LGFCU to Become All-Digital as It Ends SECU Partnership

Since 1983, Local Government Federal Credit Union (LGFCU) and State Employees’ Credit Union (SECU) have had a collaborative partnership in which SECU served LGFCU members through SECU’s statewide branch network. Nearly 40 years later, that partnership is coming to an end and a newer partnership will usher in LGFCU’s plan to become an all-digital credit union by March 2024.

In a recent announcement to its nearly 400,000 members, the Raleigh, N.C.-based LGFCU ($3.8 billion in assets) said it’s time to “stretch our wings” and partner with Civic Federal Credit Union, also based in Raleigh, to create a digital credit union banking experience “designed for, and requested by, LGFCU members.”

In a special FAQ section of the LGFCU website, the credit union explained the separation from SECU: “Throughout our 39-year history, SECU and LGFCU staff met periodically to evaluate our partnership, to ensure the terms of our agreement were productive and beneficial for each credit union’s membership. During recent meetings, both credit unions agreed to take a closer look at what a mutual separation could look like and how members might benefit.

“A separation will allow us to ‘stretch our wings’ when our members ask for different approaches or products. We’ll have the ability to offer products and services that are specifically designed for, and requested by, LGFCU members. Now is the perfect time to create financial solutions that address the unique needs of our local government members,” the statement read.

LGFCU helped charter Civic in 2017 as a way to expand business lending, which primarily consisted of loans for volunteer fire departments and other non-profit organizations. Like with SECU, LGFCU created a partnership with Civic as it became an online-only credit union when it opened in November 2018.

“LGFCU now has access to a banking system that will permit us to conduct and process daily transactions,” the credit union stated. “These developments mean that we can serve members on our own. We will be able to build the very products and services our members have requested.”

With no overhead costs of supporting brick and mortar buildings, the credit union stated “the savings will help LGFCU offer better rates for share accounts and loan products.”

While the credit union has targeted March 2024 for the all-digital completion, officials did acknowledge “many legal and regulatory requirements we must meet along the way to get there.”

Dwayne Naylor has taken over the president/CEO positions at both Civic and LGFCU.