INDIANAPOLIS — Ron Collier readily acknowledges that Indiana Members Credit Union probably won't ever be on the “leading edge” of the newest products and services.

“We have a motto: keeping it simple,” said Collier, president/CEO. “We think most members want simple, easy-to-use services from their financial institution. We put everything to the 'keeping it simple' test.”

That simplicity hasn't stopped the credit union from recently reaching the $1 billion in assets mark. It is now the second largest credit union in Indiana, serving more than 97,000 members and 1,000 select employee groups through a 24-branch network with plans to build more in Westfield, Brownsburg, Plainfield, Greenfield, Franklin and on the campus of Indiana University/Purdue University at Indianapolis (IUPUI). The credit union utilizes 240 full-time employees.

Collier has been with the credit union for 21 years and has served at the helm for the past four. During his more than two decades of service he has seen what works, a burgeoning, super-competitive marketplace and regulatory changes that the credit union has kept up with to expand. Collier gives much due to IMCU's former president/CEO, Edward Lechner, who served in the top spot for 34 years until retiring in 2003.

“He is responsible for much of what has happened here,” Collier said. “We're still pretty conservative in what we do. The formulas [Lechner has put in place] have worked.”

Founded in 1956 on the campus of IUPUI, the credit union initially served the Indiana University Medical Center and carried a name close to its original sponsor: Indiana University Medical Center Federal Credit Union. Collier came aboard during a time when credit unions were given the authority to expand. IMCU's main field of membership consisted of employees from its sponsor and Indiana University, but regulatory changes helped it expand to several hospitals in Indianapolis. When regulators approved federal credit unions' ability to convert to state charters, IMCU followed that lead as well. Despite its diversity today and a name change to its current moniker, 50% of the credit union's membership works in the medical and educational fields, Collier said. One of the factors that have contributed to IMCU's growth is its strategy of putting a branch wherever it may be convenient for members, Collier explained. There are several large regional banks that have Indianapolis cornered including one with a 100-branch network. “Competition from everyone is a real challenge every day,” Collier said. “People will go open an account based largely on how they're treated and how close they are to a branch.”

With that in mind, IMCU, which started off with four branches, plans to build at least one branch a year “for the foreseeable future.” Collier said while members want the convenience, just as many don't ever walk into a branch, preferring to conduct all their transactions online. Indeed, 50% of the credit union's membership uses direct deposit for their paychecks. Branch transactions continue to climb but electronic transactions are “off the charts.”

“The generations coming behind are more [technologically] savvy,” Collier said, adding the average age of an IMCU member is in the high 30s to early 40s. “We want to be able to serve them. There are two main concerns for the credit union–stiff competition and the electronic age. We have to find a happy medium between serving members who never come to the branch and those who go online.” IMCU's mortgage lending program, particularly its variable rate loan, has also been a strong contender in the hotly-competitive marketplace here, Collier said. Wherever it builds a branch, IMCU also looks to become involved in the surrounding community through joining chambers of commerce, the American Cancer Society and other charitable organizations and participating in school events.

“We've done it for years but the competition does it too,” Collier said.

As for newer areas that some credit unions are venturing into more, IMCU offers members investment services through MEMBERS Financial Network, but doesn't anticipate going into trust services. Collier said at this time, he doesn't see going in that direction because the immediate emphasis is getting its Web-based lending program up by the end of the year or early 2007.

Behind all of what's being offered to members are the employees who are rewarded in so many ways for their efforts. IMCU has a “very low” turnover rate and a big part of that has to do with the heavy leaning on training.

“We feel that if employees know how to do their job well, they will be less discouraged and not leave,” Collier said. “We're fanatical about rewarding employees.”

Employees are recognized for good member service and perfect attendance in a number of ways including gift certificates and pizza lunches. IMCU currently has several focus groups looking at operational issues within the credit union to ensure that members are being effectively served, Collier said.

Besides reaching the $1 billion milestone, IMCU is also celebrating its 50th anniversary. In February, the credit union held a month-long celebration that included weekly drawings for prizes, offered refreshments on Fridays and held a formal dinner and dance for employees. Long-time members were invited to the gala. A video of IMCU's history was shown in all the branches and employees received commemorative t-shirts. For more fun, clippings from events that were going on in 1956, the year the credit union was founded, were posted for all to see.

“This was our way to thank members for 50 years of service,” Collier said.

In December, another event is scheduled to recognize IMCU's billion dollar highlight. Two employees have already penned a song marking the occasion.

“I don't know if we have any secret weapon [for reaching a billion dollars in assets] other than branching and training, training, training,” Collier said. “Our commitment to the members and making it convenient for them has allowed them to be loyal to us.” –msamaad@cutimes.com

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Growing Branch Network Builds Member Loyalty, Helps Indiana Members Credit Union Reach $1 Billion in Assets

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