Citadel experiences record growth
EXTON >> Citadel Federal Credit Union experienced a record level of asset growth during 2018 — the largest year over year increase in the company’s 82-year history. In a recent press release, Citadel outlined its 2018 results, and looked ahead to its continued focus in 2019 on customers and growth.
Assets for Citadel increased $335 million to $3.4 billion in 2018, according to the release.
In an interview, Mike Schnably, Citadel’s senior vice president of member experience and sales said the company attributes its growth in 2018 to the focus it puts on customers.
“It’s not just words we say in public — it’s real,” he said. “Employees have an empathy for every single customer, and decisions are made based on doing what’s best for the customer.”
Schnably added that the number of credit union members has grown, attrition is low, customers are using more products and balances are higher.
“What’s the secret sauce? It’s simple — we offer great rates that give great value. At the end of the day, most customers would move for a great rate,” he added. “Because of our cost structure, we provide great rates and reasonable fees where there needs to be a fee. People notice that.”
According to a ranking by credit union research firm Callahan & Associates, Citadel
was ranked number one in Pennsylvania in 2018 for providing value to its members. The ranking uses savings, lending and product usage to quantify member value and assign a score to every credit union in the United States. In addition, when measured against 5,500 credit unions nationwide, Citadel continued to rank in the top one percent at the national level, according to the release.
When it comes to providing value, Schnably again credits competitive rates and the company’s team members.
“Customers are our neighbors and we want to do the right thing,” he said.
Schnably said regional expansion has been part of Citadel’s strategic planning for the past four or five years. The company currently has 23 branches, and opened its second branch in Lancaster.
“We have three new markets on the drawing board — Kennett Square in June, North Wales in the fourth quarter and Feasterville in 2020,” he said.
When considering a new market, Schnably said the company looks at “where there are customers with the same needs and desires as our current customer base.”
As a result of the growth, the company hired 92 new employees in 2018, and plans to fill an additional 100 positions across the organization throughout 2019.
Schnably added that the company is also expanding into other convenient channels for customers — going where they are when they make a financial decision.
“We have relationships with more than 500 auto dealerships. So if they are buying a car they can get financing right there,” he said, adding that the approach is about doing what’s easiest for the customer.
Citadel said it will also be focusing in 2019 on enhancing its online and mobile banking experience for members.
Most customers, according to Schnably, prefer personal interaction for complex issues but “we’re seeing an increase in mobile and online banking for day to day transactions.”
Citadel has invested in growing its digital channels, building some of the platforms itself, and working with industry leaders for others, Schnably said. One example of a platform Citadel built was an online account opening platform for opening a CD, checking or loan account.
Security is one of the key principles at Citadel, according to Schnably.
“There are two ways we think about it. The first is institutional soundness – and we are sound,” he said. “The other is in terms of customer data — one of those areas where we are never done. We are constantly monitoring and implementing new technology to protect customers.”
This year, the organization plans to enhance the digital experience for customers with the introduction of increased security and ease with mobile payments, and allow for immediate fraud alerts via mobile at the time of transaction.
In addition, Citadel will roll out an enhanced Skipa-Pay experience in its online and mobile banking platforms that will allow customers to select from their phone or tablet, which qualifying loan payment they would like to skip.
In February, Citadel introduces its Cashback Rewards Checking Account. Unique to the market, it gives members one percent cash back on all qualifying debit or credit card purchases, up to $120.
Citadel continued to expand its community involvement and philanthropic initiatives in 2018 — donating more than $220,000 to nonprofits and charities across its footprint.
The credit union was title sponsor of one of the inaugural Citadel Country Spirit USA in August 2018 — a three-day country music festival that featured 20 artists on two stages — and raised funds for Children’s Hospital of Philadelphia.
The event returns to Chester County in August 2019, with Citadel once again the title sponsor. A portion of each ticket will again be donated to Children’s Hospital of Philadelphia.
The Exton-based credit union primarily serves Bucks, Chester, Delaware, Lancaster, Montgomery and Philadelphia counties, providing banking, investments and insurance services to more than 200,000 customers. In addition to its 23 branches, the credit union offers 42 Citadel ATMs across the area and members have access to more than 30,000 ATMs across the nation through a shared branch network. For more information visit CitadelBanking.com.