People power keeps credit union ticking

by Julie Taylor
julie.taylor@dailypost.co.nz
A strong community base helped New Zealand Credit Union Rotorua grow during the 2009/10 year.
The credit union saw a 27 per cent rise in lending during its last financial year and chairman Peter Barber said that was positive for members and for the local economy.
"We are helping the people of Rotorua - and that's great. It's what we are here for."
Education is a strong focus for NZCU Rotorua, which is owned by its 5000 customers.
Mr Barber said staff sat down with members and worked through their situation, helping people pay for what they needed, without borrowing more than they could afford.
"We help people manage their money.
"Our staff are brilliant at that."
The credit union's Christmas Club also contributes to the local economy by helping people save for the festive period.
Last month, it released $300,000 from members' Christmas Club savings.
"Come Christmas, they have the money to spend and don't have to come to us for loans."
Mr Barber said the credit union's club allowed members to spend the money wherever they wanted, on whatever they wanted, and they could shop around for the best prices, to make the savings go further.
Community is a vital part of the NZCU Rotorua ethos.
"Our money comes from our members and we lend it back to members, who go out and spend locally."
That community bond extended to supporting local organisations and events, such as the Te Whakapono Trust and the Westpac Rotorua Business Excellence Awards.
"It gets us out into workplaces.
"Our staff take morning teas out and talk to people about the credit union.
"There are a lot of people who do not know what it does."
NZCU Rotorua offers much the same services as a bank, but is owned by its customers.
Educating people about transaction fees and how to minimise them was one of the key objectives for this year.
"It costs them because it costs us and we need to pass that on.
"But you see people using their card in the ATM three or four times in a row, getting balances, making a withdrawal, then rechecking their balances.
"That costs them each time, whereas they can check their balance by phone at no charge."
Members were also able to reduce their fees through the union's loyalty rewards.
Mr Barber said most credit unions had expanded beyond their traditional clientele, but NZCU Rotorua made a conscious decision to stick solely with the Rotorua community.
"We are not as large as some other credit unions - we have about $12 million in assets compared to the $120-$130 million of some of the bigger ones.
"But we have kept that community bond and the business has benefited from that."
He said the Rotorua credit union had avoided the extreme recessionary effects seen elsewhere because of its local focus.