CHICAGO - The timing seemed right for Coastal Federal CreditUnion to make some long-term adjustments to its investment servicesprogram. The $1.5 billion credit union recently went from a managedto a dual-employee arrangement under CUNA Mutual Group's MEMBERSFinancial Services program. The announcement was made at CUNAMutual's MEMBERS Financial Services Management Conference held hereAug. 1-3. Coastal moved its financial services program from amanaged employee staff to a dual-employee staff; planned to atleast double staff size; and built a Financial Advisory Centerdedicated solely to investment and trust services. The managedemployee program had provided Coastal with the investment programs,licensing, staffing and payroll since 1992. With the changes,MEMBERS Financial Services would continue to provide the programsand licensing under the new dual-employee program but Coastal wouldhave more control by doing all the hiring and setting the salaryand commission levels, said Chuck Purvis, Coastal FCU senior vicepresident. "CUNA Mutual Group had been encouraging us to go to thedual employee program, but we initially decided not to act," Purvissaid. "Eventually we realized we needed to make the commitment andtake away the protection offered by CUNA Mutual. It was easy to letthem take all the risk, and we would take a smaller percentage." Acritical step was increasing the number of financial advisors andraising the bar on their qualifications. Purvis said they had onlytwo to three people at any one time, and that made it difficultsince Coastal had expanded to 21 facilities around North Carolina.They also required their financial advisors to have, or be workingtoward Series 7, 63 and 65 investment advisor licenses, with aCertified Financial Planner (CFP) certification being preferred.Coastal also built its new Financial Advisory Center, which openedin March. It has a separate entrance from the rest of the creditunion and has an ambiance that aims to help members feelcomfortable and trusting when they are making decisions about theirlife savings, Purvis said. Still, "It's not about the brick andmortar, it's about the attitude with which we approach the memberrelationship," Purvis said. "If we put their interests first, theywill place their trust in us. We know our members are looking foradvisors and planners they can trust. If we provide this level ofservice to our members, we're confident they will purchaseinvestment, trust and insurance products through us." Purvis saidthey have also identified a target range of members with $100,000to $2 million in investable assets, adding most banks and brokeragefirms won't handle this level because it is too small. Nearly28,000 of Coastal's member households fall within that range. WhileCoastal's dual-employee program officially launched July 1, it'sbeen operating since Jan. 1. Through June, business is up 12%versus 2004 with two advisors. Purvis said. The CU's goal is tohave six advisors to assist members. Getting the word out tomembers has indeed started to pay off. Purvis said they held fiveseminars in April and had more than 250 attendees. Shortlythereafter, they closed a $1.9 million trust account that resultedfrom a seminar. Credit unions, regardless of their size, can haveadvisors on hand ready to assist members with their investmentgoals, he suggested. "If you think an investment program is just asimportant to your members as a mortgage or an auto loan, then hirethe right people and pay them," Purvis said. A shift in how membersview their financial needs is just the motivation for credit unionsto meet those needs, said Chris Rafanan, CUNA Mutual Group,Southeast Member Services Officer. "More and more credit unionmembers are taking a hard look at their financial lives, and theyare looking for a credit union that can take control of theirinvestments," Rafanan said. "Members are looking for someone whocares about their hopes and dreams and is not just sellingproducts. Coastal Federal Credit Union is a shining example of thismodel." [email protected]