Celebrating over 90 years, Kemba Credit Union is reflecting on its past while planning its future
In 1934, seven employees of the Kroger Co., a then up-and-coming grocer, organized to offer their coworkers credit union services. Meeting in the company’s cafeteria, not to eat but to create something new, they founded the Kroger Employees Mutual Benefit Association, an organization meant to help Kroger employees save and borrow money. This small operation proved successful; by 1939, the assets of the organization were $110,000.
Ninety-one years later, that small organization has grown to become Kemba Credit Union. Featuring the same goals of allowing its clients to save and earn and reach financial stability, the mission has stayed the same but the scale has not. Now serving over 130,000 members at 13 branches and with total assets equaling $1.8 billion, Kemba has become one of Cincinnati’s most recognizable financial brands.
“Ninety years, you don’t really see that a lot with banks and credit unions,” says Julie Betz Eutsler, marketing manager at Kemba. “And it really shows our stability and our strength.”
This stability and strength are not products of simple age, according to President and CEO Dan Sutton, but rather decades of dedication to the community. “While the methods we use to conduct business have evolved, our purpose has remained unchanged,” Sutton says. “ Our focus is on building and maintaining strong relationships with our members, small businesses and the communities we serve.”
Helping Kemba in its mission is its distinction from banks. At the forefront of these differences, Betz Eutsler says, is credit unions’ status as nonprofits “We don’t answer to Wall Street,” she says. When the company does turn a profit, Betz Eutsler says that they are given back to its members— in the form of lower rates on car loans and home equity lines of credit or in higher lines of credit and interest on savings accounts and Certificates of Deposit (CDs). “We’re literally turning around and giving the profits back to our members,” Betz Eutsler says.
While over 90 years has brought Kemba decades of success and respect, it has also brought some struggles, particularly in reaching out to the community and expanding its customer base. “Credit unions are the best kept secret,” Betz Eutsler says. “But you don’t want it to be a secret. I mean, my own mother didn’t know the difference between a credit union and a bank. So it’s [about] getting that message out there and letting the public know that we’re here to help them.”
To overcome this challenge, Kemba sees a path forward through educating the youth community on how credit unions can help them. “I remember taking financial wellness classes in high school and I really just don’t see that much anymore,” she says. “It would be very beneficial to have financial literacy or financial wellness items for the youth. [For example, how to] buy your first house, rent your first apartment, buy a car.”
The credit union also hopes to spread its messaging with its business development team. Going out into the community, the team helps spread the word about what services Kemba Credit Union can offer by contacting local businesses and collaborating with the Cincinnati Fire Department to take part in community events.
While Kemba may be working to break down the barriers with knowledge of the advantages of credit unions, it is also working to strengthen its bonds with the community.
To do this, Betz Eutsler emphasized the many fundraisers and city events that Kemba helps sponsor and takes part in. “We have quite a relationship with the community, especially in West Chester where our operation center is located.”
Being a sponsor for events like the Shamrock Shuffle, the VOA Country Music Fest, the Rubber Duck Regatta and more helps Kemba not only spread its name but also give back to the community. For example, with the Rubber Duck Regatta, the credit union encourages its members to get involved in the fundraiser, placing a giant inflatable rubber duck on the roof of its branches and selling and decorating the ducks for the Freestore Foodbank. “It’s just a full circle moment. We’re having fun with selling the ducks and really getting into the competition, but seeing how many people were able to help, in association with the Freestore Foodbank,” Betz Eutsler says. “That’s really something we’re proud of.”
As Kemba moves into the future it hopes to continue its mission to serve its clients. However, with rapidly expanding financial technology, Kemba’s status as a small financial institution could prove difficult as it tries to keep up with big banks with more money and more access to technology.
“In today’s world, we need to remain available to our members when it is convenient for them,” Sutton says. As such, the CEO says the company has made efforts at staying competitive, including a “multimillion-dollar investment in our digital banking systems” that will allow Kemba to stay competitive.
In the coming 90-plus years, Kemba’s main mission is to “focus heavily on enhancing our products, services and delivery solutions to improve our members’ banking experience,” Sutton said. With these enhancements, Sutton hopes that Kemba can serve as an obvious alternative to larger banks. Moreover, the credit union hopes to emphasize its dedication to helping small businesses. “We plan to prioritize providing a diverse array of tools for small and midsize businesses. [In doing so] we can present businesses with a locally managed alternative to larger banks,” Sutton says. “Our goal is to ensure that everyone knows we are here to support individuals and small businesses.”
