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UW-Madison Partners with UW Credit Union to Provide Financial Services on Campus

The Board of Regents approved an agreement that partners UW-Madison with UW Credit Union in providing banking services to the campus community. These services include a full-service branch at the new south campus Union when it opens, 18 surcharge-free campus ATMs and enhanced ID Wiscard service that allows PIN-based debit transactions.

Following a competitive bidding process, UW Credit Union was awarded the contract that provides annual compensation to the University. In addition to the monthly rent for ATM placements, UW-Madison will receive a $1,750,000 payment supporting the new south campus Union as well as $286,000 per year over the initial seven-year term to support the debit card option. The credit union has also agreed to pay monthly rent related to the branch office, which will open in spring 2011 in the new union building located where Union South used to be.

"This is a win-win for all involved," said Wisconsin Union Director Mark Guthier. "Students get what they said they want: easy access to multiple fee-free ATMs, a bank on campus and the debit card function at a substantial savings over what they could achieve on their own in the marketplace, while simultaneously generating significant revenues for the campus."

UW Credit Union is looking forward to expanding the 77-year-long partnership they have shared with UW-Madison.

"More than 50% of incoming UW-Madison students choose us as their financial partner because we are committed to doing the right thing and looking out for their best interest," said UW Credit Union President and CEO Paul Kundert. "As a not-for-profit cooperative, we reinvested our student profits into student relations and followed their overwhelming support of the new south campus Union.

Through this partnership the credit union gets access to the student, faculty and staff market but Guthier noted that people are free to choose any financial institution they want to do business with. Current UW Credit Union members can also take advantage of this new program by enabling their Wiscard as a debit card.

"The committee of students, faculty and staff that reviewed the proposals deemed it essential that the University not link enrollment in the program to a financial incentive, that there should be a little distance between the university and the banking institution," Guthier added. "Also there are no credit card provisions granted as part of this ID-debit card program."

A majority of Big Ten institutions and many of the UW System schools already offer debit card functionality through the campus ID program. A spring 2008 survey of 9,000 UW-Madison students indicated that there is substantial interest in an optional debit card program offered via the UW ID (Wiscard) program for off-campus purchases as well. While surveys show that students value these options, university officials were interested in an agreement that did not penalize students who choose another provider or which put the university in the banking business by being compensated based on marketing success or the amount of student debit card purchases.

"Our corporate values are aligned with UW-Madison's approach that it is not in the students' best interest for the University to acquire financial interest in the personal consumer behavior of its student population," said Kundert. "We have a long history of providing competitively priced products and services and as our market share continues to grow, the return will continue to be reinvested in the best interest of our members - without increasing fees, lowering deposit rates or increasing loan rates."

"Some of the funds will be used to help fund student programs and services based on input from students directly," added Guthier. He indicated that this will add to the Union's ongoing partnership with the credit union which has helped to fund summer programming on the Memorial Union Terrace the past two years and will continue to do so for the next several years. "This new agreement is an opportunity to expand this mutually beneficial partnership."

The agreement officially begins on September 1, 2009, offering UW-Madison students, faculty and staff the following:

• The simplicity and convenience of a single, multi-purpose card;


• Increased security by encouraging a cashless environment;


• A checking account option that features no minimum balance, no monthly or online banking account fees, free checks and free ATM withdrawals;


• Student-friendly seminars aimed at encouraging responsible financial practices, and;


• A convenient on-campus location for conducting banking business.

UW Credit Union will provide an interim office at Memorial Union until the south campus union is complete.

For more information on the Wiscard program, contact Jim Wysocky, 608 265-8789, jwysocky@wisc.edu; for the credit union, contact Lisa Girdharry, 232-9000, ext. 2274, LGirdharry@uwcu.org