Fiore on Why Alloya Succeeded
Tuesday night it announced it had hit its capital goal of $70 million, Wednesday Alloya revealed more information about its apparent success.
The key: “Tremendous support from small credit unions,” said John Fiore, CEO of the $796 million Motorola Employees Credit Union in Schaumburg, Ill., and chair of the Alloya Charter Advisory Group.
Fiore said in an interview that as of Wednesday, Alloya can claim 1,063 members. Of that number, 400 are under $10 million in assets. Another 400 are under $50 million in assets. “That is our core,” said Fiore.
“The hope of Alloya is that we will be able to help a lot of small credit unions,” he said.
Fiore indicated Alloya already is the biggest corporate, by a count of credit union members, and that he expected to see more growth. “We are getting inquiries from California and from Florida. We believe we will go above 1,100 credit unions.”
NCUA, he elaborated, will consider Alloya’s paperwork at its late September meeting. “Our hope is to launch on October 24,” said Fiore. “We have sent the letter. The ball is in NCUA’s court.”
A big Alloya to-do is further massaging the balance sheet, to meet NCUA requirements. “We are reducing our balance sheet, from $9.8 billion back in May to under $2 billion. We currently are at $4.8 billion. We need to drop $3 billion. We have a plan that will take us there,” Fiore said.
“The big news,” he added, “is that we have a business plan that works and we have enough credit unions that believe in what we are doing to go forward.”