Michael Ferreer
Title: Vice President of Marketing and Sales, Direct Federal Credit Union
Age: 39
Industry experience: 20 years
As the vice president of marketing and sales at Needham-based Direct Federal Credit Union, Michael Ferreer has been implementing digital strategies for roughly four years. With only one branch, the credit union is one of the fastest growing in the state with over $630 million in assets, largely due to a digital philosophy that began before digital was mainstream.
Ferreer has been with the company since 2014 and is charged with growth of the credit union. He started his career while attending college at Boston University as a part-time, entry-level data analyst for East Cambridge Savings Bank. He would eventually go on to become vice president of marketing at East Cambridge Savings Bank and did a stint at Central Florida Educators’ Federal Credit Union before landing at Direct Federal. Banker & Tradesman caught up with Ferreer to discuss Direct Federal’s digital strategy and the success behind it.
Q: With one branch and over $630 million assets, what digital strategies and platforms has Direct Federal successfully used to build up its business?
A: Our entire strategy is based upon allowing members to bank with us wherever, however and whenever they want. We survey our members regularly, asking them to rate the ease in which they access our products or information on our services. We have carefully selected and partnered with leading vendors in the credit union industry to implement systems that support that strategy.
We use the same vendor for both our online and mobile banking platforms, which allows for continuity from system to system, and we diligently follow their roadmap of implementing enhancements as soon as they have been beta tested and are available. We have found that key features such as bill pay, remote deposit capture, account transfers, personal financial management tools and peer-to-peer payments have allowed all of our members to bank with us without having to come to our branch.
All our deposit account and loan applications are online and have been modified to make that application process as simple as possible. We continue to modify our application to enhance the user experience as much as possible and our members can apply for and open accounts and loans within minutes.
Q: Why did Direct Federal choose to embrace such a digital approach when most credit unions are very traditional?
A: Twenty-five years ago, our former CEO believed people would begin to value digital banking as a more convenient practice for banking transactions and that fewer people would require brick and mortar branch offices for their everyday banking needs. By transitioning to a one-branch credit union, we were able to reinvest our operational savings back into our membership by offering the lowest rates on loans and the highest rates on deposits.
Our current CEO, Joe Walsh, recognizes the importance of ensuring efficiencies across the credit union, so our fewer than 70 employees are working collaboratively and efficiently to manage the credit union as we look to end the year with more than $700 million in assets. We have embraced lean practices in our operation and work tirelessly to collect information from our members, employees, board members, vendors and community at large to find new ways to add value and eliminate waste to our customers.
Q: Direct Federal has a Smart Start program, aimed at helping Millennials build credit. Why did you decide to do this program and how is it working?
A: Our SmartStart program focuses on both the Millennial and Generation Z age groups and includes auto loans, apartment loans and credit cards for individuals with no credit history. It also includes a unique first-time homebuyer program that allows for only 10 percent down with no private mortgage insurance required.
The program was designed to start relationships with the younger population of our neighbors who may be looking for unique financial solutions for their banking needs. Establishing these relationships early with the next generation of our members keeps us focused on sustaining Direct Federal into the future while providing relevancy to our banking solutions to a larger population of our community.
Q: What is the best advice you can give other credit unions trying to take on more digital initiatives?
A: Implementation of technology and focus on digital initiatives must align with your organization’s overall strategy. Our CEO has opined that for every dollar spent in technology and every step made down the digital pathway; you must be willing to spend as much and travel as far for your people. Our member services center comprises nearly a third of our employee population and we spend a tremendous amount of time training, coaching and developing each member of our staff to be integral voices in our company’s future direction.
Ferreer’s Five Favorite Restaurants:
- Carlo’s Cucina – Brighton
- Buttercup – Natick
- Sweet Basil – Needham
- The Farmhouse – Needham
- Cook Needham
