Banking & Finance March 30, 2018 6:00:35 am

New credit union cares about 1 sector

By Emily Clingman

BOULDER — People are not excited about corporate banking, according to Blake Jones, co-founder of Namaste Solar in Boulder. And, credit unions are losing touch with their cooperative roots. While these observations may vary in accuracy depending on who you talk to, Jones said there is a growing need for non-traditional banking and lending opportunities.

Jones is a volunteer board member for Clean Energy Credit Union, federally chartered last year in September. In February, it signed up its first members — people who care about clean energy and energy efficiency.

“Our mission is not to maximize profits for stockholders,” Jones said, noting the credit union is a non-profit. “What makes our credit union unique is our exclusive focus on energy lending. We do not plan on offering any traditional or normal loans, like for a mortgage, a car — unless it’s a net zero home or an electric car. Everything we provide loans for needs to have a clean energy theme, energy efficiency improvements, solar panels on your roof, home remodels that are highly energy efficient.”

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Jones is part of the Clean Energy Credit Union founding team, whose collective vision is a world where everyone can participate in the clean energy movement.

“We know a lot of people who want to participate but they don’t know how,” he said. “The two ways we provide these opportunities is through loans with the best market terms possible. The other is through private investment opportunities.”

Most credit unions aren’t paying any attention to this market, according to Jones. The few existing are venture-capital-backed entities, with loan rates that are too high.

“There is a huge demand from impact investors or socially responsible people,” Jones said. “Here’s a federally insured way that you can put your money behind the clean movement.”

Jones, a self-proclaimed energy geek, used to work in the oil and gas industry. Then about 17 years ago, he took a job in renewable energy. Through his own experience, and the experience of other enthusiasts and colleagues he’s worked with over the years, he learned about the availability — or the lack thereof — of specific financing like this. For instance, when he tried for a loan to install energy-efficient insulation in his 1950s home, financing wasn’t readily available. Jones and his wife had also been looking for places to invest their money aligned with their values.

“It has been much harder than you’d think to find those places,” he said. “Clean Energy CU is a product (and service) good for families, good for society and good for the environment. These things need to be easier.”

Clean Energy Credit Union is open for business — currently offering savings accounts and clean energy CDs, with more products and services to be added over time. Anyone can join as a member, with one stipulation — said member needs to also be a member of the American Solar Energy Society. There is a discount for joining both organizations at once. Family members may also join the credit union.

There is no brick and mortar branch to walk into. Clean Energy operates its entire business online (www.cleanenergycu.org).

“One of the benefits Clean Energy has, is that we get to start with a clean slate. No history, no baggage, no storefront overhead,” Jones said. “Completely online is going to be the model of the 21st century financial institution. I predict 30 to 40 years from now, most credit unions won’t have branches.”

Jones said online banking is an opportunity to “get with the times.” People, especially Millennials and Generation Xers with busy families, are wanting more convenience and better mobile banking apps. Also, overhead is “huge” with physical branches, he said.

“Look at retail trends; it’s the same thing,” he said. “Brick and mortar is very expensive. All of those overhead savings we have will be passed on to members in the way of better loan rates.”

As far as connecting with customers, “There are a lot more tools available now to offer great customer service,” Jones said.

As Clean Energy develops and grows successful, the goal is not to have dominant market share in clean energy banking.

“Our goal is not to be the only ones doing this,” Jones said. “We would consider it a success if we can get as many other credit unions as possible to get into clean energy lending.”

Better loan rates mean savings to customers, who also experience more savings from using solar panels or energy efficient cars, which means they are better able to service the loan, Jones said, noting it’s a win-win for all.

The credit union is holding a membership drive kickoff event, a launch party open to the public: Thursday, April 19, 5 p.m. at Upslope Brewing Co., 1898 South Flatiron Court in Boulder.

There will be laptops and Clean Energy representatives around the room for attendees to sign up if they wish.

Building a better world

In other banking news, New Resource Bank has been acquired by Amalgamated Bank. The New York-based bank has nearly a century of experience in serving the needs of working people. Its mission is to be the financial institution for progressive people and organizations, those who are working and living to make the world more just, compassionate and sustainable, according to Susan Graf, Colorado regional manager.

“Through our merger, Amalgamated will gain the expertise of our sustainability lending and leadership, and we will gain the scale of a bank already supporting nationwide consumer and commercial products and lending services,” Graf said in a memo to New Resource customers, which she shared with BizWest. “We share a vision to scale our model of impact banking to build a better world. Working together, we will be able to achieve our vision at a faster pace than working alone.”

Graf said she knows this news comes as a surprise to many of the bank’s long-time clients and friends. She explained that New Resource was not designed with a build, scale and sell model. Over the years, there have been candid merger inquires, but none were in alignment with the bank’s vision and mission. However, Graf said, “joining forces with Amalgamated aligned so robustly, and their products and services matched perfectly with what our community has been seeking.”

Mark Finser, current chairman of the board and a founding board member of New Resource, will join Amalgamated’s board. The rest of the existing New Resource board of directors will become a national strategic advisory committee to execute both banks’ shared vision.

“Our future looks bright,” Graf said. “We will continue to be the sustainable, forward-thinking bank with strong values that (our customers) have always loved.”