Over the past 10 years, Mayo Employees Credit Union (Rochester, MN) produced
double-digit annualized growth in assets, shares, members and loans--nearly
twice the industry average.
Mary Hansen, who has been with the credit union for 6 years, four of them as
CEO, attributes much of their success to the close relationship they have with
Mayo Clinic. Their story illustrates how a single field of membership does not
have to be a limitation. In fact, it was a driving factor in their growth strategy
over the past decade.
Mayo Employees’ Decade of Leadership |
|
December 1994 |
December 2004 |
Annual Growth |
Shares |
$ 46,655,513 |
$ 184,531,676 |
14.74% |
Loans |
$ 42,604,841 |
$ 151,180,428 |
13.50% |
Assets |
$ 54,602,850 |
$ 207,650,722 |
14.29% |
Members |
10,293 |
27,234 |
10.22% |
Capital |
$ 7,082,958 |
$ 23,109,343 |
12.55% |
Employees |
15 |
62 |
15.15% |
Ave Share Balance |
$ 4,533 |
$ 6,776 |
4.10% |
Ave Loan Balance |
$ 4,451 |
$ 8,869 |
7.14% |
Member Focused
For 60 years, Mayo Employees was a traditional "savings and loan shop",
offering just the basic services. Today, the credit union is a full-service
financial institution with auto and mortgage loans, credit cards, financial
brokerage and insurance services, and a full suite of online banking options.
They serve 30 sites in 7 states across the US.
The changes came about as a result of member and employee surveys that indicated
a demand for increased service. The credit unions responded in 1997, opening
the floodgates of change when they started offering their first checking accounts.
But it wasn't until 2003 that physicians were even allowed to join. Prior to
that, the credit union's membership only include allied health employees (all
non-physician employees of Mayo Clinic).
One way Mayo Employees affiliates itself with their members is by offering
products tailored specifically to niche markets with the Clinic's staff. For
example, Mayo Employees books mortgage loans that don't qualify for resale on
the secondary market for young residents whose student loans and other debt
prevent them from qualifying for a traditional mortgage. They also work with
Mayo Fellows, foreign nationals with no U.S. credit history but who need homes
for 6 months to 5 years.
Employee Driven
Over the past decade, the credit union staff has grown four fold yet Mayo Employees achieved its phenomenal growth without the corresponding growing pains many institutions might expect. Mary attributes this to the fact that all credit union staff members are employees of Mayo Clinic itself (the credit union reimburses Mayo Clinic for all salaries and benefits). Therefore, they are held to the same high standards and live the culture of respect that all Mayo employees are expected to embody. They also receive the same benefits as other Mayo employees.
In addition, since the credit union is tightly linked with the clinic, Mary
not only reports to the credit unions' member-elected Board of Directors, she
also works with a division chair at Mayo Clinic and presents information to
their Board. While some might view this a cumbersome bureaucratic step, Mary
views each meeting as a way to constantly reinforce the credit union’s
value to a critical constituency.
This credit union example shows how a single field of membership does not have
to be a limiting factor in anyone's growth strategy. In fact, it was a key driver
of Mayo Employees strategy which yielded double the growth of the industry as
a whole.