Invest: sat down with Kevin Miller, President and CEO of Addition Financial Credit Union, to discuss how the credit union is uniquely placed to leverage Central Florida’s growth, with an emphasis on partnerships, innovation, and community engagement. “It’s also about the environment, which is very favorable here. People are working together in partnership across industries here,” he said.
What has Addition Financial’s impact been on the Orlando economy?
We’re a locally member-owned credit union, and over the past year, we have formed some significant partnerships. We already partner with a number of organizations across Central Florida, including school districts and higher education institutions, and we are expanding that scope. We’ve also worked our way into sectors we haven’t traditionally been involved with, including healthcare and manufacturing. We’ve always had a significant charitable focus, but we have also enhanced and formalized our foundation to underline our charitable giving. Our focus is on locally-based charities working in Central Florida.
How is Addition implementing technological innovation to enhance services?
We’ve found a new partner to launch our online banking platform in July 2024. We’re very excited about how testing is going and rolling it out in the summer. Beyond our new online banking system, we have other applications we’ve automated and built out. We have an enhanced underwriting system rolled out while upgrading our loan operating systems. Our online banking has a very strong business presence, so we are investing a lot in technology to follow suit. This also goes for the back of the house, as we are implementing a new accounting and human resource system that will go online over the next year.
For years, we’ve already had versions of AI in place, supporting us in underwriting and making other administrative decisions. We are seeing more financial-specific AI options being developed beyond underwriting. There is an opportunity for people to automate work that takes them away from our members and streamline that back-of-the-house work to better engage with our constituents.
What is your assessment of the banking sector in the region?
Because of the fast growth happening here, quite a lot of people are moving to the region, so we’re attracting a lot of new banks and credit unions as well. Growth is definitely a factor, but it’s also about the environment, which is very favorable here. People are working together in partnership across industries here, so there is no reason to expect this growth not to continue.
What gives Addition Financial a competitive edge?
We’ve been based in Central Florida for almost 90 years and know the area well. We’ve built strong partnerships and alliances over the years. We’ve also invested more in technology, and that combination is what helps us as differentiators. It also helps that we are a nonprofit, member-owned organization, and in that way, our members are our team members as well. The focus is on them, not some third party.
How have member demands shifted recently?
Our members want to access us when it’s most convenient for them, whether in person or online. They also want us to make it easier and more convenient based on their required services. They also want the opportunity to have in-depth conversations when it suits their needs. Some transactions require a quick and easy process. But other times, they want to sit down and carefully consider advice that looks at the next five or ten years. We are proficient in addressing their needs either way.
On the consumer side, we offer many credit cards and auto loans, along with real estate and mortgage products. On the business side, we offer many business real estate products that are doing well for businesses seeking to expand their physical location or find new space.
How does Addition engage with the community?
It’s a part of who we are. We want everything from the team members we hire to work in the community to offering bilingual services, and overall support of different community interests. We put that into action by asking team members to identify different local charitable organizations to support causes important to them, which gives us great awareness of these efforts. We are proud of our members engaging with the causes that matter most to them and always encourage that.
It all starts with our core values. We strive to learn, improve, and teach with absolute integrity. With everything we do, we focus on those groups, whether it’s our team members or community members. We put that in action through our community engagement department, which teaches financial literacy and generally enhances our partnerships with public and private organizations. We also have our Addition Financial Foundation, whose entire goal is to make it as easy as possible to put charitable dollars back into the community. By raising funds and enhancing partnerships, we create a strong network that can learn from each other.
What is your assessment of the regulatory environment in Florida?
We’re regulated by the state and federal government. The state of Florida has recently become a bit more friendly to the industry. It is working through competing demands where the state encourages growth while federal regulators have their own. At the federal level, there is an attempt to get more involved in the decisions of what banks and credit unions can and can’t offer instead of the state. The state allows our customers to drive what products and services they’re most interested in, so we’re trying to balance that. The state has also been working more on the general safety and soundness of institutions than the federal government, which is focused on decisions about what we can and can’t offer.
How is Addition increasing financial literacy in the region?
We try to best meet the needs of our community. Whether, for example, it’s partnering with the Hispanic Chamber of Commerce or our colleges and universities. This past year, we rolled out a new partnership with Orange County Public Schools, Junior Achievement, and the Early Learning Coalition of Orange County to teach financial literacy to Pre-K students. Through that broad based partnership, we’ve been able to roll out the program to 15 classrooms in 8 different schools with plans to expand in more. We’ve also partnered with Seminole County Public Schools. Stenstrom Elementary School in Oviedo runs a “MicrOviedo” program where students comprise roles like mayor and judge and they get to learn how to manage transactions in a micro Addition Financial branch and develop customer service skills. We’ve also partnered with local law firms about wills and planning for major events like retirement.
What is your outlook over the next two to three years?
It’ll be a very competitive landscape with so many people coming to Florida in general. Orlando sits in the middle of that growth, and we’d be wise to take advantage of that. We’re excited about our opportunity to expand in the region, and we’re doubling down on our investments in the credit union over the next two years.
