It was in 1937 when a group of teachers, put off by the big banks that failed and sparked the economic collapse, decided to pool their money, turn their backs on traditional banking, and founded their own credit union, the Racine Teachers Credit Union.
That was the foundation for what is now Educators Credit Union, which is still based in the Racine area but has a footprint throughout southeastern Wisconsin.
WHAT’S A CREDIT UNION?
A credit union is a not-for-profit, member-owned financial cooperative. The first credit unions began in Europe in the late 1800s and were focused on the principals of self-help and self-responsibility. The movement spread to the United States often organized by employees within organizations that later expanded to include communities of likeminded people.
As the credit union movement made its way to Wisconsin, 10 teachers in Racine seeking a place to save and borrow money in a better way for their families formed the Racine Teachers Credit Union. At its beginning, RTCU’s first president Erwin Wall hosted credit union services inside his home on Orchard Street, a home that still stands today. There wasn’t a fully functioning branch yet.
Members could open accounts, make payments or whatever was needed, right at Wall’s kitchen table. The organization’s first “vault” was a metal cash box. Everything was done manually.
“It was a very humble beginning for a billion-dollar organization,” said ECU Director of Community Engagement Victor Frasher, who’s worked for the credit union for 22 years.
At that time, it was only open to teachers and their families, and it was $5 to join the credit union.
Throughout the next 85 years, the organization underwent a name change and continued to grow.
The first “non-home” office didn’t open until 1961 on Washington Avenue. Full-time office hours began in 1968 and the first “branch” office opened in 1972 at the University of Wisconsin-Parkside.
However, one thing that hasn’t changed is the $5 it takes to join the credit union.
“We are not for profit, not for charity, but for service,” Frasher said. “We hold that close to our heart; that’s what we believe in at the core. The communities that we serve are very important to us.”
Now, Educators Credit Union has 24 locations in 11 counties: Racine, Kenosha, Milwaukee, Walworth, Washington, Waukesha, Jefferson, Ozaukee, Dane, Green and Rock.
ECU employs over 500 people and has more than 200,000 members who are no longer only teachers, but have plenty of other occupations.
“It’s a very large financial institution in southeast Wisconsin,” Frasher said. “We do have deep roots in Racine. We’re always looking to deepen the partnerships in the communities we serve.”
PERKS OF THE CREDIT UNION
Because credit unions are focused on the financial wellbeing of the members they serve, most offer financial counseling and credit improvement programs.
ECU promotes financial empowerment to its members.
“We have a whole host of tools for our members to make solid financial decisions,” Frasher said. “We are owned by our members so we want them to be doing well financially. If our members are doing good, our credit union is doing good as well.”
If the credit union has a good year, the organization rewards loyal members. Frasher said he received over $100 back from the financial cooperative because of his loyalty of doing services with the credit union.
“The more loyal you are to the credit union, the more your rewards will be at the end of the year,” Frasher said. “I don’t know any financial intuitions like a bank that’s giving money back at the end of the year.”
The organization has now hit the $3 billion mark in assets. ECU offers custodial accounts, to financial aid opportunities, retirement planning and everything in between, Frasher said.
In an article titled “Despite the COVID Slump, Credit Unions Thrive,” the Shepherd Express reported last year, “Wisconsin’s larger credit unions, which often had assets in the hundreds of millions just a few years ago, have grown significantly: Landmark Credit Union represents assets worth more than $5 billion; Summit Credit Union has more than $4.3 billion; UW Credit Union has just passed the $4 billion mark, $700 million more than at the end of 2019; Community First Credit Union reports more than $3.4 billion; and Educators Credit Union reports more than $2.6 billion, up from $2.1 billion one year ago.”
Racine Unified School District Executive Director of Academies and Transformation Alexander DeBaker said in a statement that Educators Credit Union has been an “incredible” partner to the district and the Academies of Racine for many years.
“ECU provides our students meaningful experiential learning opportunities where they apply classroom content to real-world challenges like working in the credit union’s high school branches and participating in Reality Check Day,” DeBaker stated. “These learning experiences truly prepare RUSD students to be college and career-ready.”
ECU additionally has strong democratic principles, Frasher said. The organization holds an annual meeting open for all members to attend. The ECU Board of Directors go over a yearly report, the credit union’s goals as well as other projects and things currently going on across the credit union.
Members can ask questions, voice comments and concerns, addressing the ECU board directly.
“It’s a great way of being in tune and hearing directly from our members,” Frasher said.
WHY CHOOSE A CREDIT UNION?
With credit unions, profits are distributed back to members in the form of lower costs for services, lower interest rates on loans and greater access to funds through fee-free ATM networks nationwide, according to information from a Credit Union National Association representative. Credit unions are mission driven and focused on the financial well-being of their members and the communities they serve, rather than being beholden to shareholders that some banks often appear to be.
Low interest rates on loans and higher yields on savings are two well-known benefits of joining a credit union. Credit union members enjoy lower fees on checking accounts and other financial products. Credit unions are also big on providing education and literacy tools that help members feel confident about their financial wellness.
“Ultimately, what sets credit unions apart is their philosophy: people helping people,” the representative said in a statement. “We call that the credit union difference. Our cooperative, service-driven banking model propels the work we do, putting people before profit.”
Frasher said some of the first words out of credit union members’ mouths when they encounter ECU staffers are “oh my God, I love Educators.”
“That’s generally what the members that have been with us for a while say,” Frasher said. “That’s phenomenal. I don’t know people who say they love their bank. It just generally doesn’t happen.”
Allyson Betker, a member of ECU for about 25 years and a volunteer advisor that helps run the Park High School branch, is someone who would fit into the “happy member” category.
Betker originally opened an ECU account when she was 18 because she was heading off to college and needed a safe place to put her money. She had been making money for the first time with a summer job. Her parents had set up other banking accounts with other financial institutions, but nothing she was in charge of.
“Educators attracted me because I didn’t have to have $500 in order to have a checking account,” Betker said. “It just made it affordable and doable to me. I didn’t want my money tied up in an account that I couldn’t touch because I didn’t have a lot of money.”
She said she loves everything about being an ECU member, from the organization’s available technology of the mobile app to the website, but especially appreciates the available rewards and loans.
“I’ve had a gamut of loans that go with being an adult and trying to get things in order,” Betker said. “Educators has really great rates and makes the whole process of getting the loans very simple and quick.”
ECU has remained Betker’s primary financial institution for herself, her husband and her five children. Three of her five children now have their own student accounts — just as Betker started 25 years ago.
“The fact that they (ECU) open the doorway to teaching kids responsibility with money ... it’s been a great, great learning experience for all of them to be able to be in charge of their own money.”
SNEAKERS AND TATS
Victor Frasher, Educators Credit Union director of community engagement, loves his job so much, he has a tattoo of its logo on his leg. Two colleagues got the same matching tattoo three years ago when the organization was honored in Madison for the Governor’s Financial Literacy Awards.
“We thought, what else can we do?” Frasher said. “We had kind of kicked around the idea for a while, talked about it for a while, but being in Madison, it was a great opportunity to do it.”
The logo, Educators Credit Union’s “mark of excellence,” is a representation of ECU’s core values. Each petal on the flower represents one of the values: honesty, integrity, fairness, respect and excellence. The stem of the flower is an “E” for Educators Credit Union.
ECU Chief Experience Officer Shannon Huot, who got the tattoo on her arm, also had a pair of custom Nike Air Force 1s made with Educators’ branding and color scheme.
“She loves it and that’s the way she decided to show her spirit for the credit union,” said Frasher. “Many of us have been here for years. It’s a wonderful credit union to work for. We’re very passionate about helping the communities we serve and achieving more together. That’s really what we try to do.”
©2022 The Journal Times, Racine, Wisc. Distributed by Tribune Content Agency, LLC.
