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PETROLEUM DIRECTORY: Advancial Federal Credit Union: Primarily for the energy industry
Susan Braund PNA Contributing Writer
Some truths stand the test of time. In 550 B.C. Aesop wrote, in his essay Bundle of Sticks, that “union gives strength” — a tenet that has self-propelled into the new millennium.
This strength in unity is inherent in Advancial Federal Credit Union’s business philosophy — caring for its tight-knit membership. “Our unity is expressed in caring,” says Alaska Manager Laurie J. Beaty. “Members are not numbers to us; service comes naturally because members are like family. In fact, it’s not unusual for us to share Thanksgiving dinner with members new to town. The biggest draw for my employees and me is the caring. It’s like doing volunteer work that we get paid for!”
Originally organized as a federally chartered credit union to serve the financial needs of Atlantic Richfield Co. employees and their family members, Advancial has steadily grown from its initial 1937 charter numbers of $35 in assets and seven members to more than $500 million in assets and 40,000 members. The National Credit Union Share Insurance Fund (NCUSIF), an arm of the National Credit Union Administration (NCUA), federally insures each member’s funds up to $100,000. The NCUA is a U.S. Government agency. Advancial is set up as a traditional credit union — structured to serve a certain industry.
“We’re not open to the public and are dedicated primarily to serving the energy folks,” says company vice president for strategic development, David Selsky. “We’ve found that energy employees are people who seek out the best in everything they do. Our members are wherever the oil is and wherever they are, we are. That’s why we have offices in Louisiana, Anchorage and Texas. Our members are found in refineries, offshore and on Alaska’s North Slope!”
Selsky has been with Advancial for two years and looks forward to many more. “I was previously on the vendor side of the business, but always looked favorably on how credit unions do business,” says Selsky. “For me it is a good a way to combine community service with a livelihood! Credit unions have a commitment to members. We take care of our own.” Sponsors and members Today, Advancial Federal Credit Union’s membership includes several sponsor companies and the credit union has members throughout the world. To belong, an individual must belong to one of the sponsor groups, or be a household member or family member (spouse, parent, grandparent, aunt, uncle, child, grandchild) of a member. Once a member, always a member — even through relocation or changes in employer.
“Financial solutions for our energy members are our forté,” says Selsky. “Serving expatriates is a good example. They are hired by American firms, but have no credit history in this country. Few lenders will give them anything, which makes it difficult to rent a place and get established in the community. We extend services to them, which I consider one of our strengths.”
Advancial is a full-service financial institution offering an array of up-to-date financial services to its members. According to the company website, the credit union is ranked in the top 200 among all federal credit unions in America.
“Special programs like our Money Musketeers program for children encourage families to be fiscally responsible. Members wanted to enroll their kids the first day,” says Selsky. “Kids learn the value of saving, plus, the have access to free prizes based upon savings. They learn about principal and interest.”
Credit union vs. banks Seventy-five million people throughout the world prefer credit unions to banks because of preferred service, competitive loan and savings rates and more security. Best of all — they experience ownership in their financial institution.
Joining a credit union equates to joining a financial cooperative. Essentially, members pool their savings in order to offer loans, savings dividends and financial services to other members. Unlike banks, where profits are paid to stockholders and owners at the expense of customers, credit union's profits are returned to members in the form of better rates, lower and fewer fees and enhanced service.
“The credit union way of life is to give back to the people,” says Selsky. “And that’s just what we do. Because our membership is composed of such responsible individuals, we can afford to distribute dividends generous by comparison to most banks or other credit unions.”
The basic credit union-bank differences:
• not-for-profit cooperatives; banks run for profit
• make loans only to their members; banks loan to outside borrowers
• member/owners; bank customers have no ownership
• board of directors is elected; bank customers have no vote
• boards are volunteer; banks have paid boards
• serve only membership; banks serve the general public
• service-driven; banks are credit-and profit-driven
• believe competition benefits all consumers; banks eliminate competition through legislation and lawsuits Best-of-breed benefits A sponsor group is a company or association, which offers credit union services to their employees or members as a no-cost benefit. “Prospective employees judge companies by their benefits and programs,” explains Selsky. “The type of company that approaches Advancial wants to offer best-of-breed benefits to retain the best people. They turn to credit unions that have aggressive rates and the fewest fees. The secret to our aggressive rates nationally is our exclusivity.”
Company signup is free — there are no liabilities, costs, or contracts associated with being a sponsor group. Advancial out sources the credit union to companies who want to show this appreciation to employees but do not have the capability or expertise to start own credit union.
“Our sponsors groups range in size,” Selsky points out, “some of our valued sponsor groups include Petrotechnical Resources Alaska, ConocoPhillips and BP.”
For more information about how your company may become a sponsor group, contact the Development Officer at 800-322-2709 x1763 or at [email protected].
In Anchorage, call 258-5884.
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