How BECU Could Become Credit Union King and a Banking Phenom

Drop the “B”. Well, it is not quite that simple, but in essence the idea is that simple and aligns with the roots of Boeing Employees Credit Union - ergo BECU.

For those who’ve never heard of BECU, they are one of the largest Credit Unions in the United States with $17B+ under management and 1M+ members across the United States. Their growth, success and expansion has been aligned precisely with its unique members that it sought to serve - Boeing employees (all 100k+ of them).  

With the rise, fall, growth and expansion of Boeing, the trustworthy BECU followed. And, naturally, BECU served not just the employees, but spouse, kids and in-laws alike (I got my first BECU account in middle school and have been with them for 30+ years).

Unlike big Main Street banks (e.g., Bank of America, Chase, Wells Fargo), who are perceived as “profit-seekers” who gouge their customers with hidden fees and costs, BECU has benefitted from a perception of trust, affinity and tribal knowledge by serving Boeing employees and their families. Similarly, USAA has done largely the same by exclusively serving the needs of US Military Officers, their families and progeny.  I have accounts with both, and their service is unmatched.

BECU, however, is in a unique position amongst credit unions given today’s banking environment, and commoditization of financial services.  Big banks have lost credibility in the market with a series big snafus. And, trust is today’s most important currency in any relationship.

• BECU understands the needs of Enterprise Employers and how to work with their Executive teams strategically;
• BECU has a long history of supporting Employees throughout their entire career, then retirement (from “Boeing”);
• Core Banking “systems” are being democratized by Public SaaS (no more costly data centers);
• BECU has enough resources to make significant mobile-first and digital resource investments to push customer experience to new heights;
• BECU has doesn’t have the overhang of 1000’s of unnecessary retail branches (but does understand the need for “some presence” in metros for complex banking transactions);
• BECU sits in Seattle - one most important Tech Ecosystems in the world with a bevy of world-class Engineering talent at its fingertips.

What’s next?

BECU, I encourage you to drop the “B” to become Employees Credit Union (ECU) and consider a white-label ECU bank offering for major Enterprise Employers (like you did with Boeing). Obviously, start in your own backyard with Amazon ECU, Microsoft ECU, and Starbucks ECU.  These organizations have 100’s of thousands of employees and to my knowledge - no dedicated Employee Credit Union. More importantly, enterprise employers want their employees to make good financial decisions, and benefit from a partner who can invest with them for the long-haul.  You’ve done it before (with Boeing) - now bring those skills and expertise to other major Employers to spur your next phase of growth and re-instill trust in our banking system.

Some keys to making this strategy a success?  

• Work closely with target enterprise Executive management teams to specifically understand their desired goals to best support their employees (and families);
• White-label your ECU offering for each Enterprise employer.  You’re building on their trust and relationship with their employees - it is about their brand.  (Be the "Intel inside" of their ECU bank offering);
• Go 100% mobile-first. People spend 3-5 hours per day on their mobile phone and every banking indicator showcases mobile banking on a perpetual upswing.

While Jack Henry has done a great job providing a banking platform for small community banks and credit unions, there is a wide open opportunity to provide a white-label offer specifically for enterprise employers.  

BECU can become the credit union king if it chooses to build upon its expertise to work with more enterprise employers. By evolving to Employees Credit Union (ECU) you could propel dramatic growth and become a banking phenom.