RE: New Niche – The Hispanic Community
Credit union: Avestar Credit Union
Location: Waterloo, WI
Asset size: $66 Million
Field of membership: Residents/Workers of Columbia, Dane, Dodge, Iowa, Jefferson and Rock Counties
CEO: Kay Radloff
Avestar Credit Union (Avestar), based in Waterloo, Wisconsin, has developed a groundbreaking initiative to better serve the Hispanic community in the counties of Rock, Dane, Dodge, Iowa, Jefferson, and Columbia. Led by CEO Kay Radloff, Avestar has discovered a niche that not only addresses a significant community demographic need, but also fosters financial inclusion and growth.
Some years ago, Avestar noticed a service gap when young children were translating financial matters such as opening accounts and taking out loans for their non-English-speaking parents. This reality was far from ideal, as it led to potential misunderstandings and a lack of financial awareness among those credit union member families.
Therefore, Avestar embarked on the recruitment of bilingual Member Service Representatives (MSRs), starting with local high school students who were fluent in both Spanish and English. Consequently, when word got out about bilingual MSRs, the credit union experienced marked growth.
To cater effectively to the Hispanic community, Avestar pursued the following strategic actions:
- Bilingual Staff: Avestar hired a full-time Spanish-speaking employee, which significantly improved communication and service delivery. With the assistance of America’s Credit Union (formerly CUNA) through their management program and at the suggestion of a CUNA employee, a video was created for the credit union to highlight Hispanic members and employees. Th result yielded the hire of an additional seven Spanish speaking employees.
- Language Accommodations: The credit union enhanced financial accessibility by adding Spanish forms and launching a Spanish-language website, funded by a $10,000 grant from the Wisconsin Credit Union League.
- Compliance and Inclusion: Avestar navigated regulatory hurdles to serve members without social security numbers or those using aliases, ensuring they could still access financial services legally and securely.
Avestar faced multiple challenges, but the credit union overcame them by refining their processes and policies, focusing on education to reduce the use of false documents, and ensuring that all financial activities were conducted transparently and legally.
This focused approach has not only increased Avestar’ s membership and loan portfolio but also significantly boosted their financial measures. From 2010 to 2020, loans grew by about 50%, and checking accounts increased by approximately 180%. These figures are a testament to the effectiveness of Avestar’ s targeted service enhancements and community engagement strategies.
Avestar continues forward adjusting and expanding its services on an as needed basis. The recent merger with Members First Credit Union has further extended its reach and capabilities, particularly in serving the Hispanic community in Madison, Wisconsin. Avestar certainly remains committed to learning from and adapting to the needs of its members, ensuring that they can provide the best quality service.
The credit union’s dedicated approach to serving the Hispanic community illustrates a powerful model of inclusive banking. By addressing language barriers and cultural needs, Avestar has not only enhanced its business growth but has also made a profound impact on community development. Their journey shows how credit unions can effectively serve niche markets while fostering financial inclusivity and literacy.
The above profile was curated from Bridgeway Credit Union “Lending: Pawnshop Alternative”, a submission in the Blueprints for Small Credit Union Success published by America’s Credit Unions – March 2024