Phase 1: Laying the Foundation

Implement specific policies and procedures. Drake said he had to spend time studying Washington State-specific regulations around commercial services, and educating the credit union's leadership on the policies and procedures.
Create a technology infrastructure that will support your commercial services. HAPO Community identified which vendors and software providers it wanted to work with, and ended up completing a core conversion because its existing core could only handle retail accounts. It also added an analytical software system for analyzing credit, and created a system of virtual files for staff, ensuring all loan files were well-organized and consistent with one another.
Hire a team and develop a unique commercial services brand identity. HAPO Commercial Services created its own logo and a separate office area within the credit union's headquarters. It also hasn't been shy about advertising – Drake explained that a "Vegas-style" sign promoting the department's services is affixed to the side of the headquarters building and can be easily seen by people driving by.

Phase 2: Training, Testing and Launching

Spend time fine-tuning the new culture. Drake noted educating leaders from across the credit union about commercial services and what they needed to do in their roles to ensure its success – and keeping them on track – was a challenge. He compared training leadership to handing them scripts for a specific movie. "I realized some of the people I had given scripts to had shredded the script," he said, adding that every area of the credit union was touched by the new department, even facilities.
Build partnerships. HAPO Community has teamed up with CU Business Group, the Northwest Credit Union Association, TMC Financing and the National Association of Credit Management for assistance.
Emphasize service in the beginning. Drake said HAPO Commercial Services gave $100 gift cards to businesses that were the first to open accounts at the credit union and put up with the new department's growing pains.

Phase 3: Production

Consider additional hires. In this phase, HAPO Commercial Services hired a relationship manager and a commercial loan documentation specialist.
Think about future products and services. HAPO Commercial Services currently offers equipment, commercial real estate, aircraft and unsecured loans; working capital lines of credit; business Visas; traditional and premier business checking accounts; a premier money market account and remote deposit capture. It's now looking at adding Treasury management services, which will include a premier analyzed checking account; desktop RDC; sweep services; positive pay and online banking.
Work to retain members and stay relevant. "One key to making it work is having branches and relationship managers work together," Drake noted.

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CU Shares Blueprint for Commercial Services Success: Onsite at CUBG