Worcester Business Journal

www.wbjournal.com September 14, 2015 • Worcester Business Journal 15 >> B A N K I N G & F I N A N C E Agency: Davis Advertising Client: LCU W.S.# LCU26385 File Name LCU26385_WBJ Program: indd AE/AC: BB/DP Media: WBJ - Book of List Size: 4.3" x 6" Color: 4C Date: Mon 7/6/15 You're somebody with the tools to grow your business. When it comes to financing, deposit accounts and services for your growing company, Leominster Credit Union means business. You'll discover a knowledgeable team of banking professionals committed to your success. At LCU, you're somebody with the tools you need for growth, and it starts with a membership. Leominster | Clinton | Holden | North Leominster | Sterling | Worcester Visit us today. (800) 649-4646 leominstercu.com Federally insured by NCUA NMLS# 517287 28 Franklin Street • Worcester, MA 01608 508-890-9000 | 800-244-8161 www.baystatesavingsbank.com We Take Banking Personally... ...is not just a tagline at Bay State Savings Bank. We pride ourselves on treating our customers the way we would like to be treated - with courtesy and with their best interests in mind. Since 1895, Bay State Savings Bank has been helping its commercial and retail customers realize their financial goals with customized products, personalized service and local decision making. Call us today at 800-244-8161 or visit: www.baystatesavingsbank.com We're ready to assist you with all your banking needs! Celebrating 120 years of business in the Worcester Community they do most of their business in used- car loans. It doesn't always pay to try to compete with captive finance in the new car markets since dealers are often able to offer zero-percent financ- ing or cash-back deals through car- makers, they said. Taverna said DCU sees offering good deals for used car buyers as part of its mission and business plan. "One of the things that we're proud of is how we offer the same rates for new and used" vehicles, she said. "That does differentiate us in the market some." DCU also offers distinctive loan products such as "second chance" refi- nancing of existing loans, Taverna said. Meanwhile, Matthieu said another niche for IC is working with custom- ers who might otherwise end up pay- ing "ridiculous rates" on a subprime car loan. "A credit union is more willing to work with someone with a lower cred- it score," he said. That might mean having the cus- tomer put 15 or 20 percent down, but it's a way to save them a lot of money over the life of the loan. Banks sitting in back seat? While Central Massachusetts credit unions and community banks are competitors in many areas, the local banks typically don't seek out auto loan business the way the credit unions do. Alan Jenne, senior vice president and director of consumer lending at Commerce Bank in Worcester, said it's generally not worth it to the bank to try to compete with the low rates offered by captive finance shops. He said the bank makes only around half a dozen auto loans a month, mainly as a courtesy to people who like doing all their financial business in one place. "They're very dedicated Commerce Bank customers, and rate may not be as important to them as the comfort of dealing with Commerce Bank," he said. Michael Allard, a spokesman for Hudson-based Avidia Bank, said the bank doesn't seek out auto loan cus- tomers and only does around 150 of them each year. He said the difference between community banks and credit unions centers largely about their historical missions. Banks have tended to focus most of their energy on mortgages and commercial loans. "For credit unions, it's been a lot of the consumer lending, and they put a lot of resources into that," he said. Taverna said it's true that working with customers, particularly locals who might not have many other good options, is a key mission for credit unions. "Our vision is that all our members achieve our financial goals," she said. "We want to help the borrower. That's why we're here." n

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