CEO Monthly April 2017

CEO MONTHLY / APRIL 2017 27 , This is a landmark year for Democracy Federal Credit Union (FCU). Having received its charter onMay 26 1936, just two years after the passage of the Federal Credit Union Act, the firm is now celebrating 80 years of service, and has come to represent a byword for responsibility. Unlike banks that make profits off their customers to pay their shareholders, Democracy’s profits are returned to its members in the formof no- and low-fee products and services and competitive interest rates in accordance with a credit union, governed by a Board of Directors comprised of members. 80 Years on the Frontline The 1936 charter was originally issued in the name of Social Security Employees Federal Credit Union. The name was changed to FSA Employees Federal Credit Union in 1946, and again to HEW Employees Federal Credit Union in 1955. In March 1984, ‘Employees’ was deleted and the company’s views on its staff as partners and members became more and more prevalent; the name was changed accordingly to HEW Federal Credit Union. After a further three decades of growth, recognizing its democratic structure and principles, and honouring its commitment to its growing family of members, the firm became Democracy Federal Credit Union on January 1, 2015. Membership eligibility was initially limited to employees of the Social Security Board in Washington, D.C. and their immediate families. Numerous government reorganizations and subsequent amendments to the company charter over the years have brought the Credit Union to its current position, serving the employees of the Departments of Health and Human Services (formerly Health, Education & Welfare), Department of Education and employees of other agencies and their families. Democracy FCU also serves people in many underserved areas of the Washington metro area. Today, Democracy FCU operates out of four offices – in Washington DC, Philadelphia, Skyline Branch, Virginia, and Maryland – in addition to their Executive Offices in Alexandria, Virginia, which is home to the company’s member services, credit card, lending, accounting and marketing departments. The steady growth of Democracy FCU over the last 80 years has been highly notable in the corporate tiers of the USA. It is highly interesting to note that it took 36 years for the Credit Union to reach its first $10 million in assets and a membership of 12,000. Just 14 years later, though, when the Credit Union celebrated its 50th birthday 1986, the firm’s assets had jumped to $39 million reflecting an increase of nearly 300% with membership at 26,000. In 2001, Democracy FCU surpassed the $100 million mark in assets. Today, the Virginia-based company’s primary goal is to help our member achieve their financial goals by offering affordable products and services, providing an alternative to Big Banks and protecting our members from predatory lenders. Striving to educate its members on financial management options designed to help secure their futures, Democracy FCU offers comprehensive banking services delivered through nationwide credit union service centers, shared branches and surcharge- free ATMs. Typically, Credit Unions offer consumers an alternative to stockholder-owned banks and other for profit financial services institutions. Democracy FCU, though, is owned by the devoted members that have deposited funds into the Credit Union. As a not-for-profit financial services cooperative, they remain steadfast in their goal to exist purely as a means of helping their members to succeed financially. This is why its earnings are used to offer lower loan rates to members, as well as competitive investment rates and financial education, and to create a staff that is committed to service. Democracy Federal Credit Union is committed to providing members with the products, services and guidance needed to meet their financial goals. It is considered a vital component to their success that they retain and develop their ability to gain the trust and confidence of their members, which they accomplish by providing competent, caring services, and exceeding expectations in demonstrating commitment to members’ financial success. Financial education comes to Democracy FCU’s members, and to members of the community, through one-on-one counselling efforts, seminars and financial education programs geared to youth as well as adults. What really aids them in building this outreach program is the recognition and valuing of demographic diversity in their staff as well as in volunteers; this keeps the company striving to bring people of diverse backgrounds and experiences into leadership and other roles at the credit union. For the last 80 years, Democracy Federal Credit Union has been working to build and strengthen a unique credit union movement by providing financial and in-kind resources to others within the credit union community, and by actively advocating the credit union difference at all levels of the government and in other appropriate public forums. This commitment to the Credit Union Movement and other cooperative activities binds the company intimately in with the communities that it serves.