Chartway Credit Union, based in Virginia Beach, has launched Chartway Ventures, a wholly-owned credit union service organization, in December. The idea for Chartway Ventures was born from the desire to partner with fintechs and invest in innovative ventures that can generate returns for its members. The venture is overseen by a five-person board of industry experts, including Brian Schools, the president and CEO of Chartway Credit Union. The credit union is allowed by federal regulation to put 1% of its assets into the service organization, which would be $27 million for the $2.7 billion asset credit union, although the company has no immediate plans to invest that amount. The venture will adopt a measured growth strategy, making a few investments each year based on the innovative approach, scalability, compatibility with Chartway’s operations and potential for strong economic returns for credit union members.
Introduction
From Daily Press by Sandra J. Pennecke
Chartway Ventures Launch
VIRGINIA BEACH — Virginia Beach-based Chartway Credit Union launched a way to invest in ventures that can drive innovation and returns for its members.
Chartway Ventures, a wholly-owned credit union service organization, launched in December.
Reason for Chartway Ventures
Chartway Ventures President Rob Keatts said the idea came to fruition because leaders see the value in partnering with other fintechs, or financial technology firms.
After a number of conversations, some fintechs expressed a need for funding and investment, Keatts said.
Investment Strategy
“So, we stepped back, looked at it and saw the opportunity,” he said. “It just kind of felt like a natural fit for what we were doing and the conversations we were already having.”
Keatts, who is also executive vice president chief strategy and information officer for Chartway Credit Union, said they see it as a benefit to the credit union long-term, which is a benefit to their members.
“That’s really important to us — making sure that all of the investments we make really do allow us to come back, serve our members and serve the communities that we’re in,” he said.
Keatts said they are actively looking for their first investment but are taking a very measured growth strategy. Investments will be selected based on their innovative approach, scalability, compatibility with Chartway’s operations and potential for strong economic returns for credit union members.
By federal regulation, the credit union is allowed to put 1% of its assets into the service organization, he said.
“We’re roughly a $2.7 billion asset credit union, so that would be $27 million,” he said. “We have no plans on doing $27 million worth of investments anytime soon. This will be a very measured thing over time with probably a couple of investments a year.”
Each investment will vary depending on the company’s needs and the organization’s confidence in their ability to move forward, Keatts said.
Management and Future Outlook
Chartway Ventures is managed by a five-person board of industry experts, including Brian Schools, president and CEO, Chartway Credit Union, and Steve Warnecke, Chartway board member and chair of the ventures board.
Schools said in a news release that Chartway is excited to see the effect the venture makes on the credit union community.
“Developing our own CUSO will allow us to drive innovation, foster collaboration, generate revenue and reduce costs, all of which help better serve our members,” Schools said.
Sandra J. Pennecke, 757-652-5836, sandra.pennecke@insidebiz.com
Question & Answer
What is Chartway Ventures?
Chartway Ventures is a wholly-owned credit union service organization launched by Chartway Credit Union in Virginia Beach in December. It aims to invest in innovative ventures that can generate returns for its members.
What was the reason behind launching Chartway Ventures?
The idea for Chartway Ventures came from the desire to partner with fintechs and invest in innovative ventures that can drive innovation and returns for credit union members. Some fintechs expressed a need for funding and investment, leading to the creation of Chartway Ventures.
What is the investment strategy of Chartway Ventures?
Chartway Ventures plans to adopt a measured growth strategy, making a few investments each year. Investments will be selected based on their innovative approach, scalability, compatibility with Chartway’s operations, and potential for strong economic returns for credit union members. The credit union is allowed to put 1% of its assets into the service organization, although they have no immediate plans to invest that amount.
Who oversees Chartway Ventures?
Chartway Ventures is managed by a five-person board of industry experts, including Brian Schools, the president and CEO of Chartway Credit Union, and Steve Warnecke, a Chartway board member and chair of the ventures board.
