some future day I need their branch services. Credit unions can survive by treating members fairly and keeping their branches.
Delete@9:46am Ah so you think its fair to compare rates at Civic, who does not have to pay for a vast and valuable brick-and-mortar footprint nor do they offer safedeposit boxes, to SECU’s rates who provide much more for their members than Civic does? Am I getting that right?
DeleteLGFCU paid SECU handsomely for the use of SECU Facilities. Now their members with "dual citizenship" can use branch services, keep their money at the better deal for them CIVIC and SECU has been screwed over.
DeleteBack in the dark ages at SECU, even though SECU had a "vast and valuable brick and mortar footprint" it offered some of the best savings rates and the same A rate for all members. while doing this and a whole lot of very innovative things to boot, SECU continued, quarter after quarter to have one of the lowest operating ratios in the credit union world. oh don't forget the low chargeoffs. Members who borrowed the money paid SECU back----much better job on those loans back in the dark ages before computers in 2021. what ever would SECU have done if The Board and Gym Haze had not come to the rescue. Thank goodness for industry standard and new/new!!
Delete1:42. good point, and when the revenue from the operating agreement goes way, where and how much is the proportionate expense take out?
DeleteAnother large shark? "Capital One Financial Corp. is opening its first Charlotte office, leasing the 13th floor of The Line in South End. Capital One currently has employees in Charlotte working remotely but lacks local branches
ReplyDeleteToo much lack of credit - in not calling out for several years, LGFCU/Civic was looking for a path to independence. SECU did not soil the relationship; that rain left the station before Haye arrived. After Hayes left, SECU management offered an option for the relationship to stay, and Farmer Naylor said NO! His ego and that of the Board were never going to turn the ship around. He firmly feels he can move away from SECU 280 plus branches and over 1000 ATMs to less than 12 branches and some hairball ATM partnership to convince members that their digital offering is a better service than SECU has ever provided. It's a fact that they have spoken about this in many internal meetings in the past 18-24 months; they can and will do it better than SECU. Anyone tried working with Civic call center these days? Heck, they even hired a former SECU SVP to run the call center, and that hasn't improved things. No promise of hiring 100-plus employees to handle volume is going to solve it in the end. He'll offer higher rates to buy loyalty and see how long that will keep them going as the dust settles after over 400K members lose their branch/ATM access. In the end, I do not think he cares about losing members and becoming a smaller CU. However, his operational expense will shine a bright light, and not only will members be impacted, but so will the staff. When he ousted Mark Caverly from the exec team, many should have sat up and raised some added suspicion.
ReplyDeletelgfcu has operated in red last two years in a row
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