Credit union passes milestone

Six years ago, a group of three Wharton graduate students decided there was no financial institution in the area which really catered to the needs of University students. Their solution was to found the student-run University of Pennsylvania Student Federal Credit Union. This fall, the credit union passed the $6 million mark in assets – making it by far the largest student credit union in the country, said Francisco Bayron, the credit union's vice president for planning. No other student credit union in the country has even half as much in assets, he said. Steve Feld, one of the credit union's founders –Enow an assistant dean for residence in Hill House – said the credit union's performance has exceeded all expectations. He said he still does all of his banking at the credit union. Roughly half of this year and last year's freshman classes set up accounts with the credit union, Bayron said. Bayron attributed the credit union's success to the fact that the credit union was created with students in mind. The credit union's low account minimums – $400 for checking, $5 for savings – and low fees have helped to make the credit union the financial institution of choice for University students, Bayron said. The credit union's hours – 12 to 6 during the week, 12 to 3 on Saturdays – also tend to conform better to students' schedules than regular banks' 9 to 3, he noted. Feld said he thinks regular banks tend to look at students – who typically have small accounts, make a lot of transactions and turn accounts over relatively quickly – as something of a nuisance. But for the credit union, students and alumni make up all of their business. College junior Mike Ray, the credit union's director of publicity, said part of the credit union's appeal stems from its central location in Houston Hall. "Any student who doesn't walk by Houston Hall is basically not going to class," Ray said. He added that the credit union has space reserved in the Revlon Center, when the new campus center opens in 1996. Associate Vice President for Finance Frank Claus considers himself one of the credit union's biggest fans. He said that when the credit union opened, he was a bit concerned about a business whose management turns over every year. But, Claus said, the credit union's management has proven to be "superlative." "I think they have surpassed what any of their expectations could have been," Claus said, adding that he considers the credit union "probably the best student-run thing [at the University]."

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