Executive Q+A with Benson Porter

As BECU approaches some significant milestones, the credit union's CEO keeps his eye on a community-centered mission.
| FROM THE PRINT EDITION |
 
 

BECU, formerly the Boeing Employees Credit Union, was founded in 1935 at the height of the Great Depression. As CEO Benson Porter tells it, Boeing was still hiring at the time but workers were expected to provide their own tools. “Scraping together enough money for new or replacement tools was difficult,” Porter says, “and most banks at the time would not lend to individuals. In response, 18 Boeing employees came together to help one another. Influenced by an article in The Reader's Digest about starting a credit union, these workers realized that together they could make a difference.” Each worker put in 50 cents and BECU was born — with assets of $9. The credit union resided in a tin box carried by its first treasurer, Elmer Eggleston. Its first loan was $2.50. Today, four years into Porter’s tenure as president and CEO, BECU is the nation’s fourth-largest credit union by cash assets ($15 billion) and fourth-largest credit union by membership (956,000).

EARLY YEARS: I’m a Northwest native, born and raised in Aberdeen, Washington. My family ran a third-generation small business — office supplies and furniture. I graduated with an economics degree from Whitman College, where I played on the tennis team. 

INFLUENCES: Growing up, I worked at my dad’s small business and appreciated how he was involved in all aspects of the community — supporting other businesses and engaging in community organizations. I was attracted to the banking business for the same reasons. We help people achieve their dreams and help a community prosper. Tom Oldfield, the former top banking regulator in Washington state, gave me the opportunity to learn about the banking industry when I was a newbie intern. Deanna Oppenheimer, a Washington Mutual and Barclays banking executive, made banking “real” for consumers. 

WAMU: I spent more than a decade at Washington Mutual and I was sad to see how that story ended. I left 18 months before its demise and the broader financial collapse that affected so many. I learned a lot during my time at Washington Mutual, but I had a great career opportunity to take my first job as a CEO and to shift into the credit union world with Addison Avenue Credit Union, which later became First Tech Credit Union, in California. 

JOINING BECU: As Gary Oakland prepared for retirement after 25 years at the helm, BECU offered an amazing opportunity to return to my home state and lead one of the nation’s largest, most innovative credit unions. It was an opportunity I couldn’t pass up, both careerwise and as a chance to return to my Washington roots. 

 

ELEVATOR PITCH: Our mission is to enhance our members’ financial well-being by acting in their best interest and providing fair and affordable financial services. BECU is also guided by the credit union philosophy of “people helping people” — it’s the idea that drives everything we do as an organization. This is a concept that goes all the way back to the beginning of BECU. Today, we accomplish our mission through projects like the Visa and Auto Loan Reprice program that rewards members who have improved their credit scores with [our offers of] lower rates on loans and lines of credit. Our Early Saver Account program offers great interest rates on the first $500 in deposits to help kids see the impact of saving responsibly. Rather than building expensive branches, we focus on delivering leading online and mobile tools that make us more convenient and keep overhead low, meaning we can afford to give more back to members.

GIVING BACK: Last year, we donated more than $3.5 million through programs like the People Helping People Awards that allow our members to nominate local causes worthy of financial support. We also introduced “Closing for Good,” where we closed our doors for a day in October 2015 to provide financial literacy education to 3,000 students in 21 high schools around the region.

LESSONS LEARNED: The lesson I learn over and over again is just how much we can accomplish by staying centered on our members and community. BECU is thriving; we’re on pace to grow to over one million members in the coming months and are currently the largest community-based credit union in the nation. We’ve achieved this while returning more than $169 million to members in 2015 through better rates, lower fees and more affordable services compared to a typical national bank. Mission-driven doesn’t have to mean underdog. We’re growing because people believe in what we’re doing and want to be a part of a values-based organization that puts their interests first.

NEW GROWTH: BECU has had an operations center in Spokane for over a decade and has thousands of members in the Spokane area, so it’s a natural step for us to grow there. As we prepare to open our first [three] locations in Spokane this fall, we’re exploring how to grow there as a business and a community member. Along with opening new financial centers, we have invested a great deal over the past year to continually enhance our website and mobile app, introducing Apple Pay and Samsung Pay, and rolling out chip-and-PIN security technology. 

THE COMPETITION: There has been massive consolidation in the banking industry, which left some huge financial conglomerates. People and small businesses find BECU’s service and value an attractive alternative. There is lots of industry talk of financial tech, or “fintech” as it’s being called, as a disruption of financial services, but we see many people choosing the credit union difference.

CHALLENGES: As we grow, we have to continue to innovate, both in terms of service and how we fulfill our mission. Additionally, our team has grown from 1,045 employees at the end of 2011 to almost 1,500 today, so we have to make sure the employee culture that got us here isn’t diluted. Our people are the secret sauce. Overall, we have so many opportunities that the threat is to do too much too quickly — to get hasty or sloppy about growth, or to lose humility. We’re ready for the challenge. BECU has grown from 18 founding members in 1935 to almost one million members today. Our mission has carried us through more than 80 years of change and shows no signs of stopping.  

 

TAKE 5: GET TO KNOW BENSON PORTER

1. PROUDEST ACHIEVEMENT: "Putting myself through nigh law school [at Seattle University]."

2. FAVORITE RESTAURANT: Chase's Pancake Corral in Bellevue. "A fantastic, old-fashioned breakfast spot with great family memories."

3. FUN STUFF: Outdoor activities. "Cycling and boating top the list."

4. DREAM VACATION: "Anywhere with family. We love adventure."

5. NOW READING: The Three-Year Swim Club by Julie Checkoway. "It's the Hawaiian swimming version of The Boys in the Boat."

 

Off the Clock Profile #3: Kevin Marcus

Off the Clock Profile #3: Kevin Marcus

Cofounder and CTO, Versium Analytics
FROM THE PRINT EDITION |
 
 

EDITOR’S NOTE: This is one in a monthly series of miniprofiles featuring local executives “off the clock.”

EXECUTIVE'S NAME, TITLE AND COMPANY NAME.
Kevin Marcus, cofounder and CTO, Versium Analytics

TELL US WHAT YOUR COMPANY DOES AND WHAT ATTRACTED YOU TO THIS BUSINESS.
I started working with data in the early 1990s and discovered that I really enjoy it. Data is a lot of fun! It’s rewarding for me to find new ways to use big data and connect the dots in order to derive actionable insights from it. Ever since then, I’ve been deeply entrenched in the big data and analytics space. From launching some of the first online directory services to running AOL’s classifieds at scale, I have constantly been surrounded by data.

Versium got off the ground a few years ago, when my founding partner, Chris Matty, and I received a request from a former colleague to help with an analytics project involving social networks. This project helped us see an opportunity to fill a gap in the analytics market by creating a self-serve analytics solution that helps marketers like our former colleague, who have no formal data science training, to automatically build predictive models themselves without enlisting the help of data scientists.

So many companies are just sitting on these enormous piles of data today, but they’re often unsure how to derive actionable intelligence from it. We wanted to make data intelligence accessible to everyone, not just those with a Ph.D. in data science. When Chris and I started designing Versium’s platform, we focused on making it simple and easy-to-use for marketers, period. From day one, Versium’s mission has been about taking complex, technical information and making it accessible to a wide variety of people, where they could use it in their current environments, without complicated or specialized training.

Versium is working with more than 300 companies that include marketing agencies, technology and service providers, and educational facilities. In 2015, we saw our revenue increase by more than 100 percent year over year — and we’re projecting that to increase to 157 percent year over year for 2016.

WHAT BOOK/TV SHOW/PODCAST ARE YOU READING/WATCHING/LISTENING TO AND WHY?
I do a lot of my reading online, but my favorite book is A Short History of Nearly Everything by Bill Bryson. I love it because Bryson explains complicated areas of science in a way that’s easily understandable to the general public. I’m a big proponent of making science accessible to more people, and Bryson does this really effectively. The same holds true for people like Carl Sagan and Neil deGrasse Tyson; they’re both great.

As for TV shows, I like watching Bates Motel [on A&E] because initially it seems like a horror show but once you get into it, you realize the show is mainly about the leading character Norman’s upbringing, which is a really interesting story line.

WHAT'S YOUR FAVORITE SPOT IN SEATTLE?
The Pacific Science Center. I think it’s really important to make science more accessible, and the Pacific Science Center does a great job of making science fun, cool and interesting for everyone.

WHAT KIND OF CAR DO YOU DRIVE?
I drive a Ford Fusion Energi plug-in hybrid. The battery lasts for about 25 miles, but there’s also a gas engine, so I don’t get “range anxiety” if the battery is low.

TELL US SOMETHING PEOPLE DON'T KNOW ABOUT YOU.
I raced closed-wheel cars for a couple of years. I’ve always enjoyed cars, and the rush I got from racing was pretty exhilarating. I stick to highway driving these days, though.

WHAT ARE YOU PASSIONATE ABOUT OUTSIDE OF WORK?
I love astronomy. I saw Saturn through a telescope when I was a kid, and I’ve been fascinated by outer space ever since. I have an observatory-class telescope weighing 400 to 500 pounds that I roll in and out of my garage for stargazing.

Tell us about your Off the Clock activities. Visit seattlebusinessmag.com/clock-seattle-executive.