Members who are tech savvy, highly mobile and rarely visitbranches were those the $5.2 billion American Airlines FederalCredit Union took into consideration when it came to the table todiscuss retooling the cooperative's investment program.

After 10 years with a major industry company, the Fort Worth,Texas-based credit union knew it was time to take a hard look atways to boost the usage of investment services among its 223,500members. That meant looking at other providers to make ithappen.

“They helped us start our program, we did dual management,converted from a CUSO to a department in the credit union,” saidSherry Reams, managing director of the investment and insuranceprogram at AAFCU, regarding its previous provider. “With that said,as we grew the program, we wanted to look at other things thatwould help us grow the program even more.”

After a yearlong due diligence search that included meeting withfive firms, AAFCU recently partnered with PrimeVest FinancialServices Inc., a St. Cloud, Minn.-based broker-dealer that has setout on building its 25-credit union client base. The company servesnearly 600 financial institutions nationwide.

AAFCU's investment and insurance program will be branded as theFlagship Financial Group. Products offered include 529 collegesavings plans, disability income, long-term care and otherinsurance plans. The investment team will include sevenfull-service financial consultants based in offices in theDallas-Fort Worth area, Tulsa, Okla., Miami and Chicago.

Reams, who will head Flagship, said the agreement with PrimeVestwas signed over the summer and the program began Sept. 22. Thecredit union is in the midst of converting about 4,500 accounts,with the aim of completing the transition by Dec. 12. Members havehelped to speed the process up by sending in the necessarypaperwork, she added.

Through Flagship, members will have more access to financialplanning channels and life insurance choices. Reams said theinvestment program will build on assets accumulated throughfee-based and money-managed structures. Talks are under way to hostat least six education seminars on topics at airports served byAmerican Airlines to accommodate members who may have longlayovers.

“If there is anything going on in the country it's uncertainty,”Reams said. “People want to know what's going on, will SocialSecurity be there, will I have enough money to live on inretirement. We want our staff to be advocates for the members. Wewant to meet them at different major life events.”

Reams would not say what amount of investment assets are undermanagement. She did offer that the figure has grown substantiallyover the last two-and-a-half years.

“It's not bad but it's not where we would like it to be. It's amoving target given the markets. Our goal is to have it moving upall the time.”

Meeting that objective may mean connecting with members whereverthey are in the world. AAFCU has a travel industry professioncharter to serve the air transportation industry in addition toserving American Airlines' employees and their family members.Their travel activity often means they do not go into the creditunion's branches, instead relying on online banking. For thosereasons, a financial planning option will be available online andover the phone in addition to via face-to-face sessions.

Reams said this was among the main reasons why AAFCU partneredwith PrimeVest: its technology presence. All five of the firms theylooked at had strong points, she noted. PrimeVest's track recordwith financial institutions was another draw. Even though AAFCU'sprevious provider offered financial planning services, Reamsacknowledged that they were not heavily used by the creditunion.

PrimeVest is hoping its remote capabilities will aid in buildingmore relationships with credit unions, said Sean Casey, executivevice president at the company. Two more are scheduled to sign onthis month, he pointed out.

“It's been our focus for a long time to reach out to creditunions,” Casey said. “There has been a concentration in theindustry of providers. Our complete focus is from clearing toexecution in a challenged regulatory environment to providing lifeinsurance and planning.”

Casey said services like Rep on Demand, which creates a customphone line for credit unions, are valuable financial planning toolsoffered by PrimeVest. The firm is also working with AAFCU to meetthe needs of more retired members.

Reams said that like many industries, the airline sector hasbeen hammered by financial losses. American Airlines, however, hasnever filed for bankruptcy and recently called back laid-offemployees. Still, the trepidation remains for many.

“They're concerned about the economy in general,” Reams saidwhen asked about members' most pressing investment anxieties. “Theywant to know 'where can I put my money and not worry about it.'What we try to do is eliminate that worry by working with theirrisk goals, tolerance and finding investments they're comfortablewith.”