Marty Pell, President & CEO, Wellby Financial
Wellby Financial President and CEO Marty Pell spoke with Invest: about the methods by which the credit union has achieved excellent financial health and how it is prioritizing technological innovation as well as investment in workforce development to ensure its continued success.
What strategies have been pivotal in setting Wellby Financial apart, and how do you plan to build on your current momentum?
Our mission is to help people prosper – everyone is on a financial journey, and we want to be a positive force that helps them progress. We focus on finding ways to add value for our members by offering great products that reward savings. One example of this can be found through our high-yield checking account, which offers members 4.50% APY and a way to build financial resilience. Our efforts are being recognized nationally by the press. As a credit union, we pay out significantly higher dividends than our national peer group while charging fewer fees. This value proposition is noticed and appreciated by the marketplace. This is centered around our philosophy of helping people prosper and progress on their financial journey. Wellby is also active in home lending, and we were recognized last year as having the third-highest mortgage growth among credit unions in the country. Our first-time homebuyer program has been particularly successful, and we have a long-term goal of helping 10,000 families achieve homeownership. To do so, we continue to evolve our mortgage lending offerings to ensure we have home lending solutions for every member.
Could you provide an overview of the banking and financial services industry in Houston?
Houston’s economic diversity positions it as a resilient and high-growth market. The Federal Reserve noted that Houston and Fort Worth have had the highest population growth in the state among large MSAs, and there is a lot to be excited about in terms of the local economy; however, the financial services industry continues to navigate challenges due to a flat or inverted yield curve, which makes traditional banking models more difficult. This environment puts profitability under pressure.
Changes in the regulatory landscape under the new administration appear favorable for the industry through potential deregulation. There has been some asset quality deterioration in the industry, but I believe this creates a scenario where consolidation could be attractive. Wellby Financial positions itself as a strong potential consolidator due to excellent financial health. We are optimistic about Houston and Texas, despite ongoing industry recovery.
Are there any specific products you are seeing as the main drivers for Wellby’s continued growth?
Members who engage with Wellby Financial services can double their savings rate to nearly 4% APY. This initiative has been highly successful in rewarding highly engaged members. We also launched a high-yield checking account last year that offers up to 4.50% APY interest, along with credit monitoring, cellphone insurance, and other benefits — with no fees. Lending remains challenging due to economic conditions, but our homebuyer and home equity programs have seen strong performance.
How do you assess the labor pool, and are there any initiatives in place to further develop the workforce?
The labor market has stabilized after the post-pandemic turnover surge. The Federal Reserve noted the job openings-to-seekers ratio has moved from 2:1 in 2022 to 1:1 today, indicating a balanced labor market. As part of addressing this issue, Wellby Financial’s internship program with the University of Houston-Clear Lake has proven highly successful, attracting applicants from across the state. Many interns receive full-time offers if their career paths align.
We also spearheaded a new internal initiative called the Wellby Academy, which allows employees to customize their learning and development paths by focusing on leadership, business skills, and industry expertise. Excitement and engagement from employees are strong. Houston’s strong talent pool gives Wellby a competitive edge.
How are you leveraging technological innovations to improve your clients’ experiences and to create efficiencies for your teams?
AI’s potential is endless for the financial industry. We utilize AI in marketing to help us refine how we approach members with products and services, and we have also implemented AI in our cybersecurity efforts to embolden and strengthen fraud detection and prevention.
Wellby Financial also partners with an AI-driven underwriting firm that provides a better risk assessment than traditional credit scores. For example, a long-time member was recently denied a loan elsewhere due to credit challenges. They turned to Wellby Financial, where our AI-driven underwriting model allowed us to approve the loan. The funds provided meaningful financial support, enabling a life-changing adoption opportunity. This is just one example of how technology empowers us to make a real difference in people’s lives.
Can you share a few details about how Wellby is involved in the local community?
We have been selected as the official credit union of the Houston Rockets, which has helped to expand our brand visibility and reach Houstonians across the city. In terms of grassroots community development, we conducted 215-plus financial education workshops last year, all of which helped individuals build financial literacy. We also helped fund and build a home through Habitat for Humanity, with over 100 employees contributing volunteer hours for this cause. We have also received recognition from local nonprofits for supporting domestic violence survivors and helping them rebuild financially. We continue to invest in and support the Space Community and STEM initiatives as we remain strongly connected to our legacy. Wellby has a strong commitment to grassroots community initiatives, including highway clean-ups, chamber events and nonprofit partnerships.
What is your long-term vision for Wellby Financial?
Wellby is in a position of financial strength, with excellent capital and liquidity. Headwinds remain, such as yield curve challenges and regulatory shifts, but the focus is on stability, soundness, and strategic growth. While some growth opportunities may be postponed in the interest of stability, Wellby sees partnership and consolidation opportunities in the near future. Our long-term goals remain unchanged. We will continue helping members achieve homeownership, encouraging financial wellness and savings, and helping to be a trusted community partner. Wellby is well-positioned for leadership in the Houston financial sector and remains committed to its mission of helping people prosper.
