The Vanderbilt Employees’ Credit Union marks a half-century of service

by Joan Brasher
photography by Steve Green

Fifty years ago, the Vanderbilt University Employees’ Credit Union opened its doors with a handful of members and a 25-cent membership fee.

In 2010, the institution manages $21 million in assets for 6,500 Vanderbilt employees. It offers competitive interest rates on savings accounts, low-interest loans, free checking accounts, free electronic banking, free personal finance consultations, a new crop of no-fee ATM machines, and more.

And the membership fee today? Still just 25 cents.

This constant is just one aspect that reflects the institution’s vision of “people helping people,” according to CEO Michael Bittle.

“It’s more than just a tag line to us,” Bittle said. “We are high-tech, but we are also high-touch. That’s really what we’re all about.”

Although the credit union offers nearly every service and product associated with a traditional bank – including traveler’s checks, Visa debit cards, money orders and cashier’s checks – there is a key difference. The credit union is a nonprofit financial cooperative governed by a volunteer board, so when a Vanderbilt faculty or staff member becomes a member, they become an owner with a voice in how the organization is run.

The most visible benefit of this business model is that members don’t have to worry about a lot of fees.

“Banks are all about fee income. We are not,” Bittle said. “Banks answer to their stockholders, but we answer to our members. Unless you overdraw your account, you won’t be charged any fees. And we do our best to make sure you don’t do that.”

In addition to offering low-interest loans for cars, boats and recreational vehicles, the credit union also offers home equity lines of credit for as low as 3 percent.

“Vanderbilt University has a very diverse employee population that spans across a broad age range, and each employee has specific needs and wants,” said Bill Rochford, chairman of the credit union’s board of directors. “The credit union staff takes a personal interest in each member to ensure they can help them with their financial goals. Some people would like a new car or to provide for a child’s college education, to pay off credit card debt or to save for retirement.”

The organization also offers small emergency loans.

“We will make a $100 loan if it will keep an employee from going to payday check-cashing companies, which charge ridiculous rates,” Bittle said. “They call it a service fee, but if you calculate it into an interest rate, it’s about 600 or 700 percent.”

Alleviating the stress that comes with financial difficulties is the goal of Bittle and his seven-person team.

“If we can take the financial stress out of an employee’s life, we’ve helped that individual because they are sleeping better at night. But we’ve also helped Vanderbilt, because the employee is able to be more productive on the job.”

Last year, the credit union’s first ATM was installed near Einstein Bros. Bagels at the Vanderbilt Health One Hundred Oaks facility. Credit union staff members are on site there every other Friday to meet with employees and answer questions.

“So far the ATM has been a huge success,” Bittle said. “Employees appreciate having access to their money without having to return to the main campus.”

ATMs were installed last month at four additional locations: the second floor of the Children’s Hospital by the food court; the second floor of The Vanderbilt Clinic near the cafeteria; the Roundwing Lobby of Medical Center North; and Frist Hall in the School of Nursing. In addition, employees may use the Presto! ATMs located in Publix grocery stores without paying a surcharge.

A popular program the credit union offers is the Christmas Club, a savings program that runs Nov. 1 through Oct. 31 of the following year. Employees designate an amount to be set aside each month through payroll deduction, then they are issued a check for the total, enabling them to do holiday shopping without having to use credit cards.

“Banks don’t do Christmas clubs because they don’t make any money and they are labor intensive,” Bittle said. “But we’re not about making money. We’re about serving members.”

Last year more than 1,700 employees participated in the Christmas Club, saving a total of around $1.6 million dollars, which averages to about $1,000 per person, Bittle said.

The credit union’s volunteer board meets annually, when members have the opportunity to elect new officers who will serve three-year terms. The credit union’s annual report is made available for members to review during the meeting so that they can see the financial health of the institution.

“I view the credit union the same way I would view our health insurance – it’s a significant benefit,” Bittle said. “We are so fortunate to have great health insurance, life insurance and a tuition benefit. The credit union is right up there with the excellent benefits Vanderbilt employees enjoy.”

Veronica Burns, senior director for human resources at Vanderbilt, joined the credit union shortly after coming to Vanderbilt 10 years ago. Burns said she has made use of just about every credit union program, including savings and checking accounts, the Christmas Club, two car loans and a personal loan.

“The credit union has been an excellent resource and benefit added to my employment at Vanderbilt, because it allows me to manage my finances in one place,” Burns said. “The loan rates are more than competitive, and the service always exceeds my expectations.”

Credit union membership is open to all full-time and regular part-time Vanderbilt University employees, their family members and all employees of Vanderbilt-affiliated organizations.

“My ultimate goal is to have all 23,000 employees as members,” Bittle said. “The way we do that is by providing great financial services and by treating individuals as people, not just a number.”

50th Anniversary Open House

The Vanderbilt University Employees’ Credit Union, located at 107 Oxford House, will hold its 50th annual meeting on March 4 from 7:30 a.m. to 3:30 p.m. All are invited to attend the open house celebration, which will feature food, prizes and a raffle for a flat screen TV. For more information about the credit union, visit www.vanderbiltcu.org.


Posted 03/01/10