Five years ago, Gesa Credit Unionacknowledged that having an investment program was not a toppriority.

Then the Great Recession crept in around 2008, forcing the $1.2billion cooperative in Richland, Wash., along with many in theindustry, to rethink of ways to capture wallet share on everythingfrom business loans to financial planning.

In 2009, Gesa launched an investment services program that will mark itsfive-year anniversary this year. Serving a gamut of members fromall walks of life, the credit union’s wealth management divisionhas $44 million in assets under management, according to EileenGriffin, senior vice president of human resources and wealthmanagement.

“It has had ups and downs. The market has certainly beenuncertain. At this point, we are positioned very favorably,”Griffin said.

Members have access to a full range of products from mutualfunds and annuities, to managed accounts and insurance as well asfinancial and retirement planning, Griffin said. The managedaccounts have become very popular with the volatility in the stockmarket, she added.

“We have a strong commitment to service so we will open evenvery small accounts,” Griffin explained. “We take the time to meetwith potential investors, learning about their risk tolerance aswell as their goals and plans, before making investment decisions.Our goal is to have long term relationships with our membersthrough the investment program; not just to increase the assetsunder management.”

To get Gesa’s program off the ground, the credit union hired anindividual with previous broker/dealer experience to oversee thedivision, Griffin said. In 2011, Griffin joined Gesa after servingas vice president of marketing and human resources for XCU Capital Corp., the credit union owned-broker/dealer thatwas acquired by LPL Financial. Griffin said upon coming to Gesa,she immediately began expanding the program. That includedincreasing staff from two financial consultants to four anddeliberately looking for the type of person who would fit into acredit union program.

“I was committed to hiring people who I knew would be willing towork with smaller accounts, as well as the larger ones and peoplewho could integrate effectively with the credit union culture,”Griffin recalled.

Gesa’s investment program was to cover the credit union’s outerbranches more effectively and to offer more access to the servicesof a financial consultant throughout the Tri-cities, Griffinsaid.

If was critical to have an environment where when a member comesto Gesa for investment advice, they should be treated with the samehigh service standards they have come to expect from other areas ofthe credit union, Griffin explained. Hiring two more financialconsultants was in line with Gesa’s overall growth. The cooperativeadded two branches in 2013 and its expansion plans include twoadditional new branches in 2014.

Additionally, technology and tools have given the financialconsultants an edge over others in the market, Griffin said.

“When we sit down to meet with a potential client, they can bepresented with an analysis that makes them feel confident about theinvestment decisions and future planning,” she noted.

Still, as the investment program grew, a few growing painssurfaced.

“There are always challenges. Paperwork presents a hugechallenge,” Griffin said. “We have an experienced registered salesassistant that takes on the paperwork battle every day. He savesthe financial consultants from the time and frustration that isrequired to do business in this industry.”

Just as the program was really ready to grow, Gesa went througha core conversion, which took a great deal of time and attention,Griffin said. Now that the project is completed, the core upgradeis a faint memory and the investment program is better positionedto move forward. Rather than focus on growing noninterest income,Gesa prefers to provide a much needed service that its members hadbeen requesting of the credit union, she pointed out, adding, thiswill become a focus in its planning moving forward.

Gesa’s investment program launched a year after the Great Recession emerged to cripple the country’s economy ineverything from job losses to a crash in the housing market. Thecredit union’s members, like many others nationwide, felt thesting.

“There have certainly been repercussions. People are staying inCDs in spite of the very low rate simply because they feel it’ssafe,” Griffin said. “Our financial consultants, however, have hadgreat success working with these members because they are able todo so face-to-face inside the comfort of the credit unionenvironment. Our members really appreciate that.”

At the time of Gesa’s investment program launch, the Richland,Wash., area had more doctorate degrees per capita than any otherplace in the country. The credit union’s roots grew from GeneralElectric employees who formed the cooperative in 1953 after locallenders weren’t willing to make consumer loans. Gesa transitionedto a community charter in 1996 and has a membership that includes ahigh percentage of scientists, engineers, doctors and other medicalspecialists. Still, the type of member using investment services atGesa runs the gamut, Griffin said.

“There is a wide range of people with accounts. We are actuallyopening a surprising number of starter accounts for people in their20s and 30s,” she noted.

The goal for 2014 is increasing revenue for the investmentprogram, Griffin said. It’s a battle shared by others in theindustry. While credit union-affiliated households hold one-half ofall personal financial assets in the U.S., and credit unions have areputation for being a trusted financial services provider, growingin the investment services space continues to be a struggle.

Market share has actually dropped, as the total number ofcredit unions offering investment services continued to shrink in2012, according to the 2012-2013 Credit Union Investment ServicesBenchmarking Study, conducted by management consultant firmKehrer Saltzman & Associates in Charlotte, N.C. From 2008to 2012, the number of credit unions selling investments andinsurance declined by 12%, which mirrors the 12.7% decrease in thetotal number of credit unions nationwide.

Household revenue penetration was another metric KSA studied.The firm said it is a more meaningful penetration measurementbecause it looks at the member’s economic unit and shows how muchinvestment services are being used. Credit unions averaged $20.66in annual investment services revenue per member household; the topquartile averaged $23.30.

Meanwhile, Gesa may have all the pieces in place to be theexception to stalled market share.

“We have outstanding personnel in the financial consultant rolesand they are now comfortable with the LPL system, the Gesa programand are working very effectively with the branch staff,” Griffinsaid. “We are fortunate to have the support of the branches and ourmarketing team. We are running on all cylinders and looking forwardto all upside in 2014 and beyond.”