MSUFCU continues to grow and “build dreams together” during the pandemic

April Clobes is an MSU alumna and the president and chief executive officer of the Michigan State University Federal Credit Union. She joins Spartans Athletic Director Bill Beekman for this MSU Today conversation. Beekman is a member of the MSUFCU board of directors.

Show Notes

“We began in 1937 and we recently celebrated our 83rd anniversary,” Clobes says in discussing the credit union’s beginnings. “Credit unions are membership-based non-profit cooperatives. They work a lot like some of the things that you might see today like a GoFundMe.”

Clobes says MSUFCU continues to embrace the latest technology to provide members with the best possible service. There’s even an “Ask Fran” chat bot to help answer members’ questions on the credit union’s website. Fran was the credit union’s first employee. She was hired in 1957 and worked there for 30 years.

MSUFCU is offering its members loan extensions, Savings Builder plans, and increased online engagement opportunities during the pandemic. The branches are considered essential businesses and remain open.

“We have found ways to serve members while meeting all the health department, state of Michigan, and MIOSHA orders. We have the branches set up with markers on the floors. There's plexiglass. And we have a mask requirement. The drive-ups are available for those who don't want to come inside a branch. We've seen unprecedented volumes in our call center and our online services team, a 250 percent increase over last year. And we were able to continually serve our members and get their questions and ease their fears during this time with the same number of employees as last year, even though we had such an increase in volumes. The team has really risen to the occasion on living our mission and serving the members during these really challenging times.

“We've had quite a robust suite of digital products since the early 2000s. You can certainly do everything online,” Clobes adds when detailing some of the credit union’s new offerings like CVVKey and increased video chat opportunities. And she explains how important the physical branches are to members, even during our increasingly digital society.

“I get often asked, ‘Why are you putting a branch up when people don't need branches anymore?’ We certainly wouldn't build branches if it wasn't good for business. Every day, I get member requests for a branch in their community. Those of us who are asking why we keep building branches tend to be the members that are fortunate enough to have a branch pretty accessible to them. We're probably rare in that we opened two brand new branches in the last eight months during the pandemic. And those branches within two to three months of opening have done an incredible amount of business, even with reduced in-person interactions during the pandemic time. We see tremendous growth any time that we open a branch.

“In fact, every time we've opened a branch, within three years of the branch opening in the region that it opened, the members almost doubled their deposits or their loan balances with us. And then we grow about 30 percent in new members. And that's a pretty significant model to follow for growth for the organization. Now, those folks may come in once every three or four months, but they still want to have a local presence for their financial institution. And there's just something about that physical location that makes you feel connected to your financial institution that people look for close to their home.”

Clobes details the MSUFCU philanthropy ethos, particularly as it relates to MSU Athletics, the Wharton Center’s Broadway Series and its Institute for Arts & Creativity, and scholarship and academic support for students. 

MSU Today airs every Sunday morning at 9:00 on 105.1 FM, AM 870, and however you stream at home. Follow and subscribe at Spotify, Apple Podcasts, and wherever you get your podcasts.

Creators & Guests

Host

Russ White

I host and produce MSU Today for News/Talk 760 @wjrradio and @MichiganStateU's @NPR affiliate @WKAR News/Talk 102.3 FM and AM 870.

What is MSU Today with Russ White?

MSU Today is a lively look at Michigan State University-related people, places, events and attitudes put into focus by Russ White. The show airs Saturdays at 5 P.M. and Sundays at 5 A.M. on 102.3 FM and AM 870 WKAR, and 8 P.M. on AM 760 WJR.

Unknown Speaker 0:00
Welcome to MSU. today are one of our guests. Today is April, Clovis April is an MSU alum, but most importantly, is the President and Chief Executive Officer of the MSU Federal Credit Union. And in the interest of full disclosure, I, I sit on April's board. And I have been just so impressed with the credit union over the years that thought that they would make a April would make a wonderful guest on our program today. So in April, could you start out by telling us about a little bit about the history of the credit union, how it, how it came to be, and, and its its relationship with Michigan State,

Unknown Speaker 0:46
we began in 1937. So we're actually celebrating, we just celebrated last week, our 83rd anniversary, and the credit union started with faculty and staff. So in 1937, just a few years at the end of the recession and the Great Depression, we had an opportunity to form cooperatives in the United States. And mostly it was due to the fact that few people of you know, regular, modest means could be banked at that time, you had to I t's when I tell the story to students, you know, I think everyone thinks faculty are, you know, really well paid. But the truth is, you know, they're not among the, you know, country's richest, and certainly not in 1937. So credit unions are a nonprofit cooperative, where it's membership based. And how it works is a lot like some of the things that you might see today, like a GoFundMe, individuals needed to get a loan. And back in those days, it would be up to $100. And if you needed alone, the founding board members who were all faculty and staff at the university, who were volunteers who worked for free, would call up, let's say, 10 other members and ask those 10 members to bring in $10, and deposit and then the loan could be made. And also, because of the time it was really small and a small time, you know, for people on campus as well. And so if bill, you came in and needed alone, and we called 10 people, everyone would know it was Bill Beekman who needed that loan. And so you'd feel, you know, a lot of social pressure to return the payments back to the credit union. And so that's how we began. And so for the first 20 years, the credit union was run entirely by the volunteer board of directors. You mentioned you're on our board, and they're all still volunteers today. As that's the the model of a credit union system. And so then, in 1957, the credit union hired its first employee, her name was Francis was neski. She was the credit unions manager at that time. And so she began as our first employee and stayed at the credit union until 1987. And, and so Fran has a great history, not only for our organization, but within the industry as a whole as she was very active in the credit union movement and helped the formation of several Lansing area and Michigan area credit unions, as well.

Unknown Speaker 3:23
In April, one of the things that some of our listeners, who are credit union members may not appreciate is that when you go online, there's an an ask Fran feature that was actually named in in honor of her.

Unknown Speaker 3:39
Yes. And so you know, we've come full circle, we have a chatbot. So in the advancement of technology, we're using chat bots to help with questions on our, on our websites. If you have a question, you can chat with Fran. And so we named Fran, first digital employee or digital assistant, after our friend, our first actual employee.

Unknown Speaker 4:05
Yeah, I think that it's it's so fascinating. And in the time we're currently in with an international pandemic, that really the credit union fulfills, in many ways, the same function that it did back in 1937. With essentially, neighbors helping neighbors and, and through the pandemic, you've you've kept that culture alive. What kinds of things is the credit union doing uniquely because of the times we're in?

Unknown Speaker 4:38
Yeah, there's a strong parallel to what's happening today in terms of how much unemployment there is in our economy and the challenges for, you know, our members and all consumers during this, you know, past eight, nine months, so the credit unions and a variety of programs to help Of course, I think most lenders are trying And you know, most financial institutions are trying to do the right thing by their, their borrowers. And so the credit union has, we have extensions. So if you're, you know, in a temporary layoff position, you can ask for your loan term to be extended. So you don't have to make payments. You can ask for deferment. So you can move for three months of deferment off of your loan payments, you can skip a month of payments, there's a variety of you know, options for managing your loans. You also, you know, can apply for a hardship loan at a low rate with favorable terms, so you can afford the payment once you're back employed. So, we've done a lot of things like that. We've also launched a new product, that's called savings builder. And, you know, during times like this, it's really important that people have an emergency savings account. And so this account was designed to help people get that you know, initial savings in their account. So then they can move maybe to other you know, savings products, once they have established a minimum emergency savings. So, this product is designed to pay you more on lower balances. And so this incense people, of course, to try to save into this account to have that emergency fund for times like this show, we've done a variety of programs, probably the thing that I'm most proud of is our team has really like pivoted to help members and to be able to serve in unique ways and times right now. So we're considered an essential business, everyone still needs access to all of their accounts. And, you know, they have to be able to pay their bills and receive their social security and their direct deposit and all of that. So the credit union is essential. So we have found ways to serve members well, meeting all the health department, this the you know, state of Michigan orders my OSHA orders. And so we have, the branches are set up. So you can, you know, have markers on the floors, there's plexiglass, of course, you have a mask requirement. And so all of those things are in place to safely serve our members, the drive ups are available for those that don't want to come in. And then, you know, we've seen unprecedented volumes in our call center and our online services team to at points during the pandemic, they the volume was, you know, on an online chat with an with an agent, not not with Fran was 250% increase over last year. And you know, we were able to continually serve our members and get their questions and ease their fears during this time with the same number of employees as last year, even though we had such an increase in volume, so the team has really risen to the occasion and living our mission and serving the members during these really challenging times.

Unknown Speaker 8:08
To me, one of the most interesting things about about our current times is that the the credit union has, has always put in place cutting edge technology and and has always been pushing the envelope of making its products and services accessible to people, you know, remotely So one example my I have a younger brother who's a foreign service officer and has maintained his MSU Federal Credit Union accounts, despite living literally all over the world and has the ability to access those services from anywhere. And that's that's all driven by technology that has come in so handy over the last year, as we've dealt with the circumstances where people, you know, sometimes can't get out of their house and, and need those services remotely. So we talked a little bit about the chat bot friend, but but it tell us about some of the other ways that people if someone's at home and they just can't get out. Maybe they have a disability that doesn't allow them to be particularly mobile or, or maybe in this pandemic, they just are concerned about their health. How do they access the credit union services and what what kind of tools do we have that make that easy for people?

Unknown Speaker 9:37
We've had quite a robust suite of digital products for service on you know, really since the early 2000s. We have you can certainly do everything online. So we have a computer line which is our home banking account. And we also have mobile apps that are native to your Android or your Apple You know, we have those of setup within those, you can do a check deposit by taking a photo with your phone and depositing the check right there and the app, we also have a program that's called member to member. And so you can, you know, if so if your family or friends, you know, you owe people some money, you can try it, and they're both you're both members of the credit union, you can transfer money, right on the phone, you don't have to call us or come in, you can do a member to member transfer. And so you can easily do that on the phone just requires either the person's email or their phone number. And that that's quick and fast. And we see a lot of Of course, our students utilize that. We also during the pandemic launched a video chat, so much like you could do online chat with an agent, you can video chat with an agent. And, and this is really designed because depending on the type of transaction you're trying to do, it gets a little more complicated, you know, online. And so it's better to have a conversation like you would in person. And then also, of course, you can do some verification, of driver's license and to the person's face, we also have the ability to within that video chat, the agent can show the person some documents or locations on the website for the information that they're seeking. So some of those things have been really good technologies. They've been extraordinarily utilized, of course, during during this time. And maybe one of the neat things that we're doing right now is we're actually piloting a program that starting today is dynamic CVV code. And most people are like, what's your CVV code, but when you buy something and use your credit card, and they say, what are those three digits on the back? That is your CVV code. And you know, because we're doing a lot more online shopping. People have concerns about the safety of their card number and their card information in an e commerce environment. So this program that we have, that we're partnering with visa, and a company called kinome allows you with an app on your phone that's provided through access with the credit union, you can put in your card information, it verifies that it's our card, and all of that happens, and then you log every time you open the app, it gives you a dynamic CVV show, it's constantly changing. So when you go and do your online transaction, you don't actually put the CVV that's on your card into the transaction field, you use that dynamic one. So this way, if the information is compromised in any way, that number won't be valid after that transaction. And all of the, you know, your card number, your expiration date, and this CVV are required in order to be able to make purchases. And so they know if anything were to happen, this piece of information isn't going to be valid, and so you won't be able to execute a transaction. So those are some things that we've done during this time to help members as maybe some of our consumer behaviors are changing.

Unknown Speaker 13:31
That's really, really exciting. When will that be available to our members.

Unknown Speaker 13:36
So we have a pilot program that's launching right now. So we did have earlier this month, we sent out a survey and asked members if they wanted to participate. And I recognize some people don't respond to all the surveys or don't, you know, maybe busy that week. So if this is something that you'd like to be a part of as a member, you can contact the credit union, you know, in all the ways you normally would, and our team will share the information with you on how to sign up and have this app for your phone.

Unknown Speaker 14:09
So April, we are we've we've talked a lot about the the technology available to credit union members that the the many ways that you can access the credit union services, whether it's through your phone, your computer, the telephone, so many different opportunities to access via technology. But one of the things I think you found is that Yeah, well you know, when we're not in a pandemic under wonder what we might think of as normal circumstances, people really still like to have the ability to access a branch and to go in and see a person sitting across the table, face to face. Sometimes whether it's for a relatively straightforward transaction or or more Commonly something that may be a little more complex, maybe somebody is refinancing a mortgage or, or getting a car loan or something like that. And it's, it's just easier to go into the, to the, to the branch and, and have a conversation with someone face to face. And one of the things that, that you focused on as CEO of the credit union is making sure that those opportunities are also available to people so and you've been exposed expanding our branch network, such that it's really accessible to people across the state. So would you share a little bit with us about about the credit unions, many branches?

Unknown Speaker 15:40
As you noted, I get often asked, like, Why are you putting a branch up when people don't need branches anymore? And, you know, I think we all know how to make a good business decision. And you know, we certainly wouldn't build branches if it wasn't good for business. And you know, and then every day, we I get countless member requests for a branch in their community, you know? And so I think those of us that are asking, why do we keep building branches tend to be the members that are fortunate enough to have a branch pretty accessible to them. So you know, we're probably rare in that we opened two brand new branches in the last eight months during the pandemic. And those branches within two to three months of opening, have done an incredible amount of business, even with reduced in person interactions during the pandemic time. We see tremendous growth. Anytime that we open a branch. In fact, within three years, every time we've opened a branch, within three years of the branch opening in the region, that it opened, the members almost double their deposits or their loan balances with us. And then we grow about 30% and new members. And you know, that's some pretty significant model to follow for growth for the organization. Now, those folks may come in, you know, once every three or four months, but they still want to have a local presence for their financial institution. And I think maybe some of the best examples I can give is that we opened a branch, right at the start of the pandemic, in the beginning of March in Traverse City. It's an area we don't have, you know, didn't have a presence, but have a lot of MSU folks up north who are members and would always ask, why don't you have a branch in Traverse City. And, you know, some of the questions about having a branch are really related to we do need enough members that will come those once every few months to the branch to effectively support the branch. And so we started to have enough members in Traverse, to be able to support the branch in the region. And, you know, the very first day we open the branch, some our branches located on Union Street, in in the downtown area, so not right in the main streets, but slightly off. And somebody walked by, and she was on her way to another financial institution and looked up and saw the credit union walked in, we've been open two hours, and said I was a member in the 70s. And, you know, I just loved the credit union, but you weren't here in Traverse City. So I close my account, and can I reopen my account. And oh, by the way, I need a boat loan because that's what I was going to go get. And there's just something about that physical location that makes you feel connected to your financial institution that people look for close to their home. We opened a branch and hold switches in the Lansing Community also this summer. And we we did a very safe, grand opening event in order to celebrate for that team. And as I was sitting waiting for my turn at the remarks, I was watching the traffic come in and out of the branch and the drive bumps. And we were there about 45 minutes to an hour, and the line never stopped. And again, showing that there is a reason for physical presence. I know people can do things in many ways, but I think all the delivery channels tend to work together. And you need to meet the members where they are when they need you at each and every time they need you.

Unknown Speaker 19:30
So we've got many branches in the Greater Lansing area. But we also as you mentioned, have a branch in Traverse City and then we have several branches now in in the Metro Detroit area. So, so easily accessible, just about wherever you are in a at least in the Lower Peninsula at this point. So

Unknown Speaker 19:53
absolutely. You know, and we can't forget we do branch in Grand Rapids as well. So I'm sorry if Yeah, no, I didn't mention those branches either. So you're helping me out. So yeah, we have, you know, five to six branches in Oakland County and a branch in Grand Rapids, and then you know, in Traverse City, so agree we're trying to get to where the members are in the state of Michigan.

Unknown Speaker 20:15
So April, one of the things that people might not appreciate about the credit union, and we talked a little bit about its close ties to the university, obviously, Michigan State University is in the name of the credit union. And it got its start through the faculty. But the credit union really does an extraordinary job of giving back and being part of the communities in which it operates. You know, and and for so many years, that was the Greater Lansing Community. As the credit union expands more to Southeast Michigan, West Michigan and northern Michigan, in the credit unions outreach will grow in those areas as well. But we'll talk a little bit about the the, the the very generous support that the credit union gives Michigan State itself. And I think people would be surprised to learn how, how integrated the credit union is into much of the university in terms of supporting philanthropically a lot of the work that goes on at MSU.

Unknown Speaker 21:24
So the credit union has a long history, as you noted, of supporting the university in a variety of different ways. Of course, for our purposes, today, we have been a supporter of athletics for well over 10 years now. And, you know, what's what I always find interesting, I can give a few more examples and some of the other programs, but the way that we try to partner with the university is to have an opportunity for the university to see some success, the credit union to see success for their members, and for our members to have some access that they might not have had otherwise, if the credit union hadn't participated in the partnership. And so a great example, with MSU athletics is our members have opportunities to access either, you know, an opportunity to meet a coach, they have an opportunity to come to see a hockey game at mn you know, and I know those things aren't happening this season, but they've happened in the past, and I'm confident they're gonna happen again. And so the members are able to, you know, have an experience that they might not have been able to on their own. And so that's part of what I think is fun about our partnership with the University. So with that we we support a variety of programs across campus, a lot of them are arts and culturally focused. So we support the Wharton center Broadway series and

Unknown Speaker 22:55
an institute program for education for students. So young people have an opportunity to learn how to do a Disney musical production, because the credit union has endowed an education institute at Wharton center. Again, bringing programs to our community that might not have been able to be feasible without the support. One that I think a lot of people are becoming more aware of is we have an endowment in the College of Music for a visiting jazz artists to come and tour teach and perform with our own faculties and students in the College of Music. So we've had, you know, some world renowned jazz musicians come to our community. And so in a non pandemic time, in the academic year, the credit union would host a Blue Monday performance with this jazz artist and the MSU jazz faculty, this would be a performance that, you know, if you were in New York City would be you know, a hard ticket to get and probably cost over $100. And this is a free performance you can have right here in in the credit unions, you know, buildings, then those performers spend the week touring the state of Michigan visiting communities, music, you know, to the community in maybe downtown Detroit or in northern Michigan, and they will perform with the high school program, have a concert and then the high school gets to keep the proceeds of the ticket sales from those performances. So, you know, really integrating, you know, music performance in a variety of ways. Probably the best story that comes out of that program is adjust student and MSU was, you know, met one of the artists you know, through their work at the university, and then went to New York and actually went to this performers, we know concert program, and he noticed her in the audience and asked her to come sit in with his band. And here she is performing, you know, in New York City in a jazz environment and then afterwards helped Connect her with some other individuals so she can begin her career performing in New York, you know, that wouldn't have happened otherwise, she wouldn't have been able to have some of those opportunities. So it's been kind of fun to see what we do. And then maybe the last area that we really focus on is scholarship and academic success for students. Part of the credit union's mission statement Ends with You know, wanting members to achieve achieve their dreams. And providing opportunities for students to be successful while they're at Michigan State is really important for you know, the, the students to be able to achieve their dreams. And so we have scholarship programs for first generation college students coming down issue, we have a study abroad scholarship for students who are doing a study abroad program. We have some scholarships in individual, you know, colleges, based upon some of the program work that we do there. And then lastly, we provide a an opportunity award each year to every academic college, Adam issue, which is called the Dean's choice, Grant, and the deans of those colleges can award this to any program or student that they like in their college for academic success.

Unknown Speaker 26:41
That really is exemplifies the just the extraordinary and comprehensive nature of the credit unions commitment to, to the community and to MSU in particular, so, April, before I let you go, I always like to end these conversations with with a fun question or two. And so I'll ask you, when you're, I know that your your work at the credit union keeps you extraordinarily busy, but but when you're when you do have a few moments of free time, what do you what do you enjoy doing in your in your time away from work?

Unknown Speaker 27:21
You know, probably the first thing that comes to mind is reading I'm an avid reader. I don't get to do that as much as they used to. I like to you know, spend some time with my mom, she she's moved to the region than the last couple years. So that's been fun for me. I bought into the peloton bike craze. This during the pandemic like everyone else, I'm not sure I'm at the point of enjoying that yet, but I'm really trying. And, you know, and then I think everyone who knows me would tell me that I have to admit the truth, which is I do enjoy retail therapy. So I have a great black turtleneck collection and shoe collection.

Unknown Speaker 28:06
Very good. Well, April, thanks so much for joining us today, helping us learn a little bit more about the Michigan State University Federal Credit Union and the many services that it provides to members throughout the state of Michigan. So thanks again and we'll talk soon Thank you

Transcribed by https://otter.ai