Deana Hennessey, President & CEO, PriorityONE Credit Union of Florida

Deana Hennessey, president and CEO of PriorityONE Credit Union of Florida, spoke with Invest: about some of the positive changes happening at the credit union, the challenges and opportunities of doing business in South Florida, and how it is using technology to enhance its services.

What are the latest positive developments for PriorityONE Credit Union?

We are currently preparing for a significant data processing core conversion, which will be a major undertaking for our team. This transition is expected to unlock numerous opportunities, enhancing our ability to deliver more efficient and innovative services to our members. In addition, we are implementing changes with several key vendors, which will further enable us to introduce programs that benefit both our members and the communities we serve.

What is your overview of the banking and financial services industry in Fort Lauderdale and South Florida?

The financial services landscape in South Florida is dynamic, with many smaller institutions facing challenges around regulatory compliance. These institutions often have a more personalized approach compared to their larger counterparts, but they need the right support to remain competitive and continue to serve their communities effectively. The current regulatory environment is a topic of debate, and while the notion that for every new regulation, 10 should be repealed may seem ambitious, it underscores a legitimate concern that excessive regulations can impede the growth of smaller financial institutions.

From a banking perspective, what makes Fort Lauderdale and South Florida an ideal location for business expansions and relocations?

South Florida, particularly the tri-county area of Miami-Dade, Broward, and Palm Beach, is an attractive destination for business expansion due to its strong population growth and economic vitality. We are seeing an influx of credit unions from northern states establishing new branches here to tap into the expanding market. Despite this growth, we believe there is still significant untapped potential in the region, particularly in terms of membership expansion, making it an ideal location for new business opportunities.

Which services do you see as the main drivers of growth for PriorityONE Credit Union?

Our Home Equity Line of Credit (HELOC) remains the primary driver of growth for the credit union. This adjustable-rate second mortgage product meets the needs of homeowners who want to leverage their home equity for improvements or debt consolidation, without refinancing their low-rate first mortgage. This service consistently generates strong demand, with the majority of our member referrals related to HELOCs, reflecting the ongoing value we provide in this area.

In what ways is the credit union leveraging technology and innovation to improve customer experience and make operations more efficient?

We are actively enhancing our service offerings through technology. For example, we are integrating new texting capabilities with a vendor partnership that will allow us to engage with members more promptly and efficiently than email alone. Additionally, in September 2023, we launched a new unsecured loan program in collaboration with Upstart, leveraging AI technology to expedite underwriting and improve loan approval processes. These advancements will not only streamline operations but also increase membership and strengthen our lending portfolio across key areas such as auto loans, mortgages, and home equity products.

Have you noticed a shift in customer expectations in recent years? How does PriorityOne Credit Union adapt to these changing demands?

Customer expectations have indeed evolved, with members increasingly seeking convenience and quick responses. In response, we conduct an annual membership survey to gain direct feedback, which informs the development of new services and products. One key initiative is the implementation of our new texting service, which will enhance our ability to communicate with members for loan closings, appointment scheduling, and customer inquiries. Additionally, this platform will support targeted marketing efforts, ensuring members are aware of relevant services that can benefit them.

What are the primary challenges for the banking and financial services at the moment, and how is PriorityONE Credit Union addressing these challenges?

One of the key challenges currently facing the banking and financial services industry is managing liquidity. Many credit unions have had to rely on borrowing to maintain sufficient liquidity levels, which can create operational challenges. At PriorityONE, we remain vigilant in ensuring our liquidity remains balanced, allowing us to meet the needs of our members without disruption. We prioritize maintaining enough reserves to support loan demand while ensuring we never have to turn a member away.

Additionally, we are pleased to report that our payment delinquency levels remain exceptionally low, reflecting our proactive approach to supporting members in need. We work closely with individuals who may face financial hardships, understanding that difficult circumstances can affect anyone. Our commitment is to remain flexible and responsive, providing the necessary support to help members through challenging times.

Another significant concern impacting both our members and the broader economy is the rising cost of insurance, rents, and condo maintenance. These escalating costs are contributing to reduced housing affordability, which presents a challenge for many of our members. We are closely monitoring these factors and continuously adapting our offerings to ensure we can provide affordable solutions that meet the evolving needs of our membership. 

Looking forward to the next two or three years, what are the main goals and priorities at PriorityOne Credit Union?

In the coming years, our primary focus will be the successful completion of our core conversion, scheduled for early 2026. In 2025, we will concentrate on preparing for this transition to ensure it is implemented smoothly and efficiently. Once the conversion is complete, we plan to expand our branch network. Although the new branch will have a smaller footprint, it will feature drive-through capabilities and offer full-service banking to better meet the needs of our members. This expansion is part of our broader strategy to enhance our presence in underserved areas across Broward, Miami-Dade, and Palm Beach counties, while maintaining a high level of personalized, efficient service for all members.