An NJ BIZ article posted to the magazine’s Web site today points out that credit unions across the state, thanks to the changes signed into law by Gov. Chris Christie earlier this year, are ready to take advantage of their newfound ability to compete with banks and accept some of the $15 billion in deposits from municipalities, school boards, and other government bodies.
The changes, which allow New Jersey's approximately 1,500 local governmental entities—from libraries, to community colleges, to sewer authorities—to deposit funds with credit unions, are still being written by the state Department of Banking and Insurance in a process that's expected to last until the second quarter of 2012, the article states. But credit unions are already preparing.
"We're going to reach out to the local entities that we currently have relationships with. We're going to target more of a niche approach, and then look to branch out to other entities where we have branches in our markets," Andrew Jaeger, President and CEO of the Credit Union of New Jersey, told NJ BIZ.
Affinity Federal Credit Union executives told NJ BIZ they've long been hearing from municipalities seeking the opportunity to use the organization's services, but Donna LoStocco, Vice President of Member Experience at Affinity, said once the state completes the rule-making process, they will court new business.
"I'd really like to contact, certainly, the entities that have contacted us first and showed interest, and let them know we're ready to have conversations," LoStocco said. "There's different types of municipal accounts, and I need to understand which types of accounts they have in mind for the credit union, and see if that makes sense."
The article is available in its entirety here.