No commissions or incentives at State Employees’ Credit Union – it’s just members’ best interests!
RALEIGH, NC (September 20, 2016) — Many financial service providers utilize incentive based payment systems and commission structures to pay their employees. Compensation is frequently tied to exceeding established quotas for the number of accounts opened. The pressure on employees to open accounts is significant. Recent news reports have publicized the unethical decision making of thousands of financial services employees. The stories highlight an example of how an incentive compensation system driven by quotas for opening new accounts can cloud the ethics of staff.
The stories bring a reminder of the principles and values behind the member-service orientation of State Employees’ Credit Union (SECU). The Credit Union’s unique approach to business is built on the not-for-profit financial cooperative model, where members share the benefits of SECU ownership. Credit Union employees are paid a salary only, there are no incentive or commission-based compensation programs. This structure intentionally removes any temptation which might distract the focus of providing members the most appropriate products, allowing staff to fully focus on helping members improve their financial lives.
Members have access to a wide range of financial services including lending, deposit, advisory, tax preparation, insurance, investments and estate planning services. The Credit Union makes home, vehicle, personal and credit card loans and offers fair and reasonable rates of interest on a variety of deposit accounts. The Credit Union has over 2,100 licensed insurance representatives and nearly 3,000 tax preparers on staff. Through Credit Union Investment Services more than 450 investment representatives are available to assist members with investment and retirement strategies.
“State Employees’ Credit Union is the trusted financial services provider for more than 2 million members,” says SECU President Mike Lord. “Our ‘Do the Right Thing’ mission continues to guide our employees to serve our members. We purposely operate with no commissions or incentive pay so that employees focus on the best choices for members. The only incentive our employees have is to help members by providing the best product or service that meets their needs and the needs of their family.”
About SECU
A not-for-profit financial cooperative owned by its members, SECU has been providing employees of the state of North Carolina and their families with consumer financial services for nearly 82 years. The Credit Union also offers a diversified line of financial advisory services including retirement and education planning, tax preparation, insurance, trust and estate planning services, and investments through its partners and affiliated entities. SECU serves over 2.4 million members through 266 branch offices, nearly 1,100 ATMs, 24/7 Member Services via phone and a website, www.ncsecu.org.
