What's New At Mid American

By Jim Holt, President/CEO
*Originally Published on CUInsight.com

When you welcome someone into your home, you usually greet them at the door. So why not do that when you’re welcoming them into what should be their financial home? 

When Mid American Credit Union started planning to build a new branch in northeast Wichita, which is Kansas’ largest city, we wanted to incorporate more efficient and more member-friendly ways of doing business. 

First impressions and setting the right environment make a difference in member satisfaction. Every member expects to get a certain level of service, but we wanted to make their experience at this new branch world class. 

In our research, we came across a new type of design — one in which members were greeted at the door and then guided to a “teller pod” or office to conduct their transactions as the member’s needs dictate. Other financial institutions using this model were reporting that it improves member relationships and member satisfaction. We were also impressed that branches with this model were reporting higher performances in deposit levels, loan productions, sales per day and more referrals. We wanted similar success. 

To provide continuity, the outside of our newest facility looks very similar to our main branch in west Wichita. But inside, the look and feel of the place is very different. 

When the doors opened to our new facility in January 2013, we became the first financial institution in the region in which a staff member greets you at the door and will generally be alongside you the rest of your visit, whether it’s for conducting cash transactions or getting an auto loan. 

Two dialogue stations, with teller stations on either side, are the focal point of the credit union’s lobby. It’s there where a member stands right alongside the employee, making a deposit, withdrawing cash or doing other such business. By removing the physical separation of a traditional teller line between an employee and a member, we’ve removed a barrier to the member’s impression of our service. Members feel invited into a partnership effort for handling their financial needs.

 Members still have the option to conduct business of a more private nature or requiring more details, such as signing loan paperwork, in one of the branch’s offices.

 During a recent tour I gave to other credit union executives, I was asked about the safety and security of such a design. Law enforcement officials assure us that if you create a more direct contact experience — from greeting someone and looking them in the eye at the door to being alongside them —you’ve countered a criminal’s intent to remain inconspicuous and non-descriptive. Rather than using cash drawers at the dialogue stations, the staff access money through an electronic cash dispenser unit.

 We also incorporated another nontraditional feature in this new facility: an independently owned coffee shop offering free Wi-Fi. Members can linger a little longer during their visit, by enjoying a beverage or catching up on emails and working on their laptops or tablets.

 In another nontraditional venture, we partnered with two other Wichita credit unions — Cessna Employees and Catholic Family Federal credit unions — to bring this branch to fruition.

If you’re trying to stay on target for healthy spending this year, here are some tips.

• Know your finances. The first step to saving money is knowing how you spend money. Review last year’s finances and pay attention to expenses that might increase this year. If you don’t have a budget, start tracking your finances now for a month and look for ways to save.

• Pay yourself. Most American’s don’t have an emergency reserve of at least three months worth of expenses saved. Don’t be one of them. Give up expensive habits and put the savings toward paying yourself. Set up regular, automatic transfers from your checking to your savings account.

• Plan meals. The average American family of four tosses out more than $2,000 in food a year. Plan weekly meals, buy in bulk, freeze leftovers, avoid impulse buys or marketing gimmicks, like buy 1 get 1 free, to reduce costs and food waste.

• Refinance your home. With mortgage rates at still low rates, it is a good time to think about lowering your payments through refinancing, if you’ll stay in your home for awhile.

• Stay healthy. Buy generic drugs when possible. Set up tax-favored accounts such as a flexible spending account through your employer or a health savings account with Mid American to help pay for health care costs. Don’t miss regular screenings and end up paying more in health care costs when a condition has turned more critical.

• Get ready for the holidays. Did last year’s holidays strain your budget? Start contributing $20 a week to a holiday savings fund and you’ll have several hundred dollars saved by the time the 2013 holidays come around.

Studies show that an ideal work-life balance leads to happier, more productive employees. Yet many Americans end up not using vacation days, in part because of concerns about how vacations often mean spending money. 

With careful planning, you can enjoy your vacation days with less money stress.

• Set up a dedicated vacation fund with automatic transfers. One of the perks of Mid American’s vacation savings accounts is that you can make three free withdrawals a month, so you can plan a vacation for any time of the year.

• Make it a family affair. Involve the entire family in other savings strategies. Collect loose change in a vacation savings jar – Mid American has free coin counters at its main and northeast Wichita branches and Ark City branch. Cull your closets and have a garage sale. Eat out less and pack a lunch for work.

• Do your research. You can find various deals through sites like Groupon Getaways or LivingSocial Escapes. But read the fine print to check for blackout dates and then compare with other travel sites. Sometimes you can find special deals directly on hotel sites.

• Consider “staycations.” Vacations don’t have to involve long-distance travel or any travel at all. Explore your surroundings with a day trip. Often it’s just the time away from work and the making of memories

The U.S. government is retiring paper checks for those who receive Social Security or other government benefits.

 As of March 1, 2013, anyone receiving federal benefits will need to have those funds deposited directly into an account. The retirement of paper government checks has been in the works for the past few years as a way to reduce federal spending. The U.S. Treasury Department says it will save taxpayers $1 billion over the next 10 years to move to direct deposit.

 There are still more than 5 million Americans who have not converted their government payments to direct deposit, according to federal officials. Those mailed checks represent an additional $4.6 million in monthly costs since each mailed check costs 92 cents more than a direct deposit transfer, Treasury officials have said.

 If you or someone you know hasn’t taken the step to have these payments directly deposited into an account, go to www.GoDirect.org, call the helpline at 800.333.1795, or contact one of Mid American’s financial service representatives at 316.722.3921, ext. 202 for help in setting up a direct deposit into your account.

Merchants in 40 states now have the option to pass on the swiping surcharge for certain VISA and MasterCard credit card point-of-sale transactions to consumers.

 The surcharges won’t be allowed on debit and prepaid card transactions and in 10 states, including Kansas, that prohibit the surcharges. The other states where the surcharge won’t be allowed are California, Colorado, Connecticut, Florida, Main, Massachusetts, New York, Oklahoma and Texas.

According to financial experts, any credit card surcharges will be limited to the amount of money the merchant pays to the credit card company. So if a merchant is charged 50 cents per swipe by the credit card company, it can only pass on a 50 cent charge to the consumer. Retailers who add the surcharge must post a fee disclosure to the consumer at the point of entry, point of sale and on the receipt, according to experts.

The option became effective Jan. 27, 2013, and is the result of a lawsuit settlement between merchants and VISA and MasterCard.

In 2013, individuals will be able to save a bit more through an individual retirement account, according to new IRS limits.

Since 2008, the IRS had capped contributions to traditional and Roth IRAs collectively at $5,000, but for 2013, the limit has increased slightly to $5,500.

The IRS has also updated the income limits for being eligible to deduct contributions to a traditional IRA and for being eligible to contribute to a Roth IRA. To find out more, go to www.irs.gov.

The IRS has not changed the catch-up contribution limit of an additional $1,000 for persons older than 50.

Mid American offers both traditional and Roth IRAs, as well as a Simplified Employee Pension IRA. The SEP IRA is a low-cost option, with no start-up or administrative costs, to a traditional pension plan and contributions are tax deductible. Employers and self-employed individuals can set up this type of IRA.

If you are interested in an IRA account, contact a financial services representative, 316-722-3921, ext. 202. For legal and tax information, please consult a legal or professional tax adviser.