Feature image above: Michelle Beasley, left, executive vice president, and Kristy Vest, CEO, are two of the leaders at Telcoe Federal Credit Union.
In 1950, the year Telcoe Federal Credit Union began, depositing a paycheck or taking out a loan was a much slower, more manual process than it is today. Kristy Vest, CEO, said she has heard stories about people lining up on payday to deposit their checks while, in another line, people waited for loans — the money for which came from deposits the tellers had been handed moments earlier.
“Things were done a little differently,” Vest said. “We’ve heard a lot of stories like that, even from some of our board members who’ve been members of the credit union here for as much as 50-plus years. We’ve heard stories about the service that they provided whenever they first opened, and it’s nice to know that we are still a place where they can come and do business with us.”
Headquartered in Little Rock, Telcoe Federal Credit Union is a member-owned financial cooperative that first started as a benefit for what is now AT&T and grew to serve employers across the state. The financial institution offers products ranging from checking and savings accounts, certificates of deposit, credit cards and retirement accounts to personal, auto, home and home equity loans.
“Our mission has always been focused on helping people improve their financial well-being by providing exceptional products, exceptional services and that personal touch when it comes to service,” Vest said. “We also want to make sure that we have a trusted partnership with our members and that they trust us to provide the best solutions for whatever they are in need of. Because we are owned by our members as opposed to being owned by shareholders, every decision that we make, we are making with the well-being of our members in mind.”
She added that the credit union seeks to serve members from birth through retirement.
“We start offering accounts as soon as a member has a child,” she said. “We encourage them to open accounts so that they can save for their child’s future. Later, when they start to drive, they suddenly need access to a checking account. They need to have funds so that they can do the things that teenagers do. We strive to offer products covering every stage of life.”
Education is another way in which the credit union serves its members. Michele Beasley, executive vice president, shared a story about a member who was seeking a car loan. The member knew how much of a monthly payment would be within budget but not the total cost of the car. Beasley said the loan department was able to help the member determine a ballpark price range, find the value of a car online and even negotiate the deal.
“I’ve had a couple people who have asked us to get in the car and go with them to the dealership, and I say, ‘Well, we can’t do that, but if you’ll go test drive and leave the dealership and call me, I can actually help you make a cash offer where you get not only the great rate with us but, also, the lower price,” she said. “I love it when we’re able to save somebody $3,000 just by doing that over-the-phone negotiation.”
Christmas and vacation loans represent another way to save members money while teaching them about finance. When members request a Christmas loan, for example, staff may also steer them toward a Christmas Club savings account to help them avoid taking a loan the following year. Offering 5 percent annual percentage yield on balances up to $1,000, members have saved more than $1 million so far this year in their Christmas Club accounts, Beasley said.
The credit union prioritizes modernization while maintaining a personal connection that inspires trust among members. Photo by Jane Colclasure
The loans themselves provide an avenue for financial success, as well. Instead of using a credit card to finance Christmas or a vacation members can access an installment loan for one year at a rate less than 15 percent that can be paid through payroll deductions.
“That way, you’re not paying for that cruise four years from now,” Beasley said.
The credit union offers specials in January, when it hosts its annual membership meeting, and celebrates National Credit Union Youth Month in April by offering specials on youth accounts and awarding scholarships to graduating seniors.
Beasley added that she is proud of Telcoe’s exceptional CD rates and expertise when it comes to offering bridge loans for people planning to build or purchase homes who have not yet sold their current homes. The credit union also offers home improvement loans up to $25,000 that allow homeowners to borrow without any equity and avoid liens on their properties.
Besides the person-to-person education whenever someone is interested in a product or service, Telcoe provides workplace financial education for select employer groups. Beasley said presentation topics can range from purchasing a first home to planning for retirement.
“That’s a great benefit that comes about through offering this to your employees,” she said. “Employees who have financial worries don’t tend to be as productive as ones who actually have been able to take control of their finances. We want to give them that financial education so that they can actually move forward. They tend to be happier doing their jobs when they’re not worried about, ‘I’ve got these bills to pay. How am I going to make that happen?’”
The credit union also partners with the Academies of Central Arkansas to provide financial education to students. Telcoe has a school branch at Maumelle High School where students can work, and the credit union also offers a study-and-save program with financial rewards for earning good grades, in addition to visiting classrooms to talk with students about money.
“The things we talk about in terms of financial education have changed significantly in the last 20 or so years,” Beasley said, adding that today’s discussions might include information about how convenience fees from delivery services can sink a budget or why it is a good idea to have direct deposits sent to a local financial institution rather than some of today’s popular money apps.
The proliferation of such technologies has impacted not just Telcoe’s membership but the institution itself as it competes against online lenders and peer-to-peer money transfer platforms.
“Whenever Telcoe began 75 years ago, you were competing against whoever was 5, 10 blocks down the street,” Vest said. “Now we are competing with everybody. It doesn’t matter where they’re at — everybody.”
With an eye for recruiting younger members, Telcoe has also utilized technology to ensure its services are easy to access digitally. Vest said a focus this year has been investing in new methods of money movement to smoothly transfer funds between Telcoe and other institutions.
Staff member Faith Blanchard is just one of the helpful staff at the company’s Little Rock headquarters. Photo by Jane Colclasure
“The generations have to be bridged among those who want to come in, sit down, talk to somebody about their account. Then you have those that want to call somebody about their account and those that want to email. You have people that want to text or to chat inside of an app,” Vest said. “We have to make sure that we invest in all those technologies to provide services that meet the needs of the younger generation while still providing that very personal, in-person touch for those that prefer that type of service.”
Fraud protection has also been a priority this year, Vest said, adding that the credit union uses advanced technology to help detect fraud. Just as important, however, is educating members about the latest scams and ensuring staff are trained to recognize bad actors. Vest shared a story about someone who called in wanting to complete a transaction and even had all the identifying information needed to access the account.
“Somehow, [staff] noticed it wasn’t the member’s voice,” Vest said. “Our employees just kind of know the membership, so they started asking them certain personal questions that the person on the phone couldn’t answer. Through that conversation, they were able to find out that wasn’t our member, and so we didn’t release any funds to them.”
Those and similar stories have earned Telcoe a five-star rating from Bauer Financial for the past 35 consecutive years, not to mention numerous honors in Arkansas Money & Politics’ and AY About You’s annual “Best Of” competitions.
“I had a member yesterday describe their experience with us, and I think if we continue doing what this member feels we did for them for the next 75 years, we’d be hitting it out of the park,” Beasley said. “He said no matter what position you’re in, where you work or what your income level is, they felt that we treat everybody the same, that we provide outstanding service, and we do it with courtesy, dignity and respect. Those were his words, and I love to hear that.’”
Moving forward, the company plans to continue to focus on growth, specifically among younger generations, as it expands its digital capabilities, enhances member service, grows business banking relationships, invests in employee development, maintains a strong financial performance and expands financial education for members, Vest said.
“After more than 75 years, our mission remains remarkably simple: helping people achieve financial success,” she added. “Technology will continue to evolve, but our commitment to serving members with integrity, compassion and personalized service will never change. We’re honored by the trust our members place in us, and we’re excited about the opportunities ahead.”
SEE THE FEATURE BELOW AND IN OUR SEPTEMBER 2026 ISSUE OF ARKANSAS MONEY & POLITICS
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