Independent Banker - October 2021 - 21

Creating a level playing field for military banks
" Community banks
... get to know their
military customers in
far greater detail than
the larger banks. "
-STEVEN LEPPER,
ASSOCIATION OF MILITARY BANKS
OF AMERICA
and Navy 2020 Bank of the Year
awards, respectively.
In January 2021, Armed Forces
Bank launched its Access Loan
program, which offers loans ranging
from $750 to $15,000 to active
duty or retired military borrowers.
Borrowers apply online and can go
from application to cash in their
checking account in as little as four
minutes. " One thing I learned being
married to the military is that you're
never in control of your own time, "
Vickery says. " Being able to access
the application when it's convenient
to customers, even in the middle of
the night, is important. "
The Access Loan program
recently helped a customer who'd
inherited a home from his father.
Because the home was still in his
father's name, he couldn't apply
for a home equity line of credit, or
HELOC. He worried that his credit
rating wouldn't allow him to qualify
for an Access Loan. Vickery says
that Armed Forces Bank looks at
more than the FICO score when
underwriting a loan.
" The customer was in shock
when he received his approval
notification, " she says. " He was over
There are nearly 50% fewer banks on military installations than
there were in 2004, according to Amy Roberti, ICBA vice president,
congressional relations.
It's becoming too expensive for community banks to operate on
bases, she says. They have to pay rent on the square footage of the
floor space of the branch as well as the few square feet required
for ATM machines. " Every five years, their lease is renegotiated,
and every five years, the rent goes up, " says Steven Lepper,
president and CEO of the Association of Military Banks of America.
That's an expense that credit unions don't face. " The credit unions
that operate side by side on bases don't have to pay a dime for any
floor [or ATM] space, " Lepper says. " It's an uneven playing field. "
The result is today there are as many bases with only a credit
union as there are bases with both a credit union and a bank.
Chevis Swetman, chairman and CEO of The Peoples Bank on
Keesler Air Force Bank in Biloxi, Miss., says it may face a difficult
decision about its branch in the next few years. " It's hard to
compete, " he says. " We just want to be treated the same as the
credit unions. "
In the end, it's the military customer who suffers. " We have
always advocated for both credit unions and banks to operate,
because it gives military members a choice, " Lepper says. " If there
is competition for customers, that's good for the community they
serve. What we have now is a monopoly on about half of our bases. "
Take action
ICBA is waking up members of Congress to the misconduct of
credit unions, chiefly their tax exemption. To follow this campaign's
progress, go to icba.org/wakeup
the moon about not only his loan
approval but also how quick and easy
the process was for him. Application
to funding was less than 15 minutes. "
Equipped with financial tools
Military personnel are often required
to get financial education when they
are promoted or arrive at a new base.
" The Department of Defense has
realized over the years that equipping
their members with the tools they
need to be financially ready enhances
their overall readiness, " Lepper says.
Banks on military bases are often
asked to participate in newcomer
briefings and other programs, which
provide basic classes in checking
accounts, credit and homebuying.
Chevis Swetman, chairman and
CEO of $767 million-asset The
Peoples Bank, which has a branch on
Keesler Air Force Base in Biloxi, Miss.,
sees financial education programs as
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Independent Banker - October 2021

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