Faced with increasing competition in its market, Framingham Municipal Federal Credit Union announced today that it is changing its name and service area after receiving regulatory approval to solicit members from a wider range of MetroWest communities.
The credit union, which formerly only served local municipal employees, will now be called MetroWest Community Federal Credit Union.
The $86 million institution saw the local competitive landscape change in recent years, John Gallinagh, president and CEO, told Banker & Tradesman. Aside from bank competition, two other credit unions with broad community charters – Chelsea-based Metro Credit Union and Lowell-based NMTW Community Credit Union – have opened branches in Framingham within the past few years. To Framingham Municipal, this was a sign its charter was too restrictive.
"It really limited our ability to compete," Gallinagh said.
Regulatory approval was granted in December, but the credit union wanted to inform members and lay groundwork for the transition before going public with the announcement today, he said. Now, the credit union can serve anyone who lives, works, worships or attends school in the MetroWest communities of Middlesex County.
The credit union, which has two locations in Framingham and Natick, also took the opportunity to announce it has eliminated checking fees and intends to adopt mobile banking and enhanced online services. In addition, the institution recently agreed to sign on to a "shared branching" program where credit union members at participating institutions can do their banking at any other credit union branch in the country, so long as that credit union is a member of the network.
In a press release, Gallinagh called these "positive changes" that will make the credit union more convenient, as well as enhance its ability to draw more members from around the country.
"Our new charter will allow us to compete more aggressively with the banks. People everywhere are looking to credit unions as good alternatives, and now all of our neighbors throughout the MetroWest community can look to us."
