New Name, Footprint For Framingham CU
In the last few years, John Gallinagh, president of Framingham Municipal Credit Union, has noticed an increasingly competitive environment for credit unions in MetroWest.
For example, Metropolitan Credit Union of Chelsea and Northern Massachusetts Telephone Workers Credit Union (NMTW) of Lowell, have each opened up branches in Framingham in the last few years.
Gallinagh, who joined the Framingham credit union in July 2009 after working as a consultant, wanted to take the organization to the next level.
But with increased competition in the credit union's traditional market, he realized one of the best ways to grow the organization would be to expand its coverage area.
In December, the credit union received approval for a community charter from the National Credit Union Association to change its name to MetroWest Community Credit Union and to more than double the number of communities it serves.
Strategic Growth
Framingham Municipal Credit Union started in the 1940s to serve the municipal employees in Framingham. Over the past few decades it has grown to serve municipal workers and their extended families in 13 MetroWest communities.
But now, MetroWest Community Credit Union will be open to anyone who lives, works, worships or has an affiliation within 30 communities in MetroWest along the Interstate 495 belt.
Along with the new name and increasing the coverage area from 13 to 30 communities, Gallinagh is also hoping to entice new members with more competitive service.
The credit union has eliminated all checking account fees, plus any charges related to Internet banking.
In the coming months, Gallinagh is hoping new technology will be in place that will allow for mobile banking on smartphones and will allow new members to sign up online.
"Given the product mix we have and our competitive rates, we believe we're able to offer the consumer a better package," Gallinagh said.
The credit union is hoping for at least 5 percent membership growth in each of the next two years. The credit union currently has 9,000 members, more than $85 million in assets and two branches.
While growth is a priority, MetroWest Community Credit Union doesn't have any immediate branch plans.
The credit union has joined Co-op Financial Services, which is a network of credit union branches. As part of the network, MetroWest Community Credit Union members can visit any of the in-network branches. There are 57 Co-op branches in Massachusetts alone.
Dan Egan, president of the Marlborough-based Massachusetts Credit Union League, said he's not surprised to see Framingham Municipal change its name and expand its focus.
"I think it's indicative of the growing popularity of credit unions," he said. "Ever since we ran into the significant financial difficulties brought on by the subprime mortgage crisis, people have been looking for home-grown, home-run institutions that operate locally."
The Co-op branches seem to be catching on as well, Egan said.
"It's literally a nationwide network, if you're in Florida, you will have a branch to go to," he said. "It's all about service and convenience."
Communities MetroWest Community Credit Union now serves include: Marlborough, Newton, Waltham, or Watertown or the towns of Acton, Arlington, Ashland, Ayer, Bedford, Belmont, Boxborough, Carlisle, Chelmsford, Concord, Framingham, Holliston, Hopkinton, Hudson, Lexington, Lincoln, Littleton, Maynard, Natick, Sherborn, Shirley, Stow, Sudbury, Wayland, Westford and Weston.
Correction: An earlier version of this story had the wrong name of the network to which MetroWest Community Credit Union belongs. The network is called Co-op Financial Services. It also misspelled the last name of Dan Egan, president of the Massachusetts Credit Union League.
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