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.
August 25, 2016By John Levesque
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 Porters tenure as president and CEO, BECU is the nations fourth-largest credit union by cash assets ($15 billion) and fourth-largest credit union by membership (956,000).
EARLY YEARS: Im 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 dads 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 nations largest, most innovative credit unions. It was an opportunity I couldnt 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 its 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; were 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. Weve 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 doesnt have to mean underdog. Were growing because people believe in what were 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 its a natural step for us to grow there. As we prepare to open our first [three] locations in Spokane this fall, were 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 BECUs service and value an attractive alternative. There is lots of industry talk of financial tech, or fintech as its 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 isnt 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. Were 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.”