Alaska USA: member owned for member service.

200,000 members share ownership of Alaska USA Federal Credit Union, Alaska s largest not-for-profit financial cooperative. Chartered in 1948, the credit union's cooperative concept of individuals pooling their financial resources to provide services to one another was a natural for early Alaskans. The concept caught on, and today Alaska USA is the second largest financial institution in Alaska and among the top five federal credit unions in the country.

"We're in the business of service," says CEO Bill Eckhardt. "One of the universal credit union mottoes is 'Not for profit, not for charity, but for service.' Because the credit union elects its board democratically from among its members, the credit union has insights into members' priorities."

These insights lead to Alaska USA's early development of a nationwide serves to call center, the Alaska Option ATM Network, and computer-based home banking. Today, Alaska USA has 23 branches in nine Alaska cities and three in the Pacific Northwest. This year the credit union opened a new branch in Wasilia, and its first two retail branches, one inside Fred Meyer on College Road in Fairbanks, and another in the Kodiak Safeway. Still ahead in 1997 is a new branch facility in Juneau. Alaska USA has also deployed 88 proprietary ATMs. Alaska USA ATMs are surcharge-free to both members and nonmembers.

So how did Alaska USA generate $102.7 million in revenue last year, a 6.45 percent increase over the year before? "In one word, volume," says Eckhardt. "Over the years members have referred new members. And because we are a not-for-profit cooperative, all earnings, with the exception of required reserves, are returned to members by way of dividends on deposits, reduced cost for services, or the expansion of services."

The biggest challenge ahead for Alaska USA and other credit unions is the legal and political attacks by the banking industry.

"In 1996, the American Bankers Association was successful in challenging a 1982 federal regulation which allows groups who cannot support their own credit union to affiliate with an existing one," explains Eckhardt. The case is currently pending before the Supreme Court.

Alaska USA is participating in a national campaign to encourage Congress to pass legislation codifying the 1982 membership regulations. "If the banking industry wins this lawsuit and Congress does not act, all the benefits consumers have enjoyed by having access to not-for-profit financial services is jeopardized," says Eckhardt. "The outcome affects non credit union members as well. Without credit unions in the marketplace to keep bank fees and rates for consumers in check, the cost of basic financial services will skyrocket."

"We're optimistic that consumers and Congress will recognize that the self-help principle of 'people helping people' serves to improve the economic condition of the individual as well as the whole" Eckhardt added. "This is a concept well understood in Alaska. We have confidence that despite the bankers' efforts, credit unions will be around for a long time doing what they do best - providing high-quality, low-cost financial services for their member/owners."