BANKING & FINANCE INTERVIEW
Credit advantage Credit unions are seizing the opportunity to grow their customer base with low fees and rates
Mike Tomko President & CEO – BrightStar Credit Union financial literacy. People are sometimes naïve and don’t do the level of due diligence that they should. We partner with a company called Balance Financial and if one of our members is having a hard time with money, we provide the 800 number to help them receive the advice they need. We pay for this service on behalf of our members so it is completely free for them to utilize. We also find that financial literacy in schools is critical. We spend time and effort educating people at all levels on how to be financially savvy.
What are the advantages to joining a credit union instead of a bank? We pride ourselves in trying to be the lowest in fees and rates. Credit scores under 650 are usually rejected at a bank but in a credit union, almost everyone is ranked under 650. I’ve come to realize that the difference is that we typically lend money to people who may not have stellar credit records. They don’t make a ton of money, but they need cars, credit cards and personal loans. We make all of these products and services affordable to them. That’s a fundamental distinction between banks and credit unions. Banks tend to chase their members out and inadvertently send them directly to us. How critical is financial literacy? It’s scary how people are not up to speed in terms of 106
| Invest: Greater Fort Lauderdale 2021 | BANKING & FINANCE
What role will credit unions play in Greater Fort Lauderdale during the COVID-19 recovery? There is a need for us; we’re a major balancing force. If bank fees go up, everyone will jump up. The only ones who will not, will be the credit unions. Years ago, Bank of America decided to charge users to have a debit card. People were upset, so our memberships grew to an all-time high because we were the only alternative. We’re the outlet that makes banking fair and reasonable, providing all the technology, services and products that banks provide. We’re a major competitor and we keep banks in check. What are your priorities for the near term? Not everyone was fortunate enough to maintain a good credit score during this pandemic. People will come back, and they will need different services. If their credit score was hurt, banks will not want to talk to them, and that is what we are here for. We take more risk because we believe in the inherent goodness of people. We are again one of the Best Places to Work, for the second year in a row, and that is an important focus of ours because we realize we’re only as great as our employees. Training is essential, that’s why our training department is going above and beyond standard practices. We’ve completely redesigned our program and present it in a fun, engaging and most importantly, effective way.
