[Photo Credit: Pasadena Federal Credit Union]
Previously a Select Employer Group (SEG)-focused credit union, PFCU transitioned to a “community-chartered” institution, allowing residents, workers, and anyone who worships or studies in those cities within the credit union’s coverage to join as members.
The National Credit Union Administration (NCUA) classifies federal credit unions into SEG-based, or community-chartered credit unions. SEG-based credit unions are only for employees of specific companies and industries, while community-chartered unions allow anyone within an identified community to become a member.
PFCU’s expansion shows the organization’s dedication to serving a more extensive demographic, said Melinda Leung-Francis, VP of Marketing.
“We wanted to remove any hurdles that would prevent a lot of friends and family from being able to join the credit union and take advantage of our savings rates and loan assistance programs ,” Leung-Francis said. “Our goal is to be able to serve more members and have a more meaningful impact, especially individuals from underserved and unbanked communities.”
The shift also aligns with PFCU’s mission to “Engage, Educate and Inspire” the community, aiming to replicate successful engagements experienced in Pasadena across other areas.
Leung-Francis said many unbanked individuals need the same access to banking products and services that PFCU members have, so the credit union also focuses on a robust financial education program where representatives go out on visits and speak directly with potential members in order to understand what their challenges are.
“And so knowing what we represent, we believe it’s our duty and our mission, to be able to help others who may not feel comfortable talking about finances or have access to the same type of products that large institutions offer,” Leung-Francis continued.
Explaining the eligibility criteria, Leung-Francis said individuals can now qualify for membership through a number of ways, either via the new community charter (which includes close to 40 cities across Los Angeles), family connections, affiliation with SEGs, or by joining organizations like the Friends of the Pasadena Public Library with a nominal $25 donation.
Asked about the security measures accompanying the expansion, Leung-Francis said that PFCU is committed to privacy and compliance with government standards, assuring members of the same safety and security as larger financial institutions.
“We take consumer privacy very seriously and have measures and policies in place so that member information isn’t being irresponsibly shared with third parties,” she explained. “What a lot of consumers don’t know is that credit unions are regulated based on the same standards as conventional banks. Deposit accounts are insured up to $250,000 by the National Credit Union Administration (NCUA), a federal agency equivalent to the Federal Deposit Insurance Corporation (FDIC) so when they put their money here, they can have financial peace of mind.”
The expansion doesn’t solely broaden membership; it also ushers in a diverse array of financial services including virtual banking options, custom financial education programs, and personalized financial advisory services. Leung-Francis said PFCU stands out with a suite of products tailored to assist underserved populations; this will include Fresh Start checking accounts and Fast Access payday alternative loans. Currently, they already offer fixed-rate credit cards with no balance transfer or cash advance fees,and low-rate personal loans and lines of credit.
While the charter expansion is relatively recent, Leung-Francis expressed optimism that the impact will be positive within the newly serviced communities. The credit union has also extended its engagement and is actively involving itself with local non-profits, city employees, chambers, and educational institutions, she added.
“We work with a lot of non-profit organizations such as Leadership Pasadena, ChapCare (Community Health Alliance of Pasadena) and Flintridge Center, and we also work with a lot of city employees such as the police department and the fire department,” she said. “We’re very involved in our local events, and as we move into these new communities, we want to partner with them and provide resources. We want to help sponsor a lot of these programs that give back to the local community so they can really see positive change.”
To join PFCU, individuals can complete an online application at https://www.pfcu.org/about/how-to-join.
For further inquiries, call (800) 445-PFCU (7328) or email pfcu@pfcu.org.
