To facilitate growth, this federal credit union is putting branches in places no one else wanted to. Amanda Barber talks to Michael Castellana.

In the early ’90s, a change in federal law altered the way SEFCU approached its mission of servicing its members. The change enabled credit unions to service more than state employees and their families. Michael Castellana, president and CEO, took that opportunity to reshape the mission of the NY-based federal credit union.

“We are now allowed to serve geographic areas that are economically disadvantaged,” said Castellana. “We’ve placed branches in communities in the state that haven’t seen any new financial institutions in decades. We took a risk no one else was willing to take.”

As a credit union, Castellana said he and SEFCU’s nearly 500 employees believe their mission is to provide service to the mainstream population as well as to those who are most in need of financial services. The credit union currently has 21 branches throughout the Capital region, Syracuse, and Binghamton, and is working on expanding in Buffalo. The move to put branches in these areas is not to simply make money.

Michael Castellana

“We’re not measuring our impact in these communities by actual profit and loss,” said Castellana. “We are looking to do enough business to at least pay for the branch while we measure our success in the number of lives we touch.”

SEFCU has given millions of dollars in loans to members in these new areas, both personal and commercial. In addition to supporting these communities financially, Castellana and his staff provide educational seminars on topics including how to balance a checkbook and interpret credit scores. He said the motive behind these offerings is purely from SEFCU’s mission to invest in its communities.

“The best way to invest in our communities is to invest in the people,” he said. “We have a six-point corporate culture that is the embodiment of the organization, and the most important component of that culture is member service.”

Cultural elements
While the focus on member service is not new, the six-point corporate culture is a recent addition to the SEFCU story. Ten years ago, Castellana decided to develop the credit union’s culture in a way that each employee would understand. Focus on member service and teamwork are the first two, followed by embracing change and continuous improvements—two additional points of emphasis within the organization.

Two years ago, when SEFCU changed its computer programs, all employees went through significant training sessions to learn how to interface with the new software. Castellana said emphasizing change and continuous improvement means his employees will look at the organization’s vision for the future as their own.

“We want to innovate as much as we possibly can,” he said. “We like to get our staff accustomed to change so that when it happens they embrace it rather than fear it.”

The fifth and sixth elements of the corporate culture are having fun and embracing physical and mental wellness. Castellana recognizes that his employees will spend a significant portion of their lives at SEFCU. As a result, the administration built a state-of-the-art fitness center with saunas, steam baths, running tracks, and health and wellness programs. The facility is free to each employee and one significant other. The addition of these services not only enhanced the quality of life for current employees but it also gives future employees an understanding of the company culture.

“As you tour the headquarters and show potential employees some of the amenities open to them, it’s a sign of how important they are to the organization and to our culture,” said Castellana. “We try to find things that appeal to as many of our staff members as we possibly can.”

The right fit
Although attracting potential employees is not a problem, Castellana said the difficulty is finding people who embody the SEFCU fit—people who are willing to serve, have a sense of humor, have the ability to be flexible to change, and can enjoy what they’re doing. Rather than looking for people with previous banking experience, he looks for the right personality.

“We don’t look for technical attributes because we believe we can train for those,” he said. “But you can’t train for attitude. We know when we are interviewing someone whether or not they fit.”

Many high school students, college students, and college graduates in the communities look at SEFCU as a place to initiate a career. The credit union works closely with universities and high schools in and around Albany for recruitment. “We have an extensive recruiting and screening process before we offer anyone a job,” said Castellana. “The bigger issue is not attracting the potential candidate; it’s having them actually make it through our screening and initial training process.”

The same sense of fluidity is present in the volunteer board of directors that governs SEFCU. Some members have been with the organization for decades, watching it grow from $10 million in assets to its present $1.4 billion. Castellana said having a supportive staff is as important as having a strong board to mobilize future growth.

“Our board has evolved in their governance style and their wisdom as the organization has grown,” he said. “We’re looking to make a tactical impact on the quality of life in our communities, and our board of directors is one of the keys to our success.”