In a time when speed matters and trust is everything, the right partnership can be the difference between steady growth and a breakout year.
In this episode of Grow Your Credit Union, host Joshua Barclay is joined by co-host Becky Reed and guest Mike Valentine, President and CEO of Baxter Credit Union, to talk about the power of partnerships, why branch expansion still matters, and how vendors can break through the noise to connect with credit union leaders.
Want to Scale Fast? Start with the Right Partner
Mike Valentine, President and CEO of Baxter Credit Union, shares how years of relationship-building with executives at companies like Target and UnitedHealth Group led to some of BCU’s most valuable corporate partnerships. “Before we ever pitched them, we already had someone in the C-suite who knew us. And knew what a credit union could do,” he says. These partnerships aren’t just about member growth, they’re rooted in mutual accountability, shared goals, and quarterly check-ins with company leadership.
Becky Reed expands on the idea, highlighting the importance of values alignment. “What we did is we looked at our vendor relationships and made sure that there was commonality there from an integrity and a culture perspective,” she says. Whether it’s a corporate partner or a service provider, the relationships that last and drive real growth are the ones grounded in trust and shared purpose.
Branches Aren’t Dead. They’re Evolving
While banks continue to shutter physical locations, BCU is opening them. Mike outlines how BCU’s branch strategy has adapted post-COVID, including seven locations in Puerto Rico and new offices in Chicago. He calls them “relationship centers” rather than transaction hubs. Becky backs the move, adding that younger members may never step foot in a branch—but knowing it exists builds trust. “Branches matter even if they’re not used,” she says. Both leaders agree that community presence is a key differentiator for credit unions in the digital age.
Selling to Credit Unions? Relationships Matter More Than Demos
When it comes to vendors, Mike says nothing beats a referral from someone he trusts. “If Becky tells me about a fintech doing something cool, I’m listening,” he says. Becky, who’s been on both sides of the vendor-client dynamic, explains how consistent, respectful relationship-building pays off, even when a credit union isn’t in the market. “I may not need what you’re selling now,” she says, “but if you show up year after year, you’ll be top of mind when I do.” Cold calls? Both agree they rarely work unless the timing is perfect and the message is laser-targeted.
Top Takeaways from This Episode
- Mike Valentine and Becky Reed agree: The strongest corporate partnerships are rooted in relationships and accountability; not sales pitches.
- BCU’s branch strategy proves physical presence still builds trust, and Becky emphasizes that branches help credit unions stand out in financial deserts.
- Vendors trying to reach decision-makers should prioritize warm intros and long-term trust over cold outreach.
- The original seg-based credit union model is alive and well and may be more relevant than ever.
Full Transcript
Joshua Barclay: Hello, credit union community. Here are your three topics for today’s show. First up, the right partnerships can be a total game changer, so how are some credit unions using corporate partnerships to scale faster than ever? Next up, while banks are shutting down branches, credit unions are doing the opposite. Why is branch expansion on the rise, and what does it mean for the future of CU growth? And finally, vendors, listen up. Selling to credit unions isn’t easy, so how do you actually get a decision maker’s attention? Today, we’re pulling back the curtain on what really works.
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Joshua Barclay: Welcome to Grow Your Credit Union, the podcast where credit union leaders gather, learn, and grow. I am your host, Joshua Barclay. And with me is the DeFi queen, the talk of Texas, the dandelion of Dallas. I’m talking about Becky Reed. Becky, how are you doing?
Becky Reed: Howdy, yawl.
Joshua Barclay: Becky, I got some really good news. My cost of living just doubled. Can you guess what happened to my life?
Becky Reed: Yes. I can guess. [Laughs]
Joshua Barclay: I bought a house. That’s the only time in my life that I can tell someone my cost of living doubled, and they go, “Oh, congratulations, young man. Congratulations.” And I’m like, “Uh…” So, I’m liking, Becky. I have to tell you. But I’m talking to kind of a person from a different world. I don’t want to know what your interest rate is.
Becky Reed: [Laughs]
Joshua Barclay: I don’t know if you should congratulate me or tell me, “I’m sorry,” about the purchase. But I will say this – I love the added space. I love having a backyard. And you know what weirdly enough I really enjoy is taking out the garbage at night and under the stars. It’s terrific. It makes me forget that my cost of living has more than doubled in the last month. You know?
Becky Reed: [Laughs] So, taking the garbage out. Taking the garbage out makes you happy that your cost of living…
Joshua Barclay: [Laughs]
Becky Reed: …went up.
Joshua Barclay: [Laughs] So, anyway, folks. I’m loving life. Really excited about today’s show. Today we welcome the president and CEO of Baxter Credit Union, Mike Valentine. Mike, welcome to the show.
Mike Valentine: Glad to be here.
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Joshua Barclay: If you’re looking for more growth in your credit union, strategic partnerships are key. Data from ProfileTree suggests that involving a partner increases the likelihood of closing a deal by 53%. What I find interesting here, Mike, is Baxter Credit Union has formed a lot of relationships with major corporations like Target, United Health Group, and HCA Healthcare so you can provide tailored financial services to their employees. So, what I’m wondering, Mike, after leading such an ambitious partnership strategy, what advice would you give credit union leaders looking to pursue partnerships similar to the ones that you have at Baxter Credit Union?
Mike Valentine: It starts where you started, Josh. It’s all about relationships. And where I’ll go with this… Before we even pitch HCA, Baxter, Cardinal, some of the larger companies, United Health Group, we had somebody we knew in the C-suite. Now, how did we know that person in the C-suite? It was from relationships that built over years. And these are probably members of BCU back in the day, maybe the ‘80s, maybe the ‘90s, early 2000s. These executives have gone on, and we’ve stayed connected to them. So, it’s an easier pitch because they know you. They understand what a credit union can do. So, one, you’ve got to find the right partner. You just don’t want any partner. You want a partner that wants to do things for their employees, wants financial well-being for their employees. So, I think that’s one big thing, Josh, is you got to work with somebody that wants this.
And you just can’t be one-sided on that. So, once you get by that then the hard part starts. And then it’s accountability to each other. And what we do… We have quarterly meetings with all of our large segs, as we call them. There’s ten of them. And we sit down, and we go over with leaders, usually the C-suite, of these companies how are their employees doing. 5,000 people joined the credit union this quarter. Here’s what they’re doing. They’re borrowing money. They’re saving money. We don’t get individual, but we give them an idea of what their employees are struggling with. “Hey, we had a whole bunch of IIP loans. People were borrowing their 401K. We were paying off 401K. We were doing student loans. We were doing mortgages. And here’s what that looks like.”
And they really like that exchange of ideas. That you can say, “Here’s where we think we can help.” And then they pitch us… Like Target came to us, and they said, “Our employees are taking way too many 401K loans. What can you do?” So, we came up with a product that we could go after these people to say, “Don’t borrow from your 401K. Borrow from your credit union.” And it’s just a different way to look at it, Josh, but it’s just a mindset. So, relationships. And then it’s you got to make sure you’re measuring what’s happening and you’re reporting to each other what’s going on with the relationship.
Joshua Barclay: Becky, I love what Mike just said. Partnerships are huge. I mean it’s kind of the essence of the credit union movement. And what I like about partnerships is… We’ve talked a lot on this show about mergers and acquisitions. We’ve beaten that drum to death. And it feels like, “Hey, put aside the merger and acquisition thing and look under your nose at the partnership opportunities for growth,” right? So, my question to you, Becky, is how do you think philosophically about partnerships when it comes to growth? And maybe an example of something you’ve done recently or while you were at Lone Star would be pretty cool to bring up as well.
Becky Reed: Absolutely. I think that relationships make the world go round. Not just in business. Certainly not just in finance. But pretty much everywhere. And what’s really cool about what Mike said is that seg relationship is how credit unions started. We moved to a more community-based field of membership back in the early 2000s when the whole field of membership lawsuit came about, and they had to change Federal Credit Union Act. But that core basis of relationships is where credit unions started. One of the things that we did Lone Star Credit Union… And we were a community based financial institution. What we did is we looked at our vendor relationships and made sure that there was commonality there from an integrity and a culture perspective.
It was really important to us not only to choose our third-party service providers by price or what particular service they offered but also on culture. Now, one of the things that struck me in what Mike just said is financial wellness is a key aspect of employee productivity. And a lot of times the employers have no purview into really what’s happening with their employees’ financial lives. Not having that $600 to have when your tire blows out on the highway or when you need to find emergency childcare. Or you have to make a trip to the emergency room, or you have a tooth that needs to be pulled. Most Americans today don’t have that amount of savings. And they end up missing work, or maybe taking on second jobs, or doing additional things that affects what they’re doing in their day job. And so the data that Mike is sharing with his partners is so valuable to making sure that an employee experience is the best that it can be. So, kudos to you, Mike.
Joshua Barclay: I want to ask one last thing about these partnerships, Mike. Because I know that a corporate partnerships, very, very different in nature. So, talk me through what needs to happen if I’m a credit union leader, and I want to partner with a corporation like a Target or a bigger brand. So, you’re almost kind of the underdog in that relationship or partnership. So, how do you come to the table and talk to someone who is a goliath like a Target, let’s say?
Mike Valentine: You almost have, take this the right way, an angle in. In other words… And ours is always… And Becky said it really… It’s financial wellbeing. It’s not, “Do you want a credit union?” But, “Do you want to help your employees who are struggling?” And to Becky’s point, 70% of Americans can’t come up with $1,000 in an emergency, Josh. So, it’s kind of getting their attention that way. But it’s also, I would say, you got some kind of an advocate inside the house. In other words, they may not be…usually you’re in the HR silo, but they’re somewhere in the company that they can chirp at the HR person to say, “Hey, talk to BCU. It sounds like they got a really good offering.” So, a few things have got to come together. And I’ll also say to you, Josh, it’s not something that happens overnight. We worked with United Health Group for two years before we started doing business with them. A lot of… They did an RFP. They did a lot of things like that. So, it doesn’t happen overnight. But I’d say a connection in, find a need. That it just cannot be, “I want to be your credit union,” but, “I want to be your financial wellness partner,” I think has a better ring to it.
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Joshua Barclay: Contrary to the trend of bank branch closures, credit unions have been expanding their physical presence. Since the second quarter of 2019, active credit unions have increased their branch number by seven percent. While many banks are consolidating branches in response to the rise of digital banking, credit unions are investing in expansions to strengthen community ties and provide personalized services. Mike, your branch strategy is pretty interesting because it spans the nation. I mean it includes locations as far reaching as Puerto Rico. Mike, what is your philosophy behind this nationwide strategy that you have going on?
Mike Valentine: So, ours, it’s evolved, I would say to you. So, pre-COVID, I would tell you the companies like United Health Group, Target, Baxter, all the different companies we have, if they had 2,000 people in a location, we had an office. And that office sometimes could have outside access, sometimes it doesn’t. But that office, what we wanted it to be is not a transaction center but a relationship center. In other words, people can come in, and they might get cash from the ATM. But they might go, “Hey, I’m thinking of buying a car. What are your rates?” Or, “I’m thinking of getting a mortgage. I’m thinking of the CD.” So, it’s more of a relationship play, Josh. And what kind of changed to after COVID, to be quite honest, some of the companies aren’t bringing back employees to the office.
So, these offices, we had some… For Geico, for instance, had close to 4,000 people in a facility, and it went to 500. And then went remote. And we had this full functioning office that we had to make some decisions. And what we did is we pivoted, and we said, “These employees now are now going to be outbound callers to be starting work relationships.” They had to change their model from face to face to phone. But in the same token, Josh, the other thing we did is we doubled down in our community, especially here in Chicago. Because we have a lot of people… We’ve been around since 1981. Not quite as long as some credit unions. But we have a lot of people that came and worked for Baxter and no longer work there. But they’re all across the communities here. So, we’ve opened up four offices in the last two years in this area. I 100% believe you can’t go all digital. I think there needs to be a human touch, and it’s proven to that. But I think it is important, to your point, Josh, that people look at that footprint and what makes sense like that for you.
Joshua Barclay: Becky, what’s your take?
Becky Reed: Well, the banking industry is focused on profit. And if they have a branch somewhere that is not profitable then it behooves them to look at what’s the best benefit for their shareholders and close that facility. What that creates are financial deserts. So, places in communities where there is no longer access to any sort of financial institution that is close. And credit unions have really doubled down on filling that gap and making sure that people do have access to fair and equitable financial services in places that the banks have abandoned for whatever reason. I think it also goes back to certainly we are doing more things digitally. However, from a trust perspective… And this has been proven to be true as well, particularly for the younger generations. Millennials and Gen Z. Now, Gen Z is digitally native, meaning they probably didn’t open their account at their financial institution in a branch. But just seeing the name brings it close to home and creates an amount of trust. So, they might not ever go into a branch but just seeing that there is one and knowing that there is a human that they can go talk to if they need is something that’s very important and what the younger generation continues to look for when trying to figure out where to do their financial business.
Joshua Barclay: I love the trust factor, Becky. We’ve talked about it. The branch isn’t going anywhere. There’s a huge trust and relationship essence to the branch. Mike, before I close out this segment though, I have to ask you about the branch in Puerto Rico. Talk to me about that strategy or at least what you had in your head when you plotted that one out.
Mike Valentine: Yeah, that one really came to us, Josh, in that… So, the companies, our seg strategy, brought us to Puerto Rico because some of our companies were in Puerto Rico. So, we now have… I’ll blow you away, Josh. Seven offices in Puerto Rico. And keep in mind, it’s only 130 miles by 80 miles. But it’s hard to get around sometimes in some of these communities. They have a lot of what they call cooperativas. But they don’t have quite the products and services that we can officer. So, we decided… It was about… Well, we started back in the late ‘90s with a few offices. Now, after Hurricane Maria, which was devastating for the island, we opened up an ops center there. So, we employ 100 people in a call center for BCU. What we do for a call center employee here, it’s a lot cheaper for us in Puerto Rico. And we get MBAs and bilingual… Because we have a bilingual obviously field of membership. And it really is a great culture for us to be in. So, we’ve now… I think we’ve got…it was 170 employees in Puerto Rico. And it’s just been a great market for us. And that market is fabulous as far as loans and deposits. They’re just really, really hungry for good service, and that’s what we tried to differentiate ourselves with that. But it’s been a great market for us, Josh.
[Music]
Joshua Barclay: If you’re a sales rep, you’re probably wondering the best way to get the attention of a credit union leader. According to a survey by SEM Rush, 37% of sales representatives say phone calls are the most affective channel for cold outreach, followed by social media and email. Mike, as president and CEO, you’re no strange to sales emails, cold calls, LinkedIn messages, and any other form of harassment you can think of. I’m sure you’ve dealt with it. But let’s give advice to the vendors out there that have a good product and want to do right. So, for someone with a great product that could elevate Baxter Credit Union, Mike, what is the best way for them to cut through the noise and get your attention?
Mike Valentine: Boy, this is a good one, Josh. Because it happens in so many different ways. I go back to where we started earlier today – relationships. And where I go with that is… Like Becky, for instance. When Becky was at Lone Star. Becky and I have a relationship. I run into her, and she goes, “Wow, you need to really talk to this fintech. They’re really doing some really cool things.” Bam. I’m in. Because I’m listening to a friend that I trust. So, that hand off to me, Josh, is critical. I know you can’t always do that. But it’s a way to get the attention of somebody is by going out like that. It’s word of mouth, as we kind of… It’s an old fashioned, between you and I. And the other one, to me, is probably just the old famous… I’ll tell you, in LinkedIn, there’s a lot of things that get your attention, don’t get your attention. But it’s those testimonials and stories. Like if I see a testimonial… I keep picking on Becky. Becky does a testimonial, and I’m like, “I better be thinking about that. That looks really neat.” So, I’m more of a relationship guy, Josh. So, I’m more about how that connects to me and how I can relate to that.
Joshua Barclay: So, references, case studies.
Mike Valentine: Yes.
Joshua Barclay: Proven wins by individuals that you know in the industry. Great advice, Mike. Becky, what else can I do to get your attention or someone’s attention, to be able to say, “Hey, I’ve got a good product. I know everyone is vying for your attention. Hear me out.”
Becky Reed: Well, I’ve been on both sides of the field. Right? So, I’ve been a credit union CEO where I had people who were trying to sell me things. And I’ve been on the CUSO side of the house where I’m trying to sell credit unions things. So, both sides of that football field, so to speak. And, yes, what Mike is saying about relationships, 100%. Absolutely. I will… Just like with anything… I mean if somebody tells you, “Oh my gosh, there’s this drink, and it’s the most amazing thing that I’ve ever had in my life,” you’re going to be like, “I think I want to try that.” Or shampoo for my head or whatever it is. Right? A friend reference, that’s like the golden nugget that everybody wants to achieve is that personal referral. Now, as a credit union CEO, unless I was looking for a particular solution, I would not talk to you. Okay? So, you could call me a thousand times…
Which I hate the phone, by the way. I absolutely hate it. I will not take a cold call unless it’s a product that I’m looking for. So, if somebody just happens to call me out of the blue and I listen to the voicemail, which a lot of times I wouldn’t… But if I did and it was…whatever it was… “Oh, I’m looking for a payment solution. Yep, I’ll give them five minutes of my time just to see what they’re about.” So, if I’m looking for a solution, I am probably going to engage. This also brings up creating that relationship when I’m not looking for a solution. I can tell you that there were relationships that I built as a credit union CEO with third party service providers, partners, vendors, whatever you want to call them when I wasn’t in the market for whatever it was they were selling. But two, three years, they kept the relationship going. They kept calling me. They kept contacting me.
They kept coming to visit. When I was looking for that solution, that’s who I called. And so relationships, again, are so important. Being seen out in the industry… I know everybody is like, “Oh my gosh, I don’t want to have another booth at a conference,” but that makes a difference. Just like when the members see your branch in their community and they keep seeing your name over and over. It’s the same thing with the credit union. I’m going to see you at the four or five conferences I go to every year. That’s going to stick with me. And if I see you year after year, that’s even more important. I know you’re not fly by night. I know that you’re invested in this space. I know that you’re sticking around and you’re successful, obviously, because I’m seeing you year after year. And so those things really do matter.
Joshua Barclay: Becky, really like what you said about maintaining the relationship because it’s really easy to hit someone up when you’re trying to sell. A lot harder to say, “Okay, Becky, I know that you’re not in the market for this, but I am going to maintain a relationship with you and put in effort the next two years so that when you are in market for whatever I’m selling, I’m top of mind, and I’m in your consideration set.” Everyone needs to listen to what Becky just said. Great advice, Becky. Mike, I’m coming back around to you because I’m wondering… You mentioned referrals. You mentioned cast studies, testimonials. But what about a cold call if you’re in market for something? Is there any chance for me to come in that cold, or do you think, “Don’t even bother, man.”
Mike Valentine: I got to tell you. I got to go with my buddy, Becky. My new best friend. I’m not big on cold, cold. If I don’t have some type of connection to this thing, it’s really difficult for me, Josh. But I want to underline and bold Becky’s point about in the moment, selling is one thing, but selling should be all the time. And I might not be looking for it yet, but I’ll remember, “Hey, wow, Mike was really good to me here, here.” I like that point, Becky. Again, it’s about relationships. Right, Josh? You’re building that in, and it’s not a one and done. I think that’s sometimes where I think sales gets mixed up.
[Music]
Joshua Barclay: That brings us to the end of the show. Mike, final thoughts for our guests. Anything that you want to leave our guests with based on our conversation today or anything you want to plug, for that matter.
Mike Valentine: We talked earlier before the podcast here about mergers. There is so much opportunity out there right now, Josh. And I think it’s people pick their lane. I think the other thing for credit unions, be bold. Now is not the time to be a shrinking violet. But stay focused on our mission, which I truly believe is financial well-being for all. If we stay to that north star, things will follow for you. And I’d also tell you two things. The seg model isn’t dead. And I’d also tell you branches aren’t dead. So, please don’t ignore that type of a thing but make sure you’re understanding what’s best for your membership.
Joshua Barclay: If somebody likes what you’re putting down today, they want to talk to you, what is the best way to get in touch with you, Mike?
Mike Valentine: Email. Mike.valentine@bcu.org.
Joshua Barclay: Mike, thank you so much. Becky, final thoughts for today?
Becky Reed: Well, I like what Mike says about getting back to our roots. I think that the industry pivoted and got away from the seg environment for survival reasons, but we really haven’t gone back. And what is really cool for me is working for Bank Social now I get exposed to credit unions globally. So, I want to give you an example of going back to our roots. So, credit unions originally started usually in an HR department or a payroll department. We all have the stories of when credit unions started, in a cigar box. Right? Where somebody deposited their $50, and then the person with the cigar box handed that $50 out to someone else as a loan and wrote that down in a document, a ledger somewhere. Well, these credit unions around the world, we, of course, are very lucky here in the United States with the technology that we have access to. But there was a credit union in Africa I talked to. 300 members. They started about 10 years ago. Everything on spreadsheets. And think about that grassroots environment and how important that credit union is. They’re called SACCOS in Africa. And that community that’s…those 300 people, that’s a game changer for them. So, we can get up in the technology. But at the end of the day, that’s our roots.
Joshua Barclay: Thank you for that, Becky. That’s pretty inspiring. And when you think about the mission of credit unions, you do get inspired. You can’t help but get inspired when you go back to the north star, as Mike pointed out earlier.
Becky Reed: Yep.
Joshua Barclay: Mike, I want to thank you for appearing on the show. Becky, greatest cohost. The dandelion of Dallas as I’m calling you. I want to thank you. If you want to get ahold of Becky Reed, LinkedIn, hit her up. She’ll be more than happy to talk to you. And I want to thank our listeners for continuing to support and listen to another episode of Grow Your Credit Union. Remember, if you like the show, please follow us on your podcast player of choice and share this episode with someone who would benefit from listening. If you want to be a guest or you would like to talk about sponsorship opportunities, head to growyourcreditunion.com to learn more. Thank you for listening, and we will see you next time. Care and bye-bye.
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