DCU Dominates Local Immigrant Finance Market | Word of mouth helps credit union keep diverse customer base
PHOTO/LIVIA GERSHON
Serah Muiruri, originally from Kenya, does her banking at DCU's branch on Shrewsbury Street in Worcester.
When Ghanaian immigrant Kwasi Sarpong came to Worcester years ago, a cousin immediately suggested he open an account at Digital Federal Credit Union.
He’s been a member ever since.
Sarpong, now the publisher of The Radiant, a newspaper for African immigrants, said his story is such a common one that he estimates DCU is the financial institution of choice for 80 to 90 percent of local Africans. And others say the story is similar in the Indian immigrant community.
But Sarpong argues that unless the Marlborough-based credit union makes more effort to cement its relationship with immigrants, it may be overtaken by other credit unions and banks that are willing to actively seek their business.
John LaHair, public relations manager for DCU, said the credit union is thrilled that many African and Indian immigrants are members, but it does nothing specific to solicit their business.
“Believe it or not, the best form of advertising we find driving membership in all categories is word of mouth,” he said.
DCU is an impressive force in the local financial market. In total it has more than $4 billion in assets, up from $2.7 billion in 2005.
LaHair said the credit union makes sure it has tellers who speak a number of languages, and provides translation services when a teller with the appropriate language skills isn’t available.
But he said the main reason immigrants come to DCU, and bring their friends, is simply that they have positive experiences there.
Sarpong said that’s about his impression of how DCU operates. He said the credit union is more willing than some to offer checking accounts and credit lines to people without much of a credit history. That’s crucial for immigrants.
“They just came to the country,” he said. “How can they prove their credit?”
Among Indians in Central Massachusetts, there may be an additional reason for the popularity of DCU.
Suresh Gupta, who serves on the executive committee of the India Society of Worcester, a Shrewsbury-based cultural organization, said his guess is that the credit union’s popularity with Indian immigrants goes back to its origins.
DCU was founded to serve employees of Digital Equipment Corp., a group that included many engineers from India. Although the credit union is now open to pretty much anyone, Gupta said many former Digital workers may have stuck around.
Competitive Market
Whatever the reasons, it seems clear that DCU is doing good business with immigrants. But Sarpong said he doesn’t see the credit union working to maintain its relationship with his community.
He said Western Union supports festivals that he and other African immigrants organize, Bay State Savings Bank has contributed to a free clinic they started and Worcester Credit Union advertises with The Radiant, but DCU doesn’t do anything special to contribute to the community.
“As of now, I’m disappointed,” he said. “You’ve got business, you’ve got to give back.”
Sarpong said he is happy that DCU has been willing to take risks on immigrants, but he said if it doesn’t show a specific interest in the immigrant communities those customers may end up going elsewhere.
LaHair said DCU is committed to giving back to Central Massachusetts as a whole, and tries to put its energy into reaching the broadest group possible. He said the credit union has a special focus on the needs of children and will consider contributing to any local charitable efforts that share that focus.
As for advertising, LaHair said the credit union considers requests from any media outlets that approach it.
But for the most part, he said, advertising in the general-interest media seems like the best policy.
“We service such a variety of members that mainstream media, we hope, is reaching everybody,” he said.
DCU’s policies aren’t far from the ones at Worcester Credit Union, according to President and CEO Karen Duffy. She said WCU has no formal policy for outreach to immigrants. But she said the credit union does advertise in the Radiant, as well as in Vocero, a Worcester-based Spanish language newspaper.
“We think it’s important to welcome and encourage all potential members,” she said.
But, she said, that’s a common sentiment among all credit unions.
“I do think credit unions try very hard to make an outreach effort,” she said. “We want to reach everybody. That’s what we’re all about.”
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