Student credit union survives recession
Published: Friday, October 4, 2013
Updated: Friday, October 4, 2013 01:10
After two years of hardship caused by the recession, things are starting to look up for the First Miami Student Credit Union (FMSCU).
President and Chief Operating Officer of FMSCU, Dan Krancevic, said he is pleased with the nonprofit student-run business as its net worth ratio reached 11.32 percent in June 2013.
Net worth ratio is the businesses amount of capital on reserve divided by its assets.
“We were really excited,” Krancevic said. “The net worth ratio is a basis of performance and typically having a seven to eight percent ratio is really good.”
In 2010 and 2011, however, the credit union, like many banks, found itself in trouble as its assets decreased, Krancevic said.
“We did not do as bad as the big banks,” Krancevic said, “And we’ve been able to rebound since then.”
The credit union began the year with assets reaching $975,000, which puts it in good shape for the future, Krancevic said.
The FMSCU started in 1988 with the goal of helping students build credit for their futures. It remains one of only three student-run credit unions in the country, according to Krancevic.
“[We] focus a lot more on reaching out to students and building credit,” Krancevic said. “By the time [students] graduate not only do they have a credit card with good APR, they have a credit score.”
Though there are other money-managing companies on campus, like PNC bank, the FMSCU is different in that it focuses on credit and building credit scores. Credit score will allow students to purchase items needed for life after college like rent for an apartment, Krancevic suggests.
Sophomore Nick Hermann, an intern at FMSCU, agreed the credit union has distinct advantages over its competitors.
“Basically, we do everything that PNC would do but we are on a student-based level,” Hermann said. “We are very capable of holding up a professional environment together.”
Along with Krancevic, Hermann said he wants to see the FMSCU’s membership increase, and see the internship program progress.
“I’ve benefited a lot from it,” Herman said. “And I know others have too.”
Herman is a marketing major and sees the FMSCU as an opportunity to gain work experience. A senior employee of FMSCU, Charles Suarez, said the work experience of running a financial institution has been invaluable.
“It helps you develop a really good work ethic,” Suarez said. “Working with people, working under management, working as management and working toward a goal as an organization.”
There is a flat $10 rate to join FMSCU and all parties involved encourage student involvement.
“Because we are not for profit, we care about the interests of the students,” Krancevic said. “We really have their interests at heart.”